Two Oil and Gas Blocks will Get Additional Incentives

 

The government will provide additional incentives for the two oil and gas blocks to boost national oil production. This step is expected to be able to provide additional production reserves of oil of 138 million barrels and gas of 1.7 trillion cubic feet.

Blogger Agus Purnomo in SKK Migas

Deputy for Planning for the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Jaffee Arizona Suardin said the massive depletion plan (MDP) is one of the strategies to pursue the oil production target of 1 million barrels per day (bpd) by 2030.

His party is looking for oil and gas potentials that can actually be produced, but require additional incentives to be realized. This step was taken, he explained, because the government is now increasingly flexible in providing incentives for upstream oil and gas industry players. Two oil and gas blocks are candidates for this additional incentive recipient.

"We have discussed it with the government, there has been the approval of additional incentives," he said in a discussion held by the Indonesian Association of Oil and Gas and Geothermal Drilling Entrepreneurs (APMI) in Jakarta.

According to him, the potential for MDP is not only in these two oil and gas blocks. His party is also evaluating three other MDPs with the potential for additional oil and gas reserves of up to more than 200 million barrels of oil equivalent.

"Then we will maximize the oil and gas block so that it returns to its former glory. That way per year, "said Jaffee.

PT Pertamina Hulu Energi (PHE) Vice President for Drilling and Well Intervention, Anto Sunaryanto, said that the existence of MDP has encouraged his party to be more massive in producing existing oil and gas reserves. Moreover, the government is increasingly open to additional incentive options for cooperation contract contractors (KKKS), including additional profit sharing (splits).

"With a better split, we can change more reserves to production," he said.

His party has submitted additional splits to the government for several oil and gas blocks that it manages and is still waiting for an answer. If the additional split decision from the government comes out this December or January next year, it will add more operational activities to be carried out.

"It's not official yet, but I heard the incentive has been approved," said Anto.

Previously, Director of Development and Production of PT Pertamina Hulu Energi (PHE) Taufik Aditiyawarman said additional splits were proposed for the Mahakam Block and the Sanga-Sanga Block. 

the Sanga-Sanga Block

    In addition, his party is still reviewing the proposed changes to the results of the East Kalimantan Block, Offshore North West Java (ONWJ), and Offshore Southeast Sumatra (OSES). 

    The five blocks are termination blocks managed by the company. Taufik had said that if he obtained an improvement in the profit-sharing, his party was committed to increasing the production of the oil and gas block.

"Of course, with a better economy, it will maximize the monetization of the potentials in the oil and gas block, increase reserves and future production," he said.

Pertamina signed the Production Sharing Contract / PSC for the Sanga-Sanga Block, East Kalimantan, and the OSES Block with a gross split scheme in 2018. Likewise, the Mahakam Block PSC amendment uses a cost recovery investment scheme. Meanwhile, the ONWJ Block contract was signed in 2017.

the ONWJ Block 

Referring to the contract, Pertamina's profit-sharing in the Sanga-Sanga Block is set at 49% for oil and 54% for gas. Meanwhile, in the East Kalimantan-Attaka Block, the company gets 61 percent for oil and 66 percent for gas. Furthermore, Pertamina's profit-sharing in the OSES Block is set at 68.5% for oil and 73.5% for gas.

the OSES Block

In the ONWJ Block, Pertamina previously obtained additional splits through ministerial discretion and changes to the gross split scheme. Initially, Pertamina's profit-sharing in this block was 57.5% for oil and 62.5% for gas. At the end of 2017, this revenue-sharing amount increased to 73.5% for oil and 81% for gas. The five termination blocks that Pertamina is working on are included in the list of 10 largest oil and gas producers in Indonesia.

Referring to SKK Migas data, the realization of oil lifting in the Mahakam Block was recorded at 29,361 barrels per day (bpd) of the APBN-Amendment target of 25 thousand bpd and gas of 558 million standard cubic feet per day / MMScfd) of the target of 510 Mmscfd.

Furthermore, the oil lifting of the ONWJ Block was 28,893 bpd from the target of 27,500 bpd and gas of 71 MMScfd from the target of 58 MMScfd. Next, the oil lifting of the OSES Block was 26,542 bpd from the target of 24,010 bpd, East Kalimantan 9,862 bpd from a target of 11,380 bpd, and Sanga-Sanga 12,515 bpd from a target of 12,030 bpd.

Investor Daily, Page-10, Friday, Nov 13, 2020

Split Change as Incentive is the Last Option

    The government is still evaluating PT Pertamina (Persero)'s proposal regarding the addition of profit sharing (splits) in several terminated oil and gas blocks. This is because the addition of a split is the last option as one of the upstream business incentives. 

