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Friday, March 27, 2020

The Jambaran-Tiung Biru Project Will Be Operated Next Year



PT Pertamina EP Cepu (PEPC) ensures that the Jambaran-Tiung Biru Project can start operating according to the target, namely in July 2021. This subsidiary of PT Pertamina (Persero) will pursue construction delays in the next two months.

Jamsaton Nababan

Pertamina EP Cepu President Director Jamsaton Nababan said, of the five jobs that had to be completed in the Jambaran-Tiung Biru Project, his side had completed three jobs namely front end engineering design / FEED, land acquisition, and early civil work. Two more jobs are currently in the process of construction of a gas processing facility / GPF and well drilling.

He explained, the development of GPF development so far had reached 54.94%. It has also completed four wells out of a total of six wells needed (75%).

"So in total, if I'm not mistaken the development has reached almost 56%, still 44% will be completed. So we believe we can be on stream in July 2021, "he said.

Jamsaton admitted, the progress of the GPF development was a bit late compared to the schedule, which was around 0.4% of the target. This is due to the very high rainfall at the project site. In addition, the Covid-19 pandemic also affected the fabrication process of some equipment needed for GPF.

However, it has prepared a number of strategies to pursue this delay. To speed up the project, it has added automatic welding machines, large-powered pumps, and increased hours of night work. This allows the construction of the Jambaran-Tiung Biru Project to last 24 hours. 

Jambaran-Tiung Biru Project

    Regarding the procurement of equipment, he admitted there were several tools that were fabricated in Wuhan, China. However, with the approval of the licensor, the fabrication of this tool has been moved to Indonesia.

the Corona Virus

While the fabrication of some other equipment is also done in Italy, Spain and South Korea. However, despite the lockdown imposed due to the widespread Corona Virus in the country, the workmanship of this tool continues.

"The project of minus 0.4% is still normal. So indeed the material has come, after the Corona Virus spread. So the material delivery is not constrained, "said Jamsaton.

Japan Gas Corporation (JGC)

The GPF Jambaran-Tiung Biru Project facility was undertaken by a consortium of PT Rekayasa Industri (Rekind), Japan Gas Corporation (JGC), and Japan Gas Indonesia (JGI). Managing Director of Rekind Yanuar Budinorman revealed, the GPF's work included deploying gas sales pipelines.

At present, the progress of the GPF is indeed somewhat late, which is still 54.94% of the target of 55.35%. While the progress of deploying the pipeline is 5.5 kilometers (km) out of a total of 11 km. However, with various anticipatory steps carried out together with Pertamina EP Cepu, he is optimistic that he can catch up. Moreover, it also plans to add 500-1,000 workers in the field.

"We have taken steps and will rebound in two months, in April May. It means, we will be back on track, "said Yanuar.

The GPF facility is targeted to start operating in July 2021. While the gas pipeline is targeted for completion in April next year. Referring to Pertamina EP Cepu data, the contract value for the GPF works by Rekind is US $ 983 million.

Jamsaton added, the drilling of six wells in the Jambaran-Tiung Biru Project will be completed ahead of GPF, which is later this year. In April-May, it will begin drilling in Central Jambaran. The drilling is completed first so that once the GPF is finished, the gas can be directly flowed.

"As of December, for the GPF we target a 94% progress, if the total project is 92%," he said.

As long as the project is not delayed, he is optimistic that the investment of this project will not increase despite the Corona Virus pandemic, which is still at US $ 1.55 billion.

Gas supply

Jamsaton stated that he was committed to completing the Jambaran-Tiung Biru Project given the importance of the gas produced. On several occasions, the Head of SKK Migas Dwi Soetjipto said that he had warned that East Java would begin to lack gas supply in 2021-2022.

"So, the only hope is Jambaran-Tiung Biru," he said.

He explained, according to the government's allocation, his party had sold gas from this project totaling 172 million cubic feet per day / mmscfd to PT Pertamina (Persero). Next, Pertamina will sell gas to consumers. Until now, Pertamina has signed a 100 mmscfd gas sale and purchase contract with PT PLN (Persero) for a power plant in Gresik, East Java.

"There is still 72 mmscfd remaining that will be allocated by Pertamina Persero," said Jamsaton.

However, with design optimization, it was able to increase the production of the Jambaran-Tiung Biru Project by 20 mmscfd to 192 mmscfd. This additional 20 mmscfd gas production has not yet received an allocation letter from the government. The reason is that the government has the authority to determine who buys gas supplies.

"We get assignments to the allocation to whom, after that we can sell the gas to those who get the allocation," he explained.

Regarding the government's decision to impose a gas price of US $ 6 per million British thermal unit (MMBTU), Jamsaton revealed that his party had not yet received a decree from the government. However, with a government policy where the cooperation contract contractor (KKKS) part is not reduced, it will not be a problem.

"So even though gas prices are going down, as long as the project economy remains the same, it doesn't matter," he said.

Investor Daily, Page-9, Friday, March 20, 2020

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