google.com, pub-9591068673925608, DIRECT, f08c47fec0942fa0 SKK MIGAS -->

Wikipedia

Search results

Showing posts with label SKK MIGAS. Show all posts
Showing posts with label SKK MIGAS. Show all posts

Friday, January 5, 2024

The Tuna Block Super Jumbo gas shares are controlled by Zarubezhneft Rusia

 


    Indonesia's upstream oil and gas authorities no longer have to worry about replacing ZN Asia Ltd, a subsidiary of Russia's Zarubezhneft (ZN). 

As a subsidiary of the Russian state-owned enterprise Zarubezhneft (ZN) currently holds 50% of the participation shares in the Tuna Block. 

The Tuna Block Super Jumbo gas

    The number of foreign investors' Interest in this work area makes the Indonesian government optimistic that it can spur further development.

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that the process of transferring participation shareholders of ZN Asia Ltd. in The Tuna Block could be completed this year. Because of the potential for large amounts of hydrocarbons in it, it can be produced immediately and put into lifting Indonesia.

Blogger Agus Purnomo in SKK Migas

    The development of the Tuna Block faced obstacles after several European Union countries and the UK imposed sanctions on Russia as a result of geopolitical tensions in Ukraine. In the Tuna Block, ZN Asia Ltd. partnered with Premier Oil Tuna BV which is part of the Harbor Energy Group, a British oil and gas company.

BP

    In the Tuna Block, Premier Oil Tuna BV also holds 50% participating shares, as well as being the operator carrying out exploration and exploitation activities of oil and gas reserves.

    Nanang Abdul Manaf, Deputy Head of SKK Migas said that up to now his company has gathered many companies that stated his interest in replacing ZN Asia Ltd. in the Tuna Block. Several companies that have expressed interest are Petroliam Indonesia Berhad Petronas Malaysia and Mubadala Energy.

    The hope is that the process of transferring ZN Asia Ltd's participation shares will be successful. can be decided immediately so that the development of the work area is estimated to be capable Flowing gas up to 150 million standard cubic feet per day (MMscfd) can be done.

    The polemic that occurred in the Tuna Block made the Harbor Energy project that the final Investment Decision (FID) for its development would take place in 2025. In fact, approval for the first Plan of Development (PoD) for the field was given on December 23, 2022. 

    Zarubezhneft (ZN) received assurance of replacing ZN Asia Ltd. Harbor Energy Chief Executive Officer Linda Z. Cook once emphasized that the company's oil and gas portfolio in Indonesia, including the Tuna Block, is still a priority for corporate investment abroad. 

    This commitment was proven by the company by drilling four exploration wells in the Andaman Sea, another oil and gas working area in Indonesia managed by the company.

    The Indonesian oil and gas authority projects a state revenue of IDR 18.4 trillion from the management of the Tuna Block. This figure is higher than the potential The income that Premier Oil Tuna BV can obtain as a cooperation contract contractor is worth IDR 11.4 trillion.

    The Tuna Block is actually one of the Indonesian Government's hopes for increasing Indonesia's natural gas production. Minister of Energy and Resources Minerals (ESDM) Arifin Tasrif said that gas originating from the working area will be exported to Vietnam in 2026.

    Gas exports to Vietnam are considered more profitable because the geographical location of the Tuna Block is closer to Vietnam, making development possible Undersea pipelines such as the Nord Stream gas pipeline can directly distribute gas to mainland Vietnam.

    In terms of investment, the development of the Tuna Block up to the operational stage is estimated to reach US$ 3.07 billion. The estimate includes investments beyond sunk costs of US$1.05 billion, investments related to operating costs up to the economic limit of US$2.02 billion, and abandonment and site restoration costs (ASR) of US$147.59 million.

    Chairman of the Investment Committee of the Association of Oil and Gas Companies, Moshe Rizal, believes that European Union and British sanctions could have a serious impact on plan Tuna Block development. Premier Oil and ZN Asia Ltd. need to immediately take strategic steps so as not to hinder the continuity of its business in Indonesia.

