First, the Restructuring of the Business Is Running Smoothly

PT Pertamina (Persero) ensures that the restructuring process of the company is carried out according to what is customary in the business world. Currently, the restructuring process is still in a transition period to ensure Pertamina and the entire group business are ready for the next process. 

Blogger Agus Purnomo in SKK Migas

    SVP Corporate Communication & Investor Relations of Pertamina Agus Suprijanto said Pertamina restructuring is a mandate for shareholders that must be realized. In the process, management always considers strategic aspects, procedures, and handling of all company assets, including employees, in accordance with applicable legal regulations.

"The company restructuring carried out by Pertamina currently has common practices in efforts to improve company performance and efficiency, as has happened in various other global energy companies. When restructuring, the company also goes through a transition period, "said Agus.

Agus said the legal position or legal standing regarding the formation of a holding and group business is clear. Regarding assets, Agus confirmed that until now there has been no transfer of Pertamina's assets to other group businesses or subsidiaries. 

    The status of the management of the work area of ​​the upstream subsidiary that has contracted with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) remains the same. Agus said regionalization was carried out to coordinate and ensure that upstream oil and gas operations were integrated so that operations would be more efficient.

Agus denied accusations that Pertamina's restructuring had hampered operations and strategic projects. According to him, so far all business processes and operations from upstream to downstream have been running well.

"This shows that Pertamina's business processes are fine, not messy. In terms of work procedures, management has also issued regulations governing workflow and authority during the transition period, ”said Agus.

Regarding refinery revitalization and construction, Agus said, until now the refinery development master plan and grass-root refinery (RDMP / GRR) projects are still ongoing according to predetermined stages. In general, all projects showed clear progress and went well with management monitoring.

"The restructuring process is carried out in stages. In the current transitional period, we ensure that all restructuring preparations are complete, ”said Agus.

The Ministry of State-Owned Enterprises (BUMN) stated that Pertamina's restructuring was carried out to answer the needs of the oil and gas industry. Special Staff to the Minister of BUMN, Arya Sinulingga, said that the energy sector continues to undergo transformation or change, which demands that Pertamina be able to adjust. There are five sub holdings that have been formed, including the upstream sub-holding whose operations are held by PT Pertamina Hulu Energi (PHE).

Then, there is PT Perusahaan Gas Negara (Persero) Tbk as a gas sub-holding and refinery and petrochemical sub-holding run by PT Kilang Pertamina Internasional. Power and NRE sub-holding (PT Pertamina Power Indonesia) and commercial and trading sub-holding (PT Patra Niaga). The shipping company operation is held by PT Pertamina International Shipping.

Republika, Page-9, Monday, Oct 26, 2020

Additional Pertamina Split Awaits the Approval of the Minister of EMR

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that PT Pertamina (Persero) 's split changes in several of its oil and gas blocks are still waiting for the approval of the Minister of Energy and Mineral Resources (ESDM).

Blogger Agus Purnomo in SKK Migas

However, this additional split has the potential to increase oil reserves by 120 million barrels and gas by 1.7 trillion cubic feet. Deputy of Planning for SKK Migas, Jaffee Suardin said that discussions regarding the proposed additional split of Pertamina in several of its oil and gas blocks have now reached the final stage. Furthermore, to realize the additional split, his party needs approval from the Ministry of Energy and Mineral Resources.

"It needs approval from ESDM because there will indeed need to be something approved by the Minister of EMR," he said.

Jaffee revealed that the proposed additional split was through long discussions with his party. The reason is that this proposal was initiated by his party's efforts to seek oil and gas potential that could be developed but had not yet been included in Pertamina's long-term plan. Furthermore, his party issued a recommendation to the Ministry ESDM.

"We want to try it in the future, for 1-2 months, so that we can finish it," he said.

According to him, this additional split has the potential to generate oil and gas reserves for Indonesia without having to wait for exploration activities to be carried out. Not only that, but this step will also increase the economy of the oil and gas block for up to 10 years.

"What is being discussed now is to add approximately 120 million barrels of oil reserves and 1.7 trillion cubic feet of gas," said Jaffee.

