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Showing posts with label EMCL. Show all posts

Monday, April 12, 2021

WORKING TO MAINTAIN THE PRODUCTION OF THE CEPU BLOCK


    The cooperation contract contractor who holds the participation right in the Cepu Working Area is racking his brain to reduce the rate of natural production decline in the block which accounts for about 30% of the national oil.


    Meanwhile, the participating shareholders in the Cepu Block are divided into seven companies, namely PT Pertamina EP Cepu (PEPC) with a 45% share, ExxonMobil Cepu Ltd (EMCL) 20.5%, 

    Ampolex. (Cepu) Pte. Ltd. 24.5%, PT Sarana Patra Hulu Cepu 1.09%, PT Asri Dharma Sejahtera 4.48%, PT Blora Patragas Hulu 2.18%, and PT Petrogras Jatim Utama Cendana 2.24%.

    President Director of Pertamina EP Cepu Awang Lazuardi said that in connection with the potential decline in production after reaching the peak period this year, his party will coordinate intensively with a number of partners. According to him, Pertamina EP Cepu will actively communicate with ExxonMobil Cepu as the operator of the Banyu Urip and Kedung Keris fields, as well as other participating rights holders.


    In addition, together with PT Pertamina Hulu Energi (PHE) as the company's sub-holding and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), his party will compile further strategic steps. Meanwhile, a number of work plans that are being and will continue to be carried out include maintaining reservoir pressure, well intervention/services, and preventive maintenance.

Blogger Agus Purnomo in SKK Migas

"Coordination with EMCL [Exxonmobil], our partners, and SKK Migas will continue to be carried out in compiling a work plan and execution," he said.

    Previously, Exxonmobil was exploring all options to optimize production in the Cepu Block, which has entered its peak period. Azi N. Alam, Vice President of Public and Government Affairs of ExxonMobil Indonesia, said that the company continues to explore various options to optimize the production of the Cepu Block safely and reliably.

"As the backbone of national oil production, we hope to produce more than double the initial expectations," he said.

    Based on the results of Exxonmobil's technical study, Azi explained that the recoverable reserve of the Banyu Urip Field has more than doubled from the initial plan of development (PoD) of 450 million barrels of oil to 940 million barrels of oil. According to Banyu Urip's PoD, the peak production period is estimated to be around 2 years with an average annual production of 165,000 barrels of oil per day. However, since the full facility start-up, ExxonMobil has been producing up to 225,000 barrels of oil per day for about 5 years.

    Production had increased by about 30% from the initial POD and peak production was 3 years longer than originally estimated. However, due to the natural characteristics of the reservoir, which is common throughout the world, ExxonMobil predicts Banyu Urip oil production will decline.

“Despite our continued efforts to optimize production, we have maintained outstanding safety and reliability performance as well cost-effective operation, "he explained.

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto said that the Cepu WK has a big role and contribution to the achievement of national oil and gas, including the production target of 1 million barrels of oil per day.

"The 2021 target for the Cepu Block working area will produce 219,860 barrels of oil per day and 55.16 MMscfd of gas," he said.

    Regarding the production target of 1 million barrels of oil per day, the government still needs to find an additional 350,000 barrels per day within 9 years. Member of Commission VII in the energy sector of the House of Representatives, Kardaya Warnika, said that the current condition in increasing domestic oil and gas production is the provision of incentives. The government is selling out incentives to contractors to spur exploration activities which he calls suspended animation.

"Given any incentives, but the legal certainty is not yet, investors are still in doubt," he said.

    Oil and gas practitioner Widyawan Prawira Atmaja said that the revision of the Oil and Gas Law, which has stopped for almost 9 years, is now crucial. He also urged Commission VII on the energy sector of the House of Representatives to immediately finalize the law to improve the domestic oil and gas investment climate. Energy Watch Executive Director Mamit Setiawan assessed that to achieve this vision one of the biggest obstacles is legal certainty.

    According to him, the certainty of new regulations is one of the key investments expected by oil and gas investors. In addition, the form of SKK Migas which is only issued through a Presidential Regulation is considered to provide uncertainty to investors.

SANGATTA OIL FIELD

    In another development, PT Pertamina EP Asset 5 Sangatta Field recorded oil production of 415 barrels per day from the ST-200 well. The record has tripled compared to production in December 2020.

