Pertamina Looking for Partners to Manage East Natuna Oil and Gas Block

PT Pertamina (Persero) is looking for partners managing the East Natuna Block. Pertamina Upstream Director Dharmawan Samsu said, there was the great potential that could increase reserves and production from the oil and gas block.

"I think the potential is very good, but we will discuss again with the government about the most appropriate way to carry out activities in East Natuna," Dharmawan said.

East Natuna Block

Dharmawan said Pertamina was open to choosing partners in managing the field. Dharmawan explained the development costs in the field are relatively very large because it requires technology to separate the carbon dioxide.

Dharmawan assessed that the process of finding partners and developing the East Natuna Block can be done simultaneously. So potential partners can see directly the data if needed. But the partners Pertamina is looking for need to have the latest technology and strong financial capabilities.

"We can do data sharing from what we already have, every time we do a joint study. But, we will only consider it seriously," said

Dharmawan.

Arifin Tasrif

The government through the Ministry of Energy and Mineral Resources (ESDM) is helping Pertamina to get partners. ESDM Minister Arifin Tasrif said that the government was currently in discussions with Pertamina to find a solution in the management of the East Natuna Block. The block, which is predicted to have reserves of up to 46 TCF, has not yet been worked out to be explored and produced.

"We are helping to find a partner," Arifin said.

The Director-General of Oil and Gas at the ESDM Ministry, Djoko Siswanto, detailed that the East Natuna Block has two fields that have oil and gas reserves. But for a field that is predicted to have large gas reserves also contains carbon dioxide with a relatively very high amount. This will complicate the gas production process.

"Natuna has gas, there is oil. The oil is to be developed. For gas, the carbon dioxide content is more than 70 percent. Therefore, we want to develop it one by one," said Djoko.

In addition to looking for partners, the government proposes Pertamina to first conduct exploration in the East Natuna region. According to Djoko, this was more efficient and could invite the interests of partners sought by Pertamina.

"In parallel, looking for partners can be done. But it is important that Pertamina conduct exploration first. Just explore the oil field first," said Djoko.

IN INDONESIA

Pertamina Cari Mitra Kelola Blok Migas East Natuna

PT Pertamina (Persero) sedang mencari mitra pengelolaan Blok East Natuna. Direktur Hulu Pertamina Dharmawan Samsu menyampaikan, terdapat potensi besar yang bisa menambah cadangan dan produksi dari blok migas tersebut.

"Saya rasa potensi sangat bagus, tapi kita akan berdiskusi lagi dengan pemerintah mengenai cara yang paling tepat untuk melakukan aktivitas di East Natuna," ujar Dharmawan.

Dharmawan mengatakan Pertamina membuka diri untuk memilih mitra dalam pengelolaan lapangan tersebut. Dharmawan menjelaskan biaya pengembangan di lapangan tersebut relatif sangat besar karena perlu teknologi untuk memisahkan karbondioksida. 

Dharmawan menilai, proses pencarian mitra dan pengembangan Blok East Natuna dapat dilakukan secara bersamaan. Sehingga calon mitra bisa melihat secara langsung data yang sekiranya dibutuhkan. Namun mitra yang dicari Pertamina perlu memiliki teknologi yang mutakhir dan kemampuan finansial yang kuat. 

"Kami bisa melakukan data sharing dari apa yang kami sudah miliki, setiap melakukan joint study. Tapi, kami hanya akan mempertimbangkan yang serius," ujar Dharmawan.

Pemerintah melalui Kementerian Energi dan Sumber Daya Mineral (ESDM) sedang membantu Pertamina untuk mendapatkan mitra. Menteri ESDM Arifin Tasrif mengatakan, saat ini pemerintah terus melakukan diskusi kepada Pertamina untuk bisa mencari solusi dalam pengelolaan Blok East Natuna. Blok yang diprediksi memiliki cadangan hingga 46 TCF ini belum dikerjakan untuk dieksplorasi dan diproduksi.

"Kita sedang membantu untuk cari partner,” kata Arifin.

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto memerinci, Blok East Natuna memiliki dua lapangan yang memiliki cadangan minyak dan gas. Namun untuk lapangan yang diprediksi memiliki cadangan gas besar juga mengandung karbon dioksida dengan jumlah relatif sangat tinggi. Hal ini, akan mempersulit proses produksi gas.