    Moshe said that the government together with SKK Migas must also immediately provide a way out of the deadlock on cooperation commitments. The reason is that the sanctions imposed by the European Union and the UK have the potential to delay the development of the super jumbo oil and gas field.

    The desire to immediately resolve the problems in the Tuna Block also came from the Ministry of Energy and Mineral Resources, which hopes that Premier Oil Tuna BV's partners will be replaced soon.

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that data regarding the investment potential and details of the Tuna Block had been opened. Several International companies have expressed interest in investing in the Tuna block, but the government still needs to carry out further studies.

    According to him, the replacement of ZN Asia Ltd. in the Tuna Block is very urgent because Premier Oil cannot continue to invest all of its investment in developing the work area itself. After all, it could disrupt the company's cash flow and could go bankrupt.

    The Tuna Block does have a strategic role because it is located in the North Natuna Sea which directly borders Vietnam, a world geopolitical hot spot. In 2021, it was widely reported that the Chinese government was protesting the Indonesian government over oil and gas drilling activities in the sea of Natuna, even though The Jumbo oil and gas block is still Indonesian territory, and mainland China is too far from the Tuna block.

    In fact, in the Tuna Block, 2D and 3D seismic acquisition activities have been carried out, drilling of four exploration wells, namely the Gajali gas well, North Sea-1 gas well, and Belut Laut-1 gas well in 2011, as well as Sea Horse-1 gas well and Sea Lion-1 gas well in 2014.

    The discovery of hydrocarbon reserves in the Kuda Laut-1 and Sea Lion-1 wells, which are structurally adjacent, was later named the Tuna field, with resources of 104 million barrels of oil equivalent (MMBOE).

    These resources are dominated by natural gas reserves with high condensate content, with a CO2 content of less than 2%. Then, in 2021, potential reserves in the Tuna Block were confirmed again through drilling activities for two Delineation wells Sea Lion (SL)-2 and  Sea Horse (KL)-2.

Thursday, December 28, 2023

Inpex Starts Drilling on Masela Block in 2024




    The Ministry of Energy and Mineral Resources (ESDM) has approved further drilling at the Masela Block Abadi LNG project to begin next year after the second revision of the development plan was approved.

    The second revision of the development plan or Plan of Development (PoD) I of the Masela Block Abadi LNG project itself has been approved by the Minister of Energy and Mineral Resources, Arifin Tasrif.

    In addition to drilling plans, the ministry is targeting a final investment decision (FID) for projects with a current estimated value of around US$19.8 billion will also be completed next year.

    Several crucial points in the PoD include a commitment to commercial operations by the end of 2029, and initial plans to install exhaust gas capture facilities or Carbon Capture and Storage (CCS).

Drilling Girl

    In the new development proposal, SKK Migas reported that additional investment for CSS is estimated to be in the range of US$ 1 billion or equivalent to IDR 15.52 trillion at an exchange rate of IDR 15,520 per US dollar. For other investments in upstream oil and gas activities, there has not been much change.

    Masela Block Operator, Inpex Masela Ltd. currently negotiating with the Indonesian government regarding the need to re-amend the production sharing contract or PSC for the Masela Block Abadi LNG project.

    It is hoped that the contract amendment will make the economics of the national strategic project (PSN) more attractive at the time of Inpex's commitment to include CCS facilities in the development plan that was sent in April 2023. 

    Inpex targets development costs to be reduced optimally with an Internal Rate of Return (IRR) in the range of 10%.

    Inpex proposed that CCS installation and operation costs could be charged to the production-sharing contract that is currently being amended. The plan is that operating costs will be paid directly through the sale of gas and condensate from future field projects.

    The Masela Block development project will use a combined land and sea system to ensure that the investment value of the existing field development plan does not change much.

Drilling Girl

    Through this combination system, seabed drilling will be carried out at a depth of 600 meters, and the well depth will be 4,000 meters. The gas obtained will be processed in a floating building, namely floating production, storage, and offloading (FPSO) to be purified from other substances.

