Shell Ensures Downstream Business Continues

Shell Indonesia guarantees that its oil and gas downstream business in Indonesia will remain expansive amid news of the release of the 35% participating interest (PI) of the Shell Group in the Masela Block.

Rhea Sianipar

Shell Indonesia's External Relations Vice President Rhea Sianipar said investment activities in the downstream sector were still being carried out. Even Shell's downstream oil and gas business is very expanding. One example is the development of a Shell lubricant factory in Marunda, North Jakarta.

In this project, Shell is working on increasing the capacity of the lubricant plant. On the other hand, Shell ensures that the gas station business line also continues to be the focus of their business in Indonesia.

"Our retail business has grown to 116 Public Fuel Filling Stations (SPBU), not only reaching big cities, but also small cities in Indonesia," Rhea said.

But She was reluctant to comment on the news of the release of the 35% interest of the Shell Group Interest Participation in the Masela Block.

the Masela Block

"We cannot comment further on Shell's portfolio activities," Rhea said.

While the Inpex Masela Corporate Communication Manager, Moch N. Kumiawan said, currently it is focused on the planned development of the Abadi LNG project, Masela.

"We are confident that this project will continue and we are actively working to implement a development plan (POD) approved by the Indonesian government," he said.

Kontan, Page-10, Monday, July 13, 2020

Inpex Committed to the Masala LNG Project

Inpex and Shell are still discussing the transfer of 30% of Shel's participating interest

Royal Dutch Shell (Shell) 

Inpex Corporation's management is committed and believes that the Masela Block project continues, despite news of the departure of Royal Dutch Shell (Shell) as the owner of 35% participating interest in the block.

Act Corporate Communication Manager of Inpex Masela Moch N Kurniawan said, at this time his side focused on preparing the development of the Abadi LNG project, Masela.

the Abadi LNG Gas Field

"As operators of the Abadi LNG Project and supported by the Government of Indonesia, we believe this project will continue. We are actively working on implementing the plan of development (POD) approved by the Government of Indonesia," said Kurniawan.

However, he did not want to detail the continuation of discussions between Shell and Inpex. Currently, Inpex as the largest shareholder in the block is looking for a replacement for Shell. 

    In the Masela Block, Shell has a participating interest (PI) of 35%. while Inpex Corporation controls 65% PI. Later, the local government will receive a 10% allotment of participation rights, which will be taken from ownership of Shell and Inpex.

The reason for Shell's withdrawal from the Masela Block development project was due to the condition of their cash flow which was affected by the corona pandemic (Covid-19). Shell decided to focus on other projects they were working on in Indonesia.

Previously, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said that the plan to transfer participation rights by Shell still had to obtain the approval of the Minister of Energy and Mineral Resources (ESDM).

SKK Migas Deputy for Operations Julius Wiratno said the government did not interfere in discussions between Inpex and Shell. However, SKK Migas is still guarding to ensure that the discussion does not hamper the implementation of the Masela Block project.

"All the PI transfer processes must be based on the approval of the Minister of Energy and Mineral Resources. Regarding valuation and all business discussions between investors, we are not involved at all," said Julius

He added, Shell did not reveal another reason for the decision to release the participation rights in the Masela Block. Shell only stated that the distressed cash flow condition was the main reason for the decision. The Masela Block Abadi Project this year has entered the approval stage of an analysis of environmental impacts (Amdal).

Until April 2020, the process had reached 45.33396 from the target of 47.96% for the month. The Masela Block Project has also obtained a Decree (SK) for the Determination of Land Procurement Locations for the Abadi LNG auction port on June 1, 2020. The refinery is planned to be built in the Tanimbar Islands, Maluku. 

    Inpex has begun the front end engineering design (FEED) process for onshore LNG projects, floating production and offloading (FPSO), export gas pipelines, and subsea umbilical risers; and flowline (SURF). The project is targeted to operate in the second quarter of 2027, a year later than the initial target.

