When running helter-skelter Pursue 1 Million Bph

The government's dream to restore the glory of upstream oil and gas by targeting oil production of 1 million barrels per day by 2030 needs to be supported by concrete steps through policy or fiscal stimulus.

The hope of increasing oil production is certainly not an easy job. Moreover, the national upstream oil and gas sector is faced with a decline in natural oil production. In the BP Statistical Review 2019, national oil production decreased by 3.5% in 2018 or above the average decline over the past 10 years by 1.5%.

This year's production realization is even expected to decrease by more than 20,000 BPD compared to 2018. Oil production as of October 2019 was recorded at 750,500 BPD, while at the end of 2018 it was recorded at 778,000 BPD. From these data, the hope of oil production returning to reach 1 million BPD needs concrete steps.

For example, there is an equivalent finding of the Banyu Urip Field. Heading there, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) campaigned for four pillars of the long-term strategy to achieve the production target of 1 million BPD.

The four pillars are maintaining current production, transforming resources into production, implementing advanced oil recovery (EOR), to massive exploration activities.

Feeling that they did not want to lose before the war, SKK Migas was optimistic that the target would be achieved. Moreover, the opportunity for the national oil and gas industry is still large. This can be seen from a total of 128 sedimentary basins in Indonesia, only 54 of which have been explored and whose production is still 19 basins.

Thus there are still 74 basins waiting to be explored and 35 basins that have been explored are expected to find oil and gas reserves through continuous exploration and investment in the basin.

SKK Migas Planning Deputy Jafee Suadin revealed that by looking at the current conditions, the four efforts need to be carried out in parallel. According to him, it is difficult to rely solely on advanced drainage technology (EOR) or wait for the discovery of a new giant oil block.

"Our anchor effort is 1 million BPD. The target is a combination of EOR technology, the discovery of new reserves, and transformation of reserves into

production, "he said.

Regarding the implementation of the EOR, the government considers this to be a solution so that oil production is again attractive. Because, based on the results of a coordination meeting chaired by the Coordinating Minister for Maritime and Investment Luhut Binsar Pandjaitan, EOR is expected to provide an additional 1.6 billion barrels of oil production.

Luhut Binsar Pandjaitan

Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan said, his party had discussed efforts to increase oil production through EOR activities with oil and gas companies operating in Indonesia. He requested that the oil and gas company identify the potential EOR in oil and gas blocks in Indonesia.

"We have data that there are 1.6 billion barrels that can be produced from EOR activities," he said.

ECONOMY

However, is the production of 1.6 billion barrels using EOR already very economical? This is what seems to influence businesses to count and think again to run the EOR. Executive Director of the Reforminer Institute Komaidi Notonegoro said if the government only prioritizes production without thinking about business factors, then it is difficult for business actors to carry out further stages of drainage. According to him, the implementation of EOR is useless but it is carried out with lifting costs more expensive compared to oil imports.

"If the barrel production is more expensive than imports, will it also be a business decision? If it is seen as a driver of energy independence okay, "he said.

At present, the potential of EOR in Indonesia is spread over 129 oil fields consisting of 15 work areas. Until the middle of the year, the EOR's definite work commitment was the only US $ 446 million. 

     Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Djoko Siswanto added that the acceleration of EOR can be done by applying this technology to several wells, not one field at a time. According to him, this step is in accordance with the proposal from the Bandung Institute of Technology (ITB).

the Bandung Institute of Technology (ITB).

"So it is injected first, closed for a while, and then the oil will come out, per well. The Minister wants which wells are, what fields the program is, and what obstacles, it will be reported on January 25, 2020, "he said.

Some studies have indeed been carried out by oil and gas contractors that have carried out EOR activities. Unfortunately, this EOR activity has not yet been massive. The government hopes that these activities will produce results, such as those carried out in the Rokan Block, the Offshore North West Java Block (ONWJ), the Rimau Block, and several fields managed by PT Pertamina EP.

Some studies have indeed been carried out by oil and gas contractors that have carried out EOR activities. Unfortunately, this EOR activity has not yet been massive. The government hopes that these activities will produce results, such as those carried out in the Rokan Block, the North West Java (ONWJ) Block, the Rimau Block, and several fields managed by PT Pertamina EP.

"The great potential of EOR is in Rokan Block with Pertamina EP, then in Zulu [ONWJ Block] PHE [Pertamina Hulu Energi], the same in Medco, namely Rimau Block, Kaji-Harapan Field," he added.

IN INDONESIA

Kala berlari pontang-panting Kejar 1 Juta Bph

Mimpi pemerintah untuk mengembalikan kejayaan hulu minyak dan gas bumi dengan menargetkan produksi minyak sebesar 1 juta barel per hari pada 2030 perlu didukung dengan langkah konkret lewat kebijakan ataupun stimulus fiskal. 

Harapan penaikan produksi minyak tentu bukan pekerjaan mudah. Apalagi sektor hulu migas nasional dihadapkan dengan penurunan produksi minyak alamiah. Dalam BP Statistical Review 2019, produksi minyak nasional menurun sebanyak 3,5% pada 2018 atau di atas rata-rata penurunan selama 10 tahun terakhir sebesar 1,5%.

Realisasi produksi tahun ini bahkan diperkirakan mengecil lebih dari 20.000 bph dibandingkan dengan 2018. Produksi minyak per Oktober 2019 tercatat sebesar 750.500 bph, sedangkan pada akhir 2018 tercatat sebesar 778.000 bph. Dari data tersebut, harapan produksi minyak kembali mencapai 1 juta bph perlu langkah konkret. 

Misalnya saja, ada penemuan setara Lapangan Banyu Urip. Menuju ke sana, Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mengampanyekan empat pilar strategi jangka panjang untuk mencapai target produksi 1 juta bph tersebut.

Empat pilar tersebut yakni menjaga produksi yang ada sekarang, transformasi resource menjadi produksi, implementasi pengurasan minyak tahap lanjut (enhanced oil recovery/EOR), hingga aktivitas eksplorasi yang masif. 

