Ensuring LPG Supply, Pertamina Collaborates with ADNOC

 

    Pertamina ensures that it gets LPG and Sulfur supplies from the Abu Dhabi National Oil Company (ADNOC) after Pertamina signs the LPG and Sulfur Sales Confirmation Agreement, the signing of the collaboration between the Vice President Trading & Other Business Sub Holding Commercial & Trading (SH C&T) PT Pertamina (Persero), Maya Kusmaya with ADNOC Senior President International Relations, Salem Al Meheiri in the Business Forum Indonesia - Emirates Amazing Week (IAEW), witnessed directly by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan and the United Arab Emirates (PEA) Minister of Energy and Infrastructure ), Suhail Al Mazroeui.

ADNOC

    Meanwhile, the national demand for LPG in 2022 is estimated to reach 8.30 million tons, increasing to 9.12 million tons in 2023 and 10.01 million tons in 2024. 

    Director of Central Marketing & Commerce PT Pertamina Patra Niaga, SH C&T PT Pertamina (Persero), Hasto Wibowo revealed that this collaboration ensures the safety of the national LPG supply which is projected to continue to increase every year.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. Hopefully, with this cooperation Pertamina can expand supply sources and maintain supply stability," said Hasto.

Bhirawa, Page-10, Monday, March 8, 2021

PGN Builds Gas Infrastructure in Kendal

 

    PT Perusahaan Gas Negara (Persero) Tbk is the sub-holding gas of PT Pertamina (Persero) supports the provision of infrastructure and natural gas distribution services in an effort to grow economic activity through new industries in the Central Java region. 

    One of the areas served by PGN is the Kendal Industrial Estate (KIK). KIK is a new industrial area that is the readiest in Indonesia with all the facilities. However, KIK is still having problems with certainty about the availability of natural gas which has made investors delay investing in this area.

    PGN's Director of Infrastructure and Technology, Redy Ferryanto, said that PGN has conducted a study on KIK, especially regarding gas demand since 2016. The latest developments show that gas demand in the region is very large. PGN continues to coordinate intensively with KIK regarding the potential total gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

    Redy said, PGN will strive to serve the natural gas trade through PGN's pipeline distribution network infrastructure in the Sales & Operation Region III (SOR III), which includes Central Java, East Java, and East Indonesia. Meanwhile, natural gas trading other than pipelines (CNG and LNG) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas).

    In line with the completion of the construction of the Gresik-Semarang gas transmission pipeline by PT Pertamina Gas (Pertagas), Redy continued, PGN is targeting to be able to realize the certainty of distribution of natural gas supply in Central Java. 

    The 267 kilometers (km) long transmission pipeline network has a maximum gas flow capacity of around 400 million standard cubic feet per day (MMSCFD). The potential source of supply that will be supplied by the Gresik-Semarang Pipe comes from Jambaran Tiung Biru (JTB) owned by PT Pertamina EP Cepu (PEPC).

Jambaran Tiung Biru (JTB)

"Optimizing natural gas distribution infrastructure to meet energy needs for the industry is expected to have a positive impact on the growth of KIK and the surrounding community for the progress of the Central Java economy," said Redy.

    KIK has been designated as a special economic zone (KEK) as a result of a joint venture scheme collaboration between PT Jababeka Tbk and Sembawang Corporation. KIK was inaugurated by President Joko Widodo and Singaporean Prime Minister Lee Hsien Loong. To date, there are 64 companies from eight countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia in this ABTB product.

    The development of the industrial center in KIK is expected to be able to generate micro, small and medium enterprises (MSMEs) as well as open new jobs for the surrounding community. 

    According to Redy, the development of natural gas distribution infrastructure in Central Java is very challenging for PGN. Therefore, cooperation and support from the local government and various stakeholders are also very important for the development of natural gas infrastructure in Central Java.

Republika, Page-9, Thusday, Feb 25, 2021

Secure Energy Supply, Pertamina Continues Strategic Projects

 

PT Pertamina (Persero) ensures that investment in strategic projects carried out in all business lines will continue even during the Covid-19 pandemic. This is to secure the resilience and independence of national energy in the future. 

Fajriyah Usman

    Pertamina Vice President for Corporate Communication, Fajriyah Usman, said that despite the pressure from low oil prices, exchange rates and a decline in energy demand, Pertamina remains committed to carrying out its strategic projects.

"Primarily, projects that will have an impact on national oil and gas production and energy in the next few years," said Fajriyah Usman.

the Jambaran-Tiung Biru Project

In Upstream, the company is working on the Jambaran-Tiung Biru Project through its affiliate, PT Pertamina EP Cepu (PEPC). In this project, Pertamina has completed drilling two wells at Wellpad Jambaran Central and perforating wells without using a rig using the Smart Coiled Tubing Unit in Jambaran East.

