PTTGC, Pertamina in manufacturing JV heads-of agreement (HOA) to proceed with feasibility study

11-Dec-13

Pertamina and PTT Global Chemical (PTTGC) have inked a heads-of agreement on a manufacturing joint venture with a view to pursuing a final investment decision on a world-scale petrochemical complex in Indonesia, which is targeted for commercial operation by 2018, as per thenationmultimedia.com. An HOA is a non-binding document outlining the main issues relevant to a tentative agreement. The move comes after the completion of an extensive project preliminary feasibility study - a part of the partnership HOA signed in April. The manufacturing JV-HOA is aimed at further materialising the agreed joint-venture principles and investment scope, as well as enabling both parties to finalise the project details by early next year, before conducting a detailed bankable feasibility study and front-end engineering design. The parties have reached understanding on the project's definition, including a common goal and objective, a competitive investment model and appropriate site specification, as well as each party's strength to be leveraged for building the JV's competitiveness. This will move the matter forward for a final investment decision, which is anticipated in 2015.