    Hanif Setiawan, Sangatta Field Manager, said that the increase in production was an effort made between Pertamina EP Sangatta, Pertamina Drilling Service Indonesia, and the local government.

"The success of the ST-200 is proof that by synergizing between lines and running an unusual business operation by adapting to a pandemic situation, not only does it provide additional oil and gas production, but more than that, safety and health are maintained," he said.

    Drilling of the ST-200 well located in Sangatta Selatan Village, Sangatta Selatan District, East Kutai Regency, is carried out to a final depth of 2,203 meters measured depth (mMD) or 2,076 meters true vertical depth (mTVD). Pertamina EP, through the PEP Asset 5 operating unit, will drill 50 development wells and carry out the work of the Wells work plan for 2021.

    For Sangatta Block, 18 development wells will be drilled and five well work plans will be carried out. This activity is expected to contribute to efforts to produce 1 million barrels of oil per day and 12 billion standard cubic feet of gas per day by 2030. Based on the SKK Migas integrated operating system report on February 4, 2021, on a year-to-date basis, PEP Asset 5 is able to record Crude oil production from Kalimantan is 16,172 barrels per day.

    Meanwhile, for gas, production is around 15.44 MMscfd. This production is supported by five oil and gas fields, namely Sangatta and Sangasanga (East Kalimantan), Tarakan and Bunyu (North Kalimantan), and Tanjung (South Kalimantan and Central Kalimantan).

"For Sangatta Field, during 2020, oil lifting recorded as much as 696,065 barrels or 101% of the target. Production was recorded at 682,734 barrels or 110% of the target, "said Hanif.

Bisnis Indonesia, Page-19, Tuesday, Feb 9, 2021

Exxon Mobil Optimizes Cepu Block Oil Production

 


Exxon Mobil Cepu Limited (EMCL) continues to strive to optimize Cepu Block oil production in the future. On the other hand, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects that Cepu Block production will naturally start to decline in 2022 if there is no effort whatsoever.

Blogger Agus Purnomo in SKK Migas

Vice President of Public and Government Affairs ExxonMobil Indonesia Azi N Alam said, referring to the Banyu Urip block's plan of development / POD, the peak production period of around 165 thousand barrels per day (BPD) is estimated to last about two years. 

    However, his party has reached production of up to 225 thousand BPD in about five years. This means that the Cepu Block has reached 30% higher production and is three years longer than the original plan. However, like the natural characteristics of reservoirs around the world, he did not deny that Banyu Urip Field production would decline.

Banyu Urip Field ExxonMobil

"But Exxon Mobil continues to explore options to optimize the production of the Cepu Block safely and reliably, together with SKK Migas and our partners," said Azi.

Azi explained that Banyu Urip is a world-class productive resource. Based on the results of a technical study, Banyu Urip's recoverable reserve has more than doubled from the initial POD of 450 million barrels of oil to 940 million barrels. By early 2021, Banyu Urip has exceeded its original POD commitment by producing more than 450 million barrels since January 2016.

“This achievement is a testament to ExxonMobil's world-class project design and management, safe operation, and prudent reservoir management. As the backbone of national oil production, we expect to produce more than double our initial expectations. This is certainly very beneficial for all stakeholders, "he explained.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said this year Cepu Block production is targeted to reach 219.86 thousand BPD for oil and 55.16 million standard cubic feet per day / MMscfd for gas. The amount of oil production is equivalent to 30% of the national oil production this year. The production of the Cepu Block will gradually decrease starting in 2022.

"So we focus on how to maintain the natural decline in the Cepu and Mahakam blocks. In the Cepu Block, the amount of gas is starting to increase, ”he said.

Several strategies are being prepared to hold the Cepu Block production, namely good reservoir management, monetization of untreated gas, optimization of field development and drilling, and development of clastic formations.

"Apart from that, the development of surrounding fields, such as Cendana and Alas Tua," said Dwi.

Previously, in December 2019, Exxon Mobil operated the Kedung Keris Field which supported the production of the Cepu Block. The field can produce up to 10 thousand BPD of oil, while the reserves reach 20 million barrels of oil.

