, pub-9591068673925608, DIRECT, f08c47fec0942fa0 Chevron Must Immediately Ensure Rokan's Power Supply - MEDIA MONITORING OIL AND GAS -->

Chevron Must Immediately Ensure Rokan's Power Supply

    Chevron Standard Ltd (CSL), an affiliated company with PT Chevron Pacific Indonesia (CPI), was asked to immediately conclude negotiations with PT Perusahaan Listrik Negara (PLN) regarding the issue of electricity supply in the Rokan Block, Riau, which will begin to be transferred from PT CPI to PT Pertamina. Hulu Rokan in August 2021. This is important to maintain oil and gas production in the block.

    The Executive Director of the ReforMiner Institute, Komaidi Notonegoro, believes that the continuation of the management of the North Duri Cogeneration (NDC) PLTGU should be completed immediately to ensure the continuation of the management of the Rokan Block. If the government encourages the synergy of SOEs between Pertamina and PLN, that's good.

the Rokan Block

"But what is more important than that is the certainty of the sustainability of the electricity supply for the Rokan Block," he said.

    The owner of the PLTGU is PT Mandau Cipta Tenaga Nusantara (MCTN). As much as 95% of MCTN's shares are controlled by CSL and the rest by local companies. CSL is said to be auctioning off the management of the NDC PLTGU. Several participants reportedly withdrew because the price was considered too expensive, namely US $ 300 million, especially since Chevron has benefited for more than 20 years from operating the plant.

    On the other hand, Pertamina and PLN are known to have communicated the supply of electricity and steam in the Rokan Block in March 2020. On February 1, 2021, the two companies signed the Electricity and Steam Sales and Purchase Agreement (PJBTLU) which will be effective in August 2021, along with the end of the management. Rokan Block by PT Chevron Pacific Indonesia (CPI).

    The actual electricity demand for the Rokan Block is 400 megawatts and 355 MBSPD of steam. PLTGU NDC will only be used for three years in line with the commitment and willingness of PLN to supply electricity to the Rokan Block through the Sumatra interconnection. 

    The clarity of electricity supply from the NDC PLTGU will encourage oil production from the Rokan Block to persist, at least not to drop drastically. Based on data from SKK Migas, until the first quarter of 2021 oil production from the Rokan Block averaged 162,951 barrels per day (BPD), down from the realization in the first quarter of 2020 which was recorded at 174,424 bpd.

According to Komaidi, the electricity supply for the Rokan Block that has been going on so far must use the basis and agreement between the parties. In the agreement, of course, it must be conveyed to the public how the rights and obligations of the parties after the Rokan Block concession contract are transferred from the old manager to the new manager.

"The parties must of course refer to the terms and agreements that have been made previously," he said.

Blogger Agus Purnom In SKK Migas

    Deputy Head of SKK Migas Fataryani Abdurrahman said electricity and steam are the backbones of operations in the Rokan Block. The North Duri Cogeneration PLTGU was designed in the 90s to implement Steamflood Enhanced Oil Recovery (EOR) technology which requires a large electricity supply. He said SKK Migas had sent a letter to CPI regarding the power plant in Rokan.

"The power plant was built on state-owned land, which was previously agreed upon by a third party," he said.

    PLN's Director of Commerce and Customer Management, Bob Saril, previously explained that in PLN's plan the electricity and steam needs for the Rokan Block were divided into two stages. First, the transition period (2021-2024) utilizes the existing supply with the most cost-efficient PLTG NDC acquisition scheme. 

    This is done because the connection of the Rokan Block electricity system to the PLN system only takes three years to develop. Second, the permanent period (2024-ff), electricity will be supplied in total from the Sumatra System and steam will be supplied with the construction of a more reliable Steam Generator.

 Investor Daily, Page-10, Monday, May 24, 2021


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