ESDM: Indonesian Upstream Oil and Gas Investment Still Promising For Global Investors

The Ministry of Energy and Mineral Resources (ESDM) considers that upstream oil and gas investment in Indonesia is still very promising for global investors.

the West Ganal Block

"Right now international companies are starting to enter Indonesia, one of which is Neptune Energy in the West Ganal oil and gas block (off the coast of the Makassar Strait)," said Director of Upstream Oil and Gas Business Development at the ESDM Ministry Mustafid Gunawan in Jakarta.

Eni Indonesia Limited

As is known, the Consortium Eni Indonesia Limited - PT Pertamina (Persero) - Neptune Energy West Ganal B.V. became the winner of the auction on the West Ganal block. He added, British Petroleum (BP) would also conduct exploration activities in open areas.

"BP is discussing discussions to conduct a survey outside the CoW, transfer of commitments is still being processed. The funds are very large, "he said.

He believes that the high interest of global investors in investing in upstream oil and gas, according to him, is not without reason. Currently, the oil and gas data has been transparent as the Minister of Energy and Mineral Resources Regulation No. 7 of 2019 was issued concerning the Management and Utilization of Oil and Gas Data. 

     Mustafid said oil and gas investors can access and process data in accordance with Ministerial Regulations. To access the oil and gas data, oil and gas investors must register themselves as members and pay contributions.

"The fee is being determined. Throughout being a member, get data. If not, only get basic data. Many investors are hoping for data, "he said.

In 2020, Mustafid said, his party would auction 12 work areas (WK) or oil and gas blocks.

"2020, we prepare a WK auction from a technical standpoint, whether cost recovery or gross split, is applied openly depending on evaluation," he said.

He said the work area to be auctioned consisted of 10 conventional oil and gas blocks, and the rest were non-conventional. Previously, the Head of the Communication Bureau, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources Agung said the Government was optimistic that the Ministerial Regulation could invite the maximum investment in upstream oil and gas.

The government provides data access to all parties who need it with maximum access for those who are registered as members. He said being a member was entitled to get access to a data package in the Work Area offering for free as well as getting a free data package for auction winners.

"As for non-members, data access is limited to general data, basic data, processed data and interpretation data that have passed the confidentiality period.

Yesterday when this application was presented to oil and gas contractors, they recognized that the application of oil and gas data was very helpful in managing oil and gas data, "Agung said.

IN INDONESIA

ESDM: Invostasi Hulu Migas Indonesia Masih Menjanjikan bagi Investor Global

Kementerian Energi dan Sumber Daya Mineral (ESDM) menilai bahwa investasi hulu migas di Indonesia masih sangat menjanjikan bagi investor global.

“Sekarang ini perusahaan internasional mulai masuk ke Indonesia, salah satunya Neptune Energy di blok migas West Ganal (lepas pantai Selat Makasar),” ujar Direktur Pembinaan Usaha Hulu Migas Kementerian ESDM Mustafid Gunawan di Jakarta.

Sebagaimana diketahui, Konsorsium Eni Indonesia Limited - PT Pertamina (Persero) - Neptune Energy West Ganal B.V. menjadi pemenang lelang di blok West Ganal itu. Ia menambahkan, British Petroleum (BP) juga bakal melakukan kegiatan eksplorasi di wilayah terbuka.

“BP sedang berdiskusi pembahasan untuk lakukan survey di luar WK, pengalihan komitmen masih diproses. Dana sangat besar sekali,” ucapnya.

Keyakinan tingginya minat investor global berinvestasi hulu migas, menurut dia, bukan tanpa alasan. Saat ini data migas telah transparan seiring telah diterbitkannya Peraturan Menteri  ESDM Nomor 7 Tahun 2019 Tentang Pengelolaan dan Pemanfaatan Data Minyak dan Gas Bumi. Mustafid mengemukakan investor migas dapat mengakses dan mengolah data sesuai ketentuan Peraturan Menteri. Untuk mengakses data migas itu, investor migas wajib mendaftarkan diri sebagai anggota dan membayar iuran.

“Sedang ditetapkan biaya iurannya. Sepanjang menjadi anggota, mendapat data. Kalau tidak, hanya mendapat data dasar. Banyak investor yang berharap data,” ucapnya.

Pada 2020, Mustafid mengatakan, pihaknya bakal melelang 12 wilayah kerja (WK) atau blok migas.

“2020, lelang WK kita siapkan skema dari sisi teknis, apakah cost recovery atau gross split, diterapkan terbuka tergatung evaluasi,” ujarnya.

Ia mengemukakan wilayah kerja yang akan dilelang itu terdiri dari 10 blok migas konvensional, dan sisanya non konvensional. Sebelumnya, Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama Kementerian ESDM Agung Pribadi mengatakan Pemerintah optimistis dengan Peraturan Menteri itu dapat mengundang sebesar-besarnya investasi di hulu migas. 

