Pertamina, ExxonMobil sign agreements on transfer of JTB shares
Monday, November 6 2017 - 05:43 AM WIB
Petromindo|Boim
State-owned oil and gas firm PT Pertamina signed last week a number of agreements with ExxonMobil in relation to the transfer of the latter?s shares to the former in the Jambaran Tiung Biru (JTB) gas field development project in Bojonegoro, East Java.
Pertamina said in a statement obtained Monday that the two companies signed amendment into a number of agreements including joint operation agreement (JOA), unitization agreement (UA), unitization operation agreement (UOA), termination of Cepu gas marketing agreement (CGMA), and settlement agreement. No further details were provided including on the value of the Exxon shares in JTB.
Pertamina through Pertamina EP Cepu is the operator of the JTB project with interest of 45 percent, while the remaining 45 percent is held by Exxon, and another 10 percent by companies owned by local administrations in East and Central Java.
Deputy Minister of Energy and Mineral Resources Arcandra Tahar said in early August that ExxonMobil Cepu Limited was pulling out from the JTB project in Central Java due to disagreement over the selling price of gas from the project.
Pertamina on August 8 signed a heads of agreement (HOA) with state-owned oil and gas firm PT PLN to supply gas from the JTB project at a price of US$7.6 per mmbtu. The HOA is expected to be followed up with the binding gas sales and purchase agreement (GSA), which will pave the way for Pertamina to start construction of the JTB project, targeted to start gas production in 2020.
The GSA will be signed once the acquisition of the ExxonMobil interest in the JTB project has been concluded.
President Director of Pertamina EP Cepu Adriansyah was quoted as saying in September that PT Pertamina and ExxonMobil have finally reached agreement over the valuation of the latter?s participating interest (PI) in the JTB project, but did not disclose the figure.
Upstream Director of state-owned oil and gas firm PT Pertamina Syamsu Alam said in August that ExxonMobil was asking for US$121 million for its 45 percent interest in the JTB project. Pertamina was seeking for a lower price.
Minister of Energy and Mineral Resources Ignasius Jonan led on September 25 groundbreaking ceremony to officially start construction of a gas processing facility (GPF) at the JTB gas development project.
The facility will have production capacity of 330 mmscfd, and is targeted to start production at the end of 2020, Jonan said at the time.
Editing by Reiner Simanjuntak