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Showing posts with label Mubdala Petroleum. Show all posts
Showing posts with label Mubdala Petroleum. Show all posts

Thursday, November 17, 2022

Pertamina Collaborates with ADNOC Companies to Work on EBT Projects

    Pertamina cooperates with two companies from the United Arab Emirates (UAE) to develop energy potential and refinery production in Indonesia, namely Masdar which is a leading renewable energy company, and Abu Dhabi National Oil Company (ADNOC).

    This commitment was announced in the presence of President Joko Widodo and President of the United Arab Emirates Mohammed bin Zayed Al Nahyan, during the peak of Business 20 (B20) activities in Nusa Dua, Bali, Monday (Nov 14).

President of the UEA Mohammed bin Zayed Al Nahyan 
with President Joko Widodo 

    The signing of the cooperation commitment was carried out previously some time ago in the UAE. The collaboration between Pertamina through Pertamina Power and New Renewable Energy (PNRE) with Masdar is the development of a Solar Power Plant (PLTS) in the Rokan Block with a cooperation agreement period of 2 years, starting November 12 2022 to 2024. PNRE and Masdar will work together to provide reliable and competitive solutions in the Rokan Phase 2 and Phase 3 PLTS development at the Rokan WK.

Nicke Widyawati

"This strategic collaboration between Pertamina NRE and Masdar will have the potential to accelerate the energy transition," said Pertamina Main Director Nicke Widyawati.

    PLTS Rokan Phase-2 is currently under study with a potential capacity of up to 50-MWp with an estimated total investment value of US$ 47 million. Meanwhile, PLTS

    Rokan Phase-3 with a potential capacity of up to 150 MWp with an estimated total investment value of US$ 140 million. This collaboration does not rule out opportunities for the development of other PLTS within Pertamina.

    Pertamina Power Indonesia (PPI) as the PNRE operator will form a joint venture with Masdar with the composition of ownership in the cooperation, namely PPI as much as 55% and Masdar as 45%. Meanwhile, the off-taker for Solar PV is PT Pertamina Hulu Rokan (PHR) with the benefit of cost savings, a reduction in CO2 footprint of up to 184,000 tons per year, and a reduction in gas consumption of up to 2816 MMSCF per year.

    In addition, PPI and Masdar also exchanged documents related to the Memorandum of Understanding for the Development of Renewable Energy Projects in Indonesia. These projects include developing new Renewable Energy (EBT) projects and sharing information for evaluating and analyzing project feasibility.

Masdar Mubdala Company

    Not only with Masdar, but Pertamina is also collaborating with ADNOC regarding the potential for cooperation in the production of Polyolefins in Indonesia. The agreement period is 1 year (12 November 2022 – 2023). 

    While the potential areas of cooperation are exploring opportunities for participation in cracker projects & new derivatives of the PT Kilang Pertamina International (KPI) Polyolefin project in Indonesia, where ADNOC is interested in utilizing ADNOC technology for Polyolefins, the potential for marketing Polyolefin products by ADNOC and supplying feedstock such as naphtha, LPG and Propane.

Transition Process

    Previously in the discussion session, Nicke also revealed that the energy transition process cannot be achieved in a short time. Requires various kinds of technology, costs, and human resources that are able to meet the standards of meeting the needs of renewable energy. 

    Meanwhile, when the transition process occurs the demand for energy needs also increases, so large-scale energy security must still be maintained. Nicke explained various strategies to face the challenge of alignment between transitions and energy needs.

    To achieve Net Zero Emission (NZE) aspirations while maintaining energy security in Indonesia, PT Pertamina has developed a comprehensive strategy that is delivered through two main pillars and 3 intermediate implementations. The first two main pillars are to focus on decarbonizing business activities, and the second is the development of a green mixed energy business.

    Then, three medium-term strategies that support the plan to drive Net Zero Emissions are first to develop carbon accounting standards that meet national and international standards. The second is stakeholder engagement to fully support the national NZE targets and commitments. This goal is supported by Pertamina's long-term investment strategy.

    The third is Pertamina's environmentally friendly sustainability business initiative which will focus on Biofuels, renewable energy sources, Carbon Capture Systems (CCS/CCUS), batteries as well as electric cars, hydrogen, and carbon businesses. Pertamina has also developed a strategy to support the energy transition by allocating capital costs (CAPEX) for low-emission energy and EBT development.

"We have set a goal to increase the Green Business portion in Pertamina's revenue mix from 5 percent in 2022 to 13 percent in 2030," said Nicke.

    Predictably, revenues from fossil fuels are expected to decline significantly from 86 percent in 2022 to 66 percent in 2040. The objective of this optimistic capital allocation has been coordinated with the Indonesian government and ensured that it is aligned with Indonesia's energy mix targets for renewable energy.

