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Showing posts with label Pertamina. Show all posts
Showing posts with label Pertamina. Show all posts

Monday, September 25, 2023

Overcoming oil and gas BIG challenges in Indonesia

    The allure of upstream oil and gas investment in the country is increasingly attractive, as reflected in the commitment of a number of Cooperation Contract Contractors (KKKS) to continue investing in exploration activities.

    A number of global oil and gas giants have also agreed to achieve a large target of oil production of 1 million barrels per day (BPD) and gas of 12 billion standard cubic feet per day (BSCFD) by 2030.



    Through the signing of the Bali Commitment which was carried out at the CEO Forum at the 2023 International Convention on Indonesian Upstream Oil and Gas at the Bali Nusa Dua Convention Center, Badung Regency, Bali, Thursday, September 21. 

    The KKKS CEOs also promised to prepare a massive 2024 work program and budget, aggressive, and efficient. According to reviews by CEOs of international and national oil and gas companies, Indonesia is still an important portfolio. 

    Starting from oil and gas companies from Italy, namely ENI, ExxonMobil (United States), Petroliam Nasional Berhad or Petronas (Malaysia), Repsol SA (Spain), British Petroleum (England), to PT Medco Energi Internasional Tbk, and PT Pertamina ( Persero) invests more heavily in the oil and gas sector.

Roberto Daniele

    Director of ENI Muara Bakau BV, Roberto Daniele, said he was serious about investing more intensively in the exploration side of oil and gas fields. Currently, ENI together with PT Pertamina (Persero) have established strategic cooperation to carry out joint exploration in the Mahakam Block. 

the Mahakam Block

This collaboration is expected to increase oil and gas reserves. Roberto Daniele said ENI Muara Bakau BV is collaborating with Pertamina to explore the oil block  in Mahakam to look for other oil and gas sources throughout Indonesia.

    Apart from that, ENI will also carry out more massive drilling for wells and exploration in the next 4 years. According to Roberto Daniele, this commitment shows Indonesia's important position in the company's portfolio. 

    Moreover, Indonesia still has large oil and gas reserves. Based on records from the Ministry of Energy and Mineral Resources, Indonesia's proven natural gas reserves even reach 41.62 trillion cubic feet (TCF). Apart from that, Indonesia still has 68 potential basins that have not been explored.

Carole Gall

    President of ExxonMobil Indonesia Carole Gall said that Indonesia has all the segments that ExxonMobil must offer. We have upstream and downstream such as fuel, lubricants, chemicals, and energy transition. Of all the Exxon affiliates in the world, it is rare to have all segments in one place together, but Indonesia has it all. 

    It is not surprising that ExxonMobil remains committed to continuing exploration investments in a number of fields and open areas. Carole Gall said ExxonMobil would drill again in Banyu Urip for 1.5 years.

    Nevertheless, a number of problems still confront the national upstream oil and gas industry, at least There are a number of crucial things that investors should note, including contract certainty, competitive and durable regulations, and ease of investing. 

    The Indonesian government is asked to increase the competitiveness of investment in upstream oil and gas by improving a number of fiscal and non-fiscal policies at a time of increasingly tight competition with a number of countries.

    In accordance with the above, Carole Gall asked the Indonesian government to improve the terms and conditions of upstream oil and gas, especially related to the terms and procedures for procurement of goods and services and auctions for oil and gas projects after approval of the Plan of Development/PoD for oil and gas fields have been obtained by the contractor. 

    According to Carole Gall, the process of procuring goods or auctioning oil and gas projects that is too long makes the return on investment and sustainability of the project unattractive for investors.

    Similar complaints were also made by other KKKS, including PetronasThis oil and gas company from Malaysia highlights the issue of certainty in contracts and fiscal terms in the oil and gas industry. 

Yuzaini Bin Md Yusof

    Petronas will support the Indonesian government to produce 1 million barrels of oil. Petronas Indonesia CEO Yuzaini Bin Md Yusof said Petronas would explore new areas in Indonesia.

INVESTMENT OPPORTUNITIES


    Meanwhile, Dwi Soetjipto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK MIGAS), emphasized that Indonesia continues to Offer investment opportunities in the oil and gas sector and is ready to improve fiscal policy and provide various incentives. 

    Dwi Soetjipto said that in overcoming the energy trilemma, a broader collaborative effort is needed between the government, IOC, NOC, and policymakers, namely the Indonesian government. In line with this, investment support is needed so that exploration and development activities for oil and gas fields can be carried out on a massive scale.

