JAKARTA, Sept 5 Asia Pulse - Iran expressed disappointment with the way Indonesia handled a plan to jointly build an oil refinery with a processing capacity of 300,000 barrels per day in Bojonegara, Banten.

 

Mahmoud R. Radboy, head of the economic section at the Iranian embassy referred to the withdrawal of PT Elnusa from the project by handing it over to state-owned oil and gas company PT Pertamina without the knowledge of the Iranians.

PT Elnusa, which is a subsidiary of PT Pertamina, had been previously named by the government to represent it in the project to build the refinery in cooperation with the Iranian government.

"The heads of state of the two countries made a commitment to support the development of the project but after three years there is no progress toward its implementation", Radboy said.

Elnusa President Eteng Abdul Salam said the takeover by Pertamina of Elnusa's role will not affect the plan to carry out the project.

However, Pertamina President Ari Hernanto Soemarno has been quoted as saying implementation of the project would be postponed because of rising costs.

In 2004, the project was estimated to cost US$2.5 billion but in May 2006, the cost estimate doubled to US$5 billion.