Pertamina is back in the Fortune Global 500

    PT Pertamina (Persero) re-registered its name as the only Indonesian company to be included in the 2021 Fortune Global 500 list. With a company revenue value of US$ 41.47 billion in the 2020 financial year, Pertamina is in position 287.

"We would like to thank all stakeholders because Pertamina's achievements cannot be separated from the positive support from various parties, both the directors, the board of commissioners and all Pertamina Group employees, as well as shareholders, the government, and the community. This is also an international recognition that Pertamina is equal to other world-class companies," said Pertamina's President Director, Nicke Widyawati.

Nicke Widyawati

    Nicke said, in the challenges of the pandemic since last year, Pertamina faced a triple shock so that it suffered a significant decline in revenue. However, with innovations and business breakthroughs carried out in all business lines and the ongoing organizational transformation, Pertamina was able to increase the company's revenue to US$ 41.47 billion and make a profit of US$ 1.05 billion in 2020. As a BUMN, Pertamina is also consistent. 

Pertamina

    Ensure the supply of energy for the country through various programs, including One Price Fuel, Conversion of Oil to Gas for Fishermen and Farmers, construction of Natural Gas Transmission & Distribution Networks, as well as other downstream infrastructure.

    Through the achievement of Pertamina's operational and financial performance, the total government revenue in 2020 contributed by Pertamina almost reached Rp 200 trillion, namely through tax payments, dividends, Non-Tax State Revenue (PNBP) worth Rp 126.7 trillion, as well as state revenues from oil. The State Shares of Crude and Condensate (MMKBN) from Pertamina's oil and gas blocks amounted to Rp 73.1 trillion.

    With an energy ecosystem that continues from upstream to downstream, Pertamina maintains the survival of 1.2 million direct workers and the multiplier effect on around 20 million workers indirectly. Pertamina's support for the wider community for the recovery of the pandemic also continues to be felt. 

    Starting from the construction of several Covid-19 hospitals, transportation assistance for oxygen distribution, to Pertamina's attention to more than 13,000 MSMEs affected by the pandemic to be able to survive and even upgrade to class.

“The challenges of the Covid-19 pandemic are not light. In addition to strengthening steps to achieve the target market value of US$ 100 billion by 2024, all levels of management and employees remain focused on providing services to the community. We are optimistic that it will continue to grow and continue to provide the widest possible benefits for the community and the country,” said Nicke.

    The Fortune Global 500 ranking is an annual event conducted by Fortune magazine since 1955. The main benchmark is the amount of revenue, including consolidated gross revenue. Other indicators are shareholder equity participation, market capitalization, profits, number of employees, and since 1990 the company's country of origin indicator has also been considered in the Fortune Global 500. Several names of international oil companies are also listed in the 2021 Fortune Global 500 ranking.

    Although financially managed to achieve significant revenues, the company suffered losses. Among them are BP (ranked 18), Royal Dutch Shell (19), ExxonMobil (23), Chevron (75), and Petronas (277). Below Pertamina's ranking, Repsol is in position 381, while from other industries there are Coca-Cola (370), Tesla (392), and Danone (454).

Erick Thohir

Erick: The Form of Hard Work

    Meanwhile, SOE Minister Erick Thohir considered Pertamina's entry into Fortune's list of the world's 500 largest companies as a form of hard work from all elements of the company.

"I am optimistic that Pertamina's performance can be even better. And the frame for Pertamina is to compete with competitors at the world level. Because Pertamina has all the requirements, both quality and capability, to support it as one of the world's big companies," said SOE Minister Erick Thohir.

    Erick views the world's recognition of Pertamina's existence as evidence of ongoing organizational reforms. One of the changes that he considered important as implementing the company's core values ​​that we're trustworthy, competent, loyal, adaptive, and collaborative. So far, Pertamina has never lacked qualified resources.

