Pertamina and Saudi Aramco intend to finalize a settlement in the first quarter of 2020 as they focus on a new plan for their joint venture, the Indonesian energy agency’s chief executive stated.
A plan to upgrade the Cilacap facility in Central Java has been under discussion since 2016, but the two companies have failed to agree to overprice the venture.
Their newest approach may see them shape a joint venture firm (JV) focused only on a planned facility at the site, chief executive Nicke Widyawati stated, instead of an initial plan that called for a JV that would contain all of the Cilacap plants.
Pertamina would continue to run the existing refinery and pay processing fees to the JV under the new roadmap under dialogue, she said.
The expansion intends to extend Cilacap’s refining capability from 348,000 to 400,000 barrels per day
A Pertamina delegate in April said that if an agreement with Aramco is not struck, the state-run firm is ready to launch the venture by itself to fulfill its 2025 operational target.
Pertamina is also contemplating finding a new associate for its $10 billion refinery challenge in Bontang, East Kalimantan.
Pertamina inked a framework deal last year with Oman’s Overseas Oil and Gas LLC to build a refinery and petrochemical complex in Bontang.
Widyawati did not elaborate further on the reasons for searching for a new associate for the Bontang mission.