The government is advised to invite oil and gas junior companies

The government is advised to invite junior companies (small companies) that focus on oil and gas exploration activities. This is because the discovery of significant oil and gas reserves is the key to achieving the target of producing 1 million barrels of oil per day (BPD) by 2030. 

       Practitioners of Oil and Gas Tumbur Parlindungan revealed that large oil and gas companies rarely voluntarily disburse large funds for large-scale exploration activities. This can be seen from the lack of large oil and gas companies participating in the management of new oil and gas blocks through auctions held by the government.

For this reason, he advised the government to invite junior companies to look for potential oil and gas reserves in the country. This is because, in the world, junior companies usually focus on finding oil and gas reserves to be sold to large oil and gas companies. He gave an example, the discovery of large gas at Tangguh was actually carried out by Arco. However, BP, which is now the operator there, acquired the company.

"We need to invite small companies but want to take exploration risks. We need pioneers who want to drill, we need players who want to play exploration, big companies focus above 100 million barrels and above, "said Tumbur.

According to him, data on oil and gas reserves owned by Indonesia are currently difficult to compete with other regions. At present, large oil and gas companies are actually targeting Africa, which has proven oil and gas reserves in large quantities. This will only happen in Indonesia if there are 11 proven huge oil and gas reserves.

"The company will come if the reserves are proven large," said Tumbur.

Tumbur explained, large companies such as Shell, Chevron, Exxon, and Total would not be interested in oil and gas reserves whose volumes were less than 100 million barrels of oil equivalent. 

Furthermore, companies such as HESS, ConocoPhillips, and National Oil Company (NOC) such as Petronas, PTTEP Thailand, Repsol, will only glance at one area if the reserves are more than 50 million barrels of oil equivalent. 

In fact, he continued, the flow of foreign investment funds is very important so that exploration activities can run massively in Indonesia.

Blogger Agus Purnomo in Petronas PC Ketapang

"We see that our oil and gas block auction is not very large, so it will not be in demand by large companies," he said.

Repsol

On the other hand, the success of finding oil and gas reserves (success ratio) in Indonesia is still less than 50%. This could also be an obstacle to achieving the 1 million BPD oil production target. He gave an example, the findings of oil and gas in Ande-Ande Lumut could be one of the big findings, but the problem of monetization and the use of technology could hamper its development.

Referring to the data of the Ministry of Energy and Mineral Resources (ESDM), the number of the signing of production sharing contracts (PSCs) from oil and gas block auction results has been relatively low since 2015. In 2015, the government signed 8 PSCs. But afterward, although the auction was still held, in 2016-2017, not a single PSC was signed. Furthermore, as many as 11 PSCs were signed in 2018 and 6 PSCs last year. In fact, the signing of the PSC in Indonesia touched 26 contracts in 2011.

Inline, the realization of national oil and gas exploration investment has also been relatively low since 2015. In 2015, the realization of exploration investment was recorded to still reach the US $ 970 million. However, this exploration investment continues to decline to the US $ 916.2 million in 2016, US $ 576.55 million in 2017, and rose to the US $ 786.18 million in 2018. In fact, exploration investment in Indonesia once touched the US $ 3, 05 billion in 2013.

Must be planned

Another strategy from the government to reach the target of 1 million BPD is through enhanced oil recovery (EOR) activities. According to Tumbur, this EOR activity must be planned from the beginning in the development of an oil and gas block. The reason is that EOR activities will not be effective and will require large costs if they are only carried out when the oil and gas reserves of an oil and gas block are almost gone.

"During the decline, the energy strategy has been lost. If it was only EOR at that time, the cost was more expensive. EOR continues improvement, there are pilots from the start. If it's already [production] road it's difficult to run, "said Tumbur.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) once made an additional projection of oil production from EOR activities. Referring to the projection, the newly initiated EOR activities can significantly increase oil production starting in 2025. Referring to the data, national oil production is projected to only be 281 thousand BPD by 2030 if no EOR activities are carried out. However, if the EOR is successfully implemented, oil production can be bent to 520 thousand BPD that year.

However, at present, the EOR activities are still in the pilot phase. PT Pertamina (Persero) through Pertamina EP has implemented EOR in Tanjung Field. The company has also signed the points of understanding between Pertamina and Repsol for full-scale management, including the implementation of surfactant-polymer EOR. In the Jirak and Rantau Fields, Pertamina is conducting a study of the application of surfactant chemicals for the implementation of EOR in both fields.

Furthermore, related to CO2 flooding, Pertamina is currently conducting studies in several fields, namely Jatibarang, Sukowati, and Ramba. Pertamina also expanded this EOR activity to the oil and gas block managed by PT Pertamina Hulu Energi (PHE), namely in the North West Java Offshore Block, precisely in the Zulu Field and E-Main. In addition, in the near future the Batang field, which is operated by PHE Siak, will be an EOR steam flooding pilot project.

Investor Daily, Page-9, Thursday, May 9, 2020

Cepu Block EIA Revision Will Be Completed Soon

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that the revision of the Cepu Block Environmental Impact Analysis (EIA/Amdal) will be completed soon. Environmental Impact Analysis revision is needed so that oil production from the Cepu Block can be increased to 235 thousand barrels per day (BPD).

