UPDATE: Russia’s Rosneft, Pertamina to build petrochemical plant

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MOSCOW, Oct 5 (PRIME) -- Russian state-owned oil major Rosneft and Indonesia’s Pertamina have signed an agreement to establish a joint venture to build a refining and petrochemical facility Tuban on the Java Island, Rosneft said in a statement Wednesday.

Rosneft and Pertamina signed a framework agreement to cooperate in construction of an oil refinery in the town of Tuban in May. The crude processing capacity is projected at 15 million tonnes of oil annually.

Rosneft will own 45% in the joint venture, and Pertamina will have a 55% stake. The agreement also defined key conditions for supplies of Rosneft’s hydrocarbons to the facility and regulations for sales of the facility’s production. The two companies are now conducting a feasibility study for the project.

The two companies have also signed a memorandum of understanding on cooperation under a North Chaivo project on the Sakhalin Island, under which Pertamina may buy up to 20% in the project.

Rosneft and Pertamina are also studying creation of a joint venture for development of a Rosneft’s on-land project. The companies signed a memorandum of understanding on cooperation in development of the Russkoye field, where Pertamina may acquire an up to 37.5% stake Rosneft said in a statement.

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