Rosneft, Pertamina Pave Way for Long Term Cooperation

Rosneft and Pertamina have paved way for long term partnership in multiple fields.

The two parties signed a framework agreement on cooperation. They have agreed to perform a bankable feasibility study to finance the project of construction of the new refining and petrochemical complex Tuban in the eastern part of Java, Indonesia and establish a joint venture for the project implementation.

The final investment decision on Tuban will be taken upon the results of the feasibility study, basic engineering design (BED) and front-end engineering design (FEED).

The two would also cooperate in the area of crude and oil products supplies, logistics and infrastructure. The agreement also creates potential for Pertamina to enter in Rosneft's upstream projects in Russia as an equity holder, and partnership in international joint projects for oil refining.

“The geographical location of Indonesia, at a crossroad between two oceans, the Pacific and Indian, opens for the country the way for turning into a global transportation and energy hub which could become a critical point for global economic growth,” Rosneft Chairman of the Management Board Igor Sechin noted.

Russian energy majors have begun to sharpen focus on Asia as the region is expected to see rapid growth in energy demand in next three decades.