Arifin Tasrif

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the addition of a split is not the only form of incentive for the upstream oil and gas business. His party assessed that several regulations regulate various forms of incentives to facilitate this upstream oil and gas business.

"We are currently conducting an evaluation," he said.

Dwi Soetjipto

    Dwi Soetjipto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), expressed the same thing. His party is still discussing the proposed additional split between Pertamina and the Ministry of Energy and Mineral Resources. One of them is being studied other incentive options that can replace the addition of this split.

Agus Purnomo in SKK Migas

"We are looking for efforts so that the additional split is the last alternative. So now we are reviewing it, "he said.

    Deputy for Planning of SKK Migas, Jaffee Suardin, revealed that the proposed additional split was through long discussions with his party. The reason is that this proposal was initiated by his party's efforts to seek oil and gas potential that could be developed but had not yet been included in Pertamina's long-term plan. 

    Furthermore, his party issued a recommendation to the Ministry of Energy and Mineral Resources. According to him, this additional split has the potential to generate oil and gas reserves for Indonesia without having to wait for exploration activities to be carried out. Not only that, but this step will also increase the economy of the oil and gas block for up to 10 years.

"What is currently being discussed can add approximately 120 million barrels of oil reserves and 1.7 trillion cubic feet of gas," said Jaffee.

    He said the additional split proposal did not end only for Pertamina. His party will continue to look for oil and gas potentials in other working areas that can be developed in the future.

"The point is, the more aggressive and efficient," he added.

    According to Taufik Aditiyawarman, Director of Development and Production of PT Pertamina Hulu Energi (PHE), the additional split is proposed for the Mahakam Block and the Sanga-Sanga Block. 

    In addition, his party is still reviewing the proposed changes to the results of the East Kalimantan Block, Offshore North West Java (ONWJ), and Offshore Southeast Sumatra (OSES). The five blocks are termination blocks managed by the company. Taufik had said that if he obtained an improvement in the profit-sharing, his party was committed to increasing the production of the oil and gas block.

"Of course, with a better economy, it will maximize the monetization of the potential in the oil and gas block, increase reserves and future production," he said.

the Mahakam Block

    Pertamina signed the Production Sharing Contract / PSC) Sanga-Sanga Block, East Kalimantan, and the OSES Block with the Gross split scheme in 2018. Likewise, the amendment to the Mahakam Block PSC uses a cost recovery investment scheme. The ONWJ Block contract was signed in 2017. 

    Referring to the contract, Pertamina's profit-sharing in the Sanga-Sanga Block is set at 49% for oil and 54% for gas. Meanwhile, in the East Kalimantan-Attaka Block, the company gets 61 percent for oil and 66 percent for gas. Furthermore, Pertamina's profit-sharing in the OSES Block is set at 68.5% for oil and 73.5% for gas.

    In the ONWJ Block, Pertamina previously obtained additional splits through ministerial discretion and changes to the gross split scheme. Initially, Pertamina's profit-sharing in this block was 57.5% for oil and 62.5% for gas. At the end of 2017, this revenue-sharing amount increased to 73.5% for oil and 81% for gas.

Investor Daily, Page-10, Saturday, Nov 7, 2020

Secure Energy Supply, Pertamina Continues Strategic Projects

 

PT Pertamina (Persero) ensures that investment in strategic projects carried out in all business lines will continue even during the Covid-19 pandemic. This is to secure the resilience and independence of national energy in the future. 

Fajriyah Usman

    Pertamina Vice President for Corporate Communication, Fajriyah Usman, said that despite the pressure from low oil prices, exchange rates and a decline in energy demand, Pertamina remains committed to carrying out its strategic projects.

"Primarily, projects that will have an impact on national oil and gas production and energy in the next few years," said Fajriyah Usman.

the Jambaran-Tiung Biru Project

In Upstream, the company is working on the Jambaran-Tiung Biru Project through its affiliate, PT Pertamina EP Cepu (PEPC). In this project, Pertamina has completed drilling two wells at Wellpad Jambaran Central and perforating wells without using a rig using the Smart Coiled Tubing Unit in Jambaran East.

"This project will produce an average of 192 MMscfd (million standard cubic feet per day) gas with a target of gas on stream in 2021," said Fajriyah.

In addition, the company is also working on the KLD Project through PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ). After the KLD-1 well drilling has been completed, the project is currently entering the KLD-3 well drilling stage. This project is targeted to increase reserves and production by December 2020.

In other business sectors, Pertamina also continues with refinery development and construction projects through PT Kilang Pertamina Internasional (KPI). One of them is the Balikpapan upgrade and capacity building project and the Lawe-Lawe Terminal, which is one of the company's largest projects worth US $ 6.5 billion. This project will increase refinery capacity, improve product quality, and reduce the cost of production of fuel oil (BBM).

