The Head of Iran’s Petrochemical, Gas, and Oil Exporters’ Union, Hassan Khosrojerdi, announced that Iran will develop a 300,000 b/d refinery in Indonesia worth $8.5b with funds provided by Chinese and European parties, Mehr News Agency reported.

The project will take up to five years and “Iran and Indonesia will enjoy 30% and 20% of the refinery’s share, respectively, while the remaining portion will be owned by China,” added the official.

Khosrojerdi said that “all agreements have been reached and the Indonesian government has even allocated the land required for the project.” He added that  the refinery’s feedstock would be Iran’s heavy crude oil and the only remaining issue before launching the construction phase is inking an oil purchase contract with the National Iranian Oil Company (NIOC).

However, according to Bloomberg, Indonesia is still studying the Iranian proposal, along with bids from other countries.

A feasibility study on the refinery’s economic justification is being conducted, as NIOC has not signed any deals on the project. The Director General of Oil and Gas at Indonesia’s Energy and Mineral Resources Ministry, IGN Wiratmaja Puja said that Indonesia has made no decision on Iran’s proposal because it is still preliminary.