Pemerintah memberikan akses data kepada semua pihak yang membutuhkannya dengan akses yang sebesar-besarnya bagi pihak yang terdaftar menjadi anggota. Dia mengatakan menjadi anggota berhak mendapatkan akses paket data pada penawaran Wilayah Kerja secara gratis serta mendapatkan paket data  gratis untuk pemenang lelang.

“Sedangkan bagi bukan anggota, akses data diberikan terbatas hanya untuk data umum, data dasar, data olahan dan data interpretasi yang telah melewati masa kerahasiaan.

Kemarin saat aplikasi ini dipresentasikan kepada kontraktor migas, mereka mengakui bahwa aplikasi data migas ini sangat membantu dalam melakukan pengelolaan data migas,” ujar Agung.

Investor Daily, Page-9, Wednesday, Jan 15, 2020

KrisEnergy Departs from the Andaman II Block

KrisEnergy Ltd sold all of its shares in the Andaman II Block by 30% to BP Exploration Operating Company Limited. KrisEnergy together with partners won the Andaman II Block at the 2017 oil and gas block auction.

BP Exploration Operating Company Limited

In its official statement, KrisEnergy states, it has signed a conditional sale and purchase agreement with BP Exploration Operating Company Limited for the sale of its shares in the Andaman II Block. The buying and selling of participatory interests (PIs) is still awaiting approval, including from the Government of Indonesia.

"The sale of these assets has taken into account the future exploration costs and risks associated with deep sea activities. The board of directors believes that it is prudent to allocate limited KrisEnergy capital to fund short-term development, "it said in its official statement.

However, KrisEnergy revealed, there is no certainty or guarantee that the release of this asset will be completed. In the Andaman II Block, KrisEnergy is only a 30% PI holder, not an operator. BP Indonesia Head of Country Moektianto Soeryowibowo confirmed that his party has signed an agreement with KrisEnergy.

"The transfer of participating interests is still awaiting several approvals, including from the Indonesian government," he said.

Deputy for Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Julius Wiratno admitted that he did not yet know about the KrisEnergy corporate action in releasing its share ownership in the Andaman II Block. But he said, the transfer of shares could affect exploration activities in the block.

"Maybe it can also influence [exploration activities]," said Julius.

The Andaman II Block was won by the Consortium of Premiere Oil Far East Ltd, Kris Energy (Andaman II) BV, and Mubadala Petroleum (Andaman II JSA) Ltd in 2017. Furthermore, this block of production sharing contract (PSC) was just signed last year with a gross split scheme.

Mubadala Petroleum

The share ownership in the oil and gas block is 40% Premiere Oil, 30% Mubadala Petroleum, and 30% KrisEnergy. The Consortium of Premier Oil Far East Ltd, KrisEnergy (Andaman II) BV, and Mubadala Petroleum (Andaman II JSA) Ltd promised a definite commitment for the first three years of G&G and 3D seismic activities totaling 1,850 square kilometers (km2) worth US $ 7.55 million. While the signature bonus given is US $ 1 million.

IN INDONESIA

KrisEnergy Hengkang dari Blok Andaman II

KrisEnergy Ltd menjual seluruh sahamnya di Blok Andaman II sebesar 30% kepada BP Exploration Operating Company Limited. KrisEnergy bersama mitra memenangkan Blok Andaman II ini pada lelang blok migas 2017 lalu. 

Dalam keterangan resminya, KrisEnergy menyatakan, telah menandatangani perjanjian jual beli bersyarat (conditional sale and purchase agreement) dengan BP Exploration Operating Company Limited untuk penjualan sahamnya di Blok Andaman II tersebut. Jual beli bagian partisipasi (participating interest/PI) ini masih menunggu persetujuan persetujuan, termasuk dari Pemerintah Indonesia.

“Penjualan aset ini telah mempertimbangkan biaya eksplorasi di masa mendatang dan risiko-risiko terkait kegiatan di laut dalam. Jajaran direksi percaya bahwa lebih bijaksana mengalokasikan modal KrisEnergy yang terbatas untuk mendanai pengembangan jangka pendek,” demikian tertulis dalam keterangan resminya.

Meski demikian, KrisEnergy mengungkapkan, tidak ada kepastian ataupun jaminan pelepasan aset ini akan diselesaikan. Di Blok Andaman II, KrisEnergy hanya sebagai pemegang PI dengan besaran 30%, bukan operator. Head of Country BP Indonesia Moektianto Soeryowibowo membenarkan bahwa pihaknya

telah menandatangani perjanjian dengan KrisEnergy. 

“Pengalihan participating interest masih menunggu beberapa persetujuan, termasuk dari pemerintah Indonesia,” tuturnya.

Deputi Operasi Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Julius Wiratno mengakui belum mengetahui soal aksi korporasi KrisEnergy melepas kepemilikan sahamnya di Blok Andaman II. Namun dikatakanya, pengalihan saham ini bisa berpengaruh pada kegiatan eksplorasi di blok tersebut. 

“Mungkin bisa berpengaruh juga [kegiatan eksplorasi],” kata Julius.