    To offset financing, Pertamina has also implemented a long-term investment strategy consisting of 14 percent Capex for green energy business actions. In addition, Pertamina continues to invest in fossil fuels and petrochemicals as its current main business, in an effort to ensure that the energy transition will not interfere with energy security.

    In addition to the capital investment strategy, Pertamina also collaborates with various parties to accelerate target achievement. Collaboration is needed, in facing the same challenges during the energy transition, especially in technology and financing.

“The cost of technology is still higher than fossil fuels. That's why, we are open to partnerships and collaborations, to drive innovation and lower technology costs, "explained Nicke.

    Collaborative efforts are being intensified because currently the use of technology in new, renewable energy still requires high costs, so the selling price to consumers is still very high. In reducing these operational costs, financing issues are expected to attract more inward investment, both international and domestic, in order to improve global financing mechanisms to support energy transition and decarbonization projects.

 Investor Daily, Page-10, Wednesday, Nov 16, 2022

Monday, August 9, 2021

Five Oil and Gas Contractors Sign Joint Contracts for Procurement of Rigs

    A total of five oil and gas companies signed a joint contract to use the jack-up rig Soehanah to realize the target of drilling wells in their respective oil and gas blocks. In addition to speeding up drilling, joint procurement of these rigs will also save costs and ultimately make the realization of investment costs that must be returned (cost recovery) more efficient.

rig Soehanah

    The five companies that signed the Jack Up drilling Rig contract Provision are Medco E&P Natuna Ltd, Mubadala Petroleum, Petronas Carigali, Premier Oil Natuna Sea BV, and Kuwait Foreign Petroleum Exploration Company (KUFPEC), with PT Vantage Drilling Company Indonesia.

Blogger Agus Purnomo in Petronas Carigali Ketapang

    Head of the Supply Chain Management and Cost Analysis Division Erwin Suryadi appreciated the joint procurement of rigs by the five cooperation contract contractors (KKKS) this. The existence of a joint contract provides certainty of the well's drilling schedule. This will ultimately support the achievement of the targets of 1 million barrels per day (BPD) and 12 billion standard cubic feet per day/BSCFD by 2030.

"With this joint contract, the commitment to drilling 12 development wells, 1 workover well, and 5 exploration wells can be fulfilled," he said.

    Not only speeding up the drilling process, but joint contracts will also increase cost recovery efficiency. From the signed contract,

    Medco Natuna E&P achieved efficiencies of up to US$ 5 million and other oil and gas companies of US$ 3.5 million. In the future, he hopes that this joint contract can also be applied to other contracts.

"The strategy of using joint contracts, especially for rig equipment which is very expensive, is one of the strategies that will be developed in the future, especially in stimulating exploitation and exploration activities to support the increase in national oil and gas production in a sustainable manner," said Erwin.

    President Director of Medco E&P Indonesia Ronald Gunawan said that his party always made various exploration and production activities efficient. However, on the other hand, his party still prioritizes the safety aspect in carrying out operations.

"We are grateful for the support of SKK Migas, other KKKS partners, and partners so that this amendment can be carried out," said Ronald.

Blogger Agus Purnomo in SKK Migas

    The realization of Wells drilling that has not been optimal is one of the reasons why the oil and gas production target has not been achieved this year. Referring to SKK Migas data, until last June, the realization of drilling development wells was still 186 wells from the target of 616 wells. 

    Furthermore, the realization of rework (workover) wells was 309 wells or 50% of the target 615 wells and the realization of drilling exploration wells was only 13 wells or 27% of the target 48 wells.

    As of June, the realization of oil and gas lifting was still recorded at 1.6 million barrels of oil equivalent per day (BOEPD) or 95.6% of the target of 1.7 million BOEPD. In detail, oil lifting reached 666.6 thousand BPD or 94.6% of the APBN target of 705 thousand BPD, and gas was 5,430 million standard cubic feet per day/MMscfd or 96.3% of the 5,638 MMscfd targets. 

Investor Daily, Page-9, Saturday, Aug 7, 2021

Monday, June 29, 2020

Completing the Pertamina Refinery Project Requires Investors

Refinery investment reaches the US $ 40 billion

PT Pertamina (Persero) needs partners in funding all fuel refinery projects targeted for completion in 2026-2027. This is because the company's finances are unable to finance the investment needs of the refinery project, which is estimated at the US $ 48 billion.

Director of PT Pertamina International Refinery Ignatius Tallulembang said, as the Processing and Petrochemical Subholding of Pertamina, it was targeting to become the best processing and petrochemical company in the Southeast Asia region. 

