BUSINESS

ExxonMobil Wants US$121 Million for its JTB Field Ownership

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State-owned energy company Pertamina Massa Manik (center), accompanied by upstream director Syamsu Alam (left) and finance and corporate strategy director Arief Budiman, speaks to journalists on Aug. 16. (Antara/Widodo S Jusuf)

United States oil producer ExxonMobil has set a price of US$121 million for state-owned energy giant Pertamina to acquire its 45 percent participating interest in the Jambaran-Tiung Biru (JTB) field in Central Java.

State-owned energy company Pertamina Massa Manik (center), accompanied by upstream director Syamsu Alam (left) and finance and corporate strategy director Arief Budiman, speaks to journalists on Aug. 16. (Antara/Widodo S Jusuf)

At present, the JTB field is jointly owned by several parties, including Pertamina subsidiary PT Pertamina EP Cepu (PEPC) with 45 percent interest and local government-owned enterprises with 10 percent. ExxonMobil holds the remaining 45 percent shares.

The Energy and Mineral Resources Ministry has mandated PEPC to take over ExxonMobil’s stake in the JTB field, slated to be on stream in 2020 with a total investment value of $1.55 billion.

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“ExxonMobil has stated that its participating interest is worth $121 million and we’re still evaluating it,” Pertamina upstream director Syamsu Alam said Wednesday in Jakarta.

The JTB field is expected to produce at least 172 million standard cubic feet per day (mmscfd) within a period of 16 years, 100 mmscfd of which will be sold to state electricity firm PLN for $7.6 per million British thermal units (mmbtu) to support the company’s operations in Gresik, East Java.

Initially, PLN was only willing to pay $7 per mmbtu for the gas at its plant gate in Gresik, while PEPC wanted $7 per mmbtu at its wellhead at JTB field.

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Another 72 mmscfd of gas from JTB field will be used to support industrial activities in Central Java and East Java. (bbn, Viriya P. Singgih, The Jakarta Post)

 

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