Blok Andaman II dimenangkan oleh Konsorsium Premiere Oil Far East Ltd, Kris Energy (Andaman II) BV, dan Mubadala Petroleum (Andaman II JSA) Ltd pada 2017 lalu. Selanjutnya, kontrak kerja sama (production sharing contract/PSC) blok ini baru diteken pada tahun lalu dengan skema bagi hasil kotor (gross split).

Kepemilikan saham di blok migas ini yakni Premiere Oil 40%, Mubadala Petroleum 30%, dan KrisEnergy 30%. Konsorsium Premier Oil Far East Ltd, KrisEnergy (Andaman II) BV, dan Mubadala Petroleum (Andaman II JSA) Ltd menjanjikan komitmen pasti tiga tahun pertama berupa kegiatan G&G dan seismik 3D seluas 1.850 kilometer persegi (km2) senilai US$ 7,55 juta. Sementara bonus tanda tangan yang diberikan US$ 1 juta.

Investor Daily, Page-9, Friday, Nov 22, 2019

KrisEnergy Release of Andaman Ownership ll

KrisEnergy Ltd agreed to release its 30% participating interest (PI) in the Andaman II Block to British Petroleum (BP). In an official statement, KrisEnergy's management announced that it signed a conditional sale and purchase agreement with BP Explorating Operating Company Limited.

BP Explorating Operating Company Limited

Currently the process of buying and selling participating rights in the Andaman II block is still awaiting approval from the Indonesian government. The Singapore-based oil and gas company released the Pl after considering the exploration costs and risks of marine oil and gas operations. By doing so, the Board of Directors considers it wise for KrisEnergy to allocate limited capital for short-term development. Krisenergy hasn't confirmed when the Pl release will be completed.

Based on this business agreement, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has not commented much. Head of SKK Migas Program and Communication Division Wisnu Prabawa Taher said that his party had not received an official notification from KKKS related to the planned release of the Pl.

"There is no formal information," he said.

The Andaman II Block is a new block auctioned by the government in 2017 using a gross profit sharing scheme. The new contract was signed in early 2018 which was won by the Andaman II block management consortium namely Premiere Oil Far East Ltd as operator, KrisEnergy Ltd, and Mubadala Petroleum. Based on ESDM Ministry data, the Andaman Il block has the potential to store reserves of 844.14 billion Cubic feet / BCF gas and oil 196.53 million barrels of oil / MMbo.

The first 3-year commitment must be fulfilled by the consortium in the form of G&G and elementary school seismic activities covering an area of ​​1,850 square kilometers (km2) worth US $ 7.55 million. In accordance with Government Regulation No. 53 of 2017 which regulates tax treatment for upstream oil and gas business activities with a gross split PSC, the contractor will get indirect tax incentives.

IN INDONESIA

KrisEnergy Lepas Kepemilikan Andaman ll

KrisEnergy Ltd sepakat untuk melepas hak partisipasi atau participating interest (PI) 30% yang dimilikinya di Blok Andaman ll kepada British Petroleum (BP).

    Dalam keterangan resmi, manajemen KrisEnergy mengumumkan bahwa pihaknya mendatangani perjanjian jual beli bersyarat dengan BP Explorating Operating Company Limited. 

Saat ini proses jual beli bagian  partisipasi blok Andaman II tersebut masih menunggu persetujuan pemerintah Indonesia. Perusahaan migas yang berbasis di Singapura tersebut melepas Pl setelah mempertimbangkan biaya eksplorasi serta risiko operasi migas laut. Dengan begitu, Dewan Direksi menganggap akan lebih bijaksana bagi KrisEnergy untung mengalokasikan modal terbatasnya untuk pembangunan jangka pendek. Krisenergy belum memastikan kapan pelepasan Pl akan selesai. 

Atas kesepakatan bisnis ini, Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) belum banyak berkomentar. Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher mengatakan pihaknya belum menerima pemberitahuan resmi dari KKKS terkait dengan rencana pelepasan Pl tersebut. 

“Belum ada informasi formal,” katanya.

Blok Andaman II merupakan blok baru yang dilelang pemerintah pada 2017 dengan menggunakan skema bagi hasil kotor atau gross split. Penandatanganan kontraknya baru dilakukan pada awal 2018 yang dimenangkan oleh konsorsium kelola blok Andaman II yakni Premiere Oil Far East Ltd sebagai operator, KrisEnergy Ltd, serta Mubadala Petroleum. Berdasarkan Data Kementerian ESDM, blok Andaman Il berpotensi menyimpan cadangan sebesar 844,14 billion Cubic feet/BCF gas dan minyak 196,53 juta barel minyak/MMbo. 

Adapun komitmen pasti 3 tahun pertama yang harus dipenuhi oleh konsorsium berupa kegiatan G&G dan seismik SD seluas 1.850 kilometer persegi (km2) senilai US$ 7,55 juta. Sesuai dengan Peraturan Pemerintah Nomor 53 Tahun 2017 yang mengatur perlakuan perpajakan pada kegiatan usaha hulu migas dengan PSC gross split, kontraktor akan mendapatkan insentif pajak tidak langsung.

