Exxon and Copi Expand Exploration

ExxonMobil don Conocohillips (Copi) plans to conduct exploration outside its operations area. This opens the contractor's opportunity to get additional new reserves.

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said the two cooperation contract contractors (KKKS) from the United States had stated the plan. According to him, the KKKS choice to conduct exploration outside its working area has considered the potential for additional oil and gas reserves. This is considered positive.

Dwi Soetjipto

 "That means a lot of potential for the country, rather than drilling in existing areas where additional production and reserves are not too large," he said.

Dwi added that currently the funds collected from the defined work commitment (KKP) for exploration have reached US $ 2.5 billion. The funds are obtained from gross profit sharing contracts. One of the KKKS that have conducted exploration activities from the KKP fund is PT Penamina Hulu Energi Jambi Merang (PHE Jambi Merang) in the form of a 2D seismic survey with a track length of 30,000 kilometers. Cumulatively, an additional investment of the Jambi Merang MPA is up to US $ 239.3 million for exploration and exploitation activities.

"What the Jambi Merang PHE has done with its KKP does not have a better meaning if it is [only] done in Jambi Merang. So [they] were given the opportunity to use the KKP in other areas, "he added.

SKK Migas also encouraged Pertamina and Medco as a local oil and gas company to boost exploration to keep up with Repsol's success in the Top 10 Discovery 2019. Pertamina and Medco have the largest areas number 1 and 3 in the same basin. To encourage investors to explore, SKK Migas claims to have conducted a roadshow to introduce oil and gas basins in the country.

The reason is the success ratio of exploration well discovery in Indonesia is higher and the global average. Referring to the SKK Migas data, until the third quarter of 2019 exploration success ratio was 45%, while in the world in the last 2 years it was 35%. From the latest exploration findings, there are at least an additional 880 million barrel oil equivalent (MMboe) and 230 MMbo from 13 work areas.

Azi N. Alam

Regarding exploration plans in open areas, ExxonMobil agrees to the possibility. Vice President of Public and Government Affairs of ExxonMobil Indonesia Azi N. Alam said that the company remained committed to Indonesia and continued to look for other opportunities.

the Cepu Block in East Java Indonesia

"Both in the Cepu Block and throughout Indonesia, as part of our long-term commitment in Indonesia," he said.

At present, ExxonMobil is the largest oil-producing KKKS in Indonesia, passing Chevron Pacific Indonesia. As of September 2019, ExxonMobil Cepu Ltd recorded a production of ready to sell or lifting of 216,011 barrels per day (bpd) or exceeding the target set at 216,000 bpd. On the other hand, ConocoPhillips (Grissik) Ltd also recorded a brilliant performance in terms of lifting. The Corridor Block operator successfully recorded 833 MMscfd of gas lifting as of September 2019 or 102.8% of the target set by the 2019 APBN.

Meanwhile, Vice President of Commercial and Business Development at ConocoPhillips Taufik Ahmad said that his party always evaluates open areas as a routine part of the search for potential new oil and gas reserves. Moreover, with the extension of the Corridor Block, the activity will continue, "he said.

Meanwhile, the government gave ConocoPhillips the management of Corridor Block 46% (operator), PT Pertamina Hulu Energi Corridor 30%, and Talisman (Corridor) Ltd. 24%. The Corridor Block production sharing contract will be valid for 20 years, effective from December 20, 2023. The estimated investment value from the implementation of the first 5 year KKP is US $ 250 million and a signature bonus of US $ 250 million.

Participation rights owned by the contractor include a 10% participation right that will be offered to Regionally Owned Enterprises according to ESDM Regulation No. 37/2016. Existing work commitments are directed to work on six work packages that include Lower Palembang Paddles, Lower Palembang Suban, Telisa Well Suban Far East, and Suban Far East (continued prospects).

The Corridor Block is one of the oil and gas blocks of strategic value considering the amount of gas production around 1,100 MMscf or equivalent to 12% of the total national natural gas production at this time. In addition, oil and condensate production reached 6,600 bopd.

IDD PROJECT

In other developments, Chevron Pacific Indonesia needs partners to share the risk of developing a deep sea project or Indonesia Deepwater Development (IDD) phase II. Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Djoko Siswanto agrees that Chevron is looking for partners before submitting a revised phase II development plan (POD). They ask for time until 2020, "he said.

Previously, the approval of the development plan (POD) had the potential to be delayed due to the possibility of a change in the consortium of companies working on the IDD project. Deputy Head of SKK Migas Fatar Yani Abdurrahman said that he did not yet know Chevron's future in developing the IDD Project. However, there will be a change in the consortium and waiting for the entry of new partners.

"Still waiting. I don't know whether Chevron is coming out or not, but the consortium has changed. He [Chevron] did not say to leave, but he was definitely looking for [partners] to develop. ”

In the IDD Project, Chevron is recorded as a project operator with 62% participating rights. Based on SKK Migas's explanation, the IDD Gendalo-Gehem Project is targeted to start production in the first quarter of 2024. The project is now in the stage of drafting detailed design auction documents (FEED), contract awarding, and submission of expenditure approvals (AFE) for surveys.

     With the potential change in the consortium, continued Fatar, the preparation and approval of the IDD Project POD was delayed again. SKK Migas is waiting for a new consortium report before discussing POD.

"Maybe if he deals in January, after he reports to us. Well, partner or what is the point, this is our final [POD material] proposal, "he said.

He added that there was no specific deadline for determining new partners in the development of the IDD project. Fatar claimed that he could not force the development of the project without looking at the economics of the project considered by KKKS.

IN INDONESIA

Exxon dan Copi Perluas Eksplorasi

ExxonMobil don Conocohillips (Copi) berencana melakuakn eksplorasi di luar area operasinya. Hal tersebut membuka peluang kontraktor untuk mendapatkan tambahan cadangan baru.

