Pertamina-Aramco Premature Partnership

After there was no certainty for almost 6 years, the collaboration between PT Pertamina (Persero) and Saudi Aramco Oil Co. the Cilacap Refinery development project can no longer be maintained.

Efforts to merge the strengths of the two state-owned oil and gas companies withered before they flourished. The decision to separate was disclosed by Pertamina through VP Corporate Communication Fajriyah Usman who stated the cooperation between Pertamina and Aramco in the project was no longer extended.

Fajriyah Usman

"After the extension of cooperation with Saudi Aramco was not carried out, Pertamina continued the Cilacap Refinery Development Master Plan (RDMP) independently, but in parallel, there would still be another strategic partner search," She said.

Nicke Widyawati

No immediate agreement was reached on the cooperation scheme until the valuation of the Cilacap Refinery was the main cause. Last February, Pertamina President Director Nicke Widyawati asserted that his party would still be waiting for offers from Aramco until the end of the first quarter / 2020 or March 2020.

Premature Partnership

It all started in 2014 ago. Pertamina began selecting partners in the Cilacap RDMP by submitting initial estimates of a number of aspects to the project such as capital expenditure of US $ 3 billion to the US $ 3.5 billion and an internal rate of return (IRR) of 15%. Through the development of the RDMP project, refinery processing capacity will increase from 348,000 barrels per day (BPD) to 370,000 BPD.

In addition, there will also be an increase in gasoline (gasoline) production from 59,000 BPD to 138,000 BPD and diesel dad production of 82,000 BPD to 137,000 BPD. With a current capacity of 348,000 BPD or 33% of the capacity of the oil refinery operated by Pertamina, the Cilacap Refinery is the largest refinery in Indonesia. The first phase of the Cilacap refinery has been operating since 1976 with a capacity of 118,000 BPD, while the Cilacap II refinery has operated since 1983 with a capacity of 230,000 BPD.

The resulting products are in the form of fuel oil (BBM) such as gasoline with octane RON 88 (Premium) and Ron 92 (Pertamax), kerosene, Solar, to avtur. Besides fuel, the Cilacap refinery also produces LPG, asphalt, sulfur, and petrochemical products such as benzene and propylene. The project is targeted to be completed in 2025 in order to pursue national energy security and independence which is marked by the stop of importing BBM in 2026.

The start of the partnership was marked by the election of Aramco as a partner with the signing of the MoU in December 2014 followed by The signing of the head of agreement (HOA) in 2015. In 2016, Aramco and Pertamina agreed on a number of key business principles through a joint venture development agreement (JVDA) with the majority portion being owned by Pertamina at 55% and the rest owned by Aramco.

One year ago, in 2017 both completed basic engineering designs with a refinery capacity of 400,000 BPD and an estimated capital expenditure of US $ 5.8 billion. After that, the collaborative process began to face a number of challenges. In 2018, Aramco requested that the Government of Indonesia obtain fiscal incentive facilities, including tax holidays.

Medio 2018, Pertamina has reached the progress of completing three Aramco requests, namely the granting of a tax holiday for 20 years, land acquisition, and approval of the Cilacap Refinery Business Unit (RU) IV spinoff along with the valuation results of the business unit. Regarding valuation, Pertamina has appointed Price Waterhouse Coopers (PWC) as an independent consultant to calculate the results that have been submitted to Aramco, namely an equity value of the US $ 3.98 billion, equivalent to US $ 5.18 enterprise value.

On November 19, 2018, at a high-level meeting in Jakarta, Aramco said that it would review the results of the RDMP valuation IV Cilacap and immediately deliver the results to Pertamina. Signs of the end of the Pertamina-Aramco partnership began to appear as the project valuation was not immediately agreed upon.

Time continued to roll and the signal to search for new partners was given by SOE Minister Erick Thohir on 29 October 2019, after attending the meeting coordination with the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan. On the other hand, Pertamina actually shows its desire to partner with Aramco. Other collaboration alternatives were also proposed to Aramco, namely the only cooperated asset was the project new ones, and existing refineries are not included.

However, the offer did not seem to meet an agreement. The Pertamina-Aramco story at the Cilacap refinery in Central Java still ends prematurely. Meanwhile, Special Staff of the Ministry of SOEs Arya Sinulingga said that Aramco's withdrawal from its partnership with Pertamina in the Cilacap RDMP project was not due to the failure of negotiations on the business scheme to be carried out.

"Because corona and oil prices are falling, so the price to the economy does not enter again," he said.

He revealed that Pertamina was currently exploring potential new partners for the project. Arya said the potential partners are oil and gas companies from abroad.

NEED PARTNER

Gadjah Mada University Energy Economics Observer Fahmy Radhi said, reflecting on the negotiation process that took place too long and does not immediately produce a solution to terminate the cooperation is appropriate. Fahmy rate, Pertamina's financial capacity is able to finance the development of the project with a number of options, both absorbing internal funds, as well as from external sources such as the issuance of debt securities. Meanwhile, in terms of technology, Pertamina is also considered capable of continuing the development of the project independently.

"If the Cilacap RDMP project is completed and operational, then Pertamina will find a partner by releasing a maximum of 49% share ownership," he said.