"Natuna itu ada gas, ada minyak. Minyak itu yang mau dikembangkan. Untuk gas, kandungan karbon dioksidanya lebih dari 70 persen. Makanya, kita mau kembangkan satu per satu," ujar Djoko.

Selain mencari mitra, pemerintah mengusulkan kepada Pertamina untuk lebih dulu melakukan eksplorasi di kawasan East Natuna. Menurut Djoko, hal ini lebih efisien dan bisa mengundang minat mitra yang dicari Pertamina. 

"Secara paralel mencari partner bisa dilakukan. Tapi yang panting Pertamina melakukan eksplorasi dulu. Eksplorasi saja dulu yang lapangan minyak," ujar Djoko.

Republika, Page-15, Tuesday, Jan 7, 2020

Pertamina is looking for partners to develop the East Natuna Block

The government stated that PT Pertamina (Persero) is looking for partners to develop the East Natuna Block north of Natuna Island which is in dispute with China. The development of the gas block with reserves of 2 trillion cubic feet has not been developed since Pertamina was appointed to work on this block in 2008.

Arifin Tasrif

Energy and Mineral Resources (ESDM) Minister Arifin Tasrif said that his party was still preparing the development of the East Natuna Block with Pertamina. One of them is related to partners that Pertamina will collaborate within working on this oil and gas block.

"That's the partner we're looking for," he said in Jakarta.

However, Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, added that the development of the East Natuna Block did not have to wait for Pertamina to complete the process of finding partners. According to him, this oil and gas block can be developed in stages because this block also has oil reserves, not only gas.

"It's only parallel [development and search for partners]. There is no obligation to carry out exploration, well this is from gas transferred to oil exploration. So this process, "he said.

Changes to this exploration obligation will be reported and asked for approval from his side to President Joko Widodo. Related to the method of development, it can be done in stages. 

    The East Natuna Block gas reserves, which have a carbon dioxide content of up to 70%, can be developed later, given the very difficult work. While this block's oil reserves in two fields can be done first.

"The gas is difficult because of high carbon dioxide, so oil [which was developed first]. If the oil is definitely sold, "he said.

Previously, Pertamina Upstream Director Dharmawan H Samsu revealed, his party continued to coordinate with the government regarding the development of the East Natuna Block. One of them is including the most appropriate way to carry out oil and gas operations in the oil and gas block. 

    Moreover, the potential of the East Natuna Block oil and gas is very good. Given the large size of the oil and gas block, it needs partners in its development. In 2020, he has also planned to start looking for partners.

"What is clear, [2020] is to find partners if possible," he said.

the East Natuna Block

He explained, although the development of the East Natuna Block was carried out in stages, partnerships were still needed to make this block more manageable. He said he opened opportunities for national and multinational oil and gas companies to become state partners. What is clear, it requires potential partners seriously interested in working on the East Natuna Block with Pertamina.

"[Partners] who have the ability, in terms of technology and financial and human capital," explained Dharmawan.

the Natuna D Alpha

He added, there are already oil and gas companies that are interested in becoming partners. Unfortunately, he was reluctant to specify the name of this oil and gas company. The government for the first time officially appointed Pertamina to develop the Natuna D-Alpha Block in the Minister of Energy and Mineral Resources Number 3588/11 / MEM / 2008 dated June 2, 2008 concerning the Status of the Natuna D Alpha Gas (before changing to East Natuna).

IN INDONESIA

Pertamina Cari Mitra Kembangkan Blok East Natuna

Pemerintah menyatakan PT Pertamina (Persero) sedang mencari mitra untuk mengembangkan Blok East Natuna di utara Kepulau Natuna yang menjadi sengketa dengan Tiongkok. Pengembangan blok gas dengan cadangan 2 triliun kaki kubik ini belum ada perkembangan sejak Pertamina ditunjuk untuk menggarap blok ini pada 2008 lalu. 

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif mengatakan, pihaknya masih menyiapkan pengembangan Blok East Natuna bersama Pertamina. Salah satunya terkait mitra yang akan digandeng Pertamina dalam menggarap blok migas ini. 

“Itu mitra yang sedang kami cari,” kata dia di Jakarta.

Meski demikian, Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto menambahkan, pengembangan Blok East Natuna tidak harus menunggu Pertamina merampungkan proses pencarian mitra. Menurutnya, blok migas ini bisa dikembangkan secara bertahap lantaran blok ini juga memiliki cadangan minyak, tidak hanya gas. 

