Jambaran-Tiung Biru Project Potentially Delayed to 2022

    The Jambaran Tiung Biru (JTB) project has the potential to be operational next year, from the initial target for completion by the end of 2021. However, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is still trying to get the project completed soon.

Blogger Agus Purnomo in SKK Migas

    SKK Migas Deputy Operations Julius Wiratno said his party was still pursuing the completion of three additional upstream oil and gas projects this year, one of which was the Jambaran-Tiung Biru (JTB) Field Unitization Project. However, the completion of the project worked on by PT Pertamina EP Cepu (PEPC) has the potential to be delayed to next year.

PT Pertamina EP Cepu (PEPC)

“JTB which seems very difficult to onstream (operations) this year. There is a possibility [of withdrawing]," he said.

the Jambaran-Tiung Biru Project

    Currently, the development of the Jambaran-Tiung Biru Project has reached 95%. However, even if the progress of this project can reach 98-99%, the possibility of starting operations this year is still very difficult.

"But we still try as much as possible," said Julius.

the Jambaran-Tiung Biru Project

    Previously, the work on the Jambaran-Tiung Biru Project was affected by the Covid-19 pandemic. However, as of last June, SKK Migas is still optimistic that the gas project with a production of 192 million standard cubic feet per day/MMscfd will start operating this month. Moreover, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif and the Head of SKK Migas Dwi Soetjipto have directly reviewed the work on this project.

    The JTB project includes the construction of a gas processing facility/GPF and its supporting facilities, as well as drilling six development wells and one plug and abandonment well. By optimizing the GPF design, the salable gas production from this project can be increased from 172 MMscfd to 192 MMscfd.

    This gas production will be channeled through the Gresik-Semarang transmission pipeline owned by PT Pertamina Gas (Pertagas). Pertamina has signed the Jambaran-Tiung Biru gas sale and purchases agreement (PJBG) with PT PLN (Persero). Gas from the Jambaran-Tiung Biru project will be channeled to PLN of 100 MMscfd and the remaining 72 MMscfd for the industry in Central Java and East Java.

    Besides JTB, two other projects targeted for completion this year are the SP Bambu Besar (Asso) Project by PT Pertamina EP and Bukit Tua Phase 3 by Petronas Carigali Ketapang II Ltd. The SP Bambu Besar project is estimated to provide additional gas production of 7 MMscfd and Bukit Tua Phase 3 to produce 14 thousand BPD of oil and 30 MMscfd of gas. Including JTB, these three projects will provide additional oil production of 14 thousand bpd and gas of 367 MMscfd.

Investor Daily, Page-9, Saturday, Nov 13, 2021

Three Upstream Oil and Gas Projects Ready to Onstream

    The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas stated that as many as three upstream oil and gas projects are projected to start operating or onstream in the remaining time of this year.

Blogger Agus Purnomo in SKK Migas

    SKK Migas Deputy Operations Julius Wiratno said that of the 12 projects that have been onstream until the third quarter of 2021, there are still 3 more projects that are being prepared to increase production by around 3,000 barrels of oil per day/BOPD.

    Julius said Pertamina EP's SP Bambu Besar (Asso) project is estimated to provide additional gas production of 7 MMscfd, the Bukit Tua Project Phase 3 Petronas Carigali Ketapang II Ltd. with the potential for additional production of 14,000 BOPD and 30 MMscfd of gas. Then, one of the National Strategic Projects (PSN) for upstream oil and gas, namely Jambaran Tiung Biru Pertamina EP Cepu with a gas production potential of 330 MMscfd.

Blogger Agus Purnomo in Petronas Carigali Ketapang

"SP Bambu Besar Pertamina EP is about to be completed, the plan is to onstream this November. Bukit Tua Phase 2B will stream in December," he said.

    Meanwhile, as many as 12 oil and gas projects have successfully streamed, making the 2021 target 100% realized. The project provides additional national oil and gas production of 14,486 BOPD and 489 MMscfd of gas, with a total investment of US$1.5 billion, or equivalent to Rp21.75 trillion.

    Julius said, if all these projects can be realized, the investment figure will increase to US$ 2.92 billion or equivalent to Rp. 42.34 trillion. According to him, the acceleration of completion of upstream oil and gas projects cannot be separated from the impact of the high increase in world oil prices, above US$80 per barrel.

"World oil prices that continue to increase throughout 2021 encourage KKKS to accelerate the completion of upstream oil and gas projects so that in the third quarter of 2021 the target has been achieved 100 percent. The performance of the completion of upstream oil and gas projects will have a positive impact on accelerating the realization of upstream oil and gas investment until the end of 2023," he said.

