Rosneft made its first ever gasoline cargo delivery to the Asia Pacific region
Rosneft Trading SA, a company of Rosneft Group, has made its first ever gasoline cargo delivery to the Asia Pacific region, Rosneft says in a press release. The cargo was shipped to Indonesia State Oil Company Pertamina within the Term Agreement, signed between the companies in June 2016.
The delivery marks a historic achievement for Rosneft – it is the first time the Company shipped gasoline to an Asia Pacific region country. This trading position further consolidates the high level in-house expertise and capabilities achieved by the Company over the recent years. Despite the intense competition in the oil products trading space, Rosneft Trading SA has successfully reached an additional milestone towards extending the international global hydrocarbon trading footprint for the Rosneft Group.
The 200 000 bbls cargo, efficiently purchased from the international market, was delivered on FOB terms to Malaysia.
The Republic of Indonesia, with a population of 254 million people, is one of the largest Asian-Pacific net importer of motor fuels and petrochemicals and with significant growth opportunities (in 2015 Indonesia GDP grew up by 4.79%). Rosneft sees a great potential in this actively developing market. The first gasoline delivery represents the first element of the Company’s strategy focused at capitalizing on this increasing demand. The next step of this long-term development vision is a more deep involvement in the Indonesian refining area. In May, 2016 the Company successfully bid within a Pertamina-organized contest to participate in the construction of the Tuban refining and petrochemical complex. Currently the parties are performing a bankable feasibility study. The final investment decision will be taken upon the results of the feasibility study, basic engineering design (BED) and front-end engineering design (FEED).
Rosneft and Pertamina signed a term contract for the delivery of 1.2 mln bbls of gasoline. The contract with a lifespan of 6 month (possible prolongation) was signed in continuation of the framework agreement on cooperation, signed on May, 26.
The document envisages that the Parties agreed to perform a bankable feasibility study to finance the project of construction of the new refining and petrochemical complex Tuban in the eastern part of Jawa, Indonesia and establish a joint venture for the project implementation. Also, the signed agreement envisages a study into the prospects for joint projects in the area of crude and oil products supplies, logistics and infrastructure, the potential for Pertamina to enter in Rosneft's Upstream projects in Russia as an equity holder, and partnership in international joint projects for oil refining.
The design capacity of primary processing at the Tuban complex is 15 mln tons/year. It will run on imported medium and heavy grades of sulphurous crude. The project provides for the construction of a large fuel oil catalytic cracker and a petrochemical complex. The complex is assumed to be able to accommodate VLCC supertankers with deadweight of up to 300 thousand tons.