GSA on gas from Jatirarangon amended
Wednesday, November 5 2014 - 12:50 AM WIB
PT Pertamina EP (PEP), a subsidiary of state owned oil and gas firm PT Pertamina, and state owned gas distributor PT Perusahaan Gas Negara (Persero) Tbk (PGN) have signed an agreement to amend the Gas Sales Agreement on gas supplies from the Jatirarangon Technical Assistance Contract (TAC) in West Java.
The GSA was signed on July 26, 2004 and was first amended on March 30, 2011.
PEP and PGN signed an agreement to amend again the GSA on Oct. 30, 2014, SGX-listed Ramba Energy Limited, the operator of Jatirarangon TAC, in a statement on Tuesday.
The agreement has been executed to serve as a provisional legal basis for the gas distribution by PEP to PGN, pending an approval from SKK Migas, Ramba said.
Under the agreement, both parties are to immediately prepare the second amendment to GSA for the purpose of continuation of the gas distribution in accordance with the GSA
The agreement took effect as of Oct. 19, 2014 at 00.00 Western Indonesian Time (WIB) to the earlier of (a) Oct. 18, 2015 at 24.00 WIB; or (b) the execution and effective date of the second amendment to the GSA. The term of the agreement may be extended upon a written agreement by and between the Parties.
Under the terms of the agreement, the provisional gas prices applicable under the GSA shall be as follows:
(a) US$6.55 per mmbtu from Oct. 19, 2014 at 00.00 WIB until Dec. 31, 2014 at 24.00 WIB; and
(b) $6.75 per mmbtu from Jan. 1, 2015 at 00.00 WIB until the termination of the agreement.
In the event of any differences between the provisional gas price and the gas price set forth in the second amendment to the GSA, the parties will make reconciliation of the payments that have been made by PGN to Pertamina.
The Jatirarangon TAC is located in Cikarang, West Java, approximately 48 kilometres from the Indonesian capital of Jakarta. Already a producing asset, the Jatirarangon block recorded peak production levels of 6.8 million standard cubic feet (mmscfd) of natural gas and 105 barrels of oil and condensate per day.
Ramba successfully doubled production from the Jatirarangon block in late 2011, after drilling two additional development wells at the block. Ramba Energy controls a 70% working interest (operator) of the Jatirarangon TAC.
Editing by Johannes Simbolon