Bisnis Indonesia, Page-24, Thursday, Nov 21, 2019

Pertamina Prepares Rokan Transition

PT Pertamina (Persero) prepared a number of activities in 2019 to begin the transition to managing the Rokan Block located in Riau. After paying the signature bonus December 20, 2018, Pertamina immediately formed a subsidiary to manage the legendary oil and gas work area, namely PT Pertamina Hulu Rokan.

the Rokan Block located in Riau

RP Yudantoro was appointed as President Director of Pertamina Hulu Rokan. This former Director of Operations at PT Pertamina EP Cepu (PEPC) has not been able to comment on the transition to the management of the Rokan Block.

Pertamina EP Cepu (PEPC) Block 

"Later," he said in accordance with PT Pertamina's Upstream Media Workshop event: Upstream Insight.

On the same occasion, Upstream Director of Pertamina Dharmawan Samsu explained, Pertamina's focus is in the transition of the legendary oil and gas block. He explained, Pertamina Hulu Rokan was directly under the Pertamina Upstream Directorate. 

     Dharmawan said, this subsidiary was officially formed on December 20, 2018, the day before the company paid a signature bonus and guaranteed performance for the Rokan Block.

"The signature of the contract is targeted for this month. We are currently in the final discussion stage with the government, "he said.

Furthermore, Pertamina also plans to build an oil pipeline with a downstream scheme that connects Minas-Duri-Dumai and Balam-Bangko-Dumai. The construction of an oil pipeline is considered necessary because the existing pipelines are 40 years old. 

     According to him, the construction of the pipeline does not need to wait for the transition, management, but it can already be done this year. Based on the results of the study, to facilitate production, the pipeline infrastructure must be replaced.

"Chevron has agreed, but it will be detailed in the future. "The route will be installed next to each other, some will be made new," said the former BP Indonesia Head of Country.

In addition to the construction of a pipeline, Pertamina plans to also prepare a well drilling program. Dharmawan acknowledges that drilling wells is not easy because it requires a business agreement.

SKK Migas Head Dwi Soetjipto said that drilling wells is possible in the second semester / 2019. Meanwhile, to encourage upstream oil and gas investment, a concrete breakthrough needs to be done, one of which is the simplification of licensing for operational activities by focusing on SKK Migas. 

      The lecturer at the Trisakti University Faculty of Earth Sciences and Energy Pri Agung Rakhmanto said that innovation in the form of strengthening the role of SKK Migas could be done through the revision of the Oil and Gas Law.

IN INDONESIA

Pertamina Siapkan Masa Transisi Rokan

PT Pertamina (Persero) menyiapkan sejumlah kegiatan pada 2019 untuk mulai melakukan transisi pengelolaan Blok Rokan yang berlokasi di Riau. Setelah membayarkan bonus tanda tangan 20 Desember 2018, Pertamina langsung membentuk anak usaha untuk mengelola wilayah kerja minyak dan gas bumi legendaris tersebut, yaitu PT Pertamina Hulu Rokan. 

RP Yudantoro ditunjuk sebagai Presiden Direktur Pertamina Hulu Rokan. Mantan Direktur Operasional PT Pertamina EP Cepu (PEPC) ini belum dapat memberikan komentar terkait dengan transisi pengelolaan Blok Rokan. 

“Nanti dulu," katanya sesuai acara Media Workshop Direktorat Hulu PT Pertamina: Upstream Insight. 

Pada kesempatan yang sama, Direktur Hulu Pertamina Dharmawan Samsu memaparkan, sejumlah fokus Pertamina dalam transisi blok migas legendaris tersebut. Dia menjelaskan, Pertamina Hulu Rokan berada langsung di bawah Direktorat Hulu Pertamina. 

      Dharmawan menyebutkan, anak usaha ini resmi dibentuk pada 20 Desember 2018, sehari sebelum perusahaan membayar bonus tanda tangan dan jaminan performa untuk Blok Rokan. 

“Tanda tangan kontrak ditargetkan untuk dilakukan pada bulan ini. Saat ini kami berada dalam tahap diskusi final dengan pemerintah,” ujarnya. 

Selanjutnya, Pertamina juga berencana untuk membangun pipa minyak dengan skema hilir yang menghubungan Minas-Duri-Dumai dan Balam-Bangko-Dumai. Pembangunan pipa minyak dianggap perlu mengingat jaringan pipa yang ada sudah berumur 40 tahun. 

     Menurutnya, pembangunan pipa tidak perlu menanti peralihan, pengelolaan, tetapi sudah dapat dilakukan pada tahun ini. Berdasarkan hasil kajian, untuk memperlancar produksi, infrastruktur pipa harus diganti. 

“Chevron sudah sepakat, tetapi akan didetailkan ke depannya. Mengenai jalur nanti dipasang bersebelahan, ada juga yang dibuat baru,” tutur mantan Head of Country BP Indonesia tersebut. 

Selain pembangunan jaringan pipa, Pertamina rencananya juga menyiapkan program pengeboran sumur. Dharmawan mengakui bahwa pengeboran sumur tidak mudah karena memerlukan kesepakatan bisnis. 