Merasa tidak ingin kalah sebelum berperang, SKK Migas optimistis target tersebut tercapai. Terlebih, peluang industri migas nasional masih besar. Hal itu terlihat dari total sebanyak 128 cekungan sedimen yang ada di Indonesia, hanya 54 cekungan yang telah dieksplorasi dan yang berproduksi masih 19 cekungan.

Dengan demikian masih ada 74 cekungan yang menunggu untuk dieksplorasi serta 35 cekungan yang telah dieksplorasi diharapkan dapat ditemukan cadangan migas melalui eksplorasi dan investasi yang terus menerus di cekungan tersebut. 

Deputi Perencanaan SKK Migas Jafee Suadin mengungkapkan dengan melihat kondisi terkini, empat upaya tersebut perlu dijalankan secara pararel. Menurutnya, sulit hanya mengandalkan teknologi pengurasan tahap lanjut (EOR), atau menanti adanya temuan blok minyak raksasa baru.

“Anchor effort kami 1 juta bph. Target tersebut merupakan perpaduan antara teknologi EOR, penemuan cadangan baru, dan transformasi cadangan menjadi

produksi,” katanya.

Terkait dengan penerapan EOR, pemerintah menganggap hal ini menjadi solusi agar produksi minyak kembali menarik. Pasalnya, berdasarkan hasil rapat koordinasi yang dipimpin oleh Menteri Koordinator Maritim dan Investasi Luhut Binsar Pandjaitan, EOR diharapkan bisa memberikan tambahan produksi minyak 1,6 miliar barel. 

Menteri Koordinator Kemaritiman dan Investasi Luhut Binsar Pandjaitan menuturkan, pihaknya sudah membahas upaya menaikkan produksi minyak melalui kegiatan EOR ini bersama perusahaan-perusahaan migas yang beroperasi di Indonesia. Pihaknya meminta agar perusahaan migas mengidentifikasi potensi-potensi EOR yang ada di blok-blok migas di Indonesia.

“Kami punya data ada 1,6 miliar barel yang bisa diproduksikan dari kegiatan EOR,” katanya.

KEEKONOMIAN

Hanya saja, apakah produksi 1,6 miliar barel menggunakan EOR sudah sangat ekonomis? Hal inilah yang rasanya memengaruhi pelaku usaha berhitung dan dan berfikir ulang untuk menjalankan EOR. Direktur Eksekutif Reforminer Institute Komaidi Notonegoro mengatakan jika pemerintah hanya mengutamakan produksi tanpa memikirkan faktor bisnis, maka pelaku usaha sulit melakukan pengurasan tahap lanjut. Menurutnya, percuma saja implementasi EOR tetapi dijalankan dengan biaya lifting lebih mahal dibandingkan dengan impor minyak.

“Kalau produksi per barelnya lebih mahal dari impor, apakah juga akan menjadi keputusan bisnis? Kalau dilihat sebagai pendorong kemandirian energi oke-lah,” katanya. 

Saat ini, potensi EOR di Indonesia tersebar di 129 lapangan minyak yang terdiri dari 15 Wilayah kerja. Hingga pertengahan tahun  komitmen kerja pasti EOR hanya sebesar US$446 juta. Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto menambahkan percepatan EOR ini bisa dilakukan dengan menerapkan teknologi ini untuk beberapa sumur, tidak satu lapangan sekaligus. Menurutnya, langkah ini sesuai usulan dari Institut Teknologi Bandung (ITB).

“Jadi diinjeksi dulu, ditutup sebentar, terus nanti keluar minyaknya, per sumur pelaksanaannya. Pak Menteri inginnya sumur mana saja, lapangan mana saja program-nya apa, dan kendalanya apa, itu nanti dilaporkan pada 25 Januari 2020,” ujarnya.

Beberapa studi memang sudah dilakukan kontraktor migas yang telah melaksanakan kegiatan EOR. Sayangnya, kegiatan EOR ini belum masif. Pemerintah berharap aktivitas ini membuahkan hasil, seperti yang dilakukan di Blok Rokan, Blok Offshore North West Java (ONWJ), Blok Rimau, dan beberapa lapangan yang dikelola oleh PT Pertamina EP.

“Yang besar potensi EOR kan ada di Blok Rokan dengan Pertamina EP, kemudian di Zulu [Blok ONWJ] PHE [Pertamina Hulu Energi], sama di Medco yaitu Blok Rimau, Lapangan Kaji-Semoga,” tambahnya.

Bisnis Indonesia, Page-24, Monday, 9 Dec 2019

The Government Guarantees Fertilizer and Petrochemical Industrial Gas Supply

The government is committed to meeting gas needs for the fertilizer and petrochemical industry, in accordance with the applicable regulations and production sharing contracts (PSCs). In fact, seven large gas projects operating in the next few years have the potential to be a source of gas for the industry.

Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Djoko Siswanto said that in the Oil and Gas Law, the government has prioritized gas supply for the country, particularly the fertilizer and petrochemical industries. In fact, in some PSCs with oil and gas companies, there is an obligation to set aside a portion of their gas production for the domestic market (DMO).

"This DMO problem is only a matter of price. There are DMOs whose prices are set, there are market prices. Then, the DMO contract is five years old, [there is] the same as the contract. It depends on the economy when preparing the POD (the plan of development), "he said after a meeting with the House of Representatives Commission VII.

PUPUK ISKANDAR MUDA (PIM)

He admitted some fertilizer factories are still difficult to get gas, one of them is PT Pupuk Iskandar Muda (PIM). The reason is that the gas sources in this region are starting to run out. In return, the government covered the gas needs of this fertilizer plant using liquefied natural gas / LNG with the risk of very high gas prices.