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto mengatakan kedua kontraktor kontrak kerja sama (KKKS) asal Amerika Serikat itu telah menyatakan rencananya tersebut. Menurutnya, pilihan KKKS untuk melakukan eksplorasi di luar wilayah kerjanya telah mempertimbangkan potensi tambahan cadangan minyak dan gas bumi (migas). Hal tersebut dinilai positif.

 “Itu potensi berarti buat negara, daripada mereka ngebor di wilayah existing yang tambahan produksinya dan cadangannya gak terlalu besar," ujarnya.

Dwi menambahkan saat ini dana yang dihimpun dari komitmen kerja pasti (KKP) untuk eksplorasi sudah mencapai US$2,5 miliar. Dana tersebut didapatkan dari kontrak bagi hasil kotor atau gross split. Salah satu KKKS yang telah melakukan aktivitas eksplorasi dari dana KKP adalah PT Penamina Hulu Energi Jambi Merang (PHE Jambi Merang) berupa survei seismik 2D dengan panjang lintasan 30.000 kilometer. Secara kumulatif, tambahan investasi KKP Jambi Merang hingga 2024 senilai US$239,3 juta untuk kegiatan eksplorasi dan eksploitasi.

“Yang dilakukan PHE Jambi Merang dengan KKP-nya tidak memiliki arti yang lebih bagus kalau [hanya] dilakukan di Jambi Merang saja. Jadi [mereka] diberi kesempatan menggunakan KKP-nya di area lain,” tambahnya.

SKK Migas juga mendorong Pertamina dan Medco sebagai perusahaan migas lokal untuk menggenjot eksplorasi guna mengikuti kesuksesan Repsol yang masuk Top 10 Discovery 2019. Adapun Pertamina dan Medco memiliki area terluas nomor 1 dan 3 di cekungan yang sama. Untuk mendorong ketertarikan investor melakukan eksplorasi, SKK Migas mengklaim telah melakukan roadshow untuk memperkenalkan cekungan-cekungan migas yang ada di Tanah Air. 

Pasalnya, success ratio penemuan sumur eksplorasi di Indonesia lebih tinggi dan rata-rata global. Merujuk data SKK Migas, hingga kuartal III/2019 success ratio eksplorasi sebesar 45%, sementara di dunia dalam 2 tahun terakhir sebesar 35%. Dari sisi penemuan eksplorasi terkini, setidaknya sudah ada tambahan 880 million barrel oil equivalent (MMboe) dan 230 MMbo dari 13 area kerja.

Terkait rencana eksplorasi di area terbuka, ExxonMobil mengamini adanya kemungkinan tersebut. Vice President Public and Government Affairs ExxonMobil Indonesia Azi N. Alam mengatakan pihaknya tetap berkomitmen kepada Indonesia dan terus mencari peluang lain.

“Baik di Blok Cepu maupun di seluruh Indonesia, sebagai bagian dari komitmen jangka panjang kami di Indonesia,” katanya.

Saat ini, ExxonMobil merupakan KKKS penghasil minyak terbesar di Indonesia melewati Chevron Pacific Indonesia. Per September 2019, ExxonMobil Cepu Ltd mencatatkan produksi siap jual atau lifting sebanyak 216.011 barel per hari (bph) atau melebihi target yang ditetapkan sebanyak 216.000 bph. Di sisi lain, ConocoPhillips (Grissik) Ltd pun mencatatkan kinerja cemerlang dalam segi lifting. Operator Blok Corridor ini berhasil mencatatkan lifting gas sebanyak 833 MMscfd per September 2019 atau 102,8% dari target yang ditetapkan APBN 2019.

Sementara itu, Vice President Commercial and Business Development ConocoPhillips Taufik Ahmad mengatakan pihaknya selalu melakukan evaluasi atas area terbuka sebagai bagian rutin pencarian potensi cadangan migas baru. Apalagi, dengan adanya perpanjangan Blok Corridor, kegiatan tersebut akan diteruskan,” katanya.

Adapun, pemerintah memberikan kewenangan pengelolaan Blok Corridor kepada ConocoPhillips sebesar 46% (operator), PT Pertamina Hulu Energi Corridor 30%, dan Talisman (Corridor) Ltd. 24%. Kontrak bagi hasil Blok Coridor akan berlaku untuk 20 tahun, efektif sejak 20 Desember 2023. Perkiraan nilai investasi dari pelaksanaan KKP 5 tahun pertama senilai US$250 juta dan bonus tanda tangan US$ 250 juta. 

Hak partisipasi yang dimiliki oleh kontraktor tersebut termasuk hak partisipasi 10% yang akan ditawarkan kepada Badan Usaha Milik Daerah sesuai Permen ESDM No. 37/2016. Komitmen kerja pasti yang ada diarahkan untuk mengerjakan enam paket pekerjaan yang mencakup Dayung Lower Palembang, Suban Lower Palembang, Telisa Well Suban Far East, Serta Suban Far East (prospek lanjutan).

Adapun Blok Corridor merupakan salah satu blok migas yang bernilai strategis mengingat besarnya produksi gas sekitar 1.100 MMscf atau setara dengan 12% dari total produksi gas bumi nasional saat ini. Selain itu, produksi minyak dan kondensat mencapai 6.600 bopd.

PROYEK IDD

Pada perkembangan lain, Chevron Pacific lndonesia membutuhkan mitra untuk berbagi risiko pengembangan proyek laut dalam atau Indonesia Deepwater Development (IDD) tahap II. Pelaksana Tugas Direktur Jenderal Migas Kementerian ESDM Djoko Siswanto mengamini bahwa Chevron sedang mencari mitra sebelum mengajukan revisi rencana pengembangan (POD) IDD tahap II. Mereka minta waktu sampai 2020,” tuturnya.

Sebelummya, pengesahan rencana pengembangan (POD) berpotensi molor akibat kemungkinan perubahan konsorsium perusahaan yang menggarap proyek IDD muncul. Wakil Kepala SKK Migas Fatar Yani Abdurrahman mengatakan belum mengetahui masa depan Chevron dalam pengembangan Proyek IDD. Hanya saja, akan ada perubahan konsorsium dan menunggu masuknya mitra baru.

