Development of Timor Gap depot put on hold<\/p>\n
JAKARTA (JP): PT El Nusa, a subsidiary of state oil and gas
\ncompany PT Pertamina, has put on hold the development of a
\nlogistical depot in Kupang, East Nusa Tenggara, designed to
\nsupport oil and gas exploration in the Timor Gap, due to lack of
\nfunds.<\/p>\n
El Nusa president Aswad Dipo said the US$9.1 million project
\nwas 80 percent complete when it was put on hold in April.<\/p>\n
\"We are now waiting for a new investor to inject fresh funds,\"
\nAswad said during a hearing with House of Representatives
\nCommission V for mines and energy, industry and trade, manpower,
\nenvironment, investment and cooperatives.<\/p>\n
The project is being developed by PT Timor Nusa Adipersada,
\nwhich is 70 percent owned by El Nusa and 30 percent by PT Sarana
\nGraha.<\/p>\n
A group of local banks, led by IFI Bank, initially agreed to
\nprovide the $9.1 million loan for Timor Nusa, but could only
\nextend $4.8 million due to the monetary crisis, Aswad said.<\/p>\n
Japanese oil contractor Japex has expressed an intention to
\ninject supporting funding into the project in return for a 20
\npercent stake but has yet to realize the proposal.<\/p>\n
Aswad said the project was designed to compete with oil and
\ngas logistical depots in Darwin, Australia, to capitalize on
\ngrowing oil and gas operations on the Timor Gap.<\/p>\n
The oil and gas-rich Timor Gap, located in the Timor Sea
\nseparating Timor island and Australia, is co-owned by the
\nIndonesian and Australian governments.<\/p>\n
Several oil and gas contractors are operating in the area,
\nincluding a consortium involving Phillips Petroleum Co. Ltd. and
\nBroken Hill Pty. (BPH) Co. Ltd. in the Bayu Undan field
\ncontaining 350 million barrels of hydrocarbon liquid and three
\ntrillion cubic feet of natural gas.<\/p>\n
BHP and its partners are also developing the Elang and Kakatua
\noil fields in the area containing 15 million stock tank barrels.<\/p>\n
Maintenance<\/p>\n
Aswad also said El Nusa was currently suffering cash flow
\nproblems because Pertamina had yet to pay Rp 260 billion (US$18.5
\nmillion) to the company in fees for maintaining its refineries.<\/p>\n
He said the maintenance fees initially totaled Rp 410 billion
\nbut Pertamina had already paid Rp 150 billion.<\/p>\n
\"We have notified Pertamina that we will stop maintaining the
\nrefineries if it does not pay the arrears in the near future,\"
\nAswad said.<\/p>\n
Pertamina has said it has arrears amounting to $800 million to
\noil and fuel importers, shipping companies, gas and other
\ncontractors. The company said it could not meet its financial
\nobligations because the government has yet to reimburse it for
\nfuel subsidies amounting to Rp 11 trillion.<\/p>\n
El Nusa has signed contracts with Pertamina to maintain seven
\nof its nine refineries for two years, until next year.<\/p>\n
El Nusa, which is among Pertamina's most profitable
\nsubsidiaries, is 51.5 percent owned by Pertamina and 48.5 percent
\nby PT Tridaya Esta. Tridaya Esta is 50 percent owned by former
\npresident Soeharto's son Bambang Trihatmodjo. Bambang reportedly
\nsold his stake in Tridaya Esta to PT Cakrawala Tata early this
\nyear. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/development-of-timor-gap-depot-put-on-hold-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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