Heavy Duty Runway Lifting

 

Improving the performance of upstream oil and gas is still homework that needs to be completed by industry players in the country, in line with the low lifting achievement by some contractors.

Blogger Agus Purnomo in SKK Migas

Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), out of 15 large cooperation contract (KKKS) contractors that produce oil and condensate, eight companies are unable to meet the production targets ready for a sale (lifting) in the work program and budget (work program and budget / WP & B) 2020.

PT Pertamina EP

PT Pertamina EP, for example, realized lifting reached 93.5% of the WP&B. A similar condition occurred in Conocophillips (Grissik) Ltd with a lifting achievement of 92.2% from WP&B. 

Blogger Agus Purnomo In Petronas Carigali Ketapang

    Meanwhile, Petronas Carigali (Ketapang) Ltd was only able to record a lifting of 76.8% of the target. On the other hand, the KKKS with the largest oil production and lifting, ExxonMobil Cepu Limited (EMCL), is still able to meet the target in 2020 with the realization of lifting reaching 217,637 barrels per day (bpd) from the Cepu Block.

the Cepu Block and Banyu urip Field

This achievement came from the Banyu Urip field production which had reached a peak production of 230,000 bpd. In gas lifting, out of 15 large KKKS, there are also eight companies that are unable to meet the target according to WP&B, namely Conocophillips (Grissik) Ltd, Pertamina EP, Eni Muara Bakau B.V, and Medco E&P Natuna. 

Blogger Agus Purnomo In PHE-WMO

    Then, other contractors who failed to reach the target were Pertamina Hulu Energi West Madura Offshore (PHE-WMO), PT Pertamina Hulu Energi Jambi Merang, Husky-CNOOC Madura Ltd (HCML), and Pearl Oil (Sebuku) Ltd.

Deputy for Operations of SKK Migas, Julius Wiratno explained that his party was preparing a warning or warning for KKKS that did not reach the target in accordance with the deal.

"For the 2020 performance, a 'love letter' is currently being drafted, this week it is [sent]," he said.

He emphasized that the KKKS could get sanctions for not being able to achieve the target. Sanctions can be in the form of tightening KKKS spending until the KKKS work plans and budgets are not approved.

"There are also those whose cost recovery is not approved if it is not in accordance with the initial agreement," he said.

He also highlighted a number of subsidiaries of PT Pertamina (Persero) that have not been able to meet the lifting target last year. Julius assessed that this was due to economic problems in the field. However, SKK Migas and Pertamina have made an agreement to improve performance this year. 

    Previously, the President Director of PT Pertamina Hulu Energi, Budiman Parhusip, said that Pertamina has challenges with a high decline rate due to managing old fields. However, his party has prepared a number of contracts related to the drilling program to optimize lifting.

"We hope that the full cooperation will run smoothly," he said.

Meanwhile, Pertamina is planned to manage around 60% of the oil and gas fields in Indonesia. Currently, about 40% are still managed by this state-owned company. With this projection, the government also has high hopes for Pertamina in achieving the oil lifting target of 1 million BPD. Meanwhile, the government is deemed necessary to intervene in the decline in Pertamina's performance in the national upstream oil and gas sector.

Trisakti University lecturer Pri Agung Rakhmanto explained that the main factor for Pertamina's decline in production last year was due to the economy in the field plus the pressure of the Covid-19 pandemic. According to him, old fields have an effect on the decline in investment and Pertamina's business activities. Meanwhile, the Covid-19 pandemic has resulted in limited operational activities.

"Pertamina is now the backbone of national production with more and more blocks being transferred to it by mistake. The government should be able to provide more support, "he said.

He suggested that the cooperation contract should include fiscal aspects affected by the latest economic conditions. Meanwhile, Executive Director of the National Oil and Gas Companies Association (Aspermigas) Moshe Rizal said that the fall in oil prices coupled with a decrease in demand due to the Covid-19 pandemic has indeed put heavy pressure on KKKS financially. 

    In addition, operational activities are hampered by large-scale social restrictions (PSBB) even though the budget is available. As a result, project execution is hampered, including maintenance operations, workovers, and other activities that can help maintain production levels.

