The Jakarta Post
State-owned energy holding company Pertamina and Saudi Aramco are looking for an independent consultant to determine the valuation of the Refinery Development Master Plan, a refinery revitalization project in Cilacap, Central Java.
Government officials met with representatives of Saudi Aramco on the sidelines of the G20 Summit in Osaka, Japan, last week. During the meeting, they agreed to extend a joint venture development agreement to October after a previous agreement expired in June.
Pertamina vice president of corporate communications Fajriyah Usman said the two companies had established a joint valuation team.
“There will be a joint team to decide the valuation. This month, we focus on appointing a consultant,” she said on Wednesday as reported by kontan.co.id, adding that the valuation would take into account assets and business prospects.
Fajriyah said the appointment of an independent consultant would involve representatives of both companies to help streamline the valuation process, as Aramco had rejected a valuation made by independent consultant PricewaterhouseCoopers (PWC).
She said Pertamina hoped an agreement between Pertamina and Aramco would be made in October.
Gadjah Mada University economist Fahmy Radhi said the appointment of an independent consultant in a process involving representatives of the two companies was a positive step forward in the project.
“It is a project of mutual benefits. In the long run, Aramco has it certain that it will manufacture its crude [oil] in Cilacap,” he said.
Once it is revitalized through the Refinery Development Master Plan, the Cilacap refinery system could produce 400,000 barrels oil per day (bpd), an increase over the current capacity of 354,000 bpd. The Nelson Complexity Index (NCI), which measures the complexity of an oil refinery, increased the refinery's projected rating to 9.4 from 4. (bbn)