Pertamina-PLN Agrees to Price US $ 7.6 / MMBTU

INDUSTRY.co.id - Jakarta - PT Pertamina (Persero) and Perusahaan Listrik Negara (PLN) have agreed the price of gas for the Tiung Biru Blue Field (JBT) field of 7.6 US dollars per MMBTU flat during the contract.

The project has an investment value of 1.55 billion US dollars and immediately executed.

This was conveyed by Vice Minister of Energy and Mineral Resources, Arcandra Tahar in Jakarta, Tuesday (8/8/2017) at the signing of gas supply agreement of gas field of Jambaran Tiung Biru for PLN Gresik Region and Evaluation of first semester performance in oil and gas field.

"In 2017 marathon we are guarded so that the project of Jambaran Tiung Biru can be executed immediately. Some important decisions we have decided include JTB gas relocation to Pertamina, JTB gas pricing to PLN Gresik Region, Change 'split' Pertamina EP Cepu JTB project, and over field management from Exxon by Pertamina EP Cepu, "said Arcandra as quoted by Antara.

He also explained that it has done capex efficiency or investment cost from 2.1 billion US dollars to 1.5 billion US dollars. "This is a great achievement," said Arcandra Tahar.

Important decisions that have been decided in 2017 include:

1. Relocation of JTB gas to Pertamina through Letter of Minister of Energy and Mineral Resources No. 538/13 / MEM.M / 2017 dated January 11, 2017.

2. The determination of gas price of JTB to PLN Gresik region is 7.6 per US dollar MMBTU flat along the contract, through Letter of Minister of Energy and Mineral Resources Number 5939/12 / MEM.M / 2017 dated August 1, 2017.

3. Change of split of profit sharing contract of Pertamina EP Cepu JTB project, through Letter of Minister Letter of Minister of EMR No. 5953/12 / MEM.M / 2017 dated 1 August 2017.

4. Define the field from Exxon Cepu by Pertamina EP Cepu so that Pertamina controls 90 percent Participating Interest and the remaining 10 percent will be controlled by the Region.

5. Efficiency of "capital expenditure" (capex) or investment cost from 2.1 billion US dollars to 1.5 billion US dollars, so that state and contractor oil and gas revenue will be better.

It is known that the Tiung Biru Jambaran Field with an investment of about 1.5 billion US dollars will produce 330 MMSCFD of gas with sales of 172 MMSCFD for 16 years (plateu).

Of the 172 MMSCFD utilization of the gas, 100 MMSCFD will be distributed to PLN Gresik Region at a price of 7.6 US dollars per MMBTU flat during the contract period, and 72 MMSCFD for industries in Central Java and East Java.

Gas from Tiung Biru Jambaran field will also be connected with Gresik-Semarang pipe along 267 km with diameter 28 inch. Pipe Gresik-Semarang with an investment of approximately 515 million US dollars is planned to be completed in 2018.