"For this year, everything depends on how fast we recover economically and how fast the distribution of vaccines is so that it can reduce the infection rate," he said.

The President Joko Widodo

PRICE OF POWER PLANT GAS

President Joko Widodo has set the price of natural gas for power plants at a maximum of US $ 6 per MMBtu. The regulation is in Presidential Regulation Number 121 of 2020 concerning Amendments to Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing which was promulgated on December 29, 2020. In Article 4 Paragraph 3 it is stated that the determination of certain natural gas prices can be given to natural gas users. engaged in the supply of electricity for the public interest. 

This Presidential Regulation is in line with the Minister of Energy and Mineral Resources Regulation Number 10 of 2020 concerning Amendments to the Regulation of the Minister of Energy and Mineral Resources Number 45 of 2017 concerning Utilization of Natural Gas for Power Plants. This regulation confirms the adjustment of the gas price for PT PLN (Persero) 's needs to be the US $ 6 per MMBtu.

Bisnis Indonesia, Page-4, Thursday, Jan 7, 2021

Support 70% of National Oil Production, Pertamina Must Be More Aggressive

 

With the transfer of management of the Rokan Block next year, PT Pertamina (Persero) will control 70% of the total national oil production. For this reason, Pertamina must be more aggressive in developing its oil and gas blocks in order to keep national oil production from falling significantly. Referring to Pertamina's data, as of last August, the realization of oil production from domestic assets was recorded at 314 thousand barrels per day (BPD). 

the Rokan Block

When compared to the realization of national oil production in the same period of 706.9 thousand BPD, Pertamina's oil production portion is around 44.41%. With reference to the current Rokan Block oil production at 176,398 BPD, the company's oil production will increase to the level of 490 thousand BPD or about 70% of the national oil production of 706 thousand BPD.

Trisakti University Energy Observer Pri Agung Rakhmanto said, with the increasing number of national oil and gas blocks controlled, the number of operational activities that Pertamina is working on must be more massive. This needs to be done so that national oil production does not continue to decline.

"We have to allocate a lot of investment for the upstream business, both for exploration, development, EOR (enhanced oil recovery)," said Pri Agung.

This is because Pertamina's restructuring or company reorganization does not guarantee the improvement in the company's upstream operation performance. However, this restructuring should be used by Pertamina as an instrument to achieve corporate targets and maintain national oil production.

"In the context of maintaining national production, it means that it must be used as an instrument to facilitate the execution of more massive and aggressive upstream programs and investments," explained Pri Agung.

Dwi Soetjipto

Dwi Soetjipto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), also expressed a similar sentiment. The establishment of an upstream sub-holding by Pertamina should be able to improve the company's performance, especially in increasing national oil and gas production.

Blogger Agus Purnomo in SKK Migas

"We hope Pertamina will conduct a very aggressive and massive exploration in the future because the potential is still large," he said.

Pertamina's contribution to national oil production can be seen from at least six of the company's oil and gas blocks which are still on the list of the 10 largest oil producers in Indonesia. Even some of them, such as assets under PT Pertamina EP and the Mahakam Block, are the cornerstone of national oil production. Not to mention the Rokan Block as the second-largest oil producer whose management will shift to Pertamina next year.

"So we can see how we really hope that Pertamina plays a better role in the future," said Dwi.

In maintaining national oil production, Pri Agung added, it is not unlawful for the government to provide incentives for Pertamina, such as improvements to production sharing (split), tax relief, investment credit, accelerated depreciation, and others. However, this incentive must be balanced with strict requirements, for example, the determination of targets for drilling exploration and development wells, implementing EOR, the amount of oil and gas production, and adding oil and gas reserves.

"Any incentives should be given to Pertamina, as long as they are comparable to performance achievements. So, incentives or rewards are conditional and based on the achievement of measurable performance targets, "he explained.

Investor Daily, Page-10, Monday, Nov 2, 2020

Bekasi Oil and Gas Company was Sued

YAR Law Firm Attorneys at Law as the attorney for Foster Oil & Energy Pte Ltd (plaintiff) filed a lawsuit of default against the Bekasi City Oil and Gas Company (defendant) at the Bekasi District Court with registration number 418 / Pdt.G / 2020 / PN.Bks dated 29 September 2020. In the press release received by Media Indonesia, there are several points of concern.

