ConocoPhillips Submits Corridor Block Proposal

The Ministry of Energy and Mineral Resources (ESDM) said that Conoco-Philips had submitted a proposal to develop the Corridor Block after its contract expired in 2023. Conoco-Philips is the existing block contractor.

ESDM Ministry's Director General of Oil and Gas, Djoko Siswanto, said that the development proposal had been submitted. The proposal is a complete document of the planned development of the Corridor Block from technical and commercial aspects.

"This (proposal) is being discussed. We have received the proposal, "he said in Jakarta.

Djoko had explained, currently the Corridor Block participating rights holders are Philip Conoco 54%, PT Pertamina Hulu Energi Corridor 10%, and Repsol 36%. Conoco Philip said that he would still cooperate with Repsol in working on the Corridor Block after the production sharing contract (PSC) was completed in 2023. While Pertamina proposed 100% participation rights after 2023.

"Pertamina has submitted its proposal, very thick. So it takes time (for evaluation), "Djoko said.

Vice President of Commercial, Business Development & Relations, ConocoPhillips Indonesia, Taufik Ahmad confirmed that his party had submitted a proposal to extend the management of the Corridor Block to the government.

"I can confirm that we have submitted a proposal to extend the Corridor Block on September 27," he said

The Corridor Block is one of three oil and gas blocks that will expire in 2023 in cooperation contracts. Referring to the ESDM Ministry's initial plan, the fate of the block that expires its 2023 contract will be decided this October. Therefore, the government had previously given ConocoPhillips time until the end of September to submit its proposal.

Until last July, the realization of gas production from the Corridor Block was recorded at 828.41 million standard cubic feet per day / mmscfd, exceeding the target of 810 mmscfd. But until the end of the year, the production of this block is projected to be only 800 mmscfd. While next year, the Corridor Block is targeted to produce 810 mmscfd of gas. The Corridor Block contract was signed in 1983 and ends on December 19, 2023.

According to information on the ConocoPhilip page, the Corridor Block consists of two oil producing fields and seven gas fields. This oil field is Suban Baru and Rawa, while the gas fields are Suban, Sumpal and Dayung. Gas produced from the Corridor Block is sold through long-term contracts into the country and Singapore.

Currently ConocoPhilip continues to invest in maintaining the Corridor Block gas production. Conoco Philips drills development wells in Sumpal and Suban. In addition, the US oil and gas company built additional compressor facilities in Suban.

While the other two oil and gas blocks that were completed in 2023 are Rimau and Jabung blocks, currently managed by Petrochina International Jabung Ltd with participating rights (participating interest / PI) 42.86%, while other PI holders are Petronas Carigali 42.86 % and PT Pertamina (Persero) 14.29%. 

   Until last July, the block's oil production was recorded at 14,525 barrels per day (hph) and gas 210.1 mmscfd. This block contract expires on February 26, 2023.

IN INDONESIAN

ConocoPhillips Serahkan Proposal Blok Koridor

Kementerian Energi dan Sumber Daya Mineral (ESDM) menyatakan Conoco-Philips telah memasukkan proposal rencana pengembangan Blok Koridor pasca kontraknya berakhir pada 2023. Conoco-Philips merupakan kontraktor eksisting blok ini.

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto mengatakan, proposal pengembangan itu telah diserahkan. Proposal merupakan dokumen lengkap rencana pengembangan Blok Koridor dari aspek teknis dan komersil. 

“Ini (proposal) sedang dibahas. Kami sudah terima proposalnya,” kata dia di Jakarta.

Djoko sempat menjelaskan, saat ini pemegang hak partisipasi Blok Koridor adalah Conoco Philip 54%, PT Pertamina Hulu Energi Corridor 10%, dan Repsol 36%. Conoco Philip dikatakannya masih akan menggandeng Repsol dalam menggarap Blok Koridor setelah kontrak kerja sama (production sharing contract/ PSC) selesai di 2023. Sementara Pertamina mengajukan kepemilikan hak partisipasi 100% setelah 2023.

“Pertamina sudah memasukkan proposalnya, sangat tebal. Jadi perlu waktu (untuk evaluasi),” tutur Djoko.

Vice President Commercial, Business Development & Relations ConocoPhillips Indonesia Taufik Ahmad membenarkan bahwa pihaknya sudah memasukkan proposal perpanjangan pengelolaan Blok Koridor ke pemerintah. 

“Saya bisa mengkonfirmasi bahwa kami sudah memasukkan pengajuan perpanjangan Corridor Block pada 27 September,” tuturnya 

Blok Koridor merupakan satu dari tiga blok migas yang akan berakhir kontrak kerja samanya pada 2023. Mengacu rencana awal Kementerian ESDM, nasib blok yang habis kontraknya 2023 akan diputuskan pada Oktober ini. Karenanya, pemerintah sebelumnya memberikan waktu kepada ConocoPhilips sampai akhir September untuk menyerahkan proposalnya. 

