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Work on Tuban refinery with Rosneft continues: Govt
State-owned oil and gas company Pertamina will continue the development of the Tuban Grass Root Refinery (GRR) in partnership with Russia’s Rosneft.
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Pertamina's Balikpapan refinery is pictured on Jan. 8, 2022. (Pertamina/Pertamina)
T
he government has said state-owned oil and gas company Pertamina is continuing work on the development of an oil refinery with Rosneft despite earlier reports about challenges faced by the Russian partner.
Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo told reporters on Monday that while the Tuban Grass Root Refinery (GRR) project was still being discussed, Rosneft was still Pertamina's partner for the 80 kilobarrel-per-day gasoline project estimated to cost US$13.5 billion, Bisnis reported.
“We're still in discussion about it because, with Russia's current geopolitical situation, there are bound to be obstacles. The solution is still under discussion. Maybe we'll find a solution in the next six months,” Kartika said.
Kartika emphasized that the government and Pertamina had not decided to seek a new partner but the geopolitical context would undoubtedly be a factor in future decisions.
“We will look at the geopolitical situation and the financial strength for the investment needs,” Kartika said.
Tempo, citing PT Kilang Pertamina Internasional (KPI) corporate secretary Hermansyah Y. Nasroen, reported that Pertamina was continuing its partnership with Rosneft on the project.
“Currently, the Tuban Grass Root Refinery is still in the process of preparing the final investment decision [FID] document. Other preparations are also underway for the selection of an engineering, procurement and construction [EPC] contractor for the Tuban Grass Root Refinery project to support the construction phase,” he said on Saturday.