Kontan, Page-13, Thursday, July 9, 2020

SKK Migas Ensures that the Masela Project Still Runs Even Without the Shell

Shell Corporation, which is a participating interest holder (PI) in the Masela Block, is reported to be planning to leave the oil and gas block. However, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) ensures that the Abadi LNG Project, the Masela Block will continue.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto admitted that his party had not yet received notification that Shell was releasing its 35% participating stake (farm out) in the Masela Block. The issue of Shell leaving the Masela Block will not stop the Abadi LNG Project. Inpex will continue the project.

the Masela Block

"KKKS (cooperation contract contractor) is committed to continuing the project," he said.

Meanwhile, SKK Migas Deputy for Operations Control Julius Wiratno added, so far, the farm out plan is still limited to discussions between Shell and Inpex as partners.

"There will be an approval from the Minister of Energy and Mineral Resources (ESDM) if it is certain [to release participating shares] right," he said.

The issue of Shell will sell its participation in the Masela Block is not the first time it appears. In May last year, this issue also surfaced following Shell's plan to release a number of assets that had generated the US $ 30 billion in funds. 

    From the sale of PIs in the Masela Block, at that time Shell was eyeing for funds in the amount of US $ 1 billion. However, the issue was denied by SKK Migas at that time.

Meanwhile related to the issue of Shell's withdrawal, Inpex Masela Ltd's Acting Corporate Communication Manager Moch N Kurniawan revealed, his party was not in a position to answer the commercial activities of the oil and gas company. He said he was still focused on developing the Abadi LNG Project, the Masela Block.

"As operators of the Abadi LNG Project and with the support of the Government of Indonesia, we are confident that this project will continue and we are actively working to implement a PoD (the plan of development) approved by the Government of Indonesia," said Kurniawan.

The Abadi Project is targeted to start operating in the second quarter of 2027. The project, valued at the US $ 19.8 billion, which is worked on by Inpex Masela Ltd, is projected to produce 150 MMSCFD of the pipeline through LNG and in the form of LNG 9.5 million tons per year.

Covid-19 affected

Meanwhile related to the progress of the Abadi LNG Project, Julius said, currently, the geological and geophysical survey activities were hampered due to the Covid-19 pandemic. At the end of March, Inpex was supposed to start mobilizing survey equipment but was eventually postponed due to Covid-19. 

    Until now, there is no certainty when the mobilization of tools and labor will continue. However, it is not certain that the delay in survey activities will make the target operation of the Abadi LNG Project backward. The reason is, this project has not been fully ongoing

"And [the process] is still long, because the target [operation] is 7-8 years. However, there will definitely be recovery efforts, "said Julius.

All parties are aware that the Covid-19 pandemic is hitting the oil and gas business, not only in Indonesia but also globally. Therefore, all companies also recalculated their business. The impact of the Covid-19 pandemic on the Abadi LNG Project was also disclosed by Dwi. 

    This impact is not only on project work, but also on gas marketing which is difficult because buyers still see the situation. However, he will try to prevent the project from backing down.

"We are still discussing with Inpex so that onstream does not retreat from 2027," he said.

In terms of gas marketing, so far, Inpex has only received a commitment to purchase gas by PT PLN (Persero) 2-3 million tons per year and PT Pupuk Indonesia (Persero) 150 million standard cubic feet per day / MMSCFD. At least, around 80% of the 9.5 million tons per year gas production must have a purchase commitment so that a final investment decision / FID can be achieved.

Based on SKK Migas data, as of last March, the work on the approval of the Abadi Project environmental impact analysis (Amdal) still reached 43.41% of the target of 47.27%. In addition, the auction process for front end engineering design / FEED of onshore liquefied natural gas / LNG refinery facilities, floating production, storage and offloading (FPSO) facilities, gas pipelines, and umbilical subsea facilities, risers, and flowline (SURF) is still ongoing.

Investor Daily, Page-10, Thursday, July 9, 2020

lnpex Focus on Masela

lnpex Masela Ltd. said it was still focused on developing Abadi Field, the Masela Block in the Arafuru Sea, Maluku. Act Corporate Communication Manager of lnpex Masela Moch N. Kurniawan said lnpex remained committed to continuing the Masela Block development project. With government support, lnpex believes the project to develop the offshore oil and gas block will continue.

