Pertamina, Rosneft to build Tuban oil refinery
Saturday, May 21 2016 - 04:15 AM WIB
Indonesia?s state-owned oil and gas firm PT Pertamina will team up with Russia?s state-controlled integrated oil company Rosneft to develop a US$13 billion oil refinery in Tuban, East Java.
This was said by State Minister of State-Owned Enterprises Rini Soemarno following a meeting between President Joko Widodo and Rosneft Board Chairman Igor Sechin on Friday in South Korea.
Rini said that the two companies are expected to sign a joint venture agreement in Jakarta on Thursday for the development of the planned oil refinery, which will have a capacity of 320,000 bpd.
Meanwhile, Pertamina President Director Dwi Soetjipto said that the company will have a ?greater role? in the joint venture.
Rini said that Rosneft will also invite Pertamina to develop oil fields in Russia, the output of which will be shipped to Indonesia to help increase the country?s national reserves. The Russian firm has also agreed to Joko Widodo?s request to help develop oil storages in Indonesia.
A number of foreign giants including Saudi Aramco, Sinopec, Kuwait Petroleum International, and PTT Thailand have previously expressed interest in the Tuban refinery project.
Editing by Reiner Simanjuntak