Home - Yahoo! - Help
Singapore - Editorial - AFP - Asia Pulse - Reuters - Countries - Industries
International
Monday May 28, 8:00 AM
Indonesia's Bakrie wins Malaysia pipeline job-source
KUALA LUMPUR, May 26 (Reuters) - Indonesia's PT Bakrie & Brothers Tbk has won a
contract to supply steel pipes for the development of a $7 billion crude oil
pipeline across the northern part of peninsular Malaysia, a source familiar
with the plan said on Saturday.
Bakrie, a diversified company controlled by the family of Indonesian chief
social welfare minister Aburizal Bakrie, is part of a consortium that will
build the 320-km pipeline, providing a link between Middle East producers and
east Asian consumers.
ADVERTISEMENT
The government earlier this month approved the project which includes a new
refinery at its western end and huge storage tanks for use by Asian nations.
Unlisted local firm Trans-Peninsula Petroleum is the project developer while
the other partners are Malaysian engineer Ranhill Bhd , Saudi Arabia's
Al-Banader International Group and Indonesia's PT Tripatra, a unit of
integrated energy group PT Indika Inti Energi, the source said.
Tripatra will manage the project.
Further details will be announced on Monday, the source said.
Trans-Peninsula Petroleum will invest $7 billion over eight years to build the
pipeline, helping ships avoid the busy Malacca Strait, conduit for over a
quarter of the world's seaborne crude.
The first phase, costing $2 billion, could transport two million barrels per
day (bpd), the source said, which would rank it among the largest oil pipelines
in the world.
The source said the equity structure has not been finalised. "It's still
Trans-Peninsula that's holding everything at this stage."
Construction of the pipeline is expected to begin next year, the source said,
adding that project funding plans include tapping local and offshore debt
markets and a possible listing.
Oil tankers currently take Middle East crude through the Malacca Strait and
around Singapore before sailing north to ports in Japan, China, and South
Korea.
The pipeline would stretch from the west coast town of Yan, which the
government has designated a petroleum development zone, to the small fishing
port of Bachok in the east.
Yan is also the site for a $2.2 billion refinery project, one of two planned
for the northwest.
____________________________________________________________________________________Yahoo!
oneSearch: Finally, mobile search
that gives answers, not web links.
http://mobile.yahoo.com/mobileweb/onesearch?refer=1ONXIC
