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Indonesian Pertamina and Saudi Aramco extend refinery talks

June 25/2019

MOSCOW (MRC) -- Indonesian state energy company PT Pertamina said it was extending negotiations with Saudi Aramco on the potential joint development of an oil refinery in the country by another three months, reported Reuters.

That comes after talks were previously extended by six months from last December, with Pertamina on Tuesday reiterating that the two sides had been unable to agree a "valuation" for the refinery, without giving further details.

Pertamina and Aramco in 2016 agreed to negotiate to form a joint venture to build and operate the Cilacap refinery in the province of Central Java.

Pertamina spokeswoman Fajriyah Usman said in a statement on Tuesday that the two companies would extend talks by three months and that they had agreed to hire a financial adviser to help finalise a deal.

The Cilacap refinery is one of six major projects that are part of a push to double Pertaminas refining capacity to 2 million barrels per day (bpd).

Pertamina officials said in April that if talk with Aramco failed, the Indonesian company would launch the project without a partner to meet an operational target of 2025.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
Author:Margaret Volkova
Tags:crude and gaz condensate, petrochemistry, Pertamina, Saudi Aramco, Indonesia.
Category:General News
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