SKK Migas Optimistic that Oil and Gas Block Increase

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that oil and gas production from the 13 oil and gas blocks whose contracts expire in 2020-2022 can be increased in the future. 

Blogger Agus Purnomo in SKK Migas

    This is because the work program to be carried out also increases along with the transfer to a new operator.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said, there was an increase in the work program in terminated oil and gas blocks in line with the certainty of a contract extension that had been given by the government. With the increase in this work program, his party projects that oil and gas production in this termination block can increase.

"The crucial period in 2021, oil and gas production must increase in the following year. This is in line with the vision of a production target of 1 million barrels per day (BPD) or a total of 3.2 million BOPED (barrel of oil equivalent per day/barrel of oil equivalent per day) in 2030, "he said.

Referring to SKK Migas data, the 13 oil and gas termination blocks are estimated to reach a low of around 250 thousand BOEPD this year and stay in the same range next year. Next, oil and gas production is projected to start increasing in 2022 and reaching more than 300 thousand BOEPD in 2023. The amount of oil and gas production is estimated to last until 2027 and again increase in 2028.

His party has prepared a number of strategies to maintain oil and gas production in the 13 termination blocks. In the short term, the increase in production is carried out through additional development drilling activities, as well as workover and well service.

"Drilling has a drastic increase from 2020 to 2025, as well as workover. Well service has also increased slightly, "Dwi explained.

Meanwhile, the Firm Work Commitment (KKP) promised by the operator will be used to increase oil and gas production in the medium and long term through exploration and enhanced oil recovery (EOR).

"The total KKP fund is the US $ 1.17 billion. We will also accelerate KKP activities if possible, "said Dwi.

Of the total KKP funds, Dwi explained, the US $ 782.7 million was budgeted for exploration activities. In detail, these funds will be used to carry out 41 G and G studies, 2,150 kilometers (km) of 2D seismic, 3,050 square kilometers of 3D seismic, and drilling of 70 exploration wells. Furthermore, the EOR budget is US $ 386.8 million which includes the implementation of two EOR studies and 9 EOR pilot projects.

Another thing that also determines the future production of termina block oil and gas is the transfer of management of the Rokan Block. His party and Chevron Indonesia have agreed to start investing in Well drilling during the transition period this November. This step is necessary to curb the rate of decline in production in the oil and gas block, which is the second-largest oil producer in Indonesia.

"In the previous 2019-2020, there were no drilling plans, except for this November. In 2021, there are 200 wells to be drilled, 112 wells from Chevron, the rest will be continued by Pertamina after August 2021, "Dwi explained.

However, Dwi noted there are a number of things that must be considered in maintaining the termination block oil and gas production. One of them, in increasing oil and gas production by adding activities, economic factors will be a challenge for oil and gas companies. Therefore, the decision to provide incentives is also important.

"Other things are the execution of the work plan, the schedule on stream which is on time, and the best effort to carry out the drilling," he said.

The 13 oil and gas blocks whose contracts expire in 2020-2022 are Block South Jambi B, Makassar Strait, Brantas, Salawati, Malacca Strait, Bird's Head, Bentu, Selat Panjang, Rokan, Tarakan, CPP, Tungkal, and Sengkang. 

Chevron

    The operators of 13 oil and gas blocks have successively switched to Jindi South Jambi B, Chevron Makassar Limited, Minarak Brantas Gas, Petrogas (Island) Ltd, EMP Malacca Strait, Petrogas (Basin) Ltd, EMP Bentu, Sumatra Global Energi, PT Pertamina Hulu Rokan. , PT Medco E&P Tarakan, PT Bumi Siak Pusako, Montd'Or Oil Tungkal Ltd, and Energy Equity Sengkang.

Investor Daily, Page-9, Saturday, Oct 3, 2020

Pertamina Selects Partners to Manage the Rokan Block

    PT Pertamina (Persero) continues to select potential partners who will participate in managing the Rokan Block. PT Chevron Pacific Indonesia's contract in the Rokan Block will expire on August 9, 2021. Pertamina Hulu Rokan will replace Chevron as the operator of the Rokan Block.