“Masih menunggu. Saya enggak tahu Chevron keluar atau tidak, tapi konsorsium berubah. Dia [Chevron] tidak bilang keluar, tapi yang jelas Iagi cari [mitra] agar bisa dikembangkan.”

Di Proyek IDD, Chevron tercatat sebagai operator proyek dengan hak partisipasi sebesar 62%. Berdasarkan paparan SKK Migas, Proyek IDD Gendalo-Gehem ditargetkan mulai produksi pada kuartal I/2024. Proyek ini kini masuk tahap penyusunan dokumen lelang desain rinci (FEED), contract awarding, dan pengajuan persetujuan pengeluaran (AFE) untuk survei. 

     Dengan adanya potensi perubahan konsorsium itu, lanjut Fatar, maka penyusunan dan persetujuan POD Proyek IDD kembali tertunda. SKK Migas menunggu laporan konsorsium baru terlebih dahulu sebelum melakukan pembahasan POD.

“Mungkin kalau dia deal pada Januari, setelah dia laporkan ke kami. Nah, mitra atau apa pokoknya ini proposal [bahan POD] terakhir kami,” tuturnya.

Dia menambahkan tidak ada tenggat waktu tertentu untuk menentukan mitra baru dalam pengembangan proyek IDD. Fatar mengaku tidak bisa memaksakan pengembangan proyek tanpa melihat keekonomian proyek yang dipertimbangkan KKKS. 

Bisnis Indonesia, Page-24, Thursday, Nov 14, 2019

The Government Asks for Corridor Block Production Not to Decline

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif urged that oil and gas Corridor Block production be maintained or even increased. This follows that a Corridor Block (2023-2043) production cooperation contract (PSC) has been signed. 

Arifin Tasrif

     Arifin said, after the current contract expired at the Corridor Block was again managed by the existing contractor namely ConocoPhilip (Grissik) Ltd, Talisman Corridor LTd (Repsol), and PT Pertamina Hulu Energi Corridor.

ConocoPhilip

Because the government considers that the existing contractor has good technical and financial skills to continue managing this block. He hopes the existing contractor can make a positive contribution to state revenue and national oil and gas production. 

the Corridor Block

      Especially considering the Corridor Block is one of the largest natural gas producer blocks in Indonesia with gas production of 1,100 million cubic feet per day (million standard cubic feet per day / mmscfd) or 12% of total national production, and oil and condensate 6,600 barrels per day ( bph).

"With the contract extension being signed, so that [the contractor] not only maintains, but also increases the rate of oil and gas production in the Corridor Block, and seeks to discover new oil and gas reserves through exploration activities," he said in Jakarta.

Based on ESDM Ministry data, the new PSC Corridor Block will use a gross split scheme. Regarding the profit sharing (split), for base split and variable split, KKKS received a 48.5% allocation for oil and 53.5% for gas. Furthermore, progressive splits will be adjusted to developments in oil prices and cumulative oil and gas production. 

     Furthermore, the portion of participating interest rights (participating interest / PI) in the Corridor Block will also change after 2023. At present, ConocoPhilips holds a PI of 54%, Repsol 36%, and Pertamina 10%. After the existing PSC ends, ConocoPhilips has a 46% stake, Pertamina 30%, and 24% Repsol.

Repsol Girls

According to Arifin, before the contract was signed, the existing cooperation contract contractor (KKKS) had deposited a signature bonus of US $ 250 million. In addition, the contractor also promised a five-year fixed work commitment (KKP) of US $ 250 million. This number is the second largest since the signing of the contract in Indonesia.

"Hopefully with the signing of the Corridor Block gross split contract, it will hopefully arouse investors' enthusiasm for investment in Indonesia's upstream oil and gas," he said.

Referring to the Ministry of Energy and Mineral Resources data, KKKS has proposed a number of activities that will be carried out using KKP funds. In the first year, the contractor will work on drilling one well in Rowung Lower Palembang-1 worth US $ 2.4 million and 3D seismic acquisition of US $ 23.93 million. In the second year, activities that will be carried out are drilling one well in Suban Lower Palembang-1 US $ 11.6 million and 3D seismic acquisition of US $ 31.53 million.

Following this, activities planned for the third year included the work of Telisa Well with two wells valued at US $ 20 million, 3D seismic acquisition of US $ 25 million, and the development of Suban Far East at US $ 33.04 million. 

     In the fourth year, the contractor will work on Telisa Well one well worth US $ 18.04 million, another prospect of US $ 28.2 million, and 3D seismic acquisition of US $ 20 million. Finally, in the fifth year, the activities that will be carried out are the development of Suban Far East of US $ 8.26 million and other prospects of US $ 28 million.

Although still managed by the existing contractor, the holder of the Corridor Block operator will change. Currently the operator of this block is ConocoPhilips. For three years, after 19 December 2023 to 19 December 2026, ConocoPililip remained the Corridor Block operator. After that, this block will enter the operatorhip transition period, where Pertamina will then switch to the operator. 

     The government did not specify how long this transition period would be. PT Pertamina Hulu Energi Corridor (PHE Corridor) President Director Taufik Aditiyawarman said, based on current data, the Corridor Block has an area of ​​2,095.25 kilometers square (km2) which is mostly located in South Sumatra Province. Pertamina also has four active work areas in the South Sumatra area, namely Pertamina EP Asset 1, Jambi Merang PHE, Ogan Komering PHE, and Raja Tempirai PHE.

IN INDONESIA

Pemerintah Minta Produksi Blok Corridor Tidak Turun

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif mendorong agar produksi migas Blok Corridor bisa dipertahankan atau bahkan dinaikkan. Hal ini menyusul telah ditandatangani kontrak kerja sama atau (production sharing contract/PSC) Blok Corridor untuk 2023-2043. 

     Arifin menuturkan, setelah kontrak yang berlaku saat ini berakhir pada Blok Corridor kembali dikelola oleh kontraktor eksisting yakni ConocoPhilip (Grissik) Ltd, Talisman Corridor LTd (Repsol), dan PT Pertamina Hulu Energi Corridor. 