Deputy Head of SKK Migas Fatar Yami Abdullah said the local government's response to the proposed revision of the Cepu Block Environmental Impact Analysis was very good. Now the proposed Amdal revision of Exxon Mobil Cepu Limited (EMCL) has been fully discussed at the local government level.

the Cepu Block Exxon Mobil Cepu Limited (EMCL)

The Head of SKK Migas Dwi Soetjipto explained that Exxon Mobil had conducted a trial and the results of the Cepu Block production facility were stated to be able to 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). Because the current EIA only lists a maximum production of 220 thousand BPD.

As long as the Environmental Impact Analysis revision approval has not yet been obtained, oil production from the Banyu Urip Field had to be reduced due to the operation of the Kedung Keris Field. 

    This is so that operations in the Cepu Block do not violate the existing EIA. Oil production from the two fields can only be optimized after the new AMDAL is approved. So it cannot ascertain when the Kedung Keris Field reaches peak production.

Azi N Alam

Vice President of Public and Government Affairs of Exxon Mobil Indonesia Azi N Alam stated that his office continues to seek approval for the revision of the Cepu Block Environmental Impact Analysis. He continued to coordinate with the Ministry of Energy and Mineral Resources, SKK Migas, Ministry of Environment and Forestry (KLHK), and the Bojonegoro Regency Government.

the Cepu Block Field

The problem of the revision of the Cepu Block EIA which was not immediately approved by the Bojonegoro Regency Government was raised in a meeting of the House of Representatives Commission VII with the Cooperation Contract Contractor (KKKS). Not only that the Minister of Energy and Mineral Resources Arifin Tasrif previously also highlighted the problem of the slow approval of this Amdal revision.

Arifin explained that the Cepu Block has an important role in increasing national oil lifting. Moreover, President Joko Widodo is tasked with increasing national oil and gas lifting. Therefore the EIA approval process is a way to increase national oil lifting considering the Cepu Block contributes 30% of the national lifting.

In 2020, the national oil and gas lifting was set at 1.95 million boepd, up slightly from last year's realization of 1.8 million boepd. Specifically, oil production rose to 755 thousand BPD and the realization of 746 thousand BPD and gas to 1.19 million boepd from the realization of 1.06 million boepd.

Investor Daily, Page-9, Monday, Feb 24, 2020

Cepu Block EIA Revision Still Encountered Dead End

The government is targeting the production of 1 million barrels of oil per day in 2025. To pursue this target, the government wants to increase the production of the Cepu Block. 

    Based on SKK Migas data, oil and gas lifting until 30 December 2019 reached 1.79 million barrels of oil equivalent per day (boepd). The realization is only equivalent to 88.6396 of the target of oil and gas lifting in the 2019 State Expenditure Budget (APBN) of 2 million boepd.

This year, the government is targeting oil lifting to reach 755,000 barrels per day (bopd) and 1.19 million boepd of natural gas. As a result, the total oil and gas lifting target throughout 2020 reached 1.95 million boepd. SKK Migas hopes that ExxonMobil Cepu Limited (EMCL) as an operator in the Cepu Block can immediately spur production. It's just that this effort is still hampered by the revision of the Environmental Impact Analysis (EIA) that has not yet been issued by the Bojonegoro Regency Government.

SKK Migas Deputy for Operations Julius Wiratno said, to date the process is still ongoing between the relevant ministries and the regional government.

"It's being worked on by the Ministry of Environment and Forestry (KLHK) which will invite the Amdal commission meeting," he said.

Dwi Soetjipto

Nevertheless, Julius was not sure when the meeting would take place. Not much different, the Head of SKK Migas Dwi Soetjipto stated until now the process of revision of the Cepu Block Environmental Impact Assessment is still ongoing.

"Yes, we are in the process, we have met several times," he said.

PT ExxonMobil Cepu Ltd (EMCL) successfully recorded an annual oil production of 218,000 bopd at the Banyu Urip field last year, this amount is equivalent to 29% of the total national oil production.

Louise McKenzie

ExxonMobil Cepu President Director Louise McKenzie said, Banyu Urip oil production last year had met the number of produced reserves in accordance with the plan of development (POD) of 357 million barrels. Louise McKenzie also admitted, the produced reserves from Banyu Urip have been renewed and could reach 940 million barrels.

ExxonMobil Cepu (EMCL) also hopes to increase and maintain oil production in the Banyu Urip Field in the range of 220,000 bopd in 2020. This is in view of ExxonMobil Cepu's status as one of the main pillars of oil production in Indonesia.

"We are trying to create prudent reservoir management to ensure production is maintained," McKenzie said.

the Jambaran Tiung Biru Project

The approval process for the Amdal revision was held in the Bojonegoro Regional Government. This is because the arrest of the Amdal revision approval was also accompanied by other requests by the Regional Government, including a gas request of 30 MMscfd from the Jambaran Tiung Biru Project.

IN INDONESIA

Revisi Amdal Blok Cepu Masih Menemui Jalan Buntu

Pemerintah menargetkan produksi 1 juta barel minyak per hari pada tahun 2025 mendatang. Untuk mengejar target tersebut, pemerintah ingin meningkatkan produksi Blok Cepu. Berdasarkan data SKK Migas, lifting migas hingga 30 Desember 2019 mencapai 1,79juta barel setara minyak per hari (boepd). Realisasi tersebut hanya setara 88,6396 dari target hfting migas dalam Anggaran Pendapatan Belanja Negara (APBN) 2019 yang sebesar 2 juta boepd. 

