Under the supervision of upstream oil and gas regulator SKK Migas, PetroChina will continue to operate the working area with PT Pertamina Hulu Energi Jabung, PT GPI Jabung Indonesia, and PETRONAS Carigali (Jabung) as its non-operator partners. On Nov. 12, SKK Migas, PetroChina and its Jabung Working Area partners signed the amended Jabung PSC.

PetroChina, owned by China National Petroleum Corporation (CNPC), has operated the Jabung Working Area since 2002, after acquiring the block from Devon Energy Companies. Under PetroChina’s operatorship, Jabung has become one of the most productive oil and gas blocks in Indonesia.

“Indonesia became PetroChina’s first choice when we began the foreign investment projects in 2002. For that, this country will always have a special place for CNPC. We are grateful for the solid partnership with the government during all these years,” PetroChina Indonesia’s president Qian Mingyang said.

Qian said that PetroChina was confident that the technology and Jabung Working Area’s human resources would support the government’s target of 1 million barrels of oil per day (bopd) and 12 billion standard cubic feet per day (bscfd) in 2030. In September of this year, the average daily production was recorded at 58,081 barrels of oil equivalent per day (boepd), higher than the 2021 target of 57,460.

The average daily production of PetroChina has been maintained above 50,000 boepd since 2006. As of 2020, Jabung Working Area has produced a total of 362.22 millions of barrels of oil equivalent (mmboe) of oil, gas and condensate. That same year, the area was named one of Indonesia’s top performing blocks, ranked seventh in oil and condensate lifting with 15,928 bopd and ranked eighth in gas lifting with 171 million standard cubic feet per day (mmscfd). The oil and condensate lifting was 5 percent higher than 15,157 bopd target set in the state budget revision (APBNP), and the gas lifting was 4 percent higher than the target of 164 mmscfd.

“Thanks to the hard work and dedication of all the Jabung workforce and advanced technology applied in the Jabung Working Area, we’ve successfully managed stable production for years. Our operations have also boosted the development around our working area,” Qian continued.

PetroChina completed the construction of West Betara (WB) Non-Associated Gas (NAG) Compression and Condensate Pumping System in Tanjung Jabung Barat in August. At full capacity, the facility is expected to produce 30 mmscfd of gas to support Jabung’s production target. 

Empowering Indonesian Community

PetroChina invested a total of US$5.71 billion and allocated more than $20 million for social investment programs in Indonesia between 2002 and 2020.

“We attribute the Jabung Working Area’s success to the support and positive reception of people around Jabung. Therefore, we give back to the communities by designing social investment projects that benefit them and develop their potential,” he explained.

The company has also had a good rapport with the people around the working area, working closely with governments, local communities, NGOs and academic communities to create economic, health, educational, environmental, infrastructure, disaster-relief and development of indigenous community empowerment programs.

The company’s water-filtration program has provided clean water for people in 32 villages across Jambi over the years. In terms of social relief, PetroChina supported the reconstruction process following the 2004 Aceh tsunami, 2006 Jogja earthquake and 2018 Palu tsunami and liquefaction.

Moreover, PetroChina began a sustainable agricultural program for a group of coffee farmers in Betara, Tanjung Jabung Barat in 2015. After five years, it has evolved into a coffee shop and community center, as well as coffee-based ecotourism.

PetroChina’s commitment to the local community has been more evident than ever during the pandemic.

“Amid the COVID-19 pandemic, PetroChina has collaborated with state institutions in channeling donations and assistance, including oxygen cylinders and regulators, personal protection equipment for health workers and staple food packages for community members,” Qian explained.

PetroChina began its COVID-19 vaccination for employees in its Jakarta office and in the Jabung field in April, as part of the global fight against the current pandemic. “Now, most of our employees in Jakarta and Jabung are fully vaccinated,” Qian added.

PetroChina has also worked together with various stakeholders in providing COVID-19 vaccination programs for local people around the Jabung Working Area. 

Awards and accolades

The work PetroChina has done for the Jabung community has not gone unnoticed by the government. The company’s indigenous community empowerment program for the Suku Anak Dalam people in Jambi won the Padmamitra Award from the Social Affairs Ministry in 2020.

The company also received the Patra Nirbhaya Karya Utama Adinugraha II safety award from the Energy and Mineral Resources Ministry in 2021, for prioritizing the health and safety of its workers and securing 66 million safe working hours since 2011.

Moreover, PetroChina became the first production sharing contractor to receive the Gold Reward certification for Security Management Systems from the National Police’s security maintenance agency (Baharkam Polri) in December 2020.

Also in 2020, the company received two Blue PROPER Awards for its Betara gas field and Geragai oil field from the Environment and Forestry Ministry. For maintaining and improving its health and safety performance, PetroChina received the Occupational Safety and Health Management System award from the Manpower Ministry.

“We have completed the migration from OHSAS 18001 to ISO 45001: 2018 Occupational Health and Safety, which is integrated with ISO 14001: 2015 Environmental Management,” Qian explained.

The company was among the first oil and gas companies in Indonesia to receive the ISO 37001:2016 Anti-Bribery Management System (ABMS) certification in early 2020. It signifies that PetroChina Jabung has met the SNI ISO 37001-2016 ABMS standard requirement for exploration and exploitation of oil and gas.  

History

The contract for the Jabung Working Area was initially signed in 1993 for a period of 30 years. The block recorded its first oil discovery in North Geragai Field in Tanjung Jabung Timur in 1995 and achieved first production in 1997.

In 1999, PetroChina was established as a joint stock company with limited liabilities by CNPC. The company branched out abroad in 2002, taking over the Jabung Working Area as its first overseas project. Today, with its vision of “One Company One Dream,” PetroChina Indonesia reaffirms its existence in expanding its business in the country’s oil and gas industry and to continue its full support for government programs in Indonesia during the extended Jabung Working Area operation.

 “We will show our gratitude by maximizing Jabung Block’s potential during the extension period and we are ready to participate in other working areas in Indonesia if given the opportunity,” Qian said, reiterating his hope for more cooperation between PetroChina and the local government in the future.

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