IOC interested in stake in Indonesian PT Tuban Petrochemical Industries

09-Nov-06

In line with the globalization plan of the company, Indian Oil Corporation (IOC), has expressed an interest in acquiring stake in PT Tuban Petrochemical Industries (PT TPI), an Indonesian petrochemical company with total assets worth US$3 billion. The Indonesian government currently holds 70% in TPI, and the balance 30% is held by state-owned oil company Pertamina, Itochu Corporation, Tuban Petrochemical Pte Ltd (subsidiary of Thailand`s Siam Cement PCL) and Sojitz Corporation. TPI`s total production capacity is 3.6 million tpa of petrochemicals including 500,000 tons of paraxylene, 200,000 tons of benzene, 150,000 tons of TPA toluene, 1 million tons of naphtha, and 1.6 million tons of kerosene and diesel oil. The detailed proposal for the purchase of PT TPI`s stocks is still under the process of approval from IOCL Board of Directors. The IOC Board has approved the establishment of a representative body or a subsidiary in Indonesia. Indonesia is currently the largest market for the oil industry in the ASEAN region with marketing volume of up to 50 metric tpa, with large imports of aromatic products like benzene, toluene, xylene and polypropylene.