Decision likely to be taken in the next 15-20 days

Richa Mishra

Plans ahead


"Preliminary viability report is ready. We are now awaiting final report." An internal team of the company has undertaken the project viability study.

New Delhi, Nov. 10

Indian Oil Corporation, which is looking at countries such as Yemen, Egypt and Indonesia for exploration & production (E&P) and petrochemicals projects, is yet to decide on acquiring stake in Indonesia's PT Tuban Petrochemicals Industries.

A senior company official said, "We will be firming up a decision in the next 15-20 days and accordingly inform the Indonesian petrochemical company Tuban Petro about it."

He told

Business Line

that the "preliminary viability report is ready. We are now awaiting final report."

An internal team of the company has undertaken the project viability study, he added.

Asked whether IndianOil would be approaching its Board for mandatory approvals, sources said, "If the company decides to go ahead with participation, then the Board would be approached."

Tuban petchem plant

Tuban Petro owns a $3-billion petrochemical complex in that country. The Government of Indonesia owns about 70 per cent stake in Tuban Petro.

The other shareholders of the Tuban complex are Pertamina, Itochu Corporation, Tuban Petrochemicals Pte Ltd, and Sojitz Corporation (formerly Nissho Iwai Corporation).

The Tuban petrochemical plant has a combined capacity of 3.6 million tonnes per annum (TPA) of petrochemicals products 1 million TPA of aromatics (500,000 tonnes paraxylene, 200,000 tonnes benzene, and 150,000 tonnes toluene), 1 million TPA of naphtha, and 1.6 million TPA of kerosene and diesel.

As regards IndianOil's understanding with Indonesian oil and gas company PT Medco Energi International Tbk, for jointly acquiring exploration and production (E&P) assets in India, Indonesia and third countries, he said Medco was planning to set up a greenfield refinery project in Indonesia and the state-owned public sector undertaking was also evaluating the opportunity.

(This article was published in the Business Line print edition dated November 11, 2006)
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