    This was achieved by increasing Pertamina's refinery capacity to 1.8 million barrels per day (BPD) or the largest in the region. Investment needs to increase the capacity of the refinery from the current 1 million BPD to 1.8 million BPD, he said, reached the US $ 48-50 billion.

"If you use Pertamina's own funds, of course, you can't. So in building a refinery, Pertamina really needs a partner. Because in addition to funding shares, risk-sharing can be shared, "he said.

Tallulembang explained, in the partnership the company will also continue to issue cash. However, financing refinery projects will also be borne by partners. Pertamina opened two partnership schemes, namely strategic partners (strategic investors) and financial (financial investors).

"The point is that this strategic investor is a well-known oil and gas company and has built refineries. Usually, they are involved from the start, they will bring technology and expertise. They also usually have special requirements, for example offering crude oil or joint marketing, "he explained.

Furthermore, financial partners are usually only involved in funding. According to Tallulembang, the financial partners did not intervene too much on the project and gave Pertamina the flexibility to run its business.

"The important thing is the profit we will share [with financial partners] when dividend distribution," he said.

Rosneft Oil Company Russia

So far, Pertamina has partnered with Rosneft Oil Company as a strategic partner in the Tuban Refinery Project in East Java Province. Then, Pertamina has partnered with K-Sure and Exim Bank of South Korea as financial partners and is exploring similar cooperation with Mubadala Investment Company.

But the company is also still looking for partners to complete the Bontang Refinery Project in East Kalimantan Province and Cilacap Refinery in Central Java Province. 

    Pertamina was assigned by the government to work on the Balongan Refinery Project in West Java Province, Balikpapan Refinery in East Kalimantan, Bontang Refinery also in East Kalimantan, Cilacap Refinery in Central Java, and Tuban Refinery in East Java.

After the entire refinery project is completed in 2026-2027, in addition to the processing capacity increasing to 1.8 million BPD, the refinery will also produce 1.5 million BPD of fuel and 8,600-kilo tons of petrochemical products per annum.

Private Role

Not only the partnership scheme, Tallulembang added that the development of national refineries can also be done by involving the private sector or through the Cooperation between the Government and Business Entity (KPBU). This scheme has been regulated in a law, where private business entities can work together to build refineries with Pertamina as the person in charge.

"Unfortunately this scheme has not yet been used even though it is very possible, and Pertamina can take products from refineries built. The government as an off-taker when domestic energy demand is still high is still needed, "he said.

The Director of Oil and Gas Engineering and Environment of the Ministry of Energy and Mineral Resources (ESDM) Soerjaningsih revealed, since 2001, many national private companies have obtained permits to build fuel refineries. However, the huge investment costs, high technology, land issues, crude oil supply, and product off-takers are constraints so that not even one refinery has been realized.

In the assignment of refinery construction to Pertamina, the government opened up opportunities for cooperation for domestic and foreign companies.

"So Pertamina can partner with private entities, domestic and foreign, it is possible for that. We also provide many facilities, both for the assignment scheme and the PPP, "said Soerjaningsih.

Funding facilities include state capital participation (PMN), retained earnings, government loans, bond issuance, and loans with government guarantees. While the fiscal incentives include a 100% Tax Holiday, taxes in the framework of imports, as well as income tax facilities.

Chairman of the Association of Oil and Gas Companies (Aspermigas) John S Karamoy said many national private entrepreneurs were interested in building small-capacity refineries or mini-refineries. 

   However, he admitted that the refinery development plan met with many obstacles, one of which was the certainty of off-takers or buyers of refinery products. This can be overcome if the private refinery business gets a processing deal or a processing agreement from Pertamina.

"Private refineries that will be built can also be accelerated, which is important to get a processing deal, namely this refinery will process only where Pertamina's ready-to-sell products and refinery owners only get processing fees [processing fees]," he explained.

He said he was pushing for plans to build mini refineries in eight clusters again. Because the plan was announced by the government a few years ago, but it hasn't started yet. These eight clusters are North Sumatra, Maluku Long Strait, Riau, Jambi, South Sumatra, South Kalimantan, North Kalimantan, and Maluku.

"We, together with Regionally Owned Enterprises, want to realize and hope that the eight units can be completed in 2027," said John.

Investor Daily, Page-10, Monday, June 29, 2020

Thursday, June 11, 2020

Investment Management of Pertamina Refinery Project

      Coordinating Ministry of Maritime and Pertamina Investment Management of Pertamina Refinery Project

The Maritime and Investment Coordinating Ministry will oversee all the refinery projects worked on by PT Pertamina (Persero). This follows the continued refurbishment of the Pertamina refinery project with its two partners, Saudi Aramco and Overseas Oil and Gas (OOG) Llc.

