Rosneft, Pertamina JV may start building refinery on Java by end of 2017

VIENNA, November 29. /TASS/. The joint venture of Russia’s Rosneft and Indonesian Pertamina may start laying the foundation of Tuban refinery and petrochemical facility on the Java Island already at the turn of 2017 but the project is still at the bankability study phase, Vice President for Corporate Communication at Pertamina Wianda Pusponegoro told TASS on Tuesday.

"Now this process is still at a bankability study [phase] and afterwards we will see if we can start groundbreaking in late 2017 or in 2018," Pusponegoro said.

Total investments into this project will amount to $12-14 bln, she said. Pertamina holds 55% in the project and Rosneft’s stake is 45%, Pusponegoro added. 

The goals 

Pertamina expects to reach the production level of at least 30,000 barrels of oil equivalent per day in the North Chayvo joint project with Russia’s Rosneft in offshore Sakhalin. 

"We need to have really good review on the future, what we want to do on those blocks. And especially we have a target that minimum we take home is around 30 thousand barrels of oil equivalent per day," Pusponegoro said.

Negotiations on the stake acquisition with Rosneft are still in progress, Pertamina vice president said. "We are still in the discussion with them [Rosneft - TASS]," she added.

The Chayvo Field North Tip license area is situated in the shallow portion of offshore Sakhalin. The oil and gas field is planned to reach the design oil production rate in 2017.

It was reported earlier the design capacity of Tuban facility’s primary distillation stage is planned at the level of 15 mln tonnes a year. The project contemplates construction of a high-capacity fuel oil catalytic cracker and a petrochemical facility.

Rosneft and Pertamina signed a master cooperation agreement on May 26, 2016.