SKK Migas Discuss Chevron's Revision of Makassar Strait

Special Unit for Upstream Oil and Gas Activities (SKK Migas) supports ESDM Minister Ignasius Jonan's step to ask Chevron Indonesia to immediately work on the Indonesia Deepwater Development (IDD) or ultra-sea project in phase 2 in Makassar Strait (not the Strait of Malacca) yesterday's news.

Indonesia Deepwater Development (IDD)

Proclaimed earlier, Jonan urged Chevron to make IDD stage 2 immediately done. If not, Jonan threatened to stop the talks on the extension of the Rokan block, Riau, filed by Chevron.

the Rokan block, Riau, - Chevron

"SKK Migas will be ready to run the direction of the Minister of Energy and Mineral Resources related to IDD," said Head of Program and Communication Division of SKK Migas, Wisnu Prabawa Taher, when contacted yesterday.

Blogger Agus Purnomo in SKK Migas

Chevron's commitment to work on IDD 2, said Wisnu, will be emphasized in the discussion of the proposed plan of development (POD) proposal proposed by Chevron last weekend. He called the revision of the proposed PoD IDD phase 2 for three blocks of oil and gas, namely Makassar Strait, Rapak, and Ganal. 

The Rokan Block By Chevron

    However, he was reluctant to explain the details of the proposed revision because it is still under discussion from Chevron, SKK Migas, and the ESDM Ministry led by Deputy Minister of Energy and Mineral Resources, Arcandra Tahar.

"The proposals will still be discussed in more detail. Details will be submitted pending the results of further discussion by the team, "he concluded.

Proclaimed Media Indonesia, yesterday, the government, as confirmed Jonan, urged Chevron immediately to explore the gas in the Makassar Strait. Otherwise, the government has not yet discussed gas exploration in Rokan, Riau, as wanted by the oil company from the United States. 

Michael K Wirth

    After becoming one of the speakers at the World Gas Conference in Washington, USA, Wednesday (27/6), Jonan went to Chevron's office to meet with the CEO of Chevron, Michael K Wirth. On that occasion, he asked Chevron to immediately build IDD Strait Makassar for gas exploration there.

And responding to the government's insistence, Senior Vice President of Government Policy and Public Affairs of Chevron Indonesia Company Yanto Sianipar said it has submitted a development revision for gas exploration in the region.

Media Indonesia, Page-13, Tuesday, July 3, 2018

ExxonMobil Completes Purchase of Federal Karyatama US $ 436 Million

ExxonMobil has completed the purchase of PT Federal Karyatama (FKT) with a value of US $ 436 million. With this acquisition, ExxonMobil becomes owner of Federal Oil trademark and lubricant with a capacity of 700 thousand barrels per year in Cilegon.

Vice President of ExxonMobil Finished Lubricants RUSS Green said Indonesia is one of the fastest growing lubricant markets in Asia. The purchase of Federal Oil will complement ExxonMobil's lubricant business in Indonesia.

"Federal Oil's expertise in motor lubrication complements the Mobil lubricants trademark in other sectors where ExxonMobil is highly experienced will help us to grow and provide the best service to consumers in Indonesia," he said in an official statement.

  

Federal Karyatama purchases include Federal Oil trademarks, distribution networks, and lubricant manufacturing plants. Federal Karyatama and its distribution network are supported by around 40 dealers, 3,200 Federal Oil Centers, and more than 10 thousand retailers in Indonesia. 

     Federal Karyatama also has a lubricant factory with a capacity of 700 thousand barrels per year in Cilegon. Thus, the acquisition of the company will strengthen ExxonMobil's position in a rapidly growing market and will strengthen the trademark of Mobil lubricants in Indonesia. ExxonMobil will manage existing Car lubricant trademarks in Indonesia and FKT businesses.

"Federal Oil is a quality trademark with a long history in Indonesia. The knowledge and experience of FKT employees and dealers will play an important role in achieving a large market, "he said, said ExxonMobile Indonesia President Louise Mc Kenzie.

Previously, Vice President of Public and Government Affairs of Exxon Mobil Indonesia Erwin Maryoto explained, currently the oil and gas company from the United States has been marketing special lubricant four-wheeled vehicles with the Mobill brand. The acquisition of Federal Oil makes the company has a two-wheeled lubricant market in Indonesia. Thus, the business of ExxonMobil lubricants in Indonesia will be even greater.

"It will increase significantly because Federal Oil has a large market share," he said

Settlement of Transactions

Meanwhile, following the announcement and information disclosure that was made on April 30, 2018 and related to material transaction of PT Mitra Pinasthika Mustika Tbk (MPMX), the leading smart mobility company in Indonesia, completed 100% strategic divestment of its stake in the lubricant business of PT Federal Karyatama FKT) to Esso Petroleum Company Limited and ExxonMobil UK Limited (ExxonMobil) for a total transaction value of US $ 436 million.

