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Showing posts with label Premier Oil. Show all posts
Showing posts with label Premier Oil. Show all posts

Monday, July 12, 2021

Premier Oil Continues Tuna Block Development

    Premiere Oil Tuna BV continues the development of the Tuna Block on the Indonesian border with Vietnam, by drilling the Lion Sea-2 exploration well. The drilling of this well ensures the volume of the block's oil and gas reserves located in the Natuna waters.

    Secretary of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Yunus appreciated Premiere Oil for continuing to develop the Tuna Block during the Covid-19 pandemic. He hopes that the drilling of exploration wells in the block can produce oil and gas reserves according to the target.

Blogger Agus Purnomo in SKK Migas

"The drilling has been carried out according to the planned schedule, and has started on Sunday (July, 3)," he said.

    He explained the target depth of the Sea Lion-2 drilling is 9,566 feet measure depth /FtMD. After that, Premier will continue drilling exploration wells at Kuda Laut-2 Field with a target depth of 10,452 feet from the seabed (true vertical depth subsea/TVDSS). The drilling of these two wells includes deep-sea drilling or 1,000 meters below sea level.

"From the two wells, it is hoped that there will be additional proven gas reserves of around 470 BCF (billion cubic feet / billion cubic feet)," said Taslim.

    Previously, Premier Oil had carried out 2D and 3D seismic acquisitions. The British oil and gas company has also drilled four exploration wells, namely the North Elephant Sea-1, North Sea Eel-1, Sea Horse-1, and Sea Lion-1. This activity is part of the implementation of definite commitments that must be fulfilled by Premiere Oil.

    In the Tuna Block, referring to the Premiere Oil website, there are two fields to be developed, namely the Sea Horse Field and the Sea Lion Field. Based on data from the Ministry of Energy and Mineral Resources, oil reserves in the Tuna Block reach 2,127 million barrels and gas at 12.36 billion cubic feet. 

    Meanwhile, the block area reaches 2,450.29 square kilometers. The Tuna Block has a strategic role in Indonesia's geopolitics because it is located on the border with Vietnam and close to the South China Sea.

"Utilizing the potential of oil and gas in the area is part of the support for the upstream oil and gas industry in an effort to assert Indonesia's sovereignty in border areas," said Taslim.

Investor Daily, Page-10, Wednesday, July 7, 2021

Saturday, August 15, 2020

The fate of the tuna block is unclear

The news about the departure of oil and gas contractors continues to emerge. It is a partner of Premier Oil Tuna BV in the Tuna Block, namely Vietnam Oil and Gas Group (Petrovietnam), which is reportedly out. In exchange, a Russian company is exploring the block.


Acting Head of Program and Communication Division of SKK Migas, Susana Kurniasih, revealed that his party is still waiting for the assurance of Premier Oil, especially regarding the planned drilling agenda for this year.

Premier Oil

"Premier Oil already has a proposal for drilling two wells in 2020, but Premier said he would look for a partner before drilling," said Susana Kurniasih.

the Tuna Block by Premier Oil

The continuation of the Tuna Block depends on the seriousness of Premier Oil to complete its commitments. Susana explained that the exploration period for cooperation contract contractors (KKKS) is given for six years. An extension of the exploration period can be granted for a maximum of three years. The Tuna Working Area (WK) has received an extension period twice since it was first signed on March 21, 2007.

"The government has given two extension periods of exploration time and now this is the last year of the second extension," Susana explained.

Deputy Head of SKK Migas, Fatar Yani Abdurrahman, stated that it was true that there was news about the plans of foreign companies to become Premier Oil partners in the Tuna Block.

"So far there is no official information from Premier Oil, we are still waiting. It's just that the partner's plan has just arrived," said Susana Kurniasih.

It is an oil and Rosneft gas company from Russia that plans to join Premier Oil after news of the departure of one of the partners in the block. However, Fatar has not specified the participation rights that will be acquired by the new Russian partner.

The operator of the Tuna Block is Premier Oil Tuna BV with a participating interest of 65%. Fatar said that the Covid-19 pandemic had an impact on the drilling plan by Premier Oil, even though drilling was needed to ensure the Tuna Block Plan of Development (PoD). Not only that, but this is also considered to have an impact on the certainty of partners in the block.

