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Monday, June 19, 2023

Pertamina Strengthen Brand in Global Market


    PT Pertamina through its subsidiaries is increasingly strengthening its Brand in the global market. This is evidenced by a number of collaborations carried out within the scope of several activities, namely upstream oil, and gas, export and sale of products, to shipping cooperation.

    The latest is the signing of a new hydrocarbon contract by Pertamina through its Sub Holding Upstream subsidiary, PT Pertamina Internasional EP (PIEP) which operates in Algiers under PT Pertamina Algiers EP (PAEP), at Menzel Lejmat Nord (MLN), Block 405. Investment funds amounting to US$ 800 million are ready to be released to fund the project.

    PIEP and its partners Sonatrach and Repsol Exploracion 405a SA continue to demonstrate their ability to operate onshore oil and gas blocks. With this trust, the production sharing contract signed is a continuation of the memorandum of understanding agreed between the three companies on September 28, 2022. 

    The joint operation under the contract mentioned above is the MLN field and nine other fields which include the unitization of Ourhoud and El Merk.

    The work program specifically includes the drilling of 12 oil wells and water injection wells, the connection of new development wells, the construction of an LPG extraction unit, and a 3D WAG (Water Alternating Gas) seismic acquisition project, as well as a solar energy production project. 

    The total investment amount planned for the implementation of this development is estimated at more than US$ 800 million and the total resources are almost 150 million barrels of oil equivalent.

    The signing of this contract is in accordance with the wishes of the three partners to realize it within the MLN contractual scope and to strengthen the work in the field of exploration and production of hydrocarbons.

Nicke Widyawati

    The signing of this contract was witnessed by the President Director of PT Pertamina Nicke Widyawati, the Main Director of PT Pertamina Hulu Energi Wiko Migantoro, The President Director of PT Pertamina Internasional EP Jaffee A. Suardin, Group CEO Sonatrach Toufik Hakkar, and other partners Repsol Algiers and Algiers authorities. During the signing ceremony, Nicke Widyawati expressed her appreciation.

"After perfect contract preparations, Pertamina and its partners have finally agreed on a new journey for oil and gas operations in Algiers. Our commitment for the long term will be a new and exciting journey, reaffirming Pertamina's global footprint together with Sonatrach, and Repsol," said Nicke Widyawati.

    Nicke Widyawati said the oil and gas block in Algeria is one of the mainstays of oil and gas production from abroad for Pertamina.

"The acquisition of oil and gas blocks abroad with the concept of "bring the barrel home" is a strategic step for Pertamina to maintain national energy security," said Nicke Widyawati.

    Nicke added, in this new contract, apart from crude oil production, Pertamina was also given a permit to build an LPG factory with a capacity of 1 million metric tons per year, where the product will be brought to Indonesia.

"With this new innovation, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke Widyawati.

    At the same time, the Algiers oil and gas block also has the potential in developing renewable energy, especially Solar PV which will be utilized as a green electricity supply for oil and gas block operations.

"This is a form of Pertamina's very strong commitment to reducing carbon emissions in all of its business activities in line with the application of ESG," said Nicke Widyawati.

    Jafee said PIEP has the potential to produce peak production in block 405a of 36,000 BOEPD and open up new development opportunities in the surrounding area in the next 25 years, and the potential for an additional 10 years of a contract extension.

"This reflects Pertamina's strong projection going forward in line with Pertamina's main strategy to become a world-class energy company," said Jaffee.

    Menzel Ledjmet Nord (MLN) Oil Field Algiers is one of the oil and gas fields in the Sahara Desert, Algiers which has been fully operational by PT Pertamina since May 2014, through the Upstream Subholding.

    This block has an oil capacity of 35,000 barrels of oil per day (BOPD) and has 58 solar panels that produce 1,141 kilowatt hours (kWh) per year, resulting in reduced emissions of up to 7,507 tons of C02 per year.

    Pertamina as a leader in the field of energy transition, is committed to supporting the Net Zero Emissions 2060 target by continuing to encourage programs that have a direct impact on the achievement of the Sustainable Development Goals (SDGs). 

    All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all of Pertamina's business lines and operations.

    Pertamina Internasional Exploration and Production (PIEP) was established based on the need for international asset management which focuses on managing PT Pertamina's foreign assets. 