Hingga Juli lalu, realisasi produksi gas dari Blok Koridor tercatat sebesar 828,41 million standard cubic feet per day/mmscfd, melebihi target 810 mmscfd. Namun sampai akhir tahun nanti, produksi blok ini diproyeksikan hanya 800 mmscfd. Sementara pada tahun depan, Blok Koridor ditargetkan menghasilkan gas 810 mmscfd. Kontrak Blok Koridor ditandatangani pada 1983 dan berakhir pada 19 Desember 2023.

Menurut keterangan dalam laman ConocoPhilip, Blok Koridor terdiri dari dua lapangan penghasil minyak dan tujuh lapangan gas. Lapangan minyak ini yakni Suban Baru dan Rawa, sementara lapangan gasnya adalah Suban, Sumpal, dan Dayung. Gas yang dihasilkan dari Blok Koridor dijual melalui kontrak jangka panjang ke dalam negeri dan Singapura.

Saat ini ConocoPhilip terus berinvestasi guna menjaga produksi gas Blok Koridor. Conoco Philips melakukan pengeboran sumur pengembangan di Sumpal dan Suban. Selain itu, perusahaan migas Amerika Serikat itu membangun fasilitas kompresor tambahan di Suban.

Sementara dua blok migas lain yang selesai kontraknya pada 2023 yakni Blok Rimau dan Jabung, saat ini dikelola oleh Petrochina International Jabung Ltd dengan kepemilikan hak partisipasi (participating interest/ PI) 42,86%, sementara pemegang PI yang lain adalah Petronas Carigali 42,86% dan PT Pertamina (Persero) 14,29%. Sampai Juli lalu, produksi minyak blok ini tercatat sebesar 14.525 barel per hari (hph) dan gas 210,1 mmscfd. Kontrak blok ini habis pada 26 Februari 2023. 

Investor Daily, Page-9, Wednesday, Oct 3, 2018

Conoco Phillips Already Complete the Proposal

ConocoPhillips Indonesia is serious about extending the Corridor Block project in Muba Regency, South Sumatra, which will expire in 2023. The company has completed two proposals at once, namely technical proposals and commercial proposals.

the Corridor Block - Sumatra

Conoco-Phillips Indonesia's Senior Vice President of Commercial, Business Development and Relations, Taufik Ahmad, said that ConocoPhillips Indonesia had submitted a proposal to re-manage the Corridor Block after the contract expires in 2023. They submitted the proposal to the government on September 27, 2018.

"We can confirm that ConocoPhillips has submitted an extension for the Corridor Block," said Taufik.

ConocoPhillips Gas Station

However, he has not been able to disclose in detail the contents of the proposal submitted to the government, both from a technical and commercial standpoint.

"For a while, our answer was like that first," said Taufik.

The same thing was revealed by the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), Djoko Siswanto, who stated that Conoco-Phillips had formally submitted a proposal to re-manage the Corridor Block. In the proposal, according to Djoko, CococoPhillips will collaborate with Repsol which is currently also a partner in the Corridor Block.

"Yesterday we received a proposal from ConocoPhillips," he said.

According to Djoko, ConocoPhillips' proposal is complete, both technical proposals for managing the block and commercial proposals. While the proposal submitted by PT Pertamina was still a technical problem.

Repsol Gas Station

Djoko said the government began discussing the offerings of the two companies. The government is targeting, immediately decide the manager of the Corridor Block. Currently, the block located in South Sumatra is managed by ConocoPhillips with 54% participation rights. The Repsol holds 36%, and the remaining Pertamina is 10%.

The Corridor Block management contract was first signed in 1983 and ended for 40 years, in 2023. In the first half of this year, SKK Migas recorded that gas production from the Corridor Block reached 841 mmscfd. Until the end of this year, Block gas production, Corridor is projected to reach 798 mmscfd.

IN INDONESIA

Conoco Phillips Sudah Lengkapi Proposal

ConocoPhillips Indonesia serius ingin memperpanjang koutrak Blok Corridor di Kabupaten Muba, Sumatra Selatan, yang berakhir pada tahun 2023. Perusahaan ini sudah melengkapi dua proposal sekaligus,  yakni porposal teknis dan proposal komersial.

Senior Vice President Commercial, Business Development and Relations Conoco-Phillips Indonesia, Taufik Ahmad, mengaku ConocoPhillips Indonesia telah memasukkan proposal untuk kembali mengelola Blok Corridor setelah kontrak berakhir pada   2023 mendatang. Mereka mengajukan proposal tersebut kepada pemerintah pada 27 September 2018.