    Responding to various input and complaints submitted by energy observer investors and founder of the ReforMiner Institute, Pri Agung Rakhmanto assessed the need for regulations regarding the latest time limit from processing to reaching the PoD approval decision. Pri Agung Rakhmanto said that the longer it takes, the relative economic value will decrease, and also increase the uncertainty factor if there is no decision immediately.

    Meanwhile, based on SKK MIGAS calculations, the oil and gas sector requires a very large investment of more than US$ 20 billion per year to support the 2030 oil and gas production target. Overall, the funding requirement reaches at least US$ 186.7 billion. to be able to achieve the oil production target of 1 million BOPD and natural gas 12 BCSFD by 2030.

Bisnis Indonesia ,Page-4-Saturday, Sept 23, 2023

Monday, June 19, 2023

Pertamina Strengthen Brand in Global Market


    PT Pertamina through its subsidiaries is increasingly strengthening its Brand in the global market. This is evidenced by a number of collaborations carried out within the scope of several activities, namely upstream oil, and gas, export and sale of products, to shipping cooperation.

    The latest is the signing of a new hydrocarbon contract by Pertamina through its Sub Holding Upstream subsidiary, PT Pertamina Internasional EP (PIEP) which operates in Algiers under PT Pertamina Algiers EP (PAEP), at Menzel Lejmat Nord (MLN), Block 405. Investment funds amounting to US$ 800 million are ready to be released to fund the project.

    PIEP and its partners Sonatrach and Repsol Exploracion 405a SA continue to demonstrate their ability to operate onshore oil and gas blocks. With this trust, the production sharing contract signed is a continuation of the memorandum of understanding agreed between the three companies on September 28, 2022. 

    The joint operation under the contract mentioned above is the MLN field and nine other fields which include the unitization of Ourhoud and El Merk.

    The work program specifically includes the drilling of 12 oil wells and water injection wells, the connection of new development wells, the construction of an LPG extraction unit, and a 3D WAG (Water Alternating Gas) seismic acquisition project, as well as a solar energy production project. 

    The total investment amount planned for the implementation of this development is estimated at more than US$ 800 million and the total resources are almost 150 million barrels of oil equivalent.

    The signing of this contract is in accordance with the wishes of the three partners to realize it within the MLN contractual scope and to strengthen the work in the field of exploration and production of hydrocarbons.

Nicke Widyawati

    The signing of this contract was witnessed by the President Director of PT Pertamina Nicke Widyawati, the Main Director of PT Pertamina Hulu Energi Wiko Migantoro, The President Director of PT Pertamina Internasional EP Jaffee A. Suardin, Group CEO Sonatrach Toufik Hakkar, and other partners Repsol Algiers and Algiers authorities. During the signing ceremony, Nicke Widyawati expressed her appreciation.

"After perfect contract preparations, Pertamina and its partners have finally agreed on a new journey for oil and gas operations in Algiers. Our commitment for the long term will be a new and exciting journey, reaffirming Pertamina's global footprint together with Sonatrach, and Repsol," said Nicke Widyawati.

    Nicke Widyawati said the oil and gas block in Algeria is one of the mainstays of oil and gas production from abroad for Pertamina.

"The acquisition of oil and gas blocks abroad with the concept of "bring the barrel home" is a strategic step for Pertamina to maintain national energy security," said Nicke Widyawati.

    Nicke added, in this new contract, apart from crude oil production, Pertamina was also given a permit to build an LPG factory with a capacity of 1 million metric tons per year, where the product will be brought to Indonesia.

"With this new innovation, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke Widyawati.

    At the same time, the Algiers oil and gas block also has the potential in developing renewable energy, especially Solar PV which will be utilized as a green electricity supply for oil and gas block operations.

"This is a form of Pertamina's very strong commitment to reducing carbon emissions in all of its business activities in line with the application of ESG," said Nicke Widyawati.

    Jafee said PIEP has the potential to produce peak production in block 405a of 36,000 BOEPD and open up new development opportunities in the surrounding area in the next 25 years, and the potential for an additional 10 years of a contract extension.

"This reflects Pertamina's strong projection going forward in line with Pertamina's main strategy to become a world-class energy company," said Jaffee.

    Menzel Ledjmet Nord (MLN) Oil Field Algiers is one of the oil and gas fields in the Sahara Desert, Algiers which has been fully operational by PT Pertamina since May 2014, through the Upstream Subholding.

