The Kedung Keris Project makes the biggest oil-producing Cepu Block

ExxonMobil Cepu Limited (EMCL) commenced the operation of the Kedung Keris Field, Cepu Block with peak production of 10 thousand barrels per day (BPD). This field will strengthen the position of the Cepu Block as the largest oil producer in Indonesia, shifting the position of the Rokan Block which is worked on by PT Chevron Pacific Indonesia (CPI).

PT Chevron Pacific Indonesia (CPI)

Cepu, we have increased oil production. Hopefully next year there will be an additional 10 thousand BPD, so the difference in production will be further increased compared to Rokan, "said Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto when inaugurating the operation of the Kedung Keris Field.

The Rokan Block

The Rokan Block currently produces around 190 thousand BPD of oil. While Cepu Block's production is around 219 thousand BPD. Next year, the production of the Rokan Block is projected to fall because before the contract expires. On the contrary, oil production from the Cepu Block is getting higher with the operation of the Kedung Keris Field.

Louise McKenzie

The existence of the Kedung Keris project can even increase the production of the Cepu Block to 235 thousand BPD. ExxonMobil Cepu Limited President Louise McKenzie added that the Kedung Keris Field had been producing oil since November 22, ahead of schedule. At present oil production from this field is still around 5,000 BPD and will increase gradually until it reaches a peak of 10,000 BPD.

the Cepu Block

"This production will help maintain the average production of the Cepu Block which currently produces more than 25% of the national oil production which also makes ExxonMobil the number one oil producer in Indonesia," Louise McKenzie said.

EPC Kedung Keris Field Bojonegoro

The Engineering, Procurement, and Construction (EPC) contract of the Kedung Keris Project was carried out by PT Meindo Elang Indah, a local Indonesian company. The project with an investment value of US $ 76 million consists of a well site for the operation of one well and an 8-inch 8-inch underground pipeline connected to the Banyu Urip Central Processing Facility.

Kedung Keris Field BY EXXONMOBIL

Kedung Keris Field was discovered in 2011, about 15 kilometers east of the Banyu Urip Field. Based on the current evaluation, oil reserves from the Kedung Keris Field are estimated to reach 20 million barrels of oil. The two fields are located in the Cepu Block, where ExxonMobil Cepu Limited acts as the operator.

Dwi Soetjipto

Dwi continued, from the maximum production trial results, the Cepu Block production facility could produce oil up to 235 thousand BPD in safe conditions. However, the increase in production of the Cepu Block is still awaiting approval of the revised Environmental Impact Analysis (EIA). The reason is that the Amdal currently only lists a maximum production of 220 thousand BPD. Therefore, he hopes the local government can help facilitate the provision of EIA recommendations related to changes in production figures.

"It was concluded that production of 235 thousand BPD was in a safe position. Now how do we get permission to operate at that level," Dwi said.

the Banyu Urip Field

It will continue to help ExxonMobil to continue to increase production and increase exploration. As long as the Amdal revision approval has not yet been obtained, oil production from the Banyu Urip Field must be reduced following the operation of the Kedung Keris Field. This is so operating activities Cepu Block does not violate the existing EIA.

Oil production from the two fields can only be optimized after the new AMDAL is approved. Thus, his party could not be sure when the Kedung Keris Field reached peak production. However, the production of the Cepu Block did not necessarily be boosted to reach 235 thousand BPD.

"When we operate [Cepu Block], we will pay attention to various things, including facilities, reservoirs, etc. For running at 235 thousand BPD, it is not certain. We must pay attention to everything," Dwi said.

McKenzie added, the EIA approval process was still in progress. Not long ago, it has held a technical study with the Ministry of Environment and Forestry (KLHK). Furthermore, his party will carry out community studies.

"This process has many stages, but it is hoped that [EIA] will come out within a month or two," he said.

Strengthen the Region

According to Dwi, the operation of the Kedung Keris Field will generate a gross income of around Rp 3.3 trillion per year. But not only that, if it continues, this gross income will also contribute to the economic conditions of the country and the region. In addition, increasing oil and gas production in the East Java region is also important to meet the energy needs in this region. Because the industry in East Java is growing very high.

After East Java has become the largest oil-producing region in Indonesia, it will also boost gas production in this region. At present oil production in this region reaches more than 25% of national production.

"We are making arrangements to be able to meet the needs of gas in East Java, there are projects in the Madura Strait. So we emphasize to meet the needs of East Java. Hopefully, it will not disturb investors in East Java," Dwi said.

The Head of the East Java Office of Energy and Mineral Resources (ESDM) Setiaji appreciated the commencement of oil production from the Kedung Keris Field. Moreover, this operation boosts oil production in its region to 305 thousand BPD. The realization of this production reaches around more than 30% of national production.

He hopes that if there are still new fields that can be offered, the company can work on the oil and gas field. This is to encourage oil and gas production in East Java. On the contrary, it promises convenience for oil and gas companies.

"Maybe there are new licenses and Amdal, if there are difficulties, we ask that we can come and we will facilitate and speed up," said Setiaji.

Referring to SKK Migas data, this year, Cepu Block oil lifting is targeted at 216 thousand BPD. Until the end of September, the realization of Cepu Block oil lifting has exceeded the target, which is 216,011 thousand BPD. This Cepu Block oil production increased compared to the end of last year of 209 thousand BPD.

Meanwhile, the amount of reserves that can be produced (recoverable reserve) in the Cepu Block is currently recorded at 823 million barrels. This reserve is higher than initially estimated in the development plan (POD) of 450 million barrels.

