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

Selling Oil and Gas Blocks, Owners Are Still Looking For Strategic Partners

    Sales of oil and gas blocks during the Covid-19 pandemic created challenges. Oil and gas investors who will leave continue to look for buyers who are currently still waiting and see.

    There are four oil and gas blocks that will be sold this year. Namely, Chevron's IDD Block, ConocoPhilips' Corridor Block, Inpex's Masela Block, and Pertamina's Rokan Block on August 9, 2021.

Blogger Agus Purnomo in SKK Migas 

    Head of Program and Communication of SKK Migas Susana Kurniasih revealed, the process of selling oil and gas blocks is still long. The latest update is a notification by ConocoPhilips for a permit request to the Directorate General of Oil and Gas, Ministry of Energy, and Mineral Resources (ESDM) to disclose data. So the process is still early, so far there has been no update on whether there is a follow-up process," said Susana.

    Although the process is ongoing, Susana ensures that activities in Field will continue as usual. Quoted from the official ConocoPhilips website, the participating shares in the Corridor Block are 54% owned by the USA company, the remaining 36% by Talisman, and 10% by Pertamina.

    In 2019, ConocoPhilips signed a gross split cooperation contract to continue the contract in the Corridor Block for 3 years from the end of the contract in 2023. This means that management will continue until 2026 before being continued by Pertamina.

Repsol

    In the new contract, there is a change in the number of participating shares with the composition of ConocoPhillips (Grissik) Ltd. (46%), Talisman Corridor Ltd. (Repsol) (24%), and PHE Corridor (30%). Participating Interest owned by the holders of interest includes 10% PI which will be offered to Regional Owned Enterprises.

    In addition to the Corridor Block, the oil and gas block divestment action is now taking place in two other blocks, namely Masela and Indonesia Deepwater Development. Of the three, only Block IDD will soon find a replacement partner. Chevron is said to be holding final point discussions with the Italian oil company, Eni.

Eni

    Meanwhile, the Rokan Block will also be sold. Pertamina is looking for a strategic partner. Executive Director of the National Oil and Gas Company Association (Aspermigas) Moshe Rizal said that the search for existing partners would likely affect operations. The current condition is not easy to find a replacement partner.

"Hopefully, after conditions improve, it can increase investment interest from outside, because I see that there are many incentives being prepared," said Moshe.

Kontan, Page-12, Thursday, July 22, 2021

SKK Migas Encourages Production of the Sakakemang Block Starting in 2023

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the development of the Sakakemang Block can be accelerated so that it can start production (onstream) in 2023. This target is faster than the Repsol proposal in 2024.

Blogger Agus Purnomo in SKK Migas

    SKK Migas Deputy Operations Julius Wiratno said Repsol as the operator of the Sakakemang Block, had completed the Front End Engineering Design/FEED. In its proposal, Repsol proposed the block to start operating in 2024. However, it sees an opportunity to accelerate the development of this block.

"We see that there are several opportunities that can be accelerated so that they can be onstream in 2023," he said.

Repsol

    One of them is that Repsol projected auction duration will take 9 months. After his party carried out an evaluation, it turned out that the auction period could be shortened, as well as the project execution period. In addition, optimization can also be done by procuring long lid items earlier.

    Currently, Repsol is working on an engineering, procurement, and construction package / EPC for the Sakakemang Block. So far, Repsol is still working on this oil and gas block according to the approved Plan Of Development/POD plan.

"They indicated a bit of a retreat, but we seized the opportunity to be brought forward again. It is currently under intense discussion and being monitored," he added.

    Separately, in the earnings call for Q1 2021, Repsol SA CEO and Executive Director Josu Jon Imaz San Miguel said that the POD approval allowed his party to start the monetization stage of the Sakakemang Block. His party targets the Final Investment Decision / FID for this project to be carried out at the end of 2021 or early 2022.

"With first gas two years later," he said.

    If the FID is completed by the end of this year, the Sakakemang Block can enter the production stage in 2023. However, if the FID is delayed until next year, the project operation could shift to 2024. Imaz added that his party also plans to work on a CO2 injection project in the Sakakemang Block. However, the plan is still under negotiation with the government.

