Pertamina, Rosneft set up JV to build refinery

State-owned oil and gas firm PT Pertamina finally set up a joint venture company with Russia?s Rosneft Oil Company to build and operate an oil refinery integrated with petrochemical production facility (new grass root refinery and petrochemical/NGRR) in Tuban, East Java.

Pertamina through subsidiary PT Kilang Pertamina Internasional (KPI) and Rosneft through its affiliate Petrol Complex Pte Ltd signed on Tuesday in Jakarta the deed on the establishment of the JV company called PT Pertamina Rosneft Pegolahan dan Petrokima (PRPP).

KPI Director Achmad Fathoni Mahmud said in a statement that Pertamina holds 55 percent interest in the JV, while Rosneft 45 percent.

He said that the Tuban NGRR project will have capacity to process 300,000 bpd of crude oil with total investment requirement of Rp 15 billion.

Achmad said that the refinery facility will produce 80,000 bpd of gasoline, 90,000 bpd of automotive diesel, and 26,000 bpd of jet fuel. Petrochemical products to be produced include polypropylene at capacity of 1.3 million tons per year, polyethylene 0.65 mtpa, styrene 0.5 mtpa and Para xylene 1.3 mtpa. Pertamina previously said it hoped to complete the Tuban NGRR project in 2021.

The statement said that PRPP will be led by Amir H. Siagian as President Director, together with two directors, namely Alexander Dmitriev, and Bambang Sembodo.

Editing by Reiner Simanjuntak