Pertamina seeks a 51% stake in the venture to build a crude-oil refinery and petrochemical plants in eastern Java, with Russian state-controlled oil major Rosneft taking the remainder, Pertamina executives and Indonesian officials said. The refinery will be capable of processing 320,000 barrels of oil a day, and the complex will require $13 billion to $14 billion in investment, they said.

Rosneft appreciates the prospects of cooperation with Pertamina, which will provide an additional channel for Rosneft to supply its high-margin products to one of the fastest growing economies in the region (4.79% GDP growth in 2015). The Republic of Indonesia, with a population of 254 million people, is the largest Asian-Pacific net importer of motor fuels and petrochemicals. Petroleum products, produced from Russian crude, are supplied to Indonesia primarily from South Korea and Singapore. It is crucial for Rosneft to arrange direct shipments of hydrocarbons, which will increase the economic efficiency of oil refining in Indonesia.

Indonesia's Pertamina says to raise oil output with overseas acquisitions