Indonesia government appoints Pertamina EP to develop Tiung Biru, Jambaran fields project

JAKARTA ( – The Energy and Mineral Resources Ministry has given a mandate to PT Pertamina, a state owned energy company, to develop the unitization project, Jambaran and Tiung Biru fields.

Jambaran field is located within Cepu Block, which is being operated and developed by ExxonMobil Cepu Ltd (EMCL), while Tiung Biru is under the responsibility of PT Pertamina EP Cepu (PEPC). Given the two fields are closely located, the energy ministry has decided to develop the two fields jointly.

In August, 2015, the Special Task Force for Upstream Oil and Gas Business (SKK Migas) at the Energy and Mineral Resources Ministry, has has approved the revised plan of development (PoD) of Tiung Biru-Jambaran field within Cepu Block.

PEPC is the operator of the Jambaran-Tiung Biru (J-BT) gas fields, located subdistricts of Ngasem, Tambakrejo and Purwosari, Bojonegoro Regency, East Java.

Earlier, PEPC and EMCL have agreed to drill six wells , four by EMCL and two by PEPC. The two wells are expected to produce 80 million standard cubic feet per day (MMSCFD) of gas. EMCL is the operator of Cepu Block.

The JTB gas project is located on 143 hectares of loan, off which 100 hectares for pipelines and well.

The JBT is targeted to produce 227 MMSCFD of gas in the first quarter of 2019 and will reach peak production of 315 MMSCD of gas in 2020.

Earlier, Public and Government Affairs (PGA) Specialist of Pertamina Eksplorasi and Produksi (PEPC) Abdul mMalik, two consortiua, namely PT Rekayasa Industri (Rekind) and PT Japan Gas Corporation (JGC) have been recommended by tender committee to develop gas processing facilities for Jambaran and Tiung Biru fields

On Thursday, Director of Upstream of Pertamina Syamsu Alam said the J-TB unitization project has been stucked as the standard adopted by Pertamina and ExxonMobil in determining the commercial viability of the project is different. Therefore, if there is no solution, the project will not move forward.

The government has also said that it will not give incentives for the development of the Jambaran-Tiung Biru project, which was supposed to cover the lower-than-expected internal rate of return (IRR) of the project.

“The government has assessed an option that the project development could be given to Pertamina. Pertamina is asked to discuss with ExxonMobil over the participating interest in the Jambaran-Tiung Biru,” Syamsu Alam was quoted by Investor Daily as saying.

PEPC has set aside US$100 million to develop the J-TB project.

VP Public and Government Affair of ExxonMobil Erwin Maryoto said his office has been informed that the government has appointed Pertamina to carry on the Jambaran-Tiung Biru unitization project. He said EMCL will carry out internal discussion to find the best solution for the matter. (*)

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