The Jambaran-Tiung Biru Project Must Be Completed This Year

 

    The government is encouraging the development of the Jambaran-Tiung Biru (JTB) Project to operate by the end of this year. This is because the project with an estimated production of 192 million standard cubic feet per day / MMscfd is already awaiting its gas supply. 

ESDM

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the Covid-19 pandemic caused obstacles in the completion of the JTB Project. However, given the importance of this project, his party hopes that this project can still be completed this year.

the JTB Project

"We have asked the management to catch up again so that this project can produce gas at the end of the year. We really hope that gas from JTB can be produced immediately, "he said.

    As scheduled, the projects that are included in the list of National Strategic Projects (PSN) are supposed to start operating in the third quarter of this year. However, the pandemic hindered the completion of the project.

PT Pertamina EP Cepu (PEPC)

    President Director of PT Pertamina EP Cepu (PEPC) Awang Lazuardi explained, even though the pandemic is still ongoing, his party continues to catch up with certain sectors by achieving more progress in other sectors. This is so that the overall project is still on target. Until now, the work on the JTB Project has reached more than 89%.

"Overall we still have a significant difference in progress, although there are some parts that have not arrived. However, we are optimistic that the on stream target will be achieved according to schedule, "he said.

    Currently, several production facilities at the JTB Project are increasingly complete. Some of them include the installation of high-tech processing pipes and tubes, to other supporting facilities such as dormitory buildings. There were obstacles to the process of fabricating tools and sending them from abroad.

    To overcome this, Pertamina EP Cepu (PEPC) increases the number of workers to complete jobs whose components are already available in the country. Previously, Deputy for Finance and Monetization of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Arief S Handoko said the JTB Project is one of three projects that will provide additional gas supply, mainly in East Java. This project is even the project that will generate the largest additional supply, reaching 192 MMscfd.

Blogger Agus Purnomo in SKK Migas

"The largest additional supply will be obtained from the JTB Project which we estimate will be on stream in the fourth quarter of 2021. This project can supply gas amounting to 192 MMscfd, which will be supplied not only to East Java but also to Central Java, "said Arief.

    The JTB project includes the construction of a gas processing facility / GPF and its supporting facilities, as well as the drilling of six development wells and one plug and abandonment well. With the optimization of the GPF design, the salable gas production from this project can be increased from 172 MMscfd to 192 MMscfd.

    This gas production will be channeled through the Gresik-Semarang transmission pipe owned by PT Pertamina Gas (Pertagas). Pertamina has signed the Jambaran-Tiung Biru gas sale and purchases agreement (PJBG) with PT PLN (Persero). Gas from the Jambaran-Tiung Biru project will be supplied to PLN by 100 MMscfd and the remaining 72 MMscfd for industries in Central and East Java.

    To date, the costs incurred to build the GPF are recorded at the US $ 974.44 million or 73.4% of the total approved budget (authorization for expenditure / AFE) of US $ 1.32 billion. Meanwhile, the number of workers involved in working on this project was 7,842 people.

Investor Daily, Page-10, Saturday, April 24, 2021

East Java Potentially Excess Gas Supply

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that East Java will have an excess gas supply of up to 200 million standard cubic feet per day / MMscfd in 2022-2025. This is after the completion of a number of gas projects in the region at the end of this year.

Blogger Agus Purnomo in SKK Migas

    Deputy of Finance and Monetization of SKK Migas, Arief S Handoko, said that at least three oil and gas projects in East Java will be completed by the end of this year, namely the Jambaran-Tiung Biru (JTB) Project, Sidayu and Bukit Tua Phase 2B owned by Petronas. 

Blogger Agus Purnomo in Petronas PC Ketapang II

    The three of them will increase the gas supply in East Java. With this potential gas supply, SKK Migas hopes that the gas user industry can optimize business deals fairly and stick to the provisions in the Minister of Energy and Mineral Resources Regulation Number 8 of 2020 and Minister of Energy and Mineral Resources Decree Number 89 of 2020 which regulates gas prices for certain industries.

"While gas prices from upstream are very economical, we hope that the government can encourage the growth of the gas user industry in East Java and Central Java so that this gas potential can be purchased so that it can drive the regional economy and create a bigger multiplier effect," said Arief.

    Referring to SKK Migas data, the additional supply from the JambaranTiung Biru, Sidayu, and Bukit Tua Phase 2B projects is estimated at 226.2 MMscfd. The Jambaran-Tiung Biru Field Unitization Project undertaken by PT Pertamina EP Cepu (PEPC) will produce gas up to 192 MMscfd. 