    After being purified at the FPSO, the gas will be channeled to the liquefied natural gas (LNG) refinery on land via the gas export pipeline (CEP) which is 175 kilometers away and through sea trenches. The Masela Block is one of the largest oil and gas field prospects in Indonesia. 

    Production is estimated to reach 1,600 million cubic feet per day (MMscfd) of gas or the equivalent of 9.5 million MTPA and 150 MMscfd of piped gas, as well as 35,000 barrels of condensate per day 4 (BCPD).

    The project, which was originally estimated to require investment costs of up to US$ 19.8 billion, is Inpex's second largest gas management asset, after the Ichthys LNG Project in Australia.

Tuesday, October 10, 2023

Smooth Roads and Red Carpets for ENI

Bisnis Indonesia, Page-4, Wednesday, Oct 4, 2023

    The Indonesian oil and gas authority has rolled out the red carpet for plans submitted by the ENI-Italy company, after discovering natural gas reserves of 5 trillion cubic feet in the North Ganal Block, East Kalimantan-Indonesia.

Red Carpet for ENI ITALY

    The Ministry of Energy and Mineral Resources (ESDM) has confirmed that it will provide full support for the plan proposed by ENI to develop natural gas reserves in North Ganal, including part of the Indonesian Deepwater Development area so that it can be developed simultaneously.

the North Ganal Block By ENI-Italy

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the merger of some of the Indonesian Deepwater Development (IDD) working areas would have a positive impact on Indonesia's upstream oil and gas development. The reason is, that the potential that exists in the area can be directly utilized by the facilities that are available.

    Tutuka Ariadji said we really support dividing the two IDD areas because it is good, and will reduce costs. Some can be used by existing facilities.

    ENI is planning to submit a revised Plan of Development IDD by dividing the development of the oil and gas block into two concentrations, namely the north side and the south side.

    The plan is for the southern part of the IDD to be connected to the floating production unit (FPU) of the Jangkrik Gas Field, while the northern part, which is close to the current large gas discovery location, will be connected to the North Ganal development block.

    The Ministry of Energy and Mineral Resources is currently waiting for the revised PoD so that it can be followed up immediately. The government is also committed to facilitating the acceleration of PoD approval for the block so that the timeframe for exploitation preparation can be shortened.

   Tutuka also explained that the exploration well drilled by ENI contained a very large amount of condensate to support Indonesia's oil production in the future. 

Blogger Agus Purnomo in SKK Migas

    This makes the government want these reserves to be monetized within 2 years from now. Meanwhile, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) estimates that Eni will build a new FPU facility on the northern side of their oil and gas portfolio, namely in the stretch of the Kutai Basin, off the coast of East Kalimantan, Indonesia.

"The Jangkrik Gas Field FPU is for the South side, it looks like it will build a new hub. So, there will be new facilities, because the Jangkrik Gas Field is already full by the Merakes Block and the Muara Bakau Block," said SKK Migas Deputy for Exploitation Wahju Wibowo.

Blogger Agus Purnomo in SKK Migas

   Wahyu added that the new facilities resulting from gas processing from the North Ganal Block will also be able to be channeled to the Bontang Refinery which is currently experiencing uncertainty in gas supply, due to the problem of decreasing production in a number of oil and gas working areas.

   "If it could be developed, the current Bontang Refinery only has 2-3 trains, with supplies from North Ganal it could have 4-5 trains. "It was previously thought that the Bontang Refinery would die, now it can have a longer life," he said.

the North Ganal Block By ENI-Italy

    ENI said that the discovery of significant amounts of natural gas reserves came from the Geng North-1 exploration well in the North Ganal Block, around 85 kilometers off the coast of East Kalimantan in Indonesia.

    Based on Eni's official statement, initial estimates show that the total structure discovered is 5 Tcf of gas with a condensate content of around 400 Mbbls. The data obtained by the company also allows for faster development studies later.