    This block has an oil capacity of 35,000 barrels of oil per day (BOPD) and has 58 solar panels that produce 1,141 kilowatt hours (kWh) per year, resulting in reduced emissions of up to 7,507 tons of C02 per year.

    Pertamina as a leader in the field of energy transition, is committed to supporting the Net Zero Emissions 2060 target by continuing to encourage programs that have a direct impact on the achievement of the Sustainable Development Goals (SDGs). 

    All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all of Pertamina's business lines and operations.

    Pertamina Internasional Exploration and Production (PIEP) was established based on the need for international asset management which focuses on managing PT Pertamina's foreign assets. 

    Until now, Pertamina has foreign oil and gas field assets spread across 13 countries, namely Algiers, Malaysia, Iraq, Canada, France, Italy, Namibia, Tanzania, Gabon, Niger, Colombia, Angola, and Venezuela. 

    From 2014 to 2021, PIEP contributed as much as 51 million barrels of oil, or around US$ 2.8 billion to be shipped domestically.

    Another subsidiary is PT Pertamina International Shipping (PIS) through Pertamina International Shipping Pte Ltd which is domiciled in Singapore. This company continues to develop its business wings in the Asia Pacific region so that it transforms into PIS Asia Pacific (PIS AP). 

    The establishment of PIS AP is focused on serving export and import cargo transportation in the international market. PIS is also increasingly aggressively expanding in the global market and has successfully traveled as many as 22 international routes until early 2023.

    Meanwhile, PT Pertamina Lubricants (PTPL), a Subholding Commercial & Trading subsidiary of Pertamina, has owned the Lubricants Technology Center (LTC), the largest lubricants research and innovation center in Indonesia, located in Plumpang, North Jakarta. 

    With an area of 12,500 mz, LTC is equipped with modern facilities and professional human resources to meet the needs of lubricants in the Indonesian market and 14 countries in the world including Australia, Thailand, and South Africa.

Investor Daily, Page-13, Monday, June 19, 2023

Pertamina Builds LPG Factory in Algiers

 


    PT Pertamina has confirmed that it will build a Liquefied Petroleum Gas or LPG factory with a capacity of 1 million metric tons per year in Algiers.

Nicke Widyawati

    The Main Director of Pertamina, Nicke Widyawati, said that her party had obtained a permit to build an LPG factory from the Algerian authorities, because it was part of the management contract for the Menzel Ledjmet Nord Block. Later, products produced from these factories will be brought to Indonesia with the aim of reducing imports of these commodities.

"With this new innovation, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke Widyawati.

    In Algeria, Pertamina through PT Pertamina Algiers EP has just received a contract extension for the Menzel Ledjmet Nord Block for the next 35 years.

    The Algerian authorities granted the contract extension because they assessed that Pertamina, Sonatrach, and Repsol Exploration 405a SA were capable of managing the onshore oil and gas block well. The block is also one of the mainstays of Pertamina's oil production from abroad.

"The acquisition of oil and gas blocks abroad with the concept of "bring the barrel home" is Pertamina's strategic move to maintain national energy security," said Nicke Widyawati.

    Menzel Ledjmet Nord Oil Field is an oil and gas block located in the Sahara Desert, approximately 1,000 kilometers southeast of Algiers, the capital city of Algiers. Pertamina Algiers EP has fully managed Menzel Ledjmet Nord Oil Field operations since 2014 with a total Participating Interest (PI) of 65%.

    The block has an oil capacity of 35,000 barrels of oil per day (BOPD), with an average oil production from January to May 2023 reaching 14,875 bpd.

    Not only producing oil, the operator of the Menzel Ledjmet Nord Block also installed S8 solar panels which generate 1.141 kWh of electricity per year, and can reduce carbon emissions by up to 7,507 tons of CO2 equivalent per year.

Bisnis Indonesia, Page-4, Monday, June 19, 2023

Saturday, June 10, 2023

Shell Finally sold 35% Participating Interest shares to Pertamina

Shell Deal with Pertamina

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that the process of transferring Shell's Participating Interest (PI) shares to Pertamina of 35% in the Masela Block will be completed. 

    In fact, according to him, the release price for PI shares offered by Shell is now far below US$ 1 billion, unlike anything previously offered. Previously, Shell extorted the Indonesian government up to US$ 1.4 billion or around Rp. 21 trillion to sell a 35% participating interest to Pertamina.

