Indonesian state-owned energy company Pertamina and Rosneft on November 28, 2017, agreed to form a joint venture company that will build and operate a oil refinery and petrochemical complex in East Java, Indonesia.
«The geographical location of Indonesia, at a crossroad between 2 oceans, the Pacific and Indian, opens…the way for turning [the country] into a global transportation and energy hub which could become a critical point for global economic growth,» said Rosneft´´s CEO Igor Sechin.
The new joint venture will invest $15 billion to build a new refinery and petrochemical plant in Tuban in East Java, with a production capacity of 300,000 barrels per day.
Through the agreement, it was established that Pertamina will have the controlling stake of 55 % while Rosneft will hold the remaining 45 %.
The company will start the construction of the project in 2020, with completion expected in 2024.
Indonesia is the region’s largest gasoline and gasoil importer. The country has been notorious for planning a spate of refining projects over the last 2 decades with no result. Indonesia last built a new refinery in 1994.
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