REPUBLIKA.CO.ID, JAKARTA -- Five gas sales and purchase agreements (PJBGs) with state revenue potential worth Rp7.7 trillion, or US$617 million, were signed during the opening of the International Indonesia Gas Conference & Exhibition (Indogas) here on Tuesday.
"It is a concrete move for the upstream oil and gas sector to prioritize the domestic needs," Head of Upstream Oil and Gas regulatory special task force (SKK Migas) Amien Sunaryadi stated here on Tuesday.
Besides Sunaryadi, the conference was attended by Acting Director General of Oil and Gas Ministry of Energy and Mineral Resources (ESDM) I. Gusti Nyoman Wiratmaja and President Director of PT Pertamina Dwi Sutjipto.
Sunaryadi is optimistic that all parties can offer support to manage the gas distribution from the five signed PJBGs.
Thus, the expected potential revenue will be realized, in view of 2014, when the absorption of gas by the buyer was lower than the commitments.
"The potential loss of production is about 95 million standard cubic feet per day (MMSCFD) or equal to 17 thousand barrels of oil per day," he affirmed.
Previously, SKK MIGAS committed to increase the supply of domestic gas.
Since 2003, the domestic gas supply increased by an average of 9 percent per year. In 2013, the gas volume to fulfill the domestic needs was greater than the exports.
"In 2015, the commitment for domestic supply is expected at 4,403 billion British thermal unit per day (BBTUD) or 61 percent of the supply, while the exports are expected to reach 2,836 BBTUD," Sunaryadi remarked.
The first of the five signed PJBGs was between PT Medco E&P Malaka and Pertamina for meeting the fertilizer needs, with a supply of 58 BBTUD for a period of 13 years.
The second one is the amendment of PJBG between Conoco Phillips (Grissik) Ltd. and PT Energasindo Heksa for meeting the electricity needs, with a supply of 44 BBTUD for a period of 10 years.
The third PJBG is signed between Vico OBM Ltd. and PT PLN (Persero) for a period of five years to supply 0.5 MMSCFD.
The fourth PJBG between PHE ONWJ and PT Pertamina (Persero) Processing Unit VI-Balongan was inked for meeting the needs of petroleum refineries' fuel for a period of two years and a supply of 20 BBTUD.
PHE ONWJ Executive Vice President Jonly Sinulingga stated that the entire production of PHE ONWJ will be used to meet the domestic needs, such as for the power plant in Jakarta and the surrounding areas, as raw material for fertilizers, and as gas fuel for transportation.
Moreover, the supply to the Processing Unit VI-Balongan is being derived from Lapangan GG through the Balongan Onshore Processing Facility.
"Lapangan GG is a new field that was commissioned on December 12, 2014," Sinulingga noted.
And the fifth PJBG, the amendment between PT Medco E&P Indonesia and PD Mura Energi, is an agreement for a period of 11 years and 7 months for the supply of 1.8 BBTUD for the first two years and then increasing to 2.5 BBTUD.
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