He said the additional split proposal did not end only for Pertamina. His party will continue to look for oil and gas potentials in other working areas that can be developed in the future.

"The point is, the more aggressive and efficient," he added.

Previously, Director of Development and Production of PT Pertamina Hulu Energi (PHE) Taufik Aditiyawarman said that his party had proposed an additional split for the Mahakam Block and the Sanga-Sanga Block. In addition, his party is still reviewing the proposed changes to the results of the East Kalimantan Block, Offshore North West Java (ONWJ), and Offshore Southeast Sumatra (OSES). These five blocks are termination blocks managed by the company.

Deputy of Monetization and Finance of SKK Migas, Arief S Handoko, revealed the potential for increased gas production from oil and gas blocks in East Kalimantan or the East Kalimantan System. This is after the incentives being proposed by Pertamina for the Mahakam, Sanga-Sanga, and East Kalimantan blocks. The existence of incentives will encourage more massive operations and well drilling activities.

the Mahakam Block

"In 2021, the Mahakam Block could reach more than 500 million standard cubic feet per day / MMScfd, not yet from the others," he said.

Taufik had said that if the profit-sharing was improved, his party was committed to increasing the production of the oil and gas block.

"Of course, with a better economy, it will maximize the monetization of the potential in the oil and gas block, increase reserves and future production," he said.

Pertamina signed a production sharing contract / PSC) for the Sanga-Sanga Block, East Kalimantan, and the OSES Block with a gross split scheme in 2018. Likewise, the amendment to the Mahakam Block PSC uses a cost recovery investment scheme. The ONWJ Block contract was signed in 2017.

Referring to the contract, Pertamina's profit-sharing in the SangaSanga Block is set at 49% for oil and 54% for gas. Meanwhile, in the East Kalimantan-Attaka Block, the company gets 61 percent for oil and 66 percent for gas. Furthermore, Pertamina's profit-sharing in the OSES Block is set at 68.5% for oil and 73.5% for gas.

In the ONWJ Block, Pertamina previously obtained additional splits through ministerial discretion and changes to the gross split scheme. Initially, Pertamina's profit-sharing in this block was 57.5% for oil and 62.5% for gas. At the end of 2017, this revenue-sharing amount increased to 73.5% for oil and 81% for gas. The five termination blocks worked by Pertamina are included in the list of 10 largest oil and gas producers in Indonesia. 

    Referring to SKK Migas data, the realization of oil lifting in the Mahakam Block was recorded at 29,361 barrels per day (BPD) from the Revised State Budget (APBN-Amendment) target of 25 thousand BPD and 558 MMScfd of gas from the target of 510 Mmscfd.

Furthermore, the oil lifting of the ONWJ Block was 28,893 BPD from the target of 27,500 BPD and gas 71 MMScfd of the target of 58 MMScfd. Following are the achievements of OSES Block oil lifting of 26,542 BPD from the target of 24,010 BPD, East Kalimantan 9,862 BPD from the target of 11,380 BPD, and Sanga-Sanga 12,515 BPD from the target of 12,030 BPD.

Investor Daily, Page-9, Saturday, Oct 24, 2020

SKK Migas - Inpex Completes Metocean Service Visit for Abadi LNG Project

    SKK Migas together with KKKS INPEX Masela, Ltd. has successfully completed a metocean service visit for the Abadi LNG Project during the Covid-19 pandemic in the waters of the Abadi Field in the Arafura Sea, without any Covid-19 transmission and without any work accidents. 

    The NV NMS Brilliance ship, which departed from Jakarta for the Abadi Field area on September 13 with its personnel and crew for this metocean service visit, arrived back in Jakarta on October 9. The metocean service visit was carried out without having to dock at the port in Tanimbar Islands Regency, Maluku to undergo quarantine.

Blogger Agus Purnomo in SKK Migas

"With this new innovation, inspection and maintenance of 17 marine metocean stations and data collection related to metocean can be done more quickly, which will then be processed and analyzed," said SKK Migas Operations Deputy Julius Wiratno.