Pada tahun ini, pemerintah menargetlkan lifting minyak mencapai 755.000 barel per hari (bopd) dan gas bumi 1,19juta boepd. Alhasil, total target lifting migas di sepanjang 2020 mencapai 1,95 juta boepd. SKK Migas berharap, ExxonMobil Cepu Limited (EMCL) sebagai operator di Blok Cepu bisa segera memacu produksi. Hanya saja upaya ini masih terganjal revisi Analisis Mengenai Dampak Lingkungan (Amdal) yang belum terbit dari Pemerintah Kabupaten Bojonegoro.

Deputi Operasi SKK Migas Julius Wiratno mengatakan, hingga saat ini proses tersebut masih berlangsung di antara kementerian terkait dan pemerintah daerah. 

“Sedang diusahakan oleh Kementerian Lingkungan Hidup dan Kehutanan (KLHK) yang akan mengundang untuk rapat komisi Amdal," ujarnya.

Kendati demikian, Julius belum bisa memastikan kapan pertemuan itu akan terealisasi. Tidak jauh berbeda, Kepala SKK Migas Dwi Soetjipto menyatakan, hingga kini proses revisi Amdal Blok Cepu masih berlangsung. 

"Ya, sedang berproses, kami sudah bertemu beberapa kali,” ujar dia.

PT ExxonMobil Cepu Ltd (EMCL) berhasil mencatatkan produksi minyak tahunan sebesar 218.000 bopd di Lapangan Banyu Urip pada tahun lalu jumlah ini setara dengan 29% dari total produksi minyak secara nasional. 

Presiden Direktur ExxonMobil Cepu Louise McKenzie menyebutkan, produksi minyak Banyu Urip tahun lalu sudah memenuhi angka cadangan terprodulsi sesuai plan of development (POD) yakni 357 juta barel. Louise McKenzie pun mengaku, cadangan terproduksi dari Banyu Urip sudah diperbarui dan bisa mencapai 940 juta barel.

ExxonMobil Cepu (EMCL) pun berharap dapat meningkatkan sekaligus mempertahankan produksi minyak di Lapangan Banyu Urip di kisaran 220.000 bopd di tahun 2020. Ini mengingat status ExxonMobil Cepu sebagai salah satu tumpuan utama produksi minyak di Indonesia. 

"Kami berusaha menciptakan manajemen reservoir yang prudent untuk memastikan produksi tetap terjaga," kata McKenzie.

Proses persetujuan revisi Amdal ini tertahan di Pemerintah Daerah Bojonegoro. Pasalnya, penahanan persetujuan revisi Amdal juga disertai permintaan lain oleh Pemerintah Daerah, termasuk permintaan gas sebesar 30 MMscfd dari Proyek Jambaran Tiung Biru.

Kontan, Page-14, Wednesday, Feb 12, 2020

PGN Targeting the International LNG Market Up to 34 Cargoes /Year

PT Perusahaan Gas Negara (PGN) Tbk is developing a commitment to sell liquefied natural gas / LNG on the international market to 34 cargoes per year. Not only selling LNG, but PGN will also work on gas infrastructure projects in other countries.

PGN's Managing Director Gigih Prakoso revealed, with his ability in the field of LNG and gas infrastructure, his side began to develop the international LNG sales business. This is to optimize domestic and international LNG portfolios owned by Pertamina Group and PGN. Based on PGN data, there is at least a market potential of up to 34 cargoes per year that the company will work on.

"Namely Myanmar 9 cargoes per year for 5-7 years starting in 2021, the Philippines 18 cargoes per year for 2023-2043, China 6-7 cargoes per year, and Japan 1-2 cargoes and Europe 1-1 cargoes in 2020," said he was in a meeting with Commission VII of the House of Representatives.

Sinopec

So far, PGN has had a gas sale and purchase agreement (PJBG) with Sinopec, an oil and gas company from China, at the end of last year. Under this agreement, PGN will start shipping LNG to China starting this year around 6 cargoes. 

     While with other countries, PGN's Director of Business Strategy and Development Syahrial Muktar added, no binding agreement had been signed. So far, it has only received an initial commitment to supply LNG needs and build infrastructure in certain countries.

"For trading, we have made some initial commitments with several countries. We just talked about volume, about the price of adjusting existing developments, "he explained.

According to him, PGN focused on working on the LNG market in the Asian region, particularly Southeast Asia and South Asia. This is because LNG needs in this region are smaller in scale, both in terms of the volume and capacity of the required gas infrastructure. With the Arun LNG Terminal, he is optimistic that it can meet the needs of this small scale LNG.

"We made our location in Arun for the LNG Hub. Later we will bring [large LNG supplies] there, we transfer them to smaller vessels, then we will carry them for supply, "Syahrial said.

Specifically, in the Philippines, PGN will provide LNG supplies as well as build its infrastructure. Therefore, he projects that the LNG sales contract to the Philippines will be quite long. Originally, sales to the Philippines could begin in 2024 along with the completion of infrastructure development.

"There are stages. This year we have started the FID (final investment decision). We are currently working on the Joint Development Agreement, we cannot share the details, "he said.

Facilities to be worked on include LNG receiving, storing and regasification terminals. While the market potential in Myanmar, Europe, and Japan, PGN said he would only sell LNG. Syahrial added it was eyeing opportunities in Europe to optimize gas production from its oil and gas fields in the United States, namely the Fasken Field.