    According to Arifin, the process of transferring Shell's 35% Participating Interest (PI) shares in the Masela Block will use an acquisition or business-to-business scheme, not through contract termination. 

    There is an option that the Indonesian government can terminate Shell's contract in the Masela Block if the company is still the troublemaker in the process of releasing the 35% Participating Interest (PI) shares.

the Masela Block project

    In the Plan of Development (PoD) document it is stated that if five years since the PoD was signed in 2019 then the Masela Block project has not made significant progress from SHELL, then this jumbo gas block can be returned to Indonesia, and it is proven that SHELL has not done anything for 5 years in the Abadi Masela Oil and Gas block. 

    The acquisition price of 35% SHELL shares is below US$ 1, which is only US$ 500 million or around Rp. 7.5 Trillion.

Inpex Corporation

    Arifin also said that Inpex Corporation from Japan as the operator would also revise the Masela Block development plan (PoD). 

    This is in line with the company's plan to include Carbon Capture, Utilization, and Storage (CCUS) facilities in the jumbo project.

"Otherwise, there will be less pressure on funding for this fossil energy project to become unattractive, except for renewable energy. 

    In order for this gas to become clean gas, a cost must be included. within Indonesia," said Arifin.

President Director of PT Pertamina Nicke Widyawati

    Previously, President Director of PT Pertamina (Persero) Nicke Widyawati said that currently, his party was finalizing the process of transferring the participating interest shares with Shell. 

    However, Nicke could not speak further because he was bound by a Non-Disclosure Agreement/NDA or a confidentiality agreement.

       Nicke realizes that currently, the Indonesian people are looking forward to the development of the Masela Block. 

    Therefore, this Indonesian oil and gas company will be committed to immediately developing gas in the jumbo block.

"Of course, the people really hope that this gas giant block can be worked on immediately, so Pertamina's entry into it is our commitment to develop as soon as possible so that the gas in the Masela block can be monetized and generate state revenue and create a national economy," said Nicke.

    The Masela Block is a National Strategic Project (PSN) and is targeted to produce very large gas, namely 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and 150 MMSCFD of pipeline gas, as well as 35,000 barrels oil per day (BOPD).

    Currently, the Masela Block is still being managed by Inpex Masela Ltd Japan which acts as the operator and holds a 65% participating interest, and 35% is owned by Shell which will soon belong to Pertamina.

This project is said to be "giant" because it is estimated to cost up to US$ 19.8 billion. 

    The manager of this block, Inpex, and the new partner, will later build a Liquefied Natural Gas (LNG) refinery on land, which was initially targeted to be operational in 2027. The latest progress, the operation of this project is estimated to be late to 2029 due to the actions of the SHELL zonk which did nothing for 5 years since the project was signed in 2019.

Wednesday, February 22, 2023

Pertamina Add 10% Participating Interest in Iraq

PT Pertamina Internasional EP (PIEP) through its direct subsidiary, namely - PT Pertamina Iraq EP has purchased 10% Participating Interest (PI) from ExxonMobil Iraq Limited's (EMIL). 

The field operated by EMIL as the Lead Contractor is in the southern part of Iraq, close to the city of Basra which is 400 km southeast of the capital Baghdad.

Since obtaining cooperation contracts in several countries, PIEP has carried out its commitment as a partner who has added value in various aspects of operations and always prioritizes active collaboration with various partners in all of its operations. 

In its operations in West Qurna 1, PIREP as a direct subsidiary of PIEP partners very harmoniously with EMIL, ITOCHU, PetroChina, and Oil Exploration Company (OEC) Iraq. This is proven by the completion of the 10% PI purchase at the end of 2022.

Wiko Migantoro, the Main Director of Pertamina Hulu Energi as Subholding Upstream Pertamina, expressed his gratitude to all stakeholders who have helped. 

"All the main stakeholders in Iraq continue to place their trust in Pertamina to continue its existence as an important partner in the management of the West Qurna 1 operating field," said Wiko.

While John Anis, Main Director of PIEP also emphasized, "With a total of 20% PI, Pertamina's role as a partner that has good performance, is reliable and continues to grow to carry out active cooperation with all partners, especially EMIL in supporting its work program to develop West Qurna 1 to achieve its best potential in producing oil in the field and continue to provide added value to other partners."

John Anis further added, "in 2023 and in the future, PIEP can ensure that this acquisition can provide additional production to Pertamina's Upstream Subholding of 100,000 BOPD and it is hoped that this production can continue to increase in accordance with the potential of the West Qurna 1 field".