"This project will produce an average of 192 MMscfd (million standard cubic feet per day) gas with a target of gas on stream in 2021," said Fajriyah.

In addition, the company is also working on the KLD Project through PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ). After the KLD-1 well drilling has been completed, the project is currently entering the KLD-3 well drilling stage. This project is targeted to increase reserves and production by December 2020.

In other business sectors, Pertamina also continues with refinery development and construction projects through PT Kilang Pertamina Internasional (KPI). One of them is the Balikpapan upgrade and capacity building project and the Lawe-Lawe Terminal, which is one of the company's largest projects worth US $ 6.5 billion. This project will increase refinery capacity, improve product quality, and reduce the cost of production of fuel oil (BBM).

"The Balikpapan Refinery project has reached 22.26% as of October 22, 2020, running with strict health protocols, in addition to supporting the economic recovery program because it absorbs more than 5,000 workers," She explained.

In addition, the company continues to improve the reliability of its fuel storage and distribution facilities. Pertamina is running a number of storage tank infrastructure projects at the BBM Terminal, LPG Terminal, and the DPPU, as well as carrying out maintenance on 280 vessels. 

    This year, Pertamina has budgeted an investment fund of US $ 7.8 billion. Most of this investment fund was allocated for the upstream oil and gas sector amounting to the US $ 3.7 billion. In addition, the investment budget for refinery projects is the US $ 1.9 billion, downstream infrastructure is the US $ 1.2 billion, gas sub-holding investment is the US $ 800 million, and others US $ 300 million.

Fajriyah added, his party also ensures that the work of these projects is in accordance with the provisions for using the Domestic Component Level (TKDN). This is to strengthen the national industry, create jobs, and reduce dependence on imported products so that they can move the wheels of the national economy. Until the first semester of this year, Pertamina's TKDN average reached 54%.

"As a state-owned oil and gas company, Pertamina continues to carry out business and projects according to the direction of the Government, in this case, the Ministry of BUMN and the Ministry of Energy and Mineral Resources striving for the future of energy as well as driving the national economy by optimizing the use of domestic resources, "explained Fajriyah.

Investor Daily, Page-10, Monday, Nov 2, 2020

Strategic Project Investments are ongoing

 

PT Pertamina (Persero) ensures that strategic project investment in all of the company's business lines will continue during the pandemic. 

Fajriyah Usman

    VP of Corporate Communication of Pertamina, Fajriyah Usman, said that the company is committed to maintaining national energy production in the next few years.

"Even though we were hit by a triple shock during the pandemic and it caused obstacles in the field," said Fajriyah.

the Jambaran-Tiung Biru unitization field

She said several strategic projects in the upstream area, such as Jambaran-Tiung Biru managed by PT Pertamina EP Cepu (PEPC), are currently continuing and have successfully carried out rigless perforation with smart coiled tubing units.

This project will produce gas from the Jambaran-Tiung Biru unitization field with an average production of 192 MMscfd with a target gas on stream in 2021. In addition, activities off the north coast of West Java carried out by PHE ONWJ are continuing. After completing the KLD-1 well drilling, the KLD ONWJ development project is currently entering the KLD-3 well drilling stage.

This project is targeted to increase reserves and production by December 2020. In other business sectors, Pertamina continues the development of the PT Pertamina International Refinery. One of them is the Balikpapan and Lawe-lawe RDMP project, which is worth the US $ 6.5 billion. 

Nicke Widyawati

    Pertamina President Director Nicke Widyawati revealed the triple shock that Pertamina experienced during the pandemic.

First, a decrease in sales of 25% nationally. Second, the company's cash flow is affected by rupiah fluctuations. Nicke admitted that he had created a tough and very tough scenario to anticipate the effect of the exchange rate on the company's revenue. Third, the company's cash flow is affected by fluctuations in world oil prices. Currently, global crude oil prices are very volatile due to falling demand amid Covid-19.

Bisnis Indonesia, Page-5, Monday, Nov 2, 2020

Pertamina is considering PLN's electricity offer for the Rokan Block

    PT Pertamina (Persero) is building communication with various parties for the operational preparation of the Rokan block working area, including the provision of electricity and steam which are indispensable in supporting the continuity of oil production activities. One of them is the State Electricity Company (PLN).

the State Electricity Company (PLN)

    Pertamina SVP Corporate Communication & Investor Relations Agus Suprijanto said that oil production currently reaches 170,000 barrels of oil per day (around 25% of national oil production). He revealed that PLN had submitted an initial offer to Pertamina regarding the provision of electricity and steam.