Pupuk Kalimantan Timur (PKT)

However, fertilizer factories in some regions can obtain gas at competitive prices such as PT Pupuk Kalimantan Timur (PKT), PT Pupuk Kujang Cikampek (PKC), PT Pupuk Sriwidjaja (Pusri), and PT Petrokimia Gresik. In fact, the CCP can obtain gas at prices below the US $ 5 per million British thermal units (MMBTU). Going forward, the fertilizer plant can get gas from supplies currently exported through pipes to Singapore and Malaysia.

"In 2022, fertilizer factories are needed, while the export of gas through pipes from the working area in Natuna and Grissik Field will be completed. So, Kujang and Sriwidjaja Fertilizers can use this, "said Djoko.

The Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto added that the gas supply for PIM had to wait for the development of several oil and gas blocks in the region. The supply of gas directly from the pipeline is expected to cut gas prices to PIM.

"In the future, we will discuss so that the price can be reduced by using other sources. Potential is in the Andaman Blocks I, II, and III. From the available data, the potential is good, "he said.

PT Pupuk Indonesia (Persero)

The Managing Director of PT Pupuk Indonesia (Persero) Aas Asikin Idat revealed that his gas supply shortage problem had already been faced. In addition, some gas supply contracts owned by fertilizer companies are short-term for around 2-3 years. He hopes to be able to obtain long-term supply certainty.

"Moreover, the majority of gas contracts expire in 2021-2022 and many have no certainty about the gas, including the allocation we have not received," he explained.

The absence of long-term supply, he claimed, would have an impact on the continued operation of the plant. Aas gave an example, the PIM-owned factory would stop operating altogether if there was no certainty of gas in 2020. Then, some of the Pupuk Kujang and Pusri factories would also immediately stop operating in 2023 and 2024 respectively due to supply shortages.

PUPUK SRIWIJAYA (PUSRI)

While the urea Petrochemical Gresik plant has the potential to operate in 2021. But he admitted, the absence of long-term gas supply is related to gas prices. At present, the gas price paid by his party exceeds the factory economy, which is an average of US $ 5.8 per MMBtu. 

    This figure is even higher than the price of gas for fertilizer plants in several other countries, where an average of US $ 3.95 per MMBtu. On the other hand, the price of this gas reaches 70% of the total production cost.

"Iskandar Muda has a contract, but this is not yet effective because the price is set at the US $ 7.8 per MMBtu. Some Sriwidjaja ended in 2023-2027 at a price of US $ 5.2-6 plus a toll fee. The Kujang Fertilizer Factory ends in 2022 at a price of US $ 5.73-6 per MMBtu. Petrokimia Gresik has a relatively large price of around US $ 6.36-7.85 per MMBtu, "said Aas.

Seven Projects

Meanwhile, Djoko continued there have been a number of gas projects that could secure gas supplies for fertilizer and petrochemical plants in the future. He hoped that a fertilizer and petrochemical plant would be built near this gas project.

"For example, building [a factory] in Bintuni, or [near] Sakakemang," he said.

Dwi added, there were seven gas projects that could be a source of gas for the fertilizer and petrochemical industries. The total potential supply of this gas reaches 1,167 million cubic feet per day / MMSCFD. The seven gas projects will start producing gas in the period 2023-2027.

"In South Sumatra there is a Sakakemang Project by Repsol SA starting production in 2021 of 300 mmscfd, this can be accelerated in part," he said.

The buyer of this gas is Pupuk Indonesia. Furthermore, the Nunukan PT Pertamina Hulu Energi (PHE) Project 90 mmscfd began in 2024 with the buyer of PT Karya Mineral Jaya. Gas projects in the Bontang Area and Indonesia Deepwater Development (IDD) 100 MMSCFD starting in 2023 with buyers of PT Kaltim Methanol Industri (KMI) and Kaltim Pharma Industri (KPI). 

PT Pertamina EP Cepu (PEPC)

     The Sandalwood and Alas Tua Project by PT Pertamina EP Cepu (PEPC) 150 mmscfd starting in 2023. Then, the Tangguh Train III Refinery Project for the petrochemical industry each amounted to 90 mmscfd for phase I in 2022 and phase II in 2026.

Genting Oil

The Kasuri Project by Genting Oil with petrochemical industry buyers amounted to 197 mmscfd starting in 2023. Finally, the Abadi LNG Project amounted to 150 mmscfd in 2027 and will be accelerated.

Dwi admitted it is not impossible that all national gas production is used domestically. However, this depends on the readiness and ability of the domestic industry to buy the gas supply. Not only that, but the readiness of the gas distribution infrastructure is also important. 

     Referring to SKK Migas data, the distribution of gas into the country until last September was recorded at 4,013.67 mmscfd from the total lifting gas of 6,103.26 mmscfd. While the total gas supply for the fertilizer industry is 749.44 mmscfd.

IN INDONESIA

Pemerintah Jamin Pasokan Gas Industri Pupuk dan Petrokimia

Pemerintah berkomitmen memenuhi kebutuhan gas untuk industri pupuk dan petrokimia, sesuai dalam regulasi dan kontrak kerja sama (production sharing contract/PSC) yang berlaku. Bahkan, tujuh proyek gas besar yang beroperasi dalam beberapa tahun ke depan berpotensi menjadi sumber gas bagi industri tersebut. 

Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto mengatakan, dalam Undang-Undang Migas, pemerintah telah memprioritaskan pasokan gas untuk dalam negeri, khususnya industri pupuk dan petrokimia. Bahkan di beberapa PSC dengan perusahaan migas, terdapat kewajiban menyisihkan sebagian produksi gasnya untuk pasar domestik (domestic market obligation/DMO).

“Soal DMO ini kan soal harga saja. Ada DMO yang hargasnya ditentukan, ada yang harga pasar. Kemudian, kontrak DMO ini ada yang lima tahun, [ada yang] sama dengan kontraknya. Itu tergantung keekonomian saat menyusun POD (plan of development),” kata dia usai rapat dengan Komisi VII DPR.

