Rosneft, Pertamina Sign Refining JV, Upstream MOU
Rosneft and Indonesian state Pertamina have signed multiple agreements relating to refining and petrochemicals, upstream and trading.
The two companies agreed to create a joint venture with the scope of implementing the project for the construction of a 300,000 b/d (15 million metric ton/yr) Tuban refining and petrochemical complex in eastern Java, Indonesia to run medium and heavy sour crude imports, which will include a large fuel oil catalytic cracker and a petrochemical complex. Russian state oil giant Rosneft said October 5 it will have a 45% equity stake in the project while the remaining 55% will be owned by Pertamina. A feasibility study is in the works and the final investment decision will be made after the study is complete.
Signing ceremony (Credit: Rosneft)
Both parties agreed to work together upstream to develop fields offshore Russia. They signed a memorandum of understanding for cooperation in the northern tip of the Chaivo field (Sakhalin Island). Pursuant to the signed document, the parties intend to agree legally binding documents for the acquisition by Pertamina of up to a 20% share stake in the project, Rosneft stated.
Both companies are also considering a joint venture to develop a Rosneft onshore project. They signed a MoU for cooperation in respect of Russkoye field, in which Petramina would have a stake of up to 37.5%. Rosneft expects legally binding agreements to be signed in the near term.
Pertamina CEO Dwi Soetjipto said October 5: "Our cooperation with Rosneft serves as a strategic milestone for us to implement that commitment which will further establish Pertamina as a global energy player and preferred-partner for our international counterparts."
In May this year, Rosneft and Pertamina signed a framework cooperation agreement that envisaged a study into possible joint projects in the field of crude and product supplies, logistics and infrastructure, and the opportunity for Pertamina to become a shareholder in Rosneft's upstream projects in Russia, and a partnership in international joint projects for oil refining.
Shardul Sharma