The Abu Dhabi National Oil Company (ADNOC) has exchanged the signing of agreements with Indonesia’s Pertamina and Chandra Asri. Pertamina
ADNOC has signed a Memorandum of Understanding (MoU) to explore the potential development of crude to petrochemicals complex in Balongan, Indonesia as well as a sales agreement in which ADNOC will supply Pertamina with up to 528,000 MT of LPG by the end of 2020.
Chandra Asri and ADNOC also signed an MoU to explore the potential supply of naphtha to Chandra Asri in Indonesia that would be utilised as a feedstock for their current and potential new cracker complex in Indonesia.
Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO, has signed each of the agreements, while Nicke Widyawati, Pertamina president director and CEO and Erwin Ciputra, Chandra Asri president director signed on behalf of Pertamina and Chandra Asri, respectively.
“The agreements signed with Pertamina and Chandra Asri will potentially help ADNOC to secure additional in-market presence in one of Southeast Asia’s fastest-growing economies, enabling new domestic value-creation opportunities across the hydrocarbon chain. Today’s announcement is a testament to the success of ADNOC’s international partnership strategy, our ability to consistently deliver innovative value-creation opportunities and the UAE’s strong ties with the Republic of Indonesia, Al Jaber said.
“The agreements with ADNOC will strengthen Pertamina’s ability to carry out its national duty, realising Indonesia’s energy security in a challenging and complex environment. We expect that both the potential refinery development at Balongan and the direct LPG supply will allow us to optimise Indonesia’s oil and gas value chain, better serve the domestic market through our vast distribution networks across the whole archipelago and access new opportunities to meet growing global demand for petrochemical products,” Widyawati added.
“Chandra Asri is delighted to explore opportunities with ADNOC in the area of feedstock supply for our current and future petrochemical business. This is in line with our heritage and strategy of developing long-term, win-win partnerships as a Growth Partner; supporting our ongoing mission to contribute to Indonesia’s economic development,” Ciputra commented.