"For this year, the plan is up to 6 cargoes, some to China and Europe," he said.

However, he admitted that there would be a delay in the shipment of LNG to China following the Corona Virus.

Need support

Gigih added, his party expected the support of the government and the House of Representatives to support the monetization of the domestic gas field and optimize the LNG portfolio. He hopes PGN is supported to play a role in the LNG seller representative to market domestic gas. Then, the company also hopes to be trusted as a bidder for the auction of LNG spots for export destinations run by domestic oil and gas producers.

"Then, we hope to be supported by being able to run the domestic LNG business and international initiation as a global LNG player," he said.

Syahrial added the development of the LNG sales business will not collide with plans to open LNG imports. According to him, LNG imports can be done when prices in the spot market drop significantly so that they can be used to improve the domestic price structure.

"So it is not a long-term import, more to the spot, utilizing cheap external market conditions. But it is still the government that determines it, "he explained.

Cheniere Energy Inc.

Based on Investor Daily's notes, Pertamina had previously signed three LNG import contracts. Pertamina has signed a gas sale and purchases agreement (PJBG) with a subsidiary of Cheniere Energy Inc., Corpus Christi Liquefaction Liability Company, to supply 0.76 million tons of LNG per year starting in 2019 for 20 years.

Pertamina has also contracted with Cheniere Energy with the same volume but started in 2018 with a duration of 20 years. Then, Pertamina has contracted with Woodside with a volume of around 0.6 million tons per year which could be increased to 1.1 million tons per year. Supply of 0.6 million tons per year began to be delivered in 2022-2034 and could be increased to 1.1 million tons per year in 2024-2038.

Finally, the company has ahead of agreement (HoA) with ExxonMobil to supply 1 million tons per year for 20 years starting in 2025. Pertamina has also signed a PJBG with Mozambique LNG 1 Company Pte Ltd for 1 million tons per year.

IN INDONESIA

PGN Incar Pasar LNG Internasional Hingga 34 Kargo/Tahun

PT Perusahaan Gas Negara (PGN) Tbk tengah mengembangkan komitmen penjualan gas alam cair/LNG di pasar internasional hingga 34 kargo per tahun. Tidak hanya menjual LNG, PGN juga akan mengerjakan proyek infrastruktur gas di negara lain.

Direktur Utama PGN Gigih Prakoso mengungkapkan, dengan kemampunan di bidang LNG dan infrastruktur gas, pihaknya mulai mengembangkan bisnis penjualan LNG internasional. Hal ini untuk mengoptimalisasi portofolio LNG dalam negeri maupun internasional yang dimiliki Pertamina Group dan PGN. Berdasarkan data PGN, setidaknya terdapat potensi pasar hingga 34 kargo per tahun yang akan digarap perusahaan.

“Yakni Myanmar 9 kargo per tahun selama 5-7 tahun mulai 2021, Filipina 18 kargo per tahun untuk 2023-2043, Tiongkok 6-7 kargo per tahun, serta Jepang 1-2 kargo dan Eropa 1-1 kargo di 2020,” kata dia dalam rapat dengan Komisi VII Dewan Perwakilan Rakyat.

Sejauh ini, PGN telah memiliki perjanjian jual beli gas (PJBG) dengan Sinopec, perusahaan migas asal Tiongkok, pada akhir tahun lalu. Berdasarkan kesepakatan ini, PGN akan mulai mengirimkan LNG ke Tiongkok mulai tahun ini sekitar 6 kargo. Sementara dengan negara lain, Direktur Strategi dan Pengembangan Bisnis PGN Syahrial Muktar menambahkan, belum ada perjanjian mengikat yang ditandatangani. Sejauh ini, pihaknya baru memperoleh komitmen awal untuk memasok kebutuhan LNG dan membangun infrastruktur di negara-negara tertentu.

“Untuk trading-nya, kami sudah ada beberapa komitmen awal dengan beberapa negara. Kami baru bicara volume, soal harga menyesuaikan perkembangan yang ada,” jelasnya.

Menurutnya, PGN fokus menggarap pasar LNG di region Asia, utamanya Asia Tenggara dan Asia Selatan. Hal ini lantaran kebutuhan LNG di wilayah ini lebih banyak dalam skala kecil, baik volume maupun kapasitas infrastruktur gas yang dibutuhkan. Dengan adanya Terminal LNG Arun, pihaknya optimis bisa memenuhi kebutuhan LNG skala kecil ini.

“Kami jadikan lokasi kami di Arun untuk LNG Hub. Nanti kami bawa [pasokan LNG] besar ke sana, kami pindahkan ke kapal lebih kecil baru kami bawa untuk suplai,” kata Syahrial.

Khusus di Filipina, PGN akan menyediakan pasokan LNG sekaligus membangun inrastrukturnya. Karenanya, pihaknya memproyeksikan kontrak penjualan LNG ke Filipina ini bakal cukup lama. Sedianya, penjualan ke Filipina bisa dimulai pada 2024 bersamaan selesainya pembangunan infrastruktur.

“Ini ada tahapan. Tahun ini sudah mulai FID-nya (final investment decision) kami sedang mengerjakan Joint Development Agreement-nya, belum bisa share detailnya,” ungkapnya.

