The Jakarta Post
State-owned oil and gas holding company Pertamina president director Nicke Widyawati has said the company will continue its negotiations with the management of Saudi Aramco on the fate of the revitalization of oil refinery facilities in Cilacap, Central Java.
“Next week, we will meet with the management of Saudi Aramco,” Nicke said on the sidelines of a state-owned enterprises (SOEs) coordination meeting in Bontang, East Kalimantan, on Sunday.
She said the revitalization of the largest oil refinery facilities in Indonesia would enter the front-end engineering design (FEED) stage that would take about six months before the project entered the engineering, procurement and construction (EPC) stage.
“The tender is expected to be held next year,” Nicke said as quoted by kompas.com.
Previously, Saudi Aramco pledged to invest US$6 billion in the revitalization of the refinery facilities. However, the company set several requirements for the investment, including incentives from the government, tax holidays and the handover of assets to its subsidiary in Indonesia.
Pertamina and Saudi Aramco signed heads of agreement (HOA) in November 2015 for the Refinery Development Master Plan (RDMP) project. After the revitalization, the production capacity is expected to increase to 400,000 barrels per day with a fuel product that meets Euro V requirements.
The other products include basic petrochemicals and Group II Base Oil for lubricants (bbn)