Ministry approves JTB gas development project design
Friday, December 15 2017 - 01:07 AM WIB
The Ministry of Energy and Mineral Resources has approved the design of the Jambaran Tiung Biru (JTB) gas field development project in East Java Province owned by PT Pertamina EP Cepu (PEPC).
The Directorate General of Oil and Gas at the ministry said in a statement that the approved design document was handed over by the directorate?s Director of Engineering and Environmental Affairs, Patuan Alfon Simanjuntak to PEPC President Director Jamsaton Nababan on Thursday.
The statement said that with the approval of the design, the PEPC consortium can proceed with the construction of the JTB project in accordance with the installation and engineering principles as governed under the Minister of Energy and Mineral Resources Regulation No 38/2017 on the inspection of safety of installations and equipment in upstream oil and gas activities. PEPC becomes the first oil and gas production sharing contractor to obtain design approval based on this ministerial regulation.
Groundbreaking of the JTB gas field development project was made on September 22, 2017 in a ceremony led by Minister of Energy and Mineral Resources Ignasius Jonan. The JTB project will have a production capacity of 330 mmscfd, with estimated investment of US$1.55 billion excluding investment for the construction of the 267-km Gresik-Semarang gas pipeline which will require another $515 million. The JTB project is targeted to start production in 2021.
Gas output from six wells will be processed at a gas processing facility (GPF). Of the average production of 330 mmscfd, the GPF will separate the CO2 and H2S contents to produce saleable gas of 172 mmscfd. To transmit the gas from the JTB field, PT Pertamina Gas will develop the Gresik-Semarang gas pipeline. It is expected that gas-based industries will develop along the pipeline route linking seven regencies in East and Central Java provinces.
Gas from the JTB project will be sold to state-owned electricity firm PT PLN at a price of US$7.6 per mmbtu.
The JTB field is a unitization of part of the Cepu working area and the Pertamina EP working area. The field is estimated to hold reserves of 1.9 tcf. PEPC will hold 90 percent interest in the project once ExxonMobil divest its 45 percent interest in the project. The remaining 10 percent interest is held by companies owned by local governments in East and Central Java.
Editing by Reiner Simanjuntak