The Jambaran-Tiung Biru Field

    Meanwhile, the additional supply from the Sidayu Project is 4.2 MMscfd for gas and 7 thousand barrels per day (bpd) for oil, and Bukit Tua Phase 2B 30 MMscfd for gas and 12,500 bpd for oil.

"The largest additional supply will be obtained from the JTB Project which we estimate will be on stream in the fourth quarter of 2021. This project can supply gas amounting to 192 MMscfd, which will be supplied not only to East Java but also to Central Java, "said Arief.

    He explained that the Jambaran-Tiung Biru Project, which was included in the list of National Strategic Projects (PSN), was scheduled to start production last year. However, the Covid-19 pandemic last year caused delays in completing this project this year. Apart from the three projects, previously there was a West Pangkah Project operating.

"At the beginning of the year there was also the West Pangkah Petronas Project which increased gas supply from the Pangkah Block, so it can be said that the amount of gas supply in East Java for 2021 will be fulfilled," he explained.

    The West Pangkah project produced 23 MMscfd of gas and 2,200 bpd of oil. To increase the utilization of this gas supply, Arief continued, his party is also encouraging the completion of the Cirebon-Semarang pipeline in order to develop the gas market in Central Java. The reason is, currently, a Gresik-Semarang pipeline has been built that can carry gas from East Java to Central Java.

"In the future, we hope that the Cirebon-Semarang transmission pipeline can be built, so that with this gas pipeline, the excess gas supply in East Java will be channeled to support the fulfillment of gas needs for industries in Central Java," said Arief.

    In fact, referring to the Gas Balance, which was compiled in 2018, East Java is one of the areas projected to have a gas supply deficit. This projection refers to the second scenario in the balance sheet which estimates gas demand based on the previous year's consumption realization and economic growth targets. The gas deficit of 563.23 MMscfd in East Java-based on this scenario will occur in 2027.

Investor Daily, Page-10, Friday,  April 16, 2021

Instead of Manage Challenging Rokan Blocks

    The transfer of management of the Rokan Block from PT Chevron Pacific Indonesia to PT Pertamina (Persero) left a problem with the electricity supply. With crude oil production of 160,000 barrels per day, the Rokan Block requires an electricity supply of up to 400 megawatts and steam of 335,000 standard barrels per day. It is feared that the problem will affect oil production when the block in Riau was managed by Pertamina.

Blogger Agus Purnomo in SKK Migas

    According to Fatar Yani Abdurrahman, Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the electricity supply in the Rokan Block is the backbone of the block's production operations. 

    So far, the supply of electricity and steam has been managed by PT Mandau Cipta Tenaga Nusantara (MCTN), which has a contract with Chevron. The company operates a Gas and Steam Power Plant (PLTGU) with a capacity of 300 MW.

"SKK Migas knows that the plant is being tendered and sold to the highest bidder. We have also discussed with Chevron that the most reliable electricity manager in Indonesia is only PT Perusahaan Listrik Negara (Persero). We'll just wait for the solution, "said Fatar in the webinar" Safeguarding State Assets and Sustainability of Electricity Supply in the Rokan Block ".

the Rokan Block by Chevron

    The PLTGU in the Rokan Block has become a polemic, regarding its status as a state asset or not a state asset, in a cooperation contract scheme based on cost recovery.

    John Simamora, Director of Strategic Planning and Business Development at PT Pertamina Hulu Energi (PHE), said that his party had agreed to hand over the electricity supply in the Rokan Block to PLN. 

PT Perusahaan Listrik Negara (Persero)

    However, if PLN is not ready to supply electricity until the limit of handing over management of the Rokan Block to Pertamina, another option is to extend the power supply contract with MCTN.

    Executive Vice President of Corporate Communications and PLN CSR Agung Murdifi, through an official statement, stated that PLN is very ready to meet the electricity needs of the Rokan Block. The Sumatra electricity system has a power reserve of 2,800 MW.

Kompas, Page-10, Friday,  April 9, 2021

Chevron Electric Tenders Too High

 

    PT PLN (Persero) asked Chevron to conduct an open tender for the Rokan Block electric generator, including by not setting an auction value of US $ 300 million because it was considered too high.

the Rokan Block

    Director of Commerce and Customer Management of PLN, Bob Saril, said that the business to business process related to the auction of the 300 megawatt (MW) power plant must be based on justice. According to him, the price set by Chevron is too high, so the pricing for the assets must be based on a fair assessment.

"The purchase value alone was US $ 190 million 20 years ago. We want to sell US $ 300 million, ”he said in the webinar on Safeguarding State Assets and the Sustainability of Electricity Supply in the Rokan Block.

the Rokan Block Working Area

    Bob also regretted that Chevron's move to hold the tender in the United States had prevented the process from being open. PLN is working with a number of related institutions to calculate the fair value of the asset which Chevron owns 95% of its shares.

