Pertamina Joins Hands with Rosneft to Develop Tuban Refinery
6 October 2016 08:10 WIB
TEMPO.CO, Jakarta - State-owned oil and gas company PT Pertamina agrees to establish a joint venture with Russian energy company Rosneft to develop grass root refineries (GRR) in Tuban, East Java.
PT Pertamina president director Dwi Soetjipto, however, said the two companies have yet to agree on some issues. “Some are not agreed yet, they depend on the outcome of the bankable feasibility study,” he said Wednesday at the Parliamentary complex in Jakarta.
The bankable feasibility study is expected to complete by February 2017. Pertamina processing director Achmad Hardadi said they will go on to conduct Basic Engineering Design, followed by Front End Design. “Before making a final investment decision,” he said.
Pertamina is tasked with developing Tuban refinery. It screened 400 companies in the tender process, selecting 36 qualified ones, nine of which followed it through.
Pertamina narrowed down the choice into five companies, namely Saudi Aramco, Rosneft, China Petroleum and Chemical Corporation Ltd (Sinopec), Kuwait Petroleum International and a consortium involving PTT Global Chemical Plc and Thai Oil Ltd. “We narrowed it down until Rosneft emerged [as the winning bidder],” Hardadi said.
Tuban refinery project will cost US$12 billion to US$14 billion. It will be completed by 2021 with a capacity of 300 barrels per day (bpd).
Hardadi said Pertamina and Rosneft are open to supplying oil not only from Russia but also from other countries. “The main thing is to achieve the maximum [refinery] margin,” he said.
VINDRY FLORENTIN