Diakuinya, beberapa pabrik pupuk memang masih sulit mendapatkan gas, salah satunya PT Pupuk Iskandar Muda (PIM). Pasalnya, sumber gas yang ada di wilayah ini memang mulai habis. Sebagai gantinya, pemerintah menutup kebutuhan gas pabrik pupuk ini menggunakan gas alam cair/LNG dengan risiko harga gas yang sangat tinggi. 

Namun pabrik pupuk di beberapa wilayah bisa memperoleh gas dengan harga kompetitif seperti PT Pupuk Kalimantan Timur (PKT), PT Pupuk Kujang Cikampek (PKC), PT Pupuk Sriwidjaja (Pusri), dan PT Petrokimia Gresik. Bahkan, PKT bisa memperoleh gas dengan harga di bawah US$ 5 per juta british thermal unit (mmbtu). Ke depannya, pabrik pupuk bisa memperoleh gas dari pasokan yang saat ini diekspor melalui pipa ke Singapura dan Malaysia. 

“Di 2022, pabrik pupuk sudah butuh, sementara ekspor gas melalui pipa dari wilayah kerja di Natuna dan Lapangan Grissik akan selesai. Jadi, Pupuk Kujang dan Sriwidjaja bisa pakai ini,” tutur Djoko. 

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto menambahkan, pasokan gas untuk PIM memang harus menunggu pengembangan beberapa blok migas di wilayah tersebut. Adanya pasokan gas langsung dari pipa diharapkan bisa memangkas harga gas ke PIM.

“Ke depan, kami diskusi agar harganya bisa ditekan dengan memanfaatkan sumber lain. Potensi ada di Blok Andaman I, II, dan III. Dari data yang ada, potensinya bagus,” ujarnya.

Direktur Utama PT Pupuk Indonesia (Persero) Aas Asikin Idat mengungkapkan, masalah kekurangan pasokan gas sudah dihadapi pihaknya. Ditambah lagi, sebagian kontrak pasokan gas yang dimiliki perusahaan pupuk bersifat jangka pendek sekitar 2-3 tahun saja. Pihaknya berharap bisa memperoleh kepastian pasokan untuk jangka panjang.

“Apalagi, mayoritas kontrak gas berakhir di 2021-2022 dan banyak yang belum ada kepastian gasnya, termasuk alokasinya belum kami terima,” jelasnya.

Tidak adanya pasokan jangka panjang, diklaimnya akan berdampak pada kelanjutan operasi pabrik. Aas mencontohkan, pabrik milik PIM akan berhenti operasi seluruhnya jika tidak ada kepastian gas di 2020. Kemudian, sebagian pabrik Pupuk Kujang dan Pusri juga akan menyusul berhenti beroperasi masing-masing di 2023 dan 2024 karena ada kekurangan pasokan. 

Sementara pabrik urea Petrokimia Gresik berpotensi beroperasi pada 2021. Namun diakuinya, tidak adanya pasokan gas jangka panjang ini berkaitan dengan harga gas. Saat ini, harga gas yang dibayarkan pihaknya melebihi keekonomian pabrik, yakni rata-rata US$ 5,8 per mmbtu. 

     Angka ini bahkan lebih tinggi dari harga gas bagi pabrik pupuk di beberapa negara lain, di mana rata-rata US$ 3,95 per mmbtu. Di sisi lain, harga gas ini mencapai 70% dari total biaya produksi.

“Iskandar Muda ada kontrak, tetapi ini belum juga efektif karena harga yang ditetapkan US$ 7,8 per mmbtu. Sriwidjaja ada yang berakhir di 2023-2027 dengan harga US$ 5,2-6 ditambah toll fee. Pabrik Pupuk Kujang berakhir di 2022 dengan harga US$ 5,73-6 per mmbtu. Petrokimia Gresik harga relative besar sekitar US$ 6,36-7,85 per mmbtu,” kata Aas.

Tujuh Proyek

Sementara itu, Djoko melanjutkan telah ada sejumlah proyek gas yang bisa mengamankan pasokan gas untuk pabrik pupuk dan petrokimia di masa mendatang. Dia berharap, pabrik pupuk dan petrokimia dibangun di dekat proyek gas ini. 

“Misalnya bangun [pabrik] di Bintuni, atau [dekat] Sakakemang,” ujarnya.

Dwi menambahkan, terdapat tujuh proyek gas yang bisa menjadi sumber gas bagi industri pupuk dan petrokimia. Total potensi pasokan gas ini mencapai 1.167 juta kaki kubik per hari/MMSCFD. Ketujuh proyek gas ini akan mulai memproduksi gas pada periode 2023-2027.

“Di Sumatera Selatan ada Proyek Sakakemang oleh Repsol SA mulai berproduksi di 2021 sebesar 300 mmscfd, ini bisa dipercepat sebagian,” ujarnya. 

Pembeli gas ini adalah Pupuk Indonesia. Selanjutnya, Proyek PT Pertamina Hulu Energi (PHE) Nunukan 90 mmscfd mulai 2024 dengan pembeli PT Karya Mineral Jaya. Proyek gas di Area Bontang dan Indonesia Deepwater Development (IDD) 100 mmscfd mulai 2023 dengan pembeli PT Kaltim Methanol Industri (KMI) dan Kaltim Pharma Industri (KPI). 

     Proyek Cendana dan Alas Tua oleh PT Pertamina EP Cepu (PEPC) 150 mmscfd mulai 2023. Kemudian, Proyek Kilang Tangguh Train III untuk industri petrokimia masing-masing sebesar 90 mmscfd untuk tahap I di 2022 dan tahap II di 2026. 

Proyek Kasuri oleh Genting Oil dengan pembeli industri petrokimia sebesar 197 mmscfd mulai 2023. Terakhir, Proyek LNG Abadi sebesar 150 mmscfd di 2027 dan akan dipercepat. 