    Until now, Pertamina has foreign oil and gas field assets spread across 13 countries, namely Algiers, Malaysia, Iraq, Canada, France, Italy, Namibia, Tanzania, Gabon, Niger, Colombia, Angola, and Venezuela. 

    From 2014 to 2021, PIEP contributed as much as 51 million barrels of oil, or around US$ 2.8 billion to be shipped domestically.

    Another subsidiary is PT Pertamina International Shipping (PIS) through Pertamina International Shipping Pte Ltd which is domiciled in Singapore. This company continues to develop its business wings in the Asia Pacific region so that it transforms into PIS Asia Pacific (PIS AP). 

    The establishment of PIS AP is focused on serving export and import cargo transportation in the international market. PIS is also increasingly aggressively expanding in the global market and has successfully traveled as many as 22 international routes until early 2023.

    Meanwhile, PT Pertamina Lubricants (PTPL), a Subholding Commercial & Trading subsidiary of Pertamina, has owned the Lubricants Technology Center (LTC), the largest lubricants research and innovation center in Indonesia, located in Plumpang, North Jakarta. 

    With an area of 12,500 mz, LTC is equipped with modern facilities and professional human resources to meet the needs of lubricants in the Indonesian market and 14 countries in the world including Australia, Thailand, and South Africa.

Investor Daily, Page-13, Monday, June 19, 2023

Pertamina Builds LPG Factory in Algiers

 


    PT Pertamina has confirmed that it will build a Liquefied Petroleum Gas or LPG factory with a capacity of 1 million metric tons per year in Algiers.

Nicke Widyawati

    The Main Director of Pertamina, Nicke Widyawati, said that her party had obtained a permit to build an LPG factory from the Algerian authorities, because it was part of the management contract for the Menzel Ledjmet Nord Block. Later, products produced from these factories will be brought to Indonesia with the aim of reducing imports of these commodities.

"With this new innovation, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke Widyawati.

    In Algeria, Pertamina through PT Pertamina Algiers EP has just received a contract extension for the Menzel Ledjmet Nord Block for the next 35 years.

    The Algerian authorities granted the contract extension because they assessed that Pertamina, Sonatrach, and Repsol Exploration 405a SA were capable of managing the onshore oil and gas block well. The block is also one of the mainstays of Pertamina's oil production from abroad.

"The acquisition of oil and gas blocks abroad with the concept of "bring the barrel home" is Pertamina's strategic move to maintain national energy security," said Nicke Widyawati.

    Menzel Ledjmet Nord Oil Field is an oil and gas block located in the Sahara Desert, approximately 1,000 kilometers southeast of Algiers, the capital city of Algiers. Pertamina Algiers EP has fully managed Menzel Ledjmet Nord Oil Field operations since 2014 with a total Participating Interest (PI) of 65%.

    The block has an oil capacity of 35,000 barrels of oil per day (BOPD), with an average oil production from January to May 2023 reaching 14,875 bpd.

    Not only producing oil, the operator of the Menzel Ledjmet Nord Block also installed S8 solar panels which generate 1.141 kWh of electricity per year, and can reduce carbon emissions by up to 7,507 tons of CO2 equivalent per year.

Bisnis Indonesia, Page-4, Monday, June 19, 2023

Saturday, June 10, 2023

Shell Finally sold 35% Participating Interest shares to Pertamina

Shell Deal with Pertamina

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that the process of transferring Shell's Participating Interest (PI) shares to Pertamina of 35% in the Masela Block will be completed. 

    In fact, according to him, the release price for PI shares offered by Shell is now far below US$ 1 billion, unlike anything previously offered. Previously, Shell extorted the Indonesian government up to US$ 1.4 billion or around Rp. 21 trillion to sell a 35% participating interest to Pertamina.

    According to Arifin, the process of transferring Shell's 35% Participating Interest (PI) shares in the Masela Block will use an acquisition or business-to-business scheme, not through contract termination. 

    There is an option that the Indonesian government can terminate Shell's contract in the Masela Block if the company is still the troublemaker in the process of releasing the 35% Participating Interest (PI) shares.

the Masela Block project

    In the Plan of Development (PoD) document it is stated that if five years since the PoD was signed in 2019 then the Masela Block project has not made significant progress from SHELL, then this jumbo gas block can be returned to Indonesia, and it is proven that SHELL has not done anything for 5 years in the Abadi Masela Oil and Gas block. 