“The tender process must be carried out fairly, but it seems that the tender process is not open. Intentionally covered up to find the highest value "he said.

    According to him, in the authority to supply electricity in the Rokan Block, PLN refers to the Minister of Energy and Mineral Resources Regulation No. 28 of 2021 and the Minister of Energy and Mineral Resources Regulation No. 30 of 2018. The Rokan Block area is part of the PLN electricity sales business area. For this reason, the supply of electricity and steam in the Rokan Block must be handed over to PLN as the party responsible for generating electricity. Other business entities can support PLN for other supporting services in carrying out these national duties.

PT PLN (Persero)

"For PLN, electrifying the Rokan Block is not about profit but by carrying out national duties," he said.

    On the other hand, PT Pertamina (Persero) will also prepare options if the acquisition process for Chevron's power plant in the Rokan Block cannot be completed during the transition period of management transfer.

    Pertamina's Upstream Subholding Director of Strategic Planning and Business Development John Simamora said that his party had partnered with PLN by signing a memorandum of understanding between the two parties to ensure the supply of electricity in the Rokan Block. 

    However, if the process of acquiring Chevron's power plant which is operated by PT Mandau Cipta Tenaga Nusantara has not been completed by the time of transfer of management on August 9, 2021, Pertamina must take steps so that the production process is not disrupted.

"We prioritize production, so the best step is if the latest PLN data cannot be taken over on August 9, we will of course mirror the contract until PLN succeeds in completing the process that is currently happening," he said.

    With regard to the selling price of electricity, John said that the tariff that PLN will apply will not be much different from the current price. In fact, it is possible that PLN's price will be more competitive.

"Because it could be that the actual costs so far shouldn't have been that much."

Blogger Agus Purnomo in SKK Migas

    Seeing the problems in the Rokan Block, Deputy Head of SKK Migas Fatar Yani Abdurahman said the main priority during the transfer of management of the block was to maintain production. 

    According to him, the acquisition process takes a long time because it could be a year to two years. For this reason, there are a number of options so that the demand for electricity and steam in the Rokan Block can be guaranteed during the operator shift period.

    Several viable options include mirroring contracts or forming a consortium with the old operator. Apart from that, the state could also ask for these assets to be transferred to PT Pertamina Hulu Rokan (PHR) or a regionally owned business entity.

    Furthermore, Fatar added that as of March 2021, out of the target of drilling 192 wells included in Chevron's investment, the realization had reached 28 wells. Meanwhile, for the workover activities of the target of 10 activities, 3 workovers have been realized. Reflecting on the process of transferring management of the Mahakam Block, SKK Migas prepares anticipatory steps to maintain production rates in the Rokan Block.

    In this regard, SKK Migas Operations Deputy Julius Wiratno said that his party would be quicker to start drilling activities so that they could reduce the rate of decline in production when the confusion shifted to PT Pertamina Hulu Rokan (PHR). Development drilling is also ongoing in addition to the use of Enhanced Oil Recovery (EOR).

Bisnis Indonesia, Page-3, Friday,  April 9, 2021

To Boost Oil and Gas Reserves, BP Adds Investment of US $ 4 Billion

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that BP Indonesia will increase its investment by the US $ 4 billion. One of these funds will be used to increase the oil and gas reserves of the Tangguh Liquefied Natural Gas / LNG) project.

Blogger Agus Purnomo in SKK Migas

    Head of SKK Migas Dwi Soetjipto said BP conveyed this additional investment plan when meeting SKK Migas management last week. BP plans to develop the Ubadari Field in the Tangguh LNG Project and work on the Carbon Capture, Utilization, and Storage (CCUS) Project.

BP

"We are happy because it means that the efforts made by SKK Migas and the government to increase investment have yielded results," he said.

    He explained that the Ubadari Field development was intended to increase the proven reserves of the Tangguh LNG Project. Gas production from this field will then be used to support the operations of the Tangguh Train 1, 2, and 3 LNG Train. If this additional gas production is realized, BP can expand its LNG market.

"The Ubadari field was discovered in 1997, and exploration drilling began in 2017," said Dwi.

    According to him, BP will also work on the CCUS project at Tangguh. CCUS is a technology that can capture carbon dioxide (CO2) which is released into the atmosphere so that it can reduce carbon emissions. The implementation of CCUS in the Tangguh Project will support Indonesia's efforts to reduce carbon emissions by 29% to 41% by 2030