Rosneft's Sustainability Fate At Tuban Refinery Depends On FID's Decision

The (intermediate) refinery

JAKARTA - Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji revealed that the continuation of the fate of Russian investor Rosneft in the New Grass Root Refinery and Petrochemical (NGRR) Tuban Refinery project is still waiting for the final investment decision (FID) in March 2024.

"From there (the FID) we have just seen that the cooperation will be continued or not," said Tutuka when met at the Ministry of Energy and Mineral Resources Building, Monday, February 12.

Regarding the candidate to replace Rosneft in NGRR Tuban, Tutuka said this was an internal decision of the company, namely PT Kilang Pertamina Internasional (KPI).

"It's still at their internal level. It's still far from saying there is no (replacement)," continued Tutuka.

Meanwhile, when confirmed, PT KPI Corporate Secretary Hermansyah Y. Nasroen said that currently his party is still carrying out the FID process.

He also emphasized that KPI through its subsidiary was still cooperating with Rosneft in carrying out the Tuban GRR project.

"Final Investment Decision (FID) is currently still in progress. Pertamina through its subsidiary PT KPI, namely PT Pertamina Rosneft Pengolahan and Petrokimia (PRPP) is currently still with Rosneft for the implementation of the Tuban GRR project," Hermansyah told VOI, Monday, February 12.

Previously, Rosneft faced international sanctions due to the geopolitical war between Russia and Ukraine, making it difficult to provide funding for the national strategic project.

This Tuban Refinery project is a project owned by PT Pertamina (Persero) which holds 55 percent of shares and Rosneft holds 45 percent of shares.