Russia’s giant oil and gas company Rosneft and Indonesia’s state owned Pertamina have signed a memorandum of understanding (MOU) to carry out a joint study of potential areas of cooperation in upstream and downstream oil and gas business.
“The document provides for a joint study of potential areas of cooperation between the two companies, particularly in hydrocarbons upstream in Russia and Indonesia, marketing and logistics (storage, oil and oil products blending), as well as oil refining in Indonesia,” Rosneft said in a statement.
In addition, the two parties agreed to review the possibilities of partnership in the area of oil and oil products, petrochemicals, LPG and LNG supplies to Indonesia.
The MOU was signed by Rosneft chairman of Management Board Igor Sechin and Pertamina’s president director Dwi Soetjipto on the sidelines of St Petersburg International Economic Forum.
Rosneft said that the partnership with Pertamina, one of the leaders of Indonesia’s energy market, opens up new export outlet possibilities for Rosneft.
In line with the Memorandum, Rosneft may gain access to consumers of the largest economy of South-East Asia and net importer of oil.
Pertamina on the other hand is looking to diversify its crude oil import to fill the gap of falling domestic oil production. Currently, Indonesia only produces around 800,000 barrels of crude oil per day, meeting only half of its domestic oil consumption of 1.5 million barrels per day.
Rosneft is the world’s largest publicly traded petroleum company and its activities include, hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.
The main company shareholder (69.50 percent) is OJSC ROSNEFTEGAZ, a 100 percent Russian state-owned company. BP owns another 19.75 per cent and the remaining 10.75 per cent of shares are publicly traded.