Jakarta, Petrominer — Rosneft and PT Pertamina (Persero) are pleased to announce that they have signed, in Jakarta (Indonesia), a number of documents aimed at further development of cooperation between the companies. The agreements reached between the companies cover key areas of their business activities.
Rosneft and Pertamina signed a GRR Tuban JV Agreement that envisages the intention for the creation of a Joint Venture Company (JVC) to implement the project for the construction of the Tuban refining and petrochemical complex to be located in the eastern part of Java (Indonesia).
The document specifies the allocation of equity stakes between JV participants (Rosneft 45%, Pertamina 55%, respectively), JV management and activity of funding principles and further steps for project implementation.
The parties are currently developing a basic feasibility study (BFS) of the project. The final investment decision (FID) on the project will be made upon the results of the BFS, basic engineering design (BED) and front end engineering design (FEED).
The design capacity of primary processing at the Tuban complex is 15 million MTA. It will run on imported medium and heavy grades of sour crude. The project provides for the construction of a large fuel oil catalytic cracker and a petrochemical complex. The complex is assumed to be able to accommodate VLCC supertankers with a deadweight of up to 300 thousand tonnes.
Additionally, the GRR Tuban JV Agreement describes the result of the negotiation on the key terms of hydrocarbons supplies by Rosneft to the JV and the principles of marketing the products to be produced at JV facilities.
The establishment of the JV marks a new phase in the development of a modern refining and petrochemical complex in Indonesia. The project is an important part of Rosneft’s and Pertamina’s mutual cooperation, which is instrumental to providing energy supplies for Indonesia and the region. It is also consistent with Rosneft’s aim to achieve a stronger presence in the oil & gas market in the Asia-Pacific Region.
Exploration and Production
Rosneft and Pertamina laid the foundation for cooperation in the area of joint development of offshore fields. The companies signed Memorandum of Understanding (MoU) for the development of two Rosneft’s upstream assets located in offshore and onshore in the Russian Federation.
Pursuant to the signed document, the parties intend to agree legally binding documents for future arrangements with Pertamina in further involvement in the project. Participation of Pertamina in the production project in the territory of the Russian Federation not only will strengthen long-term relations between the Russian Federation and Indonesia, but also serves as implementation of Pertamina mission to continue securing energy resources for Indonesia’s rapid increasing demands on energy.
The document serves as a platform for Pertamina for further review and accessing possibilities in the future. Implementation of the project will allow Rosneft to acquire a new international partner for developing a capital intensive project in Russia.
Participation of Pertamina in the upstream project in the territory of the Russian Federation will strengthen long-term relations between the Russian Federation and Indonesia, and also serves Pertamina’s mission to secure energy resources for Indonesia’s rapid increasing demands on energy, worldwide.
Commenting on the agreements reached, Igor Sechin said, “The signed documents cover key business dimensions of our companies, demonstrating an integral cooperation between Rosneft and Pertamina. The reached arrangements present an outstanding example of a high-quality business dialog between the two world energy leaders. I am confident that we will keep up the pace of the development of our partnership for the benefit of our companies and both countries”.
“We are always optimistic and must move forward by assessing all future opportunities in our value-chain, for both upstream and downstream businesses. We are committed in securing and diversifying the energy supplies for our country. Our Cooperation with Rosneft serves as a strategic milestone for us to implement that commitment which will further establish Pertamina as a global player and preferred-partner for our International counterparts. This will also accelerate Pertamina’s target to participate and operate overseas upstream assets. Â We are confident these will bring positive benefits for Indonesia, through these Russian partnerships, in the future,” Dwi Soetjipto Said.
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