Saudi Aramco and Indonesian state firm Pertamina have concluded a heads of agreement (HOA) for joint ownership, operation and upgrading of the Cilacap refinery in Central Java, Indonesia. The equity split has yet to be agreed. The deal includes the long-term supply of Saudi crudes to the refinery. The agreement was signed by Aramco CEO Amin Nasser and his Pertamina counterpart Dwi Soetjipto.

The compaanies say the upgrade will enable the refinery to process more sour crudes, meet Euro 4 transport fuel specifications and produce basic petrochemicals and lubricant base oils. The project will increase the refinery’s crude distillation capacity from 348,000 b/d to 370,000 b/d. A basic engineering design study is expected to begin soon for completion by 2016. (CONTINUED - 345 WORDS)