The subsidiary of PT Pertamina, PT Kilang Pertamina Internasional (KPI), and the Rosneft Oil Company affiliate, Petrol Complex PTE LTD signed the deed of establishment of a joint venture. The company, PT Pertamina Rosneft Processing and Petrochemical (PRPP) will build and operate a new oil refinery integrated with the Petrochemical Complex (New Grass Root Refinery and Petrochemical / NGRR) in Tuban Regency, East Java.
KPI Director Achmad Fathoni Mahmud said Pertamina-Rosneft had agreed on a 55 percent stake in the joint venture company PRPP for Pertamina and the remaining 45 percent for Rosneft. This is in line with the planned development of Tuban NGRR with a capacity of 300 thousand barrels per day with a total investment value of up to 15 billion US dollars.
According to him, the Tuban NGRR project will provide great economic and social benefits for the nation and the country in the future.
"This project will increase energy independence and resilience by increasing the production of national fuel oil quality Euro V. Refinery will also produce new Petrochemical products," he said.
Achmad Fathoni added that the construction of the Tuban NGRR mega project is estimated to require 20 thousand-40 thousand workers and about 2,000 people after the operation. According to him, the project will also have a positive impact in the form of tax for government and national and regional society.
The estimated fuel product that will be generated by Tuban NGRR is gasoline at 80 thousand barrels per day, 99 thousand barrels of diesel per day, and avtur 26 thousand barrels per day. Meanwhile, for new products, Petrokimia is 1.3 million tons of polypropylene per year, polyethylene 0.65 million tons per year, 0.5 million tons of styrene per year, and paraksilen 1.3 million tons per year.
The Board of Directors of PT Pertamina Rosneft Petrokimia Processing consists of Amir H Siagian as President Director and Alexander Dmitriev and Bambang Sembodo as directors.
Meanwhile, Deputy of Investment Coordination (BKPM) Lestari Indah explained that BKPM strongly supports the establishment of an Indonesian legal entity on behalf of PT PRPP between Pertamina and Rosneft.
"The establishment of PT PRPP in the oil refinery business with planned employment of up to 40 thousand is the implementation of the National Strategic Project which is expected to balance the demand-supply of oil and gas supply, thus giving a positive impact on Indonesia's economic growth," Lestari explained.
Republika, Page-13, Wednesday, Nov 29, 2017
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