Three Steps the Government Reduces Gas Prices

In accordance with President Joko Widodo's orders, the Ministry of Energy and Mineral Resources continues to reduce gas prices to the US $ 5 per MMBtu. There are three ways to be done. Namely, the amendment to the contract of buying and selling gas on 31 contracts, making gas clusters based on the location of gas supply and buyers and imports.

Director-General of Oil and Gas at the ESDM Ministry IGN Wiratmaja Puja said the government was reviewing a number of contracts to reduce gas prices. In addition, Acting Minister of Energy and Mineral Resources Luhut Binsar Panjaitan said, his party would form zoning.

Luhut Binsar Panjaitan

Western Indonesia gets gas from western Indonesia, and eastern Indonesia gets gas from the east. If gas for eastern Indonesia is not enough, it can use imported gas. While gas from eastern Indonesia will be exported.

Luhut gave an example that the price of gas from Malaysia or Brunei or the Middle East could be cheaper, the US $ 3-US $ 4 per MMBtu and if regasification and distribution could be the US $ 8 per MMBtu for Medan. Cheaper than the price of gas in Medan reaching the US $ 13 per MMBtu. Well, finally after that, gas imports.

With regard to the three policies, ConocoPhillips Development and Relations VP Joang Laksanto emphasized that his party could not comment on the matter of the contract amendment.

Wianda Pusponegoro

"The contract must be agreed to by both parties. Wianda Pusponegoro VP Corporate Communication PT Pertamina said it understands the current gas prices. Now together seek comprehensive solutions from upstream to downstream, said Wianda Pusponegoro.

Gunung Sardjono, President Director of PT Pertamina Hulu Energi, criticized the cluster move. According to him, the government did cluster mapping based on demand and supply. If you match but the price hasn't been found, you can find a solution. The important thing is no one feels disadvantaged.

Kontan, Page-14, Thursday, Oct 13, 2016

Pertamina Extends Old Block Age

Sluggish world oil prices do not prevent Pertamina from actively investing in the upstream oil and gas sector. Pertamina Hulu Energi (PHE) inaugurated the offshore oil production platform PHE-24 in Madura waters. PHE-24 and PHE-12 become part of the first part integrated production facility (EPC-1). 

      The production facility will be equipped with Central Processing Platform 2 (CPP2) which is on its way from the assembly facility in Cilegon, Banten, West Java.

Dwi Soetjipto

The three installations are expected to be installed at the end of November 2016 and begin production in February 2017. Pertamina's Managing Director Dwi Soetjipto stated the integrated field development is Pertamina's effort to increase its contribution to 40 percent in national oil production in 2019.

Now, Pertamina has only contributed around 23 percent and the total national oil production is 830 thousand barrels per day. In addition to improving efficiency, cutting losses and increasing domestic content, Pertamina continues to look for new reserves in other work areas. Dwi Soetjipto admitted, his side was still researching the North Kalimantan region which has geological conditions similar to the Mahakam Block.

Head of SKK Migas Amien Sunaryadi gave a thumbs-up to Pertamina's success in being able to reduce costs but continued to pursue oil lifting targets. The PHE WMO project that was inaugurated yesterday reduced costs by up to 20 percent from what was determined in the plan of development (POD).

left : Sri Budiyani

PHE General Manager WMO Sri Budiyani added, through the EPC-1 project, the company targets to increase production by 5-7 thousand barrels per day for the next five years. Thus, the rate of decline in natural products in the WMO Block which in the last three years reached 50-60 percent per year can be suppressed. Through a Well maintenance program and production optimization, the rate of natural production decline can be held to only around 10 percent

Jawa Pos, Page-5, Thursday, Oct 13, 2016