"With the spirit of Go Global, Pertamina believes that with a strong commitment to continue to grow and develop, it will strengthen its position as a World Class National Energy Company," concluded Wiko.

PT Pertamina Hulu Energi (PHE) as Subholding Upstream through PT Pertamina Internasional EP (PIEP) plays a key role in cooperation with foreign partners, especially in the field of Oil and Gas Exploration and Production which operates on 4 continents and 12 countries, one of which is oil and gas operations in Iraq which has one of the largest oil and gas reserves in the world. 

Other countries are Algeria, Malaysia, Canada, Colombia, France, Gabon, Italy, Myanmar, Namibia, Nigeria, and Tanzania.

One of the main objectives of establishing PIEP by PT Pertamina (Persero) is to strengthen the role of PT Pertamina (Persero) in managing national energy security, by increasing oil and gas reserves and production from overseas assets and operations.

Since its establishment, PIEP has been committed to contributing by bringing products from abroad to Indonesia (Bring Barrels Home) to meet the needs of PT Pertamina (Persero) refineries, as well as a form of PIEP's contribution in filling the gap between demand and supply of oil and gas in Indonesia.

Based on PIEP's 2021 Financial Report, from 2014 to 2021, PIEP has contributed as much as 51 million barrels of oil, or around US$ 2.8 billion to be sent domestically. This means that PIEP has contributed to improving Indonesia's balance of payments. About more than 80% of the oil produced from abroad has been sent to domestic refineries.

PIEP's net profit in 2021 recorded the highest record with an achievement of US$ 254.98 million or grew 134.31% year on year (YOY). In 2021, PIEP has succeeded in implementing the OPTIMUS project which is a net profit optimization program with a total achievement or exceeding 377% of the optimization target of US$ 11.06 million. This achievement consisted of additional revenue growth of US$3.24 million which was an acceleration of Place Into Service (PIS) in Algeria and US$38.49 million which came from cost optimization. 

PIEP's net profit in 2021 recorded the highest record at US$ 254.98 million which grew by 134.31% (YOY).

PIEP's crude oil production in 2021 was realized at 96.67 MBOPD or 101.43% of the target of 95.31 MBOPD and the realization of PIEP's natural gas production in 2021 was recorded at 326.61 MMSCFD or 104.54% of the target of 312.42 MMSCFD.

Investor Daily, Page-10, Tuesday, Feb 21, 2023

Saturday, December 10, 2022

Forbes Selects Nicke Widyawati Again in the List of 100 Influential Women in the World

    Main Director of PT Pertamina (Persero) Nicke Widyawati is back on the list of 100 world's most powerful women (The World 100 Most Powerful) Women) Forbes for 2022. Nicke is one of two Indonesian women who are included in this list. 

Forbes #49 Nicke Widyawati

    She is ranked 49th and the Minister of Finance of the Republic of Indonesia, Sri Mulyani, is ranked 47th. 

Forbes #47 Sri Mulyani

The top position is held by the President of the European Commission, Ursula von der Leyen.

Nicke Widyawati

    Forbes explains that the list is determined by four main metrics, namely income, media, impact, and sphere of influence.

“For political leaders, we weigh gross domestic product and population; for company leaders, revenue and number of employees; and the media mentions and reaches all. The result is a collection of women who are challenging the status quo,” wrote Forbes.

    Because Pertamina is a state-owned company, Nicke as the female Main Director is considered capable of leading a company that supports the decisions of the Indonesian government. 

    Forbes also stated that Pertamina is the largest gas importer in Asia. The Main Director of PT Pertamina (Persero), Nicke Widyawati, assessed that this recognition was inseparable from the support of all management and workers.

"I am grateful and thankful for the good judgment and recognition from the international community. This is the result of Pertamina's collaboration with all stakeholders, and will be a motivation to be even better going forward," said Nicke.

    In addition, when Indonesia hosted the G20 Presidency, Nicke served as Chair of the B20 Energy, Sustainability & Climate Task Force. Apart from Nicke Widyawati, other names from the energy sector were listed including Catherine MacGregor from the French energy company Engie, Sinead Gorman who is the CFO of Shell, and Lynn Good from the US energy company Duke Energy. Nicke has previously been included in Fortune and Forbes lists of internationally influential women in 2020 and 2021.

Investor Daily, Page-9, Saturday, Dec 10, 2022

Thursday, November 4, 2021

Pertamina Synergizes with ExxonMobil

 


    Erick Thohir wants SOEs to follow the principles of a green economy in transforming their business.