"The Balikpapan Refinery project has reached 22.26% as of October 22, 2020, running with strict health protocols, in addition to supporting the economic recovery program because it absorbs more than 5,000 workers," She explained.

In addition, the company continues to improve the reliability of its fuel storage and distribution facilities. Pertamina is running a number of storage tank infrastructure projects at the BBM Terminal, LPG Terminal, and the DPPU, as well as carrying out maintenance on 280 vessels. 

    This year, Pertamina has budgeted an investment fund of US $ 7.8 billion. Most of this investment fund was allocated for the upstream oil and gas sector amounting to the US $ 3.7 billion. In addition, the investment budget for refinery projects is the US $ 1.9 billion, downstream infrastructure is the US $ 1.2 billion, gas sub-holding investment is the US $ 800 million, and others US $ 300 million.

Fajriyah added, his party also ensures that the work of these projects is in accordance with the provisions for using the Domestic Component Level (TKDN). This is to strengthen the national industry, create jobs, and reduce dependence on imported products so that they can move the wheels of the national economy. Until the first semester of this year, Pertamina's TKDN average reached 54%.

"As a state-owned oil and gas company, Pertamina continues to carry out business and projects according to the direction of the Government, in this case, the Ministry of BUMN and the Ministry of Energy and Mineral Resources striving for the future of energy as well as driving the national economy by optimizing the use of domestic resources, "explained Fajriyah.

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

Strategic Project Investments are ongoing

 

PT Pertamina (Persero) ensures that strategic project investment in all of the company's business lines will continue during the pandemic. 

Fajriyah Usman

    VP of Corporate Communication of Pertamina, Fajriyah Usman, said that the company is committed to maintaining national energy production in the next few years.

"Even though we were hit by a triple shock during the pandemic and it caused obstacles in the field," said Fajriyah.

the Jambaran-Tiung Biru unitization field

She said several strategic projects in the upstream area, such as Jambaran-Tiung Biru managed by PT Pertamina EP Cepu (PEPC), are currently continuing and have successfully carried out rigless perforation with smart coiled tubing units.

This project will produce gas from the Jambaran-Tiung Biru unitization field with an average production of 192 MMscfd with a target gas on stream in 2021. In addition, activities off the north coast of West Java carried out by PHE ONWJ are continuing. After completing the KLD-1 well drilling, the KLD ONWJ development project is currently entering the KLD-3 well drilling stage.

This project is targeted to increase reserves and production by December 2020. In other business sectors, Pertamina continues the development of the PT Pertamina International Refinery. One of them is the Balikpapan and Lawe-lawe RDMP project, which is worth the US $ 6.5 billion. 

Nicke Widyawati

    Pertamina President Director Nicke Widyawati revealed the triple shock that Pertamina experienced during the pandemic.

First, a decrease in sales of 25% nationally. Second, the company's cash flow is affected by rupiah fluctuations. Nicke admitted that he had created a tough and very tough scenario to anticipate the effect of the exchange rate on the company's revenue. Third, the company's cash flow is affected by fluctuations in world oil prices. Currently, global crude oil prices are very volatile due to falling demand amid Covid-19.

Bisnis Indonesia, Page-5, Monday, Nov 2, 2020

Pertamina's New Reserves in ONWJ FK-1 Well

The Pertamina Group continues to explore new oil reserves. Pertamina Hulu Energi (PHE) through its subsidiary, Pertamina Hulu Energi Offshore Northwest Java (PHE ONWJ), discovered oil reserves from drilling the FK-1 well development.

PHE's Managing Director, Meidawati said that the current corona outbreak was very challenging. However, PHE still makes every effort to work according to the target Work Plan and Budget (RKAP).

FK-1 wells in Indramayu waters in West Java

One of them is drilling FK-1 wells in Indramayu waters in West Java. ONWJ PHE General Manager Cosmas Supriatna explained, drilling activities at ONWJ were still on schedule and the results were positive.

 "The initial projection of the drilling was 400 bopd, but the Wells test recorded higher results, which yielded 987 bopd. Of course, we are still waiting for the results of the FK-8 Well drilling which is expected to be completed by the end of April, Meidawati said.

Until the first quarter of 2020, PHE ONWJ oil production reached 29,021 bopd, or 10% higher than the RKAP production target in the previous quarter of 26,395 bopd. This oil production achievement also exceeded the target of the State Budget (APBN) which was set at 28,809 bopd.

For the realization of lifting in the first quarter of 2020, PHE ONWJ successfully exceeded 109.4% of the RKAP and passed the state budget target of 100.2%. Throughout this year, PHE ONWJ is targeting oil and gas production of 41,100 boepd, consisting of oil production of 26,400 bopd and 85 mmscfd of gas.

