Pertamina will Release PHE to the Stock Exchange

PT Pertamina (Persero) states that one of the sub holdings prepared to be offered to the public is upstream sub-holding which is operated by PT Pertamina Hulu Energi (PHE). This strategy is to increase the company's oil and gas production to be better.

PT Pertamina Hulu Energi (PHE)

Pertamina President Director Nicke Widyawati said, in managing oil and gas blocks, the company usually also partners with other companies. The reason is, by working with other companies, oil and gas production can be more optimal. 

Nicke Widyawati

   In fact, to work on the Rokan Block, the government requires Pertamina to partner with other companies. This is also the basis for the company to prepare upstream sub-holding for the IPO.

"The first thing we will see [for IPO] is upstream sub-holding," said Nicke Widyawati.

Nicke Widyawati explained, many of the company's upstream assets still have the potential to be developed. However, the development of oil and gas blocks requires huge funding. In the future, around 60% of the company's total budget will be used to fund the upstream oil and gas project.

"So, later the funds obtained from the IPO will be used for upstream investment," Nicke said.

Upstream oil and gas investment, called Nicke Widyawati, is not limited to the upstream oil and gas assets owned by the company. Funds from the IPO will also be used to add new upstream oil and gas assets.

"Our IPO will use the funds for the upstream acquisition," said Nicke Widyawati.

At the end of last year, the company had budgeted funds for the acquisition of oil and gas blocks of US $ 150 million this year. Although it is not yet certain which block is targeted, the company is eyeing assets in Africa and the Middle East.

Energy observers from Trisakti University Pri Agung Rakhmanto rate, the IPO step is very good to improve corporate governance, because it must be more open. IPO is also good to be able to raise funds from third parties (public).

"For Pertamina's upstream, which does require strengthening funds for investment, this is positive. When it comes to performance, that's another thing, it also depends on how to run the company, "he said.

Regarding Article 33 of the 1945 Constitution which states that production branches which are important for the State and which control the lives of many people are controlled by the State, according to him, it does not become an issue if the IPO does not relinquish the majority of share ownership.

"As long as the majority shares are still in the country, in my opinion, more positive," said Pri Agung.

He added Pertamina was not the first oil and gas BUMN to be listed on the exchange. At present, there are already many other state-owned oil and gas companies listed on the stock exchange, such as Petrobras which is a Brazilian oil and gas BUMN, Petronas Malaysia, YPF Argentina, Statoil Norway, and Saudi Aramco Saudi Arabia.

Management of Oil and Gas Blocks

In addition to the IPO plan, Pertamina is also restructuring its oil and gas block management. Nicke explained, after the sub-holding was formed, the management of the oil and gas block would be done by region. Previously, despite being in one area, the management of the oil and gas block was carried out by a different subsidiary. For example in Sumatra, there are oil and gas blocks managed by PHE and PT Pertamina EP.

"We think this should be managed in synergy and coordination, so there can be efficiency. For this reason, under the sub-holding [oil and gas block] is managed in a way regionalization, "explained Nicke Widyawati.

In this way, all resources and equipment procurement can be synergized. All this time due to being separate, procurement of tools such as rigs has become difficult and long. This is because among subsidiaries scrambling to find rigs, while the number of rigs in the market is limited. 

    Other parties are also reluctant to increase the number of rigs because the company's procurement contracts tend to be short-term. These problems have become one of the causes of exploration and achievement of upstream oil and gas production below the target.

"This is how we manage all assets more efficiently and at the same time, improve our products and services," said Nicke.

It also wants to encourage investment in rig procurement in the country. Under the upstream sub-holding, there are several subsidiaries that will work on Pertamina's oil and gas blocks in certain areas. 

    Precisely, Pertamina EP will manage the company's oil and gas block in Java, PT Pertamina Hulu Indonesia will work on upstream oil and gas assets in Kalimantan, Pertamina EP Cepu (PEPC) will handle oil and gas working areas in Eastern Indonesia, and PT Pertamina International EP continues to manage oil and gas blocks outside the country.