Julius Wiratno

    In more detail, the main activities carried out during the metocean service visit are taking, checking, and maintaining equipment and sensors at the metocean observation station, as well as downloading and verifying data and data storage systems, to re-installing sensors and equipment to the metocean observation station.

    Julius said that the metocean service visit activity during the Covid-19 pandemic was very troublesome so there must be new innovations from SKK Migas and Inpex in doing so, such as implementing service visits without anchoring at the Maluku port, enforcing and monitoring anti-COVID 19 health protocols according to World Health Organization standards. (WHO) is strict with the personnel and crew of the ship every day both before leaving, while onboard, and after completing the service visit.

"This success sets a good precedent for the implementation of upstream oil and gas activities in other oil and gas fields during the Covid-19 pandemic," he said.

    Vice President Corporate Services Inpex Masela, Ltd Henry Banjarnahor appreciates the success of this metocean service visit and thanks SKK Migas for its strong support for the implementation of metocean service visits during the Covid-19 pandemic, as well as to the Maluku Provincial Government and Regency Governments. Tanimbar Islands for their extraordinary support so that the metocean service visit took place smoothly and on time.

"This encourages us that other innovations can be planned and carried out after a very careful study, while still paying attention to the established health protocols," said Henry.

    The Abadi Masela project is planned to have a production capacity of 1,750 MMSCFD (9.5 MTPA LNG and 150 MMSCFD of pipeline gas). SKK Migas targets that the Abadi Masela Project is scheduled to produce in 2027.

Investor Daily, Page-10, Monday, Oct 12, 2020

Medco West Eel Exploration Well Drill-1

 

Medco E&P Natuna Ltd (Medco) began drilling the West Belut-1 exploration well in Block B South Natuna Sea, Riau Islands. The West Belut-1 well is the fourth exploration well drilled by Medco in Block B South Natuna Sea this year.

Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman appreciated Medco's aggressive move to drill exploration wells amid the Covid-19 pandemic. 

Blogger Agus Purnomo in SKK Migas

    Prior to West Belut-1, Medco had also drilled exploration wells for Bronang-2, Kaci-2, and Terubuk-5 in Block B South Natuna Sea.

"This is an endeavor in the midst of the situation we face. We hope that this drilling will also succeed in adding to the national oil and gas resources following the success of previous wells, "he said.

From previous drilling activities, the Kaci-2 Well succeeded in delivering high-quality dry gas with test results of 13 million cubic feet per day (million standard cubic feet per day / MMscfd) from 2 DST zones. Meanwhile, the flow test results from the Bronang-2 exploration well were recorded at 45 MMscfd from 4 DST zones.

    Furthermore, Medco also succeeded in finding additional oil and gas resources through the Terubuk-5 well drilling. From the three results of the well testing interval, this well is proven to flow 33 MMscfd of gas and 3,300 barrels of oil and condensate per day (bpd) from 3 DST zones.

Fatar Yani hopes that drilling activities and the like will always get support from various related parties. Thus, efforts to increase national oil and gas resources can be carried out smoothly.

"Hopefully in the future, we will get significant additions, so that the goal of 1 million barrels of oil per day in 2030 can be realized," he added.

Investor Daily, Page-10, Monday, Oct 5, 2020.

SKK Migas Optimistic that Oil and Gas Block Increase

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that oil and gas production from the 13 oil and gas blocks whose contracts expire in 2020-2022 can be increased in the future. 

Blogger Agus Purnomo in SKK Migas

    This is because the work program to be carried out also increases along with the transfer to a new operator.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said, there was an increase in the work program in terminated oil and gas blocks in line with the certainty of a contract extension that had been given by the government. With the increase in this work program, his party projects that oil and gas production in this termination block can increase.

"The crucial period in 2021, oil and gas production must increase in the following year. This is in line with the vision of a production target of 1 million barrels per day (BPD) or a total of 3.2 million BOPED (barrel of oil equivalent per day/barrel of oil equivalent per day) in 2030, "he said.

