JAKARTA (RambuEnergy)– Pertamina, the state-owned diversified energy company, through its subsidiary Kilang Pertamina Internasional and Russia’s Rosneft Oil Company through its affiliate Petrol Complex PTE LTD have officially set up joint venture company, called Pertamina Rosneft Pengolahan dan Petrokimia (PRPP).
The JV firm will develop and operate the New Grass Root Refinery and Petrochemical Complex (NGRR) in Tuban, East Java.
Pertamina and Rosneft have agreed on the composition of the Joint Venture Company (PRPP), in which Pertamina holds 55% and and Rosneft 45%.
The JV firm will be headed by Amir H. Siagian as president director, while Alexander Dmitriev and Bambang Sembodo will hold positions as directors.
The Tuban refinery is designed to have a processing capacity of 300,000 barrels of crude.
Achmad Fathoni Mahmud, the Director of Kilang Pertamina said that the NGRR Tuban project will give enormous social and economic benefit to the nation and to the country in the future.
This project will improve our independence and energy security by increasing the national fuel production with Euro V quality, and producing raw petrochemical products,” he said.
He added that the NGRR Tuban Mega Project will also generate employment opportunities with estimated size of 20.000-40.000 manpower during the development project and about 2.000 once the refinery operation commences.
The estimate fuel product that will be produced by NGRR Tuban is 80,000 barrels of gasoline, 99,000 barrels of diesel, and 26,000 barrels of jet fuel.
For petrochemical products, the refinery will produce an estimate of 1.3 million tons per annum (mmtpa) of polypropylene, 0.65 mmtpa of polyethylene, 0.5 mmtpa of styrene and 1.3 mmtpa of paraxylene. (*)