Meanwhile, Executive Director of the Institute for Essential Services Reform (IESR) Fabby Tumiwa believes that Pertamina will find it difficult to develop the Cilacap refinery without cooperating with strategic partners. According to Fabby, of Pertamina's total capital expenditure this year of around the US $ 7.8 billion, half is allocated for business activities upstream, while the portion for refinery construction is not large.

"The investment capability is not enough to finance large projects such as refineries which, despite multi-years financing, will require very large CAPEX," he said.

Likewise, Executive Director of the RefoMiner Institute Komaidi Notonegoro said, business partners were needed by Pertamina to mitigate existing business risks. This is because Pertamina cannot focus its capital expenditure on refinery construction, but needs to be allocated to other business portfolios.

"Generally cooperation is needed because the business strategy is to minimize risk," he said.

The end of the collaboration between Pertamina and Aramco indeed raises big questions regarding the success of the Cilacap RDMP project. A big challenge awaits Pertamina to complete the project, either independently or with other partners.

Bisnis Indonesia, Page-10, Thursday, May 28, 2020

Oil flood

More than 30 tankers gathered near the coast of California, United States, with a full cargo of crude. The ships carried around 20 million barrels of crude oil for days without knowing where to put the cargo. Millions of barrels of oil do not yet have prospective buyers. The story is on the Bloomberg website, Wednesday (22-April-2020). US WTI (West Texas Intermediate) oil is hit hard.

For the May 2020 purchase contract, the price of WTI crude oil is minus. Based on oil trading, Tuesday (April 21), the price is minus 35.55 US dollars per barrel.

minus 35.55 US dollars per barrel

What does it mean? Buyers are even paid to receive crude oil. Therefore, oil producers must incur additional costs for storage, while the storage tank capacity is maximum. That was explained by Lamon Rutten, CEO of Indonesia Commodity and Derivatives Exchange.

When the storage tank is full, where do you want the oil to go? Oil is not leftover laundry water that can be thrown into a ditch. While production continues, which is also expensive, and there are costs for storing oil, the Mafia, on sale oil.

This situation has never happened in the land of "Uncle Sam". In a number of reports, this condition has the potential to make many oil companies in the US go bankrupt. How about in Indonesia? Indonesia, as a net oil importer, can actually benefit from cheap crude oil prices. 

Nicke Widyawati

    As stated by the President Director of PT Pertamina (Persero) Nicke Widyawati, cheap world crude oil prices have the opportunity to import as much oil as possible.

The statement came out when the Covid-19 pandemic was not widespread in Indonesia. However, everything changed when the Covid-19 pandemic was declared a national disaster by President Joko Widodo, which was followed by large-scale social restrictions (PSBB). The Covid-19 pandemic drastically reduced the movement of people and goods.

Not many planes fly and private cars are parked at home. In the public transport sector, long-distance train trips are canceled, whereas taxis and public buses are only parked at their respective puls. That is, the demand for fuel oil (BBM) drastically reduced.

The option to import is much cheaper than draining oil from domestic oil wells. Some refineries will be stopped operating. Pertamina's report shows that national fuel consumption dropped dramatically by 35 percent.

In DKI Jakarta and Bandung, consumption dropped dramatically to 60 percent. Pertamina's efforts to "provoke" the purchase of fuel through a 50 percent cash return service for application-based motorcycle taxi drivers have not been satisfactory.

Solar and aviation fuel stock in Indonesia also broke records, from an average of enough for 25 days to 100 days. All of the above situations led to the insistence that fuel prices in Indonesia be lowered. However, the government indicated it would not reduce fuel prices.

The consideration is the plan to cut oil production of members of the Organization of Petroleum Exporting Countries (OPEC) and their alliances starting next May, as well as the exchange rate of the rupiah against the US dollar. The government is also aware that reducing fuel prices makes Pertamina's fiscal pressure.

Negative crude oil prices in the US also do not necessarily reduce fuel prices there. Another question is, how significant is the reduction in fuel prices when many people need it in the middle of the Covid-19 pandemic?  

Kompas, Page-9, Friday, April 24, 2020

The World Oil and Gas Corporation Consortium Interested with Pertamina

The World Oil and Gas Corporation Consortium Interested in Collaborating with Pertamina to Build Refineries

Energy companies namely Litasco SA-Luk Oil and Energen Global DMCC as well as national companies in the Satria Group flag, expressed their interest in investing in projects that are being carried out by Pertamina in Indonesia. One of them is an investment to build an oil refinery.

Litasco SA-Luk Oil

"According to the information we got, Pertamina has canceled a cooperation contract with one of the global companies for the development of a new Bontang Grassroot Refinery in East Kalimantan. For this reason, we are willing to explore the possibility of replacing Pertamina's previous partner position, "said Energen Country Representative, Bayu Kristanto.

Bayu said Indonesia is very prone to energy crises. With relatively small reserves, Indonesia must buy crude or refined products in large quantities.

"And with limited refinery capacity, of course, we cannot buy a lot of oil by utilizing the low oil prices as current conditions. That way the construction of new refineries is very urgent, in addition to being able to utilize it when the price of oil is low, it is also for national stock security, "he explained.

He warned that Litasco and Energen were not new players in the energy sector. Step two of the big companies are already well-known energy business people around the world. Litasco even has an office in Singapore, which means that Litasco understands very well the problem of the construction of an Indonesian oil refinery.