     The Geng North-1 well was drilled to a depth of 5,025 meters in a water depth of 1,947 meters; passing through a gas column approximately 50 meters thick in a Miocene sandstone reservoir with good petrophysical properties.

    The well production test (DST) has been successfully carried out for a comprehensive assessment of the gas discovery. Although limited by testing facilities, this study allows for estimates of the well capacity of up to 80-100 MMscfd and approximately 5-6 kbbls of condensate.

    It is also believed that the findings will contribute significantly to the formation of a new gas production hub in the northern part of the Kutai Basin. In addition, the findings will be connected to the Liquefied Natural Gas/LNG facility at the Bontang refinery, in East Kalimantan, Indonesia. Apart from Geng North, it is estimated that there are more than 5 trillion cubic feet of gas in undeveloped fields within the oil and gas block.

    The Indonesian oil and gas authority also believes that these findings can encourage more massive exploration investment in the future, considering that the potential for oil and gas in Indonesia is still very promising because there are still 68 basins out of a total of 128 oil source basins that have not been drilled.

Good News on the Discovery of a Large Oil Source by ENI ITALY

Bisnis Indonesia, Page-4, Tuesday, Oct 3, 2023

    The Indonesian oil and gas industry has received good news again from the discovery of large volumes of oil and gas reserves by the giant company from Italy, ENI. It is hoped that this positive sentiment can increase the attractiveness of the oil and gas sector.

ENI ITALY

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed that ENI had succeeded in finding natural gas reserves in the North Ganal Working Area, East Kalimantan-Indonesia, with an initial gas estimate of 5 Trillion Cubic Feet (Tcf).

    With an initial estimate of discovered resources of around 609 million barrels of oil equivalent, the report makes the discovery at the Geng North-1 well one of the world's top three exploration discoveries this year.

Blogger Agus Purnomo in SKK Migas

    Head of SKK Migas Dwi Soetjipto said that this finding would be one of the giant discoveries that would significantly increase gas reserves to support a sustainable increase in Indonesia's oil and gas production in order to achieve the oil production target of 1 million Barrels of Oil Per Day (BOPD), and gas of 12 billion cubic feet per day (BSCFD) in 2030.

    It is believed that this giant discovery can encourage more massive exploration investment in the future, considering that Indonesia's oil and gas potential is very promising because there are still 68 basins out of a total of 128 oil source basins that have not been drilled.

 Dwi Soetjipto said we hope that the discovery of gas reserves in North Ganal by one of the International Oil Companies [IOC] will encourage more other IOCs to enter Indonesia.

the North Ganal Block ENI

    SKK Migas immediately carried out intensive coordination with ENI to formulate the next stages so that this giant discovery could be immediately monetized.

    The Indonesian oil and gas authority will encourage the discovery of gas reserves to reach the production stage, so that it can increase supply to support development, including gas downstream which is currently being advocated by the government.

"This is also supported by the gas infrastructure that is already available in East Kalimantan, so it is hoped that it can be developed quickly and efficiently," said Dwi Seotjipto.

the North Ganal Block ENI Working Area

    ENI said that the discovery of significant amounts of natural gas reserves came from the Geng North-1 exploration well in the North Ganal Block, around 85 kilometers (km) off the coast of East Kalimantan.

    Based on Eni's official statement, initial estimates show that the total structure discovered is 5 TCF of gas with a condensate content of around 400 Mbbls. The data obtained will allow for faster development studies.

    The Geng North-1 well was drilled to a depth of 5,025 meters in a water depth of 1,947 meters, passing through a gas column approximately 50 meters thick in a Miacene sandstone reservoir with good petrophysical properties.

    The well production test (DST) has been successfully carried out for a comprehensive assessment of the gas discovery. Although limited by testing facilities, this study allows for estimates of the well capacity of up to 80-100 MMscfd and approximately 5-6 kbbls of condensate.

