Saudi Aramco Asia Company (SAAC) has entered into a memorandum of understanding (MOU) with PT Pertamina to assess the economic feasibility to build an integrated refining and petrochemical project at Tuban, East Java, Indonesia.
The proposed refinery and petrochemicals project is designed to produce 300,000 barrels per day of crude oil, of which the majority will be supplied by Aramco under a long-term contract.
The proposed plant will also produce refined petroleum and petrochemicals products to meet rising demand in Indonesia and other countries in South-East Asia.
Saudi Aramco's vice president of marketing, supply and joint venture coordination, Dawood M. Dawood, said the MOU - which is part of the company's to improve its global downstream presence - will strengthen its relationship with Pertamina.
Pertamina's director for investment planning and risk management M. Afdal Bahaudin said: "This cooperation in investment with Saudi Aramco is of the highest value for both Pertamina and the Republic of Indonesia in order to strengthen the fuel and petrochemical supply to satisfy the huge domestic demand now and for the future."
Pertamina fully supports our partner to make a successful project that is beneficial to both parties and that further strengthens our cooperation with Saudi Aramco," Bahaudin added.
"The Tuban refinery and petrochemicals project is part of Pertamina's plan to improve Indonesia's energy security."
A project team will also work on the next phase of the project, which will comprise a joint scoping study that will include market research, configuration studies and economic analysis.
SAAC, a subsidiary of Saudi Aramco, has various business and support services for many of the latter's business operations in the Asian region, while PT Pertamina is involved in exploration and production of oil and gas; the refining, manufacturing and marketing of oil products and petrochemicals; and the development of biofuels, geothermal power and other sustainable alternative energy sources.
Image: The proposed plant is designed to produce 300,000 barrels per day of crude oil to meet rising demand in Indonesia and other South-East Asian countries. Photo: Davidelit