Pasalnya, pemerintah menilai bahwa kontraktor eksisting memiliki kemampuan teknis dan keuangan yang baik untuk melanjutkan pengelolan blok ini. Pihaknya berharap kontraktor eksisting dapat memberikan kontribusi positif bagi penerimaan negara dan produksi migas nasional. 

     Apalagi mengingat Blok Corridor merupakan salah satu blok produsen gas bumi terbesar di Indonesia dengan produksi gas 1.100 juta kaki kubik per hari (million standard cubic feet per day/ mmscfd) atau 12% dari total produksi nasional, dan minyak dan kondensat 6.600 barel per hari (bph).

“Dengan ditandatanganinya perpanjangan kontrak, agar [kontraktor] tidak hanya mempertahankan, tetapi juga meningkatkan laju produksi migas di Blok Corridor, dan mengupayakan penemuan cadangan migas baru melalui kegiatan eksplorasi,” kata dia di Jakarta.

Berdasarkan data Kementerian ESDM, PSC baru Blok Corridor akan menggunakan skema bagi hasil kotor (gross split). Terkait besaran bagi hasil (split), untuk base split dan variable split, KKKS memperoleh jatah 48,5% untuk minyak dan 53,5% untuk gas. 

     Selanjutnya, progressif split akan disesuaikan dengan perkembangan harga minyak dan kumulatif produksi migas. Selanjutnya, porsi kepemilikan hak partisipasi (participating interest/PI) di Blok Corridor juga akan berubah setelah 2023. Saat ini, ConocoPhilips memegang PI sebesar 54%, Repsol 36%, dan Pertamina 10%. Setelah PSC yang ada berakhir, ConocoPhilips memiliki saham 46%, Pertamina 30%, dan Repsol 24%.

Menurut Arifin, sebelum kontrak diteken, kontraktor kontrak kerja sama (KKKS) eksisting telah menyetorkan bonus tanda tangan sebesar US$ 250 juta. Selain itu, kontraktor juga menjanjikan komitmen kerja pasti (KKP) untuk lima tahun sebesar US$ 250 juta. Jumlah ini merupakan terbesar kedua sejak penandatanganan kontrak di Indonesia.

“Semoga dengan ditandatanganinya kontrak gross split Blok Corridor ini semoga semakin membangkitkan gairah investor untuk investasi di hulu migas Indonesia,” ujar dia. 

Mengacu data Kementerian ESDM, KKKS telah mengajukan sejumlah kegiatan yang akan dikerjakan menggunakan dana KKP. Pada tahun pertama, kontraktor akan menggarap pengeboran satu sumur di Dayung Lower Palembang-1 senilai US$ 2,4 juta dan akuisisi seismik 3D US$ 23,93 juta. Di tahun kedua, kegiatan yang akan dilakukan adalah pengeboran satu sumur di Suban Lower Palembang-1 US$ 11,6 juta dan akuisisi seismik 3D US$ 31,53 juta. 

Berikutanya, kegiatan yang direncanakan di tahun ketiga mencakup pengerjaan Telisa Well sebanyak dua sumur senilai US$ 20 juta, akuisisi seismik 3D US$ 25 juta, dan pengembangan Suban Far East US$ 33,04 juta. Pada tahun keempat, kontraktor akan mengerjakan Telisa Well satu sumur senilai US$ 18,04 juta, prospek lain US$ 28,2 juta, dan akuisisi seismik 3D US$ 20 juta. Terakhir, di tahun kelima, kegiatan yang akan dikerjakan adalah pengembangan Suban Far East US$ 8,26 juta dan prospek lain US$ 28 juta.

Meski tetap dikelola kontraktor eksisting, pemegang operator Blok Corridor akan berubah. Saat ini operator blok ini adalah ConocoPhilips. Selama tiga tahun, setelah 19 Desember 2023 hingga 19 Desember 2026, ConocoPhilip tetap menjadi operator Blok Corridor. 

     Setelah itu, blok ini akan memasuki masa transisi operatorship, di mana kemudian Pertamina akan beralih menjadi operator. Pemerintah tidak menentukan berapa lama masa transisi ini. 

     Direktur Utama PT Pertamina Hulu Energi Corridor (PHE Corridor) Taufik Aditiyawarman mengatakan, berdasarkan data saat ini, Blok Corridor memiliki luas 2.095,25 kilometer persegi (km2) yang sebagian besar berada di Provinsi Sumatera Selatan. Pertamina juga memiliki empat wilayah kerja aktif di area Sumatera Selatan, yaitu Pertamina EP Aset 1, PHE Jambi Merang, PHE Ogan Komering, dan PHE Raja Tempirai. 

Investor Daily, Page-9, Tuesday, Nov 12, 2019

Corridor Block Contract Signed

The Ministry of Energy and Mineral Resources (ESDM) has officially handed over management of the Corridor Block to ConocoPhillips, Peitamina and Repsol for a period of 20 years starting from December 20, 2023 with a gross split profit sharing scheme. 

     

ESDM Minister Arifin Tasrif

     ESDM Minister Arifin Tasrif said the government was trying to speed up the decision-making process for further management of the oil and gas Working Area (WK), which would end its cooperation contracts so that production could be maintained or even increased, as well as maintaining investment continuity.

"I advised the contractor not only to maintain, but also increase the rate of oil and gas production from WK Corridor, as well as to seek discovery of new oil and gas reserves through exploration activities," he said.

ConocoPhillips

The WK Corridor revenue sharing contract is an extension contract with the participating rights holder ConocoPhillips (Giissik) Ltd. by 46%, PT Pertamina Hulu Energi (PHE) Corridor 30%, and Talisman (Corridor) Ltd. by 24%. The estimated investment value from implementing the first 5 year fixed work commitment (KKP) is US $ 250 million and a signature bonus of US $ 250 million. 