Referring to SKK Migas data, the 13 oil and gas termination blocks are estimated to reach a low of around 250 thousand BOEPD this year and stay in the same range next year. Next, oil and gas production is projected to start increasing in 2022 and reaching more than 300 thousand BOEPD in 2023. The amount of oil and gas production is estimated to last until 2027 and again increase in 2028.

His party has prepared a number of strategies to maintain oil and gas production in the 13 termination blocks. In the short term, the increase in production is carried out through additional development drilling activities, as well as workover and well service.

"Drilling has a drastic increase from 2020 to 2025, as well as workover. Well service has also increased slightly, "Dwi explained.

Meanwhile, the Firm Work Commitment (KKP) promised by the operator will be used to increase oil and gas production in the medium and long term through exploration and enhanced oil recovery (EOR).

"The total KKP fund is the US $ 1.17 billion. We will also accelerate KKP activities if possible, "said Dwi.

Of the total KKP funds, Dwi explained, the US $ 782.7 million was budgeted for exploration activities. In detail, these funds will be used to carry out 41 G and G studies, 2,150 kilometers (km) of 2D seismic, 3,050 square kilometers of 3D seismic, and drilling of 70 exploration wells. Furthermore, the EOR budget is US $ 386.8 million which includes the implementation of two EOR studies and 9 EOR pilot projects.

Another thing that also determines the future production of termina block oil and gas is the transfer of management of the Rokan Block. His party and Chevron Indonesia have agreed to start investing in Well drilling during the transition period this November. This step is necessary to curb the rate of decline in production in the oil and gas block, which is the second-largest oil producer in Indonesia.

"In the previous 2019-2020, there were no drilling plans, except for this November. In 2021, there are 200 wells to be drilled, 112 wells from Chevron, the rest will be continued by Pertamina after August 2021, "Dwi explained.

However, Dwi noted there are a number of things that must be considered in maintaining the termination block oil and gas production. One of them, in increasing oil and gas production by adding activities, economic factors will be a challenge for oil and gas companies. Therefore, the decision to provide incentives is also important.

"Other things are the execution of the work plan, the schedule on stream which is on time, and the best effort to carry out the drilling," he said.

The 13 oil and gas blocks whose contracts expire in 2020-2022 are Block South Jambi B, Makassar Strait, Brantas, Salawati, Malacca Strait, Bird's Head, Bentu, Selat Panjang, Rokan, Tarakan, CPP, Tungkal, and Sengkang. 

Chevron

    The operators of 13 oil and gas blocks have successively switched to Jindi South Jambi B, Chevron Makassar Limited, Minarak Brantas Gas, Petrogas (Island) Ltd, EMP Malacca Strait, Petrogas (Basin) Ltd, EMP Bentu, Sumatra Global Energi, PT Pertamina Hulu Rokan. , PT Medco E&P Tarakan, PT Bumi Siak Pusako, Montd'Or Oil Tungkal Ltd, and Energy Equity Sengkang.

Investor Daily, Page-9, Saturday, Oct 3, 2020

LNG Tangguh Train-3 Papua focuses on targeting the domestic market

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) ensures that it will gradually reduce the export contract for Liquefied Natural Gas (LNG) cargo from the Tangguh Train-3 project. 

Blogger Agus Purnomo in SKK Migas

    This condition will increase the volume of LNG that has not been contracted. For this reason, SKK Migas will focus on finding vacancies in the LNG contract in the domestic market.

Dwi Soetjipto

    Head of SKK Migas, Dwi Soetjipto, said that one of the consumers who will buy the Tangguh Train-3 LNG is PT Perusahaan Listrik Negara (PLN). In 2022, PLN is projected to purchase 60 cargoes of LNG.

PT Perusahaan Listrik Negara (PLN)

"We hope that PLN can buy what has been allocated, said Dwi Soetjipto.

    For information, the Tangguh Train-3 project is projected to be onstream in the fourth quarter of 2021. That means retreating from the target in the second quarter of 2021. The gas sales for the Tangguh Train-3 project owned by BP Berau Ltd will reach 595 million cubic feet per day (mmscfd).