Kepala SKK Migas Dwi Soetjipto mengatakan bahwa pengeboran sumur dimungkinkan terjadi pada semester II/2019. Sementara itu, untuk mendorong investasi hulu migas perlu dilakukan terobosan konkret, salah satunya penyederhanaan perizinan kegiatan operasional dengan memusatkan di SKK Migas. 

     Pengajar di Fakultas Teknologi Kebumian dan Energi Universitas Trisakti Pri Agung Rakhmanto mengatakan, inovasi dalam bentuk penguatan peran SKK Migas dapat dilakukan melalui revisi Undang-Undang Minyak dan Gas. 

Bisnis Indonesia, Page-10, Saturday, Jan 19, 2019

National Oil and Gas Lifting Target Increases to 2.02 Million BOEPD

Lifting oil and gas (oil and gas) this year is targeted to increase to 2.02 million barrels of barrel oil equivalent per day (BOEPD), from the 2018 realization of 1.9 million BOEPD. The addition of production is one of the 13 oil and gas projects planned to start operating this year. 

     Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soecipto said, oil lifting in 2019 is targeted at 775 thousand barrels per day (BPD), where last year's realization was 778 thousand BPD. While the gas lifting target is set at 1.25 million BOEPD, up from last year's 1.13 million BOEPD.

"So that oil and gas lifting in 2019 is 2.02 million BOEPD, from the 2018 realization of 1.92 million BOEPD," he said at a hearing at the House of Representatives Commission VII (DPR).

2D & 3D Seismic

To achieve this target, his party has compiled a work program that will be carried out in the exploration block and in the exploitation block. According to him, the exploration block is planned to carry out 4,328 kilometers (km) of 2D seismic, 3D seismic area of ​​4,693 square kilometers (km2), and 57 wells of exploration well drilling.

While in the exploitation block, exploration activities will be carried out in the form of 3,814 km of 2D seismic, 3D seismic area of ​​1,747 km2, and drilling of wildcat wells or delineation of 40 wells.

"Then there will be workover of 969 wells, 29,256 well service activities, and drilling wells for the development of 345 wells," he explained.

In addition, SKK Migas also plans to have 13 oil and gas projects that will be operational this year. In the first quarter, there were two projects planned to start on stream, the Betara Complex Project with the production of 12 million cubic feet per day (million standard cubic feet per day / MMSCFD) by Petrochina International Jabung Ltd. and Terang Sirasun Batur Phase 2 of 200 MMSCFD by Kangean Energy Indonesia Ltd.

Furthermore, in the second quarter, the project which began operations was Ario Damar-Sriwijaya Phase 2 with production of 20 MMSCFD by PT Tropik Energi Pandan, Temalat gas flow to South Kembang Mountain 10 MMSCFD by PT Medco E & P Indonesia, and Bukit Tua Phase-3 31.5 mmscfd by Petronas Carigali Ketapang II Ltd.

Petronas Carigali Ketapang II Ltd.

In the third quarter, there were eight projects that would start flowing oil and gas. In particular, Kedung Keris Full Well Stream Project with production of 3,800 BPH by Exxon Mobil Cepu Ltd, Buntal-5 45 mmscfd by Medco E & P Natuna Ltd, Bison-Iguana-Gajah Putri 163 MMSCFD by Premiere Oil Natuna Sea BY and Suban Compression 780 MMSCFD by ConocoPhilips (Grissik) Ltd.

ConocoPhilips (Grissik) Ltd.

Next, the project operating in the last quarter of this year was the installation of 15 MMSCFD Betung Compressors by PT Pertamina EP Bayan Gas Production Facilities which produced 15 MMSCFD gas and 250 BPH oil by Manhattan Kalimantan Investment Pte Ltd, YY with production. oil 4,605 ​​BPH and 25.5 MMSCFD by PT Pertamina Hulu Energi Offshore North West Java (ONWJ), as well as Calling 20 MMSCFD by Santos (Madura Offshore) Pty Ltd.

PT Pertamina Hulu Energi Offshore North West Java (ONWJ)

"So the total production estimate is 240 thousand BOEPD, which is 1,300 MMSCFD gas and 8,600 BPH oil. "The estimated total investment value is US $ 702 million," Dwi said.

To achieve this year's lifting target, SKK Migas recorded five of the biggest oil producers, namely Exxon Mobil Cepu Limited 216 thousand BPH, PT Chevron Pacific Indonesia 190 thousand BPD, PT Pertamina EP 85 thousand BPD, PT Pertamina Hulu Mahakam 50 thousand BPH, and PT Pertamina Hulu Energi OSES 32 thousand BPH.

Furthermore, the five largest gas producers are PT Pertamina Hulu Mahakam 196 thousand BOEPD, BP Berau Ltd 188 thousand BOEPD, ConocoPhilips (Grissik) Ltd 145 thousand BOEPD, PT Pertamina EP 145 thousand BOEPD, and Eni Muara Bakau 115 thousand BOEPD.

