<article>Indonesia&#8217;s state energy company <a style="color: #000080;" href="http://www.pertamina.com/en/company-profile/" target="_blank">Pertamina</a> is bidding for a majority stake in a refinery in Southeast Asia, as the firm works towards increasing domestic fuel supply and reduce costs.</article>

Indonesia&#8217;s state energy company <a style="color: #000080;" href="http://www.pertamina.com/en/company-profile/" target="_blank">Pertamina</a> is bidding for a majority stake in a refinery in Southeast Asia, as the firm works towards increasing domestic fuel supply and reduce costs.
<a href="http://www.reuters.com/article/2015/05/18/indonesia-pertamina-refineries-idUSL3N0Y93J220150518" target="_blank">Reuters reported,</a> quoting <a class="knx-trackable">Pertamina Refineries</a> director Rachmad Hardadi that Pertamina intends to acquire a 51 per cent stake in that refinery.
The targeted refinery has a processing capacity of 220,000 barrels of crude per day and can process a mix of sweet and sour crude. &#8220;Pertamina would manage it but they would operate it. (The winner) will be announced in two days time,&#8221; Hardadi said, adding that if the deal transpired, Pertamina would have the right to 51 per cent of the refinery&#8217;s output, all of which would be exported to Indonesia.
Under the proposal, Pertamina would begin receiving fuel from the refinery in early 2016.
Crude feedstock would be sourced via Pertamina International Exploration Production (PIEP), with a certain portion of the oil from the Middle East.
Pertamina said on Sunday it planned to open a new office for Pertamina International Exploration-Production in Kuala Lumpur and is also looking at the option of acquiring a refinery in Australia.&#8221;We are calculating whether they will operate (the Australian refinery) but Pertamina manages it, or if we acquire it (and) send Pertamina people there to operate it,&#8221; Hardadi said.
Pertamina acquired six <a class="knx-trackable">Murphy Oil</a> oil and gas blocks in Malaysia in November 2013.
Read here: <a style="color: #ff0000;" title="Murphy Oil sells 30% in Malaysia assets to Pertamina" href="http://www.dealstreetasia.com/stories/murphy-oil-sells-30-malaysia-assets-pertamina-2558/" rel="bookmark">Murphy Oil sells 30% in Malaysia assets to Pertamina</a>
Over the longer term, the company remains focused on developing domestic refinery capacity both through new refinery developments and upgrading existing facilities, Hardadi said.
The firm targets to build three new refineries and upgrade four existing facilities domestically, increasing domestic capacity to 2.3 million barrels of crude per day from 1 million barrels at present, Reuters reported.
By 2024, the company hopes to increase gasoline and diesel production to 1.795 million barrels per day from 537,000 barrels per day at present.

Pertamina is bidding for a majority stake in a refinery in Southeast Asia, as the firm works towards increasing domestic fuel supply and reduce costs.

Indonesia's Pertamina bids for majority stake in SEA refinery

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Indonesia's Pertamina bids for majority stake in SEA refinery

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief