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SKK Migas: Indonesia to get $3.61B from Jambaran-Tiung Biru gas project

Groundbreaking ceremony of Jambaran-Tiung Biru gas fields project development (Image credit : ESDM)

JAKARTA (RambuEnergy.com) – The Indonesian government is expected to receive US$3.61 billion in revenues from the gas sales of the Jambaran-Tiung Biru gas fields in East Java.

“The State revenues from this (Jambaran Tiung Biru) project during the contract term until 2035 is projected to reach US$3.61 billion,” the Head of Special Task Force for Upstream Oil and Gas (SKK Migas) at the Energy and Mineral Resources Ministry, Amien Sunaryadi said.

Minister for Energy and Mineral Resources Ignasius Jonan on Monday (Sep 25) officiated the development of the Jambaran and Tiung Biru fields development, which is developed under one scheme (Unitization).

Jambaran field was originally part of Cepu Block, while Tiung Biru was part of Pertamina EP’s working area. After long negotiation, Pertamina EP finally fully developed the two fields, while ExxonMobil surrendered its right or stakes to Pertamina EP.

Currently, Pertamina EP holds 90% stakes in the field, with 10% held by local governments. The project construction costs have been trimmed to US$1.55 billion from US$2.1 billion estimated earlier.

As much as 172 MMSCFD of gas output will be allocated to power plants and industries in the East Java, with gas price is set at US$7.6 per MMBTU.

The gas will be delivered to gas power plant in Gresik with installed capacity of 750 MW and Tambak Lorok power plant with installed capacity of 600 MW.

The JTB gas fields development is projected to produce 330 MMSCFD of gas. Of this, 110 MMSCFD will be allocated to Pertamina, which will then delivered to PLN to generate its gas power plants. As much as 72 MMSCFD will be allocated to industries in Central Java and East Java provinces.

The gas price has been set at fixed tariff of US$7.6 per MMBTU for 30 years, plus toll fee of US$0.90 per MMBTU, therefore the gas price at PLN’s power plant will be at US$7.6 per MMBTU. (*)

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