    Referring to the results, said Julius, SKK Migas is optimistic that the entry rate at the beginning of next year will be at an optimal level.

    Regarding the JTB project, Julius said there is still a construction stage, pre-commissioning. According to him, the Covid-19 pandemic has had an impact on the progress of the project.

    Julius said the Covid-19 pandemic also had an impact on the limited workforce that could be deployed to the field. Weather constraints are one of the inhibiting factors for the current construction completion.

    Progress is about 94% more. We are still trying to get gas in at the end of 2021," he said.

PEPC

    Previously, PEPC President Director Awang Blueuardi said that the synergy between SOEs in the construction of the JTB gas unitization field development project belonging to Pertamina EP Cepu (PEPC) Zone 12 Eastern Indonesia Subholding Upstream Pertamina was expected to remain solid even though it was carried out in the midst of the Covid-19 pandemic.

    He said there were many challenges faced by this project during the pandemic, but his party continued to strive to develop innovations and coordinate so that they could continue to solve them.

Bisnis Indonesia, Page-4, Thursday, Nov 4, 2021

As of June, Pertamina's Oil and Gas Production Reaches 850 Thousand BOEPD

    PT Pertamina Hulu Energi, the Upstream Subholding of PT Pertamina (Persero), recorded the realization of oil and gas production in the first half of this year at 850 thousand barrels of oil equivalent per day/BOEPD, below the target of 974 thousand BOEPD. 

    However, the company is optimistic that it can achieve the oil and gas production target that has been set this year. PHE Development and Production Director Taufik Adityawarman said the company's contribution to oil and gas production came from domestic and foreign oil and gas blocks.

"In total, oil production is 390 thousand barrels per day (BPD) and gas is 2.665 million standard cubic feet per day / MMscfd, so that when totaled it becomes 850 thousand BOEPD," he said at the Upstream Subholding Media Gathering.

    The realization of 850 thousand BOEPD is still 87.27% of the Company's Work Plan and Budget (RKAP) target of 974 thousand BOEPD. In detail, the realization of oil production of 390 thousand BPD is only 75.44% of the target of 517 thousand BPD, while gas of 2,665 MMscfd actually exceeds the target of 2,648 MMscfd. 

PT Pertamina Hulu Rokan (PHR)

    He detailed that Regional I Sumatra under the management of PT Pertamina Hulu Rokan (PHR) recorded oil production of 49 thousand BPD and 568 MMscfd of gas. Regional II Java by PT Pertamina EP produces 66 thousand BPD oil and 445 MMscfd gas.

PT Pertamina EP

    Regional III-Kalimantan under PT Pertamina Hulu Indonesia contributed 64 thousand BPD oil and 691 MMScfd gas. Regional IV-Eastern Indonesia under PT Pertamina EP Cepu (PEPC) produces 114,000 BPD of oil and 490 MMscfd of gas. Thus, the company's four domestic regions recorded oil production of 293,000 BPD and 2,194 MMscfd of gas. Furthermore, the contribution from foreign assets or Regional V under PT Pertamina Internasional EP is 97 thousand BPD for oil and 311 MMscfd for gas.

    From the operational performance, it has realized 6 exploration wells and is working on 3 other wells. Then, the realization of 2D seismic along 1,186 kilometers (km) and 3D seismic covering an area of ​​201 square kilometers (km2).

"Then the realization of exploitation wells has 101 wells and 20 ongoing wells, 241 workover wells, and 5,085 well intervention wells have been carried out," he said.

    For additional reserves, as of June, PHE has recorded additional 1P reserves of 36.3 million barrel oil equivalent/MMBOE, and Contingency Resources 2C reserves of 37.8 MMBOE. The implementation of Community Activity Restrictions (PPKM), Taufik admits, has caused some problems in its operations. 

    Domestically, some assets must be stopped operating within a certain period of time because more than 50% of workers have been exposed to Covid-19. Abroad, where activity restrictions are also being carried out, his party must stop operations at floating storage and loading and unloading facilities / FSOs in Malaysia because of the ongoing exposure to Covid-19.

    However, he stressed that his party has prepared several mitigation measures to restore the lost oil and gas production recovery plan. This recovery plan is applied to assets that still have very high production levels. As another strategy, his party will optimize additional production from the Rokan Block managed by PHR as of August 9, 2021.

"Hopefully oil and gas production by the end of the year can be recovered," said Taufik.