Investor Daily, Page-10, Monday, Feb 8, 2021

Tuesday, March 9, 2021

Heavy Duty Runway Lifting

 


Improving the performance of upstream oil and gas is still homework that needs to be completed by industry players in the country, in line with the low lifting achievement by some contractors.

Blogger Agus Purnomo in SKK Migas

Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), out of 15 large cooperation contract (KKKS) contractors that produce oil and condensate, eight companies are unable to meet the production targets ready for a sale (lifting) in the work program and budget (work program and budget / WP & B) 2020.

PT Pertamina EP, for example, realized lifting reached 93.5% of the WP&B. A similar condition occurred in Conocophillips (Grissik) Ltd with a lifting achievement of 92.2% from WP&B. 

Blogger Agus Purnomo In Petronas Carigali Ketapang

    Meanwhile, Petronas Carigali (Ketapang) Ltd was only able to record a lifting of 76.8% of the target. On the other hand, the KKKS with the largest oil production and lifting, ExxonMobil Cepu Limited (EMCL), is still able to meet the target in 2020 with the realization of lifting reaching 217,637 barrels per day (bpd) from the Cepu Block.

the Cepu Block and Banyu urip Field

This achievement came from the Banyu Urip field production which had reached a peak production of 230,000 bpd. In gas lifting, out of 15 large KKKS, there are also eight companies that are unable to meet the target according to WP&B, namely Conocophillips (Grissik) Ltd, Pertamina EP, Eni Muara Bakau B.V, and Medco E&P Natuna. 


Blogger Agus Purnomo In PHE-WMO

    Then, other contractors who failed to reach the target were Pertamina Hulu Energi West Madura Offshore (PHE-WMO), PT Pertamina Hulu Energi Jambi Merang, Husky-CNOOC Madura Ltd (HCML), and Pearl Oil (Sebuku) Ltd.

Deputy for Operations of SKK Migas, Julius Wiratno explained that his party was preparing a warning or warning for KKKS that did not reach the target in accordance with the deal.

"For the 2020 performance, a 'love letter' is currently being drafted, this week it is [sent]," he said.

He emphasized that the KKKS could get sanctions for not being able to achieve the target. Sanctions can be in the form of tightening KKKS spending until the KKKS work plans and budgets are not approved.

"There are also those whose cost recovery is not approved if it is not in accordance with the initial agreement," he said.

He also highlighted a number of subsidiaries of PT Pertamina (Persero) that have not been able to meet the lifting target last year. Julius assessed that this was due to economic problems in the field. However, SKK Migas and Pertamina have made an agreement to improve performance this year. 

    Previously, the President Director of PT Pertamina Hulu Energi, Budiman Parhusip, said that Pertamina has challenges with a high decline rate due to managing old fields. However, his party has prepared a number of contracts related to the drilling program to optimize lifting.

"We hope that the full cooperation will run smoothly," he said.

Meanwhile, Pertamina is planned to manage around 60% of the oil and gas fields in Indonesia. Currently, about 40% are still managed by this state-owned company. With this projection, the government also has high hopes for Pertamina in achieving the oil lifting target of 1 million BPD. Meanwhile, the government is deemed necessary to intervene in the decline in Pertamina's performance in the national upstream oil and gas sector.

Trisakti University lecturer Pri Agung Rakhmanto explained that the main factor for Pertamina's decline in production last year was due to the economy in the field plus the pressure of the Covid-19 pandemic. According to him, old fields have an effect on the decline in investment and Pertamina's business activities. Meanwhile, the Covid-19 pandemic has resulted in limited operational activities.

"Pertamina is now the backbone of national production with more and more blocks being transferred to it by mistake. The government should be able to provide more support, "he said.

He suggested that the cooperation contract should include fiscal aspects affected by the latest economic conditions. Meanwhile, Executive Director of the National Oil and Gas Companies Association (Aspermigas) Moshe Rizal said that the fall in oil prices coupled with a decrease in demand due to the Covid-19 pandemic has indeed put heavy pressure on KKKS financially. 

    In addition, operational activities are hampered by large-scale social restrictions (PSBB) even though the budget is available. As a result, project execution is hampered, including maintenance operations, workovers, and other activities that can help maintain production levels.

"For this year, everything depends on how fast we recover economically and how fast the distribution of vaccines is so that it can reduce the infection rate," he said.

