Rosneft, Pertamina set up JV for Tuban refinery project
Rosneft and Indonesian state-owned oil and gas company Pertamina completed the establishment of the joint venture for the development of Tuban grass root refinery and petrochemical complex (TGRR) in Tuban in the East Java province of Indonesia.
The joint venture company (JV) PT Pertamina Rosneft Pengolahan dan Petrokimia (Indonesia) was established in accordance with the joint venture agreement (JVA) signed in October 2016. The JVA envisages the following participants shares in the JV: Rosneft – 45%, Pertamina – 55% and sets out the JV's governance principles.
Rosneft and Pertamina conducted the project feasibility study and moved to basic engineering and design (BED) of TGRR. The attractive market conditions of Indonesia and the expected consumption growth enabled the working group of Rosneft and Pertamina to develop a competitive concept of the new refinery and petrochemical complex. The parties confirmed possibility of arranging project financing after bankability study performed with the international financial institutions.
The planned refining capacity is 15 MMtpy and the targeted capacity of the petrochemical complex is over 1 MMtpy of ethylene and 1.3 MMtpy of aromatics. The feedstock for TGRR will be medium and heavy sulfur crude oil grades. The crude oil terminal will be able to accommodate VLCCs of up to 300 Mt.
TGRR is an important part of Rosneft strategy targeting growth in Asia-Pacific market of refined products.
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