YYA Well Operations in 2021

PT Pertamina Hulu Energi targets the YYA well in the Offshore North West Java (ONWJ) Block to resume operations in 2021. 

Ifki Sukarya

Ifki Sukarya, Vice President Relations of PHE, explained that as of December 2019, the YYA Well had been carried out by plug and abandon and platform lifting.

However, until now it is still waiting for approval of the document on the Recovery of Life Functions in the affected area. Meanwhile, the Environmental Function Recovery Plan document is a series of activities handling contaminated land which includes planning, implementing, evaluating and monitoring activities to restore environmental functions caused by environmental pollution and/or environmental damage.

"It is hoped that by the end of 2021 it will be onstream," he said.

Meanwhile, Ifky said it was trying to complete the process of compensation payments for residents affected by oil and gas leaks. As for now, there is still a lot of citizen data that is not in accordance with the Population and Civil Registry Office data. 

     In addition, there are still two districts that have not yet implemented data collection for the second wave, namely Bekasi Regency and Karawang Regency.

"We hope to finish as soon as possible, depending on the Regency Government," he explained.

Previously, PHE through its subsidiary PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), had completed the initial compensation payment for residents affected by oil spills in Karawang Regency and Bekasi Regency, West Java.

Bisnis Indonesia, Page-23, Friday, March 6, 2020

Pertamina Hulu Energi Booked US $ 590 Million in Profit

PT Pertamina Hulu Energi (PHE) managed to book a profit of US $ 590 million last year, up 23.68% from the realization of 2018 of US $ 477 million. The increase in profits was supported by the high realization of the company's oil and gas production.

PT Pertamina Hulu Energi (PHE)

PHE's President Director Meidawati said last year's profit realization of US $ 590 million was higher than the 2018 achievement of US $ 477 million. While revenue realization was US $ 2.67 billion, up by 5.81% from the realization in 2018 of US $ 2.53 billion. The increase in financial performance was when the price of oil dropped from US $ 68 per barrel in 2018 to US $ 62 per barrel in 2019.

The company's profit could be higher if last year's oil price reached US $ 68 per barrel. Last year, the company's oil production reached 78,002 barrels per day (BPD). This realization increased by 13.05% from 2018 production achievements of 68,996 bpd. The company's gas production realization also increased slightly from 794 million standard cubic feet per day / mmscfd in 2018 to 803 mmscfd in 2019.

According to him, the achievement of this production performance was due to an increase in oil and gas production from the Jambi Merang and Tomori Blocks. In addition, additional production oil and gas also comes from optimizing planned shutdowns on the Offshore North West Java Block (ONWJ), West Madura Offshore (WMO), and Offshore South East Sumatra (OSES).

"In addition, this production achievement is also due to the success of PHE in reducing production decline from an average of 35% to 20%," Meidawati said.

Blogger Agus Purnomo in PT. PHE West Madura Offshore (WMO)

Meidawati added that ONWJ Block oil and gas production was recorded to increase despite an oil spill from one of its fields, the YY Project. This is because the acquisition of oil and gas production from reworking wells in other fields is very good so that it can cover the lost production from Project YY.

 "Because we work a lot on the ONWJ Block too. So the incidence of oil spills is not very influential. We got a lot of oil and gas production coming in, gas sales also went up, "Meidawati said.

This year, Meidawati hopes that some of the subsidiaries that were the mainstay in the past year will still be able to contribute maximally. This is because his party has set a higher oil and gas production target this year, namely 84 thousand bpd of oil and 822 mmscfd of gas. To pursue the target, he plans to do more massive activities.

"We will carry out drilling for the development of 51 wells and exploration of 6 wells, as well as the reworking of 50 wells," he said.

One of them, he plans to drill two exploration wells in the Nunukan Block. Because, according to the approved plan of development / POD, this block must start producing oil and gas next year.

"If there is no oil and gas flowing, we must return it to the government. Even though we have the privilege to have management rights, "Meidawati said.

Investor Daily, Page-9, Friday, March 6, 2020

Pertamina Assesses Transfer of Bontang Refinery Location

PT Pertamina (Persero) is reviewing the transfer of the location of the Bontang Refinery Project with a capacity of 300 thousand barrels per day (BPD) to Arun, Aceh or Kuala Tanjung, North Sumatra. The relocation of the refinery location because the company is targeting the international market.

Heru Setyawan, Director of Investment Planning and Risk Management, said that there were several locations considered by her to be the location of the construction of this new grass root refinery / NGRR. However, his party has not confirmed the chosen location because it is still conducting studies.

"We have plans to move the Bontang refinery, one of the locations from Bontang, Kuala Tanjung and Arun. So there is another study, "said Heru Setyawan.

Heru Setyawan explained, the consideration of moving the location of the Bontang refinery was because the existing infrastructure at the current location in Bontang, East Kalimantan was also used by other companies. On the other hand, the company is trying to optimize the use of existing assets. In addition, relocation also takes into account the availability of land and markets.

"Because Kuala Tanjung is close to the market, there is land. Because there is near the international market, then in Sumatra there is also a market, "said Heru.

Overseas Oil and Gas LLC (OOG)

Before deciding on the relocation of the Bontang Refinery, it still has to complete several agreements with its previous partners namely Overseas Oil and Gas LLC (OOG). He said he decided not to continue working with the oil and gas company from Oman.

"We propose to be revoked, terminated, but this must be an agreement between the two parties," he explained.

Therefore it will look for new partners to build this refinery project. While selecting partners, the Bontang Refinery work will continue. The selection of partners has already begun by Pertamina right now.

Previously, Pertamina Corporate Communication Vice President Fajriyah Usman revealed, his party no longer partnered with OOG in the Bontang Refinery Project because the framework agreement signed by the two companies had ended in December 2019. The Company no longer continued cooperation because OOG's performance was not in accordance with its commitments.

The operation of the refinery is still ongoing. This year it will complete the Bontang Refinery study location, feasibility study / FS, and search for partners.

The company also plans to start the general engineering design / GED engineering work in 2020. The latest development, OOG has signed a memorandum of understanding on the construction of the Bontang Refinery facility with PT Meta Epsi and PT Sanurhasta Mitra Tbk (MINA).

The two companies will build supporting facilities (outside battery limit / OSBL), such as pipes, water treatment facilities, and fabrication. In addition, OOG has conducted open bidding in Singapore to engineering companies with a good reputation for conducting a financial feasibility study on 30 April.

Pertamina plans to accelerate the Bontang Refinery Project by combining the front end engineering design / FEED package auction and engineering, procurement, and construction / EPC. On the other hand, the company monitors OOG's efforts in seeking project funding.

Luhut Binsar Pandjaitan

Because this project's investment of US $ 1015 billion will all be borne by partners. Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan had encouraged Pertamina to partner with oil and gas companies from the United Arab Emirates for the construction of the Bontang Refinery.

    At that time Luhut said that Pertamina's partners could have been replaced if the performance was not good. The reason is, even though the project was agreed upon several years ago, this project has not yet been completed.

ADNOC

"We want to replace the company from Oman, maybe with Abu Dhabi, ADNOC or other companies," said Ruhut Binsar Pandjaitan.

Investor Daily, Page-9, Thursday, March 5, 2020

2030, Indonesia Gas Production Reaches 12,300 MMSCFD

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) will increase national gas production to 12,300 million standard cubic feet per day / mmscfd. This will make Indonesia one of the world's major gas producers. 

SKK Migas

    Based on the national energy general plan (RUEN), gas production in Indonesia is expected to continue to decline due to a natural decline in the production rate of 20% per year.

However, during 2015-2019, SKK Migas was able to maintain gas production above the RUEN target. Last year, gas production was recorded at 7,254 mmscfd and lifting 5,923 mmscfd.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto is optimistic that national gas production will continue to rise going forward. This is after the discovery of spare parts of gas in the Sakakemang Block and the completion of the Masela Block revised plan of development / POD last year. Along with achieving the target of 1 million barrels per day (BPD) of oil production in 2030, gas production will also increase to 12,300 mmscfd.

"The completion of the Masela Refinery Project and the main upstream oil and gas project, as well as the discovery of other new oil and gas fields, will make Indonesia again one of the world's major gas producers," Dwi Soetjipto said.

SKK Migas has four strategies to increase national oil and gas production. In particular, SKK Migas will maintain the high level of existing production, the transformation of resources into production, accelerate enhanced oil recovery / EOR, and exploration to find large oil and gas reserves. At present, SKK Migas has identified 12 areas that have the potential to contain large amounts of oil and gas.

"With the details of 6 areas in western Indonesia, 4 areas in eastern Indonesia, and 2 areas in the deep sea," Dwi said.

Meanwhile, referring to data from the Ministry of Energy and Mineral Resources (ESDM), there will be an additional gas supply of 3,806 mmscfd in 20212017, namely pipeline gas 1,898 mmscfd and liquefied natural gas (LNG) 1,907 mmscfd. This gas supply comes from the 192 mmscfd JambaranTiung Blue Project in 2021 and the 400 mmscfd Corridor and Jabung Block in 2022.

In 2023, additional gas will come from the 300 mmscfd Sakakemang Block of Cendana and Alas Tua 60 mmscfd, the Kasuri Block 197 mmscfd, and the 100 mmscfd Indonesia Deepwater Development (IDD) Project. 

the Nunukan Block

   Furthermore, other projects contributing to boost Indonesia's gas production are the Nunukan Block 90 mmscfd in 2024, the Natuna Block 230 mmscfd in 2025 and 2028, the Tangguh Refinery Train3 725 mmscfd in 2022 and 2026, and the Masela Block 1,512 mmscfd in 2027. 

the Natuna Block

    According to Dwi, project completion main upstream oil and gas and Mega Masela Project will make Indonesia again become one of the world's major LNG producers.

"This can increase the contribution of upstream oil and gas to the increase in supply for the national industry and to supply world LNG needs so that it will further increase the country's foreign exchange," he explained.

He added, Indonesia had the opportunity to become a major supplier of global LNG again. For information, Indonesia has been the largest LNG exporter in the world since 1977. 

    However, along with the decline in national gas production and the government's policy to prioritize domestic gas utilization, Indonesia's contribution to the LNG market continues to decrease. However, this national gas production will not be entirely exported after increasing drastically.

"This supports the Government in increasing the competitiveness of domestic industries with the availability of gas supply," Dwi said.

Separately, Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources Ego Syahrial stated that the current government policy is to transform energy from oil dominant to gas dominant.

"In the future, gas will become the future of green energy along with renewable energy. The transition from fossil fuels to gas is a solution for today's global challenges, "he said.

In addition to encouraging increased gas production, his party is also increasing the development of gas infrastructure to meet the growing domestic gas demand.

"We also want to ensure and maintain that upstream gas activities remain attractive to investors," Close Ego.

Investor Daily, Page-9, Thursday, March 5, 2020

PT Pertamina Records the Best Achievement

During the year 2019, PT Pertamina EP Cepu (PEPC) recorded its best achievement. Starting with PEPC, which again contributed to the largest profit in the Pertamina subsidiary with a value of USD 849.5 million from total revenue of USD 1,803.96 million. Achievement of PEPC's profit in 2019 increased by 0.75% from the achievement of its profit in 2018 with a value of USD 843.1 million.

In addition to recording the largest profit from PEPC's production realization in 2019, the Banyu Urip Field was recorded to be able to achieve a lifting realization of up to 102% of the target. The Banyu Urip field, which contributes more than 25% of national oil production, has exceeded the 2019 production target with an average production of 217.6 MBOPD.

The Kedung Keris Field, which was already on stream on November 22, 2019, contributed to an additional 5,000 BOPD of national oil production which could be increased to 10,000 BOPD at peak production. While the progress of the JTB project itself as a whole at the end of 2019 has reached 50.05% (from the aspects of Land Acquisition, Early Civil Works, EPC Gas Processing Facilities and Drilling).

Achievement of the Health Safety Security Environment (HSSE) Performance in 2019 with the acquisition of 7,082,275 working hours of congratulations has led PEPC to win the Zero Accident Health and Safety (K3) award from the Governor of East Java and Champion HSSE Performance in the SKK Migas K3LL Award.

JTB (Jambaran Tiung Biru) Field

This achievement shows the commitment of PT Pertamina EP Cepu (PEPC) to always prioritize HSSE Excellence aspects in completing the JTB project as always delivered by the President Director of PT Pertamina EP Cepu (PEPC), Jamsaton Nababan, that the left hand is HSSE and the right hand is risk management. Jamsaton stated that PEPC was optimistic that it would be able to complete this national strategic project in a timely and appropriate manner.

"I am very happy with the achievements of PEPC in the 2019 performance," said Jamsaton. This proves the sincerity and hard work and high commitment of the entire Team in making a tangible contribution to the project and the company. I really appreciate the performance given by PEPC workers and also the stakeholders who have been there to support PEPC. " said Jamsaton Nababan.

Bhirawa, Page-10, Wednesday, March 4, 2020

Saudi Aramco in the Cilacap Refinery Project is Immediately Confirmed

PT Pertamina (Persero) hopes to immediately obtain certainty of the continued cooperation with Saudi Aramco related to the Cilacap Refinery Project this month. Certainty is needed after a change in the cooperation scheme of the two companies. 