The transaction settlement is marked by the signing of the Deed of Sale and Purchase Agreement in Jakarta by and between the Company and ExxonMobil on June 28, 2018 after fulfilling all requirements for transaction settlement in the second quarter of 2018, including the approval of BOD and BOC of the Company, obtained through the Extraordinary Shareholders' Meeting (EGMS) on June 6, 2018, and approval and notification to all authorized agencies.

IN INDONESIA

ExxonMobil Rampungkan Pembelian Federal Karyatama US$ 436 Juta

ExxonMobil telah menyelesaikan pembelian PT Federal Karyatama (FKT) dengan nilai US$ 436 juta. Dengan akuisisi ini, maka ExxonMobil menjadi pemilik merek dagang Federal Oil dan pabrik pelumas berkapasitas 700 ribu barel per tahun di Cilegon.

Vice President ExxonMobil Finished Lubricants RUSS Green mengatakan, Indonesia merupakan salah satu pasar pelumas yang berkembang sangat pesat di Asia. Pembelian Federal Oil akan melengkapi bisnis pelumas ExxonMobil di Indonesia.

"Keahlian Federal Oil dalam pelumasan motor melengkapi merek dagang pelumas Mobil di sektor lain dimana ExxonMobil sangat berpengalaman akan membantu kami untuk terus berkembang dan memberikan layanan terbaik kepada konsumen di Indonesia,” katanya dalam keterangan resmi.

  

Pembelian Federal Karyatama termasuk merek dagang Federal Oil, jaringan distribusi, dan pabrik pengolahan pelumas. Federal Karyatama dan jaringan distribusinya didukung oleh sekitar 40 penyalur, 3.200 Pusat Federal Oil, dan lebih dari 10 ribu pengecer di Indonesia. Federal Karyatama juga memiliki pabrik pelumas berkapasitas 700 ribu barel per tahun di Cilegon. Sehingga, akusisi perusahaan itu akan memperkokoh posisi ExxonMobil pada pasar yang berkembang pesat dan akan memperkuat merek dagang pelumas Mobil di Indonesia. ExxonMobil akan mengelola merek dagang pelumas Mobil yang sudah ada di Indonesia dan bisnis FKT.

“Federal Oil adalah merek dagang berkualitas dengan sejarah panjang di Indonesia. Pengetahuan dan pengalaman para karyawan dan penyalur FKT akan

berperan penting untuk mencapai pasar yang besar,” ujarnya, tutur Presiden ExxonMobile Indonesia Louise Mc Kenzie.

Sebelumnya, Vice President Public and Government Affair Exxon Mobil Indonesia Erwin Maryoto menjelaskan, saat ini perusahaan migas dari Amerika Serikat tersebut telah memasarkan pelumas khusus kendaraan roda empat dengan merk Mobill. Akuisisi Federal Oil membuat perusahaan memiliki pasar pelumas kendaraan roda dua di Indonesia. Sehingga, bisnis pelumas ExxonMobil di Indonesia akan semakin besar. 

“Akan meningkat secara signifikan karena Federal Oil punya pangsa pasar yang besar,” ujarnya

Penyelesaian Transaksi

Sementara itu, menyusul pengumuman dan keterbukaan informasi yang telah dilakukan pada 30 April 2018 lalu terkait transaksi material PT Mitra Pinasthika Mustika Tbk (MPMX), perusahaan smart mobility terkemuka di Indonesia, menyelesaikan divestasi strategis 100% sahamnya di bisnis pelumas Perseroan, PT Federal Karyatama (FKT), kepada Esso Petroleum Company Limited dan ExxonMobil UK Limited (ExxonMobil) dengan nilai keseluruhan transaksi sejumlah US$ 436 juta.

Penyelesaian transaksi ini ditandai oleh penandatanganan Perjanjian Akta Jual Beli Saham di Jakarta oleh dan antara Perseroan dan ExxonMobil pada

tanggal 28 Juni 2018 setelah memenuhi semua persyaratan untuk penyelesaian transaksi di kuartal kedua 2018, termasuk di dalamnya persetujuan BOD dan BOC Perseroan, persetujuan para pemegang saham yang diperoleh melalui Rapat Umun Pemegang Saham Luar Biasa (RUPSLB) pada tanggal 6 Juni 2018, dan persetujuan dan pemberitahuan kepada semua instansi yang berwenang.

Investor Daily, Page-9, Tuesday, July 3, 2018

Pertamina has a chance

PT Pertamina (Persero) still has the opportunity to become the manager of Makassar Strait Block whose contract expires in January 2020. The Ministry of Energy and Mineral Resources gives Pertamina an opportunity to submit a proposal in Makassar Strait Working Area. The opportunity was granted because the government-owned company also holds a shareholding in one of the blocks of deepwater development (IDD).

Currently, Chevron Makassar Ltd, a subsidiary of Chevron Corporation, is the operator of Makassar Strait Block. Chevron owns 70% shares, Eni (Italian oil and gas company) of 18%, and PT Pertamina Hulu Energi 10%. 

