SK Corp pairs up with Pertamina to up oil production

In a move that expands SK Corp's reach and boosts Pertamina's production the two companies sign a JV agreement to build a lubricants plant in Indonesia.

By Lara Wozniak

April 24, 2006

South Korea's leading oil refiner, has announced that it has signed a joint venture agreement with Indonesia's state-owned PT Pertamina to build and operate a lubricants plant in Southeast Asia.

Pertamina has been seeking partners to explore and develop its oil and gas fields because the firm needs to increase production to meet domestic demand and does not have the funds to go it alone.

Initially, the two companies plan to jointly invest $175 million, with SK Corp putting in $113.75 million, to build and operate a Group III base oil plant at Dumai Refinery in Indonesia. Group III base oil is developed using an advanced technology which yields higher quality oil that is saturated...

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