Saudi Aramco Signs Joint Venture Agreement Cilacap Refinery Expansion Project

Source: www.gulfoilandgas.com 12/22/2016, Location: Asia

PT Pertamina (Persero) and Saudi Aramco signed a Joint Venture Development Agreement (JVDA), as the initial milestone for both parties in the development and operation of the Refinery Unit IV Cilacap, Central Java.

  The agreement was signed by Director of PT Pertamina (Persero) Soetjipto and CEO of Saudi Aramco Amin Nasser in PT Pertamina in Jakarta, (22/12). This partnership is a continuation of a Heads of Agreement (HoA) which teah signed by both parties in November 2015 then. Whereby both parties will undertake a Joint Venture, for the development of future projects.

"This agreement represents a strong commitment from both companies jointly to develop and strengthen its energy infrastructure, especially for the refinery project where the step is in line with the Five Pillars of Strategic Priority Pertamina. Upgrade and expansion of Cilacap refinery will improve the competitiveness of downstream Pertamina through the creation high-value refined products and environmentally friendly, "said Dwi Sutjipto.

"Economic growth targeted by the Indonesian government really outstanding with an ambitious agenda through increased investment in infrastructure and energy sector," said Nasser Amin, CEO of Saudi Aramco. "Through significant investment and competitive supply of raw materials, the agreement Pertamina and Saudi Aramco today has the potential to play a greater role in meeting energy demand continues to increase in one of the country's fastest growth in the world: Indonesia," he added.

Cilacap refinery is one part of Refinery Development Master Plan (RDMP) Pertamina and its capacity will be increased to 400,000 barrels per day and is designed to process crude oil from Saudi provided by Saudi Aramco. It would also generate products that meet Euro V specifications, basic petrochemicals (basic petrochemicals), and Group II base oil for lubricants.

In addition to meeting the increasing demand for fuel, a partnership between Pertamina and Saudi Aramco will increase the competitiveness of factories in Indonesia and contribute to enhancing energy security.

Saudi Aramco and Pertamina have agreed on the ownership structure of Cilacap refinery is upgraded, where the company will have a share of 55% and 45% of Saudi Aramco. Until now, the factory configuration has been completed and the process for selecting the technology licensor will begin soon, with the Basic Engineering Design work is scheduled for completion in the first quarter of 2017. The signing of the agreement today to pave the way to proceed to the Front End Engineering Design (FEED) for the quarter the second in 2017, and startup projects targeted in 2021.


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