Press Cost Recovery

"Meanwhile, Dwi added, this year's upstream oil and gas investment is targeted at the US $ 14.79 billion, up from last year's US $ 11.99 billion. Next, the target of state revenue from the upstream oil and gas sector is set at the US $ 17.51 ​​billion, not unlike the realization of 2018 of US $ 17.5 billion.

For cost recovery, this year it is targeted to reach the US $ 10.22 billion. This figure is lower than last year's realization of US $ 11.7 billion. According to Dwi, his party is indeed trying to control this cost recovery amount. According to Dwi, one of the ways to reduce cost recovery is the synergy between the contractors (KKKS).

Investor Daily, Page-9, Friday, Jan 11, 2019

Pumping Oil and Gas Lifting in 2019

The Special Task Force for Upstream Oil and Gas (SKK Migas) targets to be able to hoist oil and gas (oil and gas) lifting this year by 2.04 million barrels of oil equivalent per day (boepd). The projection is 7.37% higher than last year's oil and gas lifting which amounted to 1.9 million boepd. 

     Lifting of petroleum will be pumped at 784,520 barrels per day. The target is higher than the realization of oil lifting last year which reached 777,330 barrels of oil per day (bopd). The projection is also higher than the 2018 State Budget target of 775,000 bopd.

As for the estimation of 2019 natural gas lifting, SKK Migas targets to reach 1.26 million boepd or increase from last year's 1.13 boepd gas lifting. The projected figure is also greater than the 2018 State Budget target of 1.25 million boepd.

Head of SKK Migas, Dwi Soetjipto, said that according to the Work Program and Budget (WP&B) this year, oil lifting is targeted to reach 784,520 bopd. The increase in oil lifting this year is projected to be driven by the lifting of Mobil Cepu Ltd in the Cepu Block.

the Cepu Block.

"In 2019, there is an expected shift from Mobil Cepu, which rose 216,000 bopd," he said at the RDP Meeting with Commission VII of the Rakat House of Representatives (DPR). Last year, the Cepu Block only produced 208,730 bopd of petroleum .

When the production of the Cepu Block is projected to start increasing, at the same time Block Rokan's contribution this year is predicted to decline to 190,000 bopd from last year's realization of 209,470 bopd.

For total gas lifting, Dwi said there would be a target increase from the previous 1.13 million boepd to 1.26 million boepd. The projection will be supported by BP Berau in Berau Block (Tangguh) of 188,000 boepd.

BP Berau's gas lifting target fell slightly from the realization in 2018 of 192,000 boepd. In addition, there is also the contribution of gas lifting from the Mahakam Block which is targeted to increase to 196,000 boepd from last year's realization of 149,000 boepd.

the Mahakam Block

"That way, this year's total oil and gas lifting can reach 2,045 boepd," Dwi said.

As for oil and gas investment this year, SKK Migas targets US $ 14.79 billion, an increase of 23% from last year's realization of US $ 11.99 billion.

"We hope that the growth target can be achieved," Dwi said.

2D  adn 3D Seismic Survey

The investment fund will be used for exploration activities in the form of 2D seismic 2D area of ​​4,328 kilometers (km), 3D seismic surveys covering 4,693 km2, as well as 57 wells of exploration drilling.

IN INDONESIAN

Memompa Lifting Migas di Tahun 2019

Satuan Kerja Khusus Hulu Minyak dan Gas Bumi (SKK Migas) menargetkan bisa mengerek lifting minyak dan gas bumi (migas) pada tahun ini sebesar 2,04 juta barrel oil equivalent per day (boepd). Proyeksi tersebut 7,37% lebih tinggi dari realisasi lifting migas tahun lalu yang sebesar 1,9 juta boepd. Lifting minyak bumi akan dipompa sebesar 784.520 barel per hari. 

     Target tersebut lebih tinggi daripada realisasi lifting minyak bumi pada tahun lalu yang mencapai 777.330 barrel oil per day (bopd). Proyeksi itu juga lebih tinggi dari target APBN 2018 sebesar 775.000 bopd.

Adapun estimasi lifting gas bumi 2019, SKK Migas menargetkan bisa mencapai angka 1,26 juta boepd atau meningkat dari realisasi lifting gas tahun lalu yang mencapai 1,13 boepd. Angka proyeksi itu juga lebih besar dari target APBN 2018 yang mencapai 1,25 juta boepd.

Kepala SKK Migas, Dwi Soetjipto mengatakan, sesuai Work Program and Budget (WP&B) pada tahun ini, lifting minyak ditargetkan mencapai 784.520 bopd. Peningkatan lifting minyak tahun ini diproyeksikan terdorong oleh lifting Mobil Cepu Ltd di Blok Cepu. 

"Tahun 2019, ada pergeseran yang diharapkan dari Mobil Cepu, di mana naik 216.000 bopd," ujar dia dalam Rapat Dengan Pendapat (RDP) dengan komisi VII Dewan Perwakilan Rakat (DPR), Tahun lalu, Blok Cepu hanya menghasilkan minyak bumi sebesar 208.730 bopd.

