Indonesian state-owned energy giant Pertamina has said it has convinced Saudi Arabian oil giant Saudi Aramco and Russia's Rosneft to conduct joint marketing efforts, which will ease its financial burden, indonesian Jakarta Post reported on August 18, 2017.
In December 2016 Pertamina signed a joint-venture agreement with Saudi Aramco on upgrading the Cilacap refinery in East Java with a total investment of $5.8 billion.
It is estimated that the upgraded facility can produce 400,000 barrels of oil per day (bopd), up from the current production of 348,000 bopd, once it is complete in 2023.
Pertamina, which owns 55 % of both projects, was previously the sole off-taker of output by the Cilacap and Tuban refineries.
This resulted in all debts from these projects being Pertamina's alone, resulting in an increase in its debt burden.
«So, we are renegotiating the Cilacap and Tuban projects, with negotiations reaching 95 % completion. We’re currently just waiting for the legal process before going to the next phase,» said Pertamina finance director Arief Budiman.
Pertamina said both Saudi Aramco and Rosneft had agreed to give financial support for the basic engineering design (BED) and front-end engineering design (FEED) of the 2 refinery projects.
The basic studies and FEED for the Tuban project alone will cost $270 million.