PT Chevron Pacific Indonesia's

    Currently, the Rokan Block production is around 170,000 barrels per day (BPD). Director of Pertamina Hulu Rokan, R. P. Yudantoro, revealed that the process of looking for partners had not actually started. However, there are already companies that are interested in partnering with Pertamina.

The Rokan Block

"What already exists, several companies have sent letters of interest through Pertamina (Persero)," said Yudantoro.

    Even so, he did not want to specify which parties had proposed interest in jointly managing the Rokan Block. 

Fajriyah Usman

    Vice President for Corporate Communication of PT Pertamina, Fajriyah Usman, was reluctant to comment further regarding Pertamina's plans to seek partners. The reason is, currently, Pertamina's focus is to prepare a transition process towards the transfer of management in August next year.

"Pertamina Hulu Rokan is currently focused on preparing the transition process, ensuring operations in August 2021 will continue to run well," said Fajriyah Usman.

    Preparation Also includes rig procurement. Currently, the data transition related to exploration and exploitation, especially contracts and vendors from Chevron Pacific Indonesia, is considered to make the transition easier. 

    Pertamina Hulu Rokan targets to be able to drill 44 wells after the transfer of management of the Rokan Block later. Yudantoro said the rig procurement was being prepared.

"There will be five to six rigs to drill new wells during the four months (since the transfer of management)." Yudantoro said.

    The transfer of management letter has been issued by the Ministry of Energy and Mineral Resources (ESDM) on August 6, 2018. Its content is to give 100% management of the Rokan Block to Pertamina on August 9, 2021. Pertamina will pay a signature bonus of US $ 783 million or Rp. 11.3 million. trillion. The exact commitment is the US $ 500 million.

Blogger Agus Purnomo in SKK Migas

    To streamline the drilling process, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with Chevron Pacific Indonesia has signed ahead of agreement (HoA) Rokan Block on September 28, 2020. 

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto said this signing was to ensure The continuation of Chevron's investment in the Rokan Block until management is transferred in August 2021.

"It takes ahead of agreement (HoA) and an amendment to the WK Rokan contract, which contains the scope of drilling activities and the return on investment costs at the end of the contract period, as well as the Abandonment and Site Restoration reserve costs which have not been clearly regulated in the generation contract," said Dwi Soetjipto.

    In this agreement, according to him, Chevron will get clarity regarding the return on investment. Thus, the government hopes that through Chevron's investment, the Rokan Block production can be maintained. The HoA signing is a short-term step taken in maintaining oil and gas production next year.

    ESDM Minister Arifin Tasrif confirmed that the government will oversee Chevron's investment and drilling implementation which is planned to start in November 2020. 

    President Director of PT Chevron Pacific Indonesia (CPI). Albert Simanjuntak said that the Rokan Block has become the foundation of the energy industry and has made a significant contribution to the progress of the country for decades.

"This agreement ensures that this strategic block will continue to play an important role in energy sovereignty in Indonesia for the coming year," said Albert.

Kontan, Page-12, Tuesday, Sept 29, 2020

SKK Migas Invites Chevron to Start Drilling in the Rokan Block

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that PT Chevron Pacific Indonesia (CPI) could immediately begin drilling in the Rokan Block to maintain oil and gas production during the management transition period. 

PT Chevron Pacific Indonesia (CPI)

    This is after the agreement to accelerate investment in the Rokan Block was agreed.

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto said, to optimize the production level of the Rokan Block during the transition period, the government needs to oversee the continuation of investment before the block production sharing contract (PSC) ends. For this reason, heads of agreement (HoA) and amendments to the Rokan Block PSC are needed as the basis.

"This contains the scope of drilling activities and returns on investment costs at the end of the PSC period, as well as post-mining fund reserves (Abandonment and Site Restoration / ASR) which have not been clearly regulated in the generation contract, ”he said.

