Indonesian Government-backed Pertamina could find a new partner for the Tuban, East Java-based oil refinery project, reported Reuters, citing Chief Economic Minister Airlangga Hartarto.
The project is being developed by Pertamina and Russian company Rosneft.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Hartarto, the uncertainty over geopolitical issues has made it challenging for the Russian oil producer to continue.
Following Moscow’s decision to invade Ukraine, Russian energy companies were targeted by the US and its allies with sanctions, making it hard for them to operate.
He did not mention whether Rosneft had given any indication that it might quit the project.
Rosneft was not immediately available for comment outside of Russian business hours, the publication said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe joint venture project, in which Pertamina is the primary shareholder, includes the construction of a refinery and petrochemical facility.
“Because Russia is facing a blockade, economic and geopolitical problems, it might be difficult to continue, we will find other partner,” Airlangga was quoted as saying.
The facility, which will produce fuel and petrochemical products, is expected to have the capacity to refine 300,000 barrels per day.
Earlier this month, Germany extended its trusteeship over Rosneft’s local assets, which includes its 54.17% stake in Schwedt refinery, for an additional six months.
German authorities are looking to sell Rosneft’s stake in the facility.
Alongside Rosneft, oil and gas majors Shell and Eni own 37% and 8% stakes, respectively, in the Schwedt refinery.
