JAKARTA (TheInsiderStories) – PT Pertamina EP Cepu (PEPC), a subsidiary of state-owned energy producer, PT Pertamina get funds of US$1.85 billion from a consortium of 12 banks to finance the Jambaran-Tiung Biru (JTB) project, said the company on Friday (08/02).
For information, PEPC is assigned to oversee the development and operation of projects that have been designated by the Government as National Strategic Projects.
It said, this transaction lead by MUFG Bank, a commercial bank under Japan’ Mitsubishi UFJ Financial Group, Inc., involving 12 banks including three state-owned banks, PT Bank Rakyat Indonesia (IDX: BBRI) , PT Bank Mandiri Tbk (IDX: BMRI), and PT Bank Negara Indonesia Tbk (IDX: BBNI).
The business agreement has a hybrid financing structure, which combines conventional financing and Islamic financing under a trustee borrowing scheme. Each tranche, conventional and sharia, provides project financing facilities with two tenors, 10 and 15 years.
“The syndicated trust of 12 banks towards PEPC in managing the JTB Project shows the credibility of PEPC in the eyes of international financial institutions. That can be an example for other project financing schemes managed by Pertamina’s subsidiary,” said Pertamina in a written statement.
According to PEPC’ CEO, Jamsaton Nababan, until first semester of 2019, the progress of the JTB Unitization Gas Field Development project consists of developing proven gas reserves as well as the construction and operation of gas processing facilities and pipelines in East Java.
The project with a production capacity of 192 MMSCFD of gas sales and 2.5 trillion cubic feet (TCF) of gas reserves is targeted to operate in 2021. The JTB project is very instrumental in upholding national energy sovereignty because the gas produced will be channeled through the Gresik-Semarang transmission pipeline, managed by PT Pertamina Gas, another Pertamina’ unit, to be a mainstay in meeting demand in the Central and East Java regions.
The gas will be supplied to the Tambak Lorok Gas and Steam Power Plant in Central Java and the Java-3 Gas and Steam Power Plant in East Java and is targeted to generate 779 MW of electricity, as part of the 35 Gigawatt power plant mega project.
While, the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) believed that investment in the upstream oil and gas industry will rise after the government began a regular tender for the third phase of conventional oil and gas working areas in 2019.
The chief Dwi Soetjipto said in an official statement on Sunday (08/04), at least 42 main oil and gas projects with a total investment of $43.3 billion will be realized until 2027. The projects are expected to have a total production of 1.1 million barrels of oil equivalent (MBOE) consisting of 92.1 thousand barrels of oil and 6.1 billion cubic feet per day of natural gas.
Furthermore, he added, there are 10 potential areas to develop namely Mesozoic Play in North Sumatra, Basin Center in Central Sumatra, Fractured Basement Play in South Sumatra, Offshore Tarakan, NE Java-Makassar Strait, Kutai Offshore, Buton Offshore, Northern Papua (Plio-Pleistocene & Miocene Sandtone Play), Bird Body Papua (Jurassic Sandstone Play), and Warim in Papua.
So far, he said, the government has approved 13 investment plans to develop oil and gas fields as of June 30. The projects are expected to increase oil and gas deposits to 132 MBOE. The figure will add to reserve replacement ratio of 23.85 percent of the target of 100 percent in the 2019 State Budget.
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