JAKARTA, RAKYAT NEWS – The Minister of Energy and Mineral Resources, Bahlil Lahadalia, has opened the possibility of seeking new investors for the Tuban grassroots refinery project if Russian company Rosneft Oil Co PJSC does not provide clarity on the development of the project.

Currently, the project is being managed by PT Kilang Pertamina Internasional (KPI) in partnership with Rosneft. The Ministry of Energy and Mineral Resources (ESDM) previously indicated that the project was facing geopolitical challenges.

“We may need to look for new investors because we cannot wait indefinitely. We need a timeline,” Bahlil said during a meeting at his office in Jakarta on Thursday, November 14.

The refinery project, which has an investment value of USD 3.8 billion (approximately IDR 54.2 trillion), is designed to process 300,000 barrels of oil per day and is expected to produce 30 million liters of fuel per day, including gasoline and diesel.

However, Bahlil could not confirm a specific deadline for deciding whether to find a new partner for KPI, as discussions with Pertamina are ongoing. “Pertamina is the one handling communications and assessing whether Rosneft is seriously committed,” he added.

The ESDM Ministry aims to complete the Final Investment Decision (FID) for the Tuban refinery project by the end of this month. “The FID is targeted to be finalized in November 2024, based on a report from Pertamina two days ago,” said Dadan Kusdiana, the Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources.

Bahlil also mentioned some challenges in the Tuban refinery project, which he had helped address when he served as Minister of Investment. These challenges included land acquisition, incentives, and licensing. Similarly, KPI confirmed that the project is still in the process of preparing the FID, continuing to work with the Russian oil company Rosneft.