Dwi Seotjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Seotjipto said, his party would see Pertamina's explanation of organizational changes in upstream sub-holding, mainly related to the authority of each operator in Pertamina's oil and gas block. The reason is that the Production Sharing Contract / PSC signed by the government is the company that is the operator.

Blogger Agus Purnomo in SKK Migas

"With the sub-holding, we will later see its authority in investment as well as the implementation and operation of the oil and gas block concerned," Dwi Seotjipto said.

Regarding the implementation of the contract, this depends on the bureaucracy established by Pertamina in the presence of this sub-holding. If the bureaucracy and decision-making are simpler, and the authority of the oil and gas block operator can be supported, there will be no problems.

"Hopefully it is better, the important thing is that the bureaucracy is not long, so the investment step is faster," Dwi said.

Investor Daily,  Page-10, Tuesday, June 16, 2020

Pertamina EP Cepu Optimistic that JTB Project Operates on Time

PT Pertamina EP Cepu (PEPC) is optimistic that the Jambaran-Tiung Biru unitization project can be completed on time and operational in mid-2021. Although the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) sees no indication of delays in the execution of this project.

Jamsaton Nababan

PEPC Managing Director Jamsaton said, his party understood SKK Migas' concerns regarding the potential pullback of the JTB Project. The reason is SKK Migas could have estimated the assumption of the worst scenario considering the impact of the Covid-19 pandemic on the work of national oil and gas projects.

PT Pertamina EP Cepu (PEPC)

He admitted, there were several obstacles in the work of the JTB Project which indeed had the potential to cause delays. But it is trying to innovate to minimize the potential for these delays.

the Jambaran-Tiung Biru unitization project

"Namely by adjusting construction schedules and materials on site but by maintaining the onstream target in July 2021," Jamsaton said.

Jamsaton explained the obstacle faced was the limited workforce of experts who were willing to work in the field due to fears of contracting the Covid-19 Virus. Then, there are limitations to the mobilization of workers due to the enactment of Large-Scale Social Restrictions (PSBB) as prevention of the spread of the virus. The quarantine period imposed by the Bojonegoro Regency Government also reduced the effective working days.

"These three things cause the workforce needs in the field are not optimal so they cannot do construction speed-ups," he said.

Not only that, the process of manufacturing goods in several countries stalled due to lockdowns imposed in those countries. In a country that does not run a lockdown, the manufacturing process is slow due to restrictions on working hours and transportation of materials including manufacturing in Indonesia.

Investor Daily, Page-9, Wednesday, June 10, 2020.

National Strategic Projects Account Accord Targeting

At the time of the outbreak of the Covid-19 pandemic in Indonesia, PT Rekayasa Industri (Rekind) successfully completed a number of national strategic projects in accordance with the specified work targets. 

PT Pertamina EP Cepu (PEPC)

    One of the national strategic projects currently able to achieve the specified target is the Gas Processing Facility (GPF) Project for the Gas Unitization Field - Jambaran Tiung Biru (JTB), Bojonegoro, East Java, owned by PT Pertamina EP Cepu (PEPC) - a subsidiary PT Pertamina (Persero).

PT Rekayasa Industri (Rekind)

Rekind who joined the JGC-IND consortium recently succeeded in achieving an important milestone in the project, namely the appointment of Selexol Heavy Equipment and Regenerator for the Gas Processing Facility (GPF) Gas Unitization Unit - Jambung Tiung Biru (JTB) with a total weight of 760 tons.

 Jambung Tiung Biru (JTB)

    The implementation of the GPF EPC project work continues even in the face of the Covid-19 pandemic situation so that the progress of the JTB project work in May 2020 has reached 64.20% with a completion target of July 2021.

"It is an honor for Rekind to play a big role in delivering the country's national strategic projects to achieve the specified targets. I am very grateful for this achievement, even though the project team had to struggle during the challenges of the Covid-19 outbreak, "said Rekind President Director Yanuar Budinorman.