    It is also believed that the findings will contribute significantly to the formation of a new gas production hub in the northern part of the Kutai Basin, East Kalimantan. 

    Apart from that, these findings will be connected to the Liquefied Natural Gas/LNG facility in Bontang, East Kalimantan-Indonesia. It is estimated that apart from Geng North, more than 5 Tcf of gas is located in undeveloped fields within the oil and gas block. The potential for significant multi-Tcf exploration is being refined through ongoing studies.

    The Geng North discovery is close to the Indonesia Deepwater Development (IDD) area which includes several old discoveries that are not immediately developed in the Rapak and Ganal Blocks, where Eni has just announced the acquisition of Chevron shares, increasing ENI's participating shares, and acquiring Chevron operator ownership.

    Eni also promised to seek to merge the two oil and gas working areas for more optimal gas development. the acquisition also provides an opportunity to accelerate the development of the Gendalo and Gandang gas projects with gas reserves of around 2 TCF through the Jangkrik Gas Field facilities operated by Eni.

ACCELERATION

    Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) is targeting the discovery of giant gas reserves from the Geng Nordi-1 exploration well, North Ganal Block, ENI hopes to produce production within the next 2 years.

    The Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that his party would facilitate the accelerated approval of the Plan of Development (PoD) plan for the block. The hope is that the timeframe for exploiting preparations can be accelerated.

“We will facilitate this so that this happens quickly. "We are targeting that in the next 2 years, we will be able to get first gas," said Tutuka Ariadji.

    Even so, Tutuka reminded Eni of a number of homework that had to be completed when developing the gas reserves discovery, such as the vast expanse and the very challenging depth of the oil and gas reserves.

"It's a very large oil expanse, the thickness is okay and satisfying, but it's very wide," he said.

    The lengthy licensing process in the upstream oil and gas sector has become a public highlight to the point that the government is pushing for the issuance of special regulations that regulate the simplification and acceleration of basic requirements and licensing for upstream oil and gas activities in order to increase competitiveness and certainty of investment for Cooperation Contract Contractors (CCC/KKKS) in Indonesia.

    ReforMiner Institute Founder & Advisor Pri Agung Rakhmanto said that several times the discussion of the technology and economics of a proposed PoD was too detailed and very technical, making the process take a long time.

    This has not been supplemented by finalizing discussions regarding the PoD's decision itself, so KKKS has to wait longer to get certainty.

    In investment, there is a time value of money. The longer the time, the relative decrease in economic value. This also adds to the uncertainty factor if there is no decision soon.

    Pri Agung Rakhmanto also suggested that the government issue a special regulation that regulates the maximum time span for the PoD approval process. The hope is that the process of discussing and approving oil and gas field development plans in Indonesia can be faster.

    Pri Agung also sees the same thing happening in the upstream oil and gas procurement process, where technical verification and checking processes before approval related to procurement take a very, very long time. As a result, KKKS feels that investment procedures in Indonesia are still too long and increase costs.

Monday, September 25, 2023

Overcoming oil and gas BIG challenges in Indonesia

    The allure of upstream oil and gas investment in the country is increasingly attractive, as reflected in the commitment of a number of Cooperation Contract Contractors (KKKS) to continue investing in exploration activities.

    A number of global oil and gas giants have also agreed to achieve a large target of oil production of 1 million barrels per day (BPD) and gas of 12 billion standard cubic feet per day (BSCFD) by 2030.



    Through the signing of the Bali Commitment which was carried out at the CEO Forum at the 2023 International Convention on Indonesian Upstream Oil and Gas at the Bali Nusa Dua Convention Center, Badung Regency, Bali, Thursday, September 21. 

    The KKKS CEOs also promised to prepare a massive 2024 work program and budget, aggressive, and efficient. According to reviews by CEOs of international and national oil and gas companies, Indonesia is still an important portfolio. 

    Starting from oil and gas companies from Italy, namely ENI, ExxonMobil (United States), Petroliam Nasional Berhad or Petronas (Malaysia), Repsol SA (Spain), British Petroleum (England), to PT Medco Energi Internasional Tbk, and PT Pertamina ( Persero) invests more heavily in the oil and gas sector.