Fasilitas yang akan dikerjakan meliputi terminal penerimaan, penyimpanan, dan regasifikasi LNG. Sementara potensi pasar di Myanmar, Eropa dan Jepang, PGN disebutnya hanya akan menjual LNG saja. Syahrial menambahkan, pihaknya mengincar peluang di Eropa guna mengoptimalkan produksi gas dari lapangan migasnya di Amerika Serikat, yakni Lapangan Fasken.

“Untuk tahun ini, rencananya sampai dengan 6 kargo, ada yang ke Tiongkok dan Eropa,” tutur dia.

Namun, diakuinya kemungkinan akan ada penundaan pengiriman LNG ke Tiongkok menyusul menyebarkan Virus Korona.

Butuh Dukungan

Gigih menambahkan, pihaknya mengharapkan adanya dukungan pemerintah dan DPR untuk mendukung monetisasi lapangan gas domesik dan melakukan optimalisasi portofolio LNG. Pihaknya berharap PGN didukung untuk berperan dalam LNG seller representantive untuk memasarkan gas domestik. Kemudian, perusahaan juga berharap dipercaya sebagai bidder untuk lelang spot LNG tujuan ekspor yang dijalankan oleh produsen migas dalam negeri.

“Kemudian, kami berharap didukung bisa menjalankan bisnis LNG domestik dan inisiasi internasional sebagai global LNG player,” tutur dia.

Syahrial menambahkan, pengembangan bisnis penjualan LNG tidak akan bertabrakan dengan rencana membuka impor LNG. Menurutnya, impor LNG dapat dilakukan ketika harga di pasar spot turun signifikan, sehingga dapat digunakan untuk memperbaiki struktur harga di dalam negeri.

“Jadi bukan impor jangka panjang, lebih ke spot, memanfaatkan kondisi pasar luar yang murah. Tetapi itu tetap pemerintah yang tentukan,” jelas dia.

Berdasarkan catatan Investor Daily, Pertamina sebelumnya telah meneken tiga kontrak impor LNG. Pertamina telah menandatangani perjanjian jual beli gas (PJBG) dengan anak usaha Cheniere Energy Inc yakni Corpus Christi Liquefaction Liability Company untuk memasok 0,76 juta ton per tahun LNG mulai 2019 selama 20 tahun. 

Pertamina juga sudah berkontrak dengan Cheniere Energy dengan volume yang sama namun dimulai pada 2018 dengan durasi 20 tahun. Kemudian, Pertamina telah berkontrak dengan Woodside dengan volume sekitar 0,6 juta ton per tahun yang bisa ditingkatkan menjadi 1,1 juta ton per tahun. Pasokan 0,6 juta ton per tahun mulai dikirim 2022-2034 dan bisa ditingkatkan menjadi 1,1 juta ton per tahun pada 2024-2038. 

Terakhir, perseroan memiliki kesepakatan (head of agreement/HoA) dengan ExxonMobil untuk pasokan sebanyak 1 juta ton per tahun selama 20 tahun mulai 2025. Pertamina juga telah meneken PJBG dengan Mozambique LNG 1 Company Pte Ltd sebesar 1 juta ton per tahun.

Investor Daily, Page-9, Wednesday, Feb 12, 2020

Exxon Coordinates with SKK Migas

ExxonMobil Cepu Limited (EMCL) claimed to be coordinating with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to take care of submitting the revised Environmental Impact Analysis (Amdal) of the Banyu Urip Field in the Cepu Block to the Bojonegoro District Government.

the Banyu Urip Field in the Cepu Block

Exxon Mobil Cepu Limited Senior Vice President Muhammad Nurdin said the Amdal revision was related to an increase in production capacity from 220,000 barrels per day to 235,000 BPD. This capacity has been based on a series of tests by adjusting environmental and emissions aspects. The amount also adjusts to the capacity of the production capacity.

It's just that he did not discuss details about the problems experienced by Exxon with the Bojonegoro District Government so that the Amdal revision was not immediately approved. Even when Commission VII of the Indonesian House of Representatives alluded to the issue of Corporate Social Responsibility (CSR) activities that were considered to be a trouble maker, Exxon did not give a firm answer.

"A high rate test has been carried out and submitted as a revised EIA document," he said at a hearing (RDP) between Commission VII and 10 Contractors Cooperation Contract (KKKS).

Meanwhile, the age of the Cepu Block will also be longer because of the discovery of proven reserves that are almost twice the previous estimate. The Banyu Urip field oil and gas reserves in the Plan of Development (POD) were 325 million barrels. At present, the proven field reserve is 940 million barrels.

"This means the peak of the field will be longer than the Banyu Urip Field prediction during the POD," said Nurdin.

Dwi Soetjipto

Previously, SKK Migas Head Dwi Soetjipto said that in accordance with the results of the high rate test (HRT), the Banyu Urip Field was able to produce oil so 235,000 BPD safely. Dwi did not mention the specific target of the Amdal Banyu Urip Field revision was completed, but he hoped that all licensing processes could be completed quickly.

IN INDONESIA

Exxon Koordinasi Dengan SKK Migas

ExxonMobil Cepu Limited (EMCL) mengaku sedang berkoordinasi dengan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) untuk mengurus pengajuan revisi Analisis Mengenai Dampak Lingkungan (Amdal) Lapangan Banyu Urip di Blok Cepu ke Pemerintah Kabupaten Bojonegoro. 

