Russia’s Rosneft and Indonesia’s Pertamina have agreed to perform a feasibility study to finance the new refining and petrochemical complex project Tuban in Jawa, Indonesia, and establish a joint venture for the project implementation
Earlier Rosneft led the competition for a share in the Tuban complex, launched by Pertamina. The final investment decision will be taken upon the results of the feasibility study, basic engineering design (BED) and front-end engineering design (FEED).
The design capacity of primary processing at the Tuban complex is 15 million tonnes per annum (tpa). It will run on imported medium and heavy grades of sulphurous crude. The project provides for the construction of a large fuel oil catalytic cracker and a petrochemical complex. The complex is assumed to be able to accommodate VLCC supertankers with deadweight of up to 300 thousand tonnes.
Rosneft and Pertamina will also explore the possibilities of joint projects in the area of crude and oil products supplies, logistics and infrastructure, the potential for Pertamina to enter in Rosneft's Upstream projects in Russia as an equity holder, and partnership in international joint projects for oil refining.
Indonesia is one of the most promising and rapidly growing economies of the region. The country is a net importer of motor fuels and petrochemicals. Implementation of the conditions of the signed agreement will enable Rosneft to expand its footprint on the Indonesian energy market and strengthen the status of the Russian Company as a reliable partner in oil and gas production and refining projects in the Asia-Pacific Region, as well as form a basis for development of upstream and downstream new joint projects in Russia and third countries.