Asset Acquisition

    Taufik added that the company's oil and gas production is targeted to be boosted to 1 million bpd for oil and 4,000 MMScfd for gas by 2024. One of the strategies undertaken to achieve this target is by acquiring assets from overseas oil and gas blocks. The reason is, with the realization as of last June, there is still a difference in oil production of 600 thousand bpd and 1,400 MMscfd of gas that must be pursued.

“Departing from that, the hope for the future is acquisitions. The current acquisition, we have participated in the bidding,” he said.

    Unfortunately, he did not mention which block bidding auction the company was participating in. He explained that the acquisition of assets abroad needed to be done because there were no giant discoveries in Indonesia. 

the Cepu Block

    The last giant discovery found in the country was the Cepu Block in 2001, while the gas discovery was the block that supplied the Tangguh LNG Plant in the 1990s. In selecting the assets to be acquired, continued Taufik, his party will consider the level of the reserve to production (R to P) of the oil and gas block. It targets to increase the company's R to P from the current level of 7 to 10.

"What are the criteria [of the targeted oil and gas block], which still have large reserves, large R to P, and large production volumes," he added.

    Previously, Director of Oil and Gas Program Development at the Ministry of Energy and Mineral Resources (ESDM) Dwi Anggoro Ismukurnianto said that in order to achieve the national oil production target of 1 million bpd by 2030, the acquisition of oil and gas fields abroad must be carried out by national oil and gas companies, both state-owned and private. 

    To that end, the government will facilitate acquisitions through bilateral cooperation, starting with G to G (government to government). Currently, Pertamina has a number of oil and gas blocks in 12 countries. In Algeria, the company owns shares in the Menzel Lejmet North (MLN), El Merk (EMK), and Ourhoud (OHD) blocks.

    In Iraq, the company holds shares in West Qurna 1 Field. While in Malaysia, the company holds shares in Block K, Block Kikeh, Block SNP, Block SK309, and Block SK311. Furthermore, after the acquisition of the French oil and gas company, Maurel&Prom, the company has oil and gas assets spread across Gabon, Nigeria, Tanzania, Namibia, Colombia, Canada, Myanmar, Italy, and other countries. However, its main assets that are already producing are in Gabon, Nigeria, and Tanzania.

Investor Daily, Page-9, Saturday, July 31, 2021

Upstream Oil and Gas Insurance Claim Reaches US$ 48 Billion

    Claims paid by insurance consortiums for upstream oil and gas projects carried out by Cooperation Contract Contractors (KKKS) include industrial assets, wells and LNG assets, reaching around US$ 48 billion. In the future, the claim value is expected to increase in line with the improvement in the upstream oil and gas industry triggered by the increase in world crude oil prices.

"Our consortium (Jasindo being the leader) has provided protection for 128 off-shore and on-shore oil and gas blocks. This is a lot, and Alhamdulillah we can carry out our role to protect it very well," said Director of Strategic Business of PT Asuransi Jasa Indonesia (Jasindo), Syah Amandaris in a webinar entitled The Role of Insurance in Supporting Upstream Oil and Gas Activities.

    According to him, the insurance consortium has done a good job of providing protection in every project run by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) or Cooperation Contract Contractors (KKKS).

"Several incidents that occurred in upstream oil and gas projects have made claims payments to project owners so that the losses experienced can be reduced," he said.

    Meanwhile, the claim value paid by the Insurance Consortium for SKK Migas and KKKS construction projects reached around US$ 524.16 million. He explained that from 2010 to 2021, the consortium, which is also led by PT Jasindo, has paid 121 claims for both assets and construction.

“If the number of claims is detailed, it consists of 97 claims for assets with a value of USD323.32 million. The remaining 24 claims are for construction projects with a value of US$ 200.83 million,” he said.

Blogger Agus Purnomo in SKK Migas

“We consortium play an important role in upstream oil and gas projects. It is conceivable that if the project is not insured, the cost incurred by the state through SKK Migas or KKKS is when undesirable things happen," he added.

    Furthermore, he said, from his experience in handling claims on upstream oil and gas projects, there are three examples of megaprojects whose insurance claims were successfully paid due to interruptions during project execution.

Eni

“The first is the Eni Muara Bakau BV offshore project – Jangkrik Gas Field Development Project in 2014 with a claim value of US$ 2.53 billion. Then BP Berau Ltd's offshore and onshore project – LNG Train 3 Tangguh Expansion Project in 2017 with a value of US$ 450 million (offshore) and US$2.5 billion (onshore),” he said.