IN INDONESIA

Proyek Kedung Keris Jadikan Blok Cepu Penghasil Minyak Terbesar

ExxonMobil Cepu Limited (EMCL) memulai pengoperasian Lapangan Kedung Keris, Blok Cepu dengan puncak produksi 10 ribu barel per hari (bph). Lapangan ini akan memperkuat posisi Blok Cepu sebagai penghasil minyak terbesar di Indonesia, menggeser posisi Blok Rokan yang digarap PT Chevron Pacific Indonesia (CPI).

Cepu, kita punya produksi minyak meningkat. Semoga tahun depan bisa tambahan 10 ribu bph maka bedanya produksi semakin jauh meningkat dibandingkan Rokan," kata Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto ketika meresmikan beroperasinya Lapangan Kedung Keris.

Blok Rokan saat ini memproduksi minyak sekitar 190 ribu bph. Sementara produksi Blok Cepu sekitar 219 ribu bph. Tahun depan, produksi Blok Rokan diproyeksikan turun lantaran menjelang kontrak berakhir. Sebaliknya, produksi minyak dari Blok Cepu semakin tinggi dengan telah beroperasinya Lapangan Kedung Keris. 

Keberadaan proyek Kedung Keris bahkan bisa meningkatkan  produksi Blok Cepu sampai 235 ribu bph. Presiden ExxonMobil Cepu Limited Louise McKenzie menambahkan, Lapangan Kedung Keris telah menghasilkan minyak sejak 22 November lalu, lebih cepat dari jadwal. Saat ini produksi minyak dari lapangan ini masih sekitar 5 ribu bph dan akan naik bertahap hingga mencapai puncak produksi 10 ribu bph.

"Produksi ini akan membantu mempertahankan rata-rata produksi Blok Cepu yang saat ini menghasilkan minyak lebih dari 25% dari produksi minyak nasional yang juga menjadikan ExxonMobil produsen minyak nomor satu di Indonesia," Kata Louise McKenzie.

Kontrak rekayasa, pengadaan dan konstruksi (engineering, procurement, and construction/EPC) Proyek Kedung Keris dilaksanakan PT Meindo Elang Indah, perusahaan lokal Indonesia. Proyek dengan nilai investasi US$ 76 juta terdiri dari tapak sumur untuk operasi satu sumur dan pipa bawah tanah berdiameter 8 inch sepanjang 15 kilometer yang tersambung dengan Fasilitas Pengolahan Pusat Banyu Urip. 

Lapangan Kedung Keris ditemukan pada 2011, sekitar 15 kilometer sebelah timur Lapangan Banyu Urip. Berdasarkan evaluasi saat ini, diperkirakan cadangan minyak dari Lapangan Kedung Keris mencapai 20 juta barel minyak. Kedua lapangan tersebut terletak di Blok Cepu, di mana ExxonMobil Cepu Limited bertindak sebagai operator.

Dwi melanjutkan, dari hasil uji coba produksi maksimal, fasilitas produksi Blok Cepu bisa menghasilkan minyak hingga 235 ribu bph dalam kondisi aman. Namun, peningkatan produksi Blok Cepu ini masih menunggu persetujuan revisi Analisis Dampak Lingkungan (Amdal). Pasalnya, Amdal yang ada saat ini hanya mencantumkan produksi maksimal sebesar 220 ribu bph. Karenanya, pihaknya berharap pemerintah daerah setempat dapat membantu mempermudah pemberian rekomendasi Amdal terkait perubahan angka produksi tersebut.

"Disimpulkan produksi 235 ribu bph dalam posisi aman. Sekarang bagaimana kita mendapat izin untuk beroperasi di level itu," ujar Dwi.

Pihaknya sendiri akan terus membantu ExxonMobil untuk terus menambah produksi dan meningkatkan eksplorasi. Selama belum memperoleh persetujuan revisi Amdal, maka produksi minyak dari Lapangan Banyu Urip terpaksa diturunkan menyusul beroperasinya Lapangan Kedung Keris. Hal ini agar kegiatan operasi di Blok Cepu tidak melanggar Amdal yang ada. 

Produksi minyak dari kedua lapangan baru dapat dioptimalkan setelah Amdal yang baru disetujui. Sehingga, pihaknya tidak dapat memastikan kapan Lapangan Kedung Keris mencapai puncak produksi. Meski demikian, produksi Blok Cepu disebutnya tidak lantas digenjot mencapai 235 ribu bph.

"Pada saat kami mengoperasikan [Blok Cepu] akan memperhatikan berbagai hal baik fasilitas, reservoir, dan lain sebagainya. Untuk running di 235 ribu bph, belum tentu. Kami harus perhatikan semuanya," ujar Dwi.

McKenzie menambahkan, proses pengajuan persetujuan Amdal masih berlangsung. Belum lama ini, pihaknya telah menggelar kajian teknis dengan Kementerian Lingkungan Hidup dan Kehutanan (KLHK). Selanjutnya pihaknya akan melaksanakan kajian masyarakat.

"Proses ini ada banyak tahapan, tetapi harapannya [Amdal] akan keluar dalam satu atau dua bulan ini," tutur dia.

Perkuat Daerah

Menurut Dwi, pengoperasian Lapangan Kedung Keris akan menghasilkan penghasilan kotor sekitar Rp 3,3 triliun per tahun. Namun tidak hanya itu, jika terus berjalan, pendapatan kotor ini juga akan memberi kontribusi pada kondisi ekonomi negara dan daerah. Selain itu, peningkatan produksi migas di wilayah Jawa Timur juga penting untuk memenuhi kebutuhan energi di wilayah ini. Pasalnya, industri di Jawa Timur tumbuh sangat tinggi. 

Setelah Jawa Timur menjadi daerah produsen minyak terbesar di Indonesia, pihaknya juga akan turut menggenjot produksi gas di wilayah ini. Saat ini produksi minyak di wilayah ini mencapai lebih dari 25% produksi nasional.