"Kami bisa mengonfirmasi bahwa ConocoPhillips sudah mengajukan perpanjangan untuk Corridor Block," ungkap Taufik.

Namun, dia belum bisa mengungkapkan secara mendetail isi proposal yang diajukan kepada pemerintah, baik dari sisi teknis maupun komersial. 

"Untuk sementara jawaban kami seperti itu dulu ya," imbuh Taufik.

Hal senada diungkapkan Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM), Djoko Siswanto, yang menyatakan Conoco-Phillips telah secara resmi memasukkan proposal untuk kembali mengelola Blok Corridor. Dalam proposal itu, menurut Djoko, CococoPhillips akan menggandeng Repsol yang saat ini juga menjadi mitra di Blok Corridor. 

"Kemarin kami menerima proposal dari ConocoPhillips," ungkap dia. 

Menurut Djoko, proposal ConocoPhillips telah lengkap, baik pengajuan teknis pengelolaan blok tersebut maupun proposal komersial. Sedangkan proposal yang diajukan PT Pertamina sebelumnya masih masalah teknis.

Djoko mengaku pemerintah mulai membahas penawaran kedua perusahaan. Pemerintah menargetkan, segera memutuskan pengelola Blok Corridor. Saat ini, blok yang berlokasi di Sumatra Selatan itu dikelola ConocoPhillips dengan hak partisipasi 54%. Adapun Repsol memegang 36%, dan sisanya Pertamina 10%. 

Kontrak pengelolaan Blok Corridor ditandatangani pertama kali pada tahun 1983 lalu dan berakhir selama 40 tahun, yakni pada 2023 mendatang. Pada semester pertama tahun ini, SKK Migas mencatat produksi gas dari Blok Corridor mencapai 841 mmscfd. Hingga akhir tahun ini, produksi gas Blok ,Corridor diproyeksikan mencapai 798 mmscfd.

Kontan, Page-14, Monday, Oct 1, 2019

Existing Contractors Interested Continue Management

The Ministry of Energy and Mineral Resources (ESDM) stated that most of the contractors from six oil and gas blocks that have finished their contracts in 2020 are still interested in continuing their management. Appropriate regulation applicable, the existing contractor gets priority as the manager of terminating oil and gas blocks.

Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that five contractors from six oil and gas blocks whose contracts expired in 2020 have expressed interest in reorganizing the currently working block. The six oil and gas blocks terminated in 2020 are South Jambi Block B Block, Brantas, Salawati Bird's Head, Malacca Strait, Makassar Strait, and Onshore Salawati Basin.

"All existing (contractors) have filed, except ConocoPhillips. ConocoPhillips is going to file again with a (contract) gross split, "he said.

South Block Block J Block is currently managed by ConocoPhilips with Participating Interest / PI 45% ownership with PT Pertamina (Persero) 25% and Petrochina International Jambi 30%. Brantas Block is now in Lapindo Brantas with 50% PI, PT Prakasa Brantas 32%, and Minarak Labuan Co Llc 18%. 

    Blok Salawati Kepala Burung is operated by the Joint Operating Body (JOB) of PT Pertamina Hulu Energi (PHE)-Petrochina. The block's participating interest holders are PHE Salawati 50%, Petrochina International Bird Head 16,78%, RHP Salawati Island BV 14,51%, and Petrogas (Island) Ltd 18,7%.

Next, the Malacca Strait Block is managed by EMP Malacca Strait SA, while PI's holders are Petroleum Kondur 34.46%, Malacca Petroleum Ltd 6.93%, OOGC (Malacca Strait) Ltd 32.58%, and PT Imbang Tata Alam 26.03 %. 

    Makassar Strait Block is currently working on Chevron Makassar Strait 72%, PHE 10%, and Tiptop Makassar 18%. Finally, the Onshore Salawati Basin Block operated by Petrochina International Bermuda where the PI holders are Petrogas Basin 34.06%, RH Petrogas 25.94%, Petrochina 30%, and Pertamina 10%. The government will decide the fate of these six blocks next month.

"In early June, the first week (determination of the manager)," said Djoko.

Previously, Djoko explained, in accordance with Government Regulation no. 35 of 2004 Article 28, an existing contractor may apply for a contract extension not later than 10 years and no later than 2 years before the contract is completed. While the government must make new management decisions at least one year before the contract termination. However, the government will attempt to immediately establish new operators of this terminating oil and gas block.

