Tuban GRR has Completed Land Acquisition, Says Oil & Gas DG

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 165.Pers/04/SJI/2021

Date: 25 May 2021

Tuban GRR has Completed Land Acquisition, Says Oil & Gas DG

The construction of Tuban Grass Root Refinery (GRR) in East Java has completed the land acquisition process, said Director General of Oil and Gas of the Indonesian Ministry of Energy and Mineral Resources (EMR), Tutuka Ariadji, in a hearing (RDP) with Commission VII of House of Representatives (DPR) on Monday (24/5).

Tutuka explained that after the land acquisition was 100% complete, land clearing stage 3 is currently being carried out. Until the end of April 2021, the process had completed 11.6%, faster than the original completion plan of 2.74%.

"In-principle sanction of Forest Area Swap (Tukar Menukar Kawasan Hutan, TMKH) for acquisition of Perhutani's land had also been issued," added Tutuka.

In terms of engineering work, Basic Engineering Design (BED) had also been completed. Currently, Front End Engineering Design (FEED) is being carried out, and as of April 30, 2021, it reached 0.6%. The FEED work is targeted for completion in January 2022.

"Another development relates to land reclamation, where the process of preparing the tender for reclamation works had started in the fourth week of April 2021," said Tutuka.

Tuban GRR is a very strategic project because an oil refinery will be built to integrate with a petrochemical plant. Tuban GRR will be able to process 300,000 barrels of crude oil per day and produce petrochemicals of 4,250 kilo tons per annum (ktpa).

Additionnally, Tuban GRR will also produce fuels with Euro V quality (environmentally friendly fuels). It will produce 80,000 barrels of gasoline and 98,000 barrels of diesel per day. The total capex of the project is planned at US$16 billion.

"The Tuban GRR project will absorb a workforce of 20,000 people during construction and 2,500 during operation," Tutuka concluded.

To support the Tuban GRR project, the government assigned state energy company PT Pertamina (Persero), as set out in Decision of Minister of EMR Number 807 of 2016 on Assignment to PT Pertamina (Persero) in the Construction and Operation of an Oil Refinery in Tuban, East Java. In addition, the government has provided domestic gas allocation and facilitated the licenses and permits needed by PT Pertamina.

The GRR development and the increase of refinery capacity (Refinery Development Master Plan, RDMP) are just a few efforts made by the Indonesian government to improve the country's national energy security. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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