"Pertamina welcomes PLN's desire to provide electricity and steam supply for the Rokan block working area starting August 9, 2021. By cooperating with BUMN in the electricity sector, we hope that the preparation of post-management transfer of electricity and steam supply will remain safe. PLN together with PHR will conduct intensive discussions regarding this matter in the near future, "said Agus.

the Rokan Block Work Area By Chevron

    Currently, the Rokan Block Work Area receives electricity and steam supply from an integrated power system which includes 3 main power generation facilities, namely Minas Gas Turbine, Central Duri Gas, and North Duri Cogen (NDC). 

    Regarding PLN's offer to provide electricity and steam in the Rokan block Work Area, Agus said that currently Pertamina has submitted a response and is waiting for a further proposal from the power company and hopes that the discussion of the Electricity and Steam Sale and Purchase Agreement with PLN will go well and signed in November 2020.

"Synergy among energy SOEs do not only increase portfolios that mutually reinforce operational performance in each business sector, but also hopefully encourage the government's strategic development projects to run well according to the expected target," said Agus.

Investor Daily, Page-10, Friday, Oct 30, 2020

First, the Restructuring of the Business Is Running Smoothly

PT Pertamina (Persero) ensures that the restructuring process of the company is carried out according to what is customary in the business world. Currently, the restructuring process is still in a transition period to ensure Pertamina and the entire group business are ready for the next process. 

Blogger Agus Purnomo in SKK Migas

    SVP Corporate Communication & Investor Relations of Pertamina Agus Suprijanto said Pertamina restructuring is a mandate for shareholders that must be realized. In the process, management always considers strategic aspects, procedures, and handling of all company assets, including employees, in accordance with applicable legal regulations.

"The company restructuring carried out by Pertamina currently has common practices in efforts to improve company performance and efficiency, as has happened in various other global energy companies. When restructuring, the company also goes through a transition period, "said Agus.

Agus said the legal position or legal standing regarding the formation of a holding and group business is clear. Regarding assets, Agus confirmed that until now there has been no transfer of Pertamina's assets to other group businesses or subsidiaries. 

    The status of the management of the work area of ​​the upstream subsidiary that has contracted with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) remains the same. Agus said regionalization was carried out to coordinate and ensure that upstream oil and gas operations were integrated so that operations would be more efficient.

Agus denied accusations that Pertamina's restructuring had hampered operations and strategic projects. According to him, so far all business processes and operations from upstream to downstream have been running well.

"This shows that Pertamina's business processes are fine, not messy. In terms of work procedures, management has also issued regulations governing workflow and authority during the transition period, ”said Agus.

Regarding refinery revitalization and construction, Agus said, until now the refinery development master plan and grass-root refinery (RDMP / GRR) projects are still ongoing according to predetermined stages. In general, all projects showed clear progress and went well with management monitoring.

"The restructuring process is carried out in stages. In the current transitional period, we ensure that all restructuring preparations are complete, ”said Agus.

The Ministry of State-Owned Enterprises (BUMN) stated that Pertamina's restructuring was carried out to answer the needs of the oil and gas industry. Special Staff to the Minister of BUMN, Arya Sinulingga, said that the energy sector continues to undergo transformation or change, which demands that Pertamina be able to adjust. There are five sub holdings that have been formed, including the upstream sub-holding whose operations are held by PT Pertamina Hulu Energi (PHE).

Then, there is PT Perusahaan Gas Negara (Persero) Tbk as a gas sub-holding and refinery and petrochemical sub-holding run by PT Kilang Pertamina Internasional. Power and NRE sub-holding (PT Pertamina Power Indonesia) and commercial and trading sub-holding (PT Patra Niaga). The shipping company operation is held by PT Pertamina International Shipping.

Republika, Page-9, Monday, Oct 26, 2020

Nicke Widyawati is in the rank of the 16 most influential women in the world

 

Global business media, Fortune named Pertamina's President Director Nicke Widyawati as the Most Powerful Woman in the World 2020. Nicke was ranked 16 out of 50 women in the world who were considered to have the ability to control the company they lead. Fortune assessed that Nicke was able to handle a state-owned company with annual revenue of more than US $ 54.6 billion and 32,000 workers worldwide.

Nicke Widyawati

Nicke's ability to control the company was strengthened by the government's trust to re-elect him to lead the company's transformation into a holding company in the oil and gas sector. In response to this, Nicke was grateful and received positively for Fortune's coronation as one of the most influential women in the world by Fortune. Nicke considered that Fortune's ranking was an appreciation not only for herself but also for the entire Pertamina team.

Pertamina 

According to Nicke, as the top level of leadership at the national state-owned oil and gas company, he has the responsibility to ensure Pertamina continues to provide energy for the nation and state and to bring Pertamina as a global energy company that is the driving force for national economic growth.