"Kami sedang melakukan pengaturan agar dapat memenuhi kebutuhan gas di Jatim, ada proyek di Selat Madura. Maka kami tekankan untuk memenuhi kebutuhan Jawa Timur. Semoga tidak mengganggu investor di Jawa Timur," kata Dwi.

Kepala Dinas Energi dan Sumber Daya Mineral (ESDM) Jawa Timur Setiaji mengapresiasi dimulainya produksi minyak dari Lapangan Kedung Keris. Apalagi, pengoperasian ini mendongkrak produksi minyak di wilayahnya menjadi 305 ribu bph. Realisasi produksi tersebut mencapai sekitar lebih dari 30% dari produksi nasional. 

Pihaknya berharap, jika memang masih ada lapangan baru yang bisa ditawarkan, perusahaan dapat menggarap lapangan migas tersebut. Hal ini untuk mendorong produksi migas di Jatim. Sebaliknya, pihaknya menjanjikan kemudahan bagi perusahaan migas.

"Barang kali ada perizinan dan Amdal baru, kalau ada kesulitan, kami mohon untuk dapat datang akan kami fasilitasi dan percepat," kata Setiaji.

Mengacu data SKK Migas, pada tahun ini, lifting minyak Blok Cepu ditargetkan sebesar 216 ribu bph. Sampai akhir September lalu, realisasi lifting minyak Blok Cepu tercatat telah melampaui target, yakni sebesar 216.011 ribu bph. Produksi minyak Blok Cepu ini naik dibandingkan realisasi sampai akhir tahun lalu sebesar 209 ribu bph.

Sementara itu, besaran cadangan yang dapat diproduksikan (recoverable reserve) di Blok Cepu saat ini tercatat mencapai 823 juta barel. Cadangan ini lebih tinggi dari yang awalnya diperkirakan dalam rencana pengembangan (plan of development/POD) sebesar 450 juta barel.

Investor Daily, Page- 9, Wednesday, Dec 18, 2019

Supertanker Supports Energy Security

The operation of supertankers for loading and unloading oil and gas is important for energy security. The distribution of large volumes of oil and gas through the sea, after being exploited and produced on land, is more efficient and efficient using supertankers. 

      In 2019, up to the first semester, national oil production will be 752,000 barrels per day (BPD) or 97 percent of the national target. Of the 725,000 BPD, ExxonMobil's 220,000 BPD was produced from the Banyu Urip Field, which will soon add 10,000 BPD from the Kedung Keris Field in Bojonegoro, East Java.

the Banyu Urip Field ExxonMobil

Oil from Bojonegoro has flowed through a 72 kilometer (km) pipeline to a facility in Palang, Tuban, East Java. Subsequently, it will be channeled again 23 km through an underwater pipeline to the mooring tower, the location of the Gagak Rimang Floating Storage and Storage (FSO) loading ship. If the 2.1 million barrels of oil supertanker is disrupted, the field cannot continue production.

FSO Gagak Rimang

"In the production-ready for sale or lifting oil from the field depends on the readiness of ships such as FSO Gagak Rimang," said SKK Business Support Specialist Migas Jabanusa (Java Bali Nusa Tenggara) Ami Hermawati in Kompas Talk at Kompas Editor in Surabaya, East Java.

The Banyuurip Field

The discussion with the theme "The Role of Floating Storage and Offloading / Crowding Rimang FSO as Supporting Banyu Urip Field Operations for National Energy Security" presented speakers from ExxonMobil Cepu Limited (EMCL), SKK Migas (Special Work Unit for Implementing Upstream Oil and Gas Business Activities), and University academics Airlangga, and Surabaya State Shipping Polytechnic (PPNS).

ExxonMobil Offshore Installation Manager Singgih Sugiharto added that the first oil transfer from FSO Gagak Rimang to the buyer's supertankers took place in April 2015. The ship with a deadweight of 302,000 DWT or included in the VLCC (very large crude carrier) category had done 512 liftings.

     That is a month of 11-12 times the loading and unloading of oil from Crow Rimang which has 17 tanks to other ships. Gagak Rimang only serves the transfer of oil to 50,000-300,000 DWT supertankers. The distribution of oil from the field to the mooring tower and FSO Gagak Rimang requires at least 18 hours. Oil from Crow Bimang is taken by large ships that ship to domestic refineries, namely Dumai, Plaju, Cilacap, Balikpapan, and Balongan.

Energy Resistance

Unair Vice Dean of the Faculty of Economics and Business Unair Rudi Purwono said the reliability of production in the Cepu Block and the FSO Gagak Rimang operation determines the resilience of the national energy system. If disturbed, 220,000 BPD of oil will be late to the public. The issue of energy availability is very sensitive.

"On the other hand, oil consumption is still 1.5 million barrels so that Indonesia is forced to import. Don't let the import balance increase because consumption rises, "said Rudi.

If imports expand, energy security is threatened. PPNS Director Eko Julianto said the existence of FSO Gagak Rimang shows that the sea is still the future of energy production and distribution. Marine technology education institutions should welcome it by preparing skilled and competent graduates so they can fulfill the qualifications to work on the supertanker ships. At oil lifting locations, maneuvering of fishing vessels could jeopardize the transfer of inter-ship oil from FSO Gagak Rimang to other supertankers.

"With a length of 330 meters, the ship requires a broad sterile radius for maneuver. Likewise, the buyer ships, "said Singgih.

At least 500 meters from the radius of FSO Gagak Rimang must be sterile from fishing activities. Therefore the temperature of the oil pipe is warm and light bright in the Crow Rimang installation in the middle of the sea, the location was a place for fish to gather. The condition also made the fishermen join in searching for fish near the installation in the sea.

