Pertamina, Indonesia’s state-owned energy company and Russia’s Rosneft Oil have established a JV for the development of refinery and petrochemical complex that will come up Tuban in East Java in Indonesia. The Joint Venture Company, PT Pertamina Rosneft Pengolahan dan Petrokimia (Indonesia), will invest US$ 15 billion in the new refinery and petrochemical complex.  

Pertamina, with 55% share of the company, will have a majority stake with the remaining 45% with Rosneft. The new plant will have a production capacity of 300,000 barrels per day.

The planned refining capacity is 15 mmpta (300 kbpd) and the targeted capacity of the petrochemical complex is over 1 mmtpa of ethylene and 1.3 mmtpa of aromatics. The feedstock for the plant will be medium and heavy sulfur crude oil grades. The crude oil terminal will be able to accommodate VLCCs of up to 300 thousand tonnes.

The two parties have also confirmed possibility of arranging project financing after bankability study performed with the international financial institutions.