Jakarta, CNBC Indonesia – The plan to cooperate with PT Pertamina (Persero) with an oil company from Saudi Arabia, Saudi Aramco has been halted for the construction of the Cilacap refinery capacity building project.
Pertamina’s President Director, Nicke Widyawati, revealed the danger if this collaboration would continue. This is because there is a difference in the valuation of the project value between Pertamina and Saudi Aramco.
“So the problem is from differences in valuations. How do valuations assess the existing Cilacap refinery there is a difference in price of US $ 1.1 billion. That’s when compared to book value, that’s SOE assets,” said Nicke.
“So it is impossible for us to be released because under a book value of a figure of that size would be dangerous. Therefore we agreed to disagree. So we broke up well at the end of April,” Nicke said in the Parliament Building, Senayan, Jakarta, Monday (6/29/2020).
Pertamina’s cooperation plan with Aramco has been carried out since 2014. The project is aimed at increasing the capacity of the Cilacap Refinery from 348 thousand barrels to 400 thousand barrels per day. The value of this project reaches billions of US dollars or trillions of rupiah.
Currently, said Nicke, Pertamina is exploring two investors who are seriously working on working on the Cilacap refinery project.
“There are a few more approach, yes we will do the selection process again. But then we still do also to early work. Because that is mandatory or mandatory we do is increase from (quality of fuel) from euro 2 to euro minimum euro 4 lah. That can be received from the environment, “said Nicke.