    Deputy Minister of Energy and Mineral Resources [EMR] Arcandra Tahar said his side met with Pertamina to discuss Makassar Strait, IDD and Rokan Blocks. Pertamina has a chance to submit a proposal in Makassar Strait.

Rokan Blocks

"PHE [PT Pertamina Hulu- Energi] is also one of the existing operators in Makassar Strait," he said, Monday (2/7).

Arcandra said, referring to regulations related to the appointment of termination block managers, operators including all participating in the oil and gas working area will be given the opportunity to submit a proposal.

"Well, Pertamina also operators exist there, it means to be invited as well," he said.

Based on data from SKK Migas, oil production in Makassar Strait Block is about 1,965 barrels per day, while gas is 2.04 MMscfd. He said that Pertamina is currently in the process of submitting a proposal to manage the Makassar Strait Block.

"The decision of interest or not depends on Pertamina."

If Pertamina is interested in entering Makassar Strait Block, it could be a proposal from the company which is the holding company of BUMN oil and gas that will be compared with the proposal submitted by Chevron, Syamsu Alam did not give details about Pertamina's chance to manage Rokan Block. 

     Senior Vice President of Government Goverment and Public Affairs Chevron Yanto Sianipar is still not responding related to the confirmation of the extension of Makassar Strait Block which will be terminated in 2020.

IN INDONESIA

Pertamina Berpeluang       

PT Pertamina (Persero) masih memiliki peluang untuk menjadi pengelola Blok Makassar Strait yang kontraknya akan berakhir Januari 2020. Kementerian Energi dan Sumber Daya Mineral memberikan kesempatan kepada Pertamina untuk mengajukan proposal di Wilayah kerja Makassar Strait. Kesempatan itu diberikan karena perusahaan milik pemerintah ini juga memiliki kepemilikan saham di salah satu blok tempat proyek migas laut dalam (Indonesia deepwater development/IDD).

Saat ini, Chevron Makassar Ltd, anak usaha Chevron Corporation, menjadi operator Blok Makassar Strait. Chevron memiliki saham 70%, Eni (perusahaan migas dari Italia) sebesar 18%, dan PT Pertamina Hulu Energi 10%. Wakil Menteri Energi dan Sumber Daya Mineral [ESDM) Arcandra Tahar mengatakan, pihaknya bertemu dengan Pertamina untuk membahas Blok Makassar Strait, IDD, dan Rokan. Pertamina memiliki peluang untuk mengajukan proposal di Makassar Strait.

“PHE [PT Pertamina Hulu- Energi] juga salah satu operator eksis di Makassar Strait,” ujarnya, Senin (2/7). 

Arcandra menuturkan, merujuk pada regulasi terkait dengan penunjukkan pengelola blok terminasi, operator eksis termasuk seluruh yang berpartisipasi di Wilayah kerja migas tersebut akan diberikan kesempatan mengajukan proposal. 

“Nah, Pertamina juga operator eksis di sana, berarti boleh diundang juga,” ujarnya.

Berdasarkan data SKK Migas, produksi minyak di Blok Makassar Strait sekitar 1.965 barel per hari, sedangkan gas bumi 2,04 MMscfd. Dia menuturkan, saat ini Pertamina dalam proses untuk mengajukan proposal untuk mengelola Blok Makassar Strait. 

“Keputusan minat atau tidaknya tergantung Pertamina."

Bila Pertamina berrninat masuk ke Blok Makassar Strait, bisa jadi proposal dari perusahaan yang menjadi induk usaha BUMN migas itu akan dibandingkan dengan proposal yang diajukan oleh Chevron, Syamsu Alam tidak memberikan penjelasan detail tentang peluang Pertamina untuk dapat mengelola Blok Rokan. Senior Vice President Policy Goverment and Public Affairs Chevron Yanto Sianipar masih belum merespons terkait dengan konfirmasi perpanjangan Blok Makassar Strait yang akan terminasi pada 2020 tersebut.

Bisnis Indonesia, Page-30, Tuesday, July 3, 2018

Deep Sea Challenge Project

Minister of Energy and Mineral Resources Ignatius Jonan urged Chevron to immediately accelerate deep-sea oil and gas projects in the Indonesia Deepwater Development. However, the project's acceleration process still seems to be having some problems.

Chevron is rumored to be submitting a proposal for development plan or development of Indonesia Deepwater Development (IDD) on June 28, 2018. However, the company from the United States (US) is actually making the Ministry of Energy and Mineral Resources (ESDM) surprised when the proposal .

This is because Chevron changed the value of the project budget three times in 24 hours. The new value proposed also has a margin of more than billions of US dollars compared with the results of discussions with the ESDM Ministry in Houston, USA, in mid-May 2018. At a meeting with the EMR Ministry in the Negen Uncle Sam, Chevron will cut the project cost of approximately US $ 6 billion from total project cost plan worth US $ 12.8 billion.