Pertamina offers a new cooperation scheme for the Cilacap Refinery Project because the two companies do not immediately agree on the valuation of refinery assets. The refinery project will be carried out with the same scheme used in the Balikpapan Refinery Project, which is a lease.

the Balikpapan Refinery Project

Under this scheme, Pertamina will pay the rental fees for the joint venture with Saudi Aramco which is building a new refinery unit at the Cilacap Refinery Complex. While the refinery unit which is currently in operation remains the property of Pertamina. 

Saudi Aramco

Under the new scheme, the Pertamina-Saudi joint venture Aramco will build a new refinery unit. Pertamina Investment Planning and Risk Management Director Heru Setyawan revealed that his party was still waiting for Saudi Aramco's response to the new Cilacap Refinery cooperation scheme.

Pertamina Corporate Secretary Tajudin Noor had said, his party indeed hoped the agreement with Saudi Aramco could be signed as soon as possible. Although there are still a few things that are considered by potential partners, it cannot force them to set a deadline for an agreement. 

He explained, his party and Saudi Aramco discussed the benefits obtained by each party through this collaboration. In addition, it also waits if Saudi Aramco requires special treatment (privilege) from the government or company, such as business preconditions.

Although there is no agreement yet, Tajudin stressed that the Cilacap Refinery Project will not be stopped. If indeed it and Saudi Aramco did not reach an agreement, Pertamina would find another partner or work on the refinery project in Central Java.

"We open up opportunities for all partners," he said.

For information, the Cilacap Refinery Project has no significant progress because the two state-owned oil companies did not immediately reach an agreement on the valuation of existing refinery assets. 

Nicke Widyawati

   Until the last discussion, Pertamina President Director Nicke briefly revealed the difference between the valuations calculated by Pertamina and Saudi Aramco was still very large.

Investor Daily, Page-9, Wednesday, March 4, 2020

Production Optimization is a Priority

Efforts to optimize the production of the Rokan Block, which is now entering the transition phase, is a priority for PT Chevron Pacific Indonesia. 

PT Chevron Pasific Indonesia

   PT Chevron Pasific Indonesia Corporate Communication Manager Sonitha Poernomo said discussions related to the transition of the legendary block contractor were ongoing so that the process could be more perfect. 

Sonitha Poernomo

   According to her, the steering committee consisting of the heads of SKK Migas, PT CPI, and Pertamina, which had been formed since the beginning of last year, regularly discussed the transition process. However, he was reluctant to disclose in more detail what the discussion was,

"The Rokan Block is a national strategic asset, therefore optimal sustainable production is a priority. PT CPI continues to work closely with SKK Migas and Pertamina to discuss various options to optimize production and create a safe, reliable and smooth transition, "he said.

Director of Investment Planning and Management of RiSiko PT Pertamina (Persero) Heru Setiawan previously said that the company could not invest in the Rokan Block because the transition process had not yet been completed.

SKK Migas

"Still being discussed at SKK Migas. Still awaiting how the agreement should be tidied up. The discussion is still with Chevron, only now what is the stage, the revenue sharing obligations must be tidied up, "said Sonitha Poernomo.

Heru added that the company's main focus for the Rokan Block is to maintain a decline rate level at a good point. That is why Pertamina continues to strive so that the transition process can begin immediately.

"Our goal is to maintain the level of production," he said.

Previously, Head of the Special Task Force for Upstream Oil and Gas Business Activities, Dwi Soetjipto, said that until now the solution for the Rokan Block transition process continues to be sought. Dwi revealed, if later Pertamina could not invest in the Rokan Block, another scenario would be that Chevron would invest in the block.

Bisnis Indonesia, Page-24, Wednesday, March 4, 2020

Pertamina Assesses Refinery Development in Sumatra

PT Pertamina (Persero) is currently studying the construction of a refinery in Sumatra. This step was taken by Pertamina as an option to relocate the construction site of the new Bontang Grass Roof Refinery / GRR, East Kalimantan.

the Bontang GRR

Pertamina's Investment Planning and Risk Management (IMR) Director Heru Setiawan explained that the company is currently reviewing several location options that will become new refinery construction sites, namely in Kuala Tanjung North Sumatra and Arun in Aceh.

"There are several locations in the same area, Bontang, Kuala Tanjung, and Arun," Heru said.

