The Abu Dhabi National Oil Company (ADNOC) signed three deals with Indonesia’s Pertamina and Chandra Asri, according to Pipeline Oil and Gas News.
In the attendance of Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Joko Widodo, President of the Republic of Indonesia, these agreements were signed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO, and Nicke Widyawati, Pertamina’s President Director and CEO and Erwin Ciputra, Chandra Asri President Director signed on behalf of Pertamina and Chandra Asri, respectively.
ADNOC and Pertamina inked a preliminary agreement to explore the development of crude oil to petrochemical complex in Balongan. The complex would improve Indonesia’s path towards petrochemicals self-sufficiency, as well as fulfilling the goals outlined in the comprehensive framework agreement signed by the two companies in 2019.
Additionally, a sales agreement was signed as well between ADNOC and Pertamina. Under which, ADNOC will supply Pertamina with up to 528,000 million tons (mmt) of liquefied petroleum gas (LPG) by the end of 2020. This agreement would allow free on board (FOB) sales, and cost and freight (CFR) sales which further improve ADNOC’s strategy to deliver more CFR cargoes to its customers and build upon its trading and logistics capabilities.
Furthermore, ADNOC and Indonesia’s Chandra Asri inked a memorandum of understanding (MoU) to explore the potential supply of naphtha to Chandra Asri that would be utilized as a feed-stock for their current and potential new cracker complex in Indonesia. This MoU will further expand ADNOC’s reach in Indonesia and is expected to help lay the groundwork for other potential areas of collaboration between the two companies.
It is worth noting that the value of the agreements was not revealed.
“This 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,” said Al Jaber.
“The agreements with ADNOC will strengthen Pertamina’s ability to carry out its national duty, realizing Indonesia’s energy security in a challenging and complex environment,” Widyawati noted.
“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.