"We are targeting for whose contract is completed by 2020 set in June, next to being 2021 in July 2022 in August 2023 in September 2024 in October 2025 in November, and 2026 in December. So this year is completed for the establishment of new managers, "he said.

In the last week, the government has set new contractors for oil and gas blocks that finish their contracts next year. The government has appointed PT Pertamina Hulu Energi Jambi Merang to be the operator of Jambi Merang Block, PT Pertamina Hulu Energi Tempirai for Raja-Pendopo Block, Kalrez Petroleum (Seram) Ltd for Bula Block, and CITIC Seram Energy Limited for Seram Non-Bula Block.

Referring to the data of the Ministry of Energy and Mineral Resources, there are 21 oil and gas blocks that will expire in 2019-2026. Other blocks to be completed by 2021 are Bentu Segat, Long Strait, and Rokan Block which produce the largest oil in Indonesia. In 2022, following the Tarakan East Block, Coastal Plains, and Pekanbaru, Bengkal, Serta Sengkang will be completed.

Furthermore in 2023, Rimau Block, Jabung, and Corridor. The Corridor Block is one of the blocks with a large gas production in Indonesia which is worked on by Conoco Philips. In 2025, the Bangko Block will follow the completion of the contract.

Investor Daily, Page-10, Tuesday, May 15, 2018

Petronas Booster Oil and Gas Production in Ketapang Working Area

The oil and gas company from Malaysia, Petroliam Nasional Berhad (Petronas) stated that it keeps increasing oil and gas production in the Ketapang Working Area (WA/WK), especially in the Oil and Gas Field of Bukit Tua. Onshore Receiving Facilities (ORF) facility at Bukit Tua in Maspion Industrial Area (KIM), Manyar Sub-district, Gresik managed by Petronas has been equipped with a seabed platform.

The 110-kilometer long seabed pipeline connected to the wellbore refinery is capable of delivering 70 mmscfd or million standard cubic feet per day gas. In addition, ORF Bukit Tua also uses floating production storage and offloading (PPSO) to extract oil in the sea as well as process it into the oil to be directly channeled to Pertamina.

According to Andiono Setiawan, Senior Manager of Corporate Affairs & Administration of Petronas Carigali Muriah ltd, oil production from the Oil and Gas Field at Bukit Tua is currently around 17 thousand barrels per day (bpd).

"We expect oil production to be boosted to an optimum yield of 20,000 bpd while gas production is around 37 mmsfd or 46 MMBTU," he said during a Media Workshop with SKK Migas at ORF Bukit Tua, Gresik.

Special gas produced from the Bukit Tua field, Andiono explained, the production will be channeled to PT Perusahaan Listrik Negara (PLN) to support electricity supply in East Java (East Java).

Blogger Agus Purnomo in Petronas PC Ketapang

This gas distribution through Petrogas Jatim Utama (PJU) is a Regional Owned Enterprise (BUMD) Provincial Government (Provincial Government) East Java. Andiono said Bukit Tua Oil Field Wap Ketapang succeeded in delivering oil in May 2015 ago. The inauguration of the first production from ORP Bukit Tua was done on 4 November 2015 ago.

As is known, Bukit Tua WK Ketapang Oil Field located on the North Coast of Madura Island East Java is a production sharing contract (PSC) contract with the Government of the Republic of Indonesia. This PSC contract has been formally signed through the Special Unit for Upstream Oil and Gas Operations (SKK Migas) on 11 May 1998.

Andino claims that since taking control of WK Ketapang, after taking over ConocoPhillips shares on December 1, 2000, until July 25, 2008, Petronas operations have shown positive performance. At least, there are now five structures or wells have been drilled in this WK namely Bukit Tua Selatan, Jenggolo, Bukit Panjang, Payang, and Teram.

IN INDONESIA

Petronas Tingkatkan Produksi Migas di Wilayah Kerja Ketapang

Perusahaan minyak dan gas (migas) asal Malaysia, Petroliam Nasional Berhad (Petronas) menyatakan terus mengenjot produksi minyak dan gas di Wilayah kerja (WK) Ketapang, terutama di Lapangan Migas Bukit Tua. Fasilitas penerimaan darat atau Onshore Receiving Facilities (ORF) Bukit Tua di Kawasan Industri Maspion (KIM), Kecamatan Manyar, Gresik yang dikelola Petronas telah dilengkapi platform pipa dasar laut.

Pipa dasar laut sepanjang 110 kilometer yang terhubung dengan kilang sumur bor itu mampu menyalurkan gas dengan kapasitas 70 mmscfd atau million standard cubic feet per day. Di samping itu, ORF Bukit Tua juga menggunakan unit terapung di lautan, floating production storage and offloading (PPSO) untuk mengambil minyak di laut sekaligus memprosesnya menjadi minyak untuk langsung dialirkan ke Pertamina.