Kuala Tanjung, Heru admitted, became one of the strongest candidates for the new Pertamina refinery replacing the Bontang refinery. Based on preliminary studies, Kuala Tanjung region Already meet management requirements as a refinery construction site. This starts from the market availability of refined products to the availability of future land for development.

"Because there are factors close to the market, the land is there. There is an international market," Heru said.

Overseas Oil and Gas LLC [OOG]

In addition, the site observer also considered the change in refinery development partners. Pertamina is no longer partnering with Omani oil and gas company Overseas Oil and Gas LLC [OOG]. Even so, according to Heru, before determining the location of Pertamina, it must first decide on the cooperation that had been established with OOG. Now, Pertamina is in talks to end the cooperation.

"We propose for the cancellation, but there must be an agreement between the two parties because of the MoU and others," he said.

Republika, Page-14, Tuesday, March 3, 2020

Acquisition of the Southeast Jambi Block US $ 135,000

PT Pertamina (Persero) intends to increase cooperation with the Cooperation Contract Contractors (KKKS) to pursue a production target of 923,000 barrels of oil equivalent per day (boepd) this year. Pertamina hopes that the increase in production is in line with profit growth.

The latest asset included in Pertamina's portfolio is the South East Jambi Work Area (WK). PT PHE Southeast Jambi took over 27% of its participatory rights from the hands of Repsol Exploration South East Jambi B.V. The signing of the collaboration took place last Sunday.

Repsol

PHE Southeast Jambi is a subsidiary of PT Pertamina Hulu Energi (PHE) or Pertamina's grandson.

"In the future, we hope to add reserve findings to develop and increase production," said Meidawati, Director of PT Pertamina Hulu Energi (PHE).

PT Pertamina Hulu Energi (PHE)

Looking at the 2018 annual report, PHE has proven oil reserves of 60.28 million barrels of oil (MBO), gas 341.25 billion standard cubic feet (BSCF) and oil and gas 119.16 million barrels of oil equivalent (mboe). Proven oil and oil and gas reserves are down compared to 2017. Only proven gas reserves are rising.

Block SK-305 Malaysia

PHE production relies on 51 Work Areas or blocks. A total of 49 blocks in the country. Then two other blocks abroad, namely Blocks 10 and 11.1 in Vietnam and Block SK-305 in Malaysia. 

     As a result, Southeast Jambi will add to the list of PHE working areas. So far the PHE management has not revealed detailed work plans for Southeast Jambi. But certainly, the acquisition of the block almost requires a special budget.

"Pertamina only replaced the signature bonus proportionally, that is, changing obligations and delivering a performance bond according to the size of the participation," Meidawati said.

The signature value of the Southeast Jambi Block bonus that is part of the PHE is the US $ 135,000. When referring to the Bank Indonesia middle rate (IDX) of Rp. 14,413, the value is around Rp. 1.95 billion. 

MOECO Southeast Jambi B.V.

    Just information, in 2018 the Consortium of Repsol Exploration South East Jambi B.V. and MOECO Southeast Jambi B.V. signed the Southeast Jambi Block Contract. 

The block's exact commitment consists of G and G, 2D seismic along 300 km with a total of US $ 4.65 million. While the signature bonus value is the US $ 500,000.

Kontan, Page-14, Tuesday, March 3, 2020

Pertamina Assesses Transfer of New Refinery Project Location

PT Pertamina (Persero) chose Kuala Tanjung in North Sumatra or Arun in Aceh as the location for the construction of a new Grass Root Refinery / GRR refinery replacing the Bontang refinery in East Kalimantan.

Pertamina's Investment Planning and Risk Management Director Heru Setiawan explained that one of the plans to relocate the project was due to consideration of the replacement of the new refinery development partner.

Overseas Oil and Gas (OOG) Llc

At present the partners who have signed a partnership in the Bontang GRR development project are an oil and gas company from Oman, Overseas Oil and Gas (OOG) Llc.

It is planned that Pertamina will move the GRR development project from Bontang in East Kalimantan to Kuala Tanjung or Arun in Aceh by cooperating with prospective new partners. 

     According to him, the two regions were chosen because they have aspects of land availability. In addition to the location of Kuala Tanjung and Arun, the company is considered closer to the international market.

Nicke Widyawati

Meanwhile, Pertamina's GRR project has so far not yet reached the construction stage. Previously, Pertamina President Director Nicke Widyawati acknowledged the option to replace partners in the construction of the Bontang refinery.

Nicke Widyawati

Nicke Widyawati said that his party was still looking for other partnership options considering that there were several things that prevented the previous option. Nicke said initial work was still being carried out while Pertamina re-elected partners.