The President Joko Widodo

PRICE OF POWER PLANT GAS

President Joko Widodo has set the price of natural gas for power plants at a maximum of US $ 6 per MMBtu. The regulation is in Presidential Regulation Number 121 of 2020 concerning Amendments to Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing which was promulgated on December 29, 2020. In Article 4 Paragraph 3 it is stated that the determination of certain natural gas prices can be given to natural gas users. engaged in the supply of electricity for the public interest. 

This Presidential Regulation is in line with the Minister of Energy and Mineral Resources Regulation Number 10 of 2020 concerning Amendments to the Regulation of the Minister of Energy and Mineral Resources Number 45 of 2017 concerning Utilization of Natural Gas for Power Plants. This regulation confirms the adjustment of the gas price for PT PLN (Persero) 's needs to be the US $ 6 per MMBtu.

Bisnis Indonesia, Page-4, Thursday, Jan 7, 2021

Monday, October 26, 2020

Banyu Urip Crude Oil Will Be Exported

The Special Task Force for Upstream Oil and Gas Implementation (SKK Migas) plans to export crude oil produced by the Banyu Urip oil and gas field. 

    This plan emerged because PT Pertamina (Persero) as the buyer of ExxonMobil Cepu Limited's (EMCL) field crude oil was no longer able to fully purchase it. Pertamina has excess crude oil stocks due to reduced refinery demand as a result of the Covid-19 pandemic.

Blogger Agus Purnomoin SKK Migas

Deputy of Finance and Monetization of SKK Migas, Arief S. Handoko, said that currently, the Banyu Urip Field has the potential to experience a reduction in production as a result of Pertamina not being purchased. Referring to SKK Migas records, until August 2020, Banyu Urip Field oil production reached 220,000 barrels of oil per day (BPD).

Banyu Urip Field

"Why can't it be done? Because Pertamina has a lot of stock and demand for refineries has decreased due to Covid-1 9, "said Arief.

The plan for exports and reducing production is of course contrary to the fact that domestic oil imports are high. Arief also admitted that so far Pertamina has been importing crude oil and importing fuel oil (BBM) products. As a result of falling demand, the domestic market oil purchases from Banyu Urip have stalled.

"If the export option is carried out, we have met the KPK for permission or asked for opinions if we export prices below the ICP. We involve several parties in order to maintain compliance or issues that may come later, "said Arief.

VP of Corporate Communication of PT Pertamina, Fajriyah Usman, said that his party was still buying the state's share from the Banyu Urip field, although it was decreasing due to lower demand.

"The decline in purchases of crude for processing at refineries is around 20 percent in line with the drop in demand for fuel oil (BBM)," he said.

Encouraging Upstream Incentives

    SKK Migas strives to provide incentives for the upstream oil and gas sector to be implemented. Head of SKK Migas Dwi Soetjipto said the provision of incentives was an effort to restrain the decline in upstream oil and gas investment as a result of the corona outbreak (Covid-19).

Dwi Soetjipto

"We are taking steps to avoid a bigger decline. There are nine stimuli that have been and are being processed," Dwi said.

    Of the nine types of incentives proposed, only one has been approved, namely post-abandonment and site restoration (ASR) activities. There are 30 oil and gas contractors who have enjoyed relaxation from the delay in depositing ASR funds this year. Then there are a number of incentives included in the proposed fiscal improvement, namely the elimination of upstream oil and gas rental fees for state property (BMN).

Kontan, Page-12, Monday, Oct 26, 2020

Saturday, October 3, 2020

Cepu block returns to normal production at 220 thousand BPD

 


The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Cepu Block has returned to producing around 220 thousand barrels of oil per day (BPD) after having stopped operations (planned shutdown) for routine maintenance.

the Cepu Block

Acting Head of Program and Communication Division of SKK Migas, Susana Kurniasih, said that the cessation of the operation took place faster than planned for 9 days to 7 days. With the acceleration of the planned shutdown since September 18th, Banyu Urip Field, Cepu Block, has started producing oil again.

Banyu Urip Field, Cepu Block.

"Within 2 days of schedule, there will be potential to increase the production of 450 thousand barrels of oil," said Susana.

Susana Kurniasih

Susana explained this additional production is very important for SKK Migas in an effort to meet the lifting target of oil and gas (oil and gas) in the Revised State Budget (APBN-P) 2020.