According to him, this agreement benefits both parties. This is because, with a clear return on investment, it is hoped that the Rokan Block oil production will not decline during the transition period. In the short term, this strategy is also to maintain national oil and gas production from falling in the next year.

the Rokan Block

"This agreement allows Chevron to drill in the Rokan Block before the end of the contract period in August 2021," Dwi added.

Blogger Agus Purnomo in SKK Migas

Following this agreement, SKK Migas and Chevron will finalize implementation details in the coming weeks. This is to support the commencement of drilling activities. Previously, SKK Migas had stated that Chevron was committed to drilling 104 wells in the Rokan Block, namely 11 wells this year and 104 wells in 2021. 

    The total additional oil production produced is estimated at 5,000 bpd. In detail, Chevron will operate 2 rigs to drill 11 wells in the Rokan Block in November-December this year. Furthermore, in January next year, Chevron will run 5 rigs to drill 96 wells.

The estimated cost required for drilling is the US $ 11 million in 2020 and US $ 115 million next year. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reminded Chevron and SKK Migas to realize the terms agreed upon in the HoA. 

    This is because the implementation of this provision will have an impact on efforts to achieve the national oil and gas production target next year according to the 2021 APBN macro agreement.

"We will continue to monitor its implementation periodically to ensure the commitment of all parties goes according to the agreement, especially the certainty of the implementation of drilling activities which will start in November 2020," said Arifin.

Meanwhile, President Director of PT CPI Albert Simanjuntak said, the Rokan Block is the foundation of the energy industry and has contributed significantly to the progress of the country for decades.

"This agreement is the result of a strong and collaborative partnership with the Government of Indonesia and ensures that this strategic block will continue to play an important role in Indonesia's energy sovereignty for years to come," said Albert.

This year, the Rokan Block is targeted to produce 170,763 bpd of oil. Until the end of last June, the realization of this block's oil production was recorded to have exceeded the target, reaching 179,682 bpd. However, until the end of the year, the projected production of the Rokan Block is only 170 thousand bpd. The Rokan Block is the second-largest oil producer in Indonesia.

Investor Daily, Page-10, Tuesday, Sept 29, 2020

Pertamina Focuses on Increasing Production

 

PT Pertamina (Persero) through its subsidiary continues to work on completing the work plan that has been launched, in order to increase the company's contribution to the achievement of national oil production.

In 2019, Pertamina's upstream contribution is around 41% of total national production, while this year it is targeted to increase to 49%. Furthermore, in 2021 Pertamina's contribution is expected to reach 60%, especially with the company's entry into the Rokan Block.

the Rokan Block

President Director of PT Pertamina EP Eko Agus Sardjono said that in facing the remainder of the 2020 period, the Pertamina subsidiary will focus on optimizing domestic gas absorption which is expected to be able to boost gas and condensate production.

"Apart from that, Pertamina EP also focuses on completing work plans for drilling exploration wells, seismic surveys, drilling development wells, workover, and well service so that the performance achievement at the end of the year can be achieved optimally," he said.

As of August 2020, Pertamina EP has realized 58 wells and 5 wells are underway, while the revised 2020 Corporate Budget Work Plan (RKAP) target is 79 wells. Meanwhile, 107 rework activities have been completed and 7 are in progress from the revised RKAP 2020 target of 192 activities. Realization of well maintenance and well intervention 2,103 activities have been completed from the revised 2020 RKAP target of 2,547 activities.

In addition, in August 2020 Pertamina EP has increased production through 4 development wells located in the work area of ​​Pertamina EP Asset 1, Asset 2, Asset 3, and Asset 5. With the additional production in August, overall Pertamina EP development drilling activities The 2020 Work Plan has succeeded in contributing 7,809 barrels of oil per day (bopd) and 5.6 MMscfd of gas to Pertamina EP's overall oil and gas production.

In accordance with the 2020 revised RKAP, until July 2020 Pertamina EP oil production reached 80.3 MBOPD or 99.6% of the target, and gas production was 866 MMscfd or 95% of the target. 