“Paralel saja kan [pengembangan dan pencarian mitra]. Kan ada kewajiban untuk melakukan eksplorasi, nah ini yang dari gas dipindahkan ke eksplorasi minyak. Jadi proses ini,” tuturnya.

Perubahan kewajiban eksplorasi ini-lah yang akan dilaporkan dan dimintakan persetujuan pihaknya kepada Presiden Joko Widodo. Terkait metode pengembangannya, bisa dilakukan secara bertahap. 

    Cadangan gas Blok East Natuna yang memiliki kandungan karbondioksida hingga 70% bisa dikembangkan belakangan mengingat pengerjaannya sangat susah. Sementara cadangan minyak blok ini yang berada di dua lapangan bisa dilakukan terlebih dahulu.

“Gasnya susah karena karbondioksida tinggi, makanya minyak [yang dikembangkan dulu]. Kalau minyak pasti laku lah dijual,” ujar dia.

Sebelumnya, Direktur Hulu Pertamina Dharmawan H Samsu mengungkapkan, pihaknya terus berkoordinasi dengan pemerintah terkait pengembangan Blok East Natuna. Salah satunya termasuk bagaimana cara paling tepat untuk melakukan kegiatan operasi migas di blok migas tersebut. 

     Apalagi, potensi migas Blok East Natuna sangat bagus. Mengingat besarnya ukuran blok migas tersebut, pihaknya membutuhkan mitra dalam pengembangannya. Pada 2020 ini, pihaknya juga telah berencana mulai mencari mitra. 

“Yang jelas, [tahun 2020 ini] mencari mitra kalau bisa,” kata dia. 

Dia menjelaskan, meski pengembangan Blok East Natuna dilakukan bertahap, kemitraan tetap dibutuhkan agar blok ini lebih mudah dikelola. Pihaknya membuka peluang bagi perusahaan migas nasional maupun multinasional untuk menjadi mitra persero. Yang jelas, pihaknya mensyaratkan calon mitra serius berminat menggarap Blok East Natuna bersama Pertamina.

“[Mitra] yang punya kemampuan, dari sisi teknologi maupun finansial dan human capital,” jelas Dharmawan. 

Ditambahkannya, sudah ada perusahaan migas yang berminat menjadi mitra. Sayangnya, dia enggan merinci nama perusahaan migas ini. Pemerintah pertama kalinya secara resmi menunjuk Pertamina untuk mengembangkan Blok Natuna D-Alpha dalam Surat Menteri ESDM Nomor 3588/11/MEM/2008 tertanggal 2 Juni 2008 tentang Status Gas Natuna D Alpha (sebelum berganti menjadi East Natuna).

Investor Daily, Page-9, Tuesday, Jan 7, 2020

Bontang Passion Refinery

    PT Pertamina (Persero) is projecting the construction of a new oil refinery or Grass Root Refinery Bontang can start 2 years ahead or by 2020. As the project manager, the SOE targets to complete this mega project in 2025.

    Director of Mega Pertamina Processing and Petrochemical Project Ardhy Mokobombang said the mega project of Grass Root Refinery Bontang will absorb 20,000 workers.

"We are trying to advocate for the Ministry of Manpower for training and certification of construction workers," he said.

    In the meeting, Ardhy explained, training and certification of construction workers will be a priority before the refinery operates. This move is said to be similar to that applied to the Refinery Development Master Plan (RDMP) Refinery V Pertamina Refinery in Balikpapan.

    Meanwhile, the refinery model in Taman City will be similar to the model in Tuban, which is processing crude oil to fuel at least 300,000 barrels per day. Meanwhile, PT Pertamina cooperates with companies from Oman, Overseas Oil and Gas LLC (OOG), and Cosmo Oil International Pte Ltd (COl) in the development of a subsidiary or trading arm of Cosmo Energy Group one of Japan's oil processing companies.

    

 Overseas Oil and Gas LLC and Cosmo Oil International Pte Ltd (COl)

    He said in this cooperation, Pertamina certainly did not participate in financing the development fund. However, 10% of the shares as participated in the consortium belong to the company.