Kontan, Page-13, Tuesday, April 21, 2020

Petroleum Production Still Continues

PT Pertamina Hulu Energi Offshore North West Java PHE ONWJ's activities, which operate off the north coast of West Java, continue to take place during the CoVid-19 pandemic situation.

Its production, around 28,000 barrels of oil per day. "Our activities on the ground continue as usual despite changes in crew changes, from every 12 days extended to every 28 days during the Covid-19 pandemic," said PHE ONWJ General Manager Cosmas Supriatna.

The number of workers in the field has also been reduced, from 1,200 to 970. In Indonesia, the Covid-19 pandemic has an impact on upstream oil and gas activities, in the form of declining oil and gas demand and hampered field operations.

Kompas, Page-10, Monday, April 13, 2020

PHE is Ready to Boost YYA-1 Well

Pertamina Hulu Energi (PHE) plans to reuse the relief well of the North West Java (ONWJ) Offshore Block used to cover gas leaks in the Karawang Sea in the middle of last year. PHE's Managing Director, Meidawati said, the process of reuse is still ongoing if it goes well, then the impact on new products will be felt starting next year.

"The re-development of YYA-1 production is planned for 2021," Meidawati said.

Meidawati explained, her party was still continuing to study the estimated production at the well. Based on preliminary calculations, production is estimated to be in the range of 1,000 to 1,500 Barrels Per Day (BPD). 

     Previously Director of Operations at Pertamina Hulu Energi (PHE) Taufik Aditiyawarman said that the drilling was planned for three wells. So far they have conducted a number of studies such as studies of subsurface, drilling and platform cutting. The estimated investment for the plan to recover the well is around the US $ 30 million to the US $ 40 million.

"I don't know for sure, recovery, fixing, installing again, maybe the US $ 30 million-USS 40 million," said Taufik.

Director of Engineering and Environment of the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources Adhi Wibowo revealed that the results of the gas leak investigation will be announced in the near future. Until now there is no clarity about the YYA-1 gas leak that caused oil spills and impacted on a number of areas.

"Soon it will be finished, not exceeding this month. It is being finalized," Adhi said.

The investigation effort is indeed in conjunction with the plan to re-use the YYA-1 Well. This is according to the development plan proposed by PHE. The investigation involved a number of experts, both from the Ministry of Energy and Mineral Resources and an independent team. Adhi said that after the investigation, the report would be directly conveyed to the Minister of Energy and Mineral Resources Arifin Tasrif.

For your information, this oil and gas well leak occurred on July 12, 2019, around 01:30 West Indonesia Time at the time of re-entry at the YYA-1 well in the re-perforation activity. Then a gas bubble emerged at the YYA Pavilion from the Ensco-67 rig located in the ONWJ offshore operational area. The YYA-1 well is a former YYA-4 exploration well that was drilled in 2011. This well is the leak.

Kontan, Page-14, Thursday, March 12, 2020

Ensco 67 Rig Blow Out in PHE ONWJ

7 Oil Producers Exceed Production Targets

Seven Indonesian oil producers (Cooperation Contract Contractors / KKKS) exceeded the 2020 oil production target set in the State Budget (APBN).

The seven oil producers are ExxonMobil Cepu Ltd (EMCL), Chevron Pacific Indonesia, Pertamina Upstream Energy ONWJ, Medco E&P Natuna, Pertamina Upstream Sanga-Sanga, Medco E&P Rimau, and JOB Pertamina-Medco Tomori Sulawesi LTD. Exceeding the highest target was achieved by Medco E&P Natuna which reached 119.6% of the APBN target.

"We continue to supervise and increase the intensity of coordination with KKS Contractors to discuss steps to improve upstream oil and gas operational performance and program implementation in line with Work, Programs and Budget (WP&B) in 2020," said Head of the Special Task Force for Upstream Oil and Gas Business Activities, Dwi Soetjipto, in Jakarta.

Dwi Soetjipto

Based on SKK Migas notes, until early March 2020, there are a number of KKKS that have not reached their production targets due to several reasons.

"There are KKKS that have carried out activities, but the results obtained are not as high as predicted or have not reached the target, for that we will evaluate the KKKS program and ensure that production is on target," Dwi said.

To monitor the investment and production activities of the KKKS, SKK Migas is calling at the same time finding a solution with the KKKS that cannot realize the production according to the target. 

    Regarding KKKS that have not yet reached the target, Dwi said, his party continues to conduct evaluations to ensure that the activities they carry out can support the achievement of production targets in the coming years, primarily in achieving the target of 1 million barrels.