EMR Deputy Minister of Energy and Mineral Resources Arcandra Tahar said Chevron's IDD proposal had already entered SKK Migas on Friday (29/6). Currently, the ESDM Ministry is evaluating POD's proposal from Chevron.

"We will evaluate the cost of the IDD development project. The government will accept Chevron's proposal if the project budget makes sense, he said, Friday (29/6).

The Ministry focuses on the cost of the proposed project because the scheme of deep sea project contracts still uses cost recovery. That means development costs will be borne by the government.

"Because IDD uses cost recovery contract scheme. If not maintained can be broken later, "said Arcandra.

In fact, Senior Vice President of Covemment and Public Affairs Policies of Chevron Indonesia Yanto Sianipar said that the study and the concept of feasibility of engineering and design work or pre-Front End Engineering and Design (pre-FEED) on IDD project have been operating well. It has been pre-FEED since December 2017.

 "Thursday has also optimized the concept of development and simplification of the design basis, making it an indication of significant reductions in development and operational costs," he said.

IDD Gendalo and Gehem Project

Meanwhile, the realization of cost recovery until May 2018 worth US $ 4.7 billion. The realization has reached 47% of the state budget target of US $ 10.1 billion. In data from SKK Migas, IDD Gendalo and Gehem Project managed by Chevron Makassar Ltd. will start on stream in 2024 and 2025. IDD Gendalo is estimated to have production of about 500 million cubic feet per day, while Gehem has a production of 420 million cubic feet per day.

CONTRACT SCREENS

Meanwhile, the IDD project has another problem which is the scheme of contract of work area connected to the project. On this issue, Chevron will dispatch a termination work contract term connected to the IDD simultaneously. Chevron IDD Project has slice area in 4 working areas namely, Makassar Strait, Ganal, Rapak, and Muara Mangrove. Well, the termination period of three of the four blocks is different.

Ganal and Rapak Working Area

Makassar Strait for example will terminate 2020, while Ganal and Rapak will terminate in 2027 and 2028. It affects the contract scheme used. Because the new contract on the termination work area should use a gross split scheme. Meaning, Makassar Strait will be terminated in 2020 and directly use gross split. 

     In fact, other IDD slices such as those in Ganal and Rampak still use cost recovery until termination 2027-2028. Arcandra admitted, the problem of three oil and gas working areas that overshadow the I.DD project is very complicated.

"It was very complicated. Later, Block Rampak and Ganal in 2027 and 2028 already using gross split "he said.

Chevron is said to be proposing a renewal of contract termination of three oil and gas regions at once. Arcandra said the US company wanted to propose at once. It was also doing an evaluation and proposal of the three work areas that have entered on Friday (29/6). 

    Chevron Yanto Sianipar Senior Vice President of Goverment and Public Affairs's Policy to Bisnis, Sunday (1/7) confirmed the company has submitted a revision of PoD.

"The revised project, which significantly reduces capital and operating costs, consists of developing Gehem, Gendalo, Gandang and Maha fields."

IN INDONESIA

Proyek Laut Dalam Penuh Tantangan

Menteri Energi dan Sumber Daya Mineral Ignasius Jonan mendesak Chevron untuk segera mempercepat proyek migas laut dalam atau Indonesia Deepwater Development. Namun, proses percepatan proyek itu tampaknya masih terhambat beberapa masalah.

Chevron dikabarkan akan mengajukan proposal rencana pengembangan atau plan of development (POD) Indonesia Deepwater Development (IDD) pada 28 Juni 2018. Namun, perusahaan dari Amerika Serikat (AS) itu malah membuat Kementerian Energi Sumber Daya Mineral (ESDM) terkejut saat pengajuan proposal tersebut.

lni karena Chevron mengubah nilai anggaran proyek sebanyak tiga kali dalam 24 jam. Nilai baru yang diajukan pun memiliki selisih lebih besar miliaran dolar AS dibandingkan dengan hasil diskusi bersama Kementerian ESDM di Houston, AS, pada pertengahan Mei 2018. Pada pertemuan dengan Kementerian ESDM di Negen Paman Sam, Chevron akan memotong biaya proyek sekitar US$ 6 miliar dari total rencana biaya proyek senilai US$ 12,8 miliar. 

Wakil Menteri ESDM Arcandra Tahar mengatakan proposal IDD Chevron pun sudah masuk ke SKK Migas pada Jumat (29/6). Saat ini, Kementerian ESDM sedang mengevaluasi proposal POD dari Chevron tersebut. 

“Kami akan mengevaluasi biaya proyek pengembangan IDD. Pemerintah akan menerima proposal Chevron jika anggaran proyek masuk akal, ujarnya.

Kementerian fokus pada biaya proyek yang diajukan karena skema kontrak proyek laut dalam itu masih menggunakan cost recovery. Hal itu berarti biaya pengembangan akan ditanggung oleh pemerintah. 