Senior Vice President Exxon Mobil Cepu Limited Muhammad Nurdin mengatakan revisi Amdal tersebut berkaitan dengan peningkatan kapasitas produksi dari sebesar 220.000 barel per hari menjadi 235.000 bph. Kapasitas tersebut sudah berdasarkan serangkaian pengujian dengan menyesuaikan aspek lingkungan dan emisi. Besaran tersebut juga menyesuaikan dengan kemampuan kapasitas produksi.

Hanya saja dia tidak membahas detail mengenai permasalahan yang dialami antara Exxon dengan Pemerintah Kabupaten Bojonegoro sehingga revisi Amdal tidak segera disetujui. Bahkan ketika Komisi VII Dewan Perwakilan Rakyat Indonesia menyinggung soal kegiatan Corporate Social Responsibility (CSR) yang dinilai menjadi trouble maker, Exxon tidak memberikan jawaban tegas.

“Sudah dilakukan high rate test dan diajukan sebagai dokumen Amdal revisi,” katanya dalam Rapat Dengar Pendapat (RDP) antara Komisi VII dengan 10 Kontraktor Kontrak Kerja Sama (KKKS).

Sementara itu umur Blok Cepu juga akan lebih lama karena adanya penemuan cadangan terbukti yang besarnya hampir dua kali lipat dari perkiraan sebelumnya. Adapun cadangan migas lapangan Banyu Urip dalam Plan Of Development (POD) sebelumnya adalah sebanyak 325 juta barel. Saat ini, cadangan terbukti lapangan tersebut adalah sebesar 940 juta barel.

“Ini artinya peak lapangan akan lebih lama dari prediksi Lapangan Banyu Urip saat POD dulu,” kata Nurdin.

Sebelumnya, Kepala SKK Migas Dwi Soetjipto mengatakan sesuai dengan hasil high rate test (HRT), Lapangan Banyu Urip mampu memproduksi minyak sehingga 235.000 bph dengan aman. Dwi tidak menyebut target khusus revisi Amdal Lapangan Banyu Urip rampung, tetapi dia berharap semua proses perizinan dapat diselesaikan dengan cepat.

Bisnis Indonesia, Page-20, Tuesday, Jan 21, 2020

Lifting Block Rokan 2019 Exceeds Target

PT Chevron Pacific Indonesia (CPI) revealed, the realization of the Rokan Block oil lifting in 2019 exceeded the Work Plan and Budget (WP&B) targets agreed with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).

The realization of oil lifting in the Rokan Block reached 190 thousand barrels per day (BPD). While the oil lifting target in WP&B 2019 is set at 185,300 BPD.

the Rokan Block

CPI President Director Albert Simanjuntak said the lifting realization came from reparations or well services by utilizing new technology so that production in the Rokan block could still be optimal.

"In 2019, we will focus on doing workovers by using digital technology, which is choosing well candidates to work on and minimizing our downtime. We are very grateful that the approach taken by Alhamdulillah was able to exceed the plan approved by 102.5% of WPNB, "Albert said in a Hearing Meeting with the House of Representatives Commission VII in Jakarta.

Albert revealed that throughout 2019 yesterday there was no drilling. Because the CPI contract will expire soon on August 8, 2021. He said the last drilling was done in 2018 and then there were 89 wells.

With the expiration of the contract in 2021, drilling in Rokan will no longer be economical. After more than 50 years of managing the Rokan Block, CPI has drilled more than 100 oil and gas fields in the Rokan Block.

He said without drilling investment, this year's WPNB lifting target is lower than 2019 yesterday. Optimization of well injection is done to prevent a too drastic reduction in production.

"We did not drill, the investment return time was not enough, the WP&B 2020 target was 161 thousand BPD," he said.

Meanwhile, Member of Commission VII of the House of Representatives (DPR) Maman Abdurrahman asked for an explanation of the transition period for the management of the Rokan Block from CPI to Pertamina. He highlighted efforts made so that production does not drop dramatically during the transition period and when Pertamina takes over in 2021.

"How to maintain production. Who is drilling? Chevron issued the funds first or what? I'm sure Chevron doesn't want to spend money, "he said.

Albert said that he had coordinated with SKK Migas and Pertamina regarding the transition period since 2019 yesterday. He said there were three options, namely CPI which funded and conducted drilling. The second option is Pertamina to fund and drill. While the last option is funding from Pertamina and CPI that are drilling. But until now the discussion is still ongoing because the Rokan Block uses a cost recovery contract scheme.

"Our reputation in the future keeps Rokan production from dropping. We are interested in cooperation with the government and Pertamina so that the drop is prevented from going too far, "he said.

Albert further revealed that CPI suffered a loss of Rp 23 billion during 2019 due to oil theft. The theft mode is carried out by making underground tunnels (tunnels) connected to oil distribution pipes. This mode is commonly known as illegal tapping. During 2019 yesterday there were 72 illegal tapping cases. Of these 55 cases were intervened successfully. The meaning of illegal tapping has not succeeded in stealing oil.

"Our losses are in the form of stolen oil, repairing holes in the holes and cleaning up oil spills," he said.

Albert said that his side had collaborated with the TNI-Polri in preventing oil theft activities. He explained that cooperation with the security forces had been going on all this time and was being renewed every year.

"We made a cooperative agreement with the TNI-Polri because illegal tapping is becoming more sophisticated," he said.