“We are negotiating the terms of this injection plan. If it is agreed, we will be able to launch the project,” he said.

Sakakemang Block Repsol

    The first POD of the Kaliberau Field, Sakakemang Block was approved by the government on December 29, 2020. According to this POD, gas reserves produced amounted to 445.10 billion cubic feet (gross) until the project's economic deadline in 2038 or equivalent to gas sales of 287.7 billion feet. cubic feet with a peak production rate of 85 million standard cubic feet per day/MMScfd. 

    Meanwhile, the cumulative condensate production is 0.17 million barrels with a peak production rate of 34 barrels per day (BPD). Furthermore, the investment cost for the development of the field is estimated at US$ 359 million.

    This project includes the re-entry of the KBD-2XST1 well into a production well, drilling and completion of 1 infill well as a production well, construction of a Wellpad facility, as well as the construction of a number of production support facilities such as a flowline from the Wellpad to the existing Grissik Central Gas Plant (GCGP) in the Corridor Block. , through part of Right of Way (ROW) in Jambi Merang Block and modification of existing equipment and installation of new equipment at GCGP.

    Repsol SA discovered gas reserves in the Sakakemang Block, South Sumatra with an estimated reserve of at least 2 trillion cubic feet through drilling the KBD-2X Well in early 2019. In the Sakakemang Block, Repsol has a 45% Participating interest/PI as well as an oil block operator. Meanwhile, its partner, Petronas, has a 45% participating interest and 10% MOECO.

Investor Daily, Page-10, Wednesday, July 21, 2021

Maintain Production of Rokan Block Pertamina Agrees on 65 BBTUD Gas Supply

    PT Pertamina Hulu Rokan (PHR), a subsidiary of PT Pertamina Hulu Energi, signed two memorandums of understanding/MoU on gas supply of 65 billion British thermal units per day/BBTUD for the Rokan Block. The gas supply will be used in operations to maintain the production stability of the block.

The Tokan Block By Chevron

    The first MoU signed was with PetroChina International Jabung Ltd (PIJL) for gas supply for steam flood operations in the Rokan Block of 50 BBTUD, estimated to start flowing in 2023. The steam flood operation is an enhanced oil recovery/EOR activity for oil production in the Duri Field, Rokan Block.

Repsol 

    The second agreement with Repsol Sakakemang BV is 15 BBTUD. This supply is to fulfill gas needs for the operational needs of the Rokan Block after the handover of operations from PT Chevron Pacific Indonesia (CPI) on August 9, 2021.

PT Chevron Pacific Indonesia (CPI)

    Regarding the MoU with Repsol, Pertamina Hulu Energi President Director Budiman Parhusip said it would be valid for two years. This agreement will be the basis to conduct discussions and studies on the possibility of utilizing the potential supply of gas from the Sakakemang Block to fulfill gas needs in the Rokan Block.

"This gas sale and purchase activity can be carried out after PHR and Repsol Sakakemang BV have obtained an approval letter for gas allocation from the Government of the Republic of Indonesia," said Budiman.

PetroChina

    The same applies to the MoU with PetroChina Jabung. President Director of PT Pertamina Hulu Energi Jabung Taufik Adityawarman said that the gas supply would be used starting February 27, 2023, and was valid for one year. However, the realization of this gas supply is still waiting for the government's decision regarding the production sharing contract/PSC of the Jabung Block which ends on February 26, 2023.

"But that was after the seller signed the new Jabung Block cooperation contract with the Government of the Republic of Indonesia," explained Taufik.

    At the same time, the process of managing the Rokan Block continues. One of them is the existing contract mirroring process, which currently has reached 95% or 276 contracts out of a total of 290 contracts.

"The process of procuring goods and services at PHR for the Rokan block is carried out using several methods, namely mirroring for existing contracts at CPI and new procurement for contracts that do not yet exist in CPI or mirroring," said Pertamina Hulu President Director Rokan Jaffee. A Suardin.