As a flashback, in 2014 Premier Oil discovered potential reserves of 100 million barrels of oil equivalent (mmboe). Even Premier Oil said that currently, the potential for the Tuna Block could reach 100 million cubic feet to 150 million standard cubic feet per day (mmscfd). In 2017, Premier Oil and Petrovietnam signed a memorandum of understanding (MoU) for the sale of gas from the Tuna Block in the North Natuna Sea to Vietnam.

The signing of the MoU was carried out on the sidelines of the 2017 Asia Pacific Economic Cooperation Summit (APEC Summit) in Da Nang, Vietnam. The government has also provided guarantees for investment certainty in Natuna waters, especially the location of the Tuna Block which is directly adjacent to Vietnam.

Kontan, Page-12, Friday, August 14, 2020

Wednesday, July 29, 2020

Russian oil and gas company eyeing Tuna block

Russian oil and gas companies have the potential to enter and work on Participating Interest (PI) in the Tuna Block together with Premier Oil.

Deputy Head of the Special Task Force for Upstream Oil and Gas (SKK Migas), Fatar Yani Abdurrahman, did not dismiss the news of a Russian oil and gas company that wanted to become a partner of Premium Oil in the oil and gas working area in the Natuna Islands.

Rosneft Russia

Only he was still reluctant to mention the name of the Russian company. The reason, so far it is still waiting for official information from Premier Oil. It's just that the plans for new partners will enter do exist, "he said.

Fatar also has not detailed the rights of participation that will be acquired by the new Russian partner. Just so you know, the Tuna Block is managed by Premier Oil Tuna BV with an Interest Participation of 65%. 

Tuna Block Premier Oil Tuna BV

    The Acting Head of the SKK Migas Program and Communication Division, Susana Kurniasih, said that the government had given Premier Oil a two-year extension. The latest was approved by the Ministry of Energy and Mineral Resources at the end of 2019 ago.

Blogger Agus Purnomo in SKK Migas

"They already had a proposal for drilling two wells in 2020, but they said that the implementation of the activity was still waiting for a partner," Susana Kurniasih.

The Covid-19 pandemic also had an impact on the drilling plan by Premier Oil, even though drilling was needed to ensure the Tuna Block Plan of Development (PoD). This is also considered to have an impact on the certainty of partners in the Block.

Kontan, Page-10, Saturday, July 25, 2020

Thursday, June 11, 2020

The Government Guarantees Legal Certainty in the Development of Tuna Blocks

The Coordinating Ministry for Maritime Affairs and Investment guarantees the legal certainty of the development of the Tuna Block by the oil and gas company from the UK, Premiere Oil.

This is because the location of the Tuna Block in Natuna waters, which is the border of Indonesia, is prone to conflicts from the geopolitical side. 

the Tuna Block By Premier Oil

     Deputy for Maritime Sovereignty and Energy Coordinating Ministry of Maritime Affairs and Investment Purbaya Yudhi Sadewa said the government provides legal certainty guarantees for companies investing in Indonesia. 

   One company that needs this guarantee is Premiere Oil which is working on the Tuna Block, which is located on the border with Vietnam.

"So they asked us and we gave the certificate was Indonesian territory, so we maintain their security there. In 1-2 months we give the letter so that they can still operate there well there, "he said.

Zarubezhneft Rusia

In its annual report for 2019, Premiere Oil states that it has signed a prerequisite for the Heads of Terms with the Russian oil and gas company, Zarubezhneft Joint Stock Company (JSC).

The oil and gas company will take ownership of participating interest / PI in the Tuna Block by 50%. This stock sale agreement is targeted to be signed in 2020. Later, referring to the share sale agreement, Zarubezhneft will also bear the costs of drilling two appraisal wells that are planned to be carried out in 2020. The premiere is given an extension of the exploration period for one year by the government so that well drilling can take place.

Furthermore, Premier Oil is expected to submit the plan of development / PoD of the Tuna Block in March 2021. Still referring to the annual report, Zarubezhneft mainly has a stake in the oil and gas block in Vietnam. While the Tuna Block is located in the Natuna Sea which is close to the Indonesian and Vietnamese sea borders.

