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JAKARTA: Minister of Industry, MS Hidayat said cooperation PT Pertamina and a Kuwaiti oil company to build a joint oil refinery in Balongan, Indramayu, West Java, began to be realized in 2011.

"It was the signing of a Memorandum of Understanding in Kuwait, then they will do the preparation and feasibility study for six months. Next year will begin physical work, God willing, the first quarter could do physical development," said Minister after opening exhibition of the results of research and technology R & D-Ritech Expo 2010 at Jakarta Convention Center yesterday.

He explained the Kuwait Petroleum Corporation agreed to accelerate the realization of joint projects. At the end of this year, the Kuwaiti side will come to Indonesia to make cooperation agreements as well as building the company patungannya.

According to him, the portion of the ownership shares of the joint venture has not yet been discussed but most likely will be balanced between both parties.

"It's equivalent, 50:50. However, the important Kuwait willing to supply all of its fuel oil production to Pertamina so we have more stock," he said.

Hidayat said the production capacity of oil refinery joint venture company Pertamina and the Kuwaiti company agreed in Balongan 150 thousand barrels. "I ask if he could by 300,000 barrels, but when I went there two months ago agreed upon 150 000 first," he said.

He added that in addition to producing fuel oil, Kuwait's oil company was also willing to engage in activities that will produce refined products used as raw material for petrochemical industry in the country. (Yn)

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