     The participating rights included by the contractor include a 10% participation right that will be offered to Regionally Owned Enterprises (BUMD) in accordance with Minister of Energy and Mineral Resources Regulation No. 37/2016.

Arifin added that the WK or Corridor Block is one of the oil and gas blocks of strategic value given the amount of gas production which reached 1,100 MMScfd or equivalent to 12% of the total national natural gas production at this time. Meanwhile, oil and condensate production is around 6,600 barrels per day (bopd).

PHE President Director Corridor Taufik Aditiyawarman said there was an increase in the composition of participation rights in the cooperation contract agreement. Initially, Pertamina only had 10%. After a new management period in 2023, ConocoPhillips will remain an operator for 3 years. After that, the transition period will enter before the operator is submitted to the PHE Corridor.

Regarding the transition to operator shift, ConocoPhillips Vice President Commercial and Business Development Taufik Ahmad claimed there would be a joint operation agreement (JOA) with Pertamina after a new cooperation contract was signed. However, for a detailed discussion, the JOA conducted with Pertamina has not yet been carried out.

"Anyway, we follow it as the Minister of Energy and Mineral Resources reads the letter. What kind of mechanism, what kind of transition, we talk for 2024-2025. Now the focus is on the PSC [production sharing contract] and the rest of the contract, "he added.

the Corridor Block

ConocoPhillips projects gas production from the Corridor Block in accordance with the 2019 State Budget (APBN) target of 810 MMscfd. Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), until the end of September, the realization of ConocoPhillips gas production reached 833 MMscfd. The realization was 2.8% higher than the target set.

IN INDONESIA

Kontrak Blok Corridor Ditandatangani

Kementerian Energi dan Sumber Daya Mineral (ESDM) resmi menyerahkan pengelolaan Blok Corridor ke ConocoPhillips, Peitamina, dan Repsol untuk jangka waktu 20 tahun mulai dari 20 Desember 2023 dengan skema bagi hasil kotor atau gross split. Menteri ESDM Arifin Tasrif mengatakan pemerintah berupaya mempercepat proses pengambilan keputusan untuk pengelolaan lanjut Wilayah Kerja (WK) migas yang akan berakhir kontrak kerja samanya agar produksi dapat dipertahankan atau bahkan ditingkatkan, serta menjaga kelangsungan investasi.

“Saya berpesan kepada kontraktor agar tidak hanya dapat mempertahankan, namun juga meningkatkan laju produksi migas dari WK Corridor, serta mengupayakan penemuan cadangan migas baru melalui kegiatan eksplorasi,” katanya.

Kontrak bagi hasil WK Corridor merupakan kontrak perpanjangan dengan pemegang hak partisipasi ConocoPhillips (Giissik) Ltd. sebesar 46%, PT Pertamina Hulu Energi (PHE) Corridor 30%, dan Talisman (Corridor) Ltd. sebesar 24%. Perkiraan nilai investasi dari pelaksanaan komitmen kerja pasti (KKP) 5 tahun pertama sebesar US$250 juta dan bonus tanda tangan senilai US$250 juta. Hak partisipasi yang oleh kontraktor tersebut termasuk hak partisipasi 10% yang akan ditawarkan kepada Badan Usaha Milik Daerah (BUMD) sesuai Peraturan Menteri ESDM Nomor 37/2016.

Arifin menambahkan WK atau Blok Corridor merupakan salah satu blok migas yang bernilai strategis mengingat besarnya produksi gas yang mencapai 1.100 MMScfd atau setara dengan 12 % dari total produksi gas bumi nasional saat ini. Adapun, produksi minyak dan kondensat sekitar 6.600 barel per hari (bopd).

Direktur Utama PHE Corridor Taufik Aditiyawarman mengatakan ada kenaikan komposisi hak partisipasi pada perjanjian kontrak kerja sama ini. Semula, pertamina hanya memiliki 10%. Setelah masa pengelolaan baru pada 2023, ConocoPhillips akan tetap menjadi operator selama 3 tahun. Setelah itu, akan masuk masa transisi sebelum operator diserahkan kepada PHE Corridor.

Terkait transisi perpindahan operator, Vice President Commercial and Business Development ConocoPhillips Taufik Ahmad mengaku akan ada kesepakatan operasi bersama (Joint Operation Agreement/JOA) dengan Pertamina setelah kontrak kerja sama baru ditandatangani. Hanya saja, untuk pembahasan rinci, JOA yang dilakukan dengan Pertamina belum dilakukan.

“Pokoknya kami ikuti seperti yang dibunyikan surat Menteri [ESDM]. Mekanisme seperti apa, transisi seperti apa, kita bicara untuk 2024-2025. Sekarang fokus ke PSC [kontrak bagi hasil] dan sisa kontrak,” tambahnya.

ConocoPhillips memproyeksikan produksi gas dari Blok Corridor sesuai dengan target Anggaran  Pendapatan dan Belanja Negara (APBN) 2019 sebanyak 810 MMscfd. Berdasarkan data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), hingga akhir September lalu, realisasi produksi gas ConocoPhillips mencapai 833 MMscfd. Realisasi tersebut 2,8% lebih tinggi dari target yang ditetapkan.

Bisnis Indonesia, Page-24, Tuesday, Nov 12, 2019

These are 10 Oil and Gas Contractors with the Largest Waste

Chevron Pacific Indonesia produces the most B3 waste in the year. Environmental problems have been highlighted in the development of oil and gas working areas in Indonesia. The Ministry of Energy and Mineral Resources (ESDM) recorded 10 major oil and gas cooperation contract contractors (KKKS) that managed large-scale hazardous and toxic (B3) waste last year.

The 10 oil and gas contractors are PT Chevron Pacific Indonesia, Petrochina International Jabung Ltd, Medco E & P Natuna PT Pertamina Hulu Mahakam, PT Pertamina Hulu Sanga-Sanga, Conoco-Phillips (Grissik) Ltd, Pertamina Hulu Energi Oses Ltd, ExxonMobil Cepu Ltd, PT Pertamina EP, and Pertamina Hulu Energi ONWJ.