“Karena IDD menggunakan skema kontrak cost recovery. Kalau tidak dijaga bisa jebol nanti,” ujar Arcandra.

Padahal, Senior Vice President Policy Covemment and Public Affairs Chevron Indonesia Yanto Sianipar sempat mengatakan studi dan konsep kelayakan pekerjaan keteknikan dan desain atau pre-Front End Engineering and Design (pre-FEED) pada proyek IDD telah beroperasi dengan baik. Pihaknya telah melakukan pre-FEED sejak Desember 2017.

 "Kamis pun telah melakukan optimalisasi konsep pengembangan dan penyederhanaan basis rancangan. Hal itu membuat ada indikasi pengurangan biaya pengembangan dan operasional yang signifikan,” ujarnya. 

Adapun, realisasi cost recovery sampai Mei 2018 senilai US$ 4,7 miliar. Realisasi itu telah mencapai 47% dari target APBN senilai US$ 10,1 miliar. Dalam data SKK Migas, Proyek IDD Gendalo dan Gehem yang dikelola oleh Chevron Makassar Ltd. akan mulai on stream pada 2024 dan 2025. IDD Gendalo diperkirakan memiliki produksi sekitar 500 juta kaki kubik per hari, sedangkan Gehem memiliki produksi sebesar 420 juta kaki kubik per hari.

SKEMA KONTRAK

Sementara itu, proyek IDD memiliki masalah lain yakni persoalan skema kontrak wilayah kerja yang terhubung dengan proyek tersebut. Pada permasalahan ini, Chevron akan mengutus kontrak wilayah kerja terminasi yang terhubung dengan IDD secara bersamaan. Proyek IDD Chevron memiliki irisan area di 4 wilayah kerja yakni, Makassar Strait, Ganal, Rapak, dan Muara Bakau. Nah, masa terminasi tiga dari empat blok itu berbeda-beda. 

Makassar Strait misalnya akan terminasi 2020, sedangkan Ganal dan Rapak akan terminasi pada 2027 dan 2028. Hal itu berdampak kepada skema kontrak yang digunakan. Pasalnya, kontrak baru pada wilayah kerja terminasi harus menggunakan skema gross split. 

    Berarti, Makassar Strait yang akan terminasi pada 2020 dan langsung menggunakan gross split. Padahal, irisan Iapangan IDD lainnya seperti, yang berada di Ganal dan Rampak masih menggunakan cost recovery sampai masa terminasi 2027-2028. Arcandra mengakui, persoalan tiga wilayah kerja migas yang menaungi proyek I.DD itu sangat rumit. 

“Itu memang sangat complicated. Nanti, Blok Rampak dan Ganal pada 2027 dan 2028 sudah menggunakan gross split” ujarnya.

Chevron disebut akan mengajukan proposal perpanjangan kontrak terminasi tiga wilayah migas sekaligus. Arcandra mengatakan perusahaan dari AS itu ingin mengajukan sekaligus. Pihaknya pun sedang melakukan evaluasi dan proposal ketiga wilayah kerja itu sudah masuk pada Jumat (29/6). Senior Vice President Policy Goverment and Public Affairs Chevron Yanto Sianipar kepada Bisnis, Minggu (1/7) membenarkan perusahaan telah mengajukan revisi PoD.

“Revisi proyek yang secara signifikan berhasil mengurangi biaya modal dan operasi, terdiri atas pengembangan lapangan Gehem, Gendalo, Gandang, dan Maha.”

Bisnis Indonesia, Page-30, Monday, July 2, 2018

IDD deal slips again over cost issues

Four years have gone by without any deal inked between the government and United States-based oil and gas giant Chevron on the second phase of construction of the Indonesia Deepwater Development (IDD) because of changes in cost calculations.

    The Finalization of the deal will likely take longer as the government only received the final proposal on Friday, a day later than the deadline, said Deputy Energy and Mineral Resources Minister Acandra Tahar.

“Once we receive it [the proposal], we need time to evaluate it before we decide on whether to agree or decline,” he told the press on Friday, without disclosing the date for the governments approval.

The IDD, which is one of the country’s biggest gas field projects, is in the second phase of operation, which is at the Gendalo and Gehem hubs in the Makassar Strait.

Gendalo and Gehem hubs

The project in Gendalo-Gehem hub is expected to produce up to 1.12 million standard cubic feet per day (mmscfd) of gas and 47,000 barrels condensate per day (bcpd). Meanwhile, the first phase, which is located in Bangka hub, also in the Makassar Strait, has produced 85 mmscfd of gas and 2,400 bcpd of condensate, data from the Upstream Oil and Gas Regulatory Task Force (SKK Migas) shows. By 2023, the Bangka, Gendalo and Gehem hubs are targeted to produce 1,230 mmscfd of gas and 50,750 bcpd.

Arcandra said in 2014, Chevron told the government that the construction cost for the IDD project would reach US$12.8 billion. On Tuesday, it was reported the project cost would decline to around $6 billion, or roughly half of the initial estimate. However, two days later, Arcandra disappointedly told the press that the company had altered the project cost three times within 24 hours. 