Cepu Block Environmental Impact Analysis

Meanwhile, the House of Representatives Commission VII also highlighted the problem of Environmental Impact Analysis (EIA) in the Cepu Block, Central Java. The Amdal permit has not yet been issued by the Bojonegoro Regency Government. 

the Cepu Block  Field

     However, the management of Exxon Mobile Cepu Limited has yet to disclose issues related to the slow licensing process. This was raised in the DPR Commission VII Hearing Meeting with 10 Cooperation Contract Contractors (K3S).

the Cepu Block

Chairperson of DPR's Commission VII Chairperson of DPR's Commission VII Sugeng Suparwoto said the Cepu Block has a unique character because it continues to be able to increase proven reserves. Even now the Cepu Block is the national oil lifting platform.

"Uniquely the Cepu Block, from the Dutch Age has only just been met by continuously increasing its proven reserve to 900 million barrels, which is extraordinary," Sugeng said in Jakarta.

Exxon Mobil's Senior Vice President Cepu Muhammad Nurdin explained, the EIA problem was still coordinated with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). He was reluctant to expose the problems that made the permit process uncertain. It only explains that they have fulfilled the requirements needed in the submission of an EIA.

"High rate tests have been carried out and submitted as revised EIA documents," he said.

Muhammad explained that the Amdal revision was carried out because the factory's capacity had increased to 235 thousand barrels per day (BPD). In the previous Amdal, the production capacity was only 220 thousand BPD.

He emphasized that capacity building was based on a series of tests. Even the Environmental Impact Assessment documents have been attached aspects of the environment and emissions. During the meeting, Muhammad revealed that the increase in reserves proved to be more than double from before. The proven reserve reaches 940 million barrels. While previously in the Plan of Development (POD) revealed oil and gas reserves of 325 million barrels.

"This means that the peak field will be longer than the Banyu Urip field prediction during the PoD first," he said.

ESDM Minister Arifin Tasrif

The slow EIA of the Cepu Block has also been known by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif. He immediately communicated with the Bojonegoro Regional Government.

"We hope that this EIA will be issued soon. For this reason, we will communicate with the local government, "he said last weekend.

Arifin said that the Cepu Block has an important role in increasing national oil lifting production. Moreover, President Joko Widodo has assigned to boost national oil and gas lifting production. Therefore the EIA approval process is a door for hoisting the national oil lifting production. 

     Because the Cepu Block accounts for 30% of the national lifting. The point is this, how can we increase the lifting from the current one to go up a little more. To ride it does have to change the EIA again. So indeed for this EIA issue, we are asking the regions to be flexible, "he said.

IN INDONESIA

Lifting Blok Rokan 2019 Lampaui Target

PT Chevron Pacific Indonesia (CPI) mengungkapkan, realisasi lifting minyak Blok Rokan di 2019 melampaui target Work Plan and Budget (WP&B) yang disepakati bersama Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas). 

Adapun realisasi lifting minyak di Blok Rokan mencapai 190 ribu barel per hari (bph). Sementara target lifting minyak dalam WP&B 2019 ditetapkan sebesar 185.300 bph. 

Presiden Direktur CPI Albert Simanjuntak mengatakan realisasi lifting itu berasal dari reparasi atau well service dengan memanfaatkan teknologi baru sehingga produksi di blok Rokan tetap bisa optimal.

“2019 kami fokus lakukan workover dengan gunakan digital teknologi yaitu memilih kandidat-kandidat sumur yang dikerjakan dan meminimalisir downtime kita. Kami sangat bersyukur pendekatan yang dilakukan Alhamdulillah mampu melampaui rencana yang disetujui 102,5% dari WPNB,” kata Albert dalam Rapat Dengar Pendapat dengan Komisi VII DPR di Jakarta.

Albert mengungkapkan sepanjang 2019 kemarin tidak melakukan pengeboran. Pasalnya kontrak CPI segera berakhir pada 8 Agustus 2021 mendatang. Dia menuturkan pengeboran terakhir kali dilakukan pada 2018 lalu sebanyak 89 sumur. 

Dengan berakhirnya kontrak pada 2021 mendatang maka pengeboran di Rokan dinilai tidak lagi ekonomis. Setelah lebih dari 50 tahun mengelola Blok Rokan, CPI telah mengebor lebih dari 100 lapangan minyak dan gas di Blok Rokan. 

Dikatakannya tanpa investasi pengeboran membuat target lifting WPNB di tahun ini lebih rendah dibandingkan 2019 kemarin. Optimalisasi injeksi sumur dilakukan untuk mencegah penurunan produksi terlalu drastis.

“Kami tidak melakukan pengeboran, waktu pengembalian investasi tidak cukup, target WP&B 2020 sebesar 161 ribu bph,” ujarnya.

Sementara itu Anggota Komisi VII Dewan Perwakilan Rakyat (DPR) Maman Abdurrahman meminta penjelasan mengenai masa transisi pengelolaan Blok Rokan dari CPI ke Pertamina. Dia menyoroti upaya yang dilakukan agar produksi tidak turun drastis selama masa transisi serta ketika Pertamina mengambil alih di 2021 nanti.

“Bagaimana menjaga produksi. Siapa yang mengebor? Chevron mengeluarkan dana dulu atau bagaimana? Saya yakin Chevron tidak mau mengeluarkan duit,” ujarnya.