Secretary of the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources, Iwan Prasetya Adhi, said that the total tonnage of the 10 oil and gas contractors reached 70,197.35 B3 waste. Meanwhile, the total cost of waste management reached US $ 12.24 million.

Of the 10 contractors, Chevron Pacific Indonesia recorded the largest in the amount of waste and management costs. Chevron's oil and gas region produces 30,791 tons of waste with management costs reaching US $ 4.64 million.

The Director of Oil and Gas Engineering and Environment, Adhi Wibowo assessed the amount of the volume of Chevron B3 waste in line with the wide area of ​​their oil and gas working area. In addition, Chevron has long been producing in Indonesia.

"Yes, because it's vast, it's a percentage of the area. Because the area is vast, especially since the Dutch era they have managed, so they have cumulative tons of waste," Adi said in the House of Representatives Building in Jakarta.

According to him, Chevron has allocated funds to carry out its obligations in managing B3 waste.

"In the rules, they must budget funds. Later the SKK Migas mechanism refers to the rules in the PSC (production sharing contract)," Adi explained

Chevron Pacific Indonesia Senior Vice President of Policy, Government and Public Affrair, Wahyu Budianto said, Chevron always manages waste arising from oil and gas production and operations.

"We are trying to manage waste well. We have domestic waste processing, we divide, there are organic parts, waste used oil operations, we process," he said.

Regarding costs, Wahyu said that every oil and gas waste processing activity is always included in the work program and budget (WP & B), Director General of Law Enforcement of the Ministry of Environment and Forestry (RK), Rasio Ridho Sani. according to permits that have been regulated by the government.

There are several oil and gas companies that have received administrative sanctions for showing non-compliance in waste management. However, all oil and gas contractors only get administrative sanctions.

"Only administrative," he said.

If the administrative sanctions are not heeded, according to Ridho, then it is likely that it can continue until the legal route.

"We also provide sanctions to make repairs. If they are not obedient, the sanctions are quite severe, including those that can be subjected to criminality, it could also be a civil suit, "Ridho explained.

IN INDONESIA

Inilah 10 Kontraktor Migas dengan Limbah Terbesar

Chevron Pacific Indonesia menghasilkan limbah B3 paling banyak pada tahun Ialu. Masalah lingkungan menjadi sorotan dalam pengembangan wilayah kerja minyak dan gas (migas) di Indonesia. Kementerian Energi dan Sumber Daya Mineral (ESDM) mencatatl 10 besar kontraktor kontrak kerja sama (KKKS) migas yang mengelola limbah Bahan Berbahaya dan Beracun (B3) dalam skala besar pada tahun lalu.

Ke-10 kontraktor migas itu adalah PT Chevron Pacific Indonesia, Petrochina Internasional Jabung Ltd, Medco E&P Natuna PT Pertamina Hulu Mahakam, PT Pertamina Hulu Sanga-Sanga, Conoco-Phillips (Grissik) Ltd, Pertamina Hulu Energi Oses Ltd, ExxonMobil Cepu Ltd, PT Pertamina EP, serta Pertamina Hulu Energi ONWJ. 

Sekretaris Direktorat Jenderal Migas Kementerian ESDM, Iwan Prasetya Adhi mengatakan, total tonase dari 10 kontraktor migas itu mencapai 70.197,35 tion limbah B3. Sementara itu, total biaya pengelolaan limbah mencapai US$ 12,24 juta.

Dari 10 kontraktor, Chevron Pacific Indonesia tercatat paling besar dalam jumlah limbah dan biaya pengelolaannya. Wilayah migas Chevron menghasilkan limbah mencapai 30.791 ton dengan biaya pengelolaan mencapai US$ 4,64 juta.

Direktur Teknik dan Lingkungan Migas, Adhi Wibowo menilai besarnya volume limbah B3 Chevron sejalan dengan jumlah area wilayah kerja migas mereka yang cukup luas. Selain itu, Chevron telah lama berproduksi di Indonesia. 

"Ya karena luas saja, kan persentase dari luas. Karena wilayahnya luas, apalagi sudah dari zaman belanda mereka mengelola, jadi kumulatif berton-ton limbahnya," ungkap Adi di Gedung Dewan Perwakilan Rakyat (DPR) di Jakarta.

     Menurut dia, Chevron telah mengalokasikan dana untuk melakukan kewajibannya dalam mengelola limbah B3.

"Dalam aturan, mereka harus menganggarkan dana. Nanti di SKK Migas mekanismenya mengacu aturan dalam PSC (production sharing contract)," jelas Adi

Senior Vice President Policy, Government and Public Affrairs Chevron Pacific Indonesia, Wahyu Budianto mengatakan, Chevron selalu mengelola limbah yang timbul dari hasil produksi dan operasi migas. 

"Kami mengusahakan limbah dikelola dengan baik. Kami punya pengolahan limbah domestik, kami bagi, ada bagian organik, limbah operasi bekas oli, semua kami proses," ungkap dia.

Terkait biaya, Wahyu menyebutkan setiap kegiatan pengolahan limbah migas selalu masuk dalam work program and budget (WP&B) Direktur Jenderal Penegakan Hukum Kementerian Lingkungan dan Kehutanan (BHK), Rasio Ridho Sani mengemukakan Kementerian LHK telah mengeluarkan sanksi administratif kepada kontraktor migas yang tidak mematuhi pengelolaan limbah sesuai izin-izin yang telah diatur oleh pemerintah.

Ada beberapa perusahaan migas yang sudah mendapatkan sanksi administratif karena menunjukkan ketidakpatuhan dalam pengelolaan limbah. Namun seluruh kontraktor migas hanyak mendapatkan sanksi administrasi. 

"Hanya bersifat administrasi," kata dia.

Jika sanksi administrasi tersebut tidak diindahkan, menurut Ridho, maka besar kemungkinan bisa berlanjut hingga jalur hukum. 

“Kami juga memberikan sanksi untuk melakukan perbaikan-perbaikan. Kalau mereka tidak patuh, sanksinya cukup berat, termasuk di dalamnya bisa dikenakan pidana, bisa juga gugatan perdata" jelas Ridho. 