Roberto Daniele

    Director of ENI Muara Bakau BV, Roberto Daniele, said he was serious about investing more intensively in the exploration side of oil and gas fields. Currently, ENI together with PT Pertamina (Persero) have established strategic cooperation to carry out joint exploration in the Mahakam Block. 

the Mahakam Block

This collaboration is expected to increase oil and gas reserves. Roberto Daniele said ENI Muara Bakau BV is collaborating with Pertamina to explore the oil block  in Mahakam to look for other oil and gas sources throughout Indonesia.

    Apart from that, ENI will also carry out more massive drilling for wells and exploration in the next 4 years. According to Roberto Daniele, this commitment shows Indonesia's important position in the company's portfolio. 

    Moreover, Indonesia still has large oil and gas reserves. Based on records from the Ministry of Energy and Mineral Resources, Indonesia's proven natural gas reserves even reach 41.62 trillion cubic feet (TCF). Apart from that, Indonesia still has 68 potential basins that have not been explored.

Carole Gall

    President of ExxonMobil Indonesia Carole Gall said that Indonesia has all the segments that ExxonMobil must offer. We have upstream and downstream such as fuel, lubricants, chemicals, and energy transition. Of all the Exxon affiliates in the world, it is rare to have all segments in one place together, but Indonesia has it all. 

    It is not surprising that ExxonMobil remains committed to continuing exploration investments in a number of fields and open areas. Carole Gall said ExxonMobil would drill again in Banyu Urip for 1.5 years.

    Nevertheless, a number of problems still confront the national upstream oil and gas industry, at least There are a number of crucial things that investors should note, including contract certainty, competitive and durable regulations, and ease of investing. 

    The Indonesian government is asked to increase the competitiveness of investment in upstream oil and gas by improving a number of fiscal and non-fiscal policies at a time of increasingly tight competition with a number of countries.

    In accordance with the above, Carole Gall asked the Indonesian government to improve the terms and conditions of upstream oil and gas, especially related to the terms and procedures for procurement of goods and services and auctions for oil and gas projects after approval of the Plan of Development/PoD for oil and gas fields have been obtained by the contractor. 

    According to Carole Gall, the process of procuring goods or auctioning oil and gas projects that is too long makes the return on investment and sustainability of the project unattractive for investors.

    Similar complaints were also made by other KKKS, including PetronasThis oil and gas company from Malaysia highlights the issue of certainty in contracts and fiscal terms in the oil and gas industry. 

Yuzaini Bin Md Yusof

    Petronas will support the Indonesian government to produce 1 million barrels of oil. Petronas Indonesia CEO Yuzaini Bin Md Yusof said Petronas would explore new areas in Indonesia.

INVESTMENT OPPORTUNITIES


    Meanwhile, Dwi Soetjipto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK MIGAS), emphasized that Indonesia continues to Offer investment opportunities in the oil and gas sector and is ready to improve fiscal policy and provide various incentives. 

    Dwi Soetjipto said that in overcoming the energy trilemma, a broader collaborative effort is needed between the government, IOC, NOC, and policymakers, namely the Indonesian government. In line with this, investment support is needed so that exploration and development activities for oil and gas fields can be carried out on a massive scale.

    Responding to various input and complaints submitted by energy observer investors and founder of the ReforMiner Institute, Pri Agung Rakhmanto assessed the need for regulations regarding the latest time limit from processing to reaching the PoD approval decision. Pri Agung Rakhmanto said that the longer it takes, the relative economic value will decrease, and also increase the uncertainty factor if there is no decision immediately.

    Meanwhile, based on SKK MIGAS calculations, the oil and gas sector requires a very large investment of more than US$ 20 billion per year to support the 2030 oil and gas production target. Overall, the funding requirement reaches at least US$ 186.7 billion. to be able to achieve the oil production target of 1 million BOPD and natural gas 12 BCSFD by 2030.