Erick Thohir

    PT Pertamina Holding synergizes with ExxonMobil in the development of carbon capture and utilization and storage (CCUS) technology. The cooperation was carried out by Pertamina in line with the business transformation steps towards a green economy.

“The application of CCUS technology is part of Pertamina's energy transition to clean energy agenda.

Nicke Widyawati

    This low-carbon technology will support Pertamina's business sustainability in the future," said Pertamina President Director Nicke Widyawati.

    Nicke and ExxonMobil Indonesia President Irtiza H Sayyed have signed a memorandum of understanding at the United Nations Climate Change (PEB) Summit in Glasgow, Scotland, Monday (Nov 1, 2021).

    Nicke said the challenge in developing CCUS lies in the large investment value and the economic value that is not yet ideal. In responding to this challenge, Pertamina continues to synergize and cooperate with various world oil and gas companies so that it can accelerate the implementation of CCUS through technology transfer, joint development, and increased capacity building. Together with ExxonMobil, Nicke added, Pertamina will also develop the application of low-carbon technology to achieve net-zero emissions in promoting global climate goals.

    Nicke explained that the CCUS technology was applied through the application of a carbon dioxide (CO2) injection process into the subsurface layer to be applied in depleted reservoirs in Pertamina's working area, as well as assessing the potential for hubs and cluster schemes. Nicke said Pertamina had initiated several CCUS projects in the oil and gas field with the potential to reduce carbon dioxide up to 18 million tons in relation to reducing emissions in the upstream sector.

    One of the CCUS technology developments was carried out in the Gundih Field, Cepu, Central Java, which is integrated with Enhanced Gas Recovery (EGR) technology and has the potential to reduce around 3 million tons of CO2 in 10 years, including increasing oil and gas production. Nicke said the project is planned to be operational in 2026.

    Nicke added that Pertamina and ExxonMobil will also study the sharing of technical subsurface data needed for the assessment of subsurface formation as a place to store CO2 and its characteristics at certain locations in Indonesia. The two companies will also review the sharing of infrastructure data including data on pipelines, facilities, and wells to evaluate the reuse of existing infrastructure for transportation. 

    Nicke said the government has set a roadmap for the transition of energy from fossil to new and renewable energy that is in line with the principles of energy security, accessibility, and affordability.

"From that perspective, Pertamina will continue to strive for a balance between the climate change agenda and energy security in Indonesia and also for the company's sustainability," said Nicke.

State-Owned Enterprises (BUMN)

    The Ministry of State-Owned Enterprises (BUMN) continues to encourage Pertamina to synergize with various parties, including global companies in the development of CCUS technology.

"This CCUS collaboration is a step to make it happen. This partnership is very important to reduce the effect of greenhouse gases and increase the national oil gas production capacity," said SOE Minister Erick Thohir.

    The Ministry of SOEs has also introduced a sustainable policy, namely an environmentally friendly lifestyle (eco-lifestyle). Erick said the policy was aimed at creating a better place for the future generation of Indonesia through green energy initiatives.

Credit Photo by Christopher Furlong / POOL / AFP
President Joko Widodo - PM Boris Johnson

    In a bilateral meeting between President Joko Widodo (Jokowi) and British Prime Minister (PM) Boris Johnson on the sidelines of the COP26 World Leaders Summit, at the Scottish Event Campus, Glasgow, Scotland, Monday (1 Nov 2021), Erick said, international trust The positive projection of Indonesia's economic growth in the future must be responded with full responsibility.

    According to Erick, the plans of several countries to invest to develop and accelerate the green economy in Indonesia will be a challenge for SOEs. Erick said that if President Jokowi emphasized green investment and technology as the key to the green economy transition, Johnson conveyed the UK's interest in investing in the form of export credits that could be used for the green economy transition.

    Erick sees this as an opportunity that must be implemented so that the transformation carried out by SOEs must uphold the principles of clean energy transformation while accelerating the green economy.

"I hope that our energy SOEs, such as PLN, Pertamina, and the mineral and coal industries can respond and carry out the transformation of clean energy and reduce carbon emissions. After all, this is a shared responsibility for the sustainability of our environment," said Erick.

    Erick added that SOEs' intensive efforts to transform by carrying out various programs and business model innovations must view the responsibility to reduce emissions not as a burden, but also as an opportunity to carry out a low-carbon economic transformation.

