ADNOC and Pertamina sign comprehensive agreement in oil and gas development
24 Jul 2019
The Abu Dhabi National Oil Company, ADNOC, today signed a Comprehensive Strategic Framework, CSF, with Indonesia’s energy company, PT Pertamina, Persero, to explore opportunities for collaboration across the oil and gas value chain in the United Arab Emirates, Indonesia and globally.
The signing of the agreement took place in the presence of His Highness 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.
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Nicke Widyawati, President Director and CEO of Pertamina signed the agreement.
As part of the CSF, ADNOC and Pertamina will evaluate collaboration opportunities across the upstream, midstream and downstream sectors. The scope of projects under consideration includes participation in the UAE’s upstream oil and gas sector, as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Indonesia. 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.
Pertamina is the state-owned energy company of Indonesia. The company operates an integrated business in the energy sector in Indonesia and is expanding its overseas presence. The company produces and distributes energy products such as fuel, lubricants, LPG, LNG, and petrochemicals. Currently, Pertamina 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.
Dr. Al Jaber said, "We are pleased to sign this agreement with Pertamina today, 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 added, "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."
Nicke Widyawati said, "Pertamina plans to develop an additional 1 mmbpd of refining capacity through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. Therefore, partnership with ADNOC will be an important milestone for Pertamina 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."
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.
This new partnership marks another step in ADNOC’s group-wide transformation and value creation program that addresses the evolving energy and petrochemicals landscape and ensures ADNOC remains a resilient and flexible company able to take full advantage of emerging market opportunities and trends. The Group’s transformation is driven by an expanded approach to strategic partnerships and co-investments as well as the more proactive management of ADNOC’s portfolio of businesses, assets and capital.
As for Pertamina, the collaboration supports its ambition to embark into the global energy arena and acts as a stepping stone to achieve greater competitiveness to compete with international energy players.