Menurut Andiono Setiawan, Senior Manager Corporate Affairs & Administration Petronas Carigali Muriah ltd, produksi minyak dari Lapangan Migas Bukit Tua saat ini sekitar 17 ribu barel per hari (bph).

"Kami herharap produksi minyak dapat digenjot hingga hasil optimum 20.000 bph sedangkan produksi gas sekitar 37 mmsfd atau 46 MMBTU," ujarnya dalam kesempatan Lokakarya Media bersama SKK Migas di ORF Bukit Tua, Gresik.

Khusus gas yang diproduksi dari Lapangan Bukit Tua, Andiono menjelaskan, hasil produksi itu akan dialirkan ke PT Perusahaan Listrik Negara (PLN) untuk mendukung penyediaan listrik di Wilayah Jawa Timur (Jatim).

Penyaluran gas ini melalui Petrogas Jatim Utama (PJU) yang merupakan Badan Usaha Milik Daerah (BUMD) Pemerintah Provinsi (Pemprov) Jatim. Andiono mengatakan, Lapangan Migas Bukit Tua WK Ketapang berhasil mengalirkan minyak bumi pada Mei 2015 silam. Peresmian produksi pertama dari ORP Bukit Tua dilakukan pada 4 November 2015 silam.

Seperti diketahui, Lapangan Migas Bukit Tua WK Ketapang yang berada di Pantai Utara Pulau Madura Jawa Timur adalah kontrak production sharing contract (PSC) dengan Pemerintah Republik Indonesia. Kontrak PSC ini telah resmi ditandatangani melalui Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) pada 11 Iuni 1998 silam.

Andino mengklaim, sejak menguasai WK Ketapang yakni setelah mengambil alih saham ConocoPhillips pada 1 Desember 2000 hingga 25 Juli 2008 silam, kegiatan operasi Petronas menunjukkan kinerja positif. Setidaknya, kini ada lima struktur atau sumur telah dibor di WK ini yaitu Bukit Tua Selatan, Jenggolo, Bukit Panjang, Payang, dan Teram.

Harian Bangsa, Page-4, Wednesday, May 9, 2018

2016 Oil Investment Realization is Estimated to Reach US $ 11.4 Billion

    This investment is mostly used to finance oil and gas production activities, followed by development and exploration. In detail, the costs for the exploitation block are the US $ 10.3 billion and the exploration blocks are US $ 94 million. So the main component of expenditure is for production. 

    He explained that the investment realization was still below the target of US $ 12 billion because the number of several activities carried out had not been as planned. In detail, the realization of exploration well drilling was recorded at only 43 units of the target of 67 units and new development drilling wells of 223 wells out of the target of 245 wells.

Blogger Agus Purnomo in SKK Migas

"Until the end of the year, the possibility of realizing investment is the only US $ 11.4 billion," said Deputy of Financial Control of SKK Migas, Parulian Sihotang.

    The decline in the number of oil and gas activities is the main cause. However, SKK Migas noted that there were 10 new oil and gas production facilities that could be completed in 2016. 

ExxonMobil Cepu Limited (EMCL)

    In detail, Train-B Blok Cepu by ExxonMobil Cepu Limited (EMCL), onshore receiving facility (ORF) Bukit Tua Field by Petronas Carigali Ketapang 2 Limited,

Blogger Agus Purnomo in Petronas Carigali Ketapang

Donggi and Pondok Makmur by PT Pertamina EP Dayung Compression-2 by ConocoPhilips Grissik Ltd, IDD Bangka by Chevron Indonesia Company, North Duri Development Area 13 by PT Chevron Pacific Indonesia, Karendan by Ophir Energy, KRA South by Star Energy Kakap Ltd, and Ario Damar-Sriwijaya Phase 1 by Tropik Pandan Energy.

PT Chevron Pacific Indonesia

    Although the investment is below the plan, SKK Migas is optimistic that it can achieve the oil and gas production and lifting targets in accordance with the 2016 Revised State Budget. Amien explained that as of 30 November, oil production was recorded at 833 thousand BPD and gas 7,966 mmscfd. 

    Meanwhile, the realization of oil lifting was 821.23 thousand BPD and gas 6,643 mmscfd. Based on this realization, SKK Migas estimates that the achievement by the end of the year will exceed the oil target of 820 thousand BPD and gas 6,438 mmscfd. In detail, the estimated oil production is 831.5 thousand BPD and gas 7,945 mmscfd.

    Meanwhile, the outlook for lifting until the end of the year will be the same as the realization this November, namely 2 million barrels of oil equivalent per day from the target of 1.9 million barrels of oil equivalent per day.