Rekind's high commitment to implementing a number of projects mandated by the state was also reflected in the implementation of the Lombok CFSPP FTP-2 PLTU project (2x50MW) in Sambelia, East Lombok, West Nusa Tenggara Province.

Rafako S.A - Poland

The involvement of Rekind with Rafako S.A (a Boiler manufacturer from Poland) is believed to support the national electricity program of 35,000 MW and specifically to accelerate the increase in electrification ratios on the island of Lombok, West Nusa Tenggara (NTB).

At the end of 2019 Rekind also completed the Muara Laboh Geothermal Power Plant (PLTP) located in Solok Selatan Regency, West Sumatra, with 85 MW capacity owned by PT Supreme Energy Muara Laboh (SEML).

At present Rekind is also implementing the Rantau Dedap PLTP Project with a capacity of 98.4 MW (2 units), which until April 2020 the project progress has reached 81.6%. The project, owned by PT Supreme Energy Rantau Dedap (SERD), will later supply electricity to the electricity system in the South Sumatra region. 

    The achievements made by Rekind did not stop there. The subsidiary of PT Pupuk Indonesia (Persero) also has an achievement in the construction of other national strategic projects, such as the Balikpapan Refinery Development Master Plan (RDMP) project.

Hyundai Engineering Co., Ltd.

In carrying out the project owned by PT Pertamina (Persero), Rekind was incorporated through Joint Operation (JO) together with three EPC companies from home and abroad, namely PT Pembangunan Perumahan (PP), Hyundai Engineering Co., Ltd. (HEC) and SK Engineering & Construction Co., Ltd. (SKEC).

SK Engineering & Construction Co., Ltd. (SKEC)

 Investor Daily, Page-9, Saturday, June 6, 2020

Drilling according to Plan, JTB Project Starts Operating Next Year

PT Pertamina EP Cepu (PEPC) has completed the completion of four oil and gas wells in the Jambaran-Tiung Biru Field (JTB). This subsidiary of PT Pertamina (Persero) will complete drilling of two more wells so that the JTB Project can start operating in 2021.

the Jambaran-Tiung Biru Field (JTB)

Director of PT Pertamina EP Cepu (PEPC) Jamsaton Nababan said the completion phase was an important step in the development of the Jambaran-Tiung Biru Gas Field well. Because the well has entered the final phase before then producing gas.

"We hope that this continued operation can take place safely and smoothly, in accordance with our commitment to safety standards. We hope that the JTB project will run safely, safely and smoothly until the target on stream is achieved by 2021, "he said.

RIG PDSI

The completion of the four wells at Wellpad Jambaran East runs from 6 April to 25 May. At this stage, the production pipeline is installed and all its accessories, including the X-Mass Tree, are used to regulate the gas production flow.

RIG PDSI # 40

The four wells are JAM-3, JAM-4ST, JAM-5ST, and JAM-8. The perforation work will later be done without using a rig. Drilling Operations Manager Dhanar Eko Prasetyo added, his party then moved the rig to Jambaran Central Wellpad once the completion of four wells in Jambaran East was completed on May 25. Subsequently, drilling of two wells in Jambaran Central, namely JAM-6 and JAM-7, began this June.

"In carrying out the work, we ensure the safety of every worker involved. Safe working hours at the Drill Site have reached 934,830 as of May 8, 2020, "he said.

Safe working hours are an important part of the JTB Project operated by PEPC. In total, PEPC has reached 17,391,921 Safe Working Hours. Previously, Pertamina EP Cepu had successfully completed the installation of the Selexol Regenerator and Absorber. 

    In addition, the company has also completed detailed design work (front end engineering design / FEED), land acquisition, and early civil work. In addition to Well drilling, Pertamina EP Cepu is also still working on gas / GPF processing facilities construction and well drilling.