“But resources without the appropriate value will certainly not be in line with performance. We certainly strive together, so that values ​​that uphold good corporate governance can be the basis. With that, I'm sure performance will follow. Because the results will not betray the process," said Erick Thohir.

    He also highlighted Pertamina's performance from a business and non-business perspective in the midst of the Covid-19 pandemic that is sweeping the world. In the midst of a pandemic that affected the slowdown in the business sector, Pertamina was still able to become one of the driving forces of the economy. Not only that, but Pertamina also plays an active role in efforts to recover from the pandemic from a health perspective.

"Not only performance from the business side, in the current pandemic era we can see the central role of Pertamina through several business lines to support public health. Starting from hospitals, hotels which have been converted as places of isolation and rest for health workers, to actively participating in ensuring the availability of oxygen, "said Erick Thohir.

    Erick hopes that all positive performances, both on the business and non-business sides, can continue to be improved. As a business-oriented company as well as providing services to the public, Pertamina should not be satisfied.

“Our benchmark must be high. So it's not enough just to be in the top 500, we can do even better. Our dream is that Pertamina can become the 50 largest companies in the world and our other SOEs will also enter the top 500," said Erick Thohir.

Investor Daily, Page-1, Wednesday, Aug 4, 2021

Post-Transfer of Management, Production of Rokan Block Is Believed to Increase

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and PT Pertamina Hulu Rokan (PHR) believe that through the efforts that will be carried out after the transfer of management from PT Chevron Pacific Indonesia (CPI) on August 9, 2021, oil and gas production in the Rokan Block in Riau Province will increase.

the Rokan Block Chevron

    This is the conclusion of the discussion on the theme of Maintaining the Reliability of Operations in the Rokan Region, which was held virtually by the Energy and Mining Editor Society (E2S) in Jakarta. 

Blogger Agus Purnomo In SKK Migas

    Appearing as speakers at the discussion was Deputy Head of SKK Migas Fatar Yani Abdurrahman, PHR President Director Jaffee Arizon Suardin, and Secretary-General of the Indonesian Petroleum Engineering Experts Association (IATMI) Hadi Ismoyo.

“All items have been identified. So now the point is, it must be massive, aggressive, efficient, resilient, tough, and out of the box, beyond normal limits," said Fatar Yani.

    Fatar Yani said the longest contributing oil and gas block in Indonesia and still has attractive potential is the Rokan Block. The Rokan Block has been the backbone of national oil production for 70 years since its first production in 1951 by Chevron. The fate of the block has been determined since 2018. At that time it was still a top producer so the transition process began in a long time.

“So this long transition can be done seamlessly and without any problems. The Rokan Block also has potential reserves in unconventional forms. The most widely operated wells in Rokan, there are 10,000 wells, currently, around 8 thousand are operating," he said.

    According to Fatar, the strategy in managing the Rokan block post-transition for the short term in 2021 is to maintain production and a successful transition to PHR, the 2022-2025 period is an effort to increase production with significant investments including the production of Chemical EOR in Minas. The long-term in 2026 is high production according to PHR Rokan's long-term plan (LTP).

“Considering the enormous contribution of the Rokan block, the Government and SKK Migas have paid attention when this block is in the process of transitioning from contractor PT Chevron Pacific Indonesia (CPI) to PHR. To keep the production of the Rokan block high and optimally maintained, a Head of Agreement (HOA) has been signed between SKK Migas and CPI on September 28, 2020," said Fatar.

    On the other hand, the Rokan PSC does not manage ASR backups. Thus, maintaining the production level of the Rokan WK is very dependent on the return of investment costs. The Head Of Agreement (HOA) agreement, it will guarantee the availability of ASR funds and the return of investment costs can be guaranteed. The number of drilling programs during the transfer of management at HOA was 192 wells.

"However, considering the existing developments, the drilling target has not been achieved. SKK Migas has coordinated with PHR to boost well drilling so that the 2021 production and lifting targets can be achieved," said Fatar.

