The History of Oil and Gas in East Java

Period Before Independence day
Oil and gas produced in onshore East Java since 1887. History records that the first field production was Kuti’s field which produced since 1888.

After the industrial revolution in European at the 19th century, demand of oil rise sharply. In the period 1888-1938 in East Java, including Madura Island, was found about 34 fields with a total of 1,773 wells were drilled.

All fields were operated by Netherlands. When the Japanese invaded Indonesia, many data were destroyed by Netherlands to avoid the exploitation of the Japanese occupation. In 1926, the largest discovery occurred in Kawengan field, until now the field is still production.

Period of Pertamina
After independence day of Indonesia, in 1972 the government encouraged further exploration activities handled by Pertamina as the only national company of oil and gas industry.

Between 1972 and 1982, Pertamina were drilled 7 wells, 6 wells were formed to penetrate Kujung formation. Only Ngimbang-1 Well that was little indication of gas, while almost all others dry hole (dry, not oil found).

Exploration in East Java is started again when the Trend, one of the foreign partner of Pertamina signed a Joint Operating Agreement (JOA) in Tuban – Surabaya Block on February 29, 1988.

In 1991, Trend were drilled 5 wells which one is Gondang-1. Furthermore Trend renamed Devon and further became PetroChina. The other fields found were: Mudi Field (Tuban Block) by JOB Pertamina PetroChina East Java (PPEJ). Pegerungan field, the Terang Sirasun Batur field (Kangean Block) by ARCO

BD Field (Husky Madura Strait Block) by Mobil Madura Strait and Husky Oil Madura. The fifth field (West Madura Offshore Block) by Kodeco and Pertamina. Bukit Tua field (Ketapang Block) by Gulf Resources. Ujung Pangkah field (Ujung Pangkah Block) by Amerada Hess.

Responding to the above subject and to raise revenues in the oil and gas sector, for the short-term purposes, The East Java Province Government appointed Regional Owned Enterprises (BUMD), PT. Panca Wira Usaha to establish a subsidiary company engaged in oil and gas.

PT. Petrogas Wira Jatim was established on February 21, 2003 with main purpose to get every opportunity activities of oil and gas in East Java, both upstream and downstream sectors. And especially to get Participating Interest (PI) 10% in Cepu Block, Madura Offshore Block, Sampang Block, and surrounding areas.

For a company which has enterprises status, it needs Regional Regulation (Perda) as the basis for its establishment, and as a result of the discussion between East Java DPRD and the Governor of East Java, in 2006 PT. Petrogas Jatim Utama was established, which subsequently acquired PT. Panca Wira Jatim as subsidiaries.

PT. Petrogas Jatim Utama was established on August 1, 2006 by Regulation No. 1 Year 2006, with No. 02 by Notary Deed Kosidi Wirjohardjo H SH and authorized by SK Menteri Kehakiman RI No. W10-00111 HT.01.01-TH.2006 on 25 September 2006, and then changed by Regulation No. 9 Year 2015 concerning the Second Amendment Bylaw No. 1 Year 2006 about PT. Petrogas Jatim Utama.

Subsidiaries of PT. Petrogas Jatim Utama:

PT. Petrogas Jatim Utama Cendana (PJUC)
Established on March 14, 2007. Share ownership of PT. PJU was 50.6%, PT. Raharja Energi Cepu was 49% and Kopkar Dipertam Jatim was 0.4%.

PT. Petrogas Pantai Madura (PPM)
Established on May 25, 2005. Share ownership of PT. PJU is 25.50%, PT. Wira Usaha Sumekar (Sumenep Regency Government) 25.50 % and PT. Barito Pacific Tbk 49.00%.

PT. Petrogas Jatim Sumekar (PJS)
Established on December 5, 2018. Share ownership of PT. PJU 51% and PD. Sumekar (Sumenep Regency Government) 49%.

PT. Petrogas Jatim Sampang Energi (PJSE)
Established on December 5, 2018. Share ownership of PT. PJU 51% and PT. Geliat Sampang Mandiri (Sampang Regency Government) 49%.

PT. Petrogas Jatim Adipodai (PJA)
Established on May 14, 2019. Share ownership of PT. PJU 51% and PD. Sumber Daya (Bangkalan Regency Government) 49%.

PT. Petrogas Jatim Mineral (PJM)
Established on October 30, 2019. Share ownership of PT. PJU 95% and Kopkar Dipertam Jatim 0.5%.

PT. Petrogas Wira Jatim (PWJ)
Established on February 21, 2003. The current share ownership of PT. PWJ is PT. PJU 61.69%, PT. DABN 37.68% and Kopkar 0.37%.

PT. Jatim Energy Services (JES)
Established on January 28, 2006. PT. PJU’s shareholding was 73.32%, PT. Capito Haes was 24.85% and PT. Delta Anugerah Bhakti Nusantara was 1.83%.

PT. Delta Artha Bahari Nusantara (DABN)
Established on April 27, 2000. Share ownership 82.51% PT. PJU and 17.49% PT. Jatim Energy Services.

PT. Delta Artha Bahari Nusantara and PT. Jatim Energy Services are subsidiaries of PT. Petrogas Jatim Utama based on the merger process of PT. Jatim Investment Management in PT. Petrogas Jatim Utama, as stated in the East Java Regional Regulation (Perda) No. 15 of 2016 concerning the Merger of PT. Jatim Investment Management into PT. Petrogas Jatim Utama, dated 22 December 2016. (*)