Deputy of Maritime Sovereignty and Energy of the Coordinating Ministry of Maritime Affairs and Investment Purbaya Yudhi Sadewa said the refinery project will continue. Regarding the withdrawal of two Pertamina partners from the national refinery project, this does not mean that the interest of international oil and gas companies to work on refinery projects is minimal.

"I am still optimistic that refinery investment will continue if it is well guarded," he said.

CPC Corporation - Taiwan

He recounted that he participated in overseeing one of the Pertamina refinery projects in Balongan, West Java Province, which is a refinery project that processes crude oil into petrochemical products. He continued to convince Taiwan Petroleum Corporation (CPC) of Taiwan to continue working with Pertamina. In fact, with the fall in oil prices, some companies actually withhold investment.
For information, at the end of last week, Pertamina and CPC signed the Head of Agreement / HoA for the development of the Integrated Petrochemical Industry Complex in Balongan. The petrochemical project is targeted to start operating in 2026. Purbaya said that the refinery project has many obstacles. One of them is the oil and gas mafia which complicates the construction of refineries.

oil and gas mafia

"I realize that investing in refineries is huge. We are dealing with oil and gas mafia. We are escorted. This can take place well, "he said.

Meanwhile, Energy Observer from Trisakti University Pri Agung Rakhmanto revealed, the investor's decision to invest in a project is very dependent on the return on investment from the project. If the return on investment offered falls within their criteria and there is a guarantee of certainty, investors will also work on the project.

"That's the principle. As long as there are no bright spots, investors will look for other investments, "he stressed.

He suggested, because Indonesia, which needed this investment, should be able to provide a guaranteed rate of return on investment for the refinery project. Moreover, the partnership between Pertamina and other oil and gas companies will facilitate the completion of the refinery project.

"If it can be a partnership, why should it be alone? If in business and investment, partnerships will not only strengthen but also for risk sharing, "explained Pri Agung.

Previously, in February, Pertamina said that it would not continue to work together on the development of the Bontang Refinery with OOG. Pertamina and OOG did not extend the framework agreement / FWA which formed the basis for the two companies to form a joint venture.

Pertamina also did not continue to cooperate with Saudi Aramco in the project of upgrading and upgrading the Cilacap Refinery. The reason is that the oil and gas company originating from Saudi Arabia is still focused on working on other projects, while Pertamina hopes to be able to work on the refinery project soon.

Still interesting

Purbaya added, oil and gas companies are still interested in working on refinery projects in Indonesia. One of them is that there is a company from China that plans to build a refinery. Unfortunately, Purbaya claimed not to know the details of the refinery project, including its capacity.

"There is a Chinese company asking for our approval to support the investment of US $ 6 billion-US $ 8 billion in the Batam, Riau Islands region," he said.

According to him, it is likely that the Chinese company will work on the refinery project itself, aka not cooperating with Pertamina. However, for the sale of refinery products, it is possible that the company will cooperate with Pertamina.

"But they say they can also sell international markets. Therefore the choice is in the Riau Islands Region, near international shipping lines, "said Purbaya.

In addition, Purbaya added that investment interest in the national refinery project was also conveyed by companies from the United Arab Emirates (UAE), namely the Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company.

"So the enthusiasm and interest of investing in refineries is still very large," said Purbaya.

Referring to Pertamina's official statement, ADNOC agreed to learn more about the potential for developing the Integrated Petrochemical Refinery Complex in Balongan, West Java. Pertamina and Adnoc signed a memorandum of understanding at the end of last year.

the Tuban Refinery in East Java by Rosneft

While the Mubadala Investment Company is interested in becoming an investor in the Balikpapan Kalimantan Province Refinery Project worth the US $ 5.5 billion. In addition, Pertamina also continues to work on the Tuban Refinery in East Java with Rosneft Oil Company as its partner. 

    The two companies have formed joint ventures, namely PT Pertamina Rosneft Processing and Petrochemicals. Now the project has reached the stage of land acquisition and preparation of engineering design (general engineering design / DED).

Investor Daily, Page-10, Thursday, June 11, 2020.

Saturday, April 18, 2020

Positive Pertamina Refinery Progress

PT Pertamina (Persero) continues to record positive progress to complete the construction of a national refinery to meet the targets set. The project, known as the Refinery Development Master Plan (RDMP) and Grass Root refinery (GRR) megaprojects, continues to be accelerated to pursue national energy security and independence, which is marked by the stop of imports of fuel oil (BBM) in 2026.

