Saudi Aramco and Indonesia’s Pertamina have started negotiating the upgrade of Pertamina’s Cilacap oil refinery, Zawya reported.
“We are trying to have an agreement this year, that is what they are pushing for,” Erick Thohir, who was appointed as minister by President Joko Widodo in October, said.
The two sides have been struggling to settle on a valuation for the project since last December. According to Thohir, the financial adviser they have hired is not yet ready to produce a valuation.
Thohir said that the government wants Pertamina to cooperate with Aramco on the Cilacap refinery upgrade. However, the company is open to alternative partners in case a deal is not reached with Aramco.
Aramco and Pertamina decided to form a joint venture to upgrade the Cilacap refinery in Central Java province in 2016.