Luhut Binsar Pandjaitan

Meanwhile Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan gave a signal that the development of the Bontang refinery project will involve investors from the United Arab Emirates.

"Partners in the East Kalimantan Bontang Refinery are very changeable. So later investors from Abu Dhabi can enter. "

Bisnis Indonesia, Page-23, Tuesday, March 3, 2020

Pertamina EP Drilled Nine Wells

PT Pertamina EP succeeded in completing the drilling of nine development wells and has even contributed to oil production in January 2020. Pertamina EP President Director Nanang Abdul Manaf said the nine wells came from four Pertamina EP assets.

PT Pertamina EP

"Each of the wells from asset-1, asset-2, and asset-3 as well as six wells from asset 5. Some of the wells drilled at the end of December 2019 were already producing in January, he explained.

The asset-1 well, the Bentayan-Ramba Well, contributes to oil production of 20 barrels per day (BPD). Then well-pavilion-Pendopo from asset-2 with a production of 50 BPD, and one oil and gas well from asset-3, namely Cemara Timur Cemara-Jatibarang with oil production 728 BPD and gas 5 million standard cubic feet per day (mmscfd). 

    Pertamina EP also completed drilling of six wells on asset 5. The six wells are Sangatta Well with 530 BPD production, Bunyu Well (B-203) with 457 BPD production and Bunyu Well (B-204) of 207 BPD.

"Two dives of the Tanjung Una-Sangasanga Well with a production of 308 BPD and the Louise Well of 577 BPD," said Nanang.

As of January 2020, Pertamina EP oil production reached 80,925 BPD and 965 mmscfd gas. KONTAN Note, Pertamina EP projects oil production of 85,000 bopd and 932 million mmscfd of gas this year.

Kontan, Page-14, Monday, March 2, 2020

Pertamina EP Cepu Wins International Award

PT Pertamina EP Cepu (PEPC), a subsidiary of PT Pertamina (Persero) received a prestigious international award from Project Financing International (PFI).

PT Pertamina EP Cepu (PEPC)

The award was given at the 2019 PFI Award some time ago in London, England. At the event, the award held by PFI named PEPC as the Asia Pacific Oil and Gas Deal of the Year.

Nicke Widyawati

The awarding ceremony was attended by Pertamina's President Director Nicke Widyawati and PEPC Managing Director, Jamsaton Nababan, "said PEPC Public Administration (PGA) Government Manager Edi Purnomo, Friday (2/28/2020).

According to him the award was obtained because of the success of PEPC in obtaining project financing for the Jambaran-Tiung Biru Unitization (JTB) Gas Development Project as a whole.

Project financing can be completed in less than six months from the issuance of Project Info Memo (PIM) and Request for Proposals (RFP) on 30 January 2019 with Financial Close on 13 June 2019. 

     Project Financing The JTB project undertaken by PEPC is also one of the projects the first to combine conventional funding with Islamic funding, with a total funding value of USD 1.8 billion, consisting of conventional USD 1.7 billion and USD 100 million sharia (Wakala).

The financial institutions which are incorporated in the JTB Project Financing consist of eight international banks and four domestic banks. International banks that participated were the Bank of China, CIMB, DBS, Intesa Sanpaolo, Maybank, MUFG, Milbank, and SMBC.

"While the domestic financial institutions involved are Bank Mandiri, Bank Negara Indonesia, BTPN and Bank Rakyat Indonesia. The JTB project has been designated by the Government of Indonesia as one of the National Strategic Projects with gas production that will be distributed through Pertagas's Gresik-Semarang Gas Pipeline for use in the country, "said the former lecturer at the Faculty of Communication at Dr. Soetomo University in Surabaya.

JTB will have a production capacity of 330 MMSCFD (raw gas) with gas sales of 192 MMSCFD. The scope of work of the JTB Gas Project includes Land Acquisition that has been completed, Early Civil Work (ECW) which has also been completed.

JGC Corporation

The scope of work currently underway is the drilling of six gas wells carried out by Pertamina Drilling Services Indonesia (PDSI) which is a subsidiary of Pertamina (Persero) and the construction of the Gas Processing Facilities (GPF) conducted by the Consortium of PT. Industrial Engineering, PT. JGC Indonesia and JGC Corporation.

"The JTB Gas Project is scheduled for completion in 2021," he added

Duta Masyarakat, Page-16, Saturday, Feb 29, 2020.