"The challenges of the future of energy are in sight, and we still prioritize service to the nation, community service, and respond to global energy challenges. This position is the result of the hard work of all elements in Pertamina and also the support of all stakeholders and the Indonesian nation, ”said Nicke.

Fortune also considered Nicke Widyawati as the President Director of Pertamina very worthy of being ranked 16 because he was able to innovate in controlling the company during the Covid-19 pandemic so that Pertamina's losses could be suppressed, far better than other global oil and gas companies.

Fajriyah Usman

VP of Corporate Communication of Pertamina, Fajriyah Usman, said that this list was an annual ranking that specifically highlighted the most influential women in international-based business. Mrs. Nicke Widyawati is the only Indonesian woman on the list of 50 Most Influential Women iN Fortune's 2020 world.

Fortune also placed Pertamina's Managing Director ahead of the CEOs of various well-known companies in the global arena, such as Temasek, which is the largest state-owned company in Singapore, Shell, a Dutch multinational oil and gas company, and other leading CEOs such as Unilever, PepsiCo, Novartis, Puma Energy, Starbucks, Morgan Stanley , etc.

"This achievement makes Pertamina and Indonesia proud. Mrs. Nicke has represented all women in Indonesia in world recognition, "said Fajriyah.

Fajriyah believes this recognition will be an inspiration and role model for all Pertamina employees to continue to work hard to provide energy and bring Pertamina as a global oil and gas company. The concern of Pertamina's Board of Directors, the Board of Commissioners, and all levels of Pertamina's management is how to manage a company that can produce the best performance that can contribute to the nation and state.

"We hope that international trust will continue to increase in Pertamina, which carries a vision as a world-class national energy company and is able to face the global energy challenges going forward," said Fajriyah.

Investor Daily, Page-10, Friday, Oct 23, 2020

The Efficiency of the Rokan Block Oil Pipeline Project

    PT Perusahaan Gas Negara Tbk (PGN) has made the efficiency of the oil pipeline project in the Rokan Block a new standard for infrastructure projects it undertakes, especially in implementing National Strategic Projects (PSN). 

    President Director of PGN Suko Hartono stated that the PGN Group is committed to striving for the best support for PT Pertamina's Oil and Gas Holding so that the transition process for the management of the Rokan Block runs smoothly and can increase the achievement of financing efficiency.

The Rokan Block

    In principle, the Rokan oil pipeline project is an effort to boost efficiency in Indonesia's energy budget, in line with the government's efforts to reduce oil imports. In addition, the Rokan Pipe project is an effort to support the Government's program in increasing the lifting and effectiveness of oil distribution from the Rokan Block, which is the backbone of national petroleum production, as well as one of the largest oil blocks in Indonesia.

    With competence in developing oil and gas infrastructure and distributing energy both natural gas to all sectors, PGN seeks to improve the effectiveness and efficiency of energy distribution. The Rokan oil pipeline is one of the biggest energy projects this year which has successfully implemented a budget efficiency of Rp 2.1 trillion.

    This is in line with pandemic conditions that require a high level of efficiency in the implementation of investment and operation activities. In addition, the Rokan oil pipeline project also involves 60% of local workers, so that it can provide great benefits to the surrounding community for economic recovery during the pandemic. The estuary of this investment operation is also aimed at driving the wheels of the regional and national economy.

"Regarding the selection of partners and partner schemes for the Rokan Oil Pipe Construction Project, the process is still under internal review by Pertagas as a subsidiary of PGN. PGN as the parent and Subholding Gas is committed to the implementation and completion will be on time. As for project implementation, it is adjusted to the ongoing process, and in accordance with project implementation rules. We appreciate the attention of many parties regarding this national strategic project to take place immediately and we ensure that the project preparation process is nearing its final stage so that it can be implemented immediately, "said Suko Hartono.

    Suko explained that the financing scheme for the Rokan Pipe construction project had been carried out in accordance with a study of the economic principles of a project. The review process is carried out in accordance with internal procedures that have involved elements of the Board of Directors and Board of Commissioners by prioritizing GCG principles.

    PGN is open to safe reporting through a whistleblower mechanism if there are things that are not in accordance with the principles of GCG in the company. With this mechanism, the reporter is guaranteed protection if he finds or suspects non-transparent activity at PGN. 

    Reporting obtained from the Whistle Blowing System (WBS) mechanism will receive attention and follow-up, including the imposition of appropriate penalties or sanctions in order to provide a deterrent effect for perpetrators of violations and for those who intend to do so. PGN opens access to reporting on actions that are detrimental to the company/environment/community through https://wbs.pgn.co.id

Investor Daily, Page-10, Thursday, Oct 22, 2020