Inpex Corporation

"We are actively working to implement the Plan of Development / PoD which was approved by the Indonesian government," he said.

Regarding the news of Shell's withdrawal plan in the Masela Block project, Kurniawan was reluctant to respond to this. He said it had no interest in explaining the news considering it had entered Shell's commercial activities.

"We suggest to immediately ask this to Shell," he said.

When confirmed separately, Shell Indonesia still chose not to comment related to its current position in the Abadi Field project in the Masela Block. 

Rhea Sianipar

    Rhea Sianipar, VP of External Relations of Shell Indonesia, previously said that it was reluctant to comment on the news of Shell's withdrawal from its partnership with lnpex. Meanwhile, Shell originally held 35 shares of participation in the project. The rest is held by Intex and regionally owned enterprises (BUMD) by 10%.

SKK Migas Deputy for Operations Julius Wiratno previously said that Shell had decided to withdraw from the project due to cash flow problems due to projects in other countries that were hampered.

"Inpex doesn't back down, which Shell resigns as a partner. "Everything is going to be taken over by lnpex or is looking for potential partners," he said.

However, later the statement was corrected.

"Until today Shell hasn't left yet, it's a B-to-b discussion / negotiation with lnpex and others. If the Inpex continues, "he said.

Bisnis Indonesia, Page-4, Thursday, July 9, 2020

Efforts to Find a Substitute for Shell in the Masela Block

Royal Dutch Shell Plc (Shell) has indeed not officially come out of the Masela Block Abadi Gas Project, Maluku Province. But that intention has been illustrated by Shell's request to open a data room block that was designed to have an LNG capacity of 9.5 million tons.

Deputy for Operations for the Special Unit for Upstream Oil and Gas Business Activities (SKk Migas), Julius Wiratno said that negotiations between Shell and Inpex Corporation as the holders of 65% participation in the Masela Block were still ongoing.

the Masela Block in Maluku Indonesia

Do not rule out the possibility, the negotiation process will lead to a recalculation of the investment value in the block. This is also supported by situations and conditions that occur where project work has not yet fully taken place.

"Until today Shell has not resigned, there is still a B to B discussion with Inpex. "However, Inpex will continue, the project must start even if it is stumbling, let alone the Covid-19 pandemic," Julius said.

Shell's plan to step down was seen when the company asked permission to open a data room. This step allows potential investors to see the potential of the Masela Block.

SKK Migas has also sent a letter to complete the request for opening the data room. Shell is said to be looking for partners to transfer 35% of its participating shares. However, Shell Indonesia's External Relations Vice President Rhea Sianipar was reluctant to comment on this.

"For the question above, I have no comment," Rhea said.

Until last night, Melia Relations Inpex Corporation Specialist Moch N Kurniawan had not answered Kontan's questions.

Kontan, Page-12, Tuesday, July 7, 2020

Energy Investment Requires Regulatory Certainty

Bad news comes from the Indonesian energy sector. During the Corona pandemic (Covid-19), two foreign investors in the oil, gas, and electricity sectors, Shell and Mitsui, planned to flee their project in Indonesia. 

    Royal Dutch Shell Plc (Shell) intends to leave the Masela Block Abadi Gas Project, Maluku. SKK Migas confirmed, Shell wanted to release 35% of its participation in the block, influenced by Covid-19.

the Masela Block Abadi Gas  Maluku Indonesia

Besides Shell, another foreign investor who wants to escape is Japan's, Mitsui Corp. Mitsui plans to leave the Paiton power plant project, East Java. Mitsui holds a 45.5% stake in the 2,045 megawatts (MW) plant.

The energy business is indeed experiencing a decline. See, the International Energy Agency (IEA) projects total global energy investment this year to fall to US $ 400 billion, down 20% year-on-year (YoY). Earlier this year, energy investment had grown by 2%.