    

 Cosmo Energy Group one of Japan's

   So, he said Pertamina still has the authority to control the business, including in supplying crude oil to the refinery. The investment value of this new refinery is worth the US $ 10 billion or around Rp130 ​​trillion. The construction of the refinery requires an area of ​​up to 500 hectares. Bontang City Government itself has prepared the land in the Village area Bontang Lestari.

"For Grass Root Refinery 400 hectares but investors are interested in the concept of the petrochemical industry. So we ask for 100 hectares next to the refinery, "he said.

    He explained that the initial phase of construction will begin with the signing of a framework work contract agreement with a consortium targeted for completion this week.

"Then from there, Pertamina will be Feasibility study [FS] up to next year. After that go into the stages of preparation engineering package "

    The existence of the Grass-Root Refinery will increase the number of refineries in the gas and condensate processing areas. Previously in the same area has been established gas processing plant owned by PT Badak and fertilizer owned Pupuk Kaltim.

Bontang Mayor Neni Moerniaeni

     Bontang Mayor Neni Moerniaeni said Bontang people are very welcome this project, Bontang, said Neni, 82% of the land has been certified.

"We are ready to support this project as soon as possible."

    Neni claims infrastructure in Bontang is also one step ahead of other regions, especially when compared to Tuban. The existence of Bontang in the heart of East Kalimantan is more complete with the existence of the Port of Special Industrial Area [KIK].

 
    Beyond that, the City Government and the House of Representatives (DPRD) of Bontang are also drafting two related legal rules, among them, the Regional Regulation of Spatial Detail Plan (RDTR) and the Regional Regulation of Lnduk, Spatial and Regional Plan (RTRW). The last regulation in the drafting was difficult, considering that 12 items were rejected by local businessmen.

    When confirmed, the Chairman of the Special Committee RTRW Bontang Muslimin said if the process is waiting for evaluation RTRW of the Ministry of Agrarian and Spatial (ATR).
 

"The process is expected to take 2 months has been running for a month. Perhaps March has come out, "said Neni also saw the existence of this new oil refinery is important to support the resilience and independence of domestic energy, including reducing dependence on the outside," said Muslimin.

REVISION of Regional Regulations

    East Kalimantan Provincial People's Representative Council targets the revision of regional regulations or Regional Government Regulations of PT Migas Mandiri Pratama will be completed within the next 3 months. The revision refers to the Minister of Energy and Mineral Resources Regulation No.37 / 2016 regarding Terms of Participating Internal 10% Supply on Oil and Gas Working Area particularly Article 3 letter A number 2Capital Ownership.

    Meanwhile, the proposal and ratification of this regulation change has actually been rolling since the end of 2017. PT Migas Mandiri Pratama (MPP) is a BUMD established by the Provincial Government of East Kalimantan based on East Kalimantan Regulation no. 11/2009 which aims to control and manage the potential of oil and gas, both in upstream and downstream business activities particularly related to the Mahakam Work Area.

    The revision of the Regional Regulation is needed for the East Kalimantan The Provincial Government which currently controls 99.75% of shares can control a 100% stake in the BUMD. Currently, 0.25% of the shares still belong to the Cooperative Corps of Employees of the Republic of Indonesia of East Kalimantan

    Speaker of the East Kalimantan Regional House of Representatives (DPRD), HM Syahrun said the Special Committee will invite PT Pertamina and related government parties to do the deepening of the material. On the one hand, Alung, as he is called, said that the management of this work area will have an impact on increasing the contribution of state revenue and foreign exchange of state and local revenue.
"Through Participating Interest 10%, estimates, East Kalimantan can get a minimum of Rp 2 trillion in a year," said Syahrun.

    Syahrun is optimistic that the revision target can be overtaken. Only two articles are revised. First, article 8, paragraph 1 and 2 on Employee Appointment and Dismissal is regulated in accordance with Law no. 13/2003 on Manpower and Company Regulations of PT MMP Kaltim.

Second, article 10 paragraph 1 verse 4 in accordance with the provisions of Minister of Energy and Mineral Resources Regulation no. 37/2016 article 3 letter A number 2.

Bisnis Indonesia, Page-9, Monday, Feb 5, 2018

Pertamina Apply ACS Technology

PT Pertamina Refinery Unit (RU) V Balikpapan is working with PT Yokogawa Indonesia to implement Advance Control System technology starting in November. Advance Control System is an environmentally friendly technology that will be applied in the process of oil refining at existing refineries. 