Bisnis Indonesia ,Page-4-Saturday, Sept 23, 2023

Saturday, June 3, 2023

Minister EMR in Jakarta: sHELL ran away from the Masela Block Irresponsible

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was very angry with the behavior of the British oil company sHELL. As of today, sHELL does not want to release its 35% participating interest (PI) shares in the Masela Block.

    sHELL has declared that it has run away from working on an oil and gas mining project in the Masela Block. With the PI not being released, the project has been stuck to this day and is very detrimental to Indonesia. 

    Even though Inpex Japan is very interested and able to work on this jumbo project.

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was very angry with the behavior of the British oil company, sHELL. The reason is, to this day the company does not want to release its participating interest (PI) in the Masela Block.

    Arifin said that because of Shell's actions, Indonesia felt disadvantaged, because if the oil and gas mining project in the Masela Block was carried out, it would produce gas of 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and pipeline gas of 150 MMSCFD, as well as 35,000 barrels of oil per day.

The Masela Block

    The Masela Block is being worked on by a Japanese company, namely Inpex Corporation as the operator with a 65 percent stake and the remaining 35 percent is held by Shell Upstream Overseas Services. Everything should be handed over to Japan because sHELL is just playing around and not being serious.

    Arifin continued, if by 2024 there is no activity in the Masela Block, then the government will take over the Abadi gas field development project. 

    This is based on the provisions in the Masela Block development plan or Plan of Development (PoD).

    The Masela block is an oil and gas mine located in the Aru Sea and has been explored since 1998. This project requires a very large capital expenditure (capex), estimated at US$ 20 billion. So it will be difficult if a single investor develops this block without a shareholder partner.

    The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said PT Pertamina (Persero) had now agreed to form a consortium to run the oil and gas project to replace sHELL.

Petronas

    The Masela Block has been finalized with Petronas. So SKK Migas has discussed the deal with Petronas, if the price is right, give it immediately, this year it can be done," said Luhut.

Blogger Agus Purnomo in SKK Migas

    Luhut also explained that there were no problems with the process of purchasing Shell's participating interest (PI), it's just that the price bidding process at the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) took a long time because Shell tried to extort Indonesia.


Thursday, January 12, 2023

After the Accident Incident, Petrochina's Production Activities Are Still Normal

    The PetroChina Cooperation Contract Contractor (KKKS) stated that until now, oil and gas production activities in the Jabung Working Area are still proceeding normally, following the accident in the WB-D7 well area in West Tanjung Jabung, Jambi, which is operated by Drilling Service Companies on Monday (9/1).

"Production activities are still ongoing and the investigation process in the field is continuing," PetroChina Vice President Human Resources and Relations Dencio Renato Boele said in a written statement, Wednesday (11/1).

    It was stated that the accident involved three workers, two of whom came from the Bohai Drilling Contractor company and one came from the Great Wall Drilling Contractor. The two service companies are contractors providing the Bohai-85 Rig which is currently carrying out a workover program at the WB-D7 well in the Jabung Working Area.

    Currently, the three workers who were injured in the accident have been treated at a hospital in Jambi. After a thorough examination, one employee was allowed to undergo outpatient treatment and the other two continued intensive care at the hospital.

"Two workers who are still being treated are currently in stable condition and are receiving further treatment from a team of specialist doctors. For information, one person is being treated for burns and one person is being treated for a broken bone," PetroChina Vice President Human Resources and Relations Dencio Renato Boele said.

"Currently, we continue to coordinate with the Drilling Service Companies for patient treatment and improvement of rig conditions on-site. We have also reported this incident to SKK Migas and the Directorate General of Oil and Gas," Dencio.

Blogger Agus Purnomo In SKK Migas

    The Head of Representative of SKK Migas Sumbagsel Anggono Mahendrawan confirmed the incident. 

"We have received a report of a work accident at Rig Bohai-85 last night, there were no fatalities, but three people were injured," said Anggono. 