Fajriyah Usman

    Pertamina Corporate Communication Vice President Fajriyah Usman stated, the RDMP and GRR megaprojects showed very significant developments at each stage of development. The East Kalimantan Balikpapan refinery, up to the quarter 1-2020, has reached 15.02 percent, and by the end of this year it is targeted to reach 40 percent.

Meanwhile, the Balongan Refinery in West Java and the Cilacap Refinery in Central Java are each targeting 10 percent this year and will continue to be accelerated according to the target stages of development. In the context of acceleration, Pertamina has carried out a number of works, such as jetty construction, site development, workshop and warehouse construction, construction of laboratory buildings and Health, Safety, Security and Environment (HSSE), as well as other supporting facilities, "said Fajriyah Usman
Fajriyah explained, Pertamina had also completed the procurement of the main equipment, which took a long time to ensure the project went on target. At present the main equipment is in the process of making or manufacturing. In addition, negotiations with business partners and investors also continued well.

A number of memorandum of agreement and business agreements have been signed between Pertamina and various parties, such as The Abu Dhabi National Oil Company (ADNOC), Mubadala

Rosneft, K-Sure, and so forth. Including negotiations with Saudi Aramco also continues which is targeted to be completed by the end of April 2020.

Balongan RDMP Project, divided into three Phases. The Balongan Phase 1 RDMP development is currently in the Dual FEED Competition (DFC) stage with two consortia, namely the RRE Consortium (PT Industri Industri, PT Teknik Engineering, and PT Enviromate Technology International) and the JSW consortium, including J GC Indonesia, PT Synergy Engineering, and PT Wijaya Karya.

This process is targeted to be completed in May 2020. For Phase 2, a Feasibility Study is currently underway and the ARDHM Unit Revamp Study is currently underway. While for Balongan RDMP Phase 3 (New Refinery and Petchem Complex West Java), the Feasibility Study will be conducted with partners and are in the location and land acquisition.

Progress of Balongan Phase 3, currently in the process of procurement of land and partnership, namely Pertamina and ADNOC have signed a Memorandum of Understanding (MOU) for the development of the Petrochemical Integrated Complex in Balongan, West Java. The Plaju refinery is currently entering into a BED Licensor procurement, and is starting the BED Work. Meanwhile, Dumai RDMP is in the stage of conducting a Bankable Feasibility Study (BFS) revisit tender.

"Meanwhile, Tuban GRR has been completed with the land acquisition process and is in the process of payment. Pertamina and Rosneft have even signed a Tuban Refinery design contract with selected contractors on October 28, 2019. At present the Basic Engineering Design (BED) and Front End Engineering Design (FEED) have begun.

Land Clearing progress has reached 90.08 percent and restoration progress has reached 46.40 percent. The progress of General Engineering Design (GED) has reached 6.22 percent.

"With the support of all parties, the construction of the refinery is expected to run smoothly and be completed according to the targeted time so that we can be sovereign energy," said Fajriyah.

When the COVid - 19 pandemic that hit the world, Pertamina delivered the good news of oil and gas production in the first quarter of 2020 which recorded an increase of two percent compared to the average production in 2019.

Pertamina Upstream Director, Dharmawan Samsu stated, oil and gas production in the first quarter of 2020 recorded 919 million barrels of oil equivalent per day (MBOEPD), an increase of two percent compared to the average production in 2019 of 901 MBOEPD.

In detail, oil production averaged 421 thousand barrels per day (MBOPD), while gas production reached an average of 2,887 million standard cubic feet per day (MMSCFD).

"By adjusting work systems and personnel to anticipate the Covid-19 pandemic, Pertamina is still working to keep oil and gas production in line with the targets in the RKAP. Until now, it has reached 99 percent of the target, "said Pertamina Upstream Director, Dharmawan Samsu.

Dharmawan added, positive performance also came from oil and gas field operations operating abroad through a subsidiary of PT Pertamina International EP (PIEP) which successfully contributed oil and gas production by 156 MBOEPD or 103 percent of the 2020 Quarter-1 target.

"This increase in production is mainly from field performance in Algeria," Dharmawan said.

Republika, Page-9, Wednesday, April 9, 2020

Wednesday, February 5, 2020

Pertamina-OOG Discontinues Cooperation in Build Bontang Refinery

PT Pertamina (Persero) did not continue to work with the oil and gas company from Oman, Overseas Oil and Gas (OOG) Llc, in working on a new refinery with a capacity of 300 thousand barrels per day (BPD) in Bontang, East Kalimantan. Pertamina is now looking for new partners to complete the project.

Overseas Oil and Gas (OOG)

This was known in a meeting between Pertamina and the House of Representatives Commission VI on Monday (3/2). In his presentation, Pertamina reported the development of the Bontang refinery development in which the proposed Regional Spatial Plan (RSP/RTRW) had been submitted to the local regional government.

