Pertamina to Invest USD1.54bn in Jambaran Tiung Biru Project

TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina, through its subsidiary Pertamina EP CEPU (PEPC), will invest USD1.457 billion in Jambaran Tiung Biru (JTB) gas field unitization project in Bojonegoro Regency, East Java.

Pertamina CEO Elia Massa Manik said that the development of Jambaran Tiung Biru will give a new hope to Indonesia. “Particularly to address gas supply deficit in Central and East Java,” he said in a written statement received by Tempo on September 25.

Pertamina expects that gas reserves totaling 2.5 trillion cubic feet (TCF) in JBT will secure supply to Central and East Java industries and help boost the national economy. Elia is also hopeful that JTB gas field will create new jobs and reduce poverty.

In January, the government instructed Pertamina to fully develop JTB field and conclude the transfer of the gas field with ExxonMobil Cepu Limited.

Elia said that Pertamina is trying to complete negotiation on transfer of participating interest (PI) to develop JTB. The company currently holds 45 percent participating interest. Once the transfer completed, it will hold 91 percent PI and the remaining 9 percent will be owned by a regional-government owned enterprise (BUMD).

As the negotiation continues, the company signed a gas purchase deal with state-owned electricity company PT PLN at USD7.6 per MMBTU on August 8. “The agreement marks the start of the development of JTB gas field since we already have a buyer,” Elia said.

JTB field drilling will start after PEPC appoints PT Rekayasa Industri (Rekind) and PT Japan Gas Corporation as the winning bidders. The gas field has a high complexity with CO2 content of 24 percent, gas processing facility of 330 million metric standard cubic feet per day (MMSCFD) and 172 MMSCFD of gas sales.

Elia said that Pertamina is confident that JTB field will start production by 2021 and help accelerate gas pipeline transmission utilization between Gresik and Semarang.

Pertamina subsidiary PT Pertamina Gas (Pertagas) is aiming to complete 267-kilometer pipeline construction between Gresik and Semarang worth USD515.7 million. “The progress of EPC construction is 85 percent; the project will go onstream in mid-2018,” he said.

CAESAR AKBAR