    The technology allows the refining process to be more accurate and efficient. The implementation of this technology is the result of cooperation between the Government of Indonesia and Japan through the Joint Crediting Mechanism Scheme which has been going on for 3.5 years.

The cooperation is in demand by many state-owned and private companies, due to funding incentives in the form of grants, the transfer of technology, and the development of capacity to reduce greenhouse gas emissions. The application of ACS to the existing oil refinery in PT Pertamina Refinery Unit (RU) V Balikpapan is one of 27 projects with the application of similar technology in Indonesia.

"The application of ACS can save energy with sophisticated control equipment that can control the energy consumption of the refinery. This technology is targeted to reduce greenhouse gas emissions up to 3,400 tons of CO2 throughout the year, "said the General Manager of PT Yokogawa Indonesia Nanang Dwi Suprapto, Sunday (1/10).

ACS technology was developed by Yokogawa Electric Corporation Japan. The joint crediting mechanism scheme has been applied to 17 countries spread across Asia, America, and Africa. The cooperation scheme encourages Japanese private organizations to work with Indonesia on greenhouse gas emission reduction activities.

There are seven ministries involved in the cooperation, including the Coordinating Ministry for Economic Affairs, the National Development Planning Agency, the Ministry of Energy and Mineral Resources, and others. Nanang said Indonesia is one of the pioneer countries in implementing the scheme. Japan provides assistance in the form of technology, investment, and subsidies through the scheme of cooperation.

"Participants of the joint crediting mechanism project consist of at least two parties, namely Indonesian and Japanese companies. This greenhouse gas emission reduction activity will be validated and verified by third parties with ISO 14065 standards, "he said.

Bisnis Indonesia, Page-30, Monday, October 2, 2017

Pertamina Inaugurate New VP Corporate Communication

Wianda Pusponegoro

    PT Pertamina officially inaugurated Adiatma Sardjito as Vice President of Corporate Communications or replaced company spokesman Wianda Pusponegoro. The inauguration was held Friday at the head office of Pertamina, Jakarta, and conducted by the Corporate Secretary of PT Pertamina Syahrial Mukhtar.

In his speech, Syahrial Mukhtar turnover positions are common and prevalent in every organization, especially for Pertamina is large and dynamic.

"Many of the challenges facing the future Pertamina to be dealt with holistically," said Syahrial. 

    The new spokesman Adiatma Pertamina Pertamina Sardjito a career employee who previously served as Corporate Secretary of PT Pertamina Gas from 8 April 2015-24 March 2017. 

    While Wianda Pusponegoro, who served as VP of Corporate Communication of March 11, 2015 - March 24, 2017, was placed in another business sphere precisely in the Directorate of Finance and Corporate Strategy Pertamina.

Meanwhile, Adim nicknamed Adiatma explains that he applied for the support of all parties to help Pertamina for the better.

"Please pray and support, many of the tasks mandated by the government to Pertamina and for us to finish together, through several projects both in the downstream and upstream in favor of energy independence," said Adiatma. 

    Adiatma Sardjito wants to improve the reputation of the company for the better. 

"I hope to help the publication of the world of Oil and Gas and Pertamina, what has been achieved both this year and in the future is improved. Besides that, it will continue what is already good,” said Adiatma Sardjito.

He also said it will study the ins and outs of the business Pertamina first before taking certain steps in performing its duties as a spokesperson. 

    Corporate Vice Wianda Pusponegoro Communication Pertamina also said the change of position in the company's State-Owned Enterprises (SOEs) is common. 

"Things like this are normal, and don't forget about other things, because this is purely a change for learning and experience," said Wianda.

Investor Daily, Page-9, Saturday, March 25, 2017

Establishment of Energy Holding Pending

    BUMN Minister Rini Soemarno estimates that the formation of two holding companies, namely energy BUMN and mining BUMN, is likely to be postponed to in the first quarter of 2017.

"We are still trying to establish an energy holding and a mining holding to be realized in 2016.

     However, even if it is not achieved in the end, it will be forced to resign to the first quarter of 2017, ”said Rini after the launch of the coastal community empowerment program and the beach cleaning of Kampung Nelayan on Teluk Penyu Beach, Cilacap, Central Java.