Blogger Agus Purnomo in SKK Migas

"In addition, this acceleration will also have an impact on saving operating costs so that we can optimize state revenues," said Susana.

Susana added that this success was due to the excellence shutdown handling carried out by the SKK Migas team with Exxon Mobil Cepu Limited (EMCL) is the Cepu Block operator. Even during the Covid-19 pandemic which resulted in work restrictions, the cessation of operations could be accelerated with digital optimization.

Vice President Public and Government Affairs Exxon Mobil Indonesia Azi N Alam said, the planned shutdown activities have been planned, scheduled, and approved in the work plan and budget (Work Program & Budget / WP & B). Thus, this activity has no effect on achieving the Cepu Block production target. 

    In addition to routine maintenance, activities carried out during the planned shutdown also include gas handling capacity upgrades and support the process of working on the tie-ins for the Jambaran-Tiung Biru Project.

the Jambaran-Tiung Biru Project

"Focusing on the implementation of safe and good work activities has enabled the Cepu Block to return to production of more than 220 thousand," said Azi N Alam.

Currently, his party is focused on maintaining operational stability. After that, his party will gradually increase oil production from the Cepu Block while ensuring the safety and reliability of operations. 

    Referring to SKK Migas data, the Cepu Block is targeted to produce 220 thousand bpd of oil according to the 2020 State Budget. As of last June, the realization of this block's production has reached 220,279 thousand BPD or the largest in Indonesia.

Furthermore, until August 12, production will again increase to 228 thousand bpd. On the other hand, SKK Migas is also working on accelerating several work programs from oil and gas companies operating in Indonesia. 

    He hopes that the implementation of this work program can be the initial capital to realize the oil production target next year which is set the same as this year, which is 705 thousand bpd.

"Anything that can be done in 2020, such as maintenance, procurement, licensing, and other things, we ask that it be implemented immediately. This is a joint commitment, "said Susana.

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

Monday, July 20, 2020

Cepu Block Production Encouraged to Reach 235 Thousand BPD



The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) pushed the increase in production at the Banyu Urip Field, Cepu Block to 235 thousand barrels per day (BPD). This increase in production after the approval of the revised Cepu Block environmental impact analysis (Amdal).

Cepu Block

Acting Head of the SKK Migas Program and Communication Division, Susana Kurniasih, said that earlier this year, the production of the Cepu Block had been successfully increased to 220 thousand BPD. Now the oil and gas block production undertaken by Exxon Mobil Cepu Limited (EMCL) will be increased to 235 thousand BPD after obtaining a permit for it.


"We are coordinating with EMCL so that an increase in production of 235 thousand BPD can be realized. Hopefully, this business can be carried out soon, given that all the permits needed to increase production have been obtained, "he said.

The intended production increase permit is an Amdal amendment approval from the Ministry of Environment and Forestry (KLHK) and EMCL installation feasible approval (PLO) to support the production increase issued by the Directorate General of Oil and Gas. In addition, EMCL has also carried out a High Rate Test (HRT) to ensure production facilities are able to operate safely at the level of 235 thousand BPD.

According to him, HRT was implemented in 2019. However, the increase in production of the Cepu Block above 220 thousand BPD, could not have been carried out last year because it had not yet received the Amdal revision approval. Amdal at that time only allowed a maximum oil production of 220 thousand BPD.

"This year, the Amdal revision has been given by KLHK and the PLO has also been approved by the Directorate General of Oil and Gas to produce up to 235 thousand BPD," Susana said.

Optimization of production still takes into account aspects such as subsurface by applying good reservoir management in the Banyu Urip Field and Kedung Keris. In addition, increased production also takes into account aspects of security, reliability of production operations, and environmental impacts.

"It is hoped that the additional production from EMCL can help achieve the national oil and gas production target," he said.

Susan admitted, achieving the oil and gas production target this year was a challenge, especially with the Covid-19 pandemic and low oil prices. Many programs have been planned by oil and gas contractors, eventually, they have to be adjusted due to mobility restrictions. 

    As a result, several programs such as drilling, reworking, and maintenance of wells, and project construction were hampered. He mentioned EMCL as one of the oil and gas producers that we're able to achieve its production targets in the first semester, even exceeding the target of the State Budget.

"However, we are trying to maximize production from these work areas," Susana added.