In addition to the 7 oil producers, there are four KKKS gas producers that exceed the channeling targets, namely Pertamina Hulu Mahakam, ENI Muara Bakau BV, Premier Oil Indonesia and Petrochina International Jabung LTD. The highest production exceeding was achieved by Premier Oil Indonesia, which reached 121.2% of the APBN calculation target

Investor Daily, Page-9, Wednesday, March 11, 2020

YYA Well Operations in 2021

PT Pertamina Hulu Energi targets the YYA well in the Offshore North West Java (ONWJ) Block to resume operations in 2021. 

Ifki Sukarya

Ifki Sukarya, Vice President Relations of PHE, explained that as of December 2019, the YYA Well had been carried out by plug and abandon and platform lifting.

However, until now it is still waiting for approval of the document on the Recovery of Life Functions in the affected area. Meanwhile, the Environmental Function Recovery Plan document is a series of activities handling contaminated land which includes planning, implementing, evaluating and monitoring activities to restore environmental functions caused by environmental pollution and/or environmental damage.

"It is hoped that by the end of 2021 it will be onstream," he said.

Meanwhile, Ifky said it was trying to complete the process of compensation payments for residents affected by oil and gas leaks. As for now, there is still a lot of citizen data that is not in accordance with the Population and Civil Registry Office data. 

     In addition, there are still two districts that have not yet implemented data collection for the second wave, namely Bekasi Regency and Karawang Regency.

"We hope to finish as soon as possible, depending on the Regency Government," he explained.

Previously, PHE through its subsidiary PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), had completed the initial compensation payment for residents affected by oil spills in Karawang Regency and Bekasi Regency, West Java.

Bisnis Indonesia, Page-23, Friday, March 6, 2020

Pertamina Hulu Energi Booked US $ 590 Million in Profit

PT Pertamina Hulu Energi (PHE) managed to book a profit of US $ 590 million last year, up 23.68% from the realization of 2018 of US $ 477 million. The increase in profits was supported by the high realization of the company's oil and gas production.

PT Pertamina Hulu Energi (PHE)

PHE's President Director Meidawati said last year's profit realization of US $ 590 million was higher than the 2018 achievement of US $ 477 million. While revenue realization was US $ 2.67 billion, up by 5.81% from the realization in 2018 of US $ 2.53 billion. The increase in financial performance was when the price of oil dropped from US $ 68 per barrel in 2018 to US $ 62 per barrel in 2019.

The company's profit could be higher if last year's oil price reached US $ 68 per barrel. Last year, the company's oil production reached 78,002 barrels per day (BPD). This realization increased by 13.05% from 2018 production achievements of 68,996 bpd. The company's gas production realization also increased slightly from 794 million standard cubic feet per day / mmscfd in 2018 to 803 mmscfd in 2019.

According to him, the achievement of this production performance was due to an increase in oil and gas production from the Jambi Merang and Tomori Blocks. In addition, additional production oil and gas also comes from optimizing planned shutdowns on the Offshore North West Java Block (ONWJ), West Madura Offshore (WMO), and Offshore South East Sumatra (OSES).

"In addition, this production achievement is also due to the success of PHE in reducing production decline from an average of 35% to 20%," Meidawati said.

Blogger Agus Purnomo in PT. PHE West Madura Offshore (WMO)

Meidawati added that ONWJ Block oil and gas production was recorded to increase despite an oil spill from one of its fields, the YY Project. This is because the acquisition of oil and gas production from reworking wells in other fields is very good so that it can cover the lost production from Project YY.

 "Because we work a lot on the ONWJ Block too. So the incidence of oil spills is not very influential. We got a lot of oil and gas production coming in, gas sales also went up, "Meidawati said.

This year, Meidawati hopes that some of the subsidiaries that were the mainstay in the past year will still be able to contribute maximally. This is because his party has set a higher oil and gas production target this year, namely 84 thousand bpd of oil and 822 mmscfd of gas. To pursue the target, he plans to do more massive activities.

"We will carry out drilling for the development of 51 wells and exploration of 6 wells, as well as the reworking of 50 wells," he said.

One of them, he plans to drill two exploration wells in the Nunukan Block. Because, according to the approved plan of development / POD, this block must start producing oil and gas next year.

"If there is no oil and gas flowing, we must return it to the government. Even though we have the privilege to have management rights, "Meidawati said.

Investor Daily, Page-9, Friday, March 6, 2020

PHE Pay Oil Spill Compensation

PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) paid initial compensation for 1,999 affected residents in Karawang, West Java. Compensation is given to residents affected by gas leaks and oil spills in the Karawang Sea that have fulfilled the requirements. 

    PHE ONWJ partnered with the State-Owned Bank Association (Himbara) in the payment of this compensation.

This payment was made after the Karawang Regency Working Group Working Team finalized the improvement of data and re-verification of residents belonging to group B, namely affected residents who were included in the Regent's Decree but their identity data needed improvement.