First, the plaintiff and defendant made and agreed on a joint operating agreement for the management of Jatinegara Field on January 13, 2011, which was amended three times. Therefore, both the memorandum of understanding and the joint operation agreement, including the amendments, must be obeyed by the parties.

Second, the defendant did not comply with the contents of the joint operating agreement, including the amendments, but through its main director took several extreme actions, in the form of terminating or canceling it unilaterally which was only submitted through Letter Number 049 / B / PD.MGS / IX / 2020 dated 21 September 2020 regarding JOA Cancellation and Letter Number 088 / SRR & Partners / 09/2020 dated September 22, 2020.

In addition to the defendant's unilateral action, the defendant arbitrarily dismissed the existing KSO general manager and appointed himself as the Acting Officer of the General Manager KSO PT Pertamina EP - PD Migas Bekasi City/defendant as contained in PD Migas Letter Number 054 / B / PD.MGS / IX / 2020 regarding the Termination of GM KSO dated 22 September 2020 and PD Migas Letter Number 055 / B / PD.MGS / IX / 2020 regarding Announcement dated 22 September 2020.

In fact, it is clear that it has been stipulated in the joint operation agreement including the amendments that it is not permissible to terminate the existing agreement unilaterally and the replacement of the general manager of the KSO in implementing the KSO as the head of the operational team is actually the agreement between the plaintiff and the defendant.

Third, the defendant's actions did not create security and comfort for companies that invested their business capital in Indonesia in the case of Foster Oil and Energy Pte Ltd because the legal interests were not guaranteed, which was an important thing the investment company was willing to invest in Indonesia.

Previously, VP legal & Relations Pertamina EP Cholid said that his party was not aware of the report of the Indonesian Corruption Eradication Society Coalition (Kompak) to the Corruption Eradication Commission (KPK) regarding alleged corruption committed by Foster Oil & Energy, a company originating from Singapore that helped management. Jatinegara Oil and Gas Field, Bekasi, West Java. Even so, he emphasized that Pertamina EP will investigate the allegations until they are finished.

Media Indonesia, Page-4, Thursday, Oct 15, 2020

Pertamina Focuses on Increasing Production

 

PT Pertamina (Persero) through its subsidiary continues to work on completing the work plan that has been launched, in order to increase the company's contribution to the achievement of national oil production.

In 2019, Pertamina's upstream contribution is around 41% of total national production, while this year it is targeted to increase to 49%. Furthermore, in 2021 Pertamina's contribution is expected to reach 60%, especially with the company's entry into the Rokan Block.

the Rokan Block

President Director of PT Pertamina EP Eko Agus Sardjono said that in facing the remainder of the 2020 period, the Pertamina subsidiary will focus on optimizing domestic gas absorption which is expected to be able to boost gas and condensate production.

"Apart from that, Pertamina EP also focuses on completing work plans for drilling exploration wells, seismic surveys, drilling development wells, workover, and well service so that the performance achievement at the end of the year can be achieved optimally," he said.

As of August 2020, Pertamina EP has realized 58 wells and 5 wells are underway, while the revised 2020 Corporate Budget Work Plan (RKAP) target is 79 wells. Meanwhile, 107 rework activities have been completed and 7 are in progress from the revised RKAP 2020 target of 192 activities. Realization of well maintenance and well intervention 2,103 activities have been completed from the revised 2020 RKAP target of 2,547 activities.

In addition, in August 2020 Pertamina EP has increased production through 4 development wells located in the work area of ​​Pertamina EP Asset 1, Asset 2, Asset 3, and Asset 5. With the additional production in August, overall Pertamina EP development drilling activities The 2020 Work Plan has succeeded in contributing 7,809 barrels of oil per day (bopd) and 5.6 MMscfd of gas to Pertamina EP's overall oil and gas production.