PT Pertamina EP Cepu (PEPC)

"Then the onshore project PT Pertamina EP Cepu (PEPC) - Jambaran Tiung Biru Gas Unitization Project with a claim value of US $ 860.87 million in 2017 ago," Aris.

Investor Daily, Page-10, Thursday, July 15, 2021

Cepu Block Backup Optimized

    The government is targeting the potential reserves that are still available in the Cepu Block to prevent a natural decline in production in the working area which is the buffer for national oil production. The Cepu working area, which is operated by ExxonMobil Cepu Limited (EMCL), has recorded crude oil production of 475 million barrels.

ExxonMobil Cepu Limited (EMCL)

    Meanwhile, this production is higher than the estimated total volume of oil reserves produced based on the initial plan of development/POD of 450 million barrels.

the Cepu Block East Java by ExxonMobil Cepu Limited (EMCL)

    Minister of Energy and Mineral Resources Arifin Tasrif said the contribution from the Cepu Block was very large to the achievement of ready-to-sale production or national lifting reaching 30-40 percent. Unfortunately, the water content in the Cepu Block drilling has now increased which indicates a decline in production from the Cepu Block.

"There is another potential of 40 million barrels that must be exploited from around Cepu," he said.

    Arifin hopes that ExxonMobil can optimize oil and gas resources in the Cepu Block and immediately develop existing reserves to be processed into production. According to him, with the total production of the Cepu Block which has reached 475 million barrels, there are still almost half of them, namely 940 million barrels.

"ExxonMobil will take steps, among others optimizing the work in the well to be maintained, then subsurface works will be carried out, more intense programs and also prevent downtime," he said.

Blogger Agus Purnomo in SKK Migas

    Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said the decline in production in the Cepu Block was indeed due to an increase in the portion of water that came out of oil drilling and an increase in the gas ratio. 

    On the other hand, the Banyu Urip Field is currently at a stable production level at around 220,000 barrels per day. However, with production levels higher than the initial estimate, the Banyu Urip Field also experienced a scientific decline in production.

"Currently SKK Migas continues to oversee ExxonMobil Cepu Limited (EMCL) together with partners to discuss various initiatives to manage the decline in production that has begun to occur," he said.

Nicke Widyawati

    Meanwhile, PT Pertamina (Persero) said it would take part in increasing production in the Cepu Block. Pertamina President Director Nicke Widyawati said the increase in production in the Cepu Block would be pursued through the completion of the Jambaran-Tiung Biru (JTB) project which is being worked on by PT Pertamina EP Cepu (PEPC).

the Jambaran-Tiung Biru (JTB)

"Pertamina is committed to increasing additional production in the block because we realize that in the energy transition plan, the use of gas will be a transition from fuel to NRE," said Nicke Widyawati.

    The project with a total investment value of US$ 1.53 billion is projected to have a peak gas production of 192 MMscfd. The JTB project is said to provide a multiplier effect in providing gas supply for various industrial sectors in Central and East Java. 

    Based on SKK Migas data, in the first quarter of 2021 the progress of project work has reached 88.77%. The realization was still below the target of 98.22%.

    Meanwhile, ExxonMobil Cepu Limited (EMCL) crude oil production in the first three months of this year was recorded at 213,251 barrels per day or only 97.4% of the APBN target of 219,000 bopd.

GOVERNMENT APPRECIATION

    Meanwhile, the government will provide awards for upstream oil and gas contractors who have good performance. Arifin said the Ministry of Energy and Mineral Resources has sent a letter to the Ministry of Finance regarding the plan to provide incentives for existing upstream oil and gas contracts.

    According to Arifin, the provision of incentives is to increase the interest of the cooperation contract contractors to increase their production, especially for old wells.

"Those who work hard and produce good results will be rewarded in the form of incentives," he said.

    Arifin continued that wells that had been exploited for a long time had reduced reserves. It takes a lot of effort to at least maintain production levels and maintain the economy of the field.

"If production can increase, the government's share will also increase," he said.

    In addition to incentives for existing contractors, the government will also provide incentives to attract new investors. The challenge is that international oil and gas companies have a tendency to shift their investment costs to NRE.

    The government seeks to attract investors by providing attractive fiscal policies supported by the provision of data and simplification of licensing.

“Indonesia is one of the most attractive locations in the world for investment in the upstream oil and gas sector. For that, we must be able to open an attractive 'showroom' to be visited," said Arifin.

    Dwi Soetjipto assessed that the incentives to be given would depend on the economic value of the business in the field. In addition, incentives also need to refer to the applicable regulations. Dwi Soetjipto said SKK Migas would review a number of aspects to be able to provide these incentives.

