Design Process Reaches 91%, Tuban GRR Refinery Project Is Halfway Through

Tuban, April 19^th, 2022 - The National Strategic Project (PSN) of the Tuban Grass Root Refinery (GRR) refinery entered the finalization of the detailed design or Front End Engineering Design (FEED), which is equivalent to 49% of the oil refinery construction process. The FEED process is expected to be completed in May 2022.

PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP) as the implementer of the Tuban GRR project reported the progress of FEED as of March 31, 2022 reaching 90.99%, or faster than the target of 87.84%. This process is expected to result in an extra-complex design design to process crude oil into international standard fuel and petrochemical products.

The Company has been carrying out FEED activities since March 16, 2021 in collaboration with Tecnicas Reunidas SA (TRSA), a company based in Spain and engaged in Engineering, Procurement and Construction (EPC) as an engineering design contractor. In the FEED phase, TRSA develops the design of open-art units, off-site facilities and utilities, overall design supervision and integration, including design data from technology licensors (technology license holders).

"The achievement that exceeds this target is thanks to the collaboration of the PRPP Engineering Team with TRSA as a solid FEED contractor to ensure the completion of FEED. Not to forget the support of other functions and PRPP management for the work on this FEED", said Eriyadi, Director of PRPP Development, in an official statement on Friday (8/4/2022).

Simultaneously, cooperation with strategic partners continues to be maintained, among others, with PT Perusahaan Listrik Negara (PLN) for the provision of electricity at the construction stage and Kris Energi for the provision of gas. Likewise with stakeholders for the provision of infrastructure such as the Demak–Tuban toll road, reactivation of the Babat–Tuban railway line, tax incentive support, and other support needed to support the Tuban GRR refinery.

The land clearing process organized by the Pertamina GRR Tuban team is running simultaneously and has now entered phase IV. In this phase, Pertamina GRR Tuban designed a target of clearing an area of 221.17 hectares (ha), including the creation of temporary drainage and the installation of fences. The completion of land clearing phase IV as of March 31, 2022 is 49.01%, or faster than the target (45.38%) involving more than 330 residents around the project area. In total, the land clearing process of GRR Tuban from phase I to IV has involved 1,220 workers, with 99% of them are residents around the project area.

During the process, the company maintains Occupational Health and safety (K3) principle in the project environment. In the first quarter of 2022, the achievement of safe working hours for the project, both in the Pertamina GRR Tuban team in PRPP reached 403,496 hours. Cumulatively, the number of working hours survived by the Tuban GRR project since the land clearing ran reached 3,536,663 hours.

Eriyadi added that after FEED is completed, the company will enter the Final Investment Decision (FID) process at the shareholder level, to ensure the sustainability of the GRR Tuban project. Also, the Engineering, Procurement, and Construction (EPC) phase is expected to begin in the third quarter of 2023. "Despite the dynamics of the current global situation that affects the oil and gas industry in general, PRPP together with the Pertamina GRR Tuban Project team remain committed to continuing and completing the mandate that has been entrusted to us. Please pray and support all parties so that every stage we plan can run well and smoothly including the Final Investment Decision (FID) process and the start of the EPC phase later in 2023", concluded Eriyadi.