IN INDONESIA

Supertanker Menunjang Ketahanan Energi

Pengoperasian supertanker untuk bongkar muat minyak dan gas penting bagi ketahanan energi. Distribusi migas bervolume besar melalui laut, setelah dieksploitasi dan diproduksi di darat, lebih efisien dan hemat menggunakan supertanker. Tahun 2019, hingga lewat semester I, produksi minyak nasional 752.000 barel per hari (bph) atau 97 persen target nasional. 

     Dari 725.000 bph itu, sebesar 220.000 bph dihasilkan ExxonMobil dari Lapangan Banyu Urip, yang segera akan bertambah 10.000 bph dari Lapangan Kedung Keris di Bojonegoro, Jawa Timur.

Minyak dari Bojonegoro itu dialirkan melalui pipa sepanjang 72 kilometer (km) ke fasilitas di Palang, Tuban-Jawa Timur. Selanjutnya, dialirkan lagi 23 km lewat pipa bawah laut ke mooring tower, lokasi tertambatnya kapal alir muat Floating Storage and Offloading/FSO) Gagak Rimang. Jika supertanker berkapasitas 2,1 juta barel minyak itu terganggu, lapangan tak bisa melanjutkan produksi.

”Keandalam produksi siap jual atau lifting minyak dari lapangan bergantung kesiapan kapal seperti FSO Gagak Rimang,” kata Spesialis Dukungan Bisnis SKK

Migas Jabanusa (Jawa Bali Nusa Tenggara) Ami Hermawati dalam Bincang Kompas di Redaksi Kompas Biro Surabaya, Jawa Timur.

Diskusi bertema ”Peran Floating Storage and Offloading/FSO Gagak Rimang sebagai Penunjang Operasi Lapangan Banyu Urip untuk Ketahanan Energi Nasional” itu menghadirkan narasumber dari ExxonMobil Cepu Limited, SKK Migas (Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi), serta akademisi Universitas Airlangga, dan Politeknik Perkapalan Negeri Surabaya (PPNS).

Manajer Instalasi Lepas Pantai ExxonMobil Singgih Sugiharto menambahkan pemindahan minyak perdana dari FSO Gagak Rimang ke supertanker pembeli terjadi April 2015. Kapal berbobot mati 302.000 DWT atau masuk kategori VLCC (very large crude carrier) ini sudah melakukan 512 lifting. Artinya, sebulan terjadi 11-12 kali bongkar muat minyak dari Gagak Rimang yang memiliki 17 tangki ke kapal-kapal lain. 

    Gagak Rimang hanya melayani pemindahan minyak ke supertanker 50.000-300.000 DWT. Penyaluran minyak dari lapangan ke mooring tower dan FSO Gagak Rimang setidaknya perlu 18 jam. Minyak dari Gagak Bimang diambil kapal-kapal besar yang mengirim ke kilang-kilang domestik, yakni Dumai, Plaju, Cilacap, Balikpapan, dan Balongan.

Ketahanan Energi 

Wakil Dekan Fakultas Ekonomika dan Bisnis Unair Rudi Purwono mengatakan, keandalan produksi di Blok Cepu dan operasional FSO Gagak Rimang menentukan ketangguhan sistem energi nasional. Jika terganggu, 220.000 bph minyak akan terlambat sampai ke masyarakat. Isu ketersediaan energi sangat sensitif. 

”Di sisi lain, konsumsi minyak masih 1,5 juta barel sehingga Indonesia terpaksa mengimpor. Jangan sampai neraca impornya membesar karena konsumsi naik,” kata Rudi. 

Jika impor membesar, ketahanan energi terancam. Direktur PPNS Eko Julianto mengatakan, keberadaan FSO Gagak Rimang memperlihatkan bahwa laut masih masa depan produksi dan distribusi energi. Lembaga pendidikan teknologi kelautan patut menyambutnya dengan menyiapkan lulusan yang ahli dan kompeten sehingga bisa memenuhi kualifikasi berkarya di kapal-kapal supertanker itu. Di lokasi lifting minyak, manuver kapal-kapal nelayan bisa membahayakan pemindahan minyak antar-kapal dari FSO Gagak Rimang ke supertanker lain. 

”Dengan panjang 330 meter, kapal memerlukan radius steril luas untuk manuver. Begitu juga kapal-kapal pembeli,” kata Singgih. 

Setidaknya, 500 meter dari radius FSO Gagak Rimang harus steril dari aktivitas penangkapan ikan. Oleh karena suhu pipa minyak yang hangat dan cahaya terang di instalasi Gagak Rimang di tengah laut, lokasi itu menjadi tempat ikan berkumpul. Kondisi itu juga membuat para nelayan turut mencari ikan di dekat instalasi di laut tersebut.

Kompas, Page-15, Wednesday, 11 Dec 2019

Need Large Investment Reaches 1 Million BPH Oil Production

The Indonesian Petroleum Association (IPA) states that it requires a very large investment to pursue the national oil production target of 1 million barrels per day (BPD) by 2030. The government's plan to provide flexibility in oil and gas contract schemes is a positive step to increase national upstream oil and gas investment.

IPA President Louise McKenzie said the oil production target of 1 million BPD would be quite severe if it only relied on existing oil and gas blocks. To pursue this target, new oil and gas projects are needed, even new oil and gas reserve findings. The reason is that additional oil production is needed that can also cover the decline in production from oil and gas blocks that are already operating.

"That will require quite a large investment," he said.

He admitted, the government had made various efforts to pursue these targets. Some projects have been decided on by the government. In addition, the government and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) have offered several potential basins to be explored.

"Many basic steps have been taken to create an investment climate, with the right contract scheme," McKenzie said.

The existence of the government's plan provides flexibility for oil and gas companies to choose a production sharing contract (PSC) scheme, according to McKenzie as a positive step. This is because each oil and gas project has different risks and results.