    PHR President Director Jaffee Arizon Suardin expressed his gratitude for the support and contribution of SKK Migas in the transfer of the management process. With the support from SKK Migas, the transfer of management process is more certain and there is a guarantee, this can be seen from the current process which is felt to be very helpful when managed by PHR.

“Drilling is one of the efforts to maintain the production of the Rokan block, from the target of 192 wells that were previously conveyed by the Deputy Head of SKK Migas, which could not be realized by existing operators, PHR will continue, including the wells planned by PHR. We estimate that assuming 70 wells cannot be completed during the transfer of management, the number of wells that can be drilled until December 2021 will reach around 164 wells," said Jaffe.

    Jaffee said the Rokan Block is different from other blocks because it supports 24% of national oil production. And there are 104 fields spread from north to south.

“This is what we have to manage so that production can be maintained. There are nine priority areas of management transfer. We will continue what has not been completed, starting August 9, with the aim that by 2021 the number of wells will not be less than planned," said Jaffee.

    The former Deputy for Planning of SKK Migas also said that PHR would drill and prepare resources for 161 wells with the assumption that 77 wells had not been completed by the existing operator. Currently, preparations are ongoing. Pertamina has prepared around 16-17 rigs and materials. In fact, these rigs and materials can be used before August 9 to help the existing wells that are being worked on by the operator.

"The goal is that the transfer of management process can run smoothly without interruption," he said.

    According to Jaffee, Pertamina is committed to exploring all existing potentials massively, aggressively, and efficiently. And prepare not only wells to be drilled in 2021, but also in 2022.

“Not chasing the number of wells, we want the number of wells to be the least but the production to be the largest. In this block, many wells are needed,” he said.

    Meanwhile, the Secretary-General of IATMI who is also the President Director of PT Petrogas Jatim Utama Cendana Hadi Ismoyo highlighted the distribution of 10% Participating Interest / PI shares to regions through Regional Owned Enterprises (BUMD), including in the Rokan Block later.

“The challenges include the need for oil and gas professionals to implement 10% PI governance. BUMD managers must be slim and agile, as well as fast in making and processing strategic decisions," said Hadi.

    According to him, the current challenge is the fact that on the ground there are many 10% PIs for various reasons that have not been resolved or have not been given to BUMDs in accordance with the mandate of Ministerial Regulation 37, both for technical and non-technical reasons. 

    In addition, the socialization has not reached the root of the spirit of the 10% PI regarding the rights and obligations of each party. There is also a communication leak between operators and BUMD due to different levels of understanding.

Investor Daily, Page-10, Friday, July 23, 2021

To be efficient, the government must help Pertamina

    The government should be able to help PT Pertamina (Persero) to get a contract to purchase crude oil directly from the National oil company/NOC of another country. Direct import contracts are considered more efficient because they can cut the cost of procuring crude oil.

PT Pertamina (Persero)

    The Executive Director of the Reforminer Institute, Komaidi Notonegoro, said that purchasing crude oil directly from NOCs of other countries would cut the supply chain of crude oil. This will have an impact on cheaper procurement costs, so it is positive for Pertamina, the government, and the community as consumers of fuel oil (BBM).

the Nigerian National Petroleum Corporation (NNPC)

    Pertamina's move to buy crude oil directly from the Nigerian National Petroleum Corporation (NNPC) is considered very positive. However, the company needs to be more aggressive in obtaining long-term direct purchase contracts to secure domestic fuel supplies.

“Generally there is state intervention. The agreement will generally be accompanied by bilateral cooperation in the same sector or other sectors," he said.

    Pertamina is not the first time buying Nigerian crude oil. Previously, for the 2017-2020 period, oil imports from Nigeria reached 30% of the company's total imports. This Nigerian oil belongs to the sweet crude category which is in accordance with the company's refinery specifications.