"The current oil processing capacity in Indonesian refineries is only 1 million barrels per day with oil production of only around 650 boepd. This figure is not enough to meet the national needs of around 1.4 million barrels per day. For this reason, the Consortium is ready to work with Pertamina to meet these needs, of course, with the target price of refinery products that are more efficient if given the trust of Pertamina and the Indonesian government, "he said,

Investors, of course, understand that the largest markets are in East Java (East Java) and West Java (West Java) or Java Island. However, investors are still trying to understand and study the location of refinery development plans that have been studied by Pertamina and the Government of Indonesia.

"What is certain is that investors will carry out all the trust given by Pertamina and the Government of Indonesia in a professional manner. How can the needs of both parties be met properly, "he said.

BNI, BRI, Mandiri, and BTN

Bayu ensures that the business run by the consortium optimizes funding through a sharing or cooperation system. Either it involves syndication of the national banking network, namely through government-owned banks such as BNI, BRI, Mandiri, and BTN that can participate, as well as private banks such as BCA and other large banks.

Bank Centra Asia (BCA

"Litasco and Energen will also use the strength of their international network to collaborate with the Indonesian government, especially Pertamina," he said.

Bayu guaranteed that if Pertamina and the Government of Indonesia provided space for the consortium to participate in the role of meeting national oil needs, Indonesia would no longer need to import or reduce imports as the president complained.

Bayu hopes that the Refinery Investment Principle Agreement (RIPA) between the consortium and Pertamina can be realized soon. He guaranteed to maximize the use of domestic power. Is that human resources and other resources.

"Satria Group and Pertamina certainly understand and understand how to use potential local workers rather than those from other countries. I believe Satria Group will conduct business as usual on this large project, "Bayu said.

Investor Daily, Page-9, Friday, March 20, 2020

Pertamina Chases Target

Unfortunately, the progress of refinery construction megaprojects is still slow due to various problems, especially the amount of investment needed. Not to mention, the margin of difference between production costs and selling prices is also relatively small. 

     Various efforts have been made by the government, ranging from providing incentives, tax breaks, ease of licensing, to providing locations. However, it was not also able to accelerate the completion of the construction of refineries in this country.

President Joko Widodo in TPPI Tuban East Java

President Joko Widodo also expressed his frustration several times. Until finally in December last year directly checked the Grass Roof Refinery / GRR Tuban construction project, East Java, which was integrated with PT Trans-Pacific Petrochemical Indotama (PT. TPPI). 

    At that time Jokowi even gave PT Pertamina (Persero) an ultimatum by giving 3 months to confirm the position and strategy of the Tuban Refinery development.

Pertamina was asked to accelerate the completion of the refinery project before the end of 2023. Based on Pertamina's data, from a number of projects accelerating the modernization of the existing refineries (Refinery Development Master Plan / RDMP) as well as the construction of new refineries (Grass Roof Refinery / GRR) with a total investment of the US $ 40-US $ 50 billion.

The Balikpapan refinery has progress of more than 13% and this year it is targeted to reach 40%. Furthermore, the development targets for the Balongan and Cilacap Refineries in Central Java are still 10% each. For the Cilacap Refinery, Pertamina in 2012 has actually cooperated with Saudi Aramco. However, as of March 2020, there was still no clarity about the cooperation plan.

Saudi Aramco

"We are still waiting for their offer [Saudi Aramco] as to what for this new scheme," said Pertamina President Director Nicke Widyawati.

Nicke Widyawati

The cooperation scheme has changed, bearing in mind that in nearly 3 years the agreement to form a joint venture between Pertamina and Aramco in the Cilacap Refinery project did not immediately meet an agreement related to asset valuation. 

    However, the cooperation options are certainly similar to the development of the Balikpapan Refinery. Overall Nicke is optimistic that the target of lifting 1 million barrels of oil per day (BPD) can be achieved 4 years faster than the original plan of 2030. Moreover, Pertamina continues to accelerate the construction of refineries, day and night, so that it can be completed faster and targeted.

"This optimism is because in 2026 most of the new refineries we have built are already in production."

Pertamina continues to explore various opportunities to acquire oil and gas blocks abroad and is targeting to drill 411 wells by 2020, an increase of 17% compared to the 2019 target of 351 wells. The company even allocated an investment of US $ 7.8 billion, up 84% compared to 2019 valued at the US $ 4.2 billion.

Fajriyah Usman

Pertamina Corporate Communication Vice President Fajriyah Usman added that by accelerating the construction of the refinery, the refinery capacity is targeted to be 2 million barrels so that it can meet domestic fuel needs from its own refineries.

"The target is for all RDMP and GRR megaprojects to be completed in 2026, and gradually refinery capacity increases starting in 2022," Institute for Essential Services Reform (IESR) Executive Director Fabby Tumiwa believes that the slow agreement with potential Pertamina partner investors is an obstacle to refinery development in addition to funding problems.

"What needs to be done immediately is the acceleration of agreements with partners for other refineries. In addition, EPC contracts for upgrading refineries, for example, Balongan West Java, and Dumai refineries in Riau Sumatra. " 

     However, he is optimistic that the RDMP project will start to look successful in 2022-2024, provided the agreement with Pertamina's partners does not back down. "The SOE and Pertamina ministries are trying on track, especially as the project is monitored by the President."