“The government will continue to strive for reasonable costs as it has been changed [within 24 hours] Not to mention that the project is using the cost recovery scheme,” he said, referring to a scheme deemed disadvantageous tothe state as it has to bear the project costs, When asked for a confirmation on Thursday night, Chevron Indonesia neither denied nor confirmed that it had gone back and forth in submitting its cost calculation.

Its spokesperson Danya DeWanti said her company was “prohibited to talk publicly on any ongoing discussion with the government? The cost for the second phase of the IDD project is included in a proposal called the plan of development (POD).

Aside from costs, Arcandra said another possible hassle in the agreement that would slow down finalization lied in the production sharing contract scheme. 

“They [Chevron] hope to combine the contract extension for the Makassar Strait, Rapak and Ganal blocks,” he said, adding that the Makassar Strait’s contract would expire in 2020, which is shorter than the deadlines for the Rapak and Ganal blocks.

the Rapak and Ganal blocks East Kalimantan

Arcandra said the Rapak and Ganal blocks would expire in 2027 and 2028 respectively thus remained under the cost recovery scheme. The contract for the Makassar Strait Block, meanwhile, is under discussion regarding an extension.

The block will use the gross split scheme to follow new regulations that were implemented in early 2017.Separately, SKK Migas communications head Wisnu Prabawa Taher told The Jakarta Post that Chevron had submitted its proposal on Rapak, Ganal and Makassar Strait block contracts on Friday.

“In short, Chevron’s proposal revises the IDD’s PoD, which includes the Makassar Strait, Rapak and Ganal blocks,” he said on Friday

 Jakarta Post, Page-13, Saturday, June 30, 2018

IDD Investment Changes

The Ministry of Energy and Mineral Resources (ESDM) stated that Chevron has revised several times the investment value in Chevron's IDD development plan in Gendalo-Gehem Field.

IDD development Gendalo-Gehem Field.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that within 1 X 24 hours Chevron has proposed different figures for the cost of developing deepwater oil and gas projects or Indonesia Deepwater Development (IDD). Whereas it should, the government asked Chevron to report the official cuts IDD project development costs on Thursday (28/6). However, the last seconds of the investment figure is changing.

"Chevron give a number that varies within 24 hours to three times change" explained Arcandra when met at the Office of the Ministry of Energy and Mineral Resources.

He said Chevron had previously invested $ 12.8 billion, then slashed about $ 6 billion from its original plan. Unfortunately, Arcandra is reluctant to reveal the final figures of the change. To be sure he said the government would struggle to find the right and reasonable numbers because it uses cost recovery.

"If the government is not strong, cost recovery is destroyed," he said.

As is known, Chevron in the development proposal IDD Phase II is asking for investment credit or compensation rights to the government with a very high percentage of 240%. Whereas the maximum investment credit requested by KKKS is only 100%. Arcandra said. Investment credit demand is not in contract.

IN INDONESIA

Investasi IDD Berubah-ubah 

Kementerian Energi dan Sumber Daya Mineral (ESDM) menyatakan bahwa Chevron sudah beberapa kali merevisi nilai investasi dalam rencana pengembangan IDD Chevron di Lapangan Gendalo-Gehem.

Wakil Menteri ESDM Arcandra Tahar menyebut, dalam waktu 1 X 24 jam, Chevron tiga kali mengajukan angka yang berbeda-beda untuk biaya pengembangan proyek migas laut dalam atau Indonesia Deepwater Development (IDD). Padahal seharusnya, pemerintah meminta Chevron melaporkan resmi pemangkasan biaya pengembangan proyek IDD itu pada Kamis (28/6). Namun, detik-detik terakhir angka investasi itu berubah-ubah.

"Chevron berikan angka yang berubah-ubah dalam hitungan 24 jam sampai tiga kali perubahan" terang Arcandra saat ditemui di Kantor Kementerian ESDM.

Dia mengatakan Chevron sebelumnya memperikarakan investasi mencapai US$ 12,8 miliar, kemudian memangkasnya sekitar US$ 6 miliar dari rencana awal. Namun sayangnya, Arcandra enggan mengungkapkan angka akhir perubahan itu. Yang pasti dia mengatakan, pemerintah akan berjuang mencari angka benar dan masuk akal karena ini menggunakan cost recovery. 

"Kalau pemerintah tidak kuat, cost recovery hancur,” katanya.

Seperti diketahui, Chevron dalam proposal pengembangan IDD Tahap II ini meminta investment credit atau hak ganti rugi ke pemerintah dengan prosentase yang sangat tinggi yakni sebesar 240%. Padahal maksimal investment credit yang diminta KKKS itu hanya 100%. Kata Arcandra. Permintaan investment credit tidak dalam kontrak.