"This is something we have suggested, this flexibility is a step in the right direction. But we need to understand further what this [flexibility] means, "he said.

According to McKenzie, further discussion with the government regarding the flexibility of the contract is needed. An attractive investment climate is not automatically formed, a PSC is needed to realize this which also takes time to form. This is related to building a good foundation for investors.

"IPA is waiting for an opportunity to learn more about the plans of the Minister [Minister of Energy and Mineral Resources] on this matter. But this decision on contract flexibility has the potential to be a positive foundation for the oil and gas industry, "he explained.

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said, his party had held a dialogue with investors in the oil and gas sector. He asked PSC which scheme was more attractive to oil and gas companies than the two schemes implemented in Indonesia, namely gross split and cost recovery. From this dialogue, he continued, the government opened options where oil and gas companies could negotiate the PSC scheme to be signed.

"The flexibility option is there. I say, if a gross split, people are happy for sure. If they are high risk, they prefer PSC cost recovery, "he said.

Based on data from the Ministry of Energy and Mineral Resources, the realization of upstream oil and gas investment has continued to decline since 2014, which once reached the US $ 20.38 billion. After that, the realization of upstream oil and gas investment was cut to the US $ 15.24 billion in 2015, US $ 11.56 billion in 2016, and reached a low of US $ 10.26 billion in 2017. In 2018, the realization of oil and gas investment rose slightly to the US $ 11.99 billion. While this year's investment projections are around the US $ 12 billion. In accordance with the national oil, lifting had reached 861 thousand BPD in 2012.

However, the realization of this oil lifting continued to fall to 779 thousand BPD in 2015. Oil lifting increased slightly in 2016 to 829 thousand BPD. After that, the realization of oil lifting continues to fall to 804 thousand BPD in 2017 and 778 thousand BPD in 2018. Until the end of this year, oil production is projected to be 746.2 thousand BPD.

Production Optimization

On the other hand, McKenzie added that the national oil and gas industry faces the challenge of how to optimize and increase national oil and gas production. This has become the focus of joint cooperation contract contractors (KKKS) with SKK Migas. From a technical aspect, even KKKS has an exploration community that discusses the identification of new basins and how to encourage new exploration.

"We also discussed aspects of education, such as simplifying the rules and also related to funding and taxation. In most of these aspects, IPA is working with SKK Migas to support each other, "he said.

IPA Vice President Ronald Gunawan added that the simplification of licensing and regulations made by the previous government was a positive step. He hopes that this step will be continued by the new government.

"Hopefully it will get better," he said.

Because continued McKenzie, Indonesia's energy needs continue to increase along with economic growth. On the other hand, Indonesia's oil and gas production has decreased by about half in the last 15 years. IPA supports the government to produce more energy for Indonesia.

"IPA sees our role as a partner of the Government of Indonesia, to help find ways to make Indonesia's investment climate competitive globally and attract the investment needed," he stressed.

IPA has held the 48th Annual General Meeting which changes the Supervisory Board and Board of Directors which will be on duty in 2020. At present, the Supervisory Board is led by Kuntoro Mangkusubroto, who was a former Minister of Mines and Energy in the period 1998 to 1999 and served as Head of UKP4 (Presidential Work Unit for Development Supervision and Control) from 2009 to 2014.

Louise McKenzie 

While ExxonMobil Cepu Limited (EMCL) President Director Louise McKenzie was elected as IPA President and was accompanied by 12 other oil and gas company leaders in Indonesia who are members of the IPA Board of Directors.

IN INDONESIA

Butuh Investasi Besar Capai Produksi Minyak 1 Juta BPH

Indonesian Petroleum Association (IPA) menyatakan membutuhkan investasi yang sangat besar untuk mengejar target produksi minyak nasional 1 juta barel per hari (bph) pada 2030. Adanya rencana pemerintah untuk memberikan fleksibilitas skema kontrak migas merupakan langkah positif untuk meningkatkan investasi hulu migas nasional.

Presiden IPA Louise McKenzie mengatakan, target produksi minyak 1 juta bph cukup berat diwujudkan jika hanya mengandalkan blok migas yang saat ini sudah ada. Untuk mengejar target tersebut, perlu adanya proyek migas baru, bahkan temuan cadangan migas baru. Pasalnya, diperlukan tambahan produksi minyak yang juga dapat menutup penurunan produksi dari blok migas yang sudah beroperasi.

“Itu akan membutuhkan investasi cukup besar,” kata dia.

Diakuinya, pemerintah telah melakukan berbagai upaya untuk mengejar target tersebut. Beberapa proyek telah diputuskan pengerjaannya oleh pemerintah. Selain itu, pemerintah dan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) telah menawarkan beberapa basin yang potensial untuk dieksplorasi.

“Banyak langkah-langkah mendasar yang mulai dijalankan sehingga menciptakan iklim investasi, dengan skema kontrak yang tepat,” ujar McKenzie.

Adanya rencana pemerintah memberikan fleksibilitas bagi perusahaan migas untuk memilih skema kontrak kerja sama (production sharing contract/PSC), dinilai McKenzie sebagai langkah positif. Hal ini lantaran setiap proyek migas memiliki resiko dan hasil yang berbeda-beda.

“Ini sesuatu yang telah kami sarankan, adanya fleksibilitas ini merupakan langkah menuju arah yang tepat. Tetapi kami perlu memahami lebih lanjut apa maksudnya [fleksibilitas] ini,” tuturnya.

Menurut McKenzie, butuh diskusi lebih lanjut dengan pemerintah terkait penjelasan fleksibilitas kontrak ini. Iklim investasi yang menarik tidak otomatis terbentuk, diperlukan adanya PSC untuk mewujudkan hal tersebut yang juga membutuhkan waktu dalam pembentukannya. Hal ini terkait dengan membangun pondasi yang baik bagi investor.

