Pertamina keen to hold majority stake in Cilacap expansion

State-owned oil, gas firm PT Pertamina is eager to hold a majority stake in the expansion project of its Cilacap refinery in Central Java.

Pertamina?s President Director Karen Agustiawan said that Pertamina and Mitsui were currently negotiating the ownership in the project. ?We hope the renegotiation can be finalized before the end of this year so that the plant could begin operation in 2013,? she added.

Pertamina has a 20 percent stake in the expansion project with Mitsui owning the rest. The project is expected to cost the partnership US$1.8 billion.

The project will increase the processing capacity of the Cilacap refinery to 410,000 barrels per day (bpd) from 348,000 bpd at present.

Pertamina and Mitsui had early last year held an EPC tender for Cilacap EPC but the tender failed as only Japanese contractor Toyo Engineering Corp. submitted proposal. (godang)