Indonesian oil company Pertamina has signed a joint-venture agreement with Russian oil group Rosneft for the development of the Tuban refinery project and plans to sign a similar joint-venture agreement with Saudi Arabia's state-owned oil company Saudi Aramco for the development of the Cilacap refinery upgrade project in December 2016.
Pertamina has long been searching for a partner for the US$12bn Tuban project, holding negotiations with Saudi Aramco (Saudi Arabia), Sinopec (China), Kuwait Petroleum International (KPI, Kuwait) and a consortium of Thai companies (PTT and Thai Oil). The new refinery would have a crude processing capacity of 300,000 bbl/d (15 Mt/year) and would be integrated in the TPPI petrochemical refinery acquired by Pertamina in late 2015. The new facility would be commissioned in 2021.
The Cilacap refinery expansion project is estimated at US$4-5bn and aims to add 25,000 bbl/d to the existing facility. It will improve the quality of oil products (higher complexity level and higher value-added product) and will increase the petrochemical production capacity. It is developed by Pertamina, in partnership with Saudi national oil company Saudi Aramco. The engineering, procurement and construction (EPC) is expected to be awarded in 2019, and construction works should last three years; the capacity expansion should be completed in 2022.
Read the interview of Antonio Della Pelle, Enerdata managing director, about Rosfnet/Pertamina deal here
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