In accordance with the 2020 revised RKAP, until July 2020 Pertamina EP oil production reached 80.3 MBOPD or 99.6% of the target, and gas production was 866 MMscfd or 95% of the target. 

    Chief Executive Officer of PT Pertamina Hulu Energi (Subholdingupstream) Budiman Parhusip previously explained that the realization of Pertamina EP, which was still below the target, was caused by obstacles that arose during the Covid-19 pandemic and also low world oil prices. On the other hand, Pertamina will also disburse the US $ 80 million for drilling wells in the Rokan Block during the transition period which will start in August 2021.

President Director of Pertamina Hulu Rokan, RP Yudantoro, explained that during the transition period, the company will begin drilling as many as 44 wells in the Rokan Block. He said Pertamina Hulu Rokan (PHR) together with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) had determined the coordinates of the entire well being drilled.

Blogger Agus Purnomo in SKK Migas

Currently, his party is preparing a rig for the drilling process. Pertamina Hulu Rokan needs 5 units - 6 units of rigs for drilling in 2021. Later, the rig units will be provided by PT Pertamina Drilling Service Indonesia (PDSI).

"We drilled the US $ 1.5 million for each well — only US $ 2 million," he said.

PT Chevron Pacific Indonesia (CPI)

Next year, it is targeted that as many as 184 wells will be drilled to smooth the transition of the management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina. Yudantoro added that his party continues to strive to accelerate the transfer of exploration and exploitation data from the main fields so that they can immediately prepare for the drilling of 44 wells in the Rokan Block. Pertamina targets to carry out the drilling immediately after the transition from Chevron to PHR on August 9, 2021.

"PHR will ensure that drilling preparations from August to December 2021 can run smoothly, therefore intensive communication will be carried out with CPI so that the data transfer process, information procedures [SOP], and land preparation can run quickly, without significant obstacles," he explained.

In addition, Yudantoro continued, currently, the process is still being carried out, among others, the construction process of replacing a 364 km long trunk line that carries crude oil from the Rokan field to a storage tank in Dumai, which can then be used as a supply for product processing at the Pertamina Dumai Refinery.

ROKAN BLOCK TRANSITIONS

PHR, he said, is also preparing for the transition of Chevron workers who will later be empowered at PHR and at Pertamina in accordance with applicable regulations, such as workers in other management transfer blocks that Pertamina has previously handled.

"With the support of all stakeholders, we all hope that the transition in the Rokan Block can go well so that it can maintain oil and gas production to encourage national energy security and independence," he added.

The performance of a number of Pertamina's subsidiaries that were operators in several oil and gas blocks previously received the spotlight because they did not reach the set target. Based on SKK Migas data, as of June 2020, there were four Pertamina subsidiaries that did not reach the ready-made or lifting oil production target. In fact, so far, it is included in the top 15 cooperation contract companies (KKKS) as contributors to the national oil and gas lifting.

SKK Migas also asked Pertamina EP to optimize this year's work plan so that the production target is ready to sell or lifting can be achieved. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said that the optimization of Pertamina EP's work plan must be realized because the contribution of this optimization will greatly affect the achievement of the lifting target.

"We hope that Pertamina EP can realize all the programs planned in the remaining 2020," he said.

Trisakti University teaching staff, Pri Agung Rakhmanto, assessed that Pertamina EP's performance results have an important influence and role in the national lifting performance. This is because Pertamina EP's overall production is around 82,000 bpd. He considered that the weakening of oil prices and the Covid-19 pandemic affected the capability investment of a number of oil and gas companies and must implement efficiency so that currently optimization is very necessary.

"It is quite important, Pertamina EP's overall production is around 10% -12% of the total national lifting," he explained.

Bisnis Indonesia, Page-21, Wednesday, Sept 23, 2020

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

11 Agreement on Changes in Gas Prices Signed

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated 11 letters of agreement (LoA) to adjust industrial gas prices and electricity to the US $ 6 per million British thermal units / MMBTU re-signed.

