Saudi Arabia's national oil and gas company Saudi Aramco is considering reducing its interest in the proposed Cilacap refinery project in Central Java (Indonesia), from 45% to 30%. Its partner, Indonesia's national oil company Pertamina, would acquire the stake.
The Cilacap refinery expansion project is estimated at US$4bn to US$5bn and aims to add 25,000 bbl/d to the 345,000 bbl/d 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. Completion is expected by the end of 2022.
Over the last few years, Saudi Aramco has been looking for investment opportunities in countries with a rapidly growing oil demand. The company has invested in the Indonesian refining and petrochemical sector, as part of larger expansion plans in Asia (mainly China, India and Vietnam) and in the United States.
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