Dwi mengakui, bukan tidak mungkin seluruh produksi gas nasional digunakan di dalam negeri. Namun, hal ini tergantung kesiapan dan kemampuan industri domestik membeli pasokan gas tersebut. Tidak hanya itu, kesiapan infrastruktur distribusi gas juga penting. 

      Mengacu data SKK Migas, penyaluran gas ke dalam negeri hingga September lalu tercatat mencapai 4.013,67 mmscfd dari total lifting gas 6.103,26 mmscfd. Sementara total pasokan gas untuk industri pupuk yakni sebesar 749,44 mmscfd.

Investor Daily, Page-9, Friday, 6 Dec 2019

Next year, Pertamina Oil and Gas Production 923 BOEPD

PT Pertamina (Persero) targets oil and gas production from the oil and gas block it manages to reach 923 thousand barrels of oil equivalent per day (boepd) next year, or up slightly from this year's target of 922 thousand boepd.

Pertamina Upstream Director Dharmawan H Samsu said that the oil and gas production target next year of 923 thousand boepd consisted of oil production of 430 thousand barrels per day (BPD) and gas of 2,857 million cubic feet per har / mmscfd. 

      According to Pertamina's data, the company's oil production is recorded to rise 3.85% from this year's target of 414 thousand BPD, while gas production is down 2.92% from this year's target of 2,943 mmscfd.

"The target 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," he said.

Meanwhile, until the end of this year, the company's oil and gas production is projected at 906 thousand boepd or 98.26% of the target. Specifically, the prognosis of oil production is in accordance with the target of 414 thousand BPD and 2,850 mmscfd or 96.84% of the target.

Dharmawan admitted that this year's oil and gas production was less than optimal due to rig procurement constraints. He said he must ensure that the same problem does not recur in order to pursue the 2020 oil and gas production target.

"It is heavy [with a production target of 923 thousand boepd] because we have to make sure drilling cannot be late. Yesterday we were late because there were no rigs, especially offshore rigs, "he said.

However, he is optimistic that the company's oil and gas production next year will be better. Because, only abroad, Pertamina's oil and gas production will improve. This is because Pertamina's team in Algeria has created a system so that compressor disruption that have an impact on oil and gas production performance this year do not re-occur. 

     So that the company's oil and gas production from foreign assets next year is targeted to increase 3.26% from the prognosis by the end of this year 153 thousand boepd to 158 thousand boepd. In particular, 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.

"Next year's domestic production consists of 323 thousand bpd of oil and 2,559 mmscfd of gas," he said.

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 (PEP), and PT Pertamina EP Cepu (PEPC).

Director of Pertamina Hulu Energi Meidawati added that oil production from its assets in the next year is targeted at 84 thousand BPD and 822 mmscfd of gas. To achieve this target, his party will carry out drilling for the development of 51 wells and exploration of 6 wells, as well as the workover of 50 wells.

"The challenge going forward is fluctuations in oil prices because supply is greater than demand. Then, changes to the gas or LNG market have the potential the decline in gas prices globally, "She said.

Furthermore, Pertamina EP President Director Nanang Abdul Manaf targets the production of assets under management to be stable in 2020. To be precise, Pertamina EP oil production is still targeted at 85 thousand BPD and 965 mmscfd of gas as this year. This is due to a decrease in production in some oil and gas fields, which is offset by an increase in production in other fields.

To achieve the production target, the company plans to drill 108 development wells. In addition to the development well, he also plans to drill 10 exploration wells in 2020. Not only that, but he will also start producing (on stream) a number of oil and gas projects, including the Great Bamboo Field and Akasia Bagus which gives an additional production of around 4,300 BPD.

Investment increases next year, Pertamina budgeted upstream investment of US $ 3.7 billion of the company's total investment target of US $ 7.8 billion. This investment budget is up 53.5% from this year's prognosis of US $ 2.41 billion.

the Merakes Field - Sepinggan 

According to Dharmawan, one of the increases in upstream investment is due to the development of the Merakes Field, the 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 from Italy.

IN INDONESIA

Tahun Depan, Produksi Migas Pertamina 923 BOEPD

PT Pertamina (Persero) menargetkan produksi migas dari blok migas yang dikelolanya mencapai 923 ribu barel setara minyak per hari (barrel oil equivalent per day/ boepd) pada tahun depan, atau naik sedikit dari target tahun ini sebesar 922 ribu boepd. 

Direktur Hulu Pertamina Dharmawan H Samsu menuturkan, target produksi migas tahun depan sebesar 923 ribu boepd tersebut terdiri dari produksi minyak 430 ribu barel per hari (bph) dan gas 2.857 juta kaki kubik per har/mmscfd. Sesuai data Pertamina, produksi minyak perseroan tercatat naik 3,85% dari target tahun ini 414 ribu bph, sementara produksi gas turun 2,92% dari target tahun ini 2.943 mmscfd.

“Target tersebut rencananya akan didapatkan dari kontribusi produksi migas dari operasi hulu Pertamina di dalam negeri sebesar 765 ribu boepd dan luar negeri 158 ribu boepd,” kata dia.

Sementara itu, hingga akhir tahun ini, produksi migas perseroan diproyeksikan sebesar 906 ribu boepd atau 98,26% dari target. Rincinya, prognosa produksi minyak sesuai target 414 ribu bph dan gas 2.850 mmscfd atau 96,84% dari target. 

Diakui Dharmawan, produksi migas tahun ini kurang optimal lantaran kendala pengadaan rig. Pihaknya harus memastikan masalah yang sama tidak terulang agar bisa mengejar target produksi migas 2020. 

“Berat [target produksi 923 ribu boepd], karena kami harus pastikan drilling tidak boleh telat. Kemarin kami telat karena rig toidak ada, terutama rig offshore,” ujar dia. 

Meski demikian, pihaknya optimistis produksi migas perseroan tahun depan akan lebih baik. Pasalnya, di luar negeri saja, produksi migas Pertamina akan membaik. Hal ini mengingat tim Pertamina di Aljazair telah membuat sistem agar gangguan kompresor yang berdampak pada kinerja produksi migas tahun ini tidak kembali terjadi. 