"So from production and lifting, we are optimistic that what is set in the 2016 Revised State Budget will be achieved," said Amien.

    This year, SKK Migas has approved 27 development plans / PODs as well as plans of future development / POFD. The entire POD and POFD are estimated to be able to increase oil and gas reserves by 204 million barrels of oil equivalent. From this POD there is also an oil and gas investment plan in the future of up to the US $ 2.85 billion.

"From a total of 27 POD and POFD, the government can receive the US $ 6.55 billion," he said.

    The estimated gross revenue from oil and gas until December 31 will reach the US $ 23.98 billion. This figure includes a cost recovery of US $ 11.47 billion. Net revenue is US $ 12.5 billion, of which the contractor's share in the US $ 3.22 billion and the government is the US $ 9.29 billion.

"This is decreasing from last year," he said.

Investor Daily, Page-9, Tuesday, Dec 6, 2016

Upstream Oil and Gas Investigation Realization Declines

    Upstream oil and gas investment this year is lower than last year's US $ 12.05 billion. The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects that upstream oil and gas investment by the end of this year will only reach the US $ 11.4 billion. Meanwhile, the realization of upstream oil and gas investment from January to November 2016 reached the US $ 10.43 billion.

Blogger Agus Purnomo in SKK Migas

    SKK Migas Deputy for Financial Control, Parulian Sihotang, said that this year's upstream oil and gas investment target will not be achieved because it is still affected by low oil prices. Cooperation contract contractors (KKKS) have reduced their activities this year. 

    The investment realization was dominated by production activities which reached US $ 10.3 billion, while exploration activities were the only US $ 309 million. SKK Migas noted that there are ten new oil and gas production facilities that could be completed this year.

Block Cepu

    The blocks include Train-B Block Cepu (ExxonMobil Cepu Limited EMCL), onshore receiving facility (ORF) Bukit Tua Field (Petronas Carigali Ketapang 2 Limited), Donggi and Pondok Makmur (PT Pertamina EP), Dayung Compression-2 (ConocoPhilips Grissik Ltd.), and IDD Bangka (Chevron Indonesia) In addition, the North Duri Development Area 13 (PT Chevron Pacific Indonesia), Karendan (Ophir Energy), KRA South (Star Energy Kakap Ltd.), and Ario Damar-Sriwijaya Phase-1 (Tropical Pandan Energy).

    Oil and gas investment this year is low because several activities carried out by contractors are also still below target. The realization of exploration well drilling was only 43 units of the target of 67 units and development wells were only 223 wells of the target of 245 wells.

"At least US $ 11.4 billion will reduce activities due to prices," he said.

    Head of SKK Migas Amien Sunaryadi said that next year's investment cannot be estimated because he is waiting for the 2017 work plan and budget / WP & B preparation process.

     SKK Migas is optimistic that this year's oil and gas production target is ready to sell or lifting at 821,800 barrels per day (BPD) of oil and gas 6,643 MMscfd.

"There is a decrease of 13.3% if you do nothing. 2016 is great for maintaining its declining, ”he said.

    This year, SKK Migas has approved 27 plans of development / PoD and plans of future development / POFD. The entire POD and POFD are estimated to be able to increase oil and gas reserves by 204 million barrels of oil equivalent.

    From the POD there is also an oil and gas investment plan of up to the US $ 2.85 billion. Amien added that the gross revenue from oil and gas as of December 31 was the US $ 23.98 billion. This figure includes a cost recovery of US $ 11.47 billion, thus a net income of US $ 12.5 billion. 

    The revenue sharing for contractors is US $ 3.22 billion and the government is the US $ 9.29 billion. The 2017 lifting production target, which is 815,000 bpd of oil and 6,440 MMscfd of gas, will be borne by ten large contractors.

Chevron Pacific Indonesia

    Contractors supporting oil lifting are Chevron Pacific Indonesia (Block Rokan) 228,908 bpd, ExxonMobil Cepu Limited EMCL (Cepu Block) 200,000 bpd, PT Pertamina EP (spread in Indonesia) 84,214 bpd, Total E&P Indonesie (Mahakam Block) 52,852 bpd.

    Lifting was supported by PT Pertamina Hulu Energi Offshore North West Java Limited (Block ONWJ) 36,500 bpd, CNOOC SES Limited (Blok South East Sumatra) 31,398 bpd, Chevron Indonesia Company (Blok East Kalimantan) 17,700 bpd, ConocoPhilips (Blok B South Natuna) 17,400 BPD, Petronas Carigali Ketapang Limited (Ketapang Block) 15,631 BPD and PetroChina International Jabung Limited (Blok Jabung) 14,400 BPD.

