JAKARTA. Five gas sales and purchase agreements (PJBG) with a state revenue potential of Rp 7.7 trillion (US$617 million) have been signed during the opening of International Indonesia Gas Conference and Exhibition (Indogas) in Jakarta on Tuesday.
“It’s a major step for the upstream oil and gas sector in prioritizing domestic demands,” Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Amien Sunaryadi said as quoted by Antara news agency in Jakarta on Tuesday.
The Energy and Mineral Resources Ministry’s acting director general for oil and natural gas, I Gusti Nyoman Wiratmaja, and state oil and gas company PT Pertamina (Persero) director, Dwi Sutjipto, were present in the signing ceremony.
Amien said all parties could hopefully give their support so that the distribution of gas from the signed five agreements could run well. With such a situation, state revenue potentials expected this year could be fully realized, concerning that the gas absorption by buyers was lower than commitments in 2014.
“There is a production loss potential of 95 million standard cubic feet per day (mmscfd) or equal to 17,000 barrels of oil per day,” he said.
Since 2013, the domestic gas supply has increased by 9 percent per year. In 2013, the volume of gas to meet domestic demands was higher than for exports.
“In 2015, the commitment for domestic demands has reached 4,403 billion British thermal units (BBTUD) or 61 percent of the total production while for exports, it reaches only 2,836 BBTUD,” said Amien.
The agreements signed include a gas supply agreement for fertilizer production between oil and gas company PT Medco E&P Malaka and Pertamina (Persero) with a total gas supply of 58 BBTUD for 13 years and a PJBG amendment for electricity needs between Conoco Phillips (Grissik) Ltd and PT Energasindo Heksa Karya with a total gas supply of 44 BBTUD for 10 years.
The other agreements are a PJBG amendment between Vico OBM Ltd and state electricity firm PLN (Persero) with a total supply of 0.5 mmscfd for a five-year contract period and a PJBG amendment between Pertamina Hulu Energi North West Java Offshore (PHE ONWJ) and Pertamina (Persero) Balongan Unit with a total gas supply of 20 BBTUD for two years.
The last agreement is a PJBG amendment between PT Medco E&P Indonesia and Mura Energi with a contract period of 11 years and seven months, in which the gas supply for the first two years amounts to 1.8 BBTUD and 2.5 BBTUD for the following year.
