Pertamina " Saudi Aramco finalize the Agreement for Cilacap Refinery

KATADATA - PT Pertamina (Persero) will soon finalize the program of Refinery Development Masterplan Program (RDMP) or an increase in the capacity (upgrading) Cilacap refinery, Central Java, with Saudi Aramco. The Head of Agreement (HoA) between these two oil and gas giants is hoped to be signed by the end of October.

“Right now we’re still finalizing it,” said Pertamina’s refining director Rahmad Hardadi during the press conference of Pertamina’s performance in the third quarter of 2015, Jakarta, Thursday (22/10). 

He mentioned that Pertamina and Saudi Aramco are done with the discussion of share proportion for the RDMP project Cilacap refinery on last Wednesday (21/10). Pertamina would have 60% to 65% of holdings in the project. “Pertamina’s ownership would be no less than 55%%. The rest belongs to Saudi Aramco,” Rahmad said.

Cilacap refinery is part of the four Pertamina’s refineries that is included into the RDMP program. For the time period of the project, Cilacap and Balikpapan refineries are included in the first phase that would start in 2018 and be finished in 2022; while Balongan and Dumai refineries are included into the second phase, which would be finished in 2025. 

In order to increase the production capacity of Cilacap and Balikpapan refineries, Pertamina’s president director Dwi Soetjipto said that the company is to spend US$ 5 billion for each refinery. “Let’s hope that the project can start soon. We hope that it can be finished in the next five years,” Dwi said. 

If the RDMP project is completed, the production capacity of Cilacap refinery would increase from 260 thousand barrels to become 300 thousand barrels per day. And for Balikpapan refinery, Pertamina is to cooperate with Japanese company, JX Nippon Oil & Energy Corporation. The portion of the shares is Pertamina with 70% and JX Nippon with 30%. 

Pertamina has signed agreements to cooperate with foreign companies to increase the production capacities of Pertamina’s refineries. Saudi Aramco would help with Dumai, Cilacap, and Balongan refineries. JX Nippon would help with Balikpapan refineries. In total, the capacity of Pertamina’s production can increase from 850 thousand barrels to become 1.5 million barrels per day in the next five years.