Bisnis Indonesia,Page-30,Tuesday,Dec,6,2016

MEDC Acquisition of Two Subsidiaries ConocoPhillips Rp 3 Trillion

   It is clear how much money has been spent by PT Medco Energy Tbk (MEDC) to acquire ConocoPhillips Indonesia Inc. Ltd (CIL) and ConocoPhillips Singapore Operations Pte Ltd (CSOP). To take ownership of the two subsidiary companies of ConocoPhillips, Medco spent US $ 239 million. 

   When calculated in rupiah, the total acquisition value reaches more than Rp 3 trillion. This acquisition is divided into two separate transactions. The CIL acquisition value is the US $ 238 million, while the acquisition value of CSOP shares is the US $ 1 million.

    Medco acquisition, through its subsidiary, Medco Natuna. CIL is the beneficial owner of 40% participation of South Natuna Sea Block B (SNSB). Average CSop is a company that operates an onshore receiving facility in Singapore. In addition to getting the operating capability of offshore oil and gas integrated, this acquisition also strengthens our position, "said Fakhrini Nilamsari, Corporate Secretary MEDC. MEDC lately is diligent to make acquisitions.

    Previously, the family-owned issuers Arifin was official holds 50% ownership of PT Amman Mineral lnvestama, which has an 82.2% stake in PT Newmont Nusa Tenggara (NNT) with a value of US $ 2.6 billion acquisition. With the agenda, the automatic need for new sources of funding both to pay off previous debts in order to increase leverage as well as for capital requirements for assets recently acquired increased. In mid-September, MEDC issued bonds worth Rp 125 trillion.

    These bonds are part of the Sustainable Public Offering (PUB) II Phase II to total funds raised the target of Rp 5 trillion. These debt securities are divided into two series, namely Series A of Rp 284.1 billion with a fixed interest rate of 10.8% per annum and a term of three years. Then Series B worth Rp 208 billion with a fixed interest rate of 11.3% and a five-year tenure. Both bonds with a total of Rp 492 billion was secured with full capability (full commitment).

    Then, the remaining bonds amounting to Rp 758 billion will be secured with the best ability (best effort). MEDC will use the bond proceeds to pay down debt and capital expenditures. 60% of funds from the bond will be used to pay off the bonds I Medco in 2013 worth Rp 1.5 trillion. The bonds will mature in March 2018 with a coupon of 8.85%.

Kontan, Page-5, Tuesday, Nov, 22,2016

Regulatory Reform Needs, Accelerate Oil and Gas Infrastructure

According to an economic observer from Airlangga University, Dr. Nafik HR, the current government must reform its economic policies which are still using a neoliberal paradigm by replacing them with economic policies that are in favor of the people's and national interests and of course constitutional.

Let's just say frankly that the abundant natural wealth so far has been managed by foreign parties, and it is very profitable for them. Therefore, this is what must be taken over to become fully national control.

Then protect the control and development as well as the use of alternative energy such as geothermal, hydropower, solar power, and others that are still very potent. Later it can be managed by state companies such as Pertamina or other national private companies, to help the Indonesian government reduce national imports and in order to increase the production of domestic energy resources and consumption.

Of course, to manage this abundant oil and gas sector and alternative energy, Pertamina needs full support, especially regulations from the government, because so far it turns out that, in terms of managing oil and gas resources, Pertamina is not given the main authority and especially when compared to foreign companies such as Petronas (Malaysia). ), Shell (Netherlands), Chevron (USA), Total (France), ConocoPhillips (USA), ExxonMobil (USA), CNOOC (China), ENI (Italy), KUFPEC (Kuwait), British Petroleum (UK), and so. Just look at how the Regulation of the Minister of Energy and Mineral Resources Number 15 of 2015 is actually very detrimental to Pertamina.

So that whenever this country is declared to exist, the hope that this nation will have energy independence will definitely not be realized. The government's mistakes in the past in managing our natural wealth should be used as a lesson so that in the future it will be returned again for the prosperity of the people.

A legal observer from the University of Muhammadiyah Surabaya (UMS) Umar Sholahudin assessed that regulation is still seen as one of the homework that must be done in national development planning. Umar admits that there are many overlapping, multi-interpreted, disharmony, or inconsistent laws and regulations, all of which actually disturb the investment climate or economic growth, for example, there are regulations governing the same sector but with different mechanisms.

Not a single state institution knows the exact number of laws and regulations issued by the central government and local governments. It means that the government, and the House of Representatives (DPR), are not serious about reforming regulations. The Minister of Energy and Mineral Resources Regulation No. 15/2015 on the management of Oil and Gas working areas whose contract period will expire is very clearly detrimental to Pertamina as a state company.