    However, this crude oil is usually marketed in the international market by International Oil Companies (IOCs) with participating interest (PI) in the oil and gas blocks in the country, such as ExxonMobil, Chevron, Shell, Total, and BP. Thus, this is the first time Pertamina has conducted a direct purchase contract with NNPC. In obtaining this contract, Pertamina must compete with 500 companies that register.

    According to Komaidi, the state usually helps its national companies to obtain similar agreements. He gave an example, the United States government does not even hesitate to intervene directly to help business entities originating from their country, even though they are not state-owned enterprises.

"Especially if this is Pertamina, which is a State-Owned Enterprise (BUMN)," he asserted.

    Currently, Pertamina seems to be left to do it alone. Whereas on the other hand, the government assigns and demands a very large tax contribution and Non-Tax State Revenue (PNBP) from the company. 

    Regarding the crude oil import contract with NNPC, Corporate Secretary of PT Pertamina Indonesia Refinery Ifki Sukarya said the volume will adjust to the development of refinery supply and demand in the coming year. This purchase contract is one of the efforts to ensure a sufficient supply of crude oil at the refinery.

"The estimated volume of crude oil supply from NNPC is currently around 900,000 barrels per quarter," said Ifki.

    Previously, KPI's Vice President of Feedstock & Inventory Management, Sani Dinar Saifuddin, said that Nigeria is Pertamina's largest source of crude oil imports. Meanwhile, the largest oil import is the type of Arabian Light Crude from Saudi Arabia's national oil company, namely Saudi Aramco.

Investor Daily, Page-10, Friday, July 23, 2021

2030, Pertamina Supply 71% of National Energy Needs

    PT Pertamina (Persero) targets to supply around 71% of Indonesia's total energy needs in 2030 which is predicted to reach 7 million Terajoules (TJ). To that end, the company is moving towards a clean energy transition by increasing the supply of new and renewable energy to reach 17 percent of the total energy mix in 2030.

    Pertamina's Director of Strategy, Portfolio and Business Development Iman Rachman said Pertamina was in the process of moving towards an energy transition. Pertamina's energy portfolio will be aligned with the energy mix target in the National Energy Grans Strategy (GSEN) 2025. Most of the energy supplied by Pertamina is still in the form of fossil fuels, but the growth of renewable energy supply will be more aggressive.

"With this strategy, by 2030, Pertamina will supply around 71 percent of Indonesia's total energy needs," he said.

    Pertamina's energy mix target is to reduce the use of fuel oil and liquefied petroleum gas/LPG to 64%. At the same time, gas consumption will be increased to 19% and new and renewable energy to 17% of the total energy mix by 2030.

"In order to achieve the energy mix target, Pertamina will build an integrated oil and gas supply chain and actively build a new renewable energy portfolio by utilizing domestic resources," said Iman.

    Pertamina has made the energy transition because the world is facing a significant demand disruption due to Covid-19, both in the short and long term. Global fossil energy demand is predicted to continue to grow and reach its peak in 2030. However, after that, the demand for fossil energy will decrease along with the rapid growth of new and renewable energy.

    In Indonesia, energy demand is projected to recover after Covid-19 in 2022 and then grow by around 2.1% per year until 2040. Nationally, the energy mix will support emission reductions with a target of 29% in 2030 while still meeting national energy needs that reach 7 million Terra Joules.

Need Investor

    With this business initiative, Pertamina will allocate around 9% of the capital expenditure for the 2020-2024 period specifically for the development of new and renewable energy. This capital expenditure is higher than the investment in new and renewable energy of international energy companies which is only 4.3% on average. 

    A number of Pertamina projects include National Strategic Projects, both in the upstream, downstream, and renewable energy sectors. These projects have the potential to be collaborated to strengthen the foundation of the national economy.

"Other partnership opportunities can also be carried out in Pertamina's strategic projects and plans for unlocking values ​​in order to optimize the value of Pertamina Group," said Iman.