Investor Daily, Page-10, Tuesday, June 2, 2020

After Completion, PEPC Prepares to Move the Rig

Another achievement step was achieved by PT Pertamina EP Cepu (PEPC) in the Jambaran-Tiung Biru (JTB) Gas Project, successfully completing the completion stage in the Wellpad Jambaran East drilling activity, which was carried out from April 6 to May 25, 2020.

the Jambaran-Tiung Biru (JTB) Gas Project

This completion stage is the process of installing tubing and all its accessories, including the X-Mass Tree to regulate the flow or flow of gas production later.

RIG PDSI

The wells that have been completed and are ready for perforation of the production zone include 4 wells in Wellpad Jambaran East, namely JAM-3, JAM-4ST, JAM-5ST, and JAM-8. The perforation work will later be carried out by Rigless Operation (not using a rig).

"This completion is an important stage in developing the Jambaran-Tiung Biru Gas Field well because the well has entered its final phase before producing gas. We hope that this continued operation can take place safely and smoothly in accordance with our commitment to safety standards. For this reason, we pray for the JTB Project to proceed safely, safely and smoothly until the on-stream target is reached by 2021, "said Jamsaton, President Director of PT Pertamina EP Cepu.

This was confirmed by Drilling Operations Manager Dhanar Eko Prasetyo, who explained that in carrying out this activity, PEPC remained Compliant and Concerned with applicable safety standards.

RIG PDSI # 40

"After this completion, we will carry out the Rig Move activities or move the rig from Jambaran East to Jambaran Central, starting on May 25, 2020, with the target to be able to start drilling operations at the JAM-6 and JAM-7 wells in June 2020. In the implementation of work, we chose to work safely, by ensuring the safety of every worker involved. Alhamdulillah, safe working hours at the Drill Site have reached 934,830 as of May 28, 2020. " he said.

Bhirawa, Page-5, Tuesday, June 2, 2020

Upstream Oil and Gas Industry Asked to Maintain Activities and Avoid Layoffs

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) requests that the upstream oil and gas industry continue to maintain operations and avoid termination of employment (PHK), in order to maintain the continuity of the industry in the following years, despite being affected by the Covid pandemic. 19 and low world oil prices.

The Head of SKK Migas Dwi Soetjipto said that the achievement of the APBN target in the first quarter was very good, but in the future what was prioritized was how to prevent activities being stopped and no layoffs.

He added, by maintaining upstream oil and gas operations, including in various drilling, maintenance, and other operational programs, the sector was expected to continue to drive the national economy, create a multiplier effect for the regional economy and supporting industries, and maintain the availability of employment.

"Like the blood that continues to flow, the upstream oil and gas industry is expected to continue to drive the pulse of the Indonesian economy," Dwi said.

Meanwhile, SKK Migas Deputy for Operations Julius Wiratno said that until now the commitment of the Cooperation Contract Contractors (KKKS) to achieve the production target is still maintained. From the 1st quarter of 2020 data shows that, for oil production, 7 KKS Contractors exceeded the National Budget target and 8 KKKS exceeded the technical targets in the 2020 Work Plan and Budget. Whereas for gas distribution 5 KKS Contractors were able to exceed the National Budget target and 12 KKS Contractors exceeded the technical target Work Plan and Budget 2020.

SKK Migas has sent a letter of appreciation for KKKS who achieved the target in 2019 and the first quarter of 2020, as well as a warning letter for KKKS that did not reach the target in the first quarter of 2020. In that letter, SKK Migas also submitted input and recommendations for each KKS Contractor based on monitoring the implementation of the Work Plan and Budget and other monitoring so that in the second quarter of 2020 until the end of the year, KKKS who have not yet reached the target can implement the SKK Migas recommendations and those who achieve the target can look for operational ways and innovations so that the achievements obtained can be further improved.

In addition to the operational aspects, SKK Migas through the letter reminded the PSC Contractors to implement the principles of work safety and environmental protection so that the incident rate in the second quarter and until the end of 2020 can be maintained at the specified level.

