Pertamina will proceed with negotiation towards the revitalization of oil refinery facilities in Cilacap, Central Java. Nicke Widyawati, president director of Indonesian oil and gas company, confirmed the meeting with Saudi Aramco management on the sidelines of a coordination meeting in Bontang.
The restoration of the biggest oil refinery facilities in Indonesia would enter the front-end engineering design stage first. Subsequently, six months later, the project will pass into engineering, procurement, and construction. “The tender will expectedly take place in 2019″, says Nicke Widyawati.
It was expected that Saudi Aramco invests US$6 billion in the refinery facilities revitalization. However, the company imposed some extra requirements, such as commendations of the government, tax holidays and the handover of assets to its subsidiary in Indonesia.
Pertamina entered into heads of agreement with Saudi Aramco in November 2015. Together they planned to accomplish the Refinery Development Master Plan project. Thus, the production capacity will expectedly grow up to 400,000 barrels per day after the revitalization. The fuel product will meet Euro V requirements.
In addition to that, the other products comprise basic petrochemicals and Group II Base Oil for lubricants.