Indonesia’s Pertamina may seek new Tuban refinery partner due to Rosneft uncertainty

JAKARTA (Reuters) -Indonesia may seek a new partner for state-run Pertamina’s refinery project in Tuban, East Java, due to uncertainty over its partnership with Russia’s Rosneft, the chief economic minister has said.

The uncertainty was over geopolitical-related problems making it difficult for Russia’s largest oil producer to continue, Airlangga Hartarto told reporters on Thursday.

He did not specify whether or not Rosneft had signalled it would quit the project. Rosneft could not immediately be reached for comment out of office hours in Russia.

The joint venture project covers the building of a refinery and petrochemical plant, with Pertamina as the majority stakeholder.

“Because Russia is facing a blockade, economic and geopolitical problems, it might be difficult to continue, we will find other partner,” Airlangga said.

Pertamina is still developing the project with Rosneft, corporate secretary Hermansyah Y. Nasroen said late on Friday, adding the company is preparing a final investment decision.

The plant, which will produce fuel and petrochemical products, is expected to have a refining capacity of 300,000 barrels per day.

(Reporting by Ananda Teresia, Fransiska Nangoy, Bernadette Christina; Editing by Martin Petty and Mark Potter)