However, the company also said that the framework agreement / FWA agreement with partners had ended. The intended partner is OOG. FWA is the basis for both companies to form a joint venture / JV. This FWA is valid for 12 months. Therefore, the company formation between Pertamina and OOG should have been completed at the end of 2019. One of the things discussed in the formation of the JV is the share ownership of each company.

Pertamina Megaprocess Processing and Petrochemical Director Ignatius Tallulembang confirmed that cooperation with OOG did not continue. Furthermore, he will look for new partners in building the refinery project.

"We are open [looking for new partners]. But with Oman, we have [not continued], "he said in Jakarta.

In fact, according to Pertamina's data, the Bontang Refinery Project is targeted to start operating in the next five years or in February 2025. So far, OOG has signed a memorandum of understanding with PT Meta Epsi and PT Sanurhasta Mitra Tbk (MINA) to build the Bontang Refinery facility. The two companies will build supporting facilities (outside battery limit / OSBL), such as pipes, water treatment facilities, and fabrication.

In addition, OOG has also conducted open bidding in Singapore to engineering companies with a good reputation for conducting a financial feasibility study on 30 April 2019. This study will be used as a reference by lenders and banks to participate in funding the new refinery project.

The Bontang refinery requires a total investment of between the US $ 10-15 billion. In contrast to the cooperation between Pertamina and Rosneft Oil Company, for the Bontang Refinery Project, the funding needed to build the refinery is fully borne by OOG. While Pertamina obtained a 10% golden share as well as offtake of several products. The shareholding of this company can be increased.

Luhut Binsar Pandjaitan

Signals of continued cooperation with OOG have been voiced by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. The project partner at that time Luhut revealed that it could also be replaced if the performance was not good. The reason is, even though the project has been agreed since a few years ago this project has not yet been completed.

"What [Omani] company we want to find is a possible partner with Abu Dhabi, ADNOC or whatever," he said.

However, in fact, the oil and gas company from the United Arab Emirates actually did not enter the Bontang Refinery Project. The Abu Dhabi National Oil Company (ADNOC) agreed to explore further the potential of developing the Integrated Petrochemical Refinery Complex in Balongan, West Java. Pertamina and Adnoc signed a memorandum of understanding at the end of last year.

Mubadala Petroleum

While Mubadala Investment Company, a financial investment company from the United Arab Emirates (UAE), is interested in becoming an investor in the Balikpapan Refinery Project worth the US $ 5.5 billion. Pertamina has signed a principle agreement or Refinery Investment Principle Agreement to further evaluate investment cooperation opportunities in the processing sector.

Saudi Aramco

The agreement will provide a clear structure to ensure cooperation as a pathway to potential joint investment. Not only Bontang Refinery, but Pertamina also does not have an agreement with Saudi Aramco regarding the continued cooperation in capacity building and upgrading of the Cilacap Refinery.

After the asset valuation polemic that never ended, the two agreed to change the cooperation scheme into a lease. Under this scheme, Pertamina will pay the rental fees for the joint venture with Saudi Aramco which is building a new refinery unit at the Cilacap Refinery Complex. While the refinery unit which is currently in operation remains the property of Pertamina.

Nicke Widyawati

"The target is that we will agree to a leasing agreement within the next month. And if this happens, then the deal will happen, after that, we will carry out development, "said Pertamina President Director Nicke Widyawati.

The Bontang and Cilacap refineries are part of the six refinery projects developed by Pertamina. In addition to the Bontang refinery, another new refinery project developed by the company is Tuban Refinery in East Java. While the upgrading projects undertaken by other companies are in Balikapapan, East Kalimantan, in Balongan, West Java, and Dumai, Riau.

Arifin Tasrif 

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif encouraged the speeding of the refinery project undertaken by Pertamina. The refinery upgrading project is expected to start operating in the second period of President Joko Widoro's government. While the new refinery project has at least begun the construction phase.


Pertamina-OOG Tidak Lanjutkan Kerja Sama Membangun Kilang Bontang

PT Pertamina (Persero) tidak melanjutkan kerja sama dengan perusahaan minyak dan gas dari Oman, Overseas Oil and Gas (OOG) Llc, dalam mengerjakan kilang baru berkapasitas 300 ribu barel per hari (bph) di Bontang, Kalimantan Timur. Pertamina kini mencari mitra baru untuk merampungkan proyek tersebut.

Hal ini diketahui dalam rapat antara Pertamina dan Komisi VI DPR RI pada Senin (3/2) lalu. Dalam presentasinya, Pertamina melaporkan perkembangan pembangunan Kilang Bontang di mana usulan Rencana Tata Ruang Wilayah (RTRW) telah disampaikan kepada pemerintah daerah setempat. 

