JAKARTA (RAMBUENERGY.com) – The Indonesian Energy and Mineral Resources Ministry plans to amend the scheme in developing the Bontang Grass Root Refinery (GRR) by tasking Pertamina to develop it and find a private investor partner.
Earlier, the government planned to adopt Public Private Partnership (PPP) in the developing the GRR refinery project. With the change of scheme, Pertamina will then have to find a private investor to develop the project.
“The scheme to develop the Bontang refinery is being discussed. If possible, Pertamina is given task to develop it. But no formal decision has been made yet,” Minister for Energy and Mineral Resources Minister Ignasius Jonan said on Wednesday.
The GRR Bontang project is designed to have capacity to produce 300,000 barrels of oil per day (bpd) and targeted to be completed in 2023.
Earlier on Tuesday, Pertamina Director Processing Megaproject and Petrochemical Rachmad Hardadi said the energy ministry has informed Pertamina about the change of scheme. He said Pertamina will move fast should the energy ministry appoint Pertamina to carry out the project without the involvment of the government, just like the case of GRR Tuban project.
Earlier, Pertamina tied up with Russia’s giant Rosneft in developing the GRR Tuban project. Both parties have set up a joint venture to realize the project development.
“We are now waiting for formal letter from the government. Once we receive the letter, will find a partner within three to four months,” Hardadi told reporters on the sideline of a press conference announcing Pertamina’s nine months financial results. (*)