About PRPP
Establishment PT Pertamina Rosneft Pengolahan dan Petrokimia
Indonesia in the last 10 (ten) years has faced an energy crisis, especially a crisis in the ability to provide fuel oil caused by an increase in fuel demand from year to year which is not balanced with domestic production capabilities.
Fuel refineries in Indonesia operated by PT Pertamina (Persero) (currently by PT Kilang Pertamina Internasional as Sub Holding Refining & Petrochemical) in 2015 produced a total of 0.65 million barrels per day where in the same period the total domestic demand reached more than 1.18 million barrels per day. It is predicted that in 2030, domestic fuel demand will increase to 1.65 million barrels per day.
In 2030, it is predicted that domestic fuel demand will increase to 1.65 million barrels per day. In this regard, President of Republic Indonesia through Nawacita declared energy sovereignty through the construction of a new fuel refinery in Indonesia. In addition, this is reaffirmed through the Company's Long-Term Plan of PT Pertamina (Persero) in 2030 where the revitalization of existing fuel refineries and also the construction of new refineries are one of priorities to be realized immediately.
In response to this, PT Pertamina (Persero) as a State Owned Enterprise (SOE) in the energy sector, began to make big plans for the construction of a grass root refinery or a new refinery built from scratch. On September 7, 2015, the Director of Processing PT Pertamina (Persero) began the initiation of a plan to build a new refinery in Tuban, East Java through a letter to the Ministry of SOE’s. Tuban was chosen by considering various factors, both aspects of geography and potential in the economic field, especially in East Java. Since 2016, a joint venture has been formed between PT Pertamina (Persero) and the Russian international oil and gas company, Rosneft through the Joint Venture scheme.
On November 28 2017, at the Investment Coordinating Board (BKPM) office, the partnership between PT Pertamina (Persero) and Rosneft was realized through the establishment of the Joint Venture company PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP). PT Pertamina (Persero) through its subsidiary PT Kilang Pertamina Internasional owns 55% of PRPP's shares while the remaining 45% is controlled by Rosneft's affiliate in Singapore, namely Rosneft Singapore Pte. Ltd. (formerly Petrol Complex Pte. Ltd).
After going through a series of studies and dynamics, the East Java Provincial Government finally issued the Governor of East Java Decree No. 188/23/KPTS/013/2019 concerning Determination of Land Acquisition Locations for the Development of Oil Refinery in Jenu District, Tuban Regency, East Java Province, dated January 10, 2019, which has confirmed a land area of approximately 840 hectares in 4 Villages, Jenu District, Tuban Regency, as the location for the construction of the GRR Tuban Refinery.
The GRR Tuban Project has also been approved by the Indonesian government as one of the National Strategic Projects through Presidential Regulation Number 109 of 2020 concerning the Third Amendment to Presidential Regulation Number 3 of 2016 concerning Acceleration of Implementation of National Strategic Projects.
The GRR Tuban project phase by PRPP has been started since 2016 which was marked by Bankable Feasibility Study activities. In 2019, PRPP collaborated with Tecnicas Reunidas S.A (Tecnicas Reunidas) as a GED drafting contractor based in Madrid, Spain to start the General Engineering Design phase for PRPP.
GED work consists of 2 (two) stages, namely Basic Engineering Design (BED) and Front End Engineering Design (FEED). The BED phase was completed on March 31, 2021 and immediately continued with the FEED stage which ended on May 31, 2022.
