JAKARTA (TheInsiderStories) – Indonesian Energy Ministry and its Saudi Arabian counterpart have renewed their commitment to speed up the development of Cilacap refinery, which is to be jointly developed by Indonesian state energy company Pertamina and Saudi Aramco, both state energy companies.
The commitment was reaffirmed during the visit of Indonesia’s Deputy Energy & Mineral Resources Minister, Arcandra Tahar, to Saudi Arabia and the United Arab Emirates (UAE) on Oct. 24-26, as well as attending the First Forum on Public Investment Fund 2017 (FII 2017).
Arcandra Tahar was accompanied by the Head of the National Investment Coordinating Board Thomas Lembong. The visit was also seen as a move to realize an earlier investment commitment of the Kingdom of Saudi Arabia to Indonesia, following the visit of King Salman to Indonesia early this year.
During the visit, Arcandra Tahar met with the CEO of the Saudi Fund for Development, H.E. Al Khateeb and Senior Advisor to the Minister of Industry, Energy and Minerals of Saudi Arabia, Nasser A. Alh-Dossary.
“Indonesia will push for the acceleration of the development of RDMP Cilacap Refinery (a cooperative venture between Pertamina and Saudi Aramco),” the Energy Ministry said in a statement on Tuesday (31/10).
The Cilacap refinery development is part of the Refinery Development Master Plan (RDMP) of Pertamina, in its effort to meet national energy demand across the Indonesian archipelago. Apart from Cilacap, the RDMP is to be rolled out to upgrade other refineries, namely, Balikpapan, Riau’s Dumai and West Java’s Balongan.
In December of last year, Pertamina and Saudi Aramco set up a joint venture firm to upgrade the Cilacap refinery, in which Pertamina will hold a 55 per cent stake and Saudi Aramco will hold a 45 per cent stake.
The RDMP project is projected to boost Cilacap output to 400,000 barrels per day (bpd) from a current 348,000 barrel oil per day. The cost to upgrade the Cilacap refinery is projected to reach around US$5billion.
Writing by Roffie Kurniawan, Email: email@example.com