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Friday, July 2, 2021


    The operating schedules of a number of upstream oil and gas projects were forced to be postponed due to the Covid-19 pandemic which still creates uncertainty in the sector. It is hoped that the fulfillment of the needs for the downstream sector will not be disrupted. One of the delays in the operation schedule was the Tangguh Train-3 National Strategic Project (PSN).

Blogger Agus Purnomo in SKK Migas

    Deputy for Special Task Force Operations (SKK Migas) Julius Wiratno said the completion of the project would miss the target in the fourth quarter of 2021 to next year.

    According to him, at the beginning of this year, the project had been suspended for 3 months due to the spread of Covid-19. To resume the project, it will take longer.

“Probably around mid-2022. We are currently doing a schedule and risk analysis. We'll see if it can be fixed," he said.

    Based on SKK Migas records as of March 26, 2021, the progress of the Tangguh Train-3 onshore project in Papua still reached 89.58% or lower than the target, which was 96.21%. Meanwhile, the offshore project work on Tangguh Train-3 has reached 99.19% of the target that should have been 100%.

the Jambaran-Tiung Biru (JTB) gas project

    In addition to the Tangguh Train-3 project, a scheduled shift has also occurred in the Jambaran-Tiung Biru (JTB) gas project. Julius said the ongoing Covid-19 pandemic coupled with the second wave which worsened conditions at home made the project. SKK Migas will oversee these projects so that they can be completed by the end of the year.

“The JTB project has been pushed back from August to November or December 2021 onstream. There is still uncertainty because of this Covid," he said.

    Overall, to date, SKK Migas has successfully completed seven upstream oil and gas projects from the target of 12 onstream projects in 2021.

    Investments in the seven projects were recorded at US$ 1.45 billion and provided additional production of 9,850 barrels of oil per day (bopd) and 474.5 million cubic feet of gas per day (MMscfd).

    The seven upstream oil and gas projects that are already onstream are EPF Belato2 Seleraya Merangin Dua, EOR Jirak Pertamina EP, KLD PHE ONWJ, Gas Supply to RU-V Pertamina Hulu Mahakam, West Pangkah Saka Indonesia Pangkah Ltd, Merakes Eni East Sepinggan, and North Area Jindi. South Jambi Block B.

    Meanwhile, in line with upstream oil and gas activities and the tightening of government policies to implement efforts to prevent the Covid-19 pandemic, the upstream oil and gas business is also taking anticipatory steps in order to continue to achieve the target. One of the anticipatory measures taken is the acceleration of the vaccination program which is carried out together with government programs.

"SKK Migas also continuously coordinates with KKKS to ensure that the health protocols are implemented as well as possible so that production does not stop due to the Covid-19 case," he said.

    Julius added that the movement of people and goods needs to be added to ensure the availability of goods or services to support production operations on time.

"We are working on accelerating projects launched in 2022. Hopefully, something can be accelerated this year, so hopefully, the number of projects that can onstream can exceed this year's target and support an increase in production next year," he explained.

    Energy Director Watching Mamit Setiawan assessed that the delay in the streaming schedule for oil and gas projects was not entirely the fault of the contractor.

"The contractors must have made changes to their plans from last year with the hope that the pandemic can subside this year and fabrication activities can operate normally in manufacturing companies, but it seems that it failed to meet the target," said Mamit.

    However, he hopes that the preparation of the goods will not take too long, especially if the project is a PSN. Especially for JTB, it doesn't really matter if the project is planned. Surprisingly, the demand for gas for the industry in East Java currently tends to below.

    Executive Director of the National Oil and Gas Company Association (Aspermigas) Moshe Rizal assessed that the Covid-19 pandemic had indeed caused a lot of uncertainty. Moreover, there is a policy to make it difficult for KKKS to achieve the required productivity.

“It's really difficult because of the number of personnel in the field and travel restrictions. This all hampers productivity. Although the goods are available but not optimal, "he said.


    Meanwhile, the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources stated that investment in the upstream oil and gas sector is still below the target.

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said the Covid-19 pandemic had a major impact on the domestic oil and gas industry. This causes oil and gas investment to be slow. Meanwhile, this year's investment in the upstream oil and gas sector is targeted at US$12.4 billion. He said that until June 2021, the realization of the investment was less than half of the target.

"In this month or May-June 2021, upstream oil and gas investment is 25.52 percent of the 2021 target," he said.

    Tutuka said the government continues to strive to improve services and ease of doing business in the domestic upstream oil and gas sector. He said the government had issued a number of regulations that would support this facility.

    He explained that the government had made a policy to increase the use of domestic products in upstream oil and gas activities, namely the Minister of Energy and Mineral Resources Regulation No. 15 of 2013, and the Minister of Energy and Mineral Resources Regulation No. 14 of 2019, as well as the Minister of Energy and Mineral Resources Regulation No. 17 of 2018.

"The oil and gas sector is one of the natural resources that is multifunctional and plays a major role in the country and contributes to the growth of national income," said Tutuka.

Bisnis Indonesia, Page-4, Thursday, July 1, 2021

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