Abu Dhabi – Mubasher: The Abu Dhabi National Oil Company (ADNOC) has signed several agreements with Indonesia’s Pertamina and Chandra Asri. Pertamina, Emirates News Agency (WAM) recently reported.  

ADNOC signed a memorandum of understanding (MoU) with Pertamina, seeking the development of a crude-to-petrochemicals complex in Indonesia’s Balongan. 

The two entities further inked a sales agreement where Pertamina will receive up to 528,000 MT of LPG by the end of 2020. Furthermore, Chandra Asri and ADNOC concluded an MoU to explore the potential supply of naphtha to Chandra Asri in Indonesia.

Commenting on the signing, minister of state and ADNOC Group CEO, Sultan bin Ahmad Sultan Al Jaber, said, “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.”

The bilateral collaboration highlights ADNOC’s successful international partnership strategy as well as its capability to consistently provide innovative value-creation opportunities and contributes to Indonesia’s path towards petrochemical self-sufficiency.

In the meantime, Pertamina's president director and CEO, Nicke Widyawati, explained, “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."  

Moreover, Chandra Asri's president director, Erwin Ciputra, commented: "Chandra Asri is delighted to explore opportunities with ADNOC in the area of feedstock supply for our current and future petrochemical business." 

Additionally, the sales deal will allow for both FOB sales. In other words, customers collect product from Abu Dhabi and CFR sales, in which ADNOC delivers product to customers, while ADNOC’s potential supply agreement with Chandra Asri will strengthen the Emirati firm’s foothold in Indonesia.