    On the sidelines of PT Pertamina's 59th Anniversary celebration, Rini explained that so far the formation of an energy and mining BUMN holding is still in the process of being finalized.

"Still being discussed. We hope that the Minister of Finance will communicate to provide information to the DPR. "

    Holding BUMN Oil and Gas will unite two large companies, namely PT Pertamina and PT PGN Tbk with Pertamina to be designated as the holding company.

Media Indonesia, Page-17, Tuesday, Dec 13,2016.

Strategic Bojonegara Refinery Megaproject to Secure Domestic Gas Supply

 

    The government must support the realization of an integrated energy terminal megaproject in Bojonegara, Serang Regency, Banten Province worth IDR 10 trillion. Given the existence of this project, which will be very strategic in securing supplies, the plan is to build it by the Kalla Group business unit, PT Bumi Sarana Migas (BSM) by involving Japanese companies and Pertamina as the off-taker.

the Kalla group's

    The government must indeed focus on making a comprehensive plan related to oil and gas infrastructure in Indonesia, both LNG receiving terminal and gas transmission and distribution pipelines, so with the Kalla group's plan to build this LNG Megaproject, it is good to meet the needs and national energy security in the future, which later requires. said infrastructure support, said Deputy Chairman for Energy and Oil and Gas of the Indonesian Chamber of Commerce and Industry, Bobby Gafur Umar.

    According to Bobby, the overall infrastructure development plan requires a budget of up to Rp.4,900 trillion. According to President Jokowi, the source of funding from the State Budget (APBN) is only able to finance Rp. 1,500 trillion, so the role of the private sector in infrastructure development, especially in the Oil and Gas sector, is very significant. 

    Apart from making comprehensive planning, according to him, the government should also prepare an incentive package, so that more investors are interested in investing, especially in the oil and gas sector.

Pertamina

    Based on Pertamina's data, West Java has experienced a gas deficit of 315 MMscfd in 2015. This figure is projected to increase threefold to 962 MMscfd in 2025. Nationally, Indonesia is predicted to experience a gas deficit of 1,013 MMscfd in 2015. This deficit will increase to 3,206 MMscfd. by 2025.

    Economic and Energy Observer from UGM, Fahmy Radhi, who is also a former Oil and Gas Reform and Governance Team, stated that the construction of an LNG terminal is urgently needed in the future in order to maintain national energy security.

    According to him, Pertamina's role as an off-taker was appropriate because as a state-owned company representing the government, Pertamina had to play an active role. He acknowledged that the off-taker role carries a high level of risk. 

    However, it must be minimized with detailed and mature feasibility calculations, as well as supervision. Fahmy considered this project to be a profitable business, considering that in the future the demand for gas in Java, especially West Java, will continue to increase.

    98 Institute Executive Director Sayed Junaidi Rizaldi said the cooperation between Pertamina and BSM would improve Indonesia's ability to secure domestic gas supply, especially for the western part of Java. Sayed explained that the appointment of Pertamina as the only buyer (off-taker) of the refinery product indicates that the company can play an important role in the future supply of LNG gas.

    On the one hand, Sayed also hopes that Pertamina can become an operator in the mega project for the construction of an integrated energy refinery. The reason is simple, Pertamina is very experienced in managing refineries. All large-scale refineries in Indonesia are operated by Pertamina. 

    According to information, the integrated energy terminal complex will not only be filled by an LNG receiving terminal and regasification, a new oil refinery, and a PLTGU with a capacity of 1,000 MW to 2,000 MW. This mega project is expected to be operational in 2020, where the LNG receiving terminal facility can take place first. In the first phase, the LNG terminal capacity will be 500 MMscfd. However, the capacity will be enlarged to 1,000 MMscfd in the second phase.

Investor Daily, Page-9, Thursday, Nov 24, 2016

Believed To Be Able To Secure Domestic Gas Supply

    

    Strategic Bojonegara Refinery Megaproject to Secure Domestic Gas Supply. The mega-project Land-Based LNG (Liquefied Natural Gas) Receiving and Regasification Terminal that will be built by PT Pertamina with the Kalla Group business unit, namely PT Bumi Sarana Migas (BSM), is considered to increase Indonesia's ability to secure domestic gas supplies, especially West Java. 

the Kalla Group

        

    The integrated energy facility complex will be located in Bojonegara District, Serang, Banten with an investment of around Rp 10 trillion. This could be a part of the planning of a national energy security system.

