Indian Oil eyes
stake in Indonesia's Tuban Petrochemical
Indian Oil Corporation (IOC) is eyeing equity
participation in Indonesian petrochemical firm Tuban
Petrochemical Industries, which owns a giant $ 3 bn
petrochemical complex. A detailed proposal will be put up for
approval in the next board meeting of the company, senior IOC
The company already has a memorandum of collaboration with the leading Indonesian oil and gas firm Medco Energi International for jointly acquiring exploration and production assets in India, Indonesia and third countries.
インドネシアでも有数の民間石油会社PT Medco Energy International
創立者は，国民議会における闘争民主党会派（FPDIP）の代表 Arifin Panigoro
MedcoEnergi is proud to be the first Indonesian company operating in the oil and gas exploration and production business listed in the Jakarta Stock Exchange since 1994.
It was back in 1992, when MedcoEnergi entered into the business, through the acquisition of a relatively small oil field in East Kalimantan area, from Tesoro, a US based oil company, producing 5,000 barrels of oil per day, which subsequently yielded significant gas reserves supplied to nearby power and methanol plants.
Currently, MedcoEnergi has transformed into an integrated energy company with business involvement in oil and gas exploration and production, drilling services, methanol production and most recently, power generation.
officials disclosed that Medco is planning to set up a
green field refinery project in Indonesia and IOC has shown
its initial interest to evaluate the opportunity. Around 70 % of
Tuban Petrochemical is owned by the government of Indonesia. The
other shareholders of the Tuban complex are Pertamina, Itochu,
Tuban Petrochemicals (a subsidiary of Thailand's largest
conglomerate Siam Cement), and Sojitz (formerly Nissho Iwai).
"Indonesia imports significant quantitiesof aromatic products like benzene, toluene, xylene and polypropylene. IOC is presently fast expanding its presence in petrochemicals industry and the proposal jives well with IOC's globalisation plan," a senior official said.
The Tuban petrochemical plant has a combined capacity of 3.6 mm tpy of petrochemicals products, comprising 1 mm tpy of aromatics (500,000 ton paraxylene, 200,000 ton benzene, and 150,000 ton toluene), 1 mm tpy of naphtha, and 1.6 mm tpy of kerosene and diesel.
Indonesia is the largest petroleum market in the ASEAN region, currently estimated at 50 mm tpy of petroleum products. To pursue upcoming opportunities in the Indonesian petroleum retail sector, IOC already has in place its board approval for setting up a wholly owned subsidiary in Indonesia.
puts retail plans in Indonesia on hold
Indian Oil Corporation Ltd has put on hold its plans to foray into the petroleum retailing industry of Indonesia.
A senior company official said, "After evaluating the business prospects in that country we have decided to put on hold our plans to foray into Indonesia's retail sector till there is more clarity on de-regulation plans there."
However, the company is likely to continue with its lubricant distribution business in Indonesia, he stated. IndianOil was looking at launching its retail outlets in Indonesia by floating a fully owned subsidiary. If the plans had materialised this would have been IndianOil's third retailing venture abroad. IndianOil entered the Sri Lankan market in 2002 through Lanka IOC Ltd. The Indian petroleum marketing major also has a presence in Mauritius through its subsidiary IndianOil Mauritius Ltd.
Currently, Indonesia ー the leading petroleum market in the ASEAN region ー is estimated to have 50 million tonne per annum of petroleum products. For tapping the opportunities in Indonesian petroleum retailing industry, IndianOil had also taken its board's approval to set up a fully owned subsidiary. Besides auto fuels, the Indonesian venture was to retail lubricants.
As regards foray into E&P（exploration and production ） activity, the company is looking for good opportunities to emerge in Indonesia. The company has been eyeing a stake in the petrochemical company PT Tuban Petrochem (Tuban Petro) but nothing has yet been finalised, sources added.
The Indonesian Government owns 70 per cent stake in the petrochemical company.
The other shareholders in Tuban include big names such as Pertamina, Tuban Petrochemicals Pte Ltd (which is Siam Cement PCL's, largest conglomerate of Thailand, subsidiary), Sojitz Corporation (earlier known as Nissho Iwai Corp), and Itochu Corporation. Aromatic products such as Toulene, Benzene, Poly-propylene and Xylene are imported in significant quantities in Indonesia.
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