Pertamina and Saudi Aramco to build oil refinery in East Java

Indonesia’s state oil and gas company PT Pertamina and Saudi Aramco have agreed to build a US$9 billion oil refinery in Tuban, East Java. An initial agreement between the two companies will be signed in mid-January 2012. The refinery, which will produce gasoline, diesel fuel and aviation fuel among others, will have a processing capacity of 300,000 barrels of crude oil per day. Saudi Aramco had agreed to supply 250,000 barrels of crude oil daily to the refinery. Construction of the refinery is expected to begin in a year, since negotiations are still on-going. (December 30, 2011)