300,000bpd complex to source most of its crude from Saudi Arabia, economic feasibility to be determined.

On February 18, Saudi Aramco Asia (SAAC), a subsidiary of Saudi Aramco, and PT Pertamina signed a memorandum of understanding for the joint evaluation of the economic feasibility of a plan to build a 300,000bpd integrated refining and petrochemical project in Tuban, east Java, Indonesia.

Should the project proceed, much of the crude oil will be supplied by Saudi Arabia “pursuant to a long-term contract”, according to a release by Saudi Aramco. The complex “will produce high-quality refined petroleum and petrochemicals products to meet rising demand in Indonesia and elsewhere in southeast Asia”.

Now that the MoU has been signed, Pertamina says that “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.”