Saudi Aramco, an integrated energy and petrochemicals enterprise, and PT Pertamina, Indonesia’s state oil and gas company, has recently signed a Joint Venture Development Agreement (JVDA), marking a key milestone to enable further progress to jointly own, upgrade and operate the Cilacap Refinery in central Java, Indonesia.
Saudi Aramco President and CEO Amin Nasser and Pertamina President-Director and CEO Dwi Soetjipto signed the agreement today at Pertamina’s headquarters in Jakarta. In November 2015, both companies signed a heads of agreement (HoA) and now JVDA will allow for the next development phase of the project to move forward.
“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,” Saudi Aramco president and CEO Nasser said. “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,” he added.
The Cilacap refinery is part of Pertamina’s Refinery Development Master Plan (RDMP) and its capacity is planned for an expansion to 400,000 barrels per day and it is designed to process Arabian crude supplied by Saudi Aramco. It will also produce refined products that meet Euro V specifications, basic petrochemicals, and Group II base oil for lubricants.