This ministerial regulation considers Pertamina to be the same as other oil and gas companies when it wants to take over the management of the oil and gas Working Area (WK) which will expire. The full authority of the Ministry of Energy and Mineral Resources to choose/determine which companies will be granted oil and gas management concessions will undermine Pertamina's important role.

In fact, the ministerial regulation has clearly stated that the government does not at all give guarantees to Pertamina to control the concession of the oil and gas working area which will expire, even though there has been a Government Regulation of the Republic of Indonesia Number 35 of 2004 which favors the national interest in terms of controlling national oil and gas resources.

In short, Pertamina must be more empowered, play a dynamic role in obtaining full concessions or the holder of all concessions for all projects at the forefront of the oil and gas and energy sectors so that they have a major impact on Pertamina's progress, and can choose partners if necessary.

In the 2015-2019 National Medium-Term Development Plan (RPJMN) stipulated by Presidential Regulation No. 2 of 2015, energy security is described as to the extent to which energy can be provided in a timely manner and with guaranteed availability, affordable prices, and acceptable quality.

The indicators are the amount of energy, the availability of infrastructure, the price of energy, the quality of energy, as well as the energy portfolio or mix. Energy security also has an element of sustainability so its management must pay attention to the carrying capacity of the environment. According to Dwi Sutjipto, the government is serious about realizing energy independence, as evidenced by the acceleration in the development of energy infrastructure projects.

Various regulations stimulate the development of energy sources at a time when there is a lack of discovery of national oil and gas reserves and fluctuations in world oil prices. The acceleration of energy infrastructure is the main key to creating energy independence now and in the future.

According to Dwi Sutjipto, Pertamina has become the backbone of national energy fulfillment. Not only contributing to the production of energy sources in the form of oil and natural gas which contribute as foreign exchange for the country, Pertamina also has the task of providing and distributing the ever-increasing supply of fuel oil (BBM) and gas.

Pertamina's Vice President of Corporate Communication Wianda Pusponegoro explained as a national oil company (NOC) Pertamina has the responsibility to ensure that energy supply is always in a safe condition for national energy security, under any circumstances. In order for this to be realized, Pertamina has launched 5 strategic priorities, namely, the development of the upstream sector, efficiency in all lines, increasing the capacity of refineries and petrochemicals, developing infrastructure and marketing, and improving the financial structure.

Wianda Puponegoro

According to Wianda, the five strategic priorities are implemented through various innovations. Pertamina's innovations include ensuring that all projects to support energy independence continue. Such as refinery development projects and the construction of new refineries, as well as the development of marketing infrastructure continues according to the established roadmap. International business development is a critical factor for Pertamina to develop into an international class company and to support the realization of national energy security.

Bhirawa, Page-4, Wednesday, Oct 26, 2016

Three Steps the Government Reduces Gas Prices

In accordance with President Joko Widodo's orders, the Ministry of Energy and Mineral Resources continues to reduce gas prices to the US $ 5 per MMBtu. There are three ways to be done. Namely, the amendment to the contract of buying and selling gas on 31 contracts, making gas clusters based on the location of gas supply and buyers and imports.

Director-General of Oil and Gas at the ESDM Ministry IGN Wiratmaja Puja said the government was reviewing a number of contracts to reduce gas prices. In addition, Acting Minister of Energy and Mineral Resources Luhut Binsar Panjaitan said, his party would form zoning.

Luhut Binsar Panjaitan

Western Indonesia gets gas from western Indonesia, and eastern Indonesia gets gas from the east. If gas for eastern Indonesia is not enough, it can use imported gas. While gas from eastern Indonesia will be exported.

Luhut gave an example that the price of gas from Malaysia or Brunei or the Middle East could be cheaper, the US $ 3-US $ 4 per MMBtu and if regasification and distribution could be the US $ 8 per MMBtu for Medan. Cheaper than the price of gas in Medan reaching the US $ 13 per MMBtu. Well, finally after that, gas imports.

With regard to the three policies, ConocoPhillips Development and Relations VP Joang Laksanto emphasized that his party could not comment on the matter of the contract amendment.

Wianda Pusponegoro

"The contract must be agreed to by both parties. Wianda Pusponegoro VP Corporate Communication PT Pertamina said it understands the current gas prices. Now together seek comprehensive solutions from upstream to downstream, said Wianda Pusponegoro.

Gunung Sardjono, President Director of PT Pertamina Hulu Energi, criticized the cluster move. According to him, the government did cluster mapping based on demand and supply. If you match but the price hasn't been found, you can find a solution. The important thing is no one feels disadvantaged.

Kontan, Page-14, Thursday, Oct 13, 2016