Ifki Sukarya

PHE Vice President Relations Ifki Sukarya said the initial compensation payment for group B was made after the Karawang Working Group completed the citizens' identity data and re-verified the recommendations of the Financial and Development Supervisory Agency (BPKP).

Every citizen is entitled to receive compensation in the amount of Rp 1,800,000 for a two-month calculation with the number of group B to be paid as many as 1,999 residents. Ifki explained, PHE tried to carry out the process of paying compensation for affected residents as soon as possible, but of course as well as possible so that later it could be accounted for.

"We hope that all parties understand that this process requires carefulness and prudence so it takes time," Ifki Sukarya said.

At present, PHE ONWJ together with the IPB Team and the affected district or city Working Group simultaneously calculate final compensation based on data obtained.

Kontan, Page-14, Friday, Feb 21, 2020

ONWJ Block Investigation Has Not Ended

The Ministry of Energy and Mineral Resources (ESDM) ensures that the investigation process of gas leaks and oil spills in the YYA-1 Well owned by PT Pertamina Hulu Energi Offshore North Westjava (ONWJ) is still ongoing. 

Oil spills in the YYA-1 Well PHE-ONWJ

      Director of Engineering and Environment of the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources Adhi Wibowo said the investigation was ongoing after the cessation of gas bursts and well closures.

"This oil and gas investigation is still ongoing. "Yesterday the concentration was to help out how to keep the oil from coming out again," Adhi explained.

The investigation team consists of a combination of independent teams, academics, practitioners, and industry players. Just information. 

ENSCO 67 Rig Blow Out

This incident occurred on July 12, 2019, at around 01.30 West Indonesia Time during a perforation or perforation of the well wall. Then a gas bubble emerged at the YYA Pavilion from the Ensco-67 rig located in the ONWJ offshore operational area.

the Ensco-67 Blow Out

Meanwhile, the YYA-1 Well is an ex YYA-4 exploration well that was drilled in 2011. This well is the leak. On July 17, 2019, oil spills began to appear around the bridge. The day after that the oil spill reached the coast to the west. The distance between the bridge and the Karawang coastline is about 2 kilometers (km). 

the oil spill PHE ONWJ

    Through intensive treatment on 21 September 2019, PHE ONWJ conducted an intercept process in which the Relief Well well was successfully connected to the YYA -1 Well. Relief Well is the process of shutting down the YYA-1 well by drilling from the side carried out from the Soehanah rig which is 1 km from the YYA-1 well.

The connection process between the wells was successfully carried out well and was faster than the estimated planned time schedule, which was the end of September 2019. Adhi explained, it was in December 2019 and ensured a premature explosion occurred at a depth of 6,600 feet. Nevertheless, Adhi could not confirm the cause of the explosion because it was still waiting for the results of the investigation to come out.

"The explosion may have been caused by a pressure that caused the drill pipe to be damaged and the platform to tilt," he said.

IN INDONESIA

Investigasi Blok ONWJ Belum Selesai

Kementerian Energi dan Sumber Daya Mineral (ESDM) memastikan proses investigasi kebocoran gas dan tumpahan minyak di Sumur YYA-1 milik PT Pertamina Hulu Energi Offshore North Westjava (ONWJ) masih terus berlangsung. 

     Direktur Teknik dan Lingkungan Direktorat Jenderal Migas Kementerian ESDM Adhi Wibowo mengatakan investigasi masih berlangsung pasca penghentian semburan gas dan penutupan sumur.

'Ini investigasi migas masih berlangsung. Kemarin-kemarin konsentrasinya untuk membantu bagaimana agar tidak keluar lagi minyaknya," jelas Adhi.

Adapun tim investigasi ini terdiri dari gabungan tim independen, akademisi, praktisi, dan pelaku industri. Sekedar informasi. peristiwa ini terjadi pada 12 Juli 2019 sekitar pukul 01.30 WIB saat melakukan perforasi atau proses pelubangan dinding sumur. Lalu muncul gelembung gas di Anjungan YYA dari rig Ensco-67 yang terletak di wilayah operasional offshore ONWJ.

Adapun, Sumur YYA-1 merupakan sumur eks eksplorasi YYA-4 yang dibor pada tahun 2011. Sumur inilah yang mengalami kebocoran. Pada 17 Juli 2019, tumpahan minyak mulai terlihat di sekitar anjungan. Sehari setelahnya tumpahan minyak mencapai pantai ke arah barat. Posisi jarak anjungan dengan garis pantai Karawang sekitar 2 kilometer (km). 

