With the signing of joint venture development agreement (JVDA), the partners will move ahead with the next development phase of the project. The two companies signed heads of agreement (HoA) in November 2015.
Saudi Aramco president and CEO Nasser said: “Indonesia’s growth trajectory is truly remarkable with an ambitious economic agenda underscored by the government’s reforms to increase investments in the infrastructure and energy sectors.
“Through an outlay of significant capital investments and the reliable supply of competitive feedstock, today’s agreement with Pertamina enables Saudi Aramco to potentially play a bigger role in meeting the rising energy needs of one of the world’s fastest developing economies.”
The Cilacap refinery upgrade project, which is part of Pertamina’s Refinery Development Master Plan (RDMP), is intended to improve Indonesia’s energy security.
The project will increase the refinery’s capacity to 400,000 barrels per day while maximizing production of cleaner gasoline and diesel, produce higher quality base oils for the domestic market.
In addition to processing Arabian crude supplied by Saudi Aramco, the upgraded refinery will have aromatics and polypropylene production capacity of more than 600,000 tons and 160,000 tons per year, respectively.
The front end engineering design (FEED) phase of the project is planned in the second quarter 2017 while the project startup is scheduled in 2021.
Pertamina president-director and CEO Dwi Soetjipto said: “Upgrading and expansion of Cilacap Refinery will help Pertamina to enhance its downstream competitiveness with higher valuable and environmental friendly products.”
Saudi Aramco will have 55% stake in the upgraded Cilacap refinery while the remaining interest will be held by Pertamina.
Image: Officials from Saudi Aramco and Pertamina during JVDA signing ceremony. Photo: courtesy of Saudi Arabian Oil Co.