Albert menuturkan pihaknya berkoordinasi dengan SKK Migas dan Pertamina terkait masa transisi sejak 2019 kemarin. Dia menyebut ada tiga opsi yakni CPI yang mendanai serta melakukan pengeboran. Opsi kedua Pertamina yang mendanai serta melakukan pengeboran. Sedangkan opsi terakhir yakni dana dari Pertamina dan CPI yang mengebor. Namun hingga kini masih terus dilakukan pembahasan lantaran Blok Rokan menggunakan skema kontrak cost recovery.

“Reputasi kita ke depan menjaga agar produksi Rokan jangan sampai drop. Kami berkepentingan kerjasama degan pemerintah dan Pertamina sehingga drop dicegah jangan terlalu jauh,” ujarnya.

Lebih lanjut Albert mengungkapkan CPI mengalami kerugian mencapai Rp 23 miliar sepanjang 2019 lalu akibat aksi pencurian minyak. Modus pencurian dilakukan dengan cara membuat terowongan bawah tanah (tunnel) yang terhubung dengan pipa distribusi minyak. Modus ini biasa dikenal dengan ilegal tapping. Sepanjang 2019 kemarin tercatat 72 kasus ilegal tapping. Dari jumlah tersebut 55 kasus diantaranya berhasil diintervensi. Artianya pelaku ilegal tapping belum berhasil mencuri minyak.

“Kerugian kami berupa minyak yang dicuri, memperbaiki pipa yang dilubangi serta membersihkan tumpahan minyak, ujarnya.

Albert menuturkan pihaknya menjalin kerjasama dengan TNI-Polri dalam mencegah kegiatan pencurian minyak. Dia menjelaskan kerjasama dengan aparat keamanan itu sudah berlangsung selama ini dan terus diperbaharui setiap tahunnya.

“Perjanjian kerjasama kami lakukan dengan TNI-Polri karena pelaku ilegal tapping makin canggih,” tuturnya.

Analisis Dampak Lingkungan Blok Cepu

Sementara itu, Komisi VII DPR RI juga menyoroti permasalahan Analisis Mengenai Dampak Lingkungan (Amdal) di Blok Cepu, Jawa Tengah. Izin Amdal itu hingga kini belum diterbitkan oleh Pemerintah Kabupaten Bojonegoro. 

     Namun jajaran Manajemen Exxon Mobile Cepu Limited belum mau membeberkan permasalahan terkait lambannya proses perizinan. Hal ini mengemuka dalam Rapat Dengar Pendapat Komisi VII DPR dengan 10 Kontraktor Kontrak Kerja Sama (K3S).

Ketua Komisi VII DPR Ketua Komisi VII DPR Sugeng Suparwoto mengatakan Blok Cepu memiliki karakter unik lantaran terus mampu meningkatkan cadangan terbukti. Bahkan saat ini Blok Cepu menjadi tumpuan lifting minyak nasional.

“Unik Blok Cepu, dari Jaman Belanda baru saja  ketemu dengan terus menerus naik proven reserve menjadi 900 juta barel, luar biasa,” kata Sugeng di Jakarta.

Senior Vice President Exxon Mobil Cepu Muhammad Nurdin menerangkan, permasalahan Amdal masih dikoordinasikan dengan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas). Dia enggan membeberkan permasalahan yang membuat proses perizinan terkatung-katung. Hanya menjelaskan telah memenuhi persyaratan yang dibutuhkan dalam pengajuan Amdal.

“ Sudah dilakukan high rate test dan diajukan sebagai dokumen Amdal revisi,” ujarnya.

Muhammad menerangkan revisi Amdal dilakukan lantaran kapasitas pabrik meningkat menjadi 235 ribu barel per hari (bph). Dalam Amdal sebelumnya kapasitas produksi hanya sebesar 220 ribu bph. 

Dia menegaskan peningkatan kapasitas itu berdasarkan serangkaian pengujian. Bahkan dalam dokumen Amdal pun telah dilampirkan aspek lingkungan dan emisi. Dalam rapat tersebut Muhammad mengungkapkan peningkatan cadangan terbukti lebih dari dua kali lipat dari sebelumnya. Cadangan terbukti itu mencapai 940 juta barel. Sementara sebelumnya dalam Plan Of Development (POD) terungkap cadangan migas sebesar 325 juta barel.

“Ini artinya peak lapangan akan lebih lama dari prediksi lapangan Banyu Urip saat PoD dulu,” ujarnya.

Lambannya Amdal Blok Cepu sudah diketahui juga oleh Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif. Pihaknya segera berkomunikasi dengan Pemerintah Daerah Bojonegoro.

“Kami harapkan Amdal ini segera dikeluarkan. Untuk itu kami akan melakukan komunikasi dengan Pemda,” ujarnya akhir pekan lalu.

Arifin menuturkan Blok Cepu memiliki peran penting dalam peningkatan produksi lifting minyak nasional. Apalagi Presiden Joko Widodo menugaskan untuk menggenjot produksi lifting migas nasional. Oleh sebab itu proses persetujuan Amdal menjadi pintu untuk mengerek produksi lifting minyak nasional. Pasalnya Blok Cepu menyumbang 30% dari lifting nasional. 

    Intinya kan ini bagaimana kita bisa meningkatkan lifting dari yang sekarang ada untuk naik sedikit lagi. Untuk naik itu memang harus merubah lagi Amdal. Jadi memang untuk isu Amdal ini, kita sedang minta daerah untuk bisa fleksibilitas,” tuturnya.

Investor Daily, Page-9, Tuesday, Jan 21, 2020