Pertamina, Rosneft put down deposits for Tuban refinery project
Monday, October 31 2016 - 01:03 AM WIB
Pertamina said in a statement Sunday that that the deposit was a follow up of a joint venture agreement signed by the two companies on October 5, 2016. ?On October 5, the Tuban JVA was signed following a non-stop 28 hours negotiation process ? Pertamina and Rosneft have strong commitment not to delay the project,? said Pertamina Director of Processing and Petrochemical Megaproject, Rahmad Hardadi in the statement.
According to the statement, Rosfnet has also agreed to provide an option for Pertamina to invest in an oil and gas field in Russia with production level of not less than 30,000 boepd, and reserves of not less than 200 million boe. ?This is a very important agreement for Pertamina and national energy security which very much requires additional oil and gas production to meet growing energy need (of the country,? Rachmad said.
Meanwhile, Vice President Corporate Communication of Pertamina Wianda Pusponegoro said that Pertamina holds a 55 percent stake in the Tuban JVA, and the remainder 45 percent is held by Rosneft. The two companies are currently in the process of completing the bankable feasibility study (BFS). The final investment decision will be made once the BFS, basic engineering design (BED), and the front end engineering design (FEED) have been completed.
The Tuban refinery will have a design capacity of 300,000 bpd, with refinery complex level of above 9 NCI (Nelson Complexity Index) and produces Euro-5 level fuel products. Feedstock will be imported sour crude with medium and heavy grade. The project will also include the development of a large scale catalytic cracker unit and a petrochemical complex.
The Tuban refinery will be able to accommodate very large crude carrier (VLCC) with dead weight of up to 300,000 tons.
Editing by Reiner Simanjuntak