PetroChina Officially Begins Jabung PSC Extension Period 2023-2043

09 March 2023 by
Lutfi Rakhmawati

PetroChina International Jabung Ltd., as Production Sharing Contractor (PSC) under the monitoring and supervision of SKK Migas, has officially begun its PSC extension period as operator of Jabung Working Area in Jambi Province for the period of 2023-2043 on Monday, 27 February 2023.

The Inauguration Ceremony of 2023-2043 Jabung Working Area Operation Continuation was held in Geragai Camp, Tanjung Jabung Timur Regency, Jambi Province on Monday night (27/2). Attending the event were PetroChina Indonesia President Director Qian Mingyang; SKK Migas Deputy of Exploration, Development and Working Areas Management Benny Lubiantara; SKK Migas Southern Sumatra Representative Office Head Anggono Mahendrawan; and Jambi Province Regional Secretary Sudirman on behalf of Jambi Governor Al Haris. PetroChina’s partners, namely PT Pertamina Hulu Rokan Zona 1 General Manager Muzwir Wiratawan, PT GPI Jabung Indonesia Director Peter Reinhart and PETRONAS Carigali Indonesia President and Country Head Yuzaini Md Yusof were also in attendance.

In his speech, Qian on behalf of PetroChina’s management and all Jabung workers, conveyed his gratitude to SKK Migas, Jabung partners and all stakeholders for their support and collaborative spirit in managing Jabung in the coming year.

“PetroChina is very honored indeed for the opportunity to continue the operatorship of Jabung Block for the period of 2023-2043. Today is the beginning of another journey for Jabung Block to record greater success,” Qian said.

PetroChina has operated Jabung Working Area since 2002 and has booked stable average daily production of above 50,000 BOEPD since 2006. “Jabung Block will be building energy pillars contributing to support Government’s target of 1 million BOPD and 12 billion SCFD in 2030. Such massive target is challenging yet it is critical to guard Indonesia’s energy resilience,” he affirmed. “This is consistent with PetroChina’s vision, namely to support Indonesia’s energy security through PetroChina’s sustainable development.”

In managing Jabung Block, PetroChina will continue to place safety of operations and workers as its top priorities. “Furthermore, Jabung Block will surely be experiencing production challenges due to aging reservoir depletion. PetroChina is committed to using the latest technologies to overcome such challenges,” Qian added.

Jabung’s first PSC was signed in 1993 for a period of 30 years. In this period, Jabung has booked cumulative production of over 405 MMBOE and created jobs for over 50,000 people.

PetroChina officially obtained contract extension as Jabung Working Area operator for 2023-2043 period in 2021. Under SKK Migas’ monitoring, PetroChina will continue to operate Jabung Working Area with PT Pertamina Hulu Energi Jabung, PT GPI Jabung Indonesia, dan PETRONAS Carigali (Jabung) Ltd. as partners.

In connection with the official start of Jabung Working Area’s contract extension period, Qian also held meetings with several of the company’s stakeholders in Jambi Province, including Jambi Governor Al Haris and Tanjung Jabung Barat Regent Anwar Sadat, to ensure local government’s support for Jabung’s continued operations.

In his speech during the inauguration event, Benny said that SKK Migas appreciated Jabung as among the working areas with most significant contribution to national oil and gas production. “Currently, Jabung ranks seventh in oil and gas production among PSCs in Indonesia. Moving forward, we will have many targets to achieve and SKK Migas awaits Jabung’s bigger role in increasing productions and using the latest technologies,” he said.

In 2022, PetroChina recorded daily average lifting realization of 15,618 BPD of oil and condensate and 173 MMSCFD of gas.

Lutfi Rakhmawati March 9, 2023
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