Ketika produksi Blok Cepu diproyeksikan mulai meningkat, di saat yang sama kontribusi Blok Rokan pada tahun ini malah diprediksikan menurun menjadi 190.000 bopd dari realisasi tahun lalu sebesar 209.470 bopd.

Untuk lifting gas secara total, Dwi bilang akan ada kenaikan target dari sebelumnya 1,13 juta boepd menjadi 1,26 juta boepd. Proyeksi tersebut akan ditopang BP Berau di Blok Berau (Tangguh) sebesar 188.000 boepd.

Target lifting gas BP Berau ini turun sedikit dari realisasi tahun 2018 sebesar 192.000 boepd. Selain itu, ada pula kontribusi lifting gas dari Blok Mahakam yang ditargetkan meningkat menjadi 196.000 boepd dari realisasi tahun lalu sebesar 149.000 boepd. 

"Dengan begitu, total lifting migas tahun ini bisa mencapai 2,045 boepd," ungkap Dwi.

Sedangkan untuk investasi migas tahun ini, SKK Migas menargetkan sebesar US$ 14,79 miliar, atau meningkat 23% dari realisasi sepanjang tahun lalu sebesar US$ 11,99 miliar. 

"Kami berharap target pertumbuhan tersebut bisa tercapai," tutur Dwi.

Dana investasi tersebut akan digunakan untuk kegiatan eksplorasi berupa suryei seismik 2D seluas 4.328 kilometer (km), survei seismik 3D seluas 4.693 km2, serta pengeboran eksplorasi sebanyak 57 sumur.

Kontan, Page-14, Friday, Jan 11, 2019

BP Will Boost Tangguh Block Drilling Efficiency

BP Berau Ltd signed the managed consignment (VMC) vendor agreement with PT Seamless Pipe Indonesia Jaya (SPIJ). The cooperation is in the form of procurement of high-grade country tubular goods (OCTG) and other equipment and additional services that will be used to support the drilling activities of the Tangguh Papua Block.

the Tangguh Papua Block

The OCTG includes a sheath pipe and production pipes used in oil and gas production. Head of the Special Task Force for Upstream Oil and Gas (SKK Migas), Dwi Soetjipto assessed that VMC can reduce total ownership costs including the cost of protection, maintenance, storage and inventory carrying costs, so as to produce more cost-efficient operations .

"This agreement can not only produce an efficient operation, but also exceed the minimum 15% rate of domestic content with 26.24%," Dwi said.

In addition, this agreement requires that Seamless Pipe reuse the threading protector GCTG and reduce plastic waste.

IN INDONESIAN

BP Berau Genjot Efisiensi Pengeboran Blok Tangguh

BP Berau Ltd meneken perjanjian vendor managed consignment (VMC) dengan PT Seamless Pipe Indonesia Jaya (SPIJ). Kerjasama itu berupa pengadaan high-grade oil country tubular goods (OCTG) serta perlengkapan dan tambahan jasa lain yang akan digunakan untuk mendukung aktivitas pengeboran Blok Tangguh Papua.

Adapun OCTG meliputi pipa selubung dan pipa produksi yang digunakan dalam produksi minyak dan gas. Kepala Satuan Kerja Khusus Hulu Minyak dan Gas Bumi (SKK Migas), Dwi Soetjipto menilai, VMC dapat mengurangi total biaya kepemilikan termasuk biaya perlindungan, perawatan, penyimpanan serta beban biaya persediaan (inventory carrying cost), sehingga dapat menghasilkan operasi dengan biaya yang lebih efisien.

“Perjanjian ini bukan hanya dapat menghasilkan sebuah operasi yang efisien, namun juga melewati angka minimum 15% persyaratan tingkat kandungan dalam negeri dengan angka 26,24%," kata Dwi. 

Selain itu, perjanjian ini mewajibkan Seamless Pipe menggunakan ulang threading protector GCTG dan mengurangi sampah plastik.

Kontan, Page-14, Thursday, Jan 10, 2019

ExxonMobil, Conoco, & BP Reach the Target

Only three oil and gas cooperation contract contractors were able to achieve the production target of oil and gas sales ready for 2018 and the six largest contractors in the country. 

    The three cooperation contract contractors (KKKS) are ExxonMobil Cepu Ltd. (operators of Banyu Urip Field, Cepu Block), PT Conoco Phillips Indonesia (Block Corridor in South Sumatra), and PT BP Berau (operator of the Tangguh LNG Plant in West Papua).

the Tangguh LNG Plant in West Papua

Meanwhile, PT Chevron Pacific Indonesia, as the largest oil producer at present, records oil lifting in the Rokan Block at 209,000 barrels per day (bpd) or 98% of the 2018 State Budget target. ExxonMobil Cepu Ltd. realized oil lifting of 209,000 bpd or 102% of the target. PT Pertamina EP is 79,900 bpd or 93% of the target.

In terms of natural gas producers, BP Berau, which is the operator of the Tangguh Block, recorded a lifting of 1,076 million cubic feet per day (MMscfd) or 108% of the target. ConocoPhillips Grissik Ltd. recorded production of 840 MMscfd or 104% of the target. 