SKK Migas recorded total gas volume according to the LoA of 231.18 billion British thermal units per day / BBTUD. Thus, the total volume of gas sold at US $ 6 per MMBTU according to government policy has now reached 564.63 BBTUD or 47.53% of the total volume of 1,188 BBTUD in the Minister of Energy and Mineral Resources Decree No. 89K / 2020 concerning Procedures for User Determination and Natural Gas Prices Certain in the Field of Industry.

The LoA was signed by six national gas producers, namely PT Pertamina EP, Kangean Energy Indonesia Ltd., PT Pertamina Hulu Energi (PHE) Jambi Merang, PT PHE Ogan Komering, PT PHE North Sumatra Offshore (NSO), and PT PHE West Madura Offshore (WMO) and partners.

Blogger Agus Purnomo in PHE-WMO

While buyers who signed this agreement were PT Pertamina Gas (Pertagas), PT Sumber Petrindo Perksana, PT Petrokimia Gresik, PT Bayu Buana Gemilang, PT Inti Alasindo Dwiguna, and PT PGN Tbk, PT Pertagas Niaga. Not only LoA, nine oil and gas producers have also signed a Side Letter of Production Sharing Contract (PSC). 

   These nine companies are PT Pertamina EP, PT PHE NSO, PT PHE Ogan Komering, PT PHE Jambi Merang, PT PHE Offshore South East Sumatra (OSES), EMP Bentu Limited, Kangean Energy Indonesia Ltd., PT Pertamina Hulu Mahakam, and Minarak Brantas Gas Inc.

"This signing was carried out in order to provide legal certainty and investment related to the adjustment of gas prices after the issuance of a number of regulations from the Ministry of Energy and Mineral Resources," Head of SKK Migas Dwi Soetjipto.

The Side Letter of PSC explains the profit-sharing adjustment between SKK Migas and oil and gas producers by using a provisional entitlement to the application of natural gas prices determined by the Minister of Energy and Mineral Resources. This calculation is carried out through a mechanism to reduce the share of the country on a monthly basis to maintain the revenue share of oil and gas companies.

Whereas the LoA is a continuation of a previously signed agreement between the seller and buyer of natural gas. The essence of the agreement stipulated in the LoA includes volume, initial gas price, gas price adjustment, and implementation period.

"By signing this side letter of PSC and LoA, we hope that oil and gas producers can continue to increase their investment in Indonesia and maintain the national gas production target," Dwi said.

Chalid Said Salim

PT Pertamina EP President Director Chalid Said Salim appreciated SKK Migas for providing investment certainty in the upstream oil and gas sector through the signing of the Side Letter of PSC and LoA.

"We certainly appreciate this step because it will encourage increased investment in upstream oil and gas in the future. In the short term, Pertamina EP and SKK Migas will optimize the program this year so that it is efficient as the capital stepped up in the following year, "Chalid said.  

 Investor Daily, Page-10, Friday, June 5, 2020

SKK Migas Speeds Up Operation Schedule of the Upstream Oil and Gas Project

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) accelerates the operational schedule of the upstream oil and gas project which is estimated to be completed this year. 

   For example, the Meliwis project managed by Ophir Indonesia (Madura Offshore). The project, which will produce 20 mmscfd of gas production, is targeted to be completed in July this year.

Then the construction of the Bambu Besar project by PT Pertamina EP and reactivation of the PHE-12 Platform by PHE-WMO and the construction of the Sembakung gas compressor facility by Pertamina EP.

Blogger Agus Purnomo in PHE-WMO

The implementation of these projects was originally targeted to be completed in 2021, but this project is claimed to be able to be completed this year. The Bambu Besar project will produce 3 mmscfd of gas (non-asso) now in the EPC process and will be streamed in the third quarter of 2020.

While Reactivation Platform-12 is an activity to improve the platform which had tilted in 2017, to produce oil production of 3,000 barrels per day (BOPD). It is expected that the project can be realized by the end of 2020. Likewise, the Sembakung compressor project will be completed by the end of 2020, and produce 2 mmscfd of gas.

SKK Migas and KKIG continue to conduct intensive coordination to ensure that the upstream oil and gas project can run well according to the schedule, said the Head of SKK Migas, Dwi Soetjipto.

