International Finance
Oil & Gas

Adnoc and Pertamina sign $2.5 bn oil and gas development deal

As part of the deal signed between UAE and Indonesia, Adnoc will build a LNG storage facility in Indonesia

The Abu Dhabi National Oil Company (ADNOC) has signed a deal with Indonesian energy company Pertamina for oil and gas collaboration in both countries. As a part of the deal, which is estimated to be worth $2.5 billion, the two companies will collaborate to build a liquefied petroleum gas (LPG) storage facility in Indonesia.

Recently, major deals worth $9.7 billion were signed by both countries. Other corporates that are part of these deals include Abu Dhabi investment company Mubadala and Dubai-based global ports operator DP World.

The deals were signed in the presence of Sheikh Mohamed bin Zayed Al Nahyan, crown prince of the Emirate of Abu Dhabi and Joko Widodo, president of Indonesia.

Indonesia’s Ambassador to the UAE Husin Bagis told the media that the new storage unit would be built to receive the LPG that would be imported from the Middle East.

He also added that, “Pertamina will need to prepare the location first, while Adnoc is fully ready for this project. They have a lot of money, we should utilise it.”

According to UAE Minister of State and Adnoc Group CEO Al Jaber, the collaboration with the Indonesian energy company demonstrates Adnoc’s ambition to expand its international investments to become a truly global energy company.

Indonesia spends $3 billion per year to import LPG which is almost 70 percent of the country’s national needs. It is also noteworthy that last year, Indonesia suffered a trade deficit of $500 million in its trade with the UAE. While the country’s imports from the UAE were worth $2 billion, its exports stood at $1.5 billion.

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