Indonesian state-owned energy company Pertamina has officially signed a framework agreement in the oil and gas sector with the Russian energy giant Rosneft, Jakarta Globe reported. Under the agreement, Rosneft will build a refinery, while Pertamina will acquire minority stakes in two oil exploration blocks in Russia. The two companies have agreed that Pertamina will have a share of between 10% and 15% in those two blocks, Kadata added.

Although the company will only acquire so far two oil and gas blocks, Pertamina wants to be able to acquire more. The target is to obtain additional oil production of 35,000b/pd and oil reserves of 200m barrels. Pertamina has set a target that within the next nine years, oil production from overseas oil and gas fields will increase more than five-fold to 600,000bp/d. Currently, the company’s oil production from oil fields in three countries is only 85,000bp/d.

For the Tuban refinery, the two companies will form a joint venture, in which Pertamina will own 55 % of the shares and Rosneft will own the remainder. However, the companies were unable to estimate the total investment needed for the refinery project, because they still have to do more detailed calculations. The preliminary estimate is for $13b.