"Nevertheless, SKK Migas requests that the PetroChina PSC Contractors immediately investigate this incident and work together with stakeholders in the regions according to their respective duties and functions, which pay attention to the corridors of the applicable laws and regulations," he continued.

    Anggono said that in principle SKK Migas always emphasizes that PSC Contractors carry out upstream oil and gas operations in accordance with applicable SOPs including in terms of maintaining security and reliability. 

    Anggono also prayed that the condition of the workers, especially the two workers who are currently undergoing intensive care at the hospital, will soon improve and be able to go home.

#PetroChina

Investor Daily, Page-10, Thursday, Jan 12, 2023

Corruption Eradication Bureau Investigate BP's Gas Sale and Purchase Contract

    The government has approved the extension of the Tangguh Cooperation Contract (KKS Tangguh) to BP as the operator and partner of the Tangguh PSC for 20 years, from 2035 to 2055. 

    The Tangguh project, which is being worked on by contractors (KKS) Berau, Muturi, and Wiriagar, produces liquefied natural gas (LNG).

    It's just that this contract extension was given earlier, giving rise to a polemic. Before his abdication, President Jokowi's administration was considered to be selling out contract extensions to a number of jumbo companies in order to guarantee long-term investment.

    Economist for Celios, Bhima Yudhistira, considers it strange to extend the contract earlier. Moreover, the contract extension occurred before the 2024 general election, causing various speculations.

    Deputy for Prevention of the Corruption Eradication Commission (KPK) Pahala Nainggolan revealed that his party had not received any news regarding the extension of the operating permit that had been granted. Even so, the KPK will explore the details of the gas sale and purchase contract in question.

Blogger Agus Purnomo in SKK Migas

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) confirmed that BP Berau Ltd's contract extension had complied with regulatory requirements. Head of SKK Migas Dwi Soetjipto explained, there are a number of provisions that allow for earlier contract extensions.

    Dwi said that a number of provisions included the commitment of a gas buyer as well as the potential for exploration and development. Acting Head of SKK Migas Program and Communication Division, Mohammad Kemal, said that BP Berau has the commitment to buy and sell gas, both in the domestic and foreign sectors.

"There are domestic buyers, namely the State Electricity Company (PLN), while exports are sold to China, Japan, and Korea," said Kemal.

    Kemal said that if you refer to the provisions, then the acceleration of the extension can be carried out if the Cooperation Contract Contractor (KKKS) has a Head of Agreement (HoA) or a letter of intent (LOL) to buy gas during the contract period. 

    Referring to the provisions of Minister of Energy and Mineral Resources Regulation No. 23/2021 concerning the Management of Oil and Gas Working Areas for Cooperation Contracts that Will End, contract extensions may be given earlier.

    In Article 4 Paragraph 3 of the regulation, it is stated that the application for a contract extension is submitted no earlier than 10 years and no later than 2 years before the contract ends. As for Article 4 Paragraph 4, requests for contract extensions can be faster than the 10-year time limit for contractors who are bound by a natural gas sale and purchase agreement. 

    The next paragraph states that the natural gas sale and purchase agreement includes a letter of intent, memorandum of understanding (MoU), head of agreement (HoA), or sale and purchase contract.

    BP's Tangguh PSC actually expires in 2035. Applications for contract extensions can generally be submitted no earlier than 10 years before the contract period ends or 2025. 

    BP Berau signed an amendment to the Gas Purchase Agreement (PjBG) with PLN in 2016. This is a follow-up amendment from the signature on October 17, 2014.

    The government has approved the extension of the Tangguh Cooperation Contract (KKS Tangguh) to BP as the operator and partner of the Tangguh PSC for 20 years, from 2035 to 2055. The Tangguh project, which is being worked on by contractors (KKS) Berau, Muturi, and Wiriagar, produces Liquified Natural Gas (LNG).

#BP, #SKKMIGAS

Kontan, Page-12, Tuesday, Dec 27, 2022