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http://www.thejakartapost.com/news/2013/05/14/azerbaijan-build-48b-oil-refinery-and-aluminum-plant-ri.html


Azerbaijan to build $4.8b oil refinery and aluminum plant in RI
Veeramalla Anjaiah, The Jakarta Post, Jakarta | Business | Tue, May 14 2013, 
11:47 AM 
A- A A+ 
Paper Edition | Page: 14

Azerbaijan, one of Indonesia’s major suppliers of oil, was planning to build a 
US$4.8 billion oil refinery in Batam and an aluminum plant in Kalimantan to 
cement the increasingly close relations between the South Caucasus nation and 
Southeast Asia’s largest economy, a top Azerbaijani diplomat said.

“Our state oil company, SOCAR, is in negotiations with Indonesia’s OSO Group to 
build a large oil refinery in Batam. There is no final decision yet on the 
project; it is being considered,” Azerbaijani Ambassador to Indonesia Tamerlan 
Karayev told The Jakarta Post on the sidelines celebrations marking the 90th 
anniversary of the birth of Azerbaijan’s foremost national leader, the late 
Heydar Aliyev, on Friday.

Karayev noted that bilateral ties were growing fast. Several high-level visits, 
including Coordinating Economic Minister Hatta Rajasa’s visit in 2012 and a 
recent visit by House of Representatives’ Speaker Marzuki Alie to Azerbaijan 
and his Azerbaijan counterpart, Oqtay Asadov’s, visit to Jakarta, have taken 
place in the last two years. 

“We are currently negotiating 14 bilateral agreements with Indonesia, which 
will be signed during our president’s visit to Indonesia next year,” he added.

President Ilham Aliyev was supposed to visit Indonesia last year but it has 
been postponed until next year. 

Karayev said Baku was very interested in further strengthening the two decades’ 
friendship by investing in several strategic projects. 

“The oil refinery in Batam is one of them. Our Delta Group is also currently 
mulling a plan to build an aluminum plant in Kalimantan. We are also interested 
in building a fertilizer plant in Indonesia,” Karayev said. 

It was the first official confirmation from Azerbaijan that both countries were 
holding talks over the much-needed oil refinery in Indonesia. The project 
details were first unveiled by the OSO Group’s CEO, Mariano Asril, to Reuters 
in October.

He said OSO would build the $4.8 billion refinery, with a planned production 
capacity of 600,000 barrels per day (bpd), in a joint venture with SOCAR. 
Azerbaijan will provide the major funding as well as crude oil for the 
refinery. The project, if it materializes, will be completed in 2017. 

Azerbaijan, an oil-rich nation in South Caucasus, exports around $2 billion 
worth of oil to Indonesia, of which $1.23 billion is exported directly 
(Indonesia’s eighth-largest supplier) and the rest indirectly via Singapore and 
other countries. 

Karayev also explained about Azerbaijan’s first post-independence leader, 
Heydar Aliyev, whom he called the nation’s savior. “He saved the Azerbaijani 
people from a civil war, secured independence and laid the foundations for a 
modern and prosperous Azerbaijan.”


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