“IPA menunggu kesempatan untuk mempelajari lebih lanjut rencana Menteri [Menteri Energi dan Sumber Daya Mineral] tentang hal ini. Tetapi keputusan ini fleksibilitas kontrak memiliki potensi menjadi pondasi positif bagi industri migas,” jelasnya.

Sebelumnya, Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menuturkan, pihaknya sudah melakukan dialog dengan para investor di sektor migas. Pihaknya menanyakan PSC skema mana yang lebih menarik bagi perusahaan migas dari dua skema yang diterapkan di Indonesia, yaitu gross split dan cost recovery. Dari dialog ini, lanjut dia, pemerintah membuka opsi di mana perusahaan migas bisa menegosiasikan skema PSC yang akan diteken. 

“Opsi fleksibilitas itu ada. Saya bilang, kalau gross split, orang senang yang sudah pasti. Kalau yang high risk, mereka lebih ke PSC cost recovery,” kata dia. 

Berdasarkan data Kementerian ESDM, realisasi investasi hulu migas terus turun sejak 2014 yang pernah mencapai US$ 20,38 miliar. Setelah itu, realisasi investasi hulu migas terpangkas menjadi US$ 15,24 miliar pada 2015, US$ 11,56 miliar pada 2016, dan mencapai titik terendah US$ 10,26 miliar pada 2017. Di 2018, realisasi investasi migas naik sedikit menjadi US$ 11,99 miliar. Sementara proyeksi investasi tahun ini sekitar US$ 12 miliar. Sesuai dengan lifting minyak nasional sempat mencapai 861 ribu bph pada 2012. 

Namun, realisasi lifting minyak ini terus turun menjadi 779 ribu bph pada 2015. Lifting minyak kembali naik sedikit pada 2016 menjadi 829 ribu bph. Setelah itu, realisasi lifting minyak terus turun menjadi 804 ribu bph pada 2017 dan 778 ribu bph pada 2018. Hingga akhir tahun ini, produksi minyak diproyeksikan sebesar 746,2 ribu bph. 

Optimasi Produksi 

Di sisi lain, McKenzie menambahkan industri migas nasional menghadapi tantangan bagaimana mengoptimasikan dan meningkatkan produksi migas nasional. Hal ini menjadi fokus bersama kontraktor kontrak kerja sama (KKKS) dengan SKK migas. Dari aspek teknis, bahkan KKKS memiliki komunitas eksplorasi yang membahas identifikasi basin baru dan bagaimana mendorong eksplorasi baru.

“Kami juga membahas aspek regukasi, seperti penyedehanaan aturan dan juga terkait pendanaan dan perpajakan. Di sebagian besar aspek ini, IPA bekerja sama dengan SKK Migas untuk saling mendukung,” kata dia.

Wakil Presiden IPA Ronald Gunawan menambahkan, penyederhanaan perizinan dan peraturan yang telah dilakukan pemerintah sebelumnya merupakan langkah positif. Pihaknya berharap langkah ini akan dilanjutkan oleh pemerintahan yang baru ini.

“Dengan harapkan akan semakin baik lagi,” ujarnya.

Pasalnya, lanjut McKenzie, kebutuhan energi Indonesia terus meningkat seiring pertumbuhan ekonominya. Di sisi lain, produksi migas Indonesia telah berkurang hingga sekitar setengahnya dalam 15 tahun terakhir. IPA mendukung pemerintah untuk memproduksi energi yang lebih banyak bagi Indonesia.

“IPA melihat peran kami sebagai mitra Pemerintah Indonesia, untuk membantu mencari cara untuk membuat iklim investasi Indonesia kompetitif secara global dan menarik investasi yang dibutuhkan,” tegas dia. 

IPA telah menggelar Rapat Umum Tahunan (Annual General Meeting) yang ke-48 yang mengubah Dewan Pengawas dan Dewan Direksi yang akan bertugas pada 2020. Saat ini, Dewan Pengawas dipimpin oleh Kuntoro Mangkusubroto, yang merupakan mantan Menteri Pertambangan dan Energi pada periode 1998 hingga 1999 dan pernah menjabat sebagai Kepala UKP4 (Unit Kerja Presiden Bidang Pengawasan dan Pengendalian Pembangunan) periode 2009 hingga 2014. 

Sedangkan Presiden Direktur ExxonMobil Cepu Limited (EMCL) Louise McKenzie dipilih menjadi Presiden IPA dan didampingi 12 pemimpin perusahaan migas lainnya di Indonesia yang tergabung dalam Dewan Direksi IPA.

Investor Daily, Page-9, Thursday, Dec 5,  2019

New Investment and Reserve is the Key

Business actors assess that large investment and discovery of new reserves are the main keys to pursue the target of producing 1 million barrels of oil per day (BPD) by 2030 amid the downward trend in the production of existing blocks.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) previously set a target of oil production of 1 million BPD in 2030. In order to achieve this target, SKK Migas began to introduce the potential of oil and gas blocks that can be explored by investors. Indonesia 2020 Petroleum Association (IPA) President Louise McKenzie said the government and SKK oil and gas targets to get 1 million BPD of oil production, would be difficult to come from existing oil and gas fields.

"This target requires new projects and discoveries. We know that the government is doing a lot to create opportunities there [target of 1 million bpd], "he said, at the 48th Annual IPA Annual General Meeting press conference.

Mckenzie added that amid declining oil production, additional oil production is needed which is also expected to cover the decline in production and the oil and gas block that is already operating. At present oil production is around 750,000 BPD. 

    On the other hand, to increase the passion of the oil and gas sector, IPA Vice President Ronald Gunawan said the government needs to continue to ensure certainty because this sector is a capital-intensive investment with a long-term orientation.