    Chief Executive Officer of PT Pertamina Hulu Energi (Subholdingupstream) Budiman Parhusip previously explained that the realization of Pertamina EP, which was still below the target, was caused by obstacles that arose during the Covid-19 pandemic and also low world oil prices. On the other hand, Pertamina will also disburse the US $ 80 million for drilling wells in the Rokan Block during the transition period which will start in August 2021.

President Director of Pertamina Hulu Rokan, RP Yudantoro, explained that during the transition period, the company will begin drilling as many as 44 wells in the Rokan Block. He said Pertamina Hulu Rokan (PHR) together with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) had determined the coordinates of the entire well being drilled.

Blogger Agus Purnomo in SKK Migas

Currently, his party is preparing a rig for the drilling process. Pertamina Hulu Rokan needs 5 units - 6 units of rigs for drilling in 2021. Later, the rig units will be provided by PT Pertamina Drilling Service Indonesia (PDSI).

"We drilled the US $ 1.5 million for each well — only US $ 2 million," he said.

PT Chevron Pacific Indonesia (CPI)

Next year, it is targeted that as many as 184 wells will be drilled to smooth the transition of the management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina. Yudantoro added that his party continues to strive to accelerate the transfer of exploration and exploitation data from the main fields so that they can immediately prepare for the drilling of 44 wells in the Rokan Block. Pertamina targets to carry out the drilling immediately after the transition from Chevron to PHR on August 9, 2021.

"PHR will ensure that drilling preparations from August to December 2021 can run smoothly, therefore intensive communication will be carried out with CPI so that the data transfer process, information procedures [SOP], and land preparation can run quickly, without significant obstacles," he explained.

In addition, Yudantoro continued, currently, the process is still being carried out, among others, the construction process of replacing a 364 km long trunk line that carries crude oil from the Rokan field to a storage tank in Dumai, which can then be used as a supply for product processing at the Pertamina Dumai Refinery.

ROKAN BLOCK TRANSITIONS

PHR, he said, is also preparing for the transition of Chevron workers who will later be empowered at PHR and at Pertamina in accordance with applicable regulations, such as workers in other management transfer blocks that Pertamina has previously handled.

"With the support of all stakeholders, we all hope that the transition in the Rokan Block can go well so that it can maintain oil and gas production to encourage national energy security and independence," he added.

The performance of a number of Pertamina's subsidiaries that were operators in several oil and gas blocks previously received the spotlight because they did not reach the set target. Based on SKK Migas data, as of June 2020, there were four Pertamina subsidiaries that did not reach the ready-made or lifting oil production target. In fact, so far, it is included in the top 15 cooperation contract companies (KKKS) as contributors to the national oil and gas lifting.

SKK Migas also asked Pertamina EP to optimize this year's work plan so that the production target is ready to sell or lifting can be achieved. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said that the optimization of Pertamina EP's work plan must be realized because the contribution of this optimization will greatly affect the achievement of the lifting target.

"We hope that Pertamina EP can realize all the programs planned in the remaining 2020," he said.

Trisakti University teaching staff, Pri Agung Rakhmanto, assessed that Pertamina EP's performance results have an important influence and role in the national lifting performance. This is because Pertamina EP's overall production is around 82,000 bpd. He considered that the weakening of oil prices and the Covid-19 pandemic affected the capability investment of a number of oil and gas companies and must implement efficiency so that currently optimization is very necessary.

"It is quite important, Pertamina EP's overall production is around 10% -12% of the total national lifting," he explained.

Bisnis Indonesia, Page-21, Wednesday, Sept 23, 2020

SKK Migas Strengthens Coordination

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with PT Chevron Pacific Indonesia (CPI) continues to coordinate to ensure the transition to the Rokan Block takes place according to plan.

Blogger Agus Purnomo in SKK Migas

"SKK Migas and CPI are currently coordinating to carry out field preparations. If the head of agreement is signed, activities can go ahead, ”said Susana Kurniasih, Plt. Head of SKK Migas Program and Communication Division.

