Oman has committed to invest $7 billion to build oil storage facilities, a petrochemical plant and a refinery in Indonesia, an Indonesian minister said on Thursday.

Oman also agreed to supply crude oil to the former OPEC member but details on the amount and price were not disclosed.

Energy Minister Sudirman Said said the refinery would be built in Indonesia’s Riau province, with the oil products being purchased by state-owned Pertamina.

“We are now in the process of issuing the permits,” Said told reporters following a meeting between Oman’s investment minister and Indonesia’s vice president in Jakarta, adding that groundbreaking was expected next year.

The minister said he would announce more details about the agreement next week.

Indonesia’s fuel output has suffered from a lack of investment in its refining sector since the construction of its last refinery was completed in 1994.

Oil and gas company Pertamina has 1 million b/d in refining capacity, which it plans to raise to 2.3 million b/d through upgrades and additional plants.

Source: Reuters