The Tuna Block is estimated to have oil and gas reserves of around 100 million barrels of oil equivalent. Then referring to the official statement, in 2017, Premiere Oil and SKK Migas as representatives of the Government of Indonesia signed a memorandum of understanding / MoU on gas sales from the Tuna Block to Petrovietnam.

The gas produced from the Tuna Block will be channeled to the Nam Con Son Pipeline System in Vietnam through a cross-country pipeline being built. After the transfer of ownership of the PI is approved by the government, Premiere Oil will hold a 50% stake as well as becoming an operator in the Tuna Block.

the Nam Con Son Pipeline System

In Tuna Block, referring to the Premiere Oil page, there are two fields to be developed namely the Sea Horse Field and the Sea Lion. 

      Deputy Head of the Special Work Unit Fatar Yani Abdurrahman, the Executive of Upstream Oil and Gas Business Activities, explained that the development of the Tuna Block has a high risk because of its location bordering the South China Sea. For this reason, Premier Oil must have a partner in working on the block.

Investor Daily, Page-10, Thursday, June 11, 2020.

Tuesday, January 7, 2020

Two Oil and Gas Projects Potentially Backward

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that there are two oil and gas projects whose operational schedule (on stream) will go back to next year 2020, namely the Bukit Tua Phase 3 and Buntal Projects. Both were originally operational at the end of 2019.

SKK Migas Deputy for Operations Julius Wiratno said, not all projects planned to operate by the end of this year will be realized. One project, the Buntal-5 Project, is certain to be delayed in operation until 2020. The same thing has the potential to occur for the Bukit Tua Project Phase 3.

"The pufferfish has been delayed because the drilling rig has entered Indonesia from Vietnam. Bukit Tua may be delayed, but we are recovering, "he said.

The Puffer-5 Project is carried out by Medco E&P Natuna Ltd. The project, with an investment value of US $ 33 million, is targeted to produce gas of 45 million cubic feet per day (mmscfd). The project's scope of work includes the installation of a new 8km umbilical subsea, subsea production control system, subsea protection structure, 8 inch flowline of 175 m, modification of existing SCU software, and pigging facilities.

Furthermore, the Bukit Tua Phase 3 Project in the Ketapang Block was worked on by Petronas Carigali Ketapang II Ltd. The project is estimated to produce 3.82 barrels of oil per day (bpd) and 31 mmscfd of gas. 

    The US $ 15 million project includes the construction of a deck extension on the WHP BTJT-A eskisting, installation of four conductors and clamps, modification of the existing IRCD for chemical injection, addition of a new wellhead control panel, and installation of a wet gas flowmeter.

The two projects are planned to start operating the rest of the year along with four other projects. The Buntal-5 project, according to SKK Migas data, was originally operational in November 2019. While the Bukit Tua Project Phase 3 is scheduled to start operating in December 2019. The other four projects will operate on schedule.

"The remaining projects [which will be operational this year] are Kedung Keris, Bison-Iguana-Gajah Putri, Temelat, Harvest, and Big Bamboo," said Julius.

Premiere Oil Natuna Sea BV

The Bison-Iguana-Gajah Putri project with 163 mmscfd gas production was undertaken by Premiere Oil Natuna Sea BV with an investment of US $ 171 million. The project project by PT Medco E&P Indonesia with an estimated production of 10 mmscfd and an investment of US $ 11 million.

the Cepu Block by EMCL

Harvest Project with an estimated production of 2,000 bpd by PetroChina International Jabung Ltd with an investment of US $ 17 million. Finally, the Full Well Stream Kedung Keris Project in the Cepu Block was undertaken by ExxonMobil Cepu Limited (EMCL) with a production of 3,800 bpd and an investment of US $ 72 million. Regarding the Bamboo Project, Julius said that this was an additional project in 2019.

"We are trying to speed up the Big Bamboo Project to increase oil and gas production in 2019," he said. Although he admitted, the oil and gas production produced by this project was not large to replace the delayed production of Buntal-5 and Bukit Tua Phase 3. "Additional oil from the Great Bamboo Field is approximately 2,700-3,000 bpd," he added.