Pertamina

    This cooperation is also a long-term solution to the fulfillment of domestic gas (LNG), said 98 Institute Executive Director Sayed Junaidi Rizaldi. He explained that the appointment of Pertamina as the only buyer (off-taker) for the refinery product indicated that the company could play an important role in the future supply of gas (LNG). Now, it only remains to be monitored jointly by the business system, whether it is transparent and open. Most importantly, Pertamina as a state-owned company should not suffer losses.

    He added that apart from Pertamina and PT BSM, the refinery construction mega-project also involves foreign companies, namely Tokyo Gas and Mitsui. On the one hand, Sayed also hopes that Pertamina can become the operator in the mega-project for the construction of the integrated energy refinery. 

Wianda Pusponegoro

    The reason is simple, Pertamina is very experienced in managing refineries. All large-scale refineries in Indonesia are operated by Pertamina. Previously, Pertamina spokesperson Wianda Pusponegoro once commented that the company was very ready to become an off-taker in the megaproject as long as it was included in share ownership.

    For information, this integrated energy terminal complex will be filled with LNG and regasification receiving terminals, new oil refineries, and PLTGU with a capacity of 1,000 MW to 2,000 MW. The entire project is built outside of Pertamina's planning map, or outside the Refinery Development Master Plan (RDMP) program for four existing refineries and two new Grass Root Refinery (GRR) refineries. 

    In addition, the construction of the PLTGU in the complex is also outside the Electricity Supply Business Plan (RUPTL) owned by PT PLN from 2016 to 2025. Megaproye is now expected to be operational in 2020, where the LNG receiving terminal facility can run first.

    In the first phase, the LNG terminal capacity will be 500 MMscfd. However, the capacity will be enlarged to 1,000 MMscfd in the second phase. Based on Pertamina's data, West Java has experienced a gas deficit of 315 MMscfd in 2015. This figure is projected to increase threefold to 962 MMscfd in 2025. Nationally, Indonesia is predicted to experience a gas deficit of 1,013 MMscfd in 2015. This deficit will increase to 3,206 MMscfd. by 2025.

Harian Bangsa, Page-4, Wednesday, Nov 23, 2016

Pertamina Accelerates Balikpapan Refinery Expansion

    PT Pertamina is accelerating the implementation of the Refinery Development Master Plant (RDMP) for the Refinery Unit (RU) or Refinery V Balikpapan, East Kalimantan stages I and II in 2019 and 2021.

PT Pertamina

    According to Pertamina's Director of Mega-Processing and Petrochemical Projects, Rachmad Hardadi, this project requires funds of US $ 2.6 billion or IDR 34 trillion. The refinery construction is for long-term investment, said Rachmad. 

    According to Rachmad, the Balikpapan oil refinery production capacity in the first phase of the RDMP project will be increased from 260 thousand barrels to 360 thousand barrels per day. In 2019, the refinery will manufacture fuel oil to the Euro 2 standard.

    The second stage of the RDMP for the production of quality fuel with Euro 4 and Euro 5 standards is expected to materialize in mid-2021.

"In accordance with the needs of the community, the quality of the fuel will be improved. Funds for the development of this refinery come entirely from Pertamina. According to Rachmad, the RDMP RU V Balikpapan project has entered the demolition stage of several warehousing facilities. Pertamina is also building housing in the form of 24-floor apartments for employees. This apartment will be occupied by employees who initially live in the Parikesit housing estate, Balikpapan. However, they will be evicted into warehouses and workshops, ”.

Fadel Muhammad

    Deputy Chairman of the Energy Commission of the House of Representatives, Fadel Muhammad, stated that it is time for Indonesia to become independent in producing fuel for domestic needs. According to him, local workers are capable of producing international standard fuel. 

Saudi Aramco

    Pertamina will partner with foreign companies, such as TX Nippon Oil and Energy and Saudi Aramco. However, it was decided that Pertamina would implement it only.

Koran Tempo, Page-9, Monday, Oct 24, 2016

Balikpapan Refineries Follow Euro 5 Standards

    Balikpapan Refineries Follow Euro 5 Standards PT Pertamina is ready to accelerate the completion of the refinery development master plan / RDMP program for Balikpapan, East Kalimantan, to 2021 with the quality of refinery products with Euro 5 standards. Initially, the Balikpapan refinery development project was scheduled to be completed in 2025.