"Production started in the first year of about 40 cargoes and an increase of 60 cargoes in the following years," he said.

    Apart from being purchased by PLN, Kansai Electric is the LNG consumer of Train-3. 

Susana Kurniasih 

    SKK Migas Acting Head of Program and Communication Susana Kurniasih stated that SKK Migas and BP Berau Ltd are committed to providing the volume according to the contract. 

    She said the domestic market was a priority for Tangguh LNG purchases. When the domestic market has bought optimally, the excess LNG will be exported.

Kontan, Page-10, Saturday, Oct 3, 2020.

Cepu block returns to normal production at 220 thousand BPD

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Cepu Block has returned to producing around 220 thousand barrels of oil per day (BPD) after having stopped operations (planned shutdown) for routine maintenance.

the Cepu Block

Acting Head of Program and Communication Division of SKK Migas, Susana Kurniasih, said that the cessation of the operation took place faster than planned for 9 days to 7 days. With the acceleration of the planned shutdown since September 18th, Banyu Urip Field, Cepu Block, has started producing oil again.

Banyu Urip Field, Cepu Block.

"Within 2 days of schedule, there will be potential to increase the production of 450 thousand barrels of oil," said Susana.

Susana Kurniasih

Susana explained this additional production is very important for SKK Migas in an effort to meet the lifting target of oil and gas (oil and gas) in the Revised State Budget (APBN-P) 2020.

Blogger Agus Purnomo in SKK Migas

"In addition, this acceleration will also have an impact on saving operating costs so that we can optimize state revenues," said Susana.

Susana added that this success was due to the excellence shutdown handling carried out by the SKK Migas team with Exxon Mobil Cepu Limited (EMCL) is the Cepu Block operator. Even during the Covid-19 pandemic which resulted in work restrictions, the cessation of operations could be accelerated with digital optimization.

Vice President Public and Government Affairs Exxon Mobil Indonesia Azi N Alam said, the planned shutdown activities have been planned, scheduled, and approved in the work plan and budget (Work Program & Budget / WP & B). Thus, this activity has no effect on achieving the Cepu Block production target. 

    In addition to routine maintenance, activities carried out during the planned shutdown also include gas handling capacity upgrades and support the process of working on the tie-ins for the Jambaran-Tiung Biru Project.

the Jambaran-Tiung Biru Project

"Focusing on the implementation of safe and good work activities has enabled the Cepu Block to return to production of more than 220 thousand," said Azi N Alam.

Currently, his party is focused on maintaining operational stability. After that, his party will gradually increase oil production from the Cepu Block while ensuring the safety and reliability of operations. 

    Referring to SKK Migas data, the Cepu Block is targeted to produce 220 thousand bpd of oil according to the 2020 State Budget. As of last June, the realization of this block's production has reached 220,279 thousand BPD or the largest in Indonesia.

Furthermore, until August 12, production will again increase to 228 thousand bpd. On the other hand, SKK Migas is also working on accelerating several work programs from oil and gas companies operating in Indonesia. 

    He hopes that the implementation of this work program can be the initial capital to realize the oil production target next year which is set the same as this year, which is 705 thousand bpd.

"Anything that can be done in 2020, such as maintenance, procurement, licensing, and other things, we ask that it be implemented immediately. This is a joint commitment, "said Susana.

Investor Daily, Page-10, Tuesday, Sept 29, 2020

SKK Migas Strengthens Coordination

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with PT Chevron Pacific Indonesia (CPI) continues to coordinate to ensure the transition to the Rokan Block takes place according to plan.

Blogger Agus Purnomo in SKK Migas

"SKK Migas and CPI are currently coordinating to carry out field preparations. If the head of agreement is signed, activities can go ahead, ”said Susana Kurniasih, Plt. Head of SKK Migas Program and Communication Division.