Kontan, Page-14, Tuesday, Jan 22, 2019

PGN Budgeted US $ 500 Million in Investment

PT Perusahaan Gas Negara (PGN) Tbk will invest around US $ 500 million, up 10 percent from last year's realization. The investment budget will be used for the construction of pipes with an additional target of around 700 kilometers (km). PGN President Director Gigih Prakoso said this year's investment plan was focused on developing a pipeline. 

    The company will increase the length of the pipeline, both distribution and transmission. One of the mistakes is by completing the pipeline projects undertaken by PT Pertamina Gas (Pertagas).

"The investment budget is around US $ 500 million. There is a 10% increase from 2018 realization, "he said.

He explained, there are at least three pipelines that Pertagas worked on that will be completed this year. In the fields, Gresik-Semarang Pipe, Duri-Dumai, and Grissik-PT Pupuk Sriwijaya (Pusri). In addition, it will also add distribution pipes to consumers. Thus, the length of PGN's pipeline segment of around 9,500 km will increase.

"Later it will probably increase by around 700 km this year, this is all, transmission, distribution, to pipes to consumers," said Gigih.

Pertagas began building the Grissik-Pusri Gas pipeline in July last year. This pipe was built to provide gas supply for energy and raw material needs of PT Pupuk Sriwidjaja (Pusri) in South Sumatra. The Grissik-Pusri gas pipeline that passes through Banyuasin and Musi Banyusin Regency is designed with a diameter of 20 inches and a length of 176 kilometers (Km).

The pipeline will deliver gas from ConocoPhillips (COPI) Grissik Gas Plant in Grissik, Musi Banyuasin 30 million cubic feet per day (million standard cubic feet per day / mmscfd) in the first year. Furthermore, the gas supply can increase to 70 mmscfd.

For Pipa Duri-Dumai with an investment of US $ 52.2 million, Pertagas works with PGN. The US $ 76 million Duri-Dumai pipeline has a diameter of 24 inches and a length of 64 km. The starting point of the transmission pipe is in the Grissik-Duri Pipe Meter Station and ends at Kilari Unit II Dumai. 

    The gas flowed through this pipeline comes from the Corridor Block which is managed by ConocoPhillips in South Sumatra. In addition, there will be additional gas from the Bentu Block which is operated by PT Energi Mega Persada (EMP). The total gas supply that can flow to the transmission pipeline network can reach 200 mmscfd.

The gas supply will be used by PT Pertamina (Persero) and PGN. Pertamina will use 57 mmscfd of gas and can increase to 120 mmscfd to meet the needs of Dumai Refinery. While PGN will deliver 37 mmscfd of gas to meet the needs of customers both industrial, commercial, small customers and households. Furthermore, the Gresik-Semarang transmission pipe is planned to have a capacity of up to 500 mmscfd and length 267 km.

The investment value of this project reaches US $ 250 million. The pipeline, which is equipped with 19 future connections, has the potential to channel gas to industries in seven districts / cities along the Central Java and East Java pipelines. 

     The gas supply for this pipe comes from the Jambaran-Tiung Biru Project which will be channeled to PT PLN (Persero) 100 mmscfd and 72 mmscfd industries. Construction of the distribution pipeline was also carried out to open new markets.

"There are many new markets, areas that we have developed in Central Java, Duri, Dumai, and North Sumatra," he said.

Integration

After completing the acquisition of 51% of Pertagas shares at the end of last year, Gigih revealed, PGN immediately had control of Pertagas. With this control, it wants the entire Pertagas project to be integrated with the PGN project, both for the distribution pipeline project or transmission. Furthermore, his party will determine the pattern of operation between Pertagas and PGN.

He explained, one of the options, it would divide the management of the transmission pipeline to Pertagas and the distribution pipeline by PGN, or vice versa.

"PGN is on the distribution side, or we submit a new project in the transmission sector to Pertagas," he said.

With transmission pipes held entirely by Pertagas, it is expected that operational costs will be more edition. Gigih added that his party would also regulate the market which would be managed by PT Pertagas Niaga. So far, Pertagas Niaga has been said to tend to sell liquefied natural gas (LNG) in retail. Pertagas in the future can be focused on working on this market.

"PGN also has an idea (PT Gagas Energi Indonesia), we can give Gagak the assignment of the SPBG handle," he said.

Last December, PGN officially took ownership of 51% of the shares of PT Pertamina Gas (Pertagas) and four of its subsidiaries with a transaction value of Rp 20.18 trillion Four Pertagas subsidiaries namely PT Perta Arun Gas, PT Perta-Gas, PT Perta-Samtan Gas , and PT Perta Kalimantan Gas. Initially, PGN would only take over Pertagas and one of its subsidiaries, PT Pertagas Niaga. With this acquisition, PGN officially became a gas subholding.

However, the payment of this acquisition will be carried out in two stages. In the first stage, PGN has paid 50% of the total purchase price or equivalent to IDR 10.09 trillion in cash. As for the second stage, the company will issue a Promissory Note of 50% of the total purchase price within a period of six months.

IN INDONESIAN

PGN Anggarkan Investasi US$ 500 Juta

PT Perusahaan Gas Negara (PGN) Tbk bakal mengeluarkan dana investasi sekitar US$ 500 juta, naik 10% dari realisasi tahun lalu. Anggaran investasi ini akan digunakan untuk pembangunan pipa dengan target tambahan sekitar 700 kilometer (km). Direktur Utama PGN Gigih Prakoso mengatakan, rencana investasi tahun ini difokuskan untuk pengembangan jaringan pipa. Perusahaan akan menambah panjang ruas pipa, baik distribusi maupun transmisi. Salah satimya yakni dengan merampungkan proyek-proyek pipa yang dikerjakan PT Pertamina Gas (Pertagas).

“Anggaran investasinya sekitar US$ 500 juta. Ada kenaikan 10% dari realisasi 2018,” katanya.