 BP Berau

    Excellent performance was not followed by PT Pertamina Hulu Mahakam who was the operator of the Mahakam Block. The subsidiary of PT Pertamina (Persero) only realized gas lifting in 2018 amounting to 832 MMscfd or 75% of the 2018 State Budget target.

ConocoPhillips Grissik Ltd.

SKK Migas Head Dwi Soetjipto said that Chevron's performance in Block Rokan this year fell 10% compared to 2017 realization.

ExxonMobil Cepu Ltd.

"[Lifting oil] ExxonMobil Cepu Ltd. up compared to 2017 performance of 203,000 bpd. For Pertamina EP, the oil lifting is indeed "compared to 2017, but it did not reach the 2018 State Budget target," he said last weekend.

the Mahakam Block

Dwi explained, the realization of the Mahakam Block gas lifting was far below the 2018 State Budget target because it was still in the transition period of the management of the former Total Work Area. Only in 2019, is investment not in 2018? This year, they plan to invest a lot [PT Pertamina Hulu Mahakam]. "

Realization of oil lifting in 2018 amounted to 778,000 bpd or 97.25% of the 2018 state budget target of 800,000 bpd. Meanwhile, the oil lifting target in 2019 fell to 775,000 bpd. The realization of oil and gas lifting throughout 2018 amounted to 1.92 million barrels of oil equivalent per day / boepd or 96% of the 2018 state budget target of 2.00 million boepd.

The gas lifting target in 2019 is 1.25 million boepd. Throughout 2018, the realization of Pertamina Hulu Mahakam's oil and gas lifting reached 64 million barrels of oil equivalent with a projected yield of around Rp 22 trillion.

IN INDONESIAN

ExxonMobil, Conoco, & BP Mencapai Target

Hanya tiga kontraktor kontrak kerja sama minyak dan gas bumi yang mampu mencapai target produksi siap jual (lifting) minyak dan gas bumi sepanjang 2018 dan enam kontraktor terbesar di Tanah Air. Ketiga kontraktor kontrak kerja sama (KKKS) itu adalah ExxonMobil Cepu Ltd. (operator Lapangan Banyu Urip, Blok Cepu), PT Conoco Phillips Indonesia (Blok Corridor di Sumatra Selatan), dan PT BP Berau (operator Kilang LNG Tangguh di Papua Barat).

Sementara itu, PT Chevron Pacific Indonesia, sebagai produsen minyak terbesar saat ini, mencatatkan lifting minyak bumi di Blok Rokan sebesar 209.000 barel per hari (bph) atau 98% dari target APBN 2018. ExxonMobil Cepu Ltd. merealisasikan lifting minyak 209.000 bph atau 102% dari target. PT Pertamina EP sebesar 79.900 bph atau 93% dari target.

Dari sisi produsen gas alam, BP Berau yang menjadi operator Blok Tangguh mencatatkan lifting 1.076 juta kaki kubik per hari (MMscfd) atau 108% dari target. ConocoPhillips Grissik Ltd. mencatatkan produksi 840 MMscfd atau 104% dari target. Kinerja sangat baik tidak diikuti oleh PT Pertamina Hulu Mahakam yang menjadi operator Blok Mahakam. Anak usaha PT Pertamina (Persero) tersebut hanya merealisasikan lifting gas pada 2018 sebesar 832 MMscfd atau 75% dari target APBN 2018.

Kepala SKK Migas Dwi Soetjipto mengatakan bahwa kinerja Chevron di Blok Rokan pada tahun ini turun 10% dibandingkan dengan realisasi 2017.

“[Lifting minyak] ExxonMobil Cepu Ltd. naik dibandingkan dengan kinerja 2017 sebesar 203.000 bph. Kalau Pertamina EP, lifting minyaknya memang naik dibandingkan dengan 2017, tetapi memang tidak mencapai target APBN 2018,” tuturnya akhir pekan lalu.

Dwi menjelaskan, realisasi lifting gas Blok Mahakam jauh di bawah target APBN 2018 karena masih dalam masa transisi pengelolaan Wilayah kerja eks Total tersebut. Hanya di tahun 2019, apakah pada 2018 investasi tidak? Tahun ini rencananya investasi mereka [PT Pertamina Hulu Mahakam] banyak.”

Realisasi lifting minyak pada 2018 sebesar 778.000 bph atau 97,25% dari target APBN 2018 sebesar 800.000 bph. Sementara itu, target lifting minyak pada 2019 turun menjadi 775.000 bph. Realisasi lifting minyak dan gas bumi sepanjang 2018 sebesar 1,92 juta barel setara minyak per hari /boepd atau 96% dari target APBN 2018 sebesar 2,00 juta boepd. 

Target lifting gas pada 2019 sebesar 1,25 juta boepd. Sepanjang 2018, realisasi lifting migas Pertamina Hulu Mahakam mencapai 64 juta barrel setara minyak dengan proyeksi imbal hasil untuk negara sekitar Rp 22 triliun.

Bisnis Indonesia, Page-24, Wednesday, Jan 9, 2019