Russian company Rosneft and Indonesian state-energy company Pertamina have signed an agreement to finance the construction of the new refining and petrochemical complex Tuban in east Java, worth up to $13bn.
Under the agreement, the companies will establish a joint venture for the project implementation and also study into the prospects for joint projects in the area of crude and oil products supplies, logistics and infrastructure.
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The final investment decision for the project will be taken after obtaining the results of the feasibility study, basic engineering design (BED) and front-end engineering design (FEED).
The agreement will enable Rosneft to expand its footprint in the Indonesian energy market.
It will also form a basis for development of upstream and downstream new joint projects in Russia, as well as third countries.
Rosneft management board chairman Igor Sechin said: "The geographical location of Indonesia, at a crossroad between two oceans, the Pacific and Indian, opens for the country the way for turning into a global transportation and energy hub, which could become a critical point for global economic growth.
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By GlobalData"It is obvious that accomplishment of such a global task cannot be achieved without ensuring stable development of the national economy and its uninterrupted supply with energy and fuel resources.
"In this regard, the establishment of partnership relations with Pertamina is the logical development of expanding Rosneft activities in the Asia-Pacific Region."
The design capacity of primary processing at the Tuban complex is 15 million tonnes per year.
The complex is expected to have the capacity to accommodate VLCC supertankers, with a deadweight of up to 3,00,000t.