"If there is no certainty, it is rather difficult to achieve. So we hope that the contract rules must be maintained during the investment process. That is important because it is an attractive factor for investors to invest, "he said.

Ronald admitted during the last 3 years, there have been improvements in the quality of oil and gas licensing in the country. He hopes that the government will continue to simplify licensing and regulations so that the government's target related to oil and gas production is achieved. 

    Petroleum production over the past 10 years has shown a downward trend from 346 million barrels or 949,000 BPD in 2009 to 283 million barrels or 778,000 BPD in 2018. The decline in production was caused by primary oil production wells that are generally old. Meanwhile, the production of new wells is still relatively limited.

The opportunity for the national oil and gas industry is still large because of a total of 128 sedimentary basins in Indonesia, there are still 54 basins that have been explored and which have produced as many as 19 basins. Thus there are still 74 basins waiting to be explored and 35 basins that have been explored are expected to find oil and gas reserves through continuous exploration and investment in the basin.

Dwi Soetjipto

The Head of SKK Migas Dwi Soetjipto said that in carrying out the upstream oil and gas project, SKK Migas prioritized the national capacity building carried out by upstream oil and gas. Dwi also hopes that investment in upstream oil and gas continues to increase. Until 2027, there are 42 main projects with a total investment of US $ 43.3 billion and gross revenue projections of US $ 20 billion.

Later, the total production and 42 projects are 1.1 million boepd which includes oil production of 92,200 BPD and gas of 6.1 billion cubic feet per day (mmscfd). Four of them are national upstream oil and gas strategic projects which are priorities to increase oil and gas production to meet the increasing domestic oil and gas consumption.

"From here [to encourage investment] SKK Migas is making changes so that it is fast, progress is accelerating all arrangements. We will also identify potentials, "he said.

  

OUTSIDE AREA

Expectations of increased production also come from the successful search for new sources of oil reserves. For example, ExxonMobil and ConocoPhillip plan to explore outside their operations to find oil and gas reserves. Dwi said the two Cooperation Contract Contractors (KKKS) from the United States planned to explore open areas.

"They have obligations," he said.

According to him, the choice of KKKS to explore outside its working area, also considers the potential for additional oil and gas reserves. Dwi added that currently, the funds collected from the defined work commitment (KKP) for exploration have reached the US $ 2.5 billion. The funds are obtained from gross profit-sharing contracts.

Azi N. Alam

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

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

At present, ExxonMobil is the largest oil-producing KKKS in Indonesia. As of September 2019, ExxonMobil Cepu Ltd recorded a ready-to-sell production of 216,011 BPD or exceeding the set target of 216,000 bpd.

IN INDONESIA

Investasi dan Cadangan Baru Menjadi Kunci

Pelaku usaha menilai investasi besar dan penemuan cadangan baru menjadi kunci utama untuk mengejar target produksi minyak 1 juta barel per Hari (bph) pada 2030 di tengah tren penurunan produksi blok eksisting.

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) sebelumnya mencanangkan target produksi minyak sebesar 1 juta bph pada 2030. Demi mencapai target tersebut, SKK Migas mulai memperkenalkan potensi-potensi blok migas yang dapat dieksplorasi investor. Presiden Indonesia Petroleum Association (IPA) periode 2020 Louise McKenzie mengatakan target pemerintah dan SKK migas mendapatkan produksi minyak 1 juta bph, akan sulit datang dari lapangan migas yang sudah ada.

“Target ini membutuhkan proyek dan penemuan yang baru. Kami tahu, pemerintah banyak melakukan hal untuk menciptakan peluang kesana [target 1 juta bph],” tuturnya, dalam konferensi pers Annual General Meeting IPA ke-48.

Mckenzie menambahkan di tengah produksi minyak yang menurun, diperlukan tambahan produksi minyak yang juga diharapkan menutup penurunan produksi dan blok migas yang sudah beroperasi. Saat ini produksi minyak berkisar 750.000 bph. Di sisi lain, untuk meningkatkan gairah sektor migas, Wakil Presiden IPA Ronald Gunawan mengatakan pemerintah perlu terus menjamin kepastian, karena sektor ini merupakan investasi padat modal yang berorientasi jangka panjang.

“Kalau tidak ada kepastian agak susah tercapai. Makanya kami berharap aturan kontrak itu harus terjaga selama investasi berlangsung. Itu penting, karena menjadi faktor menarik para investor untuk berinvestasi,” katanya.

Ronald mengakui selama 3 tahun terakhir, sudah ada perbaikan kualitas perizinan migas di Tanah Air. Dia berharap, pemerintah terus menyederhanakan perizinan dan peraturan agar target pemerintah terkait produksi migas tercapai. Produksi minyak bumi selama 10 tahun terakhir menunjukkan kecenderungan penurunan dari 346 juta barel atau 949.000 bph pada 2009 menjadi 283 juta barel atau 778.000 bph pada 2018. Penurunan produksi tersebut disebabkan oleh sumur-sumur produksi utama minyak bumi yang umumnya sudah tua. Sementara itu, produksi sumur baru relatif masih terbatas.

Peluang industri migas nasional masih besar karena dari total sebanyak 128 cekungan sedimen yang ada di Indonesia, masih 54 cekungan yang telah dieksplorasi dan yang berproduksi sebanyak 19 cekungan. Dengan demikian masih ada 74 cekungan yang menunggu untuk dieksplorasi serta 35 cekungan yang telah dieksplorasi diharapkan dapat ditemukan cadangan migas melalui eksplorasi dan investasi yang terus menerus di cekungan tersebut. 