Various efforts have been made to realize the dream of building a new refinery. If the realization is still slow, maybe because it is indeed "not all happy with the project".

Bisnis Indonesia, Page-23, Monday, March 9, 2020

Pertamina-OOG Discontinues Cooperation in Build Bontang Refinery

PT Pertamina (Persero) did not continue to work with the oil and gas company from Oman, Overseas Oil and Gas (OOG) Llc, in working on a new refinery with a capacity of 300 thousand barrels per day (BPD) in Bontang, East Kalimantan. Pertamina is now looking for new partners to complete the project.

Overseas Oil and Gas (OOG)

This was known in a meeting between Pertamina and the House of Representatives Commission VI on Monday (3/2). In his presentation, Pertamina reported the development of the Bontang refinery development in which the proposed Regional Spatial Plan (RSP/RTRW) had been submitted to the local regional government.

However, the company also said that the framework agreement / FWA agreement with partners had ended. The intended partner is OOG. FWA is the basis for both companies to form a joint venture / JV. This FWA is valid for 12 months. Therefore, the company formation between Pertamina and OOG should have been completed at the end of 2019. One of the things discussed in the formation of the JV is the share ownership of each company.

Pertamina Megaprocess Processing and Petrochemical Director Ignatius Tallulembang confirmed that cooperation with OOG did not continue. Furthermore, he will look for new partners in building the refinery project.

"We are open [looking for new partners]. But with Oman, we have [not continued], "he said in Jakarta.

In fact, according to Pertamina's data, the Bontang Refinery Project is targeted to start operating in the next five years or in February 2025. So far, OOG has signed a memorandum of understanding with PT Meta Epsi and PT Sanurhasta Mitra Tbk (MINA) to build the Bontang Refinery facility. The two companies will build supporting facilities (outside battery limit / OSBL), such as pipes, water treatment facilities, and fabrication.

In addition, OOG has also conducted open bidding in Singapore to engineering companies with a good reputation for conducting a financial feasibility study on 30 April 2019. This study will be used as a reference by lenders and banks to participate in funding the new refinery project.

The Bontang refinery requires a total investment of between the US $ 10-15 billion. In contrast to the cooperation between Pertamina and Rosneft Oil Company, for the Bontang Refinery Project, the funding needed to build the refinery is fully borne by OOG. While Pertamina obtained a 10% golden share as well as offtake of several products. The shareholding of this company can be increased.

Luhut Binsar Pandjaitan

Signals of continued cooperation with OOG have been voiced by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. The project partner at that time Luhut revealed that it could also be replaced if the performance was not good. The reason is, even though the project has been agreed since a few years ago this project has not yet been completed.

"What [Omani] company we want to find is a possible partner with Abu Dhabi, ADNOC or whatever," he said.

However, in fact, the oil and gas company from the United Arab Emirates actually did not enter the Bontang Refinery Project. The Abu Dhabi National Oil Company (ADNOC) agreed to explore further the potential of developing the Integrated Petrochemical Refinery Complex in Balongan, West Java. Pertamina and Adnoc signed a memorandum of understanding at the end of last year.

Mubadala Petroleum

While Mubadala Investment Company, a financial investment company from the United Arab Emirates (UAE), is interested in becoming an investor in the Balikpapan Refinery Project worth the US $ 5.5 billion. Pertamina has signed a principle agreement or Refinery Investment Principle Agreement to further evaluate investment cooperation opportunities in the processing sector.

Saudi Aramco

The agreement will provide a clear structure to ensure cooperation as a pathway to potential joint investment. Not only Bontang Refinery, but Pertamina also does not have an agreement with Saudi Aramco regarding the continued cooperation in capacity building and upgrading of the Cilacap Refinery.

After the asset valuation polemic that never ended, the two agreed to change the cooperation scheme into a lease. Under this scheme, Pertamina will pay the rental fees for the joint venture with Saudi Aramco which is building a new refinery unit at the Cilacap Refinery Complex. While the refinery unit which is currently in operation remains the property of Pertamina.

Nicke Widyawati

"The target is that we will agree to a leasing agreement within the next month. And if this happens, then the deal will happen, after that, we will carry out development, "said Pertamina President Director Nicke Widyawati.

The Bontang and Cilacap refineries are part of the six refinery projects developed by Pertamina. In addition to the Bontang refinery, another new refinery project developed by the company is Tuban Refinery in East Java. While the upgrading projects undertaken by other companies are in Balikapapan, East Kalimantan, in Balongan, West Java, and Dumai, Riau.

Arifin Tasrif 

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif encouraged the speeding of the refinery project undertaken by Pertamina. The refinery upgrading project is expected to start operating in the second period of President Joko Widoro's government. While the new refinery project has at least begun the construction phase.

IN INDONESIA

Pertamina-OOG Tidak Lanjutkan Kerja Sama Membangun Kilang Bontang

PT Pertamina (Persero) tidak melanjutkan kerja sama dengan perusahaan minyak dan gas dari Oman, Overseas Oil and Gas (OOG) Llc, dalam mengerjakan kilang baru berkapasitas 300 ribu barel per hari (bph) di Bontang, Kalimantan Timur. Pertamina kini mencari mitra baru untuk merampungkan proyek tersebut.

