Pertamina, Saudi Aramco jointly upgrade Indonesian refinery

Pertamina, Saudi Aramco to jointly upgrade Indonesian refinery

4:59 AM, 28th November 2015
Pertamina, Saudi Aramco to jointly upgrade Indonesian refinery
Amin Nasser, CEO, Saudi Aramco and Dwi Soetjipto, CEO, Pertamina, after signing the initial agreement for the joint ownership, operation and upgrade of a refinery in Cilicap, Central Java, Indonesia.

JAKARTA, INDONESIA: PT Pertamina said that it has joined hands with state-owned oil company of Saudi Arabia, Saudi Aramco, in a $5.5 billion deal for joint ownership, operation and upgrade of the Cilacap refinery in Central Java as a part of Pertamina’s refinery development master plan (RDMP).

The completion of the refinery upgrade is scheduled for 2021 with the basic engineering design study for the upgrade expected to commence soon and be completed in 2016.

The front-end engineering design will begin in 2017 while the engineering, procurement and construction contract award will be given in 2018.

The proposed Cilacap refinery upgrade will have a capacity expansion from 348,000 bbl/day to 370,000 bbl/day and enable the refinery to process more sour crudes, meet high quality product specifications (Euro IV) and produce basic petrochemicals, including para-xylene, propylene, polypropylene, as well as lubricant base oils.

“Indonesia is a rising global powerhouse in the global economy and it has long deep rooted cultural ties with Saudi Arabia. Its refining sector has enormous potential and with Indonesia’s fast-growing demand for refined products, Saudi Aramco’s role in Cilacap can help fuel this country’s coming era of development and prosperity,” said Amin Nasser, president and CEO, Aramco.

Saudi Aramco was selected by Pertamina as a strategic partner for three of the five refineries- Cilacap and Balongan in Java; and Dumai in Sumatra. Aramco had signed a MoU in December 2014 giving the company exclusivity to conduct a feasibility study jointly with Pertamina for the three refinery expansions and negotiate key business principles.

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