PT Chevron Pacific Indonesia (CPI)

Drilling in the Rokan Block by Chevron is confirmed to be still on schedule, namely November 2020. He said Chevron will use two rigs to drill the Rokan Block. Chevron is said to be able to increase the production of the Rokan Block working area to 5,000 barrels per day (bopd) from drilling 11 wells this year.

the Rokan working area (WK)

As of July 2020, oil production in the Rokan working area (WK) had fallen 170,000 bopd. For this reason, the process of transferring management of the Rokan Block must be smooth without causing the level of decline in production to continue to grow.

Sonita Purnomo

"As with any transition, there are a number of things that are being discussed so far, including options to support the state in optimizing production from this strategic asset," said Chevron's Corporate Communication Sonita Purnomo.

Dwi Soetjipto

Previously, the Head of SKK Migas Dwi Soetjipto explained that he was taking care of an environmental audit to transfer the management of the Rokan Block with Chevron. 

    Referring to the production sharing contract for the Rokan Block CA, Chevron does not have the obligation to reserve funds after mining. However, Chevron has committed to providing funds for the Abandonment Site Restoration or contaminated land.

In order for the transition process to run smoothly, PT Pertamina (Persero) was also asked to prepare for post-transition needs in the Rokan Block. Currently, Pertamina is also known to be preparing to procure a rig for drilling the Rokan Block which will be carried out in 2021. 

Fajriyah Usman

    VP Corporate Communication of Pertamina Fajriyah Usman explained, Pertamina has prepared rig procurement considering that Chevron has no more rig contracts since 2018 in the Rokan Block.

"For the Pertamina Hulu Rokan 2021 drilling, the preparation of drilling rigs is currently being processed through new procurement and Pertamina Group synergies," said Fajriyah Usman.

Bisnis Indonesia, Page-4, Monday, Sept 21, 2020

Pertamina-Chevron Continue to Discuss the Transition of the Rokan Block

 

PT Pertamina Hulu Rokan (PHR), a business unit of PT Pertamina (Persero) which will operate the Rokan Block working area, continues to communicate with PT Chevron Pacific Indonesia (CPI) ahead of the takeover of operatorship on August 9, 2021.

the Rokan Block by Chevron

During this transition period, PHR will make efforts so that the Rokan Block operation can run well, one of which is related to the procurement of goods and services.

Director of PHR RP Yudantoro said, to date, PHR is mapping the existing contracts in the CPI and the PHR work plan after the transition. PHR is also currently determining the needs for goods and services of all user function entities.

In order to speed up the procurement process, PHR has also started meeting with potential work partners and carried out socialization related to the procurement process and procedures at PHR. 

    This socialization was carried out online on Thursday (3/9) to around 150 prospective partners who were CPI's working partners. have handled a number of goods and services needs in the Rokan Block.

"We realize that PHR cannot work alone to optimize and develop the Rokan Block working area. For this reason, it is necessary to involve partners in the procurement of goods and services we need for the operational needs and interests of Working Area the Rokan block, "said Yudantoro.

Regarding data on work partners and contracts, Yudantoro said that his party was assisted by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). 

Blogger Agus Purnomo in SKK Migas

    PHR continues to communicate intensively with CPI to accelerate the transition of documents or data from CPI's working partner contracts during the 2017-2021 period, including those that have expired the contract period but are still required for the operation of the Rokan Block working area. 

    This contract document is necessary considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Rokan Block working area. While That is, non-routine operations are carried out based on the work plan and production targets determined by the PHR.

"PHR will immediately prepare a contract for WK Rokan based on information from the existing operator, thus enabling PHR to prepare an adequate scope of work and technical specifications," said Yudantoro.

The procurement of goods and services at PHR, said Yudantoro, will be carried out according to company needs by carrying out efficiency in all fields. Coordination with work partners who will become PHR business partners can be done through business to the business mechanism. The Rokan block is the largest oil block in Indonesia.

This 6,220-kilometer oil and gas block has 96 fields with three fields having good oil potential, namely Duri, Minas, and Bekasap. Moment Currently, the operational management of the Block Rokan is CPI.

