Pertamina, PTTGC sign JV-HoA on petrochemical joint venture
Tuesday, December 10 2013 - 11:40 AM WIB
State owned oil and gas firm PT Pertamina and Thai firm PTT Global Chemical Public Company Limited (PTTGC) signed on Tuesday a Manufacturing Joint Venture-Heads of Agreement (JV-HoA) in order to soon make Final Investment Decision (FID) for the development of a world-class petrochemical complex in Indonesia.
The petrochemical complex is expected to start commercial operation in 2018.
Pertamina said in a statement the Manufacturing JV-HoA will lay out the foundation for the firms to carry out a feasibility study of the project, formulate JV principles and scope of investment before conducting Front End Engineering Design (FEED) for the project.
The JV-HoA was a follow up to the HoA signed by both firms in April this year in Bangkok.
Both firms target to make FID in 2015.
Pertamina said such petrochemical plant is necessary to support Indonesian economic growth as the country now imports US$5 billion worth of petrochemical products per year.
Editing by Johannes Simbolon