      Sehingga produksi migas perseroan dari aset luar negeri pada tahun depan ditargetkan naik 3,26% dari prognosa akhir tahun ini 153 ribu boepd menjadi 158 ribu boepd. Rincinya, produksi minyak ditargetkan naik sedikit dari 105 ribu bph menjadi 107 ribu bph, serta produksi gas meningkat dari 276 mmscfd menjadi 298 mmscfd.

“Untuk produksi dalam negeri pada tahun depan terdiri dari minyak 323 ribu bph dan gas 2.559 mmscfd,” kata dia. 

Sebagai  informasi, aset blok migas perseroan di dalam negeri dikelola melalui anak usahanya, PT Pertamina Hulu Energi (PHE), PT Pertamina Hulu Indonesia (PHI), PT Pertamina EP (PEP), dan PT Pertamina EP Cepu (PEPC).

Direktur Utama Pertamina Hulu Energi Meidawati menambahkan, produksi minyak dari asetnya di tahun depan ditargetkan sebesar 84 ribu bph dan gas 822 mmscfd. Untuk mencapai target tersebut, pihaknya akan melaksanakan pengeboran pengembangan 51 sumur dan eksplorasi 6 sumur, serta kerja ulang (workover) 50 sumur.

“Tantangan kedepan adalah fluktuasi harga minyak karena supply lebih besar dari demandnya. Kemudian, perubahan pasar gas atau LNG berpotensi penurunan harga gas secara global,” kata Meidawati.

Selanjutnya, Presiden Direktur Pertamina EP Nanang Abdul Manaf menargetkan produksi aset yang dikelolanya bakal stabil di 2020. Tepatnya, produksi minyak Pertamina EP tetap ditargetkan sebesar 85 ribu bph dan gas 965 mmscfd seperti pada tahun ini. Hal ini karena adanya penurunan produksi di beberapa lapangan migas, yang diimbangi kenaikan produksi di lapangan lainnya. 

Untuk mencapai target produksi tersebut, pihaknya berencana mengebor 108 sumur pengembangan. Selain sumur pengembangan, pihaknya juga berencana mengebor 10 sumur eksplorasi di 2020. Tidak hanya itu, pihaknya juga akan mulai memproduksikan (on stream) beberapa proyek migas, diantaranya Lapangan Bambu Besar dan Akasia Bagus yang memberi tambahan produksi sekitar 4.300 bph. 

Investasi meningkat pada tahun depan, Pertamina menganggarkan investasi hulu sebesar US$ 3,7 miliar dari total target investasi perseroan US$ 7,8 miliar. Anggaran investasi ini naik 53,5% dari prognosa tahun ini US$ 2,41 miliar.

Menurut Dharmawan, kenaikan investasi hulu salah satunya lantaran pengembangan Lapangan Merakes, Blok East Sepinggan akan dimulai di 2020. Di blok ini, sebagasi informasi, Pertamina melalui PHE memiliki hak partisipasi (participating interest/PI) sebesar 15%. Sementara operator blok ini adalah ENI dari Italia.

Investor Daily, Page-9, Tuesday, Dec 3,  2019

PHE Continues to Ensure the Smooth Operation of Oil and Gas in NSB

PT Pertamina Hulu Energi (PHE) through its subsidiary PT Pertamina Hulu Energi NSB (PHE NSB) ensures the smooth operation of Block B North Aceh during the contract extension period for one year.

Block B North Aceh

"In this period of extension, of course PHE NSB will continue to ensure smooth operations in Block" B ", while continuing to maintain production in accordance with the target in order to support the national oil and gas needs," said PHE Managing Director Meidawati in Jakarta.

Block B North Aceh

Previously, PHE obtained temporary management rights of Block "B" in North Aceh from the Government for one year from 18 November 2019. The decision on the extension referred to the Ministry of Energy and Mineral Resources Letter No. 512/13 / MEM.M / 2019 dated November 15, 2019 Regarding Regional Temporary Management Work "B" after 17 November 2019.

PHE President Director Meidawati explained that the "B" Block Contract had expired on October 3, 2018. Then there were two extensions with a period of 6 months and one extension with a period of 45 days until ending November 17, 2019. The Aceh Regional Government through the Aceh Oil and Gas Management Agency (BPMA) proposes the management of the "B" Block by using a Cost Recovery contract scheme in accordance with Government Regulation Number 23 of 2015 concerning Joint Management of Upstream Oil and Gas Aceh, while the Government is guided by Ministerial Regulation Number 8/2017 and Ministerial Regulation Number 52/2017 which states the scheme Gross Split contract.

"The Central Government through the Ministry of Energy and Mineral Resources will certainly decide the best for the management of this" B "Block going forward, PHE is in a position to wait while carrying out the best operations possible," Meidawati said.

While the contract extension period of 1 year will be used as well as possible between the two parties to work together to wait for the next government decision regarding the management of Block B.

IN INDONESIA

PHE Terus Pastikan Kelancaran Operasi Migas di NSB

PT Pertamina Hulu Energi (PHE) melalui anak usahanya PT Pertamina Hulu Energi NSB (PHE NSB) memastikan kelancaran operasi di Blok B Aceh Utara dalam masa perpanjangan kontrak selama satu tahun. 

“Dalam masa perpajangan ini, tentu PHE NSB akan tetap memastikan kelancaran operasi di Blok “B”, juga tetap berupaya menjaga produksi sesuai dengan target dalam rangka menunjang kebutuhan migas nasional,” ujar Direktur Utama PHE Meidawati di Jakarta.

Sebelumnya, PHE mendapatkan hak pengelolaan sementara Blok “B” di Aceh Utara dari Pemerintah selama satu tahun terhitung 18 November 2019. Putusan perpanjangan tersebut mengacu pada surat kementrian ESDM Nomor 512/13/MEM.M/2019 tanggal 15 November 2019 Perihal Pengelolaan Sementara Wilayah Kerja “B” pasca 17 November 2019.