    In addition, the procurement of PT Pertamina Hulu Rokan (PHR) is also through the Local Business Development (LBD) program. Currently, 260 LBD contracts will be processed separately involving around 690 LBD partners. The first stage of LBD socialization was carried out at the end of May and is in the process of contracting for the remainder of this month. PHR continues to seek to expand the involvement of the surrounding community.

Investor Daily, Page-9, Saturday, June 19, 2021

Sakakemang Gas Project Development Plan Approved Soon

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Sakakemang Block's plan of development (POD) will be approved in the near future.

Blogger Agus Purnomo in SKK Migas

Head of SKK Migas Dwi Soetjipto said that his party and Repsol had agreed on the gas price for the Sakakemang Project in line with the gas price policy set by the government. Not only that, but the gas project internal rate of return (IRR) has also been agreed upon. 

Sakakemang Block

    Thus, the POD of Sakakemang Block has been discussed by Repsol with his party and submitted to the Ministry of Energy and Mineral Resources (ESDM).

"The current situation, the proposal [POD] is already in the Ministry of Energy and Mineral Resources. We hope it will be approved in the next 1-2 weeks, "he said.

Dwi Soetjipto

The preparation of POD for Sakakemang Block was hampered by the proposed gas price of US $ 7 per million British thermal units (million British thermal unit / MMBTU) by the developer. 

    Meanwhile, on the other hand, the government has issued Decrees of the Minister of Energy and Mineral Resources, ESDM Minister Regulation number 89K / 2020 and 91K / 2020. This regulation limits the gas selling price to a maximum of US $ 6 per MMBTU for certain industries and power plants. This policy is valid for the next three years and can be re-evaluated.

"We have done a study, and we are also following government rules and regulations for domestic gas prices," said Dwi.

Regarding the POD being prepared, he explained, not all gas reserves in the Sakakemang Block will be developed. For Phase, I development, the gas reserves being developed are only around 0.5 trillion cubic feet (trillion cubic feet / TCF) of the total initial findings of 2 TCF. Meanwhile, the gas production plan is 85 million cubic feet per day (million standard cubic feet per day / MMscfd).

Repsol

Previously, Repsol Group through its affiliate, Talisman Sakakemang BV, had signed a memorandum of understanding (MoU) with PT Perusahaan Gas Negara (PGN) Tbk for gas supply from the Sakakemang Block. This MoU has been in effect since July 12, 2019, and will be followed up with the signing of the Gas Sales Agreement (GSA) by the parties. Repsol SA discovered gas reserves in Sakakemang Block, South Sumatra with an estimated reserve of at least 2 trillion cubic feet through drilling the KBD-2X well at the beginning of last year.

In order to accelerate gas production, the development of this block will be carried out in stages with a reserve certification of 1 trillion cubic feet first. The government hopes that the Sakakemang Block can operate next year. However, in the 2019 second-quarter performance earning call, Repsol SA CEO and Executive Director Josu Jon Imaz San Miguel said he was optimistic that the Sakakemang Block production could be accelerated in 2022. 

    However, in a conference call for the performance of the first quarter of 2020, Imaz admitted that there were delays in the development of the Sakakemang Block. In the Sakakemang Block, Repsol holds a participating interest (PI) of 45% as well as the block operator. Meanwhile, its partners, Petronas, have a participating interest of 45% and MOECO 10%.

Investor Daily, Page-10, Saturday, Nov 21, 2020

Negotiable Gas Price Sakakemang Difficult

 

The Special Task Force for Upstream Oil and Gas Implementation (SKK Migas) is still in talks with Repsol regarding the fixing of gas prices from the Sakakemang Block development project.

the Sakakemang Block

Deputy of Finance and Monetization of SKK Migas, Arief Setiawan Handoko, said that discussions related to gas prices have been carried out many times. 

    The calculation of the price according to the economy is carried out between the Repsol Cooperation Contract Contractor (KKKS) and the SKK Migas Deputy Planning team. 

    Arief is optimistic that an agreement can be reached in the near future or before the end of 2020 along with the Phase 1 development plan or plan of development (PoD) of the Sakakemang Block.

"The Sakakemang economic gas price will soon be met, in the near future," said Arief.