Previously, PT Pertamina Hulu Energi (PHE), Pertamina's upstream sub-holding opened opportunities for local entrepreneurs and contractors in the Riau region to become part of the Rokan Block. Pertamina promised to involve local entrepreneurs to be able to participate in the development of the Rokan Block. 

    PHE CEO Budiman Parhusip explained that the involvement of local entrepreneurs, both from the service and equipment sectors, is expected to help improve Riau's economy. He said, not only local companies Regional-owned enterprises (BUMD) also receive a portion with participating interest (PI) of 10 percent.

Republika, Page-4, Saturday, Sept 12, 2020

Pertamina Begins Transition of Rokan Block

 

PT Pertamina through Pertamina Hulu Rokan (PHR) ensures that a number of transition efforts are still being carried out ahead of the transfer of management of the Rokan Block in August 2021.

The Rokan Block By Chevron

One of the things being done at this time is the transition of contract documents related to the procurement of goods and services. PHR conducted outreach with 150 prospective partners who were partners of PT Chevron Pacific Indonesia (CPI) in managing the Rokan Block.

Director of PT PHR, Yudantoro, explained, to speed up the process of procuring goods and services, PHR has met with 150 prospective partners and conducted socialization related to procurement processes and procedures at PHR. Yudantoro said that his party could not work alone to optimize and develop the Rokan Block.

"This requires the involvement of partners in the procurement of goods and services that we need for the needs and operational interests of the Rokan Block," said Yudantoro.

Blogger Agus Purnomo in SKK Migas

Currently, together with the Special Task Force for Upstream Oil and Gas Implementation (SKK Migas), PHR has conducted intensive communication with CPI in order to accelerate the transition of contract documents. The documents in question, namely data from work partner contracts owned by CPI for the period 2017 to 2021, include whose contract period has expired but is still needed for the Rokan Block operation.

This contract document is necessary, considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Rokan block Work Area. Meanwhile, non-routine operations are carried out based on work plans and production targets determined by PHR.

"PHR will immediately prepare a contract for the Rokan block working area based on information from the existing operator, thus enabling PHR to prepare adequate work scope and technical specifications," said Yudantoro. The procurement of goods and services at PHR will be carried out according to company needs.

Kontan, Page-10, Saturday, Sept 12, 2020

Tangguh Project Increases Number of Workers

 

BP Berau Ltd as the operator of the Tangguh Field in West Papua will begin to increase the rate of construction of Tangguh Train 3 by increasing the number of workers in the field (the person onboard / PoB) from 6,300 PoB to 7,700 PoB. 

Tangguh Field West Papua

    This step is taken after the operator can keep Tangguh Field Covid-19 free and have emergency response readiness to maintain the progress of the project.

Blogger Agus Purnomo in SKK Migas

“SKK Migas received a report from BP Berau Ltd regarding the development of the Tangguh train-3 expansion project schedule. The success of the operator in keeping the project Covid-19 free is encouraging news. 

    This shows that the upstream oil and gas project can still be realized by implementing the Covid-19 health protocol and applying K3 standards at a high level, "said SKK Migas Head of Program and Communication Division Susana Kurniasih, Head of the Task Force.

Susana Kurniasih

The increase in the number of workers in the field was carried out after going through a series of evaluations. Due to this success, BP Berau Ltd as the operator plans to gradually increase the number of Tangguh train 3 project workers.

"We hope that this step is one of the efforts to accelerate the completion of the project, which was slowed down due to the Covid-19 pandemic," said Susana.

Previously, when the Covid-19 pandemic began to enter a number of regions in Indonesia at the end of February 2020, the upstream oil and gas industry significantly reduced activities in the field, as an effort to prevent the spread of the Covid-19 pandemic. 

    At that time the Tangguh project in West Papua had to reduce workers in the field, from 13,000 Person on Board (BOP) to around 6,300 BOP. The reduction of up to 50% of these workers is a medical recommendation so that a “keep your distance” scenario can be carried out in the field.

Susana added that starting to increase the number of project workers at Tangguh train 3 will be good news for the goods/service provider industry and the local community.