    Some of the activities that can be carried out with these partners include various efforts to increase Pertamina's oil and gas production, projects to repair and increase the capacity of a number of existing refineries, as well as the construction of green refineries, petrochemical plants with a capacity of 6-100 kilotonnes per annum / KTPA, and ethanol plants of 50 metric tons. per year by 2025.

    Pertamina is also involved in Indonesia Battery Holding (IBH) to produce 140-gigawatt hour (GWh) batteries by 2029 and develop an electric vehicle battery ecosystem, including the battery exchange and recharges business. Other projects are the construction of new gas transmission and distribution pipelines and the construction of a methanol plant for gasification of 1,000 KTPA by 2025.

    Other energy transition initiatives carried out by Pertamina are revitalizing business plans related to city gas for 30 million people's homes, developing businesses, and liquefied natural gas/LNG, as well as increasing the portfolio in the electricity sector through gas, geothermal and solar power plants.

Cooperate with Sonatrach

    PT Pertamina (Persero) and Sonatrach, an oil and gas company owned by the Algerian Government, have signed a memorandum of understanding/MoU for upstream to downstream business cooperation, including renewable energy.

Nicke Widyawati 

    Pertamina President Director Nicke Widyawati said, in the midst of the Covid-19 pandemic crisis, national oil companies such as Sonatrach and Pertamina must remain strong in meeting national interests, especially in providing energy for the country. The signed MoU will cover the potential for collaboration in upstream and downstream businesses.

    First, this cooperation covers exploration and production activities in Algeria and other countries. Next, evaluate the supply of Pertamina's Smooth Fluid (SF-05) as a drilling fluid in the upstream operation of Sonatrach. Then, evaluate the supply and shipment of crude oil and liquefied petroleum gas/LPG from Sonatrach to Pertamina. Lastly, the potential for other cooperation in the downstream business in Algeria, as well as oil and gas services.

"The MoU also includes potential cooperation in the field of renewable energy, particularly solar photovoltaic, as well as research and development activities," said Nicke Widyawati.

    She hopes that the work teams from the two companies can follow up the agreement with discussions or workshops so that they can produce real progress and creative solutions in facing the challenges ahead. In addition, Nicke also hopes that Sonatrach can support Pertamina's operational expansion plans and programs in Algeria in the future.

"I firmly believe that this memorandum of understanding will be the doorway to achieving our goals, and strengthening the relationship between the two companies, and most importantly, the strong bond between Indonesia and Algeria," said Nicke.

    Sonatrach President Director Hakkar Toufik said this signing was a good cooperative relationship. Because, in this agreement, there are new investment opportunities for both parties. So he hopes that this MoU can strengthen the two companies.

Investor Daily, Page-10, Wednesday, June 30, 2021.

Pertamina Shipping is Targeted to Succeed in ASEAN

 

    One of the government's big agendas is to strengthen the logistics system. To strengthen Indonesia's domestic logistics system that can be seen at the global level is to develop State-Owned Enterprises (SOE/BUMN) in the shipping and logistics sectors. 

PT Pertamina (Persero)

    Through the sub-holding of PT Pertamina (Persero), namely PT Pertamina International Shipping (PIS), the government is trying to revive the world of shipping and logistics. PIS targets to become a global integrated logistic and marine solution company.

"PIS is expected to become an integrated and marine logistics solution company that is respected in the ASEAN (Southeast Asia) region," said Deputy Minister of BUMN I Pahala Mansury.

    Pahala said Pertamina had the strength in this matter because currently PIS had a large number of ships and had very reliable specifications. The government is targeting PIS to have a stronger infrastructure in Southeast Asia. 

    Pahala said that the government has an agenda to find investors to strengthen the PIS business in the future. He said the efforts that would be made were for example to cooperate with the Indonesia Investment Authority (INA) or other strategic partners.