Repsol

The difficulty of this negotiation is due to the government's decision to set a maximum industrial gas price of US $ 6 per MMBtu. So, Repsol as the Sakakemang Block operator has an objection to the gas price. This Spanish company wants a price above the US $ 7 per MMBtu which is considered still in accordance with the economic value of the project. 

    Unfortunately, Arief is reluctant to reveal how the progress and the amount of gas price discussed so far. What is clear, he hopes that Sakakemang gas price can be economical and in line with the gas price policy of US $ 6 per MMBtu which has been decided by the government.

"If we are from the commercial sector, we must look at the gas price policy of US $ 6 per MMBtu, so that the selling price is easier," said Arief.

As is known, industrial gas pricing is regulated in Presidential Regulation No. 4/2016 and Minister of Energy and Mineral Resources Regulation No. 8/2020. According to Arief, the regulation is correct and can encourage KKKS to optimize its production costs. Repsol Stakeholder Relations Manager, Amir Faisal Jindan, said that currently, his party is still conducting the POD 1 approval process with the government.

"It's still a process," said Amir.

Kontan, Page-10, Saturday, Sept 26, 2020

Uncertainty of Sakakemang Gas Price

Repsol's continued development of the Sakakemang Block is constrained by the gas price which has not been agreed upon. The government and the oil and gas company from Spain still have not agreed on the price that Repsol from Iapangan will sell, which has gas reserves of up to 1 trillion cubic feet or trillion cubic feet (TCF).

Repsol

Deputy for Finance and Monetization of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Arief Setiawan Handoko, admitted that currently discussing gas prices from the Sakakemang Block is somewhat difficult. To date, Repsol has set gas prices above the US $ 7 per MMBtu. The price is claimed to be in accordance with the economics of the project.

the Sakakemang Block Sumatera Selatan

"Currently there are still difficult discussions about the sustainability of Repsol. Currently, we from the Commercial Division are involved in determining whether to continue or not because the economic price of Repsol is different from the price we are trying to sell in Indonesia, "said Arief.

He continued, referring to the latest regulation regarding gas prices, namely Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing for the industrial sector at a maximum of US $ 6 per MMBtu. With this regulation, SKK Migas also cannot simply emphasize the investment rate return (IRR) of Cooperation Contract Contractors (KKKS). The reason is, this will have an impact on state revenues from oil and gas.

SKK Migas.

"So we have to balance the economy and state revenues not to change," said Arief.

Blogger Agus Purnomo in SKK Migas

Sakakemang Block is one of the largest oil and gas discoveries in the world during the 2018-2019 period. With proven natural gas reserves of up to 2 trillion cubic feet, this Repsol finding is the largest in Indonesia for the last 18 years.

Dwi Soetjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said, in the initial certification, the amount of reserves included was only 1 TCF of the potential proven reserves of around 2 TCF.

Repsol also has the opportunity to submit a plan of development (PoD) this year with the hope of carrying out the production of the Sakakemang Block in 2021. Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Ego Syahrial said there are still many fields that have not yet entered the POD stage. Therefore, continuous activities are needed in order to accelerate the development of the oil and gas field.

Kontan, Page-12, Friday, August 7, 2020

Government Direct Bid Process for Oil and Gas Block

"Those who are prepared first are auctioned. So if you are interested, we are more direct deals because there is more certainty from potential investors. But this has not been decided yet, "he said.

"Don't know when the auction will take place. We are still communicating with potential investors, "Mustafid said.

oil and gas blocks in Indonesia

"Currently we are continuing to ensure that investors can take the oil and gas block. Now the condition is being a Covid-19 pandemic and oil prices are falling, each company's strategy is adjusting, "he explained.

Repsol

"Repsol focuses on three objectives for exploration, namely Alaska, the Gulf of Mexico, and Indonesia. It means, Indonesia is still interesting, meaning Repsol is asking for a legal auction process, "he said.

"From the Minister's instructions, if anyone shows interest, what is wrong with our process," said Ego.