Indonesia was affected. Economist Indef Bhima Yudhistira Adhinegara rate, the reason investors want to get out of Indonesia Iantaran see regulations that are not yet fully friendly and often change.

"They have invested long-term, but there is uncertainty regarding policies and regulations," he said.

Indonesia's competitiveness index in the IMD World Competitiveness Ranking 2020 dropped from rank 32 to 40. Therefore, Bhima said, there needs to be an improvement in the investment climate in the country. 

    The Masela Block project is indeed on a winding road. The process of negotiating, developing, and determining the investment commitment of the Masela Block has been very difficult, namely for more than two decades since 1998.

Inpex Corporation

In July last year, the government approved the proposal of Inpex Corporation, the manager of which holds a 65% stake in the Masela Block's participation. The block's investment value is around the US $ 19.8 billion.

Until now there are no prospective buyers of liquefied natural gas (LNG) that will later be produced from the Masela Block. On the other hand, the development of onshore refineries has not yet begun.

Indonesian Petroleum Asociation (IPA) Executive Director Marjolijn Wajong assessed that depressed oil prices also contributed to the decline in investment. Then the most likely thing to do is respect the contracts that have been made with the investors.

"If you want to change the contract, the government should discuss it first with investors," he said.

Oil and Gas Practitioners and Observers Tumbur Parlindungan hopes that the government will move quickly to improve the country's oil and gas investment climate so that investors will not be shunned after the Covid-19 pandemic.

"The way to provide investment certainty is through safeguarding the sanctity of contracts or contract sanctity as well as improving overlapping rules," he said.

    In the electricity sector, the Executive Director of the Institute for Essential Services Reform (IESR) Fabby Tumiwa believes that Mitsui's plan to leave the Paiton power plant signals that investment in fossil fuel-based plants is no longer attractive.

Mitsui's intention to leave could set a precedent in the electricity sector. Later, other investors will prepare similar options to mitigate investment risks in thermal plants. Therefore, Fabby called on the all-out government to encourage investment in clean energy and energy efficiency.

"The government must have a policy framework that provides certainty," he said.

Kontan, Page-1, Tuesday, July 7, 2020

Shell is fleeing from the Masela Block

Head of SKK Migas Admits Poor Oil and Gas Condition.

Royal Dutch Shell Plc. (Shell) left the Masela Block Abadi Gas Project. Where currently Inpex Corporation (Inpex) as the largest Shell holder of the block is looking for a replacement for Shell.

"That's right (flee). Inpex is looking for a replacement," explained SKK Migas Deputy of Operations Julius Wiratno.

the Masela Block

Julius explained that the reason for Shell's flee from the Masela Block was because of the cash flow conditions affected by the co-19 pandemic situation. Shell decided to focus on other projects that were taking place in Indonesia. 

sHell

    Just so you know, Shell has a participation stake in the Masela Block of 35 percent and 65 percent by Inpex Corporation. Other than that. The Regional Government also confirmed that they would receive a 10 percent share of participating shares.

"In some other projects in other countries, it is not going well or not going well so that the company's cash flow is not good. They focus first on several projects that have already taken place," explained Julius.

He continued, currently, both Inpex Corporation and Shell are continuing discussions on options for taking full participation rights by Inpex. In addition, the option to search for new partners by Inpex also appears. Previous. 

      

Dwi Soetjipto

    The Head of SKK Migas, Dwi Soetjipto, mentioned that the condition of the LNG business that is currently in decline has indeed made some oil and gas companies worry about the project implementation. Including for the Masela Block.

"Currently the oil and gas industry is facing serious problems (including) LNG prices. "There is a fear of project owners like Masela project execution going forward," he said a few days ago.

Julius explained, it is not impossible that the project implementation time will increase. But he ensured, Inpex was committed to completing the project on time. The Masela Block is targeted to be streamlined in 2027.

The long road

The news about Shell's flee from the project, whose investment value reached 20 billion US dollars, is not new. Previously, in mid-May 2019 ago. Nevertheless, both parties continue to work together on the Masela Project. On the other hand, the Masela Project is also being faced with a number of works such as land acquisition and product buyer search.