On Target

Meanwhile, SKK Migas also seeks to prevent the four strategic upstream oil and gas projects from being late in operation despite the Covid-19 pandemic. All projects are targeted to be completed in stages until 2027. SKK Migas Head Dwi Soetjipto said, although the Covid-19 pandemic affected the progress of upstream oil and gas work, the oil and gas contractor working on the four national strategic projects was still committed to completing the project on time.

Jambaran-Tiung Biru Field (JTB)

These four projects are the development of the Train-3 Tangguh Refinery, Jambaran-Tiung Biru Field (JTB), the Masela Block, and the Indonesia Deepwater Development (IDD) Project. One project that is quite constrained by Covid-19 is the development of the Abadi Field, the Masela Block.

Inpex Corporation

"But we are still discussing with Inpex so that onstream (operations) will not retreat from 2027," Dwi Soetjipto said.

Dwi Soetjipto explained the existence of a pandemic hampered the work on the gas project field survey. In order to prevent the spread of Covid-19 from mobility restrictions, a field survey for the Abadi project could not be carried out.

"Maybe there will be a speedup in the coming year," he said.

In addition, a pandemic that suppressed energy demand and global oil prices, Dwi said also made marketing gas that would later be produced from the Abadi Project difficult.

"First of all, what is still constrained is that prospective buyers are still waiting and seeing," he said.

In fact, a commitment to purchase gas is needed so that the Abadi Project can reach the final investment decision / FID stage which is targeted by the end of 2021. So far, Inpex has just obtained 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 FID can be achieved. Constraints due to the Covid-19 pandemic, also experienced by the Train-3 and Jambaran-Tiung Biru Refinery Project.

"But the Train-3 Tangguh Refinery Project will still be on stream (operation) in 2021. Then, JTB is still committed to onstream in 2021," he said.

While the Jambaran-Tiung Biru Project works until the end of March, still referring to SKK Migas data, it still reached 57.91% of the target of 58.17%. So that the project's operating schedule is expected to be slightly delayed from initially the third quarter of 2021 to the fourth quarter of the same year.

The US $ 1.53 billion projects will produce 190 million cubic feet of gas per day / mmscfd. Pertamina EP Cepu President Director Jamsaton Nababan once revealed that the JTB Project was a little late compared to the schedule. However, this delay range is still fairly reasonable and can still be pursued.

It has prepared a number of strategies to pursue this delay. In April-May, he was optimistic that he could return the JTB Project's progress according to plan. The investment value of these four national strategic projects reaches the US $ 37.21 billion. While the additional oil production is 65 thousand BPD and 3,484 mmscfd of gas.

Investor Daily, Page-9, Monday, May 4, 2020

PEPC Pursues JTB Production Target in July 2021

PT Pertamina EP Cepu (PEPC) stated that the progress of the Jambaran-Tiung Biru Field Gas (JTB) Project Development project has now reached 56.42%. The project is targeted to be productive in July 2021 according to plan.

the Jambaran-Tiung Biru Field Gas (JTB)

The four-well drilling projects, 6.6 km of collecting pipe construction, the construction of the Gas Processing Facility (GPF). In addition, work on a fluid pipeline connected to the Banyu Urip Field production facility, work on a gas sales pipeline along 11.3 km, construction of a gas sales measurement station, and construction of infrastructure and supporting operations such as offices, warehouses, workshops, houses of worship, and housing.

The JTB Drilling Campaign starts on September 17, 2019, using a rig owned by PT Pertamina Drilling Services Indonesia (PDSI), which has advanced walking rig technology. The rig can shift from one well to another without having to be laid down, thereby reducing the duration of the drilling. Drilling works include 5 new wells and 1 existing well to produce 315 MMSCFD of raw gas. The work involved 42 contractors, all under the control of the country's best sons and daughters.

At present, the entire Drilling Campaign series at JTB has completed 3 wells, so it is expected to be completed by the end of 2020 and ready to flow gas to the Gas Processing Facility in the first quarter of 2021, according to the Government's target. In carrying out its operations, PEPC is committed to always upholds safety, occupational health and environmental protection standards.