       

 Investor Daily, Page-9, Thursday, July 30, 2020

Repsol and Pan Orient Exit the East Jabung Block

     Repsol SA and Pan Orient Energy said that they would divest ownership of the East Jabung Block after exploration activities did not find oil and gas reserves. Both companies must finalize their exact commitments before leaving the oil and gas block.

the East Jabung Block

     Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman said the two oil and gas companies had expressed their intention not to continue developing the East Jabung Block. 

     This decision was made after the discovery of oil and gas reserves from drilling the Anggun-1 exploration well last year. However, the two companies have not yet submitted an official letter on the decision.

"In March there has been no official discussion about the KKKS (cooperation contract contractor) stopping this. We will ask again the KKKS commitments, "he said.

     He explained that if the Anggun-1 drilling had succeeded in finding oil and gas reserves, the contractor would continue drilling the Cantik-1 and Anggun-2 wells. However, because drilling failed to find oil and gas reserves (dry holes), the exploration activities in the East Jabung Block were decided to stop.

"If it is also continued exploration activities there might not be oil and gas findings. In fact, drilling a well for Anggun-1 costs the US $ 30 million, "he said.

     Referring to SKK Migas data, drilling Anggun-1 wells is part of the exact commitment agreed by the contractor with the government when given an extension of the exploration period at the beginning of last year. The Anggun-1 well was drilled on November 14, 2019, and completed on December 10 of the same year.

Repsol

     Besides drilling the Anggun-1 well, other commitments promised were geological and geophysical studies (G&G) and drilling of two more wells. This year, it is planned that Repsol and Pan Orient will undertake two G&G studies and drilling Anggun-2 or Cantik-1 wells depending on the results of the Anggun-1 well drilling.

     After the decision of Repsol and Pan Orient to end activities in the East Jabung Block, SKK Migas reminded that the contractor must still fulfill the obligations of the seventh and eighth work commitments as agreed upon when given an extension of the exploration period.

Investor Daily, Page-9, Saturday, May 2, 2020

Acquisition of the Southeast Jambi Block US $ 135,000

PT Pertamina (Persero) intends to increase cooperation with the Cooperation Contract Contractors (KKKS) to pursue a production target of 923,000 barrels of oil equivalent per day (boepd) this year. Pertamina hopes that the increase in production is in line with profit growth.

The latest asset included in Pertamina's portfolio is the South East Jambi Work Area (WK). PT PHE Southeast Jambi took over 27% of its participatory rights from the hands of Repsol Exploration South East Jambi B.V. The signing of the collaboration took place last Sunday.

Repsol

PHE Southeast Jambi is a subsidiary of PT Pertamina Hulu Energi (PHE) or Pertamina's grandson.

"In the future, we hope to add reserve findings to develop and increase production," said Meidawati, Director of PT Pertamina Hulu Energi (PHE).

PT Pertamina Hulu Energi (PHE)

Looking at the 2018 annual report, PHE has proven oil reserves of 60.28 million barrels of oil (MBO), gas 341.25 billion standard cubic feet (BSCF) and oil and gas 119.16 million barrels of oil equivalent (mboe). Proven oil and oil and gas reserves are down compared to 2017. Only proven gas reserves are rising.

Block SK-305 Malaysia

PHE production relies on 51 Work Areas or blocks. A total of 49 blocks in the country. Then two other blocks abroad, namely Blocks 10 and 11.1 in Vietnam and Block SK-305 in Malaysia. 

     As a result, Southeast Jambi will add to the list of PHE working areas. So far the PHE management has not revealed detailed work plans for Southeast Jambi. But certainly, the acquisition of the block almost requires a special budget.

"Pertamina only replaced the signature bonus proportionally, that is, changing obligations and delivering a performance bond according to the size of the participation," Meidawati said.

The signature value of the Southeast Jambi Block bonus that is part of the PHE is the US $ 135,000. When referring to the Bank Indonesia middle rate (IDX) of Rp. 14,413, the value is around Rp. 1.95 billion. 

MOECO Southeast Jambi B.V.

    Just information, in 2018 the Consortium of Repsol Exploration South East Jambi B.V. and MOECO Southeast Jambi B.V. signed the Southeast Jambi Block Contract. 