PT Pertamina

"If the development process can be faster, why should it be slow. In the latest development, there are aspirations to improve the quality of fuel oil to the Euro 5 standard, "said Pertamina's Director of Megaproject Processing and Petrochemicals Rachmad Hardadi.

    The Euro 5 standard requires the disposal of lower emission gases, including the minimum sulfur content in the fuel, which is less than 50 ppm. The capacity of the Balikpapan refinery will also be increased from 260,000 barrels per day to 360,000 barrels per day.

Kompas, Page-18, Monday, Oct 24, 2016

Pertamina Trans-Continental Adds Tanker Fleet

PT Pertamina Trans Kontinental (PTK), a subsidiary of PT Pertamina (Persero), this year added one more fleet of ships that would strengthen the tanker fleet to transport oil after receiving ship handover from PT Dry Dock World First (DDW).

The total investment for the construction of the Small Tanker 3500 LT DWT ship is the US $ 11.73 million. The handover of Arafura Transko from PT DDW Shipyard to PTK is faster than the specified delivery time schedule.

PTK President Director Soebagio Hari Moeljanto said the Arafura Transko was the first tanker built and owned by PTK. The construction of this Small Tanker has been adjusted to the specifications required by the user and has been adjusted to the latest regulations from IMO, SOLAS, MARPOL, CLASS ABS, and ISM.

"Arafuru Transco will be operated to support Pertamina Shipping activities and is targeted to contribute revenue to PTK of Rp 31 billion per year," said Soebagio

According to the Arafura Transko plan to serve Pertamina Shipping with a rental period of eight years. This small tanker type will be operated in the territorial waters of North Sumatra or Kalimantan and surrounding areas to support Pertamina Shipping operational activities.

In addition to the Arafura Transaction, PTK plans to carry out the delivery of a unit of Gil Barge 1100 KL named Ranau Transco, which was built by PT Patria Maritim Perkasa. The increasing fleet of PTK vessels will strengthen the PTK business as a subsidiary of Pertamina and increase the existence of PTK to compete globally in the shipping business.

Investor Daily, Page- 9, Saturday, Oct 15, 2016

The Need for Oil and Gas Tanker Transport is Still Large

It looks like the oil transportation business this year is still brilliant. As a result, PT Pertamina Trans-Continental needs to add one tanker fleet. One of PT Pertamina's business lines has just bought a tanker weighing 3,500 tons with the Arafura Transko label.

This state-owned company buys from Lender-winning shipyard company, PT Drydock World First with a value of US $ 11.72 million or equivalent to Rp. 152 billion (assuming an exchange rate of Rp. 13,000 per US dollar).

The plan, Pertamina's freight transport company will operate the ship in the waters of northern Sumatra and around Kalimantan. Pertamina Trans Kontinentai hopes that this ship can contribute to the country's oil company revenue. We are targeting this ship to contribute Rp 31 billion per year, "said Soebagio Hari Moeljanto, Managing Director of Pertamina Trans Continental.

Wianda Pusponegoro

Wianda Pusponegoro, Vice President of Corporate Communications of Pertamina, added that so far, Pertamina already has 69 tankers and it is possible to add new tankers in the future.

Bani Mulia, Director of PT Samudera Indonesia Tbk, claimed not to be afraid of the Pertamina action. According to him, the State-Owned Enterprises (SOEs), in addition to relying on oil transportation from their own vessels, also need similar transportation from third parties. One of them is from the Indonesian Ocean.

Bani said Pertamina was a client of Samudera Indonesia. In fact, this oil transportation business contributes the most to the income of the Indonesian Ocean. In the first half of this year, of the total revenue of Samudera Indonesia that reached the US $ 208.78 million, around half came from mining transportation revenues, including oil which reached the US $ 112.89 million.

No wonder the company bought another tanker this year, valued at the US $ 14 million, Paula Marlina, Finance Director of PT Soechi Lines Tbk, also explained that the tanker business will continue as long as there is domestic oil and gas demand. In fact, the company's clients are not only Pertamina but also other oil companies. So far, Soechi Lines has pocketed oil transportation contracts worth the US $ 200 million. While from other transportation around the US $ 100 million.

Kontan, Page-14, Monday, Oct 17, 2016