    The acquisition price of 35% SHELL shares is below US$ 1, which is only US$ 500 million or around Rp. 7.5 Trillion.

Inpex Corporation

    Arifin also said that Inpex Corporation from Japan as the operator would also revise the Masela Block development plan (PoD). 

    This is in line with the company's plan to include Carbon Capture, Utilization, and Storage (CCUS) facilities in the jumbo project.

"Otherwise, there will be less pressure on funding for this fossil energy project to become unattractive, except for renewable energy. 

    In order for this gas to become clean gas, a cost must be included. within Indonesia," said Arifin.

President Director of PT Pertamina Nicke Widyawati

    Previously, President Director of PT Pertamina (Persero) Nicke Widyawati said that currently, his party was finalizing the process of transferring the participating interest shares with Shell. 

    However, Nicke could not speak further because he was bound by a Non-Disclosure Agreement/NDA or a confidentiality agreement.

       Nicke realizes that currently, the Indonesian people are looking forward to the development of the Masela Block. 

    Therefore, this Indonesian oil and gas company will be committed to immediately developing gas in the jumbo block.

"Of course, the people really hope that this gas giant block can be worked on immediately, so Pertamina's entry into it is our commitment to develop as soon as possible so that the gas in the Masela block can be monetized and generate state revenue and create a national economy," said Nicke.

    The Masela Block is a National Strategic Project (PSN) and is targeted to produce very large gas, namely 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and 150 MMSCFD of pipeline gas, as well as 35,000 barrels oil per day (BOPD).

    Currently, the Masela Block is still being managed by Inpex Masela Ltd Japan which acts as the operator and holds a 65% participating interest, and 35% is owned by Shell which will soon belong to Pertamina.

This project is said to be "giant" because it is estimated to cost up to US$ 19.8 billion. 

    The manager of this block, Inpex, and the new partner, will later build a Liquefied Natural Gas (LNG) refinery on land, which was initially targeted to be operational in 2027. The latest progress, the operation of this project is estimated to be late to 2029 due to the actions of the SHELL zonk which did nothing for 5 years since the project was signed in 2019.

Saturday, June 3, 2023

Minister EMR in Jakarta: sHELL ran away from the Masela Block Irresponsible

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was very angry with the behavior of the British oil company sHELL. As of today, sHELL does not want to release its 35% participating interest (PI) shares in the Masela Block.

    sHELL has declared that it has run away from working on an oil and gas mining project in the Masela Block. With the PI not being released, the project has been stuck to this day and is very detrimental to Indonesia. 

    Even though Inpex Japan is very interested and able to work on this jumbo project.

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was very angry with the behavior of the British oil company, sHELL. The reason is, to this day the company does not want to release its participating interest (PI) in the Masela Block.

    Arifin said that because of Shell's actions, Indonesia felt disadvantaged, because if the oil and gas mining project in the Masela Block was carried out, it would produce gas of 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and pipeline gas of 150 MMSCFD, as well as 35,000 barrels of oil per day.

The Masela Block

    The Masela Block is being worked on by a Japanese company, namely Inpex Corporation as the operator with a 65 percent stake and the remaining 35 percent is held by Shell Upstream Overseas Services. Everything should be handed over to Japan because sHELL is just playing around and not being serious.

    Arifin continued, if by 2024 there is no activity in the Masela Block, then the government will take over the Abadi gas field development project. 

    This is based on the provisions in the Masela Block development plan or Plan of Development (PoD).

    The Masela block is an oil and gas mine located in the Aru Sea and has been explored since 1998. This project requires a very large capital expenditure (capex), estimated at US$ 20 billion. So it will be difficult if a single investor develops this block without a shareholder partner.

    The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said PT Pertamina (Persero) had now agreed to form a consortium to run the oil and gas project to replace sHELL.

Petronas

    The Masela Block has been finalized with Petronas. So SKK Migas has discussed the deal with Petronas, if the price is right, give it immediately, this year it can be done," said Luhut.

Blogger Agus Purnomo in SKK Migas

    Luhut also explained that there were no problems with the process of purchasing Shell's participating interest (PI), it's just that the price bidding process at the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) took a long time because Shell tried to extort Indonesia.