Kepala SKK Migas Dwi Soetjipto mengatakan dalam menjalankan proyek hulu migas, SKK Migas mengutamakan peningkatan kapasitas nasional yang dilakukan hulu migas. Dwi pun berharap investasi hulu migas terus meningkat. Tercatat hingga 2027 terdapat 42 proyek utama dengan total investasi US$43,3 miliar dan proyeksi pendapatan kotor (gross revenue) sebesar US$20 miliar. 

Nantinya, total produksi dan 42 proyek tersebut 1,1 juta boepd yang mencakup produksi minyak sebesar 92.200 bph dan gas sebesar 6,1 miliar kaki kubik per hari (mmscfd). Empat di antaranya merupakan proyek strategis nasional hulu migas yang menjadi prioritas untuk meningkatkan produksi migas demi memenuhi konsumsi migas domestik yang semakin meningkat. 

“Dari sini [untuk mendorong investasi] SKK Migas melakukan perubahan-perubahan supaya cepat, kemajuan percepatan segala pengurusan. Kami juga akan melakukan identifikasi potensi,” tuturnya.

  

LUAR AREA

Harapan peningkatan produksi juga datang dari keberhasilan pencarian sumber cadangan minyak baru. Sebut saja, ExxonMobil dan ConocoPhillip berencana melakukan eksplorasi di luar area operasinya untuk mencari cadangan migas. Dwi mengatakan kedua Kontraktor Kontrak Kerja Sama (KKKS) asal Amerika Serikat itu berencana melakukan eksplorasi di area terbuka. 

“Mereka kan ada kewajiban,” tuturnya.

Menurutnya, pilihan KKKS untuk melakukan eksplorasi di luar wilayah kerjanya, juga mempertimbangkan potensi tambahan cadangan migas. 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. 

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.”

Saat ini, ExxonMobil merupakan KKKS penghasil minyak terbesar di Indonesia. Per September 2019, ExxonMobil Cepu Ltd mencatatkan produksi siap jual sebesar 216.011 bph atau melebihi target yang ditetapkan sebesar 216.000 bph.

Bisnis Indonesia, Page-24, Thursday, Dec 5,  2019

End of 2019, Kedung Keris Produces

ExxonMobil Cepu Limited (EMCL) will complete the Kedung Keris field project by the end of 2019. Later the project will increase EMCL's crude oil production capacity to around 10,000 barrels per day (BOPD). Its oil reserves are estimated at 20 million BOPD. EMCL Spokesperson and Public Relations Rexy Mawardijaya said, currently the project progress is more than 90 percent.

"Initial oil is expected to flow by the end of 2019," he said when to meet at the EMCL headquarters in Bojonegoro.

offloading vessel (Gagak Rimang)

He explained, the construction of the Kedung Keris field project had been operating since 2017. One of the stages was the construction of a 16-kilometer pipeline from the Kedung Keris field to the Banyu Urip field. Because crude oil processing takes place in the Banyu Urip field. After that, the processing results are channeled from the Banyu Urip field to the floating storage and offloading vessel (Gagak Rimang) off the Tuban coast.

ExxonMobil Cepu Limited (EMCL) Field

EMCL has so far relied on crude oil production from wells in the Banyu Urip field whose total capacity reaches 220 thousand BOPD. So far the Banyu Urip field contributes around 25 percent to the total national oil production.

"This achievement is the highest among all Indonesia's oil fields," said Rexy.

The government has assigned EMCL to collaborate with Pertamina EP Cepu and the Cepu Block Participating Cooperation (PI) to manage the two Bojonegoro oil field. Namely, the Banyu Urip field in the Gayam Bojonegoro District and the Kedung Keris field in the Kalitidu Bojonegoro District.

IN INDONESIA

Akhir Tahun 2019, Kedung Keris Berproduksi

ExxonMobil Cepu Limited (EMCL) akan merampungkan proyek lapangan Kedung Keris pada akhir tahun 2019. Nanti proyek itu meningkatkan kapasitas produksi minyak mentah EMCL menjadi sekitar 10 ribu barel per hari (barrel oil per day atau BOPD). 

     Cadangan minyaknya diperkirakan mencapai 20 juta BOPD. Juru Bicara dan Humas EMCL Rexy Mawardijaya menyebutkan, saat ini progres pengerjaan proyek lebih dari 90 persen. 

”Minyak perdana diharapkan mengalir pada akhir 2019," katanya saat dijumpai di kantor pusat EMCL di Bojonegoro.

Dia menjelaskan, pembangunan proyek lapangan Kedung Keris beroperasi sejak 2017. Salah satu tahapnya adalah pembangunan pipa sepanjang 16 kilometer dari lapangan Kedung Keris ke lapangan Banyu Urip. Sebab, pengolahan minyak mentah berlangsung di lapangan Banyu Urip. Setelah itu, hasil pengolahannya disalurkan dari lapangan Banyu Urip ke floating storage and offloading vessel (kapal air muat terapung) Gagak Rimang di lepas pantai Tuban. 

Selama ini EMCL mengandalkan produksi minyak mentah dari sumur-sumur di lapangan Banyu Urip yang kapasitas totalnya mencapai 220 ribu BOPD. Sejauh ini lapangan Banyu Urip berkontribusi sekitar 25 persen terhadap total produksi minyak nasional. 

"Capaian ini merupakan yang tertinggi di antara seluruh lapangan minyak Indonesia,” papar Rexy.

Pemerintah menugasi EMCL bekerja Sama dengan Pertamina EP Cepu dan Badan Kerja Sama Participating Interest (PI) Blok Cepu untuk mengelola dua

lapangan minyak Bojonegoro. Yakni, lapangan Banyu Urip di Kecamatan Gayam Bojonegoro dan lapangan Kedung Keris di Kecamatan Kalitidu Bojonegoro.

Jawa Pos, Page-5, Saturday, Nov 30,  2019