PT Chevron Pacific Indonesia (CPI)

Drilling in the Rokan Block by Chevron is confirmed to be still on schedule, namely November 2020. He said Chevron will use two rigs to drill the Rokan Block. Chevron is said to be able to increase the production of the Rokan Block working area to 5,000 barrels per day (bopd) from drilling 11 wells this year.

the Rokan working area (WK)

As of July 2020, oil production in the Rokan working area (WK) had fallen 170,000 bopd. For this reason, the process of transferring management of the Rokan Block must be smooth without causing the level of decline in production to continue to grow.

Sonita Purnomo

"As with any transition, there are a number of things that are being discussed so far, including options to support the state in optimizing production from this strategic asset," said Chevron's Corporate Communication Sonita Purnomo.

Dwi Soetjipto

Previously, the Head of SKK Migas Dwi Soetjipto explained that he was taking care of an environmental audit to transfer the management of the Rokan Block with Chevron. 

    Referring to the production sharing contract for the Rokan Block CA, Chevron does not have the obligation to reserve funds after mining. However, Chevron has committed to providing funds for the Abandonment Site Restoration or contaminated land.

In order for the transition process to run smoothly, PT Pertamina (Persero) was also asked to prepare for post-transition needs in the Rokan Block. Currently, Pertamina is also known to be preparing to procure a rig for drilling the Rokan Block which will be carried out in 2021. 

Fajriyah Usman

    VP Corporate Communication of Pertamina Fajriyah Usman explained, Pertamina has prepared rig procurement considering that Chevron has no more rig contracts since 2018 in the Rokan Block.

"For the Pertamina Hulu Rokan 2021 drilling, the preparation of drilling rigs is currently being processed through new procurement and Pertamina Group synergies," said Fajriyah Usman.

Bisnis Indonesia, Page-4, Monday, Sept 21, 2020

Pertamina Drilled 180 wells in Rokan

PT Pertamina Hulu Rokan (PHR) targets the drilling of new wells in the Rokan Block to reach 180 wells by 2022 after the transfer of management starts in August 2021.

the Rokan Block by Chevron

The number of wells drilling has increased from the planned period of August 2021 to December 2021, which was only 44 wells.

"For 2022, we will drill 180 new wells," said Pertamina Hulu Director Rokan R.P. Yudantoro.

He did not want to reveal the estimated rig requirements for drilling the 180 new wells. However, it is certain that drilling 44 wells in 2021 will be the responsibility of PT Chevron Pacific Indonesia (CPI), the main manager of the Rokan Block.

PT Chevron Pacific Indonesia (CPI)

Chevron has determined the location of 44 wells and through discussions with the Special Task Force for Upstream Oil and Gas Implementation (SKK Migas). Chevron will begin the preparation for the drilling location for 44 wells in early 2021.

"In order not to be constrained by land acquisition and construction problems (which will be done by Chevron), Pertamina Hulu Rokan chose a drill point that could be done from the existing well pad, so the only work needed was repairing the location," he said.

Pertamina is currently focused on completing a number of stages including IT systems and petrotechnical data transfer applications, licensing, electricity-steam and gas supplies, goods and services contracts, and preparation for drilling in 2021. For the provision of goods and services contracts, previously Pertamina started meeting 150 potential partners. 

    Work and conduct socialization related to procurement processes and procedures. The potential partners are Chevron's partners who have handled a number of goods and services needs in the Rokan Work Area.

Regarding the continuation of the head of agreement (HoA) transition which took effect in September 2020, the Deputy for the Coordination of Maritime Sovereignty and Energy, the Coordinating Ministry for Maritime Affairs and Investment, Purbaya Yudhi Sadewa said, Currently the finalization stage at the Ministry of Energy and Mineral Resources is especially for the certainty of the implementation of the HoA. Even so, he considered it difficult to ensure that the HoA could be signed this week. However, Chevron's drilling plan for November has not changed.

