In the spirit of "No Point of Return" Pertamina Rosneft signed an agreement with a number of Pertamina Group companies

Jakarta, 20 April 2022 - PT Pertamina Rosneft Pengolahan dan Petrokimia (Pertamina Rosneft), as a joint venture company between PT Pertamina (Persero) and oil and gas company Rosneft, as the party mandated to realize national energy independence through the construction and operation of GRR Tuban refinery, continue to be committed to continuing the preparation process for the construction of refinery through cooperation initiatives with a number of companies within Pertamina Group to support the construction of GRR Tuban.

This historic moment was realized on Monday, April 18, 2022, at Grha Pertamina, Central Jakarta, Pertamina Rosneft signed an agreement with synergy partners within the Pertamina Group to cooperate in the provision and construction of supporting facilities for GRR Tuban project. Witnessed directly by the President Director of PT Pertamina (Persero) Nicke Widyawati, Pertamina Rosneft, represented by the President Director, Reizaldi Gustino and Pavel Vagero, Director of Finance and General Affairs, signed a Head of Agreement (HoA) or Principals of Agreement with fellow Pertamina Group companies.

The companies in the Pertamina Group are PT Pertamina Gas Negara, Tbk related to the provision of natural gas and gas infrastructure; PT Pertamina International Shipping regarding the provision of sea transportation services, port facilities, and port services; Pertamina Power Indonesia regarding the provision of electricity, steam, and water; as well as cooperation with PT Pertamina Patra Niaga regarding offtake of fuel products and marketing of petrochemical products from GRR Tuban.

"Despite the development of current global situation which is quite influential on the Pertamina Group, we still ensure "No Point of Return" to continue realize the construction of GRR Tuban refinery which is projected to operate at the end of 2027," said Reizaldi Gustino in his official report delivered at the event.

Reizaldi added that the signing of this HoA is a form of Pertamina Rosneft's commitment to continue the construction of GRR Tuban refinery with optimal investment and economic value. "The signing of this HoA can be a real step in the synergy of Pertamina Group which can later have a positive impact in terms of Capex and Opex optimization, environmental impact, and maintaining the reliability of GRR Tuban refinery," concluded Reizaldi

President Director of Kilang Pertamina Internasional, Taufik Aditiyawarman, Sub Holding Refinery & Petrochemical as well as Pertamina Rosneft shareholders, on a separate occasion welcomed the signing of this HoA as a strategic Pertamina Group synergy for all parties involved. "We hope that this HoA can be followed up as soon as possible and mutual support between Subholdings in Pertamina Oil and Gas Holding in accelerating the on-track completion of GRR Tuban project, so as to provide benefits for national energy and create a multiplier effect for the national economy," said Taufik.

GRR Tuban Project will process crude of 300 thousand barrels per day and will produce fuel products of 225 thousand barrels per day as well as liquid and solid petrochemical products with a production capacity of 4.7 million tons per year. This synergy is a strategic collaboration to optimize the potential of GRR Tuban through independent management by the Pertamina Group. Through the signing of this HoA, the total potential synergies that can be obtained in the form of profit and efficiency reached USD 3.56 billion.

This was confirmed by Nicke Widyawati, President Director of PT Pertamina (Persero) in his direction on this activity. Nicke conveyed the importance of synergy between Pertamina Group companies, especially to realize Pertamina as a global champion in the oil and gas industry. “Integration between Pertamina Group is strategic for us because it is a tangible manifestation in optimizing Capex. In addition, we also hope that this synergy must be mutually beneficial for all parties where the ultimate goal is to increase the profitability of Pertamina as a group".

On the same occasion, Nicke again reminded the important role of GRR Tuban as a fuel refinery integrated with the petrochemical industry. The current condition of the national petrochemical industry is still dependent on imported supplies from abroad and with the presence of petrochemical products produced by the GRR Tuban refinery, it is potential to realize the independence of national petrochemical products. GRR Tuban through its petrochemical industry will be a strategic project and is expected to be able to contribute optimally in balancing Indonesia's foreign trade balance through the production of petrochemical products which have been dependent on supplies from abroad," nicke concluded.