Abu Dhabi's Mubadala Investment Company and Austria's OMV signed an agreement to explore downstream opportunities with Indonesian entities.
Mubadala, which has been active in the Indonesian energy sector, and OMV, of which the Abu Dhabi company holds a 24.9 per cent stake, signed the preliminary agreement with Chandra Asri Petrochemical and Chandra Asri Perkasa on Wednesday.
The companies will look at collaborating in petrochemicals and will set up working groups to explore possible opportunities in the sector.
“We have been active in Indonesia for over 10 years through our portfolio companies operating across the value chain. We consider Indonesia a strategic market and are confident that this MoU will result in potential opportunities for Mubadala, our portfolio companies and key partners,” said Musabbeh Al Kaabi, chief executive of petroleum and petrochemicals platform at Mubadala.
The agreement follows Mubadala Petroleum’s decision to farm out stakes in two Indonesian concessions last week to British energy company Premier Oil.
The company, a unit of Mubadala Investment Company, sold 20 per cent stake interests in both Andaman I and South Andaman on the basis of gross split production sharing contracting, making Mubadala the largest operator of both concessions.
The North Sumatra basin area, where both concessions lie, is a relatively unexplored but tectonically active area off the coast of Indonesia. The acquisition makes Mubadala, which also has a 30 per cent stake in the Andaman II concession operated by Premier Oil, the largest net acreage holder in the area.
The agreement was signed as Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, arrived in Indonesia on Wednesday, following a state visit to China.
Separately, Abu Dhabi National Oil Company also signed a comprehensive framework with Indonesian state oil producer Pertamina to explore opportunities upstream and downstream in both countries.