Indonesian state-owned oil company Pertamina has sgined a Joint Venture Development Agreement (JVDA) with its Saudi Arabia counterpart Saudi Aramco to jointly own, upgrade and operate the Cilacap Refinery in central Java, Indonesia. Pertamina will own 55% in the upgraded refinery, while Saudi Aramco will own the remaining 45%.
The Cilacap refinery expansion project is estimated at US$4bn to US$5bn and aims to add 25,000 bbl/d to the existing facility to reach 400,000 bbl/d. It will be designed to process Arabian crude supplied by Saudi Aramco and will also improve the quality of oil products (higher complexity level and higher value-added product) by producing refined products meeting Euro V specifications, basic petrochemicals, and Group II base oil for lubricants.
To date, the upgraded refinery configuration has been completed and the process to select technology licensors will start soon with the Basic Engineering Design work targeted for completion in the first quarter of 2017. Signing this agreement paves the way for the upgraded project to move to the Front End Engineering Design (FEED) phase in the second quarter 2017 while project start-up is targeted in 2021