Indonesia’s Pertamina may seek new Tuban refinery partner due to Rosneft uncertainty

INDONESIA may seek a new partner for state-run Pertamina’s refinery project in Tuban, East Java, due to uncertainty over its partnership with Russia’s Rosneft, the chief economic minister has said.

The uncertainty was over geopolitical-related problems making it difficult for Russia’s largest oil producer to continue, Airlangga Hartarto told reporters on Thursday (Oct 5).

He did not specify whether or not Rosneft had signalled it would quit the project. Rosneft could not immediately be reached for comment out of office hours in Russia.

The joint venture project covers the building of a refinery and petrochemical plant, with Pertamina as the majority stakeholder.

“Because Russia is facing a blockade, economic and geopolitical problems, it might be difficult to continue, we will find other partner,” Airlangga said.

Pertamina said last month it aimed to reach a final investment decision soon for the Tuban refinery.

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The plant, which produces products such as paraxylene, benzene, and light naphtha, is expected to have a capacity of 300,000 tonnes annually. REUTERS