SAAC-Persero ink MOU to evaluate economic feasibility of integrated refining and petrochem project in Tuban

24-Feb-12
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 of building an integrated refining and petrochemical project in Tuban in East Java, in the Republic of Indonesia. 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. The proposed refinery and petrochemicals project will be designed to process 300,000 bpd of crude oil, much of which will be supplied by Saudi Aramco following a long-term contract. The project will produce high-quality refined petroleum and petrochemicals products to meet rising demand in Indonesia and elsewhere in Southeast Asia. The project represents an opportunity for Saudi Aramco to partner with Pertamina, Indonesia’s state oil and gas company, and to capitalize on investment opportunities in Indonesia’s growing downstream industry. Additionally, it extends the close cooperation between Saudi Aramco and Pertamina and increases prospects for industrialization and economic diversification in Indonesia. “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 VP of Marketing, Supply and Joint Venture Coordination. “Saudi Aramco is committed to making win-win investments with partners for projects that yield mutual benefits and contribute to economic growth and development.” “This cooperation in investment with Saudi Aramco is of the highest value for both Pertamina and the Republic of Indonesia to strengthen the fuel and petrochemical supply, to satisfy the huge domestic demand now and for the future,” said M. Afdal Bahaudin, Pertamina’s Director for Investment Planning and Risk Management.
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