Specifically for mitigating the spread of COVID-19, a number of preventive measures have been taken as outlined in the Precautionary Procedure for Spread of COVID-19, which must be followed by all workers involved.

Investor Daily, Page-9, Saturday, April 11, 2020

First Quarter, Pertamina Oil and Gas Production Increases Slightly

PT Pertamina (Persero) recorded oil and gas production until the first quarter of this year of 919 thousand barrels of oil equivalent per day (barrel oil equivalent per day / boepd), up slightly compared to the realization of the same period last year of 901 thousand boepd. This year, Pertamina targets oil and gas production of 923 thousand boepd.

Pertamina Upstream Director Dharmawan Samsu said oil and gas production in the first quarter of 2020 was recorded at 919 thousand boepd, an increase of 2% compared to last year's average production. Specifically, oil production averaged 421 thousand Barrels Per Day (BPD), while gas production averaged 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 (work plan and company budget). Until now, it has reached 99% of the target, "he said.

Dharmawan added, the positive performance of the company's oil and gas fields abroad. Pertamina's subsidiary, PT Pertamina International EP (PIEP) managed to contribute oil and gas production by 156 thousand boepd or 103% of the target for the first three months of 2020.

"The increase in production is mainly from field performance in Algeria," he added.

This year, Pertamina set oil and gas production targets of 923 thousand boepd which consisted of oil production of 430 thousand BPD and 2,857 gas mmscfd. When compared with this year's target, the company's oil production realization of 421 thousand BPD was only 97.9 percent of the target. While Pertamina's gas production is around 1% above the target. Dharmawan admitted that the 923 thousand boepd target was very challenging. To ensure oil and gas production targets can be achieved, he will ensure the drilling plan is carried out according to schedule.

"The production target of 923 thousand boepd is very heavy, because we have to make sure that drilling cannot be late," he said.

Pertamina's oil and gas production this year is planned to be obtained from the contribution of oil and gas production from Pertamina's upstream operations in the country amounting to 765 thousand boepd and 158 thousand boepd abroad. From foreign assets, oil production is targeted to increase slightly from 105 thousand BPD to 107 thousand BPD, and gas production will increase from 276 mmscfd to 298 mmscfd. While from the domestic oil and gas block, oil production is targeted at 323 thousand BPD 2,559 mmscfd gas.

For information, the company's oil and gas block assets in the country are managed through its subsidiaries, PT Pertamina Hulu Energi (PHE), PT Pertamina Hulu Indonesia (PHI), PT Pertamina EP, and PT Pertamina EP Cepu (PEPC). PHE targets oil production of 84 thousand BPD and 822 mmscfd of gas. While Pertamina EP set a target of oil production of 85 thousand BPD and 965 mmscfd of gas.

PT Pertamina EP Cepu (PEPC)

PHE plans a number of activities to achieve this year's target, namely drilling 51 development wells and 6 exploration wells, as well 50 wells. While Pertamina EP will drill 108 development wells and 10 exploration wells in 2020.

Anticipate a Global Situation

To anticipate the impact of the decline in world crude oil prices coupled with the Covid-19 pandemic, Dharmawan said, Pertamina take anticipatory steps by implementing a business continuity plan while continuing to conduct in-depth evaluations for prioritizing work plans, operating costs, and investments. This is in line with corporate policies to optimize financing.

"Pertamina continues to maintain the upstream investment level to meet national oil and gas needs, both in production and lifting, but with some adjustments based on priority scale so that the economics of the project can also be achieved," Dharmawan explained.

Pertamina also continues to monitor the development of the global situation, mainly the world price of crude oil, the rupiah exchange rate against the dollar, and the impact of the Covid-19 pandemic. Referring to Pertamina's data, of the total investment budget of the company this year of US $ 7.8 billion, most of it is allocated for upstream oil and gas investment amounting to US $ 3.7 billion. This upstream investment budget is up compared to last year.

