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Saudi Aramco's Said Hadrami, VP of International Operations signing the agreement with Rachmad Hardadi, Refining Director of PT Pertamina. Image courtesy of Saudi Aramco.

Saudi Aramco and Indonesia’s PT Pertamina said Monday that they have awarded Amec Foster Wheeler Energy Limited a contract for the Cilacap refinery upgrade.

Amec was awarded an engineering and project management services contract to conduct the basic engineering design study for the refinery upgrade.

Amec Foster Wheeler will develop the scope for the proposed upgrade project for the existing refinery that is located in central Java.

Amec will also finalize the process configuration and licensors’ packages over the next nine months.

The upgrade of the Cilacap Refinery is part of Pertamina’s Refinery Development Master Plan that is designed to improve Indonesia’s energy security and calls for the expansion and upgrade of its domestic refineries.

The overall cost for the Cilacap Refinery upgrade project is estimated to be between $4 billion to $5 billion.

Once the upgrade is completed, the capacity of the Cilacap refinery will increase to 370,000 barrels per day.

The upgrade will help maximize gasoline and diesel production and allow higher quality base oils to be produced from the refinery.

The upgrade will also boost the refinery’s petrochemicals capacity to more than 600 KTPA of aromatics and 160 KTPA of polypropylene.

The companies are projecting that the front end engineering design stage will be complete in 2018.

The EPC stage is expected to kick off in 2019 and the project upgrapde is projected to be complete by the end of 2022.

“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,” Saudi Aramco Vice President of International Operations Said Al-Hadrami said.

The award follows a heads of agreement that was signed by Pertamina and Saudi Aramco in November 2015 to formalize the collaboration for the project.