Direktur Utama PHE Meidawati menjelaskan Kontrak Blok “B” telah habis masa berlakunya pada 3 Oktober 2018. Lalu dilakukan dua kali perpanjangan dengan periode 6 bulan dan satu kali perpanjangan dengan periode 45 hari hingga berakhir 17 November 2019. Pemerintah Daerah Aceh melalui Badan Pengelola Migas Aceh (BPMA) mengusulkan pengelolaan Blok “B” dengan menggunakan skema kontrak Cost Recovery sesuai dengan Peraturan Pemerintah Nomor 23 tahun 2015 tentang Pengelolaan Bersama Hulu Migas Aceh, sementara Pemerintah berpedoman kepada Peraturan Menteri Nomor 8/2017 dan Peraturan Menteri Nomor 52/2017 yang menyatakan skema kontrak Gross Split.

“Pemerintah Pusat melalui kementerian ESDM tentu akan memutuskan yang terbaik untuk pengelolaan Blok “B” ini kedepan, PHE dalam posisi menunggu sambil menjalankan operasi sebaik mungkin,” kata Meidawati. 

Sambil berlangsung perpanjangan masa kontrak 1 tahun akan digunakan sebaik-baiknya antara kedua belah pihak untuk bersinergi sampai menunggu keputusan pemerintah selanjutnya mengenai pengelolaan Blok B.

Investor Daily, Page-9, Saturday, Nov 23, 2019

Pertamina's oil and gas production target misses

PT Pertamina (Persero) projects oil and gas production to be in the range of 910,000 barrels of oil equivalent per day (mboed) at the end of the year or lower compared to the company's initial target of 922,000 boepd. Pertamina Upstream Director Dharmawan H. Samsu said Pertamina recorded oil and gas production of 894,000 boepd as of September 2019 or 97% of the target set.

The oil and gas production achievements consisted of 410,000 barrels of oil per day (bpd) and 2,806 million cubic feet per day (mmscfd) of gas. This performance due to obstacles in the operations of subsidiaries on the upstream side. For example, the compressor is not optimal at Pertamina International EP Algeria Asset Algeria and the condition of high ambient temperature. In addition, Pertamina Hulu Indonesia experienced a decrease in constraints due to the performance of new wells and well intervention work that was not yet optimal.

"Pertamina will continue to make efforts to achieve the target even though there are upstream subsidiaries who have not yet achieved the oil and gas production target," he said.

According to him, Pertamina's oil and gas production until the end of the year is estimated to be around 910,000 boepd.

"The 910,000 boepd target is specifically 414,000 bpd and 2,928 mmscfd of gas," Dharmawan added.

Annually, Pertamina's oil and gas production performance is also corrected. The company's oil and gas production reached 911,000 boepd as of September 2018. For gas production, the decline was recorded to be very drastic, gas production reached 3,059 mmscfd in the third quarter of 2018. It's just that Pertamina's oil production recorded an increase compared to the same period last year 383,000 bpd.

If we refer to last year's production performance, this year's production projection will grow 18.48% with a target of 910,000 boepd. Over the past year, Pertamina's oil and gas production was recorded at 768,000 boepd, with a contribution of 291,000 bpd of oil and 2,763 mmscfd of gas. The realization of Pertamina's oil and gas production last year also increased significantly compared to the 2017 performance of 542,000 boepd with the realization of 238,000 bpd of oil production and 1,760 mmscfd of oil.

For the 2020 production target, Dharmawan projects that oil and gas production will reach 923,000 boepd. At present, through its upstream subsidiary which manages the majority of fields that have been in production for a long time and belongs to the category of mature fields with a natural decline rate of 50%.

According to him, holding back the rate of natural decline is a major challenge that has been managed well. This is evidenced by the ability of these fields to survive to produce at an aggregate depletion rate that is much lower, even close to 0%.

"Oil and gas is non-renewable energy, and all fields will surely face a rate of decline in natural production," he said.

Furthermore, in 2021, Pertamina is targeting production in the range of 1 million boepd and is targeted to continue to increase in the following years. Currently, Pertamina is also working on 98 projects through a number of subsidiaries. In detail, 47 projects were carried out by PT Pertamina EP, 29 projects by PT Pertamina Hulu Energi (PHE), 19 projects by PT Pertamina Hulu Indonesia (PHI), 2 projects by PT Pertamina EP Cepu (PEPC), and 1 project by PT Pertamina EP Cepu ADK.

IN INDONESIA

Target Produksi Migas Pertamina Meleset

PT Pertamina (Persero) memproyeksikan produksi minyak dan gas bumi akan berada di kisaran 910.000 barel setara minyak per hari (mboed) pada akhir tahun atau lebih rendah dibandingkan dengan target awal perusahaan yang sebanyak 922.000 boepd. Direktur Hulu Pertamina Dharmawan H. Samsu mengatakan Pertamina mencatat produksi minyak dan gas bumi sebesar 894.000 boepd per September 2019 atau 97% dari target yang ditetapkan. 

Capaian produksi migas tersebut terdiri atas minyak 410.000 barel per hari (bph) dan gas 2.806 juta kaki kubik per hari (mmscfd). Kinerja ini  disebabkan adanya kendala dalam operasional anak usaha di sisi hulu. Misalnya saja, belum optimalnya kompresor di Pertamina Internasional EP Asset Algeria dan adanya kondisi high ambient temperature. Selain itu, Pertamina Hulu Indonesia mengalami penurunan kendala karena performa sumur baru dan pekerjaan well intervention yang belum optimal. 

“Pertamina akan terus melakukan upaya untuk mencapai target Walaupun ada anak usaha hulu yang belum mencapai  target produksi migas,” tuturnya.

Menurutnya, produksi migas Pertamina hingga akhir tahun nanti diperkirakan sekitar 910.000  boepd. 