Kontan, Page-12, Friday, Sept 18, 2020

Pertamina-Chevron Continue to Discuss the Transition of the Rokan Block

 

PT Pertamina Hulu Rokan (PHR), a business unit of PT Pertamina (Persero) which will operate the Rokan Block working area, continues to communicate with PT Chevron Pacific Indonesia (CPI) ahead of the takeover of operatorship on August 9, 2021.

the Rokan Block by Chevron

During this transition period, PHR will make efforts so that the Rokan Block operation can run well, one of which is related to the procurement of goods and services.

Director of PHR RP Yudantoro said, to date, PHR is mapping the existing contracts in the CPI and the PHR work plan after the transition. PHR is also currently determining the needs for goods and services of all user function entities.

In order to speed up the procurement process, PHR has also started meeting with potential work partners and carried out socialization related to the procurement process and procedures at PHR. 

    This socialization was carried out online on Thursday (3/9) to around 150 prospective partners who were CPI's working partners. have handled a number of goods and services needs in the Rokan Block.

"We realize that PHR cannot work alone to optimize and develop the Rokan Block working area. For this reason, it is necessary to involve partners in the procurement of goods and services we need for the operational needs and interests of Working Area the Rokan block, "said Yudantoro.

Regarding data on work partners and contracts, Yudantoro said that his party was assisted by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). 

Blogger Agus Purnomo in SKK Migas

    PHR continues to communicate intensively with CPI to accelerate the transition of documents or data from CPI's working partner contracts during the 2017-2021 period, including those that have expired the contract period but are still required for the operation of the Rokan Block working area. 

    This contract document is necessary considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Rokan Block working area. While That is, non-routine operations are carried out based on the work plan and production targets determined by the PHR.

"PHR will immediately prepare a contract for WK Rokan based on information from the existing operator, thus enabling PHR to prepare an adequate scope of work and technical specifications," said Yudantoro.

The procurement of goods and services at PHR, said Yudantoro, will be carried out according to company needs by carrying out efficiency in all fields. Coordination with work partners who will become PHR business partners can be done through business to the business mechanism. The Rokan block is the largest oil block in Indonesia.

This 6,220-kilometer oil and gas block has 96 fields with three fields having good oil potential, namely Duri, Minas, and Bekasap. Moment Currently, the operational management of the Block Rokan is CPI.

Previously, PT Pertamina Hulu Energi (PHE), Pertamina's upstream sub-holding opened opportunities for local entrepreneurs and contractors in the Riau region to become part of the Rokan Block. Pertamina promised to involve local entrepreneurs to be able to participate in the development of the Rokan Block. 

    PHE CEO Budiman Parhusip explained that the involvement of local entrepreneurs, both from the service and equipment sectors, is expected to help improve Riau's economy. He said, not only local companies Regional-owned enterprises (BUMD) also receive a portion with participating interest (PI) of 10 percent.

Republika, Page-4, Saturday, Sept 12, 2020

Pertamina Begins Transition of Rokan Block

 

PT Pertamina through Pertamina Hulu Rokan (PHR) ensures that a number of transition efforts are still being carried out ahead of the transfer of management of the Rokan Block in August 2021.

The Rokan Block By Chevron

One of the things being done at this time is the transition of contract documents related to the procurement of goods and services. PHR conducted outreach with 150 prospective partners who were partners of PT Chevron Pacific Indonesia (CPI) in managing the Rokan Block.

Director of PT PHR, Yudantoro, explained, to speed up the process of procuring goods and services, PHR has met with 150 prospective partners and conducted socialization related to procurement processes and procedures at PHR. Yudantoro said that his party could not work alone to optimize and develop the Rokan Block.

"This requires the involvement of partners in the procurement of goods and services that we need for the needs and operational interests of the Rokan Block," said Yudantoro.