"We'll see which one is the best for the country to increase investment," he said.

    On another development, the government is encouraging the development of methane hydrate as an alternative energy source with low emissions. Methane hydrate gas is believed to be one of the unconventional energy innovations that can substitute the use of conventional oil and natural gas.

    Based on research in 2004, it has been found potential reserves of methane hydrate as much as 850 trillion cubic feet in the offshore area of ​​southern Sumatra to the northwest of Java and in the Makassar Strait, Sulawesi.

    This amount is about eight times the current natural gas reserves so that it can support national energy security for up to 800 years. With the support of further research, the volume of methane hydrate gas reserves in Indonesia is estimated to reach 3,000 TCF.

Bisnis Indonesia, Page-4, Thursday, June 10, 2021

First Quarter of 2021, Pertamina's Oil and Gas Production Exceeds the Target

 

    PT Pertamina Hulu Energi, the Sub holding Upstream of PT Pertamina (Persero), managed to record oil and gas production of up to 861 thousand barrels of oil equivalent per day / BOEPD in the first quarter of 2021. This realization is 2% higher than the company's target this year of 848 thousand BOEPD.

PT Pertamina EP

    Pertamina Hulu Energi President Director Budiman Parhusip said the contribution of oil and gas production came from the oil and gas block assets of the company and its affiliates, namely PT Pertamina EP, PT Pertamina EP Cepu (PEPC), PT Pertamina Hulu Indonesia, PT Pertamina Internasional EP, and several other companies. Asset companies spread at home and abroad.

PEPC

"This achievement is 147 thousand BOEPD from international oil and gas fields and 713 thousand BOEPD from domestic. We are grateful that for the first quarter of 2021, we were able to hold back the rate of decline in natural products in the majority of our fields, "he said.

    He explained that the actual gas production until the end of March was recorded at 2.405 million standard cubic feet per day / MMscfd or 4% above the company's first-quarter target of 2,318 MMScfd. Meanwhile, the realization of ready-to-sell gas production was 1,914 MMscfd. Inline, oil production from domestic oil and gas blocks is also very good.

"Until March 2021, domestic oil production will reach 298 thousand barrels per day (BPD), while the lifting is 290 thousand BPD. We continue to strive to be able to meet the targets that have been set, "added Budiman. Meanwhile, oil production from foreign assets was recorded at 97 thousand BPD and gas 291 MMScfd.

    The company has completed 1,647 kilometers (km) of 2D seismic, 33% higher than the target, and 198 square kilometers (km2) of 3D seismic. For exploration drilling, the company has completed one well and four other wells are still under construction. 

    Next, his party has completed the drilling of 46 development wells and worked on 66 other wells. His party also succeeded in reworking wells with as many as 124 activities or 13% more than the target and Well intervention 2,334 activities from the target of 2,301 activities.

    The existence of organizational changes in Pertamina, especially the formation of Upstream Subholding, has made Pertamina's upstream oil and gas activities more adaptive, agile, and efficient. Through this sub-holding, the synergy of all work areas through regionalization can increase operational excellence, accelerate the business development process, and make decision-making faster and agile due to reduced bureaucratic processes.

"Subholding Upstream Pertamina will continue to strive for optimal performance by trying to maintain production and lifting as well as continuing exploration, development, and innovation activities in all upstream companies to achieve the target this year," said Budiman.

Investor Daily, Page-8, Monday, May 3, 2021.

The Jambaran-Tiung Biru Project Must Be Completed This Year

 

    The government is encouraging the development of the Jambaran-Tiung Biru (JTB) Project to operate by the end of this year. This is because the project with an estimated production of 192 million standard cubic feet per day / MMscfd is already awaiting its gas supply. 

ESDM

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the Covid-19 pandemic caused obstacles in the completion of the JTB Project. However, given the importance of this project, his party hopes that this project can still be completed this year.

the JTB Project

"We have asked the management to catch up again so that this project can produce gas at the end of the year. We really hope that gas from JTB can be produced immediately, "he said.

    As scheduled, the projects that are included in the list of National Strategic Projects (PSN) are supposed to start operating in the third quarter of this year. However, the pandemic hindered the completion of the project.

PT Pertamina EP Cepu (PEPC)

    President Director of PT Pertamina EP Cepu (PEPC) Awang Lazuardi explained, even though the pandemic is still ongoing, his party continues to catch up with certain sectors by achieving more progress in other sectors. This is so that the overall project is still on target. Until now, the work on the JTB Project has reached more than 89%.

