МOSCOW (MRC) -- Rosneft and Pertamina signed a JV agreement that serves as the underlying agreement for the creation of a JV company that would implement the construction of the Tuban refining and petrochemical complex located in the eastern part of Java, Indonesia, said the company on its site.
The JV agreement specifies the allocation of equity stakes between JV participants (Rosneft – 45%, Pertamina – 55%, respectively), JV management and governance, feedstock, marketing and offtake, funding principles, HR, standard clauses and further steps for implementation.
The parties are currently developing a bankable feasibility study of the project. The final investment decision (FID) on the project will be made upon the results of the bankable feasibility study, basic engineering design and front end engineering design.
The design capacity of primary processing at the Tuban complex is 15 MMtpy. 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 Mt.
The establishment of the JV marks a new phase in the development of a modern refining and petrochemical complex in Indonesia.
As MRC informed earlier, Russia's Rosneft has signed a contract to supply 96 MMt of crude oil to PV Oil, an affiliate of state oil and gas PetroVietnam, starting next year. The contract, signed on the sidelines of an international economic forum in Russia's St Petersburg, will last between 2017 and 2040. The volume to be supplied by the Russian firm is equivalent to nearly six years of Vietnam's crude oil production, which totalled 16.7 MMt in 2015, based on Vietnam's government data.
Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
MRC