    Melalui penanganan intensif pada 21 September 2019, PHE ONWJ melakukan proses intercept yang mana sumur Relief Well berhasil terkoneksi dengan Sumur YYA -1. Relief Well adalah proses mematikan sumur YYA-1 dengan pengeboran dari samping yang dilakukan dari rig Soehanah yang berjarak 1 km dari sumur YYA-1.

Proses koneksi antar sumur ini berhasil dilakukan dengan baik dan lebih cepat dibandingkan estimasi jadwal waktu yang direncanakan, yaitu akhir September 2019. Adhi menjelaskan, pihaknya pada Desember 2019 lalu memastikan terjadi ledakan prematur di kedalaman 6.600 feet. Kendati demikian, Adhi belum bisa memastikan penyebab ledakan karena masih menanti hasil investigasi keluar.

"Ledakan mungkin terjadi akibat dipicu tekanan yang membuat pipa bor rusak dan platform menjadi miring,” ujarnya.

Kontan, Page-14, Wednesday, Jan 22, 2020

Rokan and Cepu Blocks Become the Mainstay of Lifting 2020

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the achievement of the 2020 oil lifting target of 755 thousand barrels per day (BPD) depends on the success of the Rokan Block transition and the revised environmental impact analysis (Amdal) of the Cepu Block. Because, there is still a difference of 50 thousand BPD between the proposed target of oil and gas producers and the state budget.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said that the proposed oil production from the cooperation contract contractor (KKKS) based on technical conditions was still recorded at 705 thousand BPD. While the oil production target set in the 2020 APBN reaches 775 thousand BPD. Thus, it still has to look for additional oil production of up to 50,000 BPD. According to him, additional production in the Rokan Block and the Cepu Block could help to sharpen the difference.

the Cepu Block

"If Pertamina enters into investing in the Rokan Block, then the 50 thousand BPD gap can be reduced. For the Cepu Block, we are preparing a revised Environmental Impact Analysis (EIA) so that production can be increased to 235 thousand BPD, "he said in Jakarta.

the Rokan Block 

Dwi explained, PT Pertamina (Persero) could work on the Rokan Block after having an agreement on the implementation of the management transition with PT Chevron Pacific Indonesia (CPI). He hopes that the discussion will shrink at the beginning of this year so that the management of the Rokan Block can be started sooner.

"We will give this transition process in such a way that it does not interfere with the optimization of oil and gas production and lifting," he said.

ExxonMobil Cepu Limited (EMCL) FIELD

Regarding the Cepu Block, the existing Amdal limits the maximum production of the block to 220 thousand BPD. Last year the production of the Banyu Urip Field, the Cepu Block had reached 209 thousand BPD. In fact, ExxonMobil Cepu Limited (EMCL) has started oil production at the Kedung Keris Field at the end of last year. The current field of oil production is around 5,000 BPD and could reach 10,000 BPD.

"If it does not succeed in raising [the production limit] at Amdal, we must limit [production] to a maximum of 220 thousand BPD," Dwi said.

Deputy Head of SKK Migas Fatar Yani Abdurrahman added the transition to the management of the Rokan Block should have started last year. However, Pertamina and CPI business to business negotiations are very complicated because they involve state revenues, so they require more time. SKK Migas will encourage this negotiation to finish in January.

"So drilling 70 wells in 2020 can occur. If Pertamina enters, it can increase the production of the Rokan Block. If it can reach 20 thousand, it is fine, "he explained.

the Offshore North West Java (ONWJ)

In addition to the Rokan Block and the Cepu Block, additional oil production can also be obtained by the Offshore North West Java (ONWJ) Block. This was done by redeveloping the YY Field which was delayed last year due to the oil eruption incident.

"This is accelerated from relief well to production well so that it can help increase oil production," he said.

Another effort is to ensure that the planned activities in 2020 run according to the target. This year, the upstream work plan that will be carried out is the workover of 837 wells, maintenance of 28,163 wells activities, drilling of 395 well development wells, and 61 exploration wells. If it is fully implemented, he is optimistic that the additional oil production produced will help reduce the difference of 50 thousand BPD.

"If the workover goes according to the target, then there will be an increase in production from the Banyu Urip Block, the ONWJ Block, and the Rokan Block, an additional 50 thousand BPD may be possible. At least to reach 755 thousand BPD is not too far away, "he explained.

In 2020, the national oil and gas lifting was 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 barrels per day (BPD) from the realization of 746 thousand BPD, and gas to 1.19 million boepd from the realization of 1.06 million boepd. While upstream oil and gas investment is targeted at the US $ 13.8 billion.

IN INDONESIA

Blok Rokan dan Cepu Menjadi Andalan Lifting 2020

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menyatakan pencapaian target lifting minyak 2020 sebesar 755 ribu barel per hari (bph) bergantung pada keberhasilan transisi Blok Rokan dan revisi analisis dampak lingkungan (Amdal) Blok Cepu. Pasalnya, masih ada selisih 50 ribu bph antaran target usulan produsen migas dan APBN.