"Overall we still have a significant difference in progress, although there are some parts that have not arrived. However, we are optimistic that the on stream target will be achieved according to schedule, "he said.

    Currently, several production facilities at the JTB Project are increasingly complete. Some of them include the installation of high-tech processing pipes and tubes, to other supporting facilities such as dormitory buildings. There were obstacles to the process of fabricating tools and sending them from abroad.

    To overcome this, Pertamina EP Cepu (PEPC) increases the number of workers to complete jobs whose components are already available in the country. Previously, Deputy for Finance and Monetization of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Arief S Handoko said the JTB Project is one of three projects that will provide additional gas supply, mainly in East Java. This project is even the project that will generate the largest additional supply, reaching 192 MMscfd.

Blogger Agus Purnomo in SKK Migas

"The largest additional supply will be obtained from the JTB Project which we estimate will be on stream in the fourth quarter of 2021. This project can supply gas amounting to 192 MMscfd, which will be supplied not only to East Java but also to Central Java, "said Arief.

    The JTB project includes the construction of a gas processing facility / GPF and its supporting facilities, as well as the drilling of six development wells and one plug and abandonment well. With the optimization of the GPF design, the salable gas production from this project can be increased from 172 MMscfd to 192 MMscfd.

    This gas production will be channeled through the Gresik-Semarang transmission pipe owned by PT Pertamina Gas (Pertagas). Pertamina has signed the Jambaran-Tiung Biru gas sale and purchases agreement (PJBG) with PT PLN (Persero). Gas from the Jambaran-Tiung Biru project will be supplied to PLN by 100 MMscfd and the remaining 72 MMscfd for industries in Central and East Java.

    To date, the costs incurred to build the GPF are recorded at the US $ 974.44 million or 73.4% of the total approved budget (authorization for expenditure / AFE) of US $ 1.32 billion. Meanwhile, the number of workers involved in working on this project was 7,842 people.

Investor Daily, Page-10, Saturday, April 24, 2021

East Java Potentially Excess Gas Supply

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that East Java will have an excess gas supply of up to 200 million standard cubic feet per day / MMscfd in 2022-2025. This is after the completion of a number of gas projects in the region at the end of this year.

Blogger Agus Purnomo in SKK Migas

    Deputy of Finance and Monetization of SKK Migas, Arief S Handoko, said that at least three oil and gas projects in East Java will be completed by the end of this year, namely the Jambaran-Tiung Biru (JTB) Project, Sidayu and Bukit Tua Phase 2B owned by Petronas. 

Blogger Agus Purnomo in Petronas PC Ketapang II

    The three of them will increase the gas supply in East Java. With this potential gas supply, SKK Migas hopes that the gas user industry can optimize business deals fairly and stick to the provisions in the Minister of Energy and Mineral Resources Regulation Number 8 of 2020 and Minister of Energy and Mineral Resources Decree Number 89 of 2020 which regulates gas prices for certain industries.

"While gas prices from upstream are very economical, we hope that the government can encourage the growth of the gas user industry in East Java and Central Java so that this gas potential can be purchased so that it can drive the regional economy and create a bigger multiplier effect," said Arief.

    Referring to SKK Migas data, the additional supply from the JambaranTiung Biru, Sidayu, and Bukit Tua Phase 2B projects is estimated at 226.2 MMscfd. The Jambaran-Tiung Biru Field Unitization Project undertaken by PT Pertamina EP Cepu (PEPC) will produce gas up to 192 MMscfd. 

The Jambaran-Tiung Biru Field

    Meanwhile, the additional supply from the Sidayu Project is 4.2 MMscfd for gas and 7 thousand barrels per day (bpd) for oil, and Bukit Tua Phase 2B 30 MMscfd for gas and 12,500 bpd for oil.

"The largest additional supply will be obtained from the JTB Project which we estimate will be on stream in the fourth quarter of 2021. This project can supply gas amounting to 192 MMscfd, which will be supplied not only to East Java but also to Central Java, "said Arief.

    He explained that the Jambaran-Tiung Biru Project, which was included in the list of National Strategic Projects (PSN), was scheduled to start production last year. However, the Covid-19 pandemic last year caused delays in completing this project this year. Apart from the three projects, previously there was a West Pangkah Project operating.

"At the beginning of the year there was also the West Pangkah Petronas Project which increased gas supply from the Pangkah Block, so it can be said that the amount of gas supply in East Java for 2021 will be fulfilled," he explained.