According to him, the acceleration of a number of projects is a form of SKK Migas 'commitment to upstream activities and the success of SKK Migas' transformation. But certainly, the completion of a number of oil and gas projects will have an impact on increasing national oil and gas production and lifting.

Kontan, Page-12, Thursday, June 4, 2020

SKK Migas Accelerates Three Oil and Gas Projects

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) accelerated the operational schedule of the three national upstream oil and gas projects to this year at the time of mobility restrictions due to Covid-19. The three projects will increase oil production by 3,000 barrels per day and gas by 5 million cubic feet per day / MMSCFD.

SKK Migas Deputy for Operations Julius Wiratno said the three oil and gas projects were the development of the Big Bamboo Project and the construction of the Sembakung gas compressor facility by PT Pertamina EP, and the reactivation of the PHE-12 platform by PT Pertamina Hulu Energi West Madura Offshore (PHE-WMO). These three projects should only be completed next year.

Blogger Agus Purnomo in PHE-WMO

"But these projects can be completed by 2020," he said.

He explained the Big Bamboo Block Project would produce gas of 3 mmscfd. At present, the project is still in the stage of working on the engineering, procurement, and construction / EPC package and will go on stream in the third quarter of this year. While reactivation of the PHE-12 platform is an improvement activity that was skewed in 2017 ago.

This project is targeted to be realized later this year and can produce oil of 3,000 BPD. Furthermore, the Sembakung compressor project is also scheduled to be completed by the end of 2020 and will produce 2 MMSCFD of gas.

"The success in accelerating the realization of the upstream oil and gas project when the mobility restrictions in the context of Covid-19 mitigation shows the determination and enthusiasm of the upstream oil and gas people to be able to implement the program agreed in the Work Program and Budget (WP&B) 2020 optimally and efficiently," said Julius.

Julius also revealed that the Meliwis Block Project undertaken by Ophir Indonesia (Madura Offshore) will be completed and start operating this July. This project will produce a gas of 20 MMSCFD.

Dwi Soetjipto

The Head of SKK Migas, Dwi Soetjipto appreciated the innovations made by his ranks with the cooperation contract contractors (KKKS) so as to produce an acceleration of projects in the field. He continues to coordinate with KKKS to ensure that the upstream oil and gas project can run well according to schedule.

"During the Covid-19 outbreak, SKK Migas was able to accelerate the implementation of the completion of three projects," he said.

According to him, if the upstream oil and gas project can run well, there will be an increase in the production and production of oil and gas lifting. In addition, the oil and gas project is also able to move the regional economy and create jobs, especially the community around the project site.

"This is in line with the Government's focus on being able to encourage the economy to move during the Covid-19 outbreak," he added.

Dwi acknowledged the Covid-19 outbreak and the still low oil prices were a real test for efforts to realize the oil production target of 1 million BPD in 2030. One of the important keys to achieving the target was how to keep the project going well on schedule.

The success in accelerating the project was due to the successful implementation of the 2 pillars of the SKK Migas transformation, namely the Integrated Operation Center (IOC) and One Door Service Policy (ODSP).

Previously, four oil and gas projects were operating. First, the Grati Pressure Lowering Project in East Java was undertaken by Ophir Indonesia (Sampang) Pty and produced 30 MMSCFD of gas. Then, the development of the Randugunting Field by PT Pertamina Hulu Energi (PHE) Randugunting in Central Java provided additional production of 5 MMSCFD.

Furthermore, the Buntal-5 Field by Medco E&P Natuna Ltd provides additional gas production of 45 MMSCFD. Finally, Sembakung Power Plant by PT Pertamina EP with a capacity of 4 MW to support upstream oil and gas operations in the East Kalimantan region.

Blogger Agus Purnomo in Petronas Carigali Ketapang II Ltd.

In 2020, SKK Migas targets 11 upstream oil and gas projects to be onstream. Another project scheduled to operate this year is Bukit Tua Phase-3 with an estimated production of 31.5 MMSCFD by Petronas Carigali Ketapang II Ltd. planned to begin operations in the first quarter of last year.

Blogger Agus Purnomo in Petronas Carigali Ketapang II Ltd.

