Rosneft, Pertamina JV ink Tuban refinery design contract with Tecnicas Reunidas

Rosneft, Pertamina JV ink Tuban refinery design contract with Tecnicas Reunidas
Published: 3 November 2019 - 4 a.m.
By: Martin Menachery
PT Pertamina Rosneft Pengolahan dan Petrokimia, joint venture of Rosneft Oil Company and Indonesian state oil and gas company Pertamina, signed a contract with Spanish Tecnicas Reunidas to carry out the basic engineering design (BED) and the front-end engineering design (FEED) project for the construction of oil refinery and petrochemical complex in Tuban, East Java, Indonesia.

PT Pertamina Rosneft Pengolahan dan Petrokimia was established according to the agreement signed in October 2016. Rosneft owns a 45% stake, Pertamina 55%.

The favourable market environment and the consumption growth prospects in Indonesia allowed the joint working group of Rosneft and Pertamina to develop a competitive conception of refinery/petrochemical complex. The plant is expected to become one of the most high-tech in the world (Nelson’s complexity index 13.1). Design capacity of primary processing is planned at the level of up to 15mmta, of the petrochemical complex, more than 1mmta for ethylene and 1.3mmta for aromatic hydrocarbons.

The project will receive the full support of the Indonesian authorities, both in terms of the necessary benefits and the provision of the infrastructure. Commissioning of the refinery/petrochemical complex is planned for the next five years. Due to the implementation of the project, a large new petrochemical cluster in the region of the city of Tuban can be created in the future.

The project is a significant element of Rosneft’s strategy to strengthen its presence in the high-margin market for petroleum-based products in the Asia-Pacific Region. The construction of the plant will strengthen the company’s position in the Indonesian consumer market and confirm its status as a reliable partner in oil and gas production and refining projects in the region.

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