JOB Jambi Merang partners sign extension cooperation MoU

By Bernard Loebs

State-owned oil and gas company PT Pertamina signed last week a MoU on extension cooperation with its partners in JOB Pertamina-Talisman Jambi Merang, operator of the Jambi Merang PSC, highlighting the partners commitment in maintaining production of the block ahead of contract expiry in 2019.

The MoU was signed on July 12 by Senior Vice President of Upstream Business Development at Pertamina, Dennie S. Tampubolon, Ferdinando Rigardo, a director at Repsol, which owns Talisman (Jambi Merang) Ltd, and Ratnesh Bedi, President of Pacific Oil and Gas Group. The last two companies are partners in the JOB along with PT Pertamina Hulu Energi (PHE) Jambi Merang, an indirect subsidiary of Pertamina.

Dennie said on Monday the signing of the MoU confirms the partners commitment in trying to maintain production of the Jambi Merang block. ?In the MoU, all parties including Pertamina through PHE, Repsol, and Pacific Oil & Gas agree to remain committed in trying to maintain the performance of the Jambi Merang block until end of the contract,? he said.

He said that the government has decided to transfer the block to Pertamina after the current contract expires in 2019. He added that Pertamina will then decide whether to run the block by itself or seek partners, including existing ones, on business to business approach.

Jambi Merang block currently has production rate of 155 mmscfd of gas, and condensates of 6,000 bpcd.

Meanwhile, Pertamina Upstream Director Syamsu Alam said on Monday that Repsol and Pacific Oil & Gas Group have expressed interest to continue participate in in the development of the block after the current contract expires.

According to its website, the JOB Pertamina-Talisman Jambi Merang has two operating fields namely Sungai Kenawang and Pulai Gading in Bayung Lencir District, Musi Banyuasin Regency, South Sumatra.

Editing by Reiner Simanjuntak