The Abu Dhabi National Oil Company (Adnoc) has signed a comprehensive strategic framework (CSF) agreement with Indonesia’s energy company, PT Pertamina (Persero) to explore opportunities for collaboration across the oil and gas value chain in the UAE, Indonesia and globally.
Projects under consideration include potential new investments in upstream, refining, petrochemicals, LNG, LPG, aviation fuel and fuel retail, as well as other forms of strategic collaboration, said the statement from Adnoc.
Pertamina is the state-owned energy company which operates an integrated business in the energy sector in Indonesia and is presently boosting its overseas presence.
The company produces and distributes energy products such as fuel, lubricants, LPG, LNG, and petrochemicals.
Currently, it owns six oil refineries in Indonesia with a combined production capacity of 1.1 million barrels of oil per day (mmbpd). At the same time, the company is developing renewable energy from many potential resources in the country.
The CSF agreement was signed by Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Nicke Widyawati, President Director & CEO of Pertamina in the presence of HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Force and Joko Widodo, President of Indonesia.
As per the deal, both Adnoc and Pertamina will evaluate collaboration opportunities across the upstream, midstream and downstream sectors.
In addition, the two partners will explore other forms of strategic collaboration with respect to opportunities across transportation, trading and storage in the UAE, Indonesia and globally, it added.
Dr Al Jaber said: "We are pleased to sign this agreement with Pertamina, building on the strong existing relationship between our two countries. Indonesia has a thriving industrial base and is a rapidly growing market for energy."
"We see significant opportunity for collaboration between our two companies and the development of projects that meet our joint strategic objectives," he stated.
"This collaboration with Pertamina further demonstrates Adnoc’s drive to unlock value from across our entire portfolio and our ambition to expand our international investments to become a truly global energy company," he added.
On the new deal, Widyawati said: "Pertamina plans to develop an additional 1 mmbpd of refining capacity through Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. Therefore, partnership with Adnoc will be an important milestone for us to secure energy supplies from overseas."
"Adnoc’s interest to participate in Indonesia’s oil and gas landscape is monumental to support Pertamina in ensuring the availability and accessibility of energy for Indonesian people," he added.
Working groups from each side will be meeting over the coming months to evaluate and shortlist key areas for strategic collaboration across both companies’ extensive asset and project portfolios. It is expected that specific collaboration options will be agreed for execution by the end of 2019, said the statement from Adnoc.
This new partnership marks another step in Adnoc’s group-wide transformation and value creation programme that addresses the evolving energy and petrochemicals landscape and ensures the Abu Dhabi group remains a resilient and flexible company able to take full advantage of emerging market opportunities and trends, it added.