Blogger Agus Purnomo in SKK Migas

Currently, together with the Special Task Force for Upstream Oil and Gas Implementation (SKK Migas), PHR has conducted intensive communication with CPI in order to accelerate the transition of contract documents. The documents in question, namely data from work partner contracts owned by CPI for the period 2017 to 2021, include whose contract period has expired but is still needed for the Rokan Block operation.

This contract document is necessary, considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Rokan block Work Area. Meanwhile, non-routine operations are carried out based on work plans and production targets determined by PHR.

"PHR will immediately prepare a contract for the Rokan block working area based on information from the existing operator, thus enabling PHR to prepare adequate work scope and technical specifications," said Yudantoro. The procurement of goods and services at PHR will be carried out according to company needs.

Kontan, Page-10, Saturday, Sept 12, 2020

Pertamina Optimizes Transition Period for Rokan Block

 

PT Pertamina Hulu Rokan (PHR) continues to prepare to take over the operations of the Rokan Block working area (WK) which will start on August 9, 2021. During this transitional period, PHR made maximum efforts so that the operations of the Rokan WK would continue to run well, one of which was related to the procurement of goods and services.

Director of PHR RP Yudantoro said that until now PHR is mapping the existing contracts at PT Chevron Pacific Indonesia (CPI) and the post-transition PHR work plan.

The Rokan Block By Chevron

PHR is also in the middle of determining the needs for goods and services of all user function entities. To speed up the procurement process later, PHR has also started meeting with potential partners and socializing the procurement process and procedures at PHR. 

    This socialization was carried out online on September 3 yesterday to around 150 prospective partners who are CPI partners who have handled a number of goods and services needs at the Working Area of the Rokan Block.

"We realize that PHR cannot work alone to optimize and develop the Working Area of the Rokan Block. This requires the involvement of partners in the procurement of goods and services that we need for the operational needs and interests of the Working Area of the Rokan Block, "said Yudantoro.

With regard to data on work partners and contracts, Yudantoro said, assisted by SKK Migas, PHR continued to communicate intensively with CPI to accelerate the transition of documents or data from work partner contracts owned by CPI during the 2017-2021 period, including those whose contracts had expired but still needed for the operation of Working Area of the Rokan Block. 

    This contract document is necessary considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Working Area of the Rokan Block. Meanwhile, non-routine operations are carried out based on work plans and production targets determined by PHR.

"PHR will immediately prepare a contract for Working Area or the Rokan Block based on information from the existing operator, thus enabling PHR to prepare an adequate scope of work and technical specifications," he said.

The procurement of goods and services at PHR, added Yudantoro, will be carried out according to company needs by making efficiency in all fields. Coordination with work partners who will become PHR business partners can be done through the Business to the Business mechanism.

"PHR will synergize with Pertamina Group and BUMN in limited areas, for example, the procurement of helicopters with Pelita Air, the procurement of some onshore rigs with PDSI. So, we will also involve other local and national companies in operating activities at Working Area of the Rokan Block, "he said.

Investor Daily, Page-9, Saturday, Sept 12, 2020

Environmental Audit Completed, Rokan Block's Fate in the Hands of the Ministry of Energy and Mineral Resources

The fate of the continued development of the Rokan Block is now in the hands of the Ministry of Energy and Mineral Resources (ESDM) after the Environmental audit was completed in August 2020.

the Rokan Block by Chevron

Deputy for Maritime Sovereignty and Energy Coordination at the Coordinating Ministry for Maritime Affairs and Investment Purbaya Yudhi Sadewa said the recommendations given by the Environmental audit team had reached the Coordinating Ministry for Maritime Affairs and Investment.

"It is still in line with the plan so far. There are almost no obstacles," he said

Purbaya said, currently the finalization stage is in the hands of the Ministry of Energy and Mineral Resources, especially to ensure the implementation of the head of agreement (HoA). However, it is a bit difficult to ensure that the HoA can be signed this week. Although he did not specify, he said Chevron's drilling plan for next November had not changed.