The journey of the Masela Block liquefied natural gas (LNG) jumbo refinery project in the Tanimbar Islands in Maluku Province is still long. The Masela Block is targeted to produce 421 million cubic feet per day (mmscfd) of gas and 8,400 barrels of oil per day. 

    In addition to being constrained by land issues, Inpex Corporation and Shell Indonesia as the operator have not yet succeeded in finding potential buyers of the liquefied natural gas product. Just so you know, previously Inpex Masela Ltd had entered into an MoU of buying and selling gas from the Abadi LNG Project.

PT Perusahaan Listrik Negara (Persero)

The Masela gas production was purchased by PT Perusahaan Listrik Negara (Persero) and PT Pupuk Indonesia (Persero) in February. 

PT Pupuk Indonesia (Persero)

    The memorandum of understanding was intended to start discussions on sales and purchases to supply LNG gas to gas power plants operated by PLN and natural gas at 150 million standard cubic feet per day (mmscfd) for the co-production refinery to be built by PT Pupuk Indonesia. SKK Migas targets that the buyer search process is expected to be completed in 2021.

Surya, Page-7, Monday, July 6, 2020

THE MORE WEIGHT THE MASELA PROJECT

The Abadi Field development project, the Masela Block, located in the Arafuru Sea, Maluku is considered to be getting heavier. In addition to the uncertainty of buyers from the oil and gas block, liquid gas / LNG market conditions are also still difficult to predict.

the Masela Block

Currently, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is reviewing the continuation of the Masela Block development project.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said that the price of LNG which fell in the range of US $ 2 per MMBtu greatly affected the economics of the Masela Block project. According to him, the low price of LNG was influenced by the Covid-19 pandemic which hit almost all countries in the world, thus making demand is reduced.

"This is the fear of the project owner as in the Masela Block, project execution going forward," he said.

Dwi revealed, not a few Cooperation Contract contractors (KKKS) submitted a revised work plan this year, because they had to face a very difficult time.

SKK Migas Deputy for Operations Julius Wiratno added by looking at the current conditions, it was possible that the Masela project would be delayed. Julius had revealed that Shell Upstream Overseas Ltd. (Shell) decided to go out and the project, because of cash flow problems due to projects in other countries are stunted.

Inpex Corporation

"Inpex did not step down, which Shell resigned as a partner. All Inpex will be taken over or currently looking for potential partners, "he said.

However, later the statement was corrected.

"Until today Shell hasn't left yet, it's still a B to B discussion, negotiation. The project must continue even if it is limping, "he said.

When it was confirmed by Bisnis Indonesia, both Shell and Inpex management was reluctant to comment on the news of Shell's withdrawal in the project. Meanwhile, Shell originally held 35% of the share of participation in the project. The rest is held by Inpex and regionally-owned enterprises (BUMD) by 10%.

The Trisakti University Teaching Staff Pri Agung Rakhmanto assessed that if it was true that Shell resigned as a strategic partner in the project, the development of the Masela Block project would certainly not be easy. According to him, partner factors in the development of the Masela Block project added complexity to existing problems, such as certainty of gas buyers and Masela's production output. 

On the other hand, he said, the condition of the global LNG market in the next 5 years is projected to also be in an oversupply condition with low prices. So the cost and economic development of the Masela Block will not necessarily be competitive to develop existing fields, "he said.

Inpex Corporation and Shell Upstream Overseas Ltd.

Based on the records, Inpex Corporation and Shell Upstream Overseas Ltd. (Shell) previously signed a cost recovery profit-sharing amendment contract, including an additional 7 years of allocation and extension of the Abadi LNG project with SKK Migas on October 11, 2019.

