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PT Pertamina and Saudi Aramco to upgrade Cilacap Refinery

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Hydrocarbon Engineering,

PT Pertamina (Persero) and Saudi Aramco have awarded the Engineering and Project Management Services Contract to conduct the Basic Engineering Design (BED) study for their joint Cilacap Refinery upgrade project to Amec Foster Wheeler Energy Ltd.

The contract was signed by Mr. Said Al-Hadrami, Vice President of International Operations, Saudi Aramco and Mr. Rachmad Hardadi, Refining Director of PT Pertamina.

“As the Cilacap refinery upgrade will be implemented jointly by Pertamina and Saudi Aramco, this milestone is considered as a significant achievement towards this joint venture formation. It is essential to have a strategic partner with both technical and financial capability to execute such a large project. Saudi Aramco is an ideal partner,” said Rachmad Hardadi.

“Signing this contract for the Cilacap Refinery upgrade project marks a key milestone for Saudi Aramco’s partnership with PT Pertamina. Saudi Aramco takes a long-term view on such investments and partnerships, where we seek projects that will bring mutual benefits to the partners and countries that will last for many decades. We look forward to this venture that enhances Indonesia’s prosperity through greater energy security and strengthens our company’s global energy value chain,” said Said Al-Hadrami.

Amec Foster Wheeler will develop the scope for the proposed upgrade project for the existing refinery located in central Java and will finalise the process configuration and licensors’ packages over the next nine months. The total upgrade project cost for the Cilacap Refinery is estimated to be approximately US$4 to US$5 billion.

Once the upgrade is completed, the capacity of the Cilacap Refinery's will increase to 370 000 bpd. In addition, gasoline and diesel production will be maximized and higher quality base oils will be produced from the refinery, which are targeted to be absorbed domestically. The upgrade will also enhance the petrochemicals capacity of the refinery to exceed more than 600 000 tpy of aromatics and 160 000 tpy of polypropylene.

The companies are planning to complete the frontend engineering design (FEED) stage in 2018, and kick off the EPC phase in 2019. The project upgrade is targeted for completion by the end of 2022. Mr. Hardadi said that this collaboration is the first step towards other similar partnerships between Pertamina and Saudi Aramco with regard to refineries in Dumai (in Sumatra) and Balongan (in Java).

Edited from press release by

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