“Target 910.000 boepd ini rincinya inyak 414.000 bph dan gas 2.928 mmscfd,” Dharmawan menambahkan. 

Secara tahunan, kinerja produksi migas  Pertamina juga terkoreksi. Produksi migas perseroan mencapai 911.000 boepd per September 2018. Untuk produksi gas, penurunannya tercatat sangat drastis,  produksi gas sampai mencapai 3.059 mmscfd pada kuartal III/2018. Hanya saja, produksi minyak Pertamina tercatat naik dibandingkan dengan periode yang sama tahun lalu 383.000 bph. 

Jika merujuk kinerja produksi tahun lalu, proyeksi produksi tahun ini tumbuh 18,48% dengan target 910.000 boepd. Sepanjang tahun lalu, produksi migas Pertamina tercatat 768.000 boepd, dengan kontribusi minyak 291.000 bph dan gas 2.763 mmscfd. Realisasi produksi migas Pertamina tahun lalu juga meningkat signifikan dibandingkan dengan kinerja 2017 sebesar 542.000 boepd dengan realisasi produksi minyak 238.000 bph dan gas 1.760 mmscfd. 

Untuk target produksi 2020, Dharmawan memproyeksikan produksi migas perseron mencapai 923.000 boepd. Saat ini, melalui anak usaha sektor hulu yang mengelola lapangan yang mayoritas sudah berproduksi sejak lama dan termasuk kategori mature fields dengan angka laju penurunan alamiahnya mencapai 50 %. 

Menurutnya, menahan laju penurunan alamiah merupakan tantangan utama yang berhasil dikelola dengan baik. Hal ini dibuktikan dengan kemampuan lapangan-lapangan tersebut bertahan untuk berproduksi dengan laju pengurasan secara agregat yang jauh lebih rendah bahkan mendekati 0%. 

“Migas adalah energi yang tidak terbarukan, dan semua lapangan pasti akan menghadapi laju penurunan produksi alamiah,” katanya.

Selanjutnya, pada 2021, Pertamina menargetkan produksi di kisaran 1 juta boepd dan ditargetkan akan seterusnya naik di tahun-tahun berikutnya. Saat ini, Pertamina juga sedang mengerjakan 98 proyek melalui sejumlah anak usahanya. Perinciannya, 47 proyek dikerjakan oleh PT Pertamina EP, 29 proyek oleh PT Pertamina Hulu Energi (PHE), 19 proyek oleh PT Pertamina Hulu Indonesia (PHI), 2 proyek oleh PT Pertamina EP Cepu (PEPC), dan 1 proyek oleh PT Pertamina EP Cepu ADK.

Bisnis Indonesia, Page-24, Thursday, Nov 21, 2019

Government Extends Management of NSB Block

The government has extended the management of the North Sumatra B (NSB) Block starting Monday 18 November 2019. The oil and gas (oil and gas) block is a joint project between PT Pertamina Hulu Energi (PHE) and Aceh's regionally owned business entity (BUMD). Provision of provisional management extension is aimed at providing investment certainty.

"Want to invest, the cooperation must be clear first because if it is not clear how to invest," explained Djoko Siswanto, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM).

For information, previously the Ministry of Energy and Mineral Resources has provided a temporary extension option for 45 days starting October 3, 20 19. But the government then assesses that the 45 day period is too fast. 

    Furthermore, the government hopes that Pertamina Hulu Energi and BUMD can further discuss plans to manage the block in business to business (B2B) and immediately make a decision. The profit sharing scheme for the block is cost recovery. Meidawati, Director of PHE confirmed the news of the NSB Block management extension.

"That's right, a temporary extension for one year," said Meidawati.

Meidawati

Previously, PHE management offered two calculations namely gross split and cost recovery. At that time they did not clearly state the scheme chosen while the Aceh Government consistently requested the use of a cost recovery scheme. Just so you know, the NSB Block was originally under the auspices of ExxonMobil and has been in production since 1977. Negotiations between the central government, regional governments and PHE are indeed very difficult.

IN INDONESIA

Pemerintah Memperpanjang Pengelolaan Blok NSB

Pemerintah memberikan perpanjangan untuk pengelolaan Blok North Sumatra B (NSB) mulai Senin 18 Novenber 2019. Blok minyak dan gas (migas) tersebut  adalah proyek kerjasama antara PT Pertamina Hulu Energi (PHE) dengan badan usaha milik daerah (BUMD) Aceh. Pemberian perpanjangan pengelolaan  sementara itu bertujuan untuk memberikan kepastian investasi. 

"Mau investasi kan, kerjasamanya harus jelas dulu karena kalau belum jelas bagaimana mau  investasi," terang Djoko Siswanto, Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM).

Sebagai informasi, sebelumnya Kementerian ESDM telah memberikan opsi perpanjangan sementara selama 45 hari mulai 3 Oktober 20 19. Namun pemerintah kemudian menilai jika waktu 45 hari tersebut terlalu cepat. Selanjtnya pemerintah berharap, Pertamina Hulu Energi dan BUMD dapat membahas lebih lanjut  rencana pengelolaan blok secara business to business (B2B) dan segera mengambil keputusan. Adapun skema bagi hasil untuk blok itu yakni cost recovery. Meidawati, Direktur PHE membenarkan kabar perpanjangan pengelolaan Blok NSB. 

"Benar, perpanjangan sementara selama satu tahun," tutur Meidawati

Sebelumnya, mananajemen PHE menyodorkan dua penghitungan yakni gross split maupun cost recovery. Saat itu mereka belum secara jelas menyebutkan skema yang dipilih sementara Pemerintah Aceh konsisten tetap meminta penggunaan skema cost recovery. Asal tahu, semula Blok Blok NSB berada di bawah naungan ExxonMobil dan berproduksi sejak 1977. Negosiasi antara pemerintah pusat, pemerintah daerah dan PHE  memang sangat sulit.

Kontan, Page-14, Tuesday, Nov 19, 2019