Pertamina Cooperates with ExxonMobil to Develop Low Carbon Technology

 

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

Nicke Widyawati

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

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

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

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

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

Weaving Hope on a New Sheet

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

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

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

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

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

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

the Rokan Block Chevron in Sumatra

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

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

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

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

PT Pertamina (Persero)

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

PT Chevron Pacific Indonesia (CPI)

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

PERTAMINA'S EFFORT

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

PT Pertamina Hulu Rokan (PHR)

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

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

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

The Rokan Block Oil Working Area

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

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

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

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

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

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

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

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

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

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

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

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