Hal ini diketahui dalam rapat antara Pertamina dan Komisi VI DPR RI pada Senin (3/2) lalu. Dalam presentasinya, Pertamina melaporkan perkembangan pembangunan Kilang Bontang di mana usulan Rencana Tata Ruang Wilayah (RTRW) telah disampaikan kepada pemerintah daerah setempat. 

Namun, perseroan juga menyampaikan bahwa kesepakatan frame work agreement/FWA dengan mitra telah berakhir. Mitra yang dimaksud adalah OOG. FWA merupakan dasar bagi kedua perusahaan untuk membentuk joint venture/JV. FWA ini berlaku selama 12 bulan. Sehingga, seharusnya pembentukan perusahaan antara Pertamina dan OOG ini rampung di akhir 2019 lalu. Salah satu hal yang dibahas dalam pembentukan JV adalah kepemilikan saham masing-masing perusahaan.

Direktur Megaproyek Pengolahan dan Petrokimia Pertamina Ignatius Tallulembang membenarkan bahwa kerja sama dengan OOG tidak berlanjut. Selanjutnya, pihaknya akan mencari mitra baru dalam membangun proyek kilang tersebut.

“Kami open [cari mitra baru]. Tetapi dengan Oman, kami sudah [tidak dilanjutkan],” kata dia di Jakarta.

Padahal, mengacu data Pertamina, Proyek Kilang Bontang ditargetkan mulai beroperasi dalam lima tahun ke depan atau pada Februari 2025. Sejauh ini, OOG telah menandatangani nota kesepahaman dengan PT Meta Epsi dan PT Sanurhasta Mitra Tbk (MINA) untuk membangun fasilitas Kilang Bontang. Kedua perusahaan ini akan membangun fasilitas pendukung (outside battery limit/OSBL), seperti pipa, fasilitas water treatment, dan fabrikasi. 

Selain itu, OOG juga telah melakukan open bidding di Singapura kepada perusahaan engineering dengan reputasi bagus untuk melakukan kajian kelayakan finansial pada 30 April 2019. Kajian ini akan digunakan sebagai acuan oleh para pemberi pinjaman dan perbankan untuk turut serta mendanai proyek kilang baru tersebut.

Kilang Bontang membutuhkan total investasi antara US$ 10-15 miliar. Berbeda dengan kerja sama Pertamina dan Rosneft Oil Company, untuk Proyek Kilang Bontang, pendanaan yang dibutuhkan dalam membangun kilang ditanggung sepenuhnya oleh OOG. Sementara Pertamina memperoleh golden share 10% sekaligus sebagai offtaker beberapa produk. Bagian kepemilikan saham perseroan ini dapat ditingkatkan.

Sinyal tidak berlanjutnya kerja sama dengan OOG ini pernah disuarakan oleh Menteri Koordinator Kemaritiman dan Investasi Luhut Binsar Pandjaitan. Mitra proyek ini saat itu Luhut mengungkapkan juga dapat diganti jika kinerjanya tidak bagus. Pasalnya, meski proyek sudah disepakati sejak beberapa tahun lalu proyek ini belum juga rampung.

“Yang [perusahaan] Oman kami mau carikan mitra mungkin dengan Abu Dhabi, ADNOC atau mana,” kata dia.

Namun, nyatanya, perusahaan minyak dan gas asal Uni Emirat Arab itu justru tidak masuk ke Proyek Kilang Bontang. Abu Dhabi National Oil Company (ADNOC) sepakat mendalami lebih lanjut potensi pengembangan Kompleks Kilang Terintegrasi Petrokimia di Balongan, Jawa Barat. Pertamina dan Adnoc telah menandatangani nota kesepahaman pada akhir tahun lalu.

Sementara Mubadala Investment Company, perusahaan investasi keuangan dari Uni Emirat Arab (UEA), berminat menjadi investor dalam Proyek Kilang Balikpapan senilai US$ 5,5 miliar. Pertamina telah meneken perjanjian prinsip atau Refinery Investment Principle Agreement untuk mengevaluasi lebih lanjut peluang kerja sama investasi di sektor pengolahan. 

Perjanjian tersebut akan memberikan struktur yang jelas untuk memastikan kerja sama sebagai jalur menuju investasi bersama yang potensial. Tidak hanya Kilang Bontang, Pertamina juga belum memiliki kesepakatan dengan Saudi Aramco terkait kelanjutan kerja sama peningkatan kapasitas dan perbaikan (upgrading) Kilang Cilacap. 

Setelah polemik valuasi aset yang tidak kunjung usai, keduanya sepakat mengubah skema kerja sama menjadi sewa. Dalam skema ini, Pertamina akan membayar biaya sewa terhadap perusahaan patungan dengan Saudi Aramco yang membangun kilang unit baru di Komplek Kilang Cilacap. Sementara unit kilang yang saat ini sudah beroperasi tetap menjadi milik Pertamina.

“Targetnya, kami dalam maksimum satu bulan ke depan akan menyepakati leasing agreement. Dan kalau ini terjadi, maka deal itu akan terjadi, setelah itu kami akan melakukan pembangunan,” kata Direktur Utama Pertamina Nicke Widyawati.

Kilang Bontang dan Cilacap merupakan bagian dari enam proyek kilang yang dibangun Pertamina. Selain Kilang Bontang, proyek kilang baru lainnya yang dibangun perseroan yakni Kilang Tuban di Jawa Timur. Sementara proyek upgrading yang dikerjakan perseroan lainnya adalah di Balikapapan, Kalimantan Timur, di Balongan, Jawa Barat, dan Dumai, Riau. 

