Secretary General of the Ministry of Energy and Mineral Resources (ESDM/EMR) Dadan Kusdiana met with representatives of Rosneft Singapore Pte Ltd in secret to discuss the follow-up to the final investment decision (FID) of the Grass Root Refinery (GRR) Tuban project which is still unclear when it will start or wait for Russia to win the dispute with Ukraine in 5 years in 2030.
Russia is still committed to providing funding of IDR 238.25 trillion, or around US$ 14,890,625,000 billion with an exchange rate of IDR 16,000/dollar, but is it capable of realizing this super expensive project, considering that Russia still needs a lot of funds to defeat Ukraine which has not been beaten for a long time until now which requires a cost of US$ 300 million per day to "fight" with Ukraine.
GRR Tuban was deliberately designed to be very-very-very Luxury and its design was inspired by the Seven Art Academy's Behance website, of course, it requires super Jumbo costs must be provided by Indonesia and Russia and it is impossible to complete in the next 10 years according to calculations. Not to mention 4 more years in 2029 the Presidential election in Indonesia again and there will definitely be political bargaining to slow down the super Jumbo and vital project to realize Indonesia's Energy security.
The Indonesian government is still questioning Rosneft's FID promises from ancient times to continue the GRR project, the continuation of which is unclear after Russia's oil and gas business was sanctioned by Nato countries due to Russia's invasion of Ukraine in February 2022 until now has not shown any signs of ending soon, even the escalation has increased after Ukrainian President Zelensky quarreled with Donald Trump and Ukraine bombed the Russian oil refinery last night.
The final investment decision (FID) for the Grass Root Refinery (GRR) Tuban project will not be completed by Rosneft within 10 years, even though this project was started in 2016 since President Jokowi was still in office until President Jokowi's 10-year leadership ended until the President changed again, there is still no certainty and 10 years were wasted due to the interference of political interests designed so that Indonesia continues to import crude oil forever so that it cannot realize National Energy Independence due to the interference of political elites, and the God Father of the rent-seeking oil mafia in Indonesia with a profit of IDR 300 billion per day or US$ 18,750,000/day that cannot be released just like that by people from political parties.
Rosneft Russia's FID decision on the GRR Tuban project was very slow to be recognized by PT Kilang Pertamina Internasional (KPI). The FID process did miss the finalization target set by the Ministry of Energy and Mineral Resources/EMR in November 2024. The FID process was indeed late or deliberately slowed down, the public also does not know for sure.
The GRR Tuban refinery has also been approved by the Indonesian government as one of the National Strategic Projects through Presidential Regulation Number 109 of 2020 concerning the Third Amendment to Presidential Regulation Number 3 of 2016 concerning the Acceleration of the Implementation of National Strategic Projects.
The GRR Tuban project phase by PRPP started in 2016, 9 years ago. In 2019, PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP) collaborated with Tecnicas Reunidas S.A (Tecnicas Reunidas) as the GED contractor based in Madrid, Spain, to start the General Engineering Design phase for PRPP. The GED work consists of 2 (two) stages, namely Basic Engineering Design (BED) and Front End Engineering Design (FEED).
The BED stage was completed on March 31, 2021, and was immediately continued with the FEED stage which ended on May 31, 2022. However, after 9 years in vain, there are no signs of continuing, even though it has just started with the Pre-Bid Meeting for the GRR Tuban Procurement which has determined 25 prospective contractors who have registered to participate in a total of 7 EPC procurement tender packages for the GRR Tuban Project with the initial site development work being one of the 9 GRR Tuban Project work packages and is a critical job and the main objective of the project as a whole.
It has become a habit for officials in Indonesia to waste valuable time so that super-important projects do not start immediately before they get a large fee commitment for the personal interests of their families and their parties.
The Tuban Gross Root Refinery (GRR) project is very slow because the refinery which was designed with a capacity of 300,000 barrels per day (BPD) started from the beginning of its construction process since 10 years ago, there has been no significant progress and it was in vain until the President changed. 10 years have passed and there have been "only" pre-bid meetings and no significant progress.
The two companies involved in the joint venture (JV) scheme of PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP) have been still calculating for a very long time regarding the Engineering, Procurement, and Construction (EPC) contract. In business, each company has its own calculations to get super Jombo profits. The calculation of the EPC tender is very long and late because the officials are not experts in calculating the economic calculus of the project, and there is an oil, and gas mafia that plays a role that was deliberately filled by and was recently arrested by the "Supreme Court" for being involved in corruption and bribery worth IDR 193.7 trillion or US$ 12.106.250.000 billion.
GRR Tuban will actually be made a National Strategic Project. Quoting the page of the Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), the project is designed to process crude oil up to 300,000 bpd and requires an investment of IDR 238.25 trillion, with Pertamina as the person in charge and the FID is planned to be completed this year, but it could also be delayed and late due to many interests. With such a large fund, is Russia able to complete this project, considering that this project will take another 10 years to be wasted, and again Russia gets Ukraine as a tough opponent supported by Western countries.
Let's just wait for the continuation of this project in the next 10 years in 2035 whether it is worth it or Zonk.
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