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Saudi-Indonesian Refinery Deal Includes Drinking Water for South Sulawesi

RIYADH, Saudi Arabia

Saudi Aramco Asia Company, a subsidiary of Saudi Aramco, and Indonesia’s PT Pertamina (Persero) this week reached an agreement on a joint oil refinery and petrochemical project in Tuban, East Java, according to Indonesian Ambassador to Saudi Arabia Gatot Abdullah Mansyur.

Saudi daily Arab News quoted Mansyur as saying the deal includes $200 million USD for a drinking water project in South Sulawesi.

He said the refinery project would require total capital investment of $30 billion USD. He put total Saudi investment in the project at $8.65 billion USD.

Indonesian Minister of Industry Mohammad Hidayat told another Saudi paper, the Saudi Gazette, that the proposed refinery would process 300,000 barrels per day of crude oil, most of which will be supplied by Saudi Aramco.

South Sulawesi is located on the western side of the Indonesia’s southern Sulawesi peninsula. A 2010 census recorded the province’s population at just over 8 million, making it the most populated province in Sulawesi.

South Sulawesi has a history of issues with unpotable water and the government has recommended that its citizens boil their drinking water.

In 2011, the US Centers for Disease Control and Prevention (CDC) surveyed randomly selected households in the area and reported that among 242 households, 96 percent of source and 51 percent of stored water samples showed the presence of E. coli.