Execution of Memorandum of Understanding with PT. Pertamina (Persero)Thursday, 06 March 2014
Marubeni Corporation ("Marubeni") executed a Memorandum of Understanding ("MOU") with PT. Pertamina (Persero) ("Pertamina"), an Indonesian state-owned oil and gas company, regarding cooperation for a new gas-fired IPP and gas related infrastructure business in Indonesia ("the project") on February 19, 2014.
Under the MOU, Marubeni and Pertamina will collectively perform a comprehensive Feasibility Study ("F/S") for the project, including assessment of the gas-fired power plant and gas related infrastructure such as the gas transmission pipeline, onshore/offshore LNG receiving terminal and small-scale LNG receiving terminal business. If the projects' viability is confirmed through the F/S and an agreement is reached, Marubeni and Pertamina will proceed with the project.
Marubeni has over 50 years of business in Indonesia, and has played a part in contributing to the country's industrial development through participation in various infrastructure businesses such as power plant business and transportation. Among power business, Marubeni has a track record of over 7,500 MW for its engineering, procurement, and construction (EPC) business in the country. In addition, Marubeni is currently investing into three independent power producer (IPP) businesses. namely Cirebon coal-fired IPP (660 MW, Marubeni share 32.5%), Paiton 2 coal-fired IPP (1,220 MW, Marubeni share 15%), and Rantau Dedap geothermal IPP (development plan of 220 MW, Marubeni share 35%).
The mutually complementary relationship between the two companies, combining Pertamina's vast knowledge and extensive track record in Indonesia's oil and gas development and supply and Marubeni's know-how in the plant business such as power and gas related infrastructure, has led to the execution of this MOU. Marubeni and Pertamina's plan is for the sponsors to establish a value chain flow from the "upstream" of gas exploration and production to "midstream" of gas transmission and storage, and "downstream" of power generation. Also, the preparation of F/S is an aim of Pertamina's first participation into a gas-fired IPP.
Marubeni continues to consider Indonesia as one of its important strategic partners, and will make further contributions to the development of the nation's social infrastructure development through active business participation.