Aramco and Pertamina sign MOU to study feasibility of integrated refining and petrochemical project

Saudi Aramco Asia Co. Ltd. (SAAC), a subsidiary of Saudi Aramco, has signed a memorandum of understanding (MOU) with Indonesia’s Pertamina to evaluate the economic feasibility of building an integrated refining and petrochemical project in Indonesia. The proposed refinery and petrochemicals project in Tuban, East Java, will be designed to process 300,000 barrels per day of crude oil, according to Saudi Aramco’s website. Saudi Aramco will supply much of the crude oil for the planned refinery. “This memorandum of understanding is a significant first step in extending our already strong relationship with Pertamina,” said Dawood M. Dawood, Saudi Aramco”s vice president of marketing, supply and joint venture coordination. “It is also part of our strategy to enhance our global downstream presence.” Following the signing of the MOU, 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. (February 19, 2012)