Furthermore, besides Meliwis, two projects will operate in the second quarter, namely the 15 MMSCFD Betung Compressor by PT Pertamina EP, Malacca Strait Phase-1 3,000 BPH by EMP Malacca Strait.

In the third quarter of 2020, there were three oil and gas projects scheduled to operate. These three projects are the 2.4 mmscfd Beauty Project by PT Sele Raya Belida, the LP-MP SKG-19 150 MMSCFD Compressor by PT Pertamina EP, and Peciko 8A 8 MMSCFD by PT Pertamina Hulu Mahakam.

Finally, the Merakes Project by ENI Indonesia is scheduled to begin production in the fourth quarter of 2020. The peak production of the Merakes Field is estimated to reach 60,305 barrels of oil equivalent per day / BOEPD. In 2020, national oil and gas lifting was set at 1.95 million BOEPD, up slightly from last year's 1.8 million boepd realization. 

the Merakes Project by ENI Indonesia

    Specifically, oil production rose to 755 thousand BPH from the realization of 746 thousand BPH, and gas to 1.19 million BOEPD from the realization of 1.06 million BOEPD.

Investor Daily, Page-10, Thursday, June 4, 2020

SKK Migas Seeks 12 Oil and Gas Projects This Year is Not Delayed

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) seeks to prevent 12 oil and gas projects scheduled to start production this year due to the widespread of the Corona Virus.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said that the Covid-19 pandemic, which was followed by a call for the community to remain at home, made the oil and gas operational schedule for the project shifted from the plan. From his observation, there is one oil and gas project which has the potential to be delayed from this year's operation to next year.

"But we are trying to minimize the shift. We will inform you more fully in mid-April, "he said.

SKK Migas

SKK Migas Deputy for Operations Julius Wiratno added that the oil and gas project development has the potential to be disrupted due to a change in crew and logistics supply. Nevertheless, he will continue to conduct intensive coordination to mitigate and carry out recovery plans for the oil and gas project. In fact, several projects he said had been operating.

Blogger Agus Purnomo in SKK Migas

"Of the 12 projects in 2020, there are already four projects that are on stream (starting operations), all according to schedule. Hopefully, everything can run smoothly, "he said.

Of these four projects, three are scheduled to be operational in the first quarter of 2020, namely the Grati Pressure Lowering Project with a capacity of 30 million cubic feet per day / mmscfd by Ophir Indonesia (Sampang) Pty Ltd, Buntal-5 45 mmscfd by Medco E&P Natuna Ltd, and Sembakung Power Plant by PT Pertamina EP.

While one more project was completed earlier than planned in the second quarter, the Randu Scissors Project with an estimated production of 3 mmscfd by PT Pertamina Hulu Energi Randu Gunting. In addition, there are eight other projects planned to operate this year.

Blogger Agus Purnomo in Petronas Carigali Ketapang

In the first quarter, Bukit Tua Phase-3 with an estimated production of 31.5 mmscfd by Petronas Carigali Ketapang II Ltd is planned to start operations. Furthermore, three projects will operate in the second quarter, namely 15 mmscfd Betung Compressors by PT Pertamina EP, Malacca Strait Phase-1 3,000 bpd by EMP Malacca Strait, and Meliwis 20 mmscfd by Ophir Indonesia (Madura Offshore) Pty Ltd.

In the third quarter of 2020, there were three oil and gas projects scheduled to operate. These three projects are the 2.4 mmscfd Beauty Project by PT Sele Raya Belida, the 150 mmscfd LP-MP Compressor by PT Pertamina EP, and Peciko 8A 8 mmscfd by PT Pertamina Hulu Mahakam. Finally, the Merakes Project by ENI Indonesia is scheduled to begin production in the fourth quarter of 2020. 

ENI

At the Merakes Field, ENI plans to drill six subsea wells and build an underwater pipeline system that will be connected to the floating cricket production facilities / Jangkrik FPU in Muara Bakau Block. The peak production of the Merakes Field is estimated to reach 60,305 barrels of oil equivalent per day / boepd.

the Merakes Field

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

Investor Daily, Page-9, Friday, March 27, 2020