Indonesian minister due in Iran for oil deal
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Indonesia's Energy Minister Sudirman Said (L) and Iranian Minister of Petroleum Bijan Zangeneh (R) talk to reporters in Tehran, Oct. 15, 2015. ©Shana
Iranian Minister of Oil Bijan Zangeneh will meet his Indonesian counterpart in Tehran on Monday to discuss fresh energy cooperation, the Shana news agency says.
According to Press TV, Indonesia's state energy company Pertamina said on Friday that Indonesia's Energy Minister Sudirman Said is expected to sign an initial deal with Iran for the purchase of crude oil and liquefied petroleum gas (LPG).
Said has said Indonesia is interested in a long-term oil supply deal with Iran to meet its rising demand for crude as the country is expanding its refineries.
Indonesia is building four refineries, each with capacities ranging between 300,000 barrels per day (bpd) and 350,000 bpd, to cut its dependency on oil product imports.
The two countries once considered building a refinery in Indonesia to process 300,000 bpd of Iranian heavy crude oil but that plan has apparently been put on hold.
Indonesia has recently rejoined the Organization of the Petroleum Exporting Countries, with Said expected to attend the OPEC meeting in Vienna on June 2.
Indonesia currently imports 800,000 to 900,000 barrels per day of crude oil but its officials have said there are higher potentials to go beyond this level.
ME