Republika, Page-9, Thursday, Nov 4, 2021

Nicke Wins Asia Pacific Women Empowerment Principles 2021

    Pertamina President Director Nicke Widyawati won the 2021 Asia-Pacific Women Empowerment Principles (WEPs) award in the Leadership Commitment category. Nicke is recognized worldwide as having played an important role in realizing the company's strong commitment to encourage the presence of policies, regulations, or practices aimed at advancing gender equality in the workplace.

Nicke Widyawati

    In the Leader Commitment category, Nicke is considered to have proven his commitment as a company leader who has specific roles and responsibilities to promote gender equality in the company environment. This is evidenced by the increasing percentage of women occupying management positions in the company.

    Through the Pertiwi community (Pertamina's women's worker community), Pertamina has implemented an educational and socialization action program on gender equality. The Asia-Pacific WEPs 2021 assessment goes through a process of verification of supporting documents, due diligence, and the assessment of experts who are professional, competent, and knowledgeable about practices in the private sector that sustainably promote gender equality and women's empowerment.

"We should be grateful that the world community has recognized Pertamina's commitment to promoting gender equality. So that Pertamina's women can act as catalysts that color all company policies and programs," said Nicke.

    This award from the Asia-Pacific WEPs 2021 further motivates Pertamina to strengthen its commitment to screen the broadest talent in business companies, improve company competitiveness, fulfill corporate responsibility and sustainability commitments, the corporate model of behavior reflects community expectations for the company, employees, citizens, and families, and promote sustainable development in the countries where it operates.

Investor Daily, Page-10, Wednesday, Nov 3, 2021

Pertamina Cooperates with ExxonMobil to Develop Low Carbon Technology

 


    PT Pertamina and ExxonMobil are collaborating on the application of low-carbon technology and Carbon Capture and Utilization and Storage (CCUS). This collaboration will strengthen the sustainable strategic partnership between PT Pertamina and ExxonMobil that has existed since the 1970s in the upstream sector and also in the downstream sector some time ago.

Nicke Widyawati

    Pertamina President Director Nicke Widyawati and ExxonMobil Indonesia President, Irtiza H. Sayyed have signed a memorandum of understanding witnessed by the Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia, Luhut Binsar Panjaitan, Coordinating Minister for Economic Affairs Airlangga Hartarto, SOE Minister Erick Thohir, and Deputy SOE Minister Pahala N. Mansury and Minister of Energy and Mineral Resources Arifin Tasrif, Monday (1 Nov 2021) at the United Nations Climate Change Summit in Glasgow, Scotland, which will take place 1-10 November 2021.

    The application of CCUS technology is part of Pertamina's energy transition to the clean energy agenda. This low-carbon technology will support Pertamina's business sustainability in the future," said PT Pertamina President Director Nicke Widyawati.

    The challenge in developing CCUS lies in the large investment value and the economic value that is not yet ideal. In responding to this challenge, Pertamina continues to synergize and cooperate with various world oil and gas companies so that it can accelerate the implementation of CCUS through technology transfer, joint development, and increased capacity building.


    Together with ExxonMobil, Pertamina will develop the application of low-carbon technology to achieve net-zero emissions in promoting global climate goals. CCS technology is applied through the application of a CO2 injection process into the subsurface layer to be applied to depleted reservoirs in Pertamina's working area, as well as assessing the potential for hubs and cluster schemes.

Investor Daily, Page-10, Wednesday, Nov 3, 2021

Monday, August 9, 2021

Weaving Hope on a New Sheet

    Nearly a century ago, efforts to get crude oil out of Central Sumatra began as the beginning of Chevron's footprint in Indonesia. Now, a new leaf has opened and the story is ready to change.

    In 1924, Socal geologists led by E. M. Butterworth began to set foot in the Dutch East Indies (another name for Indonesia during the Dutch colonial period). Exploration efforts have not been easy, a decade after exploration began, these efforts have yet to bear fruit.

    Exploration activities carried out through the Nederlandsche Pacific Petroleum Maatschappij (NPPM) company also often get ridicule from competitors with the nickname Non-Producing Petroleum Maatschappij or oil companies without production.

    Not only that, in 1930 the Dutch geologists made a report predicting no oil in Central Sumatra. He stated that the area contained many layers of granite sediment that could not contain hydrocarbons.

    However, these conditions did not make Socal geologists despair to find the content of crude oil. After almost drilling 3,000 holes, finally, the potential for oil was found in Duri Field, Bengkalis.

