Rosneft, Pertamina in refinery JV

MOSCOW, October 5, 2016 – Rosneft said on Wednesday that the company had reached an agreement with Indonesia’s Pertamina on setting up a joint venture for the construction of a refinery on Java.

The joint venture announcement follows the May 2016 framework agreement, when the two companies agreed to invest USD 12 billion-13 billion in the greenfield Tuban refinery. The facility, with a design capacity of 300,000 bpd, is scheduled for completion in 2021, and will include a petrochemicals complex and fuel oil catalytic cracker.

“The creation of the JV marks a new phase of implementing the project to establish a modern oil refinery and petrochemical complex in Indonesia,” Rosneft said, adding that the project constituted a “significant element” of its strategy aimed at “increasing its presence on the market of oil products in the Asia-Pacific region.” The company will take a 45% share in the project, with the remaining share going to Pertamina.

On Tuesday, Rosneft closed a deal with Pertamina on the sale of a stake in the North Chayvo field. The state-owned Indonesian firm may acquire up to 20% in the field, located offshore Sakhalin. A memorandum of understanding on a 37.5% share in the Russkoye was also signed that day.

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