Pertamina cooperates with Russia’s Rosneft on Tuban refinery, gets govt support

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Photo Credit : PHE ONWJ

JAKARTA (TheInsiderStories) – State owned energy company PT Pertamina and Russia’s oil and gas company Rosneft have agreed to cooperate in developing oil refinery in Tuban, East Java, with estimated investment of US$11-12 billion. The cooperation has been backed by the State Enterprise Minister Rini Soemarno.

“Today, we bring Rosneft to have an audience with the Minister to follow up of the (bidding) process related with the plan to build oil refineries, in particular in Tuban. We see that Rosneft has the capacity in term of oil production, technology and fianncing. It is true that Rosneft has chosen as preferred bidder to develop the Tuban refinery,” Pertamina President Director Dwi Soetjipto said.

“In addition, Rosneft also offer (an opportunity) to cooperate in developing upstream (oil and gas) business,” he added.

“As a government, certainly we hope this talks will lead to concrete cooperation between Pertamina and Rosneft quickly. The cooperation between the two companies are very important, in particular in guaranteeing the national energy security,” said the SOE Minister Rini Soemarno after receiving a visit from Pertamina and his partner Rosneft at her office.

The visit of Rosneft delegation follows an MoU between Pertamina and Rosneft in Lenexpo St. Petersburg, Russia in June 2015.

Chairman of the Rosneft Management Board Igor Sechin is on a working visit to Indonesia holding negotiations with the Energy and Mineral Resources Minister Sudirman Said, State-Owned Enterprises Minister Rini Soemarno and oil and gas company Pertamina President Director Dwi Soetjipto.

The sides discussed the prospects for joint projects in the field of crude and product supplies, logistics and infrastructure, Rosneft participation in oil refining in Indonesia, and the potential for Pertamina to step in as a shareholder in Rosneft’s upstream projects in Russia. The meeting also actively discussed cooperation in the development of new technologies and training of personnel.

Igor Sechin noted that Rosneft appreciates the prospects of cooperation with Pertamina, which will provide an additional channel for Rosneft to supply its high-margin products to one of the fastest growing economies in the region (4.79% GDP growth in 2015). The Republic of Indonesia, with a population of 254 million people, is the largest Asian-Pacific net importer of motor fuels and petrochemicals.

Petroleum products are supplied to Indonesia primarily from South Korea and Singapore. It is crucial for Rosneft to arrange direct shipments of hydrocarbons, which will increase the economic efficiency of oil refining in Indonesia, said Igor Sechin.

The head of Rosneft stressed the Company’s interest to set up a regional energy hub in Indonesia. According to Igor Sechin, it could be based on a vertically integrated partnership between Rosneft and Pertamina.

Currently Rosneft produces 5.2 million barrels of oil per day and 50 percent of the output is processed in its owned refineries.

In addition, Rosneft also offers Pertamina to cooperate in upstream oil and gas business in Russia. Pertamina is now in the process of studying the data room of those oil and gas prospects in Russia.

The post Pertamina cooperates with Russia’s Rosneft on Tuban refinery, gets govt support appeared first on The Insider Stories.

Source: The Insiderstories
Pertamina cooperates with Russia’s Rosneft on Tuban refinery, gets govt support

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