    Starting April 1952, Minas Field started production for the first time and in February 1954, Duri Field started production. The oil produced from the two fields is 42,800 barrels per day (BPD).

the Rokan Block Chevron in Sumatra

    From the first barrel of oil was lifted in 1952 until the expiration of Chevron's production sharing contract in the Rokan Block on August 8, 2021, the total crude oil produced from the Rokan Block and three other blocks has reached 12 billion barrels. During its operation, Chevron has left various legacies in Riau, from infrastructure development to improving human resources.

    The first infrastructure built by Chevron was the construction of Duri-Dumai Road in 1958. One year later, the Siak River Pontoon Bridge and the 180-kilometer Pekanbaru-Dumai road were completed and inaugurated.

    Chevron also built SMA 1 Pekanbaru which was the first high school in Riau at that time. Chevron also inherited SMA 1 Minas, SMA 1 Dumai, Polytechnic Caltex Riau, Darmasiswa Chevron Riau, to Energy Corner which is a library in Riau.

    This legacy will become Chevron's eternal legacy in Indonesia after the end of Chevron's Rokan Block management period on August 8, 2021, at 24.00 WIB, at midnight.


    This is in accordance with the Indonesian government's decision in July 2018 which decided that the Rokan Block would be managed by PT Pertamina (Persero) after the PT Chevron Pacific Indonesia (CPI) contract ended.

    In its journey, the management of the Rokan Block has gone through many dynamics. Starting from investment agreements during the transition period to contain the decline in production rates, the complexity of developing an enhanced oil recovery (EOR) formula, to the transfer of power plants in the Rokan Block.

PERTAMINA'S EFFORT

    PT Pertamina, through PT Pertamina Hulu Rokan (PHR), as the relay winner for the management of the Rokan Block, has long ago designed and implemented a transition program so that the operational performance of the work area is not disrupted.

    Pertamina Hulu President Director Rokan Jaffee A. Suardin said all stages of the nine transition programs had been implemented. Jaffee said that in the Rokan Block, his party manages a working area of ​​6.453 km2 with 10 main fields, namely Minas, Duri, Bangko, Bekasap, Balam South, Batak City, Farmers, Pematang, Petapahan, and Pager.

"By switching operatorship from CPI to PHR, we will make maximum efforts to maintain and continue to carry out massive operating activities to increase oil and gas production so that we can meet the national target of 1 million barrels in 2030," he explained.

    The oil production target of 1 million BPD in 2030 is indeed reasonable to mention. How not, the Rokan Block has now become one of the backbones of national oil production so that the government's ambitious target is highly dependent on the performance of the block. In the hands of Pertamina, production in the Rokan Block is even targeted to reach 175,000-180,000 BPD.

The Rokan Block Oil Working Area

    This target is higher than the production target set in the 2021 State Revenue and Expenditure Budget (APBN) of 165,000 BPD. The increase in production will result from the increase in the number of drillings that will be carried out by Pertamina.

    For the drilling program, PHR will drill 84 wells and the CPI program plans to carry over 77 wells to PHR, bringing a total of 161 wells during August-December 2021.

    To support the smooth running of these drilling activities, as many as 291 contracts were mirrored and have been completed 100%. In addition, 60 new contracts for pre-EOC needs have been awarded 100% progress status.

    Oil and gas practitioner Tumbur Parlindungan said there are a number of important things that need to be considered by Pertamina when managing the Rokan Block, including maintaining production capacity and technology transfer.

    With the entry of Pertamina, it is hoped that there will be new sources in the Rokan Block. The reason is, with the condition of the field being old, Pertamina cannot rely solely on the existing field.

"If there are no new findings, production will not be able to increase," said Tumbur.

    Meanwhile, for technical issues, Pertamina inevitably has to cooperate with strategic partners to be able to obtain the better technology needed to manage the Rokan Block.

    Executive Director of ReforMiner Komaidi Notonegoro believes that in the oil and gas business, it cannot only refer to an increase in certain target volumes, but it is also necessary to pay attention to more economical production costs.

According to him, if production in the Rokan Block is increased to a certain level, the resulting production costs must still be included in the economic scale of the business.

    Apart from a number of challenges that lie ahead, the presence of Chevron and the Rokan Block itself has become history for the oil and gas industry in Indonesia. Finally, Chevron's departure from Bumi Andalas should be closed with the words "Thank you Chevron and welcome Pertamina".

Bisnis Indonesia, Page-7, Monday, Aug 9, 2021