TEMPO.CO, Cilacap - Saudi Aramco that has cooperated with PT Pertamina will soon start the engineering process of its refinery development project in Cilacap, Central Java.

"Soon the engineering process of the Cilacap refinery project will be started," energy and mineral resource minister Sudirman Said said at the presidential palace compound here on Sunday.

He said this was one of the topics discussed in the meeting between Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud with President Joko Widodo at the presidential palace in Bogor, West Java, on Sunday.

He said PT Pertamina is scheduled to sign a deal to conduct basic engineering with Saudi Aramco on Monday (May 23) morning.

"And this will mark the start of the process of the Cilacap refinery development project " he said.

Since last year PT Pertamina, the Indonesian state-owned oil and gas company, and Saudi Aramco, has reached an agreement to build a joint venture including developing the biggest oil refinery in Indonesia which is worth US$5 billion.

At the meeting with President Joko Widodo Prince Alaweed also discussed Aramcos wish to increase its investment in Indonesia.

"Aramco has also received commitment to carry out two other refinery projects in Balongan and Dumai," he said.

Aramco, Sudirman said, seems more interested in developing existing refineries because they are considered more profitable in economic as well as technical terms than building new ones.

Even it has also expressed interest in downstream to marketing business for cooperation with Indonesia through Pertamina.

ANTARA