The Signing of Settlement Agreement of the Unitized Jambaran Tiung Biru (JTB) Gas Field.

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Jakarta – On Friday (3/11) at the Head Office of PT Pertamina (Persero), the signing of a series of addenda documents was signed, namely of the Unitization Agreement (UA) & Unit Operating Agreement (UOA), the Joint Operating Agreement (JOA) and the termination of the Cepu Gas Marketing Agreement (CGMA), together with the signing of a Settlement Agreement (SA) by and between PT Pertamina EP Cepu (PEPC), PT ExxonMobil Cepu Limited (EMCL), and Ampolex. The persons involved in such signing were the President Director of PEPC, Adriansyah, the President Director of EMCL, Daniel L. Wieczynski, the President Director of PT Pertamina EP, Nanang Abdul Mana’af, the President Director of PT Asri Dharma Sejahtera, Ganesha H. Askari, the President Director of PT Petrogas Jatim Utama Cendana, Heru Pramono, the President Director of PT Blora Patragas Hulu, Imam Mukhyar, dan the President Director of PT Sarana Patra Hulu Cepu, Muhamad Iqbal. The signing was also witnessed by The Director for Upstream Affairs of PT Pertamina (Persero), Syamsu Alam, and the Director of Gas Affairs of PT Pertamina (Persero), Yenni Andayani.

The Jambaran-Tiung Biru (JTB) field, as may already be widely known, constitutes the unitization of the Jambaran field, which lies within the Cepu work area (WK), with the Tiung Biru field which lies within the Pertamina EP work area. By virtue of the letter of the Minister for Energy and Mineral Resources (MESDM) No. 9/13/MEM.M/2017 addressed to the President Director of PT Pertamina (Persero) dated 3 January 2017 concerning the development of the JTB Field, and by letter of the President Director of PT Pertamina (Persero) No. 012/C00000/2017-SO dated 13 January 2017 in response thereto, PT Pertamina (Persero), in this matter PEPC as operator of the JTB Field, stated its readiness to undertake the JTB field development in its entirety. Pertamina continues to introduce efficiency efforts in order to reach an acceptable JTB gas market price. A number of measures have been taken to successfully lower the Capex in the 2015 Revised POD valued at USD 2,056 million to USD 1,547 million (excluding the acquisition value of the management transfer), to construct a plant with a capacity of 330 MMSCFD, producing 172 MMSCFD of sales gas with a 16-year plateau. The JTB Project is expected to create around 6,000 job openings at its peak execution.

Syamsu Alam, Director of Upstream Affairs of PT Pertamina (Persero), stated that the JTB gas field project constituted a government’s strategic project, and in spite of hurdles encountered in the course of its implementation, the project had progressed well by the execution of the Settlement Agreement and thereby paving the way for EPC works. In the light of such development, Syamsu Alam called for the support of EMCL, the BUMDs and stakeholders both in the regions and nationally in progressing the JTB project. “We have a long way ahead of us. PEPC will work in tandem with the Gas Directorate, PEP and other related parties, because JTB is presently the largest project within the Upstream Directorate,” he added. It is therefore essential for PEPC as a subsidiary company executing this project, to observe the Health, Safety, Security, Environment (HSSE) factors, as a sizable manpower is involved in its operations and therefore occupational safety becomes a priority. “The JTB Project Management equally requires attention in order to control schedule and cost, and thereby large deviations can be curbed”.

Daniel L. Wieczynski, the EMCL President Director expressed his appreciation for the support and cooperation extended in the energy resources management in Indonesia, particularly in the Cepu block. EMCL is proud, excited and values the previous successful project (Banyu Urip), which exceeded the expected target. The JTB gas field is viewed as a large challenging project and he expressed hope that cooperation can be improved by a high professional standard to ensure the project performs as planned.

Following the signing of the documents, the event concluded with a joint prayer, a photo session and social mingling.