Sebelumnya, Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif mendorong percepat proyek kilang yang dikerjakan oleh Pertamina. Untuk proyek upgrading kilang, diharapkan sudah mulai beroperasi di periode kedua pemerintah Presiden Joko Widoro ini. Sementara proyek kilang baru setidaknya sudah mulai tahap konstruksi.

Investor Daily, Page-9, Wednesday, Feb 5, 2020

Pursue the Target of Oil and Gas Lifting

The realization of oil and gas lifting last year missed the target. During 2019, the realization of oil and gas lifting only reached 90.5 percent or 1.8 million barrels of oil equivalent per day (BOEPD). 

   In fact, the target in the 2019 State Budget (APBN) reaches 2.025 million BOEPD. This year, the government set oil and gas lifting 1,946 million BOEPD with details of 755 thousand from oil and 1.191 million from gas.

Arifin Tasrif 

Although declining compared to last year, this year's target is considered very high. ESDM Minister Arifin Tasrif is optimistic that this year's target will be achieved. He said, Indonesia still had a big opportunity to increase lifting or production-ready to sell oil and gas by working on new fields and developing the existing Work Areas (WK).

"Right now we are working on developing new sources of oil and gas," Arifin said in Jakarta.

Arifin acknowledged natural processes such as amount and time resulted in the decline of oil and gas production in the last decade. The condition was a big task when he was appointed by President Joko Widodo to solve the problem.

"The most important thing is how to increase oil and gas lifting because indeed in recent years our production has declined," he said.

At present, the government has entrusted Pertamina as a state-owned company to manage several WKs whose contracts have ended. Arifin revealed optimism regarding the achievement of the oil and gas lifting target that was seen from the 12 projects targeted to apply this year.

Petronas Carigali Ketapang III Ltd

The 12 projects include, among others, Bukit Tua Pashe-3 by Petronas Carigali Ketapang III Ltd with a production capacity of 31.5 million standard cubic feet per day (mmscfd). 

Blogger Agus Purnomo in Petronas Carigali Ketapang

    Currently, the operator is in the engineering, procurement, and construction (EPC) stage. The project is scheduled for production in January 2020. Then, there is a Grati Pressure Lowering project undertaken by Ophir Indonesia (Sampang) Pty Ltd with a production capacity of 30 mmscfd.

The current stage is the work of the EPC and is scheduled to produce in March 2020. Furthermore, there is a Buntal-5 project that Medco Energy works on and is scheduled to produce in March 2020.

Similar to Bukit Tua Pashe-3, the project was initially listed as onstream last year but was forced to be unable to operate. This happened because the rig for drilling the project did not arrive immediately because it was still used in Vietnam.

In addition, the government plans to implement a number of strategies by providing incentives to oil and gas business entities to accelerate 42 oil and gas field development / POD plans. Next also encourages the use of Enhanced Oil Recovery (EOR) technology and legalizes the management of old wells by the community even though the production is small.

"Through SKK Migas, the government also opened a One Door Service Policy (ODSP) service to realize the target of producing 1 million barrels of oil per day by 2030," he added.

IN INDONESIA

Kejar Target Lifting Migas

Realisasi lifting migas tahun lalu meleset dari target. Sepanjang 2019, realisasi lifting migas hanya mencapai 90,5 persen atau 1,8 juta barrels of oil equivalent per day (BOEPD). Padahal, target dalam Anggaran Pendapatan dan Belanja Negara (APBN) 2019 mencapai 2,025 juta BOEPD. Tahun ini, pemerintah menetapkan lifting migas 1,946 juta BOEPD dengan perincian 755 ribu dari minyak dan 1,191 juta dari gas. 

Meski menurun dibandingkan tahun lalu, target tahun ini dinilai sangat tinggi. Menteri ESDM Arifin Tasrif optimistis target tahun ini akan tercapai. Dia menuturkan, Indonesia masih punya peluang besar meningkatkan lifting atau produksi siap jual minyak dan gas bumi dengan mengerjakan ladang baru serta mengembangkan Wilayah Kerja (WK) eksisting.

”Sekarang ini kita sedang mengupayakan supaya ada pengembangan sumber-sumber minyak dan gas baru," kata Arifin di Jakarta.

Arifin mengakui proses alamiah seperti jumlah dan waktu mengakibatkan terjadinya penuruman produksi migas dalam dekade terakhir. Kondisi itu menjadi tugas besar ketika dirinya ditunjuk Presiden Joko Widodo untuk menyelesaikan permasalahan tersebut.

"Hal yang paling utama adalah bagaimana bisa meningkatkan lifting migas karena memang dalam beberapa tahun ini produksi kita menurun,” ujarnya.

Saat ini, pemerintah memercayakan kepada Pertamina selaku perusahaan milik negara untuk mengelola beberapa WK yang sudah berakhir masa kontraknya. Arifin mengungkapkan, optimisme terhadap capaian target lifting migas tersebut terlihat dari 12 proyek yang ditargetkan berlaku tahun ini. 

