Amec Foster Wheeler to undertake BED study for Cilacap Refinery upgrade project

Amec Foster Wheeler Energy Limited has secured an engineering and project management services contract from PT Pertamina (Persero) and Saudi Aramco, to conduct a basic engineering design (BED) study for the joint Cilacap Refinery upgrade project.

This contract was signed by Saudi Aramco vice president of international operations Said Al-Hadrami, and PT Pertamina refining director Rachmad Hardadi, at Pertamina’s head office in Jakarta.

Hardadi said: "As the Cilacap refinery upgrade will be implemented jointly by Pertamina and Saudi Aramco, this milestone is considered as a significant achievement towards this joint venture formation.

"It is essential to have a strategic partner with both technical and financial capability to execute such a large project. Saudi Aramco is an ideal partner."

Al-Hadrami said: "Signing this contract for the Cilacap Refinery upgrade project marks a key milestone for Saudi Aramco’s partnership with PT Pertamina. Saudi Aramco takes a long-term view on such investments and partnerships, where we seek projects that will bring mutual benefits to the partners and countries that will last for many decades.

"We look forward to this venture that enhances Indonesia’s prosperity through greater energy security and strengthens our company’s global energy value chain."

Under the contract, Amec Foster Wheeler will upgrade the existing refinery in central Java and will also finalise the process configuration and licensors’ packages in the next nine months.

This upgrade is part of Pertamina’s refinery development master plan (RDMP), aimed at improving Indonesia’s energy security.

The cost of the overall upgrade project of the Cilacap Refinery is estimated to be approximately within $4-5bn.

With the completion of the upgrade, Cilacap Refinery’s production capacity will increase to 370,000 barrels per day.

Besides, gasoline and diesel production will be maximised and higher-quality base oils will be produced from the refinery for domestic market consumption.

The project upgrade is expected to be completed by the end of 2022.