The block's exact commitment consists of G and G, 2D seismic along 300 km with a total of US $ 4.65 million. While the signature bonus value is the US $ 500,000.

Kontan, Page-14, Tuesday, March 3, 2020

PHE Develops Southeast Jambi Block

PT Pertamina (Persero) continues to strive to develop oil and gas in Indonesia, one of which is by participating in the management of the Southeast Jambi Work Area.

Repsol Exploration South East Jambi

At this time Repsol Exploration South East Jambi BM is acting as the operator of the Southeast Jambi Region and in collaboration with the Repsol Exploration South East Jambi B.V, Pertamina is confident and ready to develop the Southeast Jambi Exploration Working Area.

Ifki Sukarya

VP Relations of PT Pertamina Hulu Energi (PHE) Ifki Sukarya explained, as stipulated in Government Regulation Number 35 of 2004 concerning Upstream Oil and Gas Business Activities, this Cooperation was carried out through the process of taking ownership of participating interests from South-east Jambi Work Area operators.

In this case, Pertamina assigned one of its subsidiaries, PT PHE Southeast Jambi, as one of the participating interest holders in the Jambi South-east Working Area.

Repsol

"In order to realize this program, Pertamina continues to hold intensive discussions with Repsol Exploration South East Jambi B.V. at once communicating with the Government. Including the investment that will be carried out in the development of this Work Area, "added Ifki.

the signing of Participating Interest

Officially the signing of the collaboration was carried out by both parties, Repsol Exploration South East Jambi B.V. and PHE Southeast Jambi in the Central Jakarta Region.

The signing was carried out by the Director of PHE Southeast Jambi, Abdul Mutalib, with the General Manager of Repsol Exploration South East Jambi B.V. Greg Holman. One of Pertamina's corporate achievements in the early 2020, namely in cooperation with Repsol and MOECO in developing the Southeast Jambi Exploration Working Area.

This collaboration is the beginning of the partnership activities that will be carried out by the Upstream Directorate of PT Pertamina (Persero). Going forward, Pertamina will continue to look for opportunities to work with other Cooperation Contract Contractors (KKKS) to achieve Pertamina's production target of 923 thousand BOEPD in 2020.

Investor Daily, Page-9, Thursday, Feb 27, 2020.

Pertamina Acquires Southeast Jambi Oil and Gas Block

PT Pertamina (Persero) assigned a subsidiary of PT Pertamina Hulu Energi Southeast Jambi as one of the holders of 27% participating interest / PI in the Southeast Jambi Work Area.

With Pertamina's participation in the management of the Work Areas operated by Repsol Exploration South East Jambi B.V, it is expected to be able to support the company in achieving a production target of 923,000 boepd this year. 

Repsol

    VP Relations of PT PHE Ifki Sukarya said the acquisition of 27% PI from Repsol as stipulated in Government Regulation No. 35/2004 concerning Upstream Oil and Gas Business Activities.

Ifki Sukarya

"Participating interest acquired by 27% of the Repsol portion was 67%," he said.

the Take over Participating interest

The takeover was marked by the signing of the collaboration by Southeast Jambi PHE Director Abdul Mutalib and Repsol Exploracion South East Jambi General Manager Greg Holman in Central Jakarta, Wednesday (26/2).

"This cooperation is the beginning of the partnership activities that will be carried out by Pertamina's Upstream Directorate. Going forward, Pertamina will continue to look for opportunities to work with other Cooperation Contract Contractors (KKKS) to achieve Pertamina's production target of 925,000 boepd by 2020, "Ifki explained.

The Southeast Jambi Block

The Southeast Jambi Block is one of seven oil and gas blocks auctioned under a direct bidding scheme in the first phase of 2018. Initially, Talisman West Bengara B.V teamed up with MOECO South Sumatra Co., Ltd to form a consortium to develop the block. 

    However, Repsol acquired Talisman so that the contract was signed by the Consortium of Repsol Exploration South East Jambi B.V and MOECO Southeast Jambi B.V Repsol on 17 July 2018.

Bisnis Indonesia, Page-23, Thursday, Feb 27, 2020