Bisnis Indonesia, Page-4, Monday, July 6, 2020

Shell Flee the Masela Block Project

SKK Migas: The reason Shell withdrew from the Masela Block due to the financial condition exposed to the corona

The coronavirus pandemic effect (Covid-19) hit many industrial and business sectors globally, also in the country. As a result of the outbreak, Royal Dutch Shell Plc (Shell) decided to leave the Masela Block Abadi Gas Project, Maluku Province. Currently, lnpex Corporation (lnpex) as the largest shareholder in the block is looking for a replacement for Shell.

lnpex Corporation (lnpex)

"Yes, that's right (Shell is retiring). Inpex is looking for a replacement," said Deputy of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Julius Wiratno.

the Masela Block

According to him, the reason for Shell's withdrawal from the Masela Block development project was because of the cash flow conditions that were affected by the Covid-19 pandemic situation. Shell decided to focus on other projects that were taking place in Indonesia. 

Royal Dutch Shell Plc (Shell)

    In the Masela Block, Shell has a 35% stake, while Inpex Corporation 65%. Later, the local government will receive a 10% share of participation taken from the ownership of Shell and lnpex.

"In a number of projects in other countries, it is also lacking or not going well so that the company's cash flow is not good. They (Shell) focus first on a number of projects that have already taken place," said Julius.

Now, both lnpex Corporation and Shell are continuing discussions on the option to take over the full participation by lnpex. In addition, the option to search for new partners also appears by lnpex. 

Rhea Sianipar

    Shell Indonesia management does not want to comment on the development of the Masela Block Abadi Gas Project. Regarding the question above, I have no comment, "said Shell Indonesia's External Relations VP Rhea Sianipar.

Dwi Soetjipto

Previously, SKK Migas Head Dwi Soetjipto mentioned the condition of the liquefied natural gas (LNG) business which was currently in decline, causing several oil and gas companies to worry about the project implementation, including for the Masela Block.

"Currently the oil and gas industry is facing serious problems including LNG prices. There is the fear of project owners such as the Masela Block to execute projects going forward," Dwi Soetjipto said.

The schedule can be Delayed

Julius added that it was not impossible that the time to implement the Masela Block Abadi Gas Project would increase or reverse the original schedule. However, SKK Migas ensures that lnpex is committed to completing projects on time. The Masela Block is targeted to be streamlined in 2027.

On October 11, 2019, Inpex Corporation and Shell Upstream Overseas Ltd together with SKK Migas signed a cost recovery revenue-amendment contract including an additional seven years of allocation and extension of the Abadi liquefied natural gas refinery project with SKK Migas.

The signing marked the implementation of a formal agreement on the terms of the cooperation contract that was previously agreed upon and announced in July 2019. Previously, PT Pertamina (Persero) had expressed interest in participating in the project. Pertamina once sent an official letter to conduct strategic talks on the management of the gas field in 2011 and 2016.

Drama in the Masela Block

Shell Flee from the Masela Block

A series of dramas colored the process of developing the Masela Block. After Shell intends to flee, the manager of Masela, Interp Corporation, must work to secure the project. As a flashback, in the middle of 2019, the Indonesian government and Inpex Corporation had agreed on the Masela Block development plan.

At that time the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan had to go back and forth from Jakarta-Tokyo to conduct very difficult negotiations. On Tuesday 16 July 2019, finally the Masela Block POD revised document was signed by SKK Migas Chief Dwi Soetjipto and CEO of Corporation Corp Takayuki Ueda at the Merdeka Palace, witnessed by President Joko Widodo and ESDM Minister Ignasius Jonan.

The agreement with an investment value of around US $ 18.5 billion to the US $ 19.8 billion is the culmination of the back and forth negotiations over the development of the Masela project over the past 20 years. Development of the Abadi Gas Field, the Masela Work Area uses an onshore LNG scheme, with lnpex as the operator.

The Abadi LNG Plant is designed to have a capacity of 10.5 million tons of natural gas per year, including around 9.5 million tons of LNG per year, 150 mmscfd of local gas supply through land pipes, and approximately 35,000 barrels of condensate per day.

Kontan, Page-12, Monday, July 6, 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.

PT Chevron Pacific Indonesia (CPI)

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