Rosneft and Pertamina in Petchems JV
Russian oil company Rosneft and Indonesian energy group Pertamina have formed a joint venture to build a grassroots refinery and petrochemical complex in Tuban, East Java, Indonesia. The move is the next step between the partners following the signing of a framework cooperation agreement in May 2016.
The jv, to be called PT Pertamina Rosneft Pengolahan dan Petrokimia Indonesia, will be owned to 55% by Pertamina and 45% by Rosneft. The project comprises a refinery designed to process 15 million t/y of medium and heavy sulfur crude oil grades. The petrochemicals complex is planned to produce more than 1 million t/y of ethylene and 1.3 million t/y of aromatics.
After conducting feasibility study, the companies said they have now moved to basic engineering and design.
Moscow-based Rosneft said the project is an important part of its strategy targeting growth in Asia-Pacific, where Indonesia is one of the most promising and rapidly growing economies. It noted that the country is currently a net importer of motor fuels and petrochemicals.
In August, the Russian firm bought Indian refinery group Essar Oil for nearly $13 billion, marking its first step into Asia’s refining sector. The deal includes Essar’s oil refinery in Vadinar, Gujarat, the second largest refinery in India with a capacity of 20 million t/y. Rosneft said the refinery has significant prospects for expansion and petrochemicals development.