Exxon Mobil Indonesia's Vice President Public and Government Affairs Azi N Alam expressed appreciation for all parties that have been involved in helping to accelerate the Amdal revision process and ongoing support for Banyu Urip Field operations in general.

"We continue to work closely with SKK Migas for the best efforts to increase the production of Banyu Urip and Kedung Keris by prioritizing security and the reliability of operations during the Covid-19 pandemic, "he said.

Until now, various optimizations in the Banyu Urip Project have proven to contribute more to Indonesia. One of them is the increase in reserves of the Banyu Urip Field by up to two times greater than the first plan of development (POD), from 375 million barrels to 940 million barrels. 

    In addition, Cepu Block oil production was also successfully increased by 33% from 165 thousand BPD to 220 thousand BPD. In fact, until the end of March, oil production from the Cepu Block reached 220,118 BPD from the target of 220 thousand BPD.

Investor Daily, Page-10, Friday, July 17, 2020

Tuesday, June 23, 2020

Oil Lifting 2020 Predicted 705 Thousand BPD





The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects national production of ready-to-sell oil (facelift) up to the end of the year to only reach 705,000 barrels per day (BPD) or more than the security of the security of the food security) by 755,000 BPD. 

   

  This is through with the Covid-19 pandemic. However, SKK Migas is starting to commit to a recovery starting next year. In 2030, oil is targeted to reach 1,000,000 BPD.

"Applying 705,000 BPD that makes sense, we can obtain in 2020. Raise the challenge we are discussing is restoring next year so that next year does not decline again," said SKK Migas Head Dwi Soejipto.

Dwi Soejipto

Dwi said the raised projections were from 15 cooperation contract contractors (KKKS) representing 96% of the national production line. In the first place was occupied by Mobil Cepu LTD then accepted by PT Chevron Pacific Indonesia (CPI) with the Rokan Block.


Although Chevron finished managing the Rokan Block in August 2021, efforts to optimize production are still carried out. It was estimated that it would have decreased by 20 thousand BPD but until the end of May, it could still produce 180 thousand BPD. 

the Rokan Block from Chevron (CPI)

    He said SKK Migas was guarding the transition period for the management of the Rokan Block from Chevron (CPI) to Pertamina. This is to avoid a decrease in production as happened in the Mahakam Block.

the Mahakam Block

"We hope that by the end of the year we will be able to optimize easily. Currently, it is still being discussed with CPI so that they can invest again in this transition period, "he said.

Dwi further agreed to wait for oil and gas projects scheduled to be completed this year. In the third quarter of 2020, a number of migration projects began production, the Malacca Strait Project Phase-1, the Beauty Field in the Belida Block, the Betung Compressor Project and Musi Timur SKG-19, the Meliwis Field in the Madura Offshore Block, and the Peciko Field in the Mahakam Block.
 
"We are optimistic that the additional production from these projects will help achieve the year-end appointment target," Dwi said.

In 2020, SKK Migas starts 11 oil and gas projects can start onstream. To date, five oil and gas projects have been approved and can provide additional oil production of 3,182 BPD and gas 109.5 million standard cubic feet per day / MMSCFD.

Dwi further revealed that there were 4 national strategic projects among Tangguh Train 3, which began at the completion of 2020 essence, until the end of III or the end of 2021. Realization until May 2020 was approved for land 82.45% of the target of 83.15% and offshore 98.15% offshore 98.15% of the target of 99.35%.

Jambaran Tiung Biru

Then, Jambaran Tiung Biru is planned to be streamed from the third quarter of 2021 to the fourth quarter of 2021. Introduced until May yesterday received 64.54% of the 69.60% target. The next project is being prepared by Inpex Abadi Masela and expected to be streamed in 2027. 

Inpex Abadi Masela

   While the Indonesia Deepwater Development (IDD) project for the Gendalo and Gehem working areas is in the process of improving the consortium and developing a development plan (Po) to Development (PoD) to Development (Po)

Gendalo and Gehem Project by Chevron

Oil and Gas Potential

He explained, Indonesia has a huge oil and gas potential with 128 basins. Of these, 27 basins have been produced. He said there was a need to transform possible into the second package by declaring the production of one million barrels in 2030. He said the government was now more flexible for investors to choose the production sharing contract between Gross Split or Cost Recovery.

