Gas production at Jambaran, Tiung Biru, Cendana fields delayed

PT Pertamina EP said that gas production from the Jambaran, Tiung Biru, and Cendana fields in Central Java is expected to be delayed by 6-12 months from the original target of 2018 amid uncertainty over price and gas allocation, reports said Friday.

?There can be a delay of six months to one year,? President Director of PT Pertamina EP Cepu, Amril Thaib was quoted as saying.

He said that about 85 mmscfd of gas from the project would be allocated for state-owned fertilizer firm PT Pupuk Kujang, while there?s no certainty yet on the allocation of the remaining output of 100 mmscfd. ?There?s possibility it would be allocate to state-owned enterprises,? he said.

The final decision over gas allocation and price are necessary for the contractor to determine the final investment decision (FID), which will be used as the basis to hold tender for the EPC work.

Amril acknowledged that the delay would inflate the cost of the project, but quickly added that efficiency measures would be taken to help maintain the cost.

Meanwhile, President Director of gas distribution firm PT Pertamina Gas, Hendra Jaya said that the delay in the gas production at the Jambaran, Tiung Biru and Cendana fields would not affect the construction of the Gresik-Semarang gas pipeline project.

He said that the company would seek other gas sources such as from the Central Java Floating Storage and Regasification Unit (FSRU) so that the construction of the pipeline can be completed on schedule. (*)