Pertamina, Mitsui end Cilacap RFCC deal

State oil and gas company PT Pertamina (Persero) announced on Thursday that it has decided to terminate residue fluid catalytic-cracking (RFCC) cooperation with Japanese firm Mitsui & Co. at its Cilacap refinery in Central Java starting Dec 31, 2009 due to disagreement over undisclosed business scheme.

Both parties have signed Termination Mutual Settlement, Release and Discharge Agreement on January 14, 2010, Pertamina said in a release.

Pertamina and Mitsui will liquidate JV Company PT Pertamit Processing which was incorporated in 2008.

?Termination of this agreement would not affect business relationship of both parties and Pertamina is now setting up preparation to open tender to select EPC contractor for the project,? Pertamina said.

Pertamina said in 2008 that it would team up with Mitsui in a US$1.5 billion to build an RFCC that would be capable of producing 60,000 barrels per day of gasoline. Mitsui had 80 percent stake in the JV Company.

Pertamina's Cilacap refinery, located in Central Java, has two crude distillation units with a capacity of 118,000 bpd and 230,000 bpd, respectively. (kanti)