    The West Pangkah project produced 23 MMscfd of gas and 2,200 bpd of oil. To increase the utilization of this gas supply, Arief continued, his party is also encouraging the completion of the Cirebon-Semarang pipeline in order to develop the gas market in Central Java. The reason is, currently, a Gresik-Semarang pipeline has been built that can carry gas from East Java to Central Java.

"In the future, we hope that the Cirebon-Semarang transmission pipeline can be built, so that with this gas pipeline, the excess gas supply in East Java will be channeled to support the fulfillment of gas needs for industries in Central Java," said Arief.

    In fact, referring to the Gas Balance, which was compiled in 2018, East Java is one of the areas projected to have a gas supply deficit. This projection refers to the second scenario in the balance sheet which estimates gas demand based on the previous year's consumption realization and economic growth targets. The gas deficit of 563.23 MMscfd in East Java-based on this scenario will occur in 2027.

Investor Daily, Page-10, Friday,  April 16, 2021

Ahok asks JTB to be on time

 

    The President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama paid a working visit to the Jambaran - Tiung Biru (JTB) gas unitization field development project operated by PT Pertamina EP Cepu (PEPC) in Bojonegoro.

PT Pertamina EP Cepu (PEPC)

    Arriving at the project location in Bandungrejo Village, Ngasem District, Bojonegoro, Ahok, as he is often called, he inspected several locations in the project. He hopes that the JTB Project activities can be on stream soon in November 2021.

"Overall the JTB Project is on the track. We hope to be on stream soon in November 2021. Especially for JTB Project workers, work safely and come home safely," said the man who is familiarly called Ahok.

Basuki Tjahaja Purnama AKA Ahok

    With the on stream target, it is hoped that the energy needs in the East Java region, especially from the gas sector, can be accommodated immediately. Pertamina is developing the JTB Project to meet national energy needs. The JTB project can support gas energy of 192 MMSCFD during the production period. 

The Jambaran Tiung Biru (JTB) project

    The JTB project will provide a multiplier effect in providing gas supplies to various industrial sectors in Central and East Java. In addition, in partnership with ExxonMobil Cepu Limited (EMCL), Pertamina is involved in a 45 percent share ownership in the Banyu Urip Oil Field.

ExxonMobil Cepu Limited (EMCL)

    Ahok went to JTB Field accompanied by CEO of Subholding Upstream Pertamina Budiman Parhusip, President Commissioner of PT Pertamina EP Cepu (PEPC) Gandhi Sriwidodo, as well as other Pertamina Management. The group arrived and was greeted by the President Director of PT Pertamina EP Cepu (PEPC), Awang Lazuardi, and his staff. 

the Banyu Urip Oil and Gas Field ExxonMobil

    In addition to the JTB Field, Ahok also visited the Banyu Urip Oil and Gas Field in the Cepu Block in Gayam District. Ahok appreciated the oil and gas operators who have helped the government in fulfilling oil and gas energy.

Republika, Page-9, Friday,  April 9, 2021

PGN Ready to Supply Gas for Kendal Industrial Estate

 

    PT Perusahaan Gas Negara Tbk (PGN) is ready to develop gas infrastructure and services to meet the needs of the Kendal Industrial Estate (KIK) in Central Java. This step is to foster economic activity through new industries in the region.

    PGN's Director of Infrastructure and Technology Redy Ferryanto explained, since 2016, he has been studying gas demand in the KIK area. Referring to the latest developments, it is known that the demand for gas in the region is quite large. PGN continues to coordinate intensively with KIK regarding the total potential gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

PT Pertamina EP Cepu (PEPC)

    The completion of the Gresik-Semarang transmission pipeline being worked on by PT Pertamina Gas (Pertagas) will provide certainty for gas supply in Central Java. This 267 kilometer (km) pipeline has a capacity of up to 400 million standard cubic feet per day / MMScfd. The gas supply will come from the Jambaran-Tiung Biru Project which is managed by PT Pertamina EP Cepu (PEPC). Later, his party will supply gas to KIK with the distribution network that is owned by the company.

the Jambaran-Tiung Biru Project

"As for the natural gas trade besides pipelines, such as CNG (compressed natural gas) and LNG (liquefied natural gas) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas)," he said. Redy.

    He hopes that the optimization of gas distribution infrastructure to meet industrial energy needs can have a positive impact on the growth of KIK and the surrounding community for the progress of the economy of Central Java.

"The KIK that the government has built is one of the potential areas that can grow faster with the availability of natural gas energy to accelerate regional economic development," said Redy.

