The contract has been awarded by PT Pertamina (Persero) and Saudi Aramco. In 2015, the two companies signed a heads of agreement for the refinery upgrade project, which is estimated to cost approximately $4bn to $5bn.
Over the next nine months, Amec Foster will be responsible for the development of the scope for the proposed refinery upgrade project and will also finalize the process configuration and licensors’ packages.
PT Pertamina at refining director Rachmad Hardadi said: "As the Cilacap refinery upgrade will be implemented jointly by Pertamina and Saudi Aramco, this milestone is considered as a significant achievement towards this joint venture formation."
The Cilacap refinery upgrade project is part of Pertamina’s Refinery Development Master Plan (RDMP), which is intended to boost Indonesia’s energy security by expanding and upgrading domestic refineries.
Saudi Aramco international operations vice-president Said Al-Hadrami said: "Saudi Aramco takes a long-term view on such investments and partnerships, where we seek projects that will bring mutual benefits to the partners and countries that will last for many decades.
"We look forward to this venture that enhances Indonesia’s prosperity through greater energy security and strengthens our company’s global energy value chain."
Front end engineering design (FEED) stage for the project is scheduled to be completed by 2018, with engineering procurement and construction (EPC) phase commencing in 2019.
Upon commissioning in 2022, the upgraded refinery will have increased gasoline and diesel output and will produce higher quality base oils. Its capacity is also planned to increase to 370,000 barrels per day.
Image: Officials from Saudi Aramco and PT Pertamina. Photo: courtesy of Saudi Arabian Oil Co.