Dia merinci, setidaknya ada tiga proyek pipa yang digarap Pertagas yang akan diselesaikan pada tahun ini. Rincinya, Pipa Gresik-Semarang, Duri-Dumai, dan Grissik-PT Pupuk Sriwijaya (Pusri). Selain itu, pihaknya juga akan menambah pipa distribusi ke konsumen. Sehingga, panjang ruas pipa PGN sekitar 9.500 km akan meningkat.

“Nanti mungkin akan bertambah sekitar 700 km tahun ini, ini semuanya, transmisi, distribusi, sampai pipa-pipa ke konsumen,” tutur Gigih.

Pertagas mulai bangun pipa Gas Grissik-Pusri pada Juli tahun lalu. Pipa ini dibangun guna memberikan pasokan gas untuk kebutuhan energi dan bahan baku PT Pupuk Sriwidjaja (Pusri) di Sumatera Selatan. Pipa gas Grissik-Pusri yang melewati Kabupaten Banyuasin dan Musi Banyusin ini didesain berdiameter 20 inchi dan panjang 176 kilometer (Km).

Pipa akan mengalirkan gas dari Grissik Gas Plant ConocoPhillips (COPI) di Grissik, Musi Banyuasin 30 juta kaki kubik per hari (million standard cubic feet per day/mmscfd) pada tahun pertama. Selanjutnya, pasokan gas dapat bertambah menjadi 70 mmscfd.

Untuk Pipa Duri-Dumai dengan nilai investasi US$ 52,2 juta, Pertagas mengerjakannya bersama PGN. Pipa Duri-Dumai senilai US$ 76 juta ini memiliki diameter 24 inch dan panjang 64 km. Titik awal pipa tranmisi di Duri Meter Station Pipa Grissik-Duri dan berakhir di Kilari Unit II Dumai. Gas yang dialirkan melalui pipa ini berasal dari Blok Corridor yang dikelola oleh ConocoPhillips di Sumatera Selatan. Selain itu, akan ada tambahan gas dari Blok Bentu yang dioperasikan oleh PT Energi Mega Persada (EMP). Total pasokan gas yang dapat mengalir ke jaringan pipa transmisi tersebut bisa mencapai 200 mmscfd.

Pasokan gas tersebut akan digunakan PT Pertamina (Persero) dan PGN. Pertamina akan menggunakan gasnya 57 mmscfd dan bisa naik menjadi 120 mmscfd untuk memenuhi kebutuhan Kilang Dumai. Sementara PGN akan menyalurkan gasnya 37 mmscfd untuk memenuhi kebutuhan pelanggan baik industri, komersial, pelanggan kecil, dan rumah tangga. Selanjutnya, Pipa transmisi Gresik-Semarang rencananya memiliki kapasitas hingga 500

mmscfd dan panjang 267 km. 

Nilai investasi proyek ini mencapai US$ 250 juta. Pipa yang dilengkapi dengan 19 future connection ini berpotensi menyalurkan gas bagi industri di tujuh kabupaten/kota sepanjang Jawa Tengah dan Jawa Timur yang terlewati pipa. Pasokan gas untuk pipa ini berasal dari Proyek Jambaran-Tiung Biru

yang akan dialirkan ke PT PLN (Persero) 100 mmscfd dan industri 72 mmscfd. Pembangunan pipa distribusi juga dilakukan untuk membuka pasar baru.

“Pasar baru banyak, daerah-daerah yang kami kembangkan Jawa Tengah, Duri, Dumai, dan Sumatera Utara,” kata dia.

Integrasi

Pasca rampungnya akuisisi 51% saham Pertagas pada akhir tahun lalu, Gigih mengungkapkan, PGN langsung memiliki kendali pada Pertagas. Dengan adanya kendali ini, pihaknya menginginkan agar seluruh proyek Pertagas dapat diintegrasi dengan proyek PGN, baik untuk proyek pipa distribusi

maupun transmisi. Selanjutnya, pihaknya akan menentukan pola operasi antara Pertagas dan PGN.

Dia menjelaskan, salah satu opsinya, pihaknya akan membagi pengelolaan pipa transmisi ke Pertagas dan pipa distribusi oleh PGN, atau sebaliknya.

“PGN di sisi distribusinya, atau ada proyek baru di bidang transmisi kami serahkan ke Pertagas untuk membangun,” tutur dia. 

Dengan pipa transmisi dipegang seluruhnya oleh Pertagas, maka diharapkan biaya operasionalnya lebih edisiensi. Gigih menambahkan, pihaknya juga akan mengatur pasar yang akan dikelola oleh PT Pertagas Niaga. Selama ini, Pertagas Niaga disebutnya cenderung menjual gas alam cair (liquefied natural gas/ LNG) secara retail. Pertagas ke depannya bisa difokuskan untuk menggarap pasar ini.

“PGN juga punya Gagas (PT Gagas Energi Indonesia), Gagak bisa kami kasih penugasan handle SPBG,” ujarnya.

Pada Desember lalu, PGN resmi mengambil alih kepemilikan 51% saham PT Pertamina Gas (Pertagas) dan empat anak usahanya dengan nilai transaksi Rp 20,18 triliun Empat anak usaha Pertagas yakni PT Perta Arun Gas, PT Perta Daya Gas, PT Perta-Samtan Gas, dan PT Perta Kalimantan Gas. Awalnya PGN hanya akan mengambil alih Pertagas dan satu anak usahanya, PT Pertagas Niaga. Dengan akuisisi ini, PGN secara resmi menjadi subholding gas. 

Namun, pembayaran akuisisi ini akan dilakukan dalam dua tahap. Pada tahap pertama, PGN telah membayar sebesar 50% dari total harga pembelian atau ekuivalen Rp 10,09 triliun secara tunai. Adapun untuk tahap kedua, perusahaan akan menerbitkan Promissory Note sebesar 50 % dari total harga pembelian dalam jangka waktu enam bulan.

Investor Daily, Page-9, Saturday, Jan 12, 2019