Saudi Aramco Asia Company Limited (SAAC), a subsidiary of Saudi Aramco, and PT Pertamina (Persero) signed a Memorandum of Understanding to jointly evaluate the economic feasibility to build an integrated refining and petrochemical project in Tuban in East Java, in the Republic of Indonesia.
The proposed refinery and petrochemicals project will be designed to process 300,000 barrels per day of crude oil, much of which will be supplied by Saudi Aramco pursuant to a long-term contract, and will produce high-quality refined petroleum and petrochemicals products to meet rising demand in Indonesia and elsewhere in south-east Asia.
“This MOU is a significant first step in extending our already strong relationship with Pertamina, and is also part of Saudi Aramco’s strategy to enhance its global downstream presence,” said Dawood M. Dawood, Saudi Aramco’s Vice President of Marketing, Supply and Joint Venture Coordination.
“The Tuban refinery and petrochemicals project is part of Pertamina’s plan to improve Indonesia’s energy security,” said M. Afdal Bahaudin, Pertamina’s Director for Investment Planning and Risk Management
Following the signing of the Memorandum of Understanding, a project team will work on the next phase of the project, which will consist of a joint scoping study that will include market research, configuration studies and economic analysis.
