Bimantara sells stake in Trans Javagas Pipeline
Tuesday, December 26 2006 - 02:02 AM WIB
In a statement to the Jakarta Stock Exchange last week, the company, however, did not disclose the value of the transaction.
TJP consists of Bimantara (49 percent), PT Tranaco Utama (28 percent), Yayasan Kesejahteraan Pegawai Pertamina (YKPP) (10 percent), PT Adhiraksa Tama (5 percent), YDP PT PLN (5 percent) and YDP Bank Dagang Negara (3 percent).
In 1992, TJP and state-owned oil and gas firm PT Pertamina signed a Build and Transfer Agreement under which TJP will get ?throughput fee? from operation of the pipeline until 2014.
In 1994, TJP completed the construction of the 28-inch diameter pipeline at total cost of US$444.81 million of which about $44.81 million was solely financed by TJP?s shareholders. The remaining fund of $400 million was secured from Bank of Tokyo Mitsubishi. The loan was fully paid in 2001.
Under a settlement agreement signed in 2004, Pertamina and TJP agreed to reset the throughput fee revenue at a ratio of 56.55:43.45, respectively, after costs of operation and maintenance.
The EJGP stretches 440 km from Kangean PSC near the island of Madura to East Java?s mainland, passing through a 370-km offshore section. The transmission pipeline is also attached to Santos? sub sea pipeline from the Maleo offshore field.
The EJGP has a capacity of 600 million cubic feet of gas per day (mmcfd).
The pipeline is currently facing trouble as a result of an explosion incident at the pipeline section near Sidoarjo last month. (Robert)