In addition to two potentially delayed projects, SKK Migas also ensured the cancellation of one project that was originally operational in 2019, namely the YY Project undertaken by PT Pertamina Hulu Offshore North West Java (PHE ONWJ). Because, there was an incident of gas and oil leakage in the project.

PT Pertamina Hulu Offshore North West Java (PHE ONWJ)

The project was originally planned to produce 4,605 ​​bpd of oil and 25.5 mmscfd of gas. However, Julius had revealed, it was difficult to reach the target of lifting oil and gas in 2019, namely 775 thousand bpd of oil and 7,000 mmscfd of gas. Until the end of October 2019, the realization of oil lifting was recorded at 742.9 thousand bpd and 5,892 mmscfd of gas. 

    In addition to pursuing on-stream projects, his office is also trying to realize a work program in 2019, such as well drilling and well maintenance. It will also drain stock in several terminals which can add 500-600 barrels.

"The end of 2019 Outlook is lifting 746.2 thousand bpd of oil and 5,896 mmscfd of gas. It is very challenging (reaching the target), but we are still trying, "he said.


Dua Proyek Migas Berpotensi Mundur

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menyatakan terdapat dua proyek migas yang jadwal operasinya (on stream) mundur ke tahun depan 2020, yakni Proyek Bukit Tua Phase 3 dan Buntal. Keduanya sedianya beroperasi di akhir tahun 2019.

Deputi Operasi SKK Migas Julius Wiratno menuturkan, tidak semua proyek yang direncanakan beroperasi pada akhir tahun ini akan terealisasi. Salah satu proyek, yakni Proyek Buntal-5 dipastikan akan tertunda operasinya hingga tahun 2020. Hal yang sama berpotensi terjadi untuk Proyek Bukit Tua Phase 3.

“Buntal delayed karena drilling rig-nya telah masuk Indonesia dari Vietnam. Bukit Tua mungkin delay, tetapi sedang kami recovery,” kata dia.

Proyek Buntal-5 dikerjakan oleh Medco E&P Natuna Ltd. Proyek dengan nilai investasi US$ 33 juta ini ditargetkan bisa menghasilkan gas sebesar 45 juta kaki kubik per hari (million standard cubic feet per day/ mmscfd). Lingkup kerja proyek ini mencakup pemasangan new subsea umbilical 8 km, subsea production control system, subsea protection structure, flowline 8 inch sepanjang 175 m, modifikasi eksisting SCU software, dan pigging facilities. 

Selanjutnya, Proyek Bukit Tua Phase 3 di Blok Ketapang digarap oleh Petronas Carigali Ketapang II Ltd. Proyek ini diperkirakan menghasilkan minyak 3.82 barel per hari (bph) dan gas 31 mmscfd. Proyek senilai US$ 15 juta ini mencakup pembangunan deck extention pada esksisting WHP BTJT-A, pemasangan empat buah conductor dan clamp, modifikasi eksisting IRCD untuk chemical injection, penambahan wellhead control panel baru, serta pemasangan wet gas flowmeter.

Kedua proyek ini direncanakan mulai beroperasi pada sisa tahun ini bersama empat proyek lainnya. Proyek Buntal-5, sesuai data SKK Migas, sedianya beroperasi pada November 2019. Sementara Proyek Bukit Tua Phase 3 dijadwalkan mulai beroperasi pada Desember 2019. Empat proyek lainnya akan beroperasi sesuai jadwal.

“Sisa proyek [yang akan operasi tahun ini] adalah Kedung Keris, Bison-Iguana-Gajah Putri, Temelat, Panen, dan Bambu Besar,” tutur Julius.

Proyek Bison-Iguana-Gajah Putri dengan produksi gas 163 mmscfd dikerjakan oleh Premiere Oil Natuna Sea BV dengan nilai investasi US$ 171 juta. Proyek Temelat oleh PT Medco E&P Indonesia dengan perkiraan produksi 10 mmscfd dan nilai investasi US$ 11 juta. 