Namun, perseroan juga menyampaikan bahwa kesepakatan frame work agreement/FWA dengan mitra telah berakhir. Mitra yang dimaksud adalah OOG. FWA merupakan dasar bagi kedua perusahaan untuk membentuk joint venture/JV. FWA ini berlaku selama 12 bulan. Sehingga, seharusnya pembentukan perusahaan antara Pertamina dan OOG ini rampung di akhir 2019 lalu. Salah satu hal yang dibahas dalam pembentukan JV adalah kepemilikan saham masing-masing perusahaan.

Direktur Megaproyek Pengolahan dan Petrokimia Pertamina Ignatius Tallulembang membenarkan bahwa kerja sama dengan OOG tidak berlanjut. Selanjutnya, pihaknya akan mencari mitra baru dalam membangun proyek kilang tersebut.

“Kami open [cari mitra baru]. Tetapi dengan Oman, kami sudah [tidak dilanjutkan],” kata dia di Jakarta.

Padahal, mengacu data Pertamina, Proyek Kilang Bontang ditargetkan mulai beroperasi dalam lima tahun ke depan atau pada Februari 2025. Sejauh ini, OOG telah menandatangani nota kesepahaman dengan PT Meta Epsi dan PT Sanurhasta Mitra Tbk (MINA) untuk membangun fasilitas Kilang Bontang. Kedua perusahaan ini akan membangun fasilitas pendukung (outside battery limit/OSBL), seperti pipa, fasilitas water treatment, dan fabrikasi. 

Selain itu, OOG juga telah melakukan open bidding di Singapura kepada perusahaan engineering dengan reputasi bagus untuk melakukan kajian kelayakan finansial pada 30 April 2019. Kajian ini akan digunakan sebagai acuan oleh para pemberi pinjaman dan perbankan untuk turut serta mendanai proyek kilang baru tersebut.

Kilang Bontang membutuhkan total investasi antara US$ 10-15 miliar. Berbeda dengan kerja sama Pertamina dan Rosneft Oil Company, untuk Proyek Kilang Bontang, pendanaan yang dibutuhkan dalam membangun kilang ditanggung sepenuhnya oleh OOG. Sementara Pertamina memperoleh golden share 10% sekaligus sebagai offtaker beberapa produk. Bagian kepemilikan saham perseroan ini dapat ditingkatkan.

Sinyal tidak berlanjutnya kerja sama dengan OOG ini pernah disuarakan oleh Menteri Koordinator Kemaritiman dan Investasi Luhut Binsar Pandjaitan. Mitra proyek ini saat itu Luhut mengungkapkan juga dapat diganti jika kinerjanya tidak bagus. Pasalnya, meski proyek sudah disepakati sejak beberapa tahun lalu proyek ini belum juga rampung.

“Yang [perusahaan] Oman kami mau carikan mitra mungkin dengan Abu Dhabi, ADNOC atau mana,” kata dia.

Namun, nyatanya, perusahaan minyak dan gas asal Uni Emirat Arab itu justru tidak masuk ke Proyek Kilang Bontang. Abu Dhabi National Oil Company (ADNOC) sepakat mendalami lebih lanjut potensi pengembangan Kompleks Kilang Terintegrasi Petrokimia di Balongan, Jawa Barat. Pertamina dan Adnoc telah menandatangani nota kesepahaman pada akhir tahun lalu.

Sementara Mubadala Investment Company, perusahaan investasi keuangan dari Uni Emirat Arab (UEA), berminat menjadi investor dalam Proyek Kilang Balikpapan senilai US$ 5,5 miliar. Pertamina telah meneken perjanjian prinsip atau Refinery Investment Principle Agreement untuk mengevaluasi lebih lanjut peluang kerja sama investasi di sektor pengolahan. 

Perjanjian tersebut akan memberikan struktur yang jelas untuk memastikan kerja sama sebagai jalur menuju investasi bersama yang potensial. Tidak hanya Kilang Bontang, Pertamina juga belum memiliki kesepakatan dengan Saudi Aramco terkait kelanjutan kerja sama peningkatan kapasitas dan perbaikan (upgrading) Kilang Cilacap. 

Setelah polemik valuasi aset yang tidak kunjung usai, keduanya sepakat mengubah skema kerja sama menjadi sewa. Dalam skema ini, Pertamina akan membayar biaya sewa terhadap perusahaan patungan dengan Saudi Aramco yang membangun kilang unit baru di Komplek Kilang Cilacap. Sementara unit kilang yang saat ini sudah beroperasi tetap menjadi milik Pertamina.

