Chairman of the Rosneft Management Board Igor Sechin is on a working visit to Indonesia holding negotiations with the Energy and Mineral Resources Minister Sudirman Said, State-Owned Enterprises Minister Rini Soemarno and oil and gas company Pertamina President Director Dwi Soetjipto.
The sides discussed the prospects for joint projects in the field of crude and product supplies, logistics and infrastructure, Rosneft participation in oil refining in Indonesia, and the potential for Pertamina to step in as a shareholder in Rosneft's upstream projects in Russia. The meeting also actively discussed cooperation in the development of new technologies and training of personnel.
Igor Sechin noted that Rosneft appreciates the prospects of cooperation with Pertamina, which will provide an additional channel for Rosneft to supply its high-margin products to one of the fastest growing economies in the region (4.79% GDP growth in 2015). The Republic of Indonesia, with a population of 254 million people, is the largest Asian-Pacific net importer of motor fuels and petrochemicals. Petroleum products, produced from Russian crude, are supplied to Indonesia primarily from South Korea and Singapore. It is crucial for Rosneft to arrange direct shipments of hydrocarbons, which will increase the economic efficiency of oil refining in Indonesia, said Igor Sechin.
The head of Rosneft stressed the Company's interest to set up a regional energy hub in Indonesia. According to Igor Sechin, it could be based on a vertically integrated partnership between Rosneft and Pertamina.