Ke-12 proyek tersebut, antara lain, Bukit Tua Pashe-3 yang dikerjakan Petronas Carigali Ketapang III Ltd dengan kapasitas produksi 31,5 juta standar kaki kubik per hari (mmscfd). Saat ini operator dalam tahapan pengerjaan engineering, procurement, dan construction (EPC). Proyek tersebut dijadwalkan berproduksi Januari 2020. Kemudian, ada proyek Grati Pressure Lowering yang dikerjakan Ophir Indonesia (Sampang) Pty Ltd dengan kapasitas fasilitas produksi 30 mmscfd.

Tahapan saat ini adalah pengerjaan EPC dan dijadwalkan berproduksi pada Maret 2020. Selanjutnya, ada proyek Buntal-5 yang dikerjakan Medco Energi dan dijadwalkan berproduksi pada Maret 2020. 

Sama dengan Bukit Tua Pashe-3, awalnya proyek tersebut masuk daftar onstream tahun lalu, tetapi terpaksa tidak dapat beroperasi. Hal itu terjadi lantaran rig untuk pengeboran proyek tidak segera datang karena masih digunakan di Vietnam. 

Di samping itu, pemerintah berencana menjalankan sejumlah strategi dengan memberikan insentif kepada Badan Usaha (BU) minyak dan gas untuk mempercepat 42 rencana pengembangan/POD lapangan minyak dan gas. Berikutnya juga mendorong penggunaan teknologi Enhanced Oil Recovery (EOR) serta melegalkan pengelolaan sumur tua oleh masyarakat meski produksinya sedikit.

”Melalui SKK Migas, pemerintah juga membuka layanan One Door Service Policy (ODSP) untuk merealisasikan target produksi minyak 1 juta barel per hari pada 2030,” imbuhnya.

Jawa Pos, Page-5, Monday, Jan 20, 2020

DPR ‘knows’ Oil and gas mafia: Pertamina boss certainly knows

PT Pertamina (Persero) officials are believed to recognize oil and gas, mafia perpetrators. President Joko Widodo (Jokowi) was also advised to eradicate the oil and gas mafia through Pertamina's bosses. House of Representatives Commission VII member Dr. Ir Kardaya Warnika DEA assessed the practice of oil and gas mafia can actually be felt. But to find its existence is fairly difficult.

"When it comes to the oil and gas mafia, I always say it smells like a fart, smells, but if you look at it, someone who farts is difficult, but it feels there," he said.

oil and gas mafia

According to Kardaya, the practice of oil and gas mafia is difficult to investigate because most of them act in accordance with existing regulations. But they take advantage of the gaps in the applicable provisions.

"The oil and gas mafia sees an opportunity if the purchase of oil feels more expensive than it should be, well that is a sign. Actually, the oil and gas mafia is hard to see because they work according to the regulations, so it's legal. But they are exploiting loopholes in existing regulations, "he added.

He gave an example, for example, there are oil and gas projects that are participated by several companies. If traced it turns out that the parent of the holding companies participating in the tender is one party. With such a practice, Kardaya believes Pertamina officials as the BUMN and the largest oil and gas company in Indonesia know and are familiar with oil and gas mafia players.

"Actually, the Pertamina boss certainly knows that. They, oil and gas mafia usually have good relations with Pertamina officials, "he said.

Therefore, he suggested Jokowi summon Pertamina officials. Forced to stop the practice of oil and gas mafia then threaten to be removed from his position if it is not done.

"The president has said first he wants to eradicate the mafia. Secondly, he says he knows who is playing, in my opinion just call it Managing Director with Pertamina's Chief Commissioner. No need to talk out, I know this is someone who plays, I do not want to know this practice must be lost, if it does not disappear then sanctions will be removed, "he explained.

"Because the official was afraid of only one, namely losing his position, by God alone the official was not afraid, after being sworn in the official did something strange," Kardaya concluded.

Evidence of the Mafia Oil and gas refineries were not immediately built

Previously, according to a count of the official governance reform team led by Faisal Basri when dismantling the official mafia practices in 2014-2015 in Petral's body, it was known that oil importers could get USD 1 to USD 3 from each barrel of oil imports into Indonesia. This is Evidence There is an oil and gas mafia.

The President Jokowi

Regarding the oil and gas mafia, the Jokowi government is now again making efforts to eradicate it. So what is the proof that the oil and gas mafia is still hanging around? Energy Economics Observer from Gadjah Mada University (UGM) Fahmy Radhi said, one proof of the oil and gas mafia was the absence of oil and gas refinery development.

Saudi Aramco

"There is a systemic effort blocking the construction of refineries. It was also complained by Jokowi, Pertamina had not built a refinery in 35 years, even though there were also many investors such as Saudi Aramco, there was Russian Rosneft, there was OOG (Overseas Oil & Gas) Oman, it had been in the framework of signing a framework agreement, but until now there were none which can be realized, "he said.

Rosneft

Fahmi who was once the Anti-Mafia Oil and Gas Team which was once chaired by Faisal Basri, believes that the oil and gas mafia is closely related to imports. They can continue to live if Indonesia continues to import oil and gas, so they do various ways to prevent it.

"So if based on our findings first, then looking at current symptoms, one of the indicators is indeed an increase in oil and gas imports, and the oil and gas mafia playing in the import route earlier, hunting rent in imports" he added.