Kontan, Page-14, Saturday, June 30, 2018

Chevron Asked to Speed ​​Up IDD Prov

The Government of Indonesia urges Chevron Corporation to accelerate Indonesia deepwater development (IDD) projects in the Makassar Strait. After the agreement on the IDD project is completed, the Government of Indonesia and the oil and gas giant from the United States will discuss the fate of the Rokan Block contract in Riau.

Chevron becomes operator of the Rokan Block whose contract will be completed by 2021. However, Chevron has proposed a contract extension to the government. Energy and Mineral Resources Minister Ignatius Jonan met with Chairman & CEO of Chevron Michael K. Wirth to urge the settlement of deeply dormant deepwater oil projects.

Nicke Widyawati

In fact, Jonan invited a number of officials such as Director General of Oil and Gas Ministry of Energy and Mineral Resources Djoko Siswanto and Deputy Head of SKK Migas Sukandar, Managing Director of PT Pertamina (Persero) Nicke Widyawati and oil and gas businessman Arifin Panigoro.

Arifin Panigoro

Pertamina is Chevron's minority partner while winning the IDD tender at Gendalo-Gehem Field in 2009 with Italian oil and gas company Eni. 

   Arifin Panigoro, through Medco International Tbk. once took over Chevron's oil and gas blocks. The meeting in Chevron, Washington's office took place on Wednesday (27/6) or Thursday morning at Jakarta time, was closed. Chevron also attended Yanto Sianipar, Senior Vice President of Government Policy and Public Affairs of Chevron Indonesia Yanto Sianipar.

Jonan initially held bilateral talks with Chevron. Next he invited Arifin and Nicke to talk to Chevron through the business mechanism. Jonan was then willing to deliver the results of the meeting in flight back to Jakarta Thursday (28/6) afternoon or Friday morning west Indonesia time.

"In essence, I urge Chevron to work on this project before the deadline ends in 2020. After the IDD is complete, after that we can talk about the extension of Rokan Block management," said Jonan.

Rokan Block is Chevron's largest oil and gas project with a production range of 200,000 barrels per day and ends its contract period in 2021. The government has the option to terminate the project or extend Chevron's contract. According to Jonan, the IDD Project in Makassar Strait has been hanging too long.

the IDD Project in Makassar Strait

He hopes that Chevron will soon be working on this oil and gas block. Until the meeting ends, the government has not received a detailed proposal of development (plan of development / PoD) IDD.

CUT COST

Chevron has so far sought to slash development and operational costs of the Gendalo-Gehem IDD project by approximately US $ 6 billion from an initial proposal of US $ 12.8 billion. However, the government has not received a detailed proposal. In data from SKK Migas, IDD Gendalo and Gehem Project managed by Chevron Makassar Ltd. will start operating in 2024 and 2025 respectively. IDD Gendalo is estimated to have natural gas production of approximately 500 million cubic feet per day (MMscfd), while Gehem has a production of 420 MMscfd.

 IDD Gendalo and Gehem Project 

However, the IDD PoD process has not been completed yet. His article, Chevron, which manages the deep-sea project, replaces POD costs three times in 24 hours with a value of up to billions of dollars to the Ministry of Energy and Mineral Resources. EMR Deputy Minister of Energy and Mineral Resources Arcandra Tahar said the government will seek to obtain reasonable project costs.

"You see, it uses a cost recovery scheme so that the country will bear the cost. If not changed, cost recovery can not be controlled, "he said.

Until May 2018, the realization of cost recovery is valued at US $ 4.7 billion or 47 percent of the target of State Budget (APBN) 2018 of US $ 10.1 billion. Earlier, Senior Vice President of Government Policy and Public Affairs of Chevron Indonesia Yanto Sianipar said that the study and concept of feasibility of engineering and design work or pre-Front End Engineering and Design (pre-FEED) on IDD project has started well. It has been pre-FEED since December 2017.

"We have also optimized the concept of development and simplification of the design basis. It makes no indication of cost reduction development and operational significance, "he said.

Arcandra said Chevron would submit an IDD proposal without special conditions.

"The IDD extension time depends on the Chevron given POD, interesting or not," he said.

The Ministry of Energy and Mineral Resources is busy to cut the cost of developing oil and gas fields more efficiently. This is to make the cost recovery rate does not rise too high.

IN INDONESIA

Chevron Diminta Percepat Provek IDD

Pemerintah Indonesia mendesak Chevron Corporation untuk mempercepat proyek minyak dan gas bumi laut dalam (Indonesia deepwater development/ IDD) di Selat Makassar. Setelah kesepakatan tentang proyek IDD itu selesai, Pemerintah Indonesia dan raksasa migas dari Amerika Serikat itu akan membahas soal nasib kontrak Blok Rokan di Riau. 

Chevron menjadi operator Blok Rokan yang kontraknya akan selesai pada 2021. Namun, Chevron telah mengajukan perpanjangan kontrak kepada pemerintah. Menteri Energi Sumber Daya Mineral (ELSDM) Ignasius Jonan menemui Chairman & CEO Chevron Michael K. Wirth untuk mendesak penyelesaian proyek migas laut dalam yang sudah terbengkalai lama.

