July 18, 2008

Indonesia Mulls Cooperate With Kuwaiti Investors to Build Oil Refinery

Indonesia mulls cooperate with Kuwaiti investors to build oil refinery JAKARTA, July 17 (Xinhua) -- Indonesian state oil-and- gas company Pertamina Inc. has considered to join hand with Kuwaiti investors to build an oil refinery to boost the domestic oil supply, President Director of the company Ari H Soemarno said here Thursday.

Indonesia has long looked for new investment to rise domestic oil supply which has been decreased due to the aging of oil wells and lack of investment for new exploration.

The recent soaring global oil price has led Indonesia to raise domestic oil price by an average of 28.7 percent in May as one of efforts to avoid huge subsidies.

Indonesia oil production has started increasing recently with the latest production capacity of more than 1 million barrel a day, which may lead the country to return to a net oil exporter again.

Indonesia has become a net oil importers since 2003.

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