"The increase in the number of project workers will have a positive impact on the economy, create jobs and of course as a form of support for the upstream oil and gas industry to be able to maintain people's purchasing power during the Covid-19 outbreak," She said.

Tangguh train-3 is a national strategic project which when it is onstream will provide a significant additional national oil and gas production. This project will produce 3,000 BOPD of oil and 700 MMSCFD of gas. The investment value for the Tangguh train-3 project is estimated at the US $ 8.9 billion. 

    Meanwhile, until June 2020 the realization of the Tangguh train-3 project development for onshore was 83.27% of the target of 84.35% (rebaseline plan) and offshore development was 98.15% of the target of 99.39% (plan).

SKK Migas and KKKS continue to coordinate and seek innovations during the Covid-19 pandemic so that oil and gas production and lifting can remain optimal. The step in maintaining the Tangguh train-3 project and other upstream oil and gas projects is one way for SKK Migas to realize the production of 1 million barrels of oil and 12,000 MMSCFD of gas by 2030.

Investor Daily, Page-9, Saturday, Sept 12, 2020

World Oil and Gas Companies Interested in Checking Indonesia's Oil and Gas Potential

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that EOG Resources, one of the unconventional oil and gas companies from the United States, officially applied for membership in Indonesia's oil and gas data. By becoming a member, the company with its head office in Houston can see data on the national oil and gas potential.

Blogger Agus Purnomo in SKK Migas

"The success in attracting new investors to Indonesia shows that Indonesia's oil and gas potential is still considered very attractive," said SKK Migas Planning Deputy Jaffee Arizon Suardin.

He explained that SKK Migas' efforts to attract world-class potential investors to Indonesia began in 2019. At that time, his party held a roadshow to several countries to promote data on Indonesia's oil and gas potential, one of which was the United States.

"The results of the SKK Migas roadshow have been responded positively by EOG Resources, a company listed in the 186th rank of the Fortune 500 this year with a total oil production of 456 thousand barrels per day (bpd), NGL 134 thousand bpd, and gas 1,366 MMscfd," he explained. Jaffee.

Referring to the EOG page, last year, this oil and gas company recorded oil production of 166.6 million barrels, natural gas liquids (NGL), or liquefied petroleum gas (LPG) and the like 48.9 million barrels, and natural gas 499 billion cubic feet.

According to Jaffee, in July 2019, representatives of the EOG Resources team visited SKK Migas for two weeks to discuss in more detail the steps to be taken to decide on investment in Indonesia.

Until December, his party together with the Directorate General of Oil and Gas and the Center for Data and Information (Pusdatin) of the Ministry of Energy and Mineral Resources (ESDM) had conducted a brief regional review of non-conventional oil and gas.

"We found good initial indications regarding the potential for non-conventional oil and gas in Indonesia," he said.

Jaffee added EOG Resources' participation in Indonesia's oil and gas data membership is the next step in deciding investment in Indonesia.

"Of course, we hope that this good start will develop into future investment decisions. "With so many investors entering the upstream oil and gas sector, the opportunity for giant discoveries and development in order to increase production will be even greater," he said.

Indonesia has a total of 128 basins, of which only 19 basins have been produced and 109 other basins have not been explored. SKK Migas previously mapped ten potential giant discovery areas. 

    These ten areas are South Sumatra, North Sumatra, Central Sumatra, Tarakan Offshore, North East Java-Makassar Strait, Kutai Offshore, Buton Offshore, Northern Papua, Birds Body Papua, and Warim Papua.

Oil and gas exploration activities in Indonesia in recent years have been very quiet. Referring to data from the Ministry of Energy and Mineral Resources, investment realization for oil and gas exploration has not increased significantly. In 2013, investment realization for oil and gas exploration was recorded at the US $ 3.05 billion.

After that, the realization of this investment continued to fall to the US $ 2.6 billion in 2014, the US $ 970 million in 2015, US $ 916 million in 2016, and reached a low of US $ 567.55 in 2017. In 2018, investment realization for exploration oil and gas began to increase to the US $ 786.18 million.

Investor Daily, Page-8, Wednesday, Sept 9, 2020