Kepala SKK Migas Dwi Soetjipto mengatakan, usulan produksi minyak dari kontraktor kontrak kerja sama (KKKS) berdasarkan kondisi teknis tercatat masih sebesar 705 ribu bph. Sementara target produksi minyak yang ditetapkan dalam APBN 2020 mencapai 775 ribu bph. Sehingga, pihaknya masih harus mencari tambahan produksi minyak hingga 50 ribu bph. Menurut dia adanya tambahan produksi di Blok Rokan dan Blok Cepu bisa membantu memperkceil selisih tersebut. 

“Kalau Pertamina masuk ikut investasi di Blok Rokan, maka gap 50 ribu bph itu bisa berkurang. Untuk Blok Cepu, kami sedang siapkan revisi Analisis mengenao Dampak Lingkungan (Amdal) agar produksi bisa dinaikkan ke 235 ribu bph,” kata dia di Jakarta.

Dwi menjelaskan, PT Pertamina (Persero) bisa ikut menggarap Blok Rokan setelah memiliki kesepakatan pelaksanaan transisi pengelolaan dengan PT Chevron Pacific Indonesia (CPI). Pihaknya berharap pembahasan tersebut bisa mengecil di awal tahun ini sehingga alih kelola Blok Rokan bisa dimulai lebih cepat.

“Kami akan memberi masukkan proses peralihan ini sedemikian rupa sehingga tidak mengganggu optimalisasi produksi dan lifting migas,” ujarnya. 

Terkait Blok Cepu, Amdal yang ada saat ini membatasi produksi maksimal blok tersebut sebesar 220 ribu bph. Tahun lalu produksi Lapangan Banyu Urip, Blok Cepu telah mencapai 209 ribu bph. Padahal, ExxonMobil Cepu Limited telah memulai produksi minyak di Lapangan Kedung Keris pada akhir tahun lalu. Produksi minyak lapangan tersebut saat ini sekitar 5 ribu bph dan bisa mencapai 10 ribu bph.

“ Kalau tidak berhasil menaikkan [batasan produksi] di Amdal, kami harus batasi [produksi] maksimum 220 ribu bph,” tutur Dwi.

Wakil Kepala SKK Migas Fatar Yani Abdurrahman menambahkan, transisi pengelolaan Blok Rokan seharusnya dimulai pada tahun lalu. Namun, negosiasi bisnis (business to business) Pertamina dan CPI sangat rumit lantaran menyangkut pendapatan negara, sehingga memerlukan waktu lebih lama. SKK Migas akan mendorong negosiasi ini selesai di Januari.

“Jadi pengeboran 70 sumur di 2020 bisa terjadi. Kalau Pertamina masuk, bisa menambah produksi Blok Rokan. Kalau bisa mecapai 20 ribu sudah lumayan,” jelasnya. 

Selain Blok Rokan dan Blok  Cepu, tambahan produksi minyak juga bisa diperoleh Blok Offshore North West Java (ONWJ). Hal ini dilakukan dengan melakukan pengembangan kembali Lapangan YY yang tertunda di tahun lalu lantaran insiden semburan minyak. 

“Ini diakselerasi dari relief well ke production well, sehingga bisa membantu naikkan produksi minyak,” ujar dia.

Upaya lainnya yakni dengan memastikan rencana kegiatan di 2020 berjalan sesuai target. Pada tahun ini, rencana kerja hulu yang akan dilakukan yakni kerja ulang (workover) 837 sumur, perawatan sumur 28.163 kegiatan, pengeboran sumur pengembangan 395 sumur, dan sumur eksplorasi 61 sumur. Jika terlaksana seluruhnya, dia optimistis tambahan produksi minyak yang dihasilkan bisa membantu mengurangi selisih 50 ribu bph.

“Kalau workover berlangsung sesuai target, kemudian ada peningkatan produksi dari Blok Banyu Urip, Blok ONWJ, dan Blok Rokan, mungkin bisa dicapai tambahan 50 ribu bph. Paling tidak untuk mencapai 755 ribu bph tidak terlalu jauh,” papar dia.

Pada 2020, lifting migas nasional justru ditetapkan 1,95 juta barel setara minyak per hari/boepd, naik sedikit dari realisasi tahun lalu 1,8 juta boepd. Rincinya, produksi minyak naik menjadi 755 ribu barel per hari (bph) dari realisasi 746 ribu bph, serta gas menjadi 1,19 juta boepd dari realisasi 1,06 juta boepd. Sementara investasi hulu migas ditargetkan sebesar US$ 13,8 miliar.

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