Pertamina, ADNOC Agree to Develop Refinery Development Master Plan in East Kalimantan
Date 26 Juli 2019
The United Arab Emirates (UAE) state oil company ADNOC has reached an agreement with Indonesia’s state-owned oil company Pertamina to develop the Refinery Development Master Plan (RDMP) in Balikpapan, East Kalimantan province.
The agreement was marked by the signing of the Comprehensive Strategic Framework (CSF) between the two companies during UAE Crown Prince’s visit to Indonesia on Wednesday (24/7).
Head of Public Information Services and Cooperation of Ministry of Energy and Mineral Resources Agung Pribadi said that the agreement will also open other possible cooperation in oil and gas business chain from upstream to downstream, both in the UAE, Indonesia and in the world.
“During the meeting, three agreements were signed with a total investment value of US$9.7 billion or around Rp136 trillion, one of which is in the oil and gas sector, RDMP Balikpapan, Integrated Supply Chain (LPG and Naphta), LPG Storage, and others with investments worth US$1.3 to 2.5 billion,” Agung said on Thursday (25/7).
He added that there are also investments in petrochemicals as well as in oil and gas derivatives sectors through the cooperation of Mubadala Investment Company and publicly-listed chemical company PT Chandra Asri Petrochemincal to build a petrochemical plant worth up to US$6 billion. “Under this cooperation, Indonesia is expected to reduce its dependence on imported petrochemical,” he said.
For the record, PT Pertamina is currently running and developing integrated business activities in the energy sector both at home and abroad. The company has six oil refineries with a capacity of 1 million barrel per day and is planning to increase refinery capacity by 1 million barrels per day through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects.
In the meantime, President Director of PT Pertamina Nicke Widyawati said that the cooperation between Pertamina and ADNOC is expected to support Pertamina’s efforts to ensure energy security and availability in the country, as well as in entering the global market. “Cooperation with ADNOC will be a crucial milestone for Pertamina,” she said on Wednesday (24/7).
After the signing of the cooperation, both parties will meet for several months to evaluate and select key areas for strategic collaboration across the assets and project portfolios of the two companies.
More specific cooperation scheme is expected to be completed by the end of this year. (Public Relations of Ministry of Energy and Mineral Resources / ES)