Blogger Agus Purnomo in SKK Migas

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) confirmed that the Rokan Block Environmental audit process was completed in August this year. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said PT Chevron Pacific Indonesia (CPI) is considered to carry out management in accordance with environmental management laws and regulations.

"The results of the audit have been reported to the Coordinating Minister for Marves and then SKK Migas and Chevron will sign ahead of the agreement for the management of the Rokan Block during the transition period," said Susana.

The HoA that will be signed includes a commitment to drilling activities in November 2020 and drilling in 2021. Not only that, but HoA will also include the post-mining recovery fund reserve, whose activities will be carried out by Pertamina Hulu Rokan (PHR). Susana ensured that this would not interfere with PHR's operating costs.

"The finalization process is being carried out, all parties hope it will be completed this September," said Susana.

Kontan, Page-13, Monday, Sept 7, 2020

Change of ownership of IDD projects must be completed this year

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the change in ownership of Participating Shares (participating interest / PI) for the Indonesia Deepwater Development (IDD) project must be completed this year. Otherwise, the deep-sea gas project will not start immediately.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said that Chevron Indonesia as the operator of the IDD Project is still looking for an oil and gas company to work on the project. If indeed there will be a change in PI ownership, his party emphasizes that it can be completed this year. Because if it takes too long the IDD project may not be developed immediately.

“Actually, the real timeline [change of PI owner] depends on the deal. But I want to be this year. If it doesn't start immediately, the project won't take place, ”he said.

the IDD project  by Chevron

According to him, the urgency of completing the change in shareholders in the IDD Project is different from the Abadi LNG Project, the Masela Block. 

the Masela Block.

    This is because until now, the revised Plan of Development / PoD for the IDD project has not yet been completed. So that if the change of PI owner is not completed immediately, the project cannot operate.

ENI

Regarding the opportunity for ENI to replace Chevron, Dwi explained that the Italian oil and gas company currently also holds shares in the IDD Project. Not only that, but ENI also manages two oil and gas projects which are located adjacent to the Chevron project. Even ENI already has production facilities because the project has been operating since 2017.

Chevron

"Apart from the agreement between the two parties, ENI has a good positioning to be able to develop the IDD project. ENI has facilities and can be integrated, and if possible, the investment can be reduced so that the economy is better, "he explained.

However, the government is not in a position to suggest who will replace Chevron in the IDD Project. The government will look at who will enter and consider the experiences of oil and gas companies wishing to enter the gas project in the Makassar Strait.

"So our consideration is for this project to start, be able to produce, and become the supporting capacity to achieve the target of 1 million barrels per day (bpd)," said Dwi.

On the other hand, he said the government supports the extension of the Production Sharing Contract / PSC block of oil and gas that is included in the IDD Project, namely the Meeting oil and gas block and the Ganal oil and gas block. 

    This is because the Rapak oil and gas block contract will expire in 2027 and the Ganal oil and gas block will be completed in 2028. Without the extension, he admits that oil and gas companies will find it difficult to develop the IDD project.

"Although later asking for approval from the government regarding the extension of the PSC. But the government will support the extension if the contractor is serious about carrying out the project, "he said.

In the IDD Project, Chevron is the operator and majority shareholder of 63%. Chevron is working on this deep-sea oil and gas project with other joint venture partners, namely Eni, Tip Top, PT Pertamina Hulu Energi (PHE), and partners in Muara Bakau.

Referring to SKK Migas data, until last June, the IDD Project was still in the process of evaluating the approval of the POD revision. In addition, this project is still in the process of evaluating the proposed extension of the Rapak and Ganal Block PSCs.

The IDD project combines two oil and gas fields, namely Gendalo Field, Ganal Block, and Gehem, Rapak Block. Still based on SKK Migas data, this project is targeted to reach a peak gas production of 844 million standard cubic feet per day / MMscfd and 27 thousand BPD of oil. The US $ 6.98 billion projects is planned to start operating in the fourth quarter of 2025.

Investor Daily, Page-10, Tuesday, August 11, 2020