ENI Block

Previously, Dharmawan revealed, the increase in upstream investment was partly because the development of the Merakes Field, East Sepinggan Block will begin in 2020. In this block, for information, Pertamina through PHE has a participating interest / PI of 15%. While the operator of this block is ENI. ENI was approved by the plan of development / POD in April last year.

Under the POD, ENI plans to drill six subsea wells and build an underwater pipeline system that will be connected to the floating production facility / FPU Jangkrik block in Muara Bakau Block. Referring to SKK Migas data, the Merakes Field is targeted to start operating in 2021. The peak of field production is estimated to reach 60,305 boepd.

Investor Daily, Page-9, Wednesday, April 8, 2020

The Tiung Biru Jambaran Project Speeded Up

PT Pertamina EP Cepu (PEPC) decided to move fabrication into the country in order to ensure the continuation of the Jambaran Tiung Biru (JTB) project when the coronavirus spread in a number of countries.

Jamsaton Nababan

PEPC Managing Director Jamsaton Nababan said a number of equipment factories were scattered in a number of countries affected by the coronavirus. Even one part factory is located in Wuhan. For this reason, the move to the fabrication process has been carried out.

Covid-19

"There is one part fabricated in Wuhan. But we have taken a strategic step to move the fabrication to Indonesia with the permission of the licensor, "he said.

PT Pertamina EP Cepu (PEPC) 

By moving part of the fabrication process into the country, Jamsaton hopes that the potential for material delays can be minimized. PEPC also decided to use global scale inspector staff. 

    The Engineering Procurement and Construction (EPC) Contractor of the JTB Gas Processing Facilities (GPF), PT Rekayasa Industri (Rekind) claims, coordination has been ongoing. Managing Director of Rekind Yanuar Budinorman said coordination continues to be carried out in order to maintain the continuity of the project.

the Jambaran Tiung Biru (JTB) project 

"Long lead items have been purchased, are being processed in fabrication, large equipment is already on site. The project coordination is very good," he said.

Yanuar added that with a number of efforts, his side was optimistic that the JTB project's onstream target in July 2021 could be achieved.

"Construction has been delayed a little because of rain and recently the corona pandemic, we started to rebound in May," he explained.

For the sake of smoothing the acceleration plan, Rekind is ready to increase the workforce to 1,000 people in the next two months. Jamsaton added the acceleration of the project can be done considering that around 60% of material needs are already on site.

"From the drilling target of six wells, we have completed drilling of four wells," he said.

In addition, the construction of a 5-kilometer pipeline is underway and is targeted for completion in April 2021.

"For gas facilities, it is 54.94%. Until December the target is 94% for GPF, "said Jamsaton.

The Jambung Tiung Biru Project is a national strategic project with a total investment of US $ 1.53 billion.

Kontan, Page-14, Friday, March 20, 2020

JTB Project on Target

PT Pertamina EP Cepu (PEPC) and PT Rekayasa Industries believe the US $ 1.53 billion Jambaran-Tiung Biru (JTB) project could be streamed in July 2021 despite being delayed. The JBT project, a national strategic project, has a gas production capacity of 192 million cubic feet per day (MMscfd), which will supply gas to consumers using the Gresik-Semarang gas pipeline. Later, gas supply from the JTb project is expected to overcome the gas supply deficit in 19 industrial sectors in Central and East Java.

Jambaran-Tiung Biru (JTB)

Based on data revealed by Pertamina EP Cepu (PEPC), the progress of the JTB Gas Processing Facility Procurement (EPC) Gas Processing Facility as of March 18, 2020 recorded only 54.94% of the planned 55.35%.

Jamsaton Nababan

"Seeing the progress achieved and the remaining time, we believe the JTB project target for on-stream can be achieved," said Jamsaton Nababan, Director of Pertamina EP Cepu (PEPC).

Pertamina EP Cepu (PEPC)

He revealed that the 0.4% delay was due to weather factors which had become an obstacle in the project. However, a number of strategies have been prepared, one of which is by bringing in automatic welding machines that can be used indoors so that the project can be carried out.

