Indonesia expects to sign a final agreement with Russian oil giant Rosneft on construction of the Tuban oil refinery in 2017, while construction is believed to get started in 2019, reports RIA Novosti citing Wiratmaja Puja, head of the oil and gas department at Indonesia’s Ministry of Energy and Mineral Resources.
“We have signed a memorandum of understanding and are currently preparing a final agreement, which is expected to be signed in 2017… Construction works will be started in 2019,” Mr Puja said, adding that after signing the document, Rosneft will have a 49% stake in the oil refinery and Indonesia’s Pertamina will own 51%. The project is expected to cost USD10 billion.
In late May, Rosneft and Pertamina signed a framework agreement to cooperate in construction of an oil refinery in the town of Tuban with projected capacity of 15 million tonnes of oil per year.
Indonesia is also discussing cooperation with Rosneft, Gazprom Neft, and Lukoil in oil production projects in East Siberia (Russia), RIA Novosty reported earlier on Tuesday citing Mr Puja.
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