Saudi Aramco, Pertamina in $8b venture

Pertamina buildingSaudi Aramco Asia Company Limited, a subsidiary of Saudi Aramco, Saudi Arabia’s national oil and gas company, has announced plans to set up an $8 billion joint venture with Pertamina, Indonesia’s state oil and gas company, Indonesian Minister of Industry Mohammad Hidayat told Saudi Gazette on February 4. The news of the new joint venture came during a visit by Indonesian President Susilo Bambang Yudhoyono to Jeddah.

The new refinery is planned to be set up in East Java and will process 300,000 barrels per day of crude oil, with the majority of it being supplied by Saudi Aramco, Minister Hidayat said.

President Yudhoyono makes his trip to meet Saudi businessmen just after arriving from Nigeria, and will follow up by attending the 12th Organization of the Islamic Cooperation (OIC) Summit to be held in Cairo on February 3 to 5.

The joint venture with Indonesia comes at a time of high publicity for Saudi Aramco, who recently released plans to fund 250 projects to be launched and run by women during the next 6 months.

Part of the programme with focus on training productive families and preparing women both economically and socially for the modern-day workforce.

Another part of the discussion during Yudhoyono’s visit was tourism, and boosting trade relations. About 90,000 Saudi tourists are said to have visited Indonesia in 2011, when total trade volume between the two countries was around $6.85 billion.

Concluding the high-level meeting was Indonesian Trade Minister Gita Wirjawan, who called on Saudi companies to research investing in renewable energy, trade and food projects in his country.

According to Gita, Indonesia has development projects worth more than $36 trillion.