"The government is targeting cooperation with INA or other strategic partners that can be obtained through INA and after that, the company will conduct an initial public offering (IPO)," said Pahala.

    After sailing since 9 February 2021 from JMU Ariake Shipyard, Japan, PIS's giant container ship or Very Large Crude Carrier (VLCC) has arrived in Indonesia and is ready to support the distribution of national energy supplies. This readiness was marked by the inauguration of BUMN Minister Erick Thohir on a ship that was berthed in Semangka Bay, Kota Agung, Tanggamus Regency, Lampung.

Erick Thohir

    Erick conveyed his appreciation for Pertamina's efforts in transforming and presenting value creation so that it could become a global company. He ensured that the government fully supports PIS's steps to become an integrated logistics and marine solution company that plays at the global level.

"Pertamina must return to its heyday in the 70s, become a global player and be ready to compete based on good corporate governance," said Erick.

Nicke Widyawati

    Pertamina President Director Nicke Widyawati said the investment made by presenting two ships, namely Pertamina Pride and Pertamina Prime, is in line with shareholders' directions to go global. Nicke explained that the two ships would serve foreign markets and transport crude from Aramco to Indonesia.

Saudi Aramco

"With our own ships, we have more flexibility because Pertamina has foreign reserves and production of 110 thousand barrels per day," said Nicke.

    PIS President Director Erry Widiastono explained that PIS continues to strive to meet energy needs by continuously creating various innovations as a consumer-oriented shipping company. One of them is presenting the giant tanker VLCC PERTAMINA PRIDE with a capacity of 2 million barrels and has been built at the Japan Marine United (JMU) Shipyard since 2018.

"The PERTAMINA PRIDE VLCC aims to simplify the flow of energy distribution and secure the supply of captive crude needs to Pertamina's refineries on a FOB Ras Tanura-Cilacap basis more efficiently so that it is ready to become the lifeblood of energy distribution for the country," said Ery.

Republika, Page-16, Monday, April 19, 2021

Pertamina Remains Resilient

 

    PT Pertamina (Persero) became one of the few global oil and gas companies that were able to score a net profit throughout 2020. Last year, Pertamina was able to reverse its loss position in the first semester of 2020. Profits from the Indonesian government-owned oil company are said to reach Rp. 14 trillion at the end of the year.

Nicke Widyawati

"Efforts are being made to increase the productivity of upstream oil and gas and refineries, as well as efficiency in all fields, namely cutting the Opex by 30% and prioritizing the investment budget," said Pertamina President Director Nicke Widyawati.

Exxonmobil

    A number of global oil and gas companies have experienced different conditions. Over the past year, Shell recorded a loss of US $ 21.68 billion or around Rp 303 trillion, Exxonmobil US $ 22.44 billion or around Rp 314 trillion, Chevron US $ 5.5 billion or around Rp 77 trillion, BP US $ 20, 3 billion or around Rp. 284 trillion, and Petronas 21 billion ringgit or around Rp. 73.5 trillion.

BP

    Meanwhile, Petrobras earned a profit of US $ 1.1 billion or around Rp 15 trillion, while Pertamina is claimed to have earned a profit of US $ 1 billion or around Rp 14 trillion over the past year. 

    ExxonMobil CEO Darren Woods said last year, the company was facing market conditions that were more challenging than they had experienced before. The effects of the Covid-19 pandemic will significantly affect performance results in 2020.

"We are responding decisively to fixing our fee structure permanently," he said.

Chevron

    Chevron CEO Mike Wirth said that when market conditions deteriorated last year, his side quickly cut capital spending by 35% from 2019 and lowered operating costs. In 2020, Chevron will also increase renewable energy production and increase investment in low-carbon technology. 

    Energy Watch Executive Director Mamit Setiawan assessed that last year was a grim period for the global oil and gas industry, including at home, due to pressure from the Covid-19 pandemic.

Bisnis Indonesia, Page-4, Wednesday,  March 17, 2021

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