Bahkan, Jonan mengajak sejumlah pejabat seperti Dirjen Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto dan Wakil Kepala SKK Migas Sukandar, Pelaksana tugas Dirut PT Pertamina (Persero) Nicke Widyawati dan pengusaha migas Arifin Panigoro. 

Pertamina adalah mitra minoritas Chevron saat memenangkan tender IDD di Lapangan Gendalo-Gehem pada 2009 bersama perusahaan migas dari Italia - Eni. Arifin Panigoro, melalui Medco Energy Intemasional Tbk. pernah mengambil alih blok migas milik Chevron. Pertemuan di kantor Chevron, Washington tersebut terjadi pada Rabu (27/6) atau Kamis dinihari waktu Jakarta, berlangsung tertutup. Dari pihak Chevron hadir juga Yanto Sianipar, Senior Vice President Policy Government and Public Affairs Chevron Indonesia Yanto Sianipar.

Semula Jonan melakukan pembicaraan bilateral dengan pihak Chevron. Selanjutnya dia mengundang Arifin dan Nicke untuk berbicara dengan Chevron melalui mekanisme bisnis. Jonan setelah itu bersedia memberikankan hasil pertemuan dalam penerbangan kembali ke Jakarta Kamis (28/6) siang atau Jumat dinihari waktu Indonesia barat.

“Intinya, saya mendesak Chevron agar segera mengerjakan proyek ini sebelum batas waktu berakhir pada 2020. Setelah IDD selesai, setelah itu kita bisa bicara perpanjangan pengelolaan Blok Rokan,” tutur Jonan.

Blok Rokan merupakan proyek migas terbesar yang di kerjakan Chevron dengan produksi kisaran 200.000 barel per hari dan berakhir masa kontraknya pada 2021. Pemerintah punya opsi untuk terminasi proyek ini atau kembali memperpanjang kontrak Chevron. Menurut Jonan, Proyek IDD di Selat Makassar sudah terlalu lama menggantung.

Dia berharap agar Chevron secepatnya bergerak mengerjakan blok migas ini. Hingga pertemuan berakhir, pemerintah belum mendapatkan proposal detail rencana pengembangan (plan of development/PoD) IDD.

PANGKAS BIAYA

Chevron sejauh ini berupaya memangkas biaya pengembangan dan operasional proyek IDD Gendalo-Gehem sekitar US$ 6 miliar dari proposal awal US$ 12,8 miliar. Namun, pemerintah belum mendapatkan proposal detail. Dalam data SKK Migas, Proyek IDD Gendalo dan Gehem yang dikelola oleh Chevron Makassar Ltd. bakal mulai beroperasi masing-masing pada 2024 dan 2025. IDD Gendalo diperkirakan memiliki produksi gas bumi sekitar 500 juta kaki kubik per hari (MMscfd), sedangkan Gehem memiliki produksi sebesar 420 MMscfd. 

Namun, proses PoD IDD belum selesai. Pasalya, Chevron, yang mengelola proyek laut dalam itu mengganti biaya POD sebanyak tiga kali dalam 24 jam dengan selisih nilai hingga miliaran dolar AS kepada Kementerian ESDM. Wakil Menteri ESDM Arcandra Tahar mengatakan, pemerintah akan berupaya untuk mendapatkan biaya proyek yang wajar.

“Soalnya, ini menggunakan skema cost recovery [pengembalian biaya produksi migas dari APBN] sehingga negara yang akan menanggung biaya tersebut. Kalau tidak berubah, cost recovery bisa tidak terkendali,” ujarnya. 

Sampai Mei 2018, realisasi cost recovery senilai US$4,7 miliar atau 47% dari target APBN 2018 sebesar US$ 10,1 miliar. Sebelumnya, Senior Vice President Policy Government and Public Affairs Chevron Indonesia Yanto Sianipar mengatakan, studi dan konsep kelayakan pekerjaan keteknikan dan desain atau pre-Front End Engineering and Design (pre-FEED) pada proyek IDD telah dimulai dengan baik. Pihaknya telah melakukan pre-FEED sejak Desember 2017.

“Kami pun telah melakukan optimalisasi konsep pengembangan dan penyederhanaan basis rancangan. Hal itu membuat ada indikasi pengurangan biaya pengembangan dan operasional yang signifikan," ujarnya.

Arcandra menyebutkan Chevron akan menyerahkan proposal IDD tanpa syarat-syarat khusus.

“Waktu perpanjangan IDD tergantung POD yang diberikan Chevron, menarik atau tidak,” sebutnya.

Kementerian ESDM pun sedang sibuk untuk bisa memangkas biaya pengembangan lapangan migas lebih efisien lagi. Hal itu demi membuat tingkat cost recovery tidak naik terlalu tinggi. 

Bisnis Indonesia, Page-10, Saturday, June 30, 2018