The amount of oil and gas imports has indeed become Jokowi's concern. The President claimed to have known the name of the mastermind behind the import of oil and gas which reached 800 thousand barrels per day.

IN INDONESIA

DPR ‘Tahu’ Mafia Migas: Bos Pertamina Pasti Tahu

Para petinggi PT Pertamina (Persero) diyakini mengenali para pelaku mafia minyak dan gas. Presiden Joko Widodo (Jokowi) pun disarankan memberantas mafia migas melalui para bos Pertamina. Anggota Komisi VII DPR Dr Ir Kardaya Warnika DEA menilai praktik mafia migas sebenarnya bisa dirasakan. Namun untuk mencari keberadaannya memang terbilang sulit.

“Kalau tentang mafia minyak dan gas itu saya selalu mengatakan ini seperti bau kentut, tercium tapi kalau dilihat siapa yang kentut susah, tapi dirasakan ada,” ujarnya.

Menurut Kardaya, praktik mafia minyak dan gas sulit diselidik lantaran kebanyakan dari mereka beraksi mengikuti peraturan yang ada. Namun mereka memanfaatkan celah-celah dari ketentuan yang berlaku.

“Mafia minyak dan gas ini melihat peluang kalau pembelian minyak terasa lebih mahal dari yang semestinya, nah itulah tanda-tandanya. Sebetulnya mafia minyak dan gas ini susah dilihat karena mereka bekerja mengikuti peraturan ketentuan, ya legal saja. Tapi mereka memanfaatkan celah-celah dari peraturan yang ada,” tambahnya.

Dia mencontohkan, misalnya ada proyek minyak dan gas yang diikuti oleh beberapa perusahaan. Jika ditelusuri ternyata induk dari induk perusahaan-perusahaan yang ikut tender merupakan satu pihak. Dengan praktik seperti itu, Kardaya yakin petinggi Pertamina selaku BUMN dan perusahaan migas terbesar di Indonesia tahu dan kenal dengan para pelaku mafia minyak dan gas.

“Sebetulnya bos Pertamina pasti tahu itu. Mereka mafia minyak dan gas biasanya mempunyai hubungan yang baik dengan petinggi Pertamina,” tutur dia.

Oleh karena itu dia menyarankan Jokowi untuk memanggil para petinggi Pertamina. Paksa untuk menyetop praktik mafia minyak dan gas lalu ancam copot dari jabatannya jika itu tidak dilakukan.

“Presiden sudah mengatakan pertama dia ingin memberantas mafia. Kedua dia mengatakan dia tahu siapa yang bermain, menurut saya ya tinggal panggil saja

Direktur Utama bersama Komisaris Utama Pertamina. Tidak perlu bicara keluar, saya tahu ini orang yang bermain, saya tidak mau tahu praktik ini harus hilang, kalau tidak hilang maka sanksinya ya dicopot,” terangnya.

“Karena pejabat itu takutnya hanya satu, yaitu kehilangan jabatan, dengan tuhan saja pejabat tidak takut, setelah disumpah pejabat itu melakukan hal aneh-aneh,” tutup Kardaya.

Bukti Mafia Minyak dan gas, kilang tidak segera dibangun

Sebelumnya menurut hitungan tim reformasi tata kelola pejabat yang dipimpin Faisal Basri sewaktu membongkar praktik mafia pejabat pada 2014-2015 lalu di tubuh Petral, diketahui para importir minyak ini bisa mendapatkan USD 1 sampai USD 3 dari tiap barel impor minyak ke Indonesia. Ini Bukti Ada Mafia minyak dan gas. 

Terkait mafia minyak dan gas kini pemerintahan Jokowi kembali melakukan upaya untuk memberantasnya. Lantas apa buktinya mafia minyak dan gas masih berkeliaran? Pengamat Ekonomi Energi dari Universitas Gadjah Mada (UGM) Fahmy Radhi mengatakan, salah satu bukti adanya mafia minyak dan gas adalah tidak adanya pembangunan kilang minyak dan gas.

“Ada upaya sistemik menghalangi pembangunan kilang. Itu kan dikeluhkan Jokowi juga, sudah 35 tahun Pertamina tidak membangun kilang, padahal banyak juga investor seperti Saudi Aramco, ada Rosneft Rusia, ada OOG (Overseas Oil & Gas) Oman itu sudah dalam tahap penandatanganan framework agreement, tapi sampai sekarang tidak ada satu pun yang bisa direalisasikan,” tuturnya.

Fahmi yang pernah menjadi Tim Anti Mafia minyak dan gas yang pernah diketuai oleh Faisal Basri, meyakini mafia minyak dan gas erat kaitannya dengan impor. Mereka bisa hidup terus jika Indonesia masih terus impor minyak dan gas, oleh karena itu mereka melakukan berbagai cara untuk menghalanginya.

“Jadi kalau berdasarkan pada hasil temuan kami dulu, kemudian melihat gejala sekarang ini, salah satu indikatornya memang peningkatan impor minyak dan gas, dan mafia minyak dan gas bermain di jalur impor tadi, berburu rente di impor" tambahnya.

Besarnya impor minyak dan gas memang sudah menjadi perhatian Jokowi. Presiden mengaku sudah mengetahui nama dalang di balik impor minyak dan gas yang mencapai 800 ribu barel per hari.

Duta Masyarakat, Page-1, Monday, Jan 20, 2020