MEMR approves gas allocation from Jambaran-Tiung Biru field

The Ministry of Energy and Mineral Resources (MEMR) has issued a letter for the allocation of gas from the Jambaran-Tiung Biru field operated by PT Pertamina EP, Kontan daily reported on Tuesday.

The paper quoted Pertamina EP President Director Amril Thaib Mandailing as saying that 100 mmscfd of the gas would be allocated for Pertamina EP?s parent, state-owned oil and gas firm PT Pertamina.

Meanwhile, another 85 mmscfd would be allocated for state-owned fertilizer firm PT Petrokimia Gresik. But Amril quickly added that the company is still in negotiation with Petrokimia Gresik over the price of the gas. Amril said that the fate of the Jambaran-Tiung Biru field project would depend on the outcome of the price negotiation.

Amril told Petromindo.com in January of this year that production at the Jambaran-Tiung Biru field, located within the Cepu block in the border areas of East and Central Java, may be delayed by up to 12 months from the original schedule of 2018 due to uncertainty over gas price and allocation.

Meanwhile, Widhyawan Prawiraatmaja, a deputy at the upstream oil and gas authority SKK Migas, told Kontan that the gas price allocated for Pertamina was set at $13-14 per mmbtu.

He added that the allocation of gas for Pertamina was meant to speed up the construction of the gas pipeline by PT Pertagas, a subsidiary of Pertamina. (*)