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Pertamina, Saudi Aramco Agree on Cilacap Refinery Joint Venture

TEMPO.COJakarta - State-owned oil company PT Pertamina (Persero) and Saudi Arabian Oil Company (Saudi Aramco) have finally agree on Cilacap refinery joint venture. The agreement was signed yesterday by Pertamina president director Dwi Soetjipto and Saudi Aramco president director Amin Naseer in Jakarta.

Both had previously expected to sign the agreement on November.

According to Dwi, the signing was suspended as both parties could yet agree on four issues: crude oil supply, control management, asset valuation and lifting.

On crude supply, he explained that both have agreed that Saudi Aramco will get 70 percent of supply. On management control, Pertamina will appoint three members of the board of directors, while Saudi Aramco will appoint two. On lifting, domestic refining will be handled by Pertamina and export may be carried out by both.

Dwi said that cooperation between Pertamina and Saudi Aramco is expected to boost refining capacity. At present, Cilacap refinery’s capacity is 348,000 barrel per day (bpd), which will be stepped up to 400,000 bpd.

Dwi further said that US$5 billion or Rp65 trillion has been invested to develop Cilacap refinery. Pertamina will hold 55% stake and Saudi Aramco will hold 45% stake.

Cilacap refinery development is part of the Refinery Development Master Plan Pertamina (RDMP) to meet national energy demand. Aside from Cilacap, the RDMP is rolled out in the refineries of East Kalimantan’s Balikpapan, Riau’s Dumai and West Java’s Balongan.

VINDRY FLORENTIN