The progress of land acquisition for the Tuban oil refinery project undertaken by PT Pertamina has reached 92 percent, after being stalled since a few years ago. A joint venture agreement to develop a new refinery in Tuban in East Java has been signed by Indonesia’s Pertamina and Russia’s Rosneft Oil Co.
To build a new refinery and petrochemical plant with a production capacity of 300,000 bpd, the joint venture will invest $15 billion. While Pertamina will own the majority stake of 55 percent, Rosneft will receive a 45 percent stake in the joint venture.
The targeted refining capacity is 15 million tonnes per year. The planned capacity of the petrochemical complex is 1.3 million tonnes per year of aromatics and more than 1 million tonnes per year of ethylene. The refinery is expected to be operational within the next 6 years.
