Indonesia and Rosneft partner for $24 B Java oil refinery

Rosneft will parnter with Indonesia to contribute $24 B on a greenfield refinery in East Java province, according to Global Construction Review.

The refinery will have 14 refining units for vehicle fuels as well as seven units for petrochemicals. The purpose is to construct a facility which can process heavy crude oil and high sulfur crude oil.

Per the publication, "Kilang Pertamina International (KPI), Pertamina’s refining subsidiary, set up a joint venture with Rosneft in 2016 to develop the project, but the pandemic delayed work and the engineering design was not finalised until August this year. That work was done by Spanish contractor Tecnicas Reunidas.

The scheme is expected to break ground in the third quarter of next year, with completion due in 2027. Pertamina will hold a 55% stake in the asset and Rosneft 45%."

The hope is to secure a contractor for an EPC and to increase capacity by 300,000 bpd to 1.15 MM bpd by 2024.