Tuban's Refinery Megaproject's Gloomy Prospect

The Indonesian government is still seeking a way forward for the Tuban Grass Root Refinery (GRR Tuban) mega-project to proceed. The US$13.5 billion oil refinery was supposed to be constructed by PT Pertamina (Persero) in collaboration with the Russian company Rosneft Singapore Pte Ltd. According to Arifin Tasrif, Energy and Mineral Resources Minister, the project is in a difficult position due to Rosneft's entanglement in sanctions imposed by Western countries over Russia's invasion of Ukraine. "We're working on it," he said on Mar. 25.

Moshe Rizal, Head of the Investment Committee of the Oil and Gas Companies Association (Aspermigas), stated that the search for new investors needs to be conducted. "If Russia officially withdraws, there must be other investors to replace them because this project deserves to be continued," he said on Mar. 27. Rizal added that Indonesia should be proactive in seeking clarity, especially since many investors have remained silent and have not provided clarity on whether they will indeed continue upstream oil and gas projects in the country or decide to leave.