But he asked for legal protection made by the Oil and Gas Law to guarantee certainty for investors. Even though production reaches 1 barrel jute in 2030, by 2030 it is projected that the demand for fuel oil (BBM) reaches 2.7 million barrels. This means that industry support is needed for fuel oil to gas.

"There must be a policy that encourages using gas, getting relief from those who use fuel," Dwi said.

Investor Daily,  Page-1, Tuesday, June 16, 2020

Saturday, April 18, 2020

Pertamina stops Balikpapan refinery operations from May



PT Pertamina (Persero) will stop the full operation of the Balikpapan Refinery starting in May following the decline in domestic demand for fuel oil (BBM). On the other hand, taking advantage of low world oil prices, the company will increase imports of crude oil and fuel.

Nicke Widyawati

Pertamina President Director Nicke Widyawati said, to mitigate the impact of the current conditions, his party would begin to reduce the refinery's operating capacity within certain limits according to demand conditions.

In the final scenario, the company has begun to reduce the capacity of the Balikpapan refinery this month, to finally stop its total operations for the two crude distillation units (CDU).

the Balikpapan refinery

"Starting in early May, the whole Balikpapan Refinery must stop. We use this moment to do maintenance. Where during slow down demand, some of our refineries are shut down for maintenance. So our maintenance is speeding up, "said Nicke Widyawati.

Nicke Widyawati explained that with world oil prices falling significantly and fuel consumption also being cut, the operation of the refinery in full is actually not economical and actually harms the company. However, it will continue to operate other refineries because the cessation of operation of all refineries will have an impact on the national economy.

"Refineries if only all of these operational economies are closed. But Pertamina has the responsibility as a driver of the national economy, therefore we remain in balance even though the economy is not the best, but how does Pertamina's operational impact on the national economy and job creation, "said Nicke.

He noted, since March 1, the average daily sales of fuel dropped significantly, namely 16.78% for gasoline and 8.38% for diesel compared to the daily average in January and February. Specifically, the average daily sales of gasoline in March-April recorded only 77.95 thousand kiloliters (KL) from the normal 93.66 thousand KL, while gasoline sales were only 37.84 thousand KL from the normal 41.31 thousand KL.

In fact, based on Pertamina's data, the company's fuel sales this year is targeted to reach 78.7 million KL. While related to refinery operations, still referring to the same data, the company targets crude oil processing including intermedia and gas at the national refinery this year to reach 355 million barrels, up 4% from the 2019 prognosis of 342 million barrels. While refinery production is targeted to reach 290 million barrels, up 6% from last year's prognosis of 273 million barrels.

Add Import

On the other hand, taking advantage of the drop in world crude oil prices, Nicke stated that Pertamina decided to increase its purchase of crude oil and fuel from abroad. This policy was taken because it was considered more economical. In particular, crude oil imports were 10 million barrels and gasoline 9.3 million barrels.
the Rokan Block

With this additional import, Pertamina plans to temporarily stop the purchase of domestic crude oil. Mainly from oil producers whose large production such as PT Chevron Pacific Indonesia (CPI) from the Rokan Block and Exxon Mobil Cepu Limited (EMCL) from the Cepu Block. This is because domestic oil prices are now more expensive than imports.


"Domestic crude has a high price, so if it is purchased, it will be heavy The COGS will increase dramatically. While imported crude is cheap, this is the right time for crude stock to be used for refineries to reduce refinery HPP. To take the opportunity for oil prices to fall, we optimize the existing storage, "explained Nicke Widyawati.

Related to the procurement of crude oil and fuel, based on Pertamina's data, the company sets the volume of crude oil imports this year at 83 million barrels, down 3% from the 2019 prognosis of 86%. Furthermore, imports of gasoline products are planned at 119 million barrels, up slightly from last year's prognosis of 118 million barrels.


Nicke added, his party also plans to increase imports of liquefied petroleum gas / LPG by 220 thousand metric tons. The addition of LPG imports is to take advantage of the low price of LPG according to Aramco CP. Pertamina's data shows that according to the RKAP, LPG import volume originally planned was 6 million metric tons, up 3% compared to last year's prognosis of 5.8 million metric tons.

Investor Daily,  Page-9, Saturday, April 18, 2020