    KIK has been designated as a Special Economic Zone (KEK). This area is being worked on by a joint venture company between PT Jababeka Tbk and Sembawang Corporation. Until now, there have been 64 companies from 8 countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia. The growth of the industrial center in KIK is expected to be able to generate Micro, Small, and Medium Enterprises (MSMEs) and open new jobs for the surrounding community.

Investor Daily, Page-10, Friday, Feb 26, 2021

PGN Builds Gas Infrastructure in Kendal

 

    PT Perusahaan Gas Negara (Persero) Tbk is the sub-holding gas of PT Pertamina (Persero) supports the provision of infrastructure and natural gas distribution services in an effort to grow economic activity through new industries in the Central Java region. 

    One of the areas served by PGN is the Kendal Industrial Estate (KIK). KIK is a new industrial area that is the readiest in Indonesia with all the facilities. However, KIK is still having problems with certainty about the availability of natural gas which has made investors delay investing in this area.

    PGN's Director of Infrastructure and Technology, Redy Ferryanto, said that PGN has conducted a study on KIK, especially regarding gas demand since 2016. The latest developments show that gas demand in the region is very large. PGN continues to coordinate intensively with KIK regarding the potential total gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

    Redy said, PGN will strive to serve the natural gas trade through PGN's pipeline distribution network infrastructure in the Sales & Operation Region III (SOR III), which includes Central Java, East Java, and East Indonesia. Meanwhile, natural gas trading other than pipelines (CNG and LNG) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas).

    In line with the completion of the construction of the Gresik-Semarang gas transmission pipeline by PT Pertamina Gas (Pertagas), Redy continued, PGN is targeting to be able to realize the certainty of distribution of natural gas supply in Central Java. 

    The 267 kilometers (km) long transmission pipeline network has a maximum gas flow capacity of around 400 million standard cubic feet per day (MMSCFD). The potential source of supply that will be supplied by the Gresik-Semarang Pipe comes from Jambaran Tiung Biru (JTB) owned by PT Pertamina EP Cepu (PEPC).

Jambaran Tiung Biru (JTB)

"Optimizing natural gas distribution infrastructure to meet energy needs for the industry is expected to have a positive impact on the growth of KIK and the surrounding community for the progress of the Central Java economy," said Redy.

    KIK has been designated as a special economic zone (KEK) as a result of a joint venture scheme collaboration between PT Jababeka Tbk and Sembawang Corporation. KIK was inaugurated by President Joko Widodo and Singaporean Prime Minister Lee Hsien Loong. To date, there are 64 companies from eight countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia in this ABTB product.

    The development of the industrial center in KIK is expected to be able to generate micro, small and medium enterprises (MSMEs) as well as open new jobs for the surrounding community. 

    According to Redy, the development of natural gas distribution infrastructure in Central Java is very challenging for PGN. Therefore, cooperation and support from the local government and various stakeholders are also very important for the development of natural gas infrastructure in Central Java.

Republika, Page-9, Thusday, Feb 25, 2021

The Jumbo Oil and Gas Project Is Still Ongoing

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) ensures that several upstream oil and gas projects are still continuing. This is to support the achievement of oil production targets of 1 million barrels per day and natural gas 12 billion standard cubic feet per day by 2030.

the Merakes project 

    Deputy for Operations of SKK Migas, Julius Wiratno, said that major projects in the upstream oil and gas sector are still in the construction stage, some of which are expected to be completed by the end of 2021. One of them is the Merakes project which is being worked on by Eni East Sepinggan.

Eni

"We hope this project can be on stream in April with gas production of 380-400 mmscfd," he said.

the Jambaran Tiung Biru (JTB)

    There is also the Jambaran Tiung Biru (JTB) project that is being supported by SKK Migas and the government so that it can be on stream in November this year. In the future, the project managed by PT Pertamina EP Cepu (PEPC) will produce 350 mmscfd of gas.

    SKK Migas is also working on the Tangguh Train-3 project that BP Berau Ltd is working on to be on stream immediately at the end of this year or early next year.

Blogger Agus Purnomo in SKK Migas

    The project is indeed constrained from an operational perspective due to restrictions on social activities in the context of tackling the Covid-19 pandemic.

the Masela Block

"Other major projects such as Indonesia Deepwater Development (IDD) and the Masela Block are in the process of business-to-business discussions between contractors and their partners," said Julius.

Indonesia Deepwater Development (IDD) Chevron

    The IDD project is facing obstacles because its main investor, Chevron Pacific Indonesia, is reportedly leaving, even though this project should be targeted to be on stream in 2025.

Kontan, Page-10, Saturday, Feb 20, 2021