Proyek Panen dengan estimasi produksi 2.000 bph oleh PetroChina International Jabung Ltd dengan investasi US$ 17 juta. Terakhir, Proyek Full Well Stream Kedung Keris di Blok Cepu dikerjakan oleh ExxonMobil Cepu Limited dengan produksi 3.800 bph dan investasi US$ 72 juta. Terkait Proyek Bambu, Julius menyebutkan bahwa ini merupakan proyek tambahan di 2019. 

“ Proyek Bambu Besar kami coba speed up untuk menambah produksi migas di 2019,” ujarnya. Walaupun diakuinya, produksi migas yang dihasilkan proyek ini tidak besar untuk mengganti produksi yang tertunda dari Buntal-5 dan Bukit Tua Phase 3. “Tambahan minyak dari Lapangan Bambu Besar kira-kira 2.700-3.000 bph,” tambahnya.

Selain dua proyek yang berpotensi tertunda, SKK Migas juga memastikan batalnya satu proyek yang sedianya beroperadi pada tahun 2019, yakni Proyek YY yang dikerjakan oleh PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ). Pasalnya, terjadi insiden kebocoran gas dan minyak di proyek tersebut. 

Proyek ini awalnya direncanakan menghasilkan minyak 4.605 bph dan gas 25,5 mmscfd. Meski demikian, Julius sempat mengungkapkan, sulit mencapai target lifting migas tahun 2019, yakni minyak 775 ribu bph dan gas 7.000 mmscfd. Hingga akhir Oktober 2019, realisasi lifting minyak tercatat sebesar 742,9 ribu bph dan gas 5.892 mmscfd. 

     Selain mengupayakan proyek on stream, pihaknya juga berusaha merealisasikan program kerja tahun 2019, seperti pengeboran sumur dan perawatan sumur. Pihaknya juga akan melakukan pengurasan stok di beberapa terminal yang bisa menambah 500-600 barel.

“Outlook akhir tahun 2019 ini lifting minyak 746,2 ribu bph dan gas 5.896 mmscfd. Sangat menantang (mencapai target), tetapi tetap kami usahakan,” kata dia.

Investor Daily, Page-9, Friday, Nov 15, 2019

Thursday, October 11, 2018

Contractor Oil Purchases Hampered by Tax

The efforts of PT Pertamina (Persero) to buy crude oil as part of the contract of the cooperation contract are still constrained by the existence of income tax on profit after tax or branch profit tax. 

    Director-General of Oil and Gas, Ministry of Energy and Mineral Resources Djoko Siswanto said, contractors who sell crude oil to Pertamina are subject to 44% tax. If the oil portion of the contractor is sold abroad, the tax levy is relatively smaller.

According to him, the problem was known during a discussion involving contractors in SKK Migas. At present, the sale of crude oil to domestic buyers has been exempted from Article 22 of Income Tax (PPh 22). However, the model of oil sales abroad that uses the Indonesian price scheme Crude price / ICP plus becomes a problem in the country.

Blogger Agus Purnomo in SKK Migas

"The time to sell crude oil in Singapore is subject to a tax of about a dozen percent, well if the country is taxed at 44%. Too big right? If large, it will be burdensome for paying taxes, "he said.

In the Income Tax Act, Article 26 states that income tax is imposed on income received by foreign and Indonesian taxpayers other than permanent establishment (BUT) in Indonesia. Levies are taken on tax profits obtained by a permanent business entity subject to additional income tax on profit after tax obtained by BUT at 20% or according to the applicable tariff in the tax agreement.

According to him, the contractor oil portion that Pertamina bought was not taxed. The reason is, when the contract of cooperation contracts sells oil through a subsidiary that becomes its affiliate (trading arm), the contractor is not subject to Article 26 income tax. 

    If this policy is not changed and the Contractor Partnership Contract (KKKS) will still be taxed, Djoko suggests that the  Income Tax (PPh 22) levy should be included in the selling price of the oil. Furthermore, Pertamina will pay the tax to the government.

Djoko explained, when the Directorate General of Taxes did not get income from transactions through the trading arm, there should be no questionable levy on sales to Pertamina. So far three oil and gas contractors have agreed on the selling price of crude oil with Pertamina. The three contractors include PT Energi Mega Persada and Premier Oil.

Bisnis Indonesia, Page-24, Monday, Oct 1, 2018