“Targetnya, kami dalam maksimum satu bulan ke depan akan menyepakati leasing agreement. Dan kalau ini terjadi, maka deal itu akan terjadi, setelah itu kami akan melakukan pembangunan,” kata Direktur Utama Pertamina Nicke Widyawati.

Kilang Bontang dan Cilacap merupakan bagian dari enam proyek kilang yang dibangun Pertamina. Selain Kilang Bontang, proyek kilang baru lainnya yang dibangun perseroan yakni Kilang Tuban di Jawa Timur. Sementara proyek upgrading yang dikerjakan perseroan lainnya adalah di Balikapapan, Kalimantan Timur, di Balongan, Jawa Barat, dan Dumai, Riau. 

Sebelumnya, Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif mendorong percepat proyek kilang yang dikerjakan oleh Pertamina. Untuk proyek upgrading kilang, diharapkan sudah mulai beroperasi di periode kedua pemerintah Presiden Joko Widoro ini. Sementara proyek kilang baru setidaknya sudah mulai tahap konstruksi.

Investor Daily, Page-9, Wednesday, Feb 5, 2020

Friday, January 31, 2020

Mubadala Released 20% of Shares in Andaman

Mubadala Petroleum completed the participating interest / PI sale of 20% in the Andaman I Block and South Andaman to PremierOil on January 21, 2020. After releasing shares in the Andaman I and South Andaman Blocks, the oil and gas company originating from the United Arab Emirates holds each PI amounting to respectively 80% in Andaman I and South Andaman II, while PremierOil has 20% in each of the oil and gas blocks.
Mubadala Petroleum

Mubadala Petroleum has obtained the approval of the Government of Indonesia related to the sale of these shares. The Andaman I Block contract scheme uses Cost Recovery while the South Andaman Block uses a Gross Split Profit Sharing Scheme.

Dr. Bakheet Al Katheeri

Director of Mubadala Petroleum Dr. Bakheet Al Katheeri said the release of shares in the two oil and gas blocks was an important step for the company.

"The sale of these shares is an important step for the company and for the exploration of the Andaman Block off the coast of Aceh, and supports a growth strategy Mubadala in Indonesia, "he said in a statement posted on the official website of the Mubadala company.

the Andaman Block in Aceh

In addition to the two oil and gas blocks, Mubadala also holds a 30% PI in the Andaman II Block operated by Premier Oil. In this way, Mubadala holds ownership in three oil and gas blocks off the coast of Aceh and holds the largest oil and gas area in this region.

Meanwhile, Wisnu Prabawa Taher, Head of the SKK Migas Program and Communication Division, claimed that he could not comment much, ensuring the PI release process first. "I'll check first," he said.


Mubadala Lepas 20% Saham di Andaman

Mubadala Petroleum menyelesaikan penjualan participating interest/PI sebesar 20% di Blok Andaman I dau South Andaman ke PremierOil pada 21 Januari 2020. Setelah melepas saham di Blok Andaman I dan South Andaman, perusahan migas yabg berasal Uni Emirat Arab ini memegang PI masing-masing sebesar 80% di Andaman I dan South Andaman II, sedangkan PremierOil memiliki 20% di masing-masing blok migas tersebut. 

Mubadala Petroleum telah memperoleh persetujuan Pemerintah Indonesia terkait penjualan saham ini. Skema kontrak Blok Andaman I menggunakan Cost Recovery sementara Blok South Andaman menggunakan Skema bagi hasil kotor atau Gross Split.

Direktur Utama Mubadala Petroleum Dr. Bakheet Al Katheeri mengatakan pelepasan saham di kedua blok migas ini merupakan langkah penting bagi perusahaan.

“Penjualan saham ini adalah langkah penting bagi perusahaan dan untuk eksplorasi Blok Andaman di lepas pantai Aceh, dan mendukung strategi pertumbuhan Mubadala di Indonesia,” katanya dalam keterangan yang diunggah di situs resmi perusahaan Mubadala.

Selain di dua blok migas tersebut, Mubadala juga memegang PI 30% di Blok Andaman II yang dioperatori oleh Premier Oil. Dengan begitu, Mubadala memegang kepemilikan saham di tiga blok migas di lepas pantai Aceh dan menjadi pemegang area migas terluas di vvilayah ini. 

Sementara itu, Wisnu Prabawa Taher Kepala Divlsi Program dan Komunikasi SKK Migas mengaku belum bisa berkomentar banyak akan memastikan proses pelepasan PI itu terlebih dahulu. “Saya cek dulu,” katanya.

Bisnis Indonesia, Page-20, Friday, Jan 24, 2020