Report: Russia’s Rosneft, Pertamina may ink refinery deal next week

MOSCOW, May 20 (PRIME) -- Russian state-run oil major Rosneft and Indonesia’s Pertamina have agreed on details of cooperation in the oil and gas sector, including construction of an oil refinery in the country, and may sign a framework agreement in Jakarta next week, Bloomberg reported Friday referring to Pertamina.

Pertamina will own a controlling stake in the refinery in the city of Tuban, and it will also have a possibility to invest in hydrocarbon production projects of Rosneft in Russia.

Presidential aide Yury Ushakov said on Tuesday that the companies planned to sign the agreement on construction of the oil refinery during the ASEAN–Russia summit on Thursday and Friday, but Energy Minister Alexander Novak said on Friday that the documents were still being prepared.

Earlier, Wiratmaja Puja, head of the oil and gas production department at Indonesia’s Ministry of Energy and Mineral Resources, said the companies may jointly invest U.S. $8 billion in construction of the refinery, or $13 billion if a decision on construction of petrochemical facilities is made.

End