In addition, it has mobilized a number of workers to work at night shifts. Meanwhile, in the next 2 months, about 500-1,000 workers will be added. It will also use a number of water pumps to suck up rainwater so as not to cause flooding on the project site.

"The addition of workers was in accordance with the initial schedule plan, so it was not due to minus 0.4. That's normal in the project category, indeed the plan will increase. "

Meanwhile, when the corona outbreak broke out, Jamsaton made sure it would not affect the amount of material and equipment needed for the project. According to him, most of the company's orders have been made before the outbreak of the virus.

"In several other countries, there are also corona issues, we have taken steps, that our inspectors use inspectors worldwide. So, in general, there are no more issues watching in these countries, "he explained.

On the other hand, Managing Director of Industrial Engineering Yanuar Budinorman said that the coordination in the work of the JTB project with Pertamina EP Cepu (PEPC) at this time was very good. In addition, all workers who were empowered in the project were all Indonesian citizens so that they were not affected by the issue of the spread of the coronavirus.

Japan Gas Corporation (JGC)

The JTB gas field development project has a project value of US $ 1.53 billion. The value of the EPC GPF contract (Indonesian Consortium-JGC-JCC Consortium) is the US $ 983 million.

Head of SKK Migas Dwi Soetjipto previously stressed that the JTB Field was the only hope for supplying the largest gas supply in East Java so that the JTB Project had to be on-stream in July 2021.

Bisnis Indonesia, Page-9, Friday, March 20, 2020

Commitment to the Jambaran-Tiung Biru On-Stream Project July 2021

Towards the end of the first quarter of 2020, PT Pertamina EP Cepu (PEPC) and PT Rekayasa Industri (REKIND) reaffirmed their commitment to maintain the positive performance of the Jambaran - Tiung Biru Gas Field Development Project (JTB) for on-stream targets in July 2021. 

the Jambaran - Tiung Biru Gas Field

    Accelerating efforts work has been done to encourage the progress of the GPF-JTB EPC Project which as of March 18 2020 recorded 54.94% progress from the 55.35% plan, resulting in a variance of minus 0.41%.

Covid-19

This decline occurred because of challenges that have hampered construction work, one of which is high rainfall. In 2019, the actual progress is always ahead of 0.5% and plan. At present, another challenge faced is the Covid-19 pandemic which has caused lock-down conditions in several countries where the fabrication of equipment and materials such as Italy, Korea, and China.

"This has the potential to have an impact on the project equipment and material procurement process," explained REKIND President Director, Yanuar Budinorman.

PT Pertamina EP Cepu (PEPC) 

Anticipating this, PEPC and REKIND jointly coordinated intensively with relevant vendors in an effort to maintain the delivery of equipment and materials not to affect the on-stream gas target in July 2021, including using resident inspectors abroad to supervise fabrication.

In his direction on the March 7, 2020 field visit, SKK Migas Head Dwi Soetjipto stressed that the JTB Field was the only hope for supplying the largest gas in East Java so the JTB Project had to be onstream in July 2021. For this reason, it was hoped that PEPC and the EPC contractor, the Consortium REKIND-JGC-JGI Indonesia and SKK Migas work hand in hand in executing this JTB Project.

Japan Gas Corporation (JGC)

"Implementation of the construction of the JTB Project as a National Strategic Project is a mandate that is not easy, however, since the inaugural Design of the EPC GPF JTB on January 4, 2019, REKIND is committed to always showing the best professionalism and performance. With solid collaboration with PEPC, REKIND is optimistic that the onstream Iuli 2021 target will be achieved, "he stressed.

PEPC and REKIND continue to prioritize work safety and work on strategies to accelerate work both in terms of the adequacy and competence of human resources, reliable management, and project supervision. This strategy is implemented, among others, by placing under one roof the entire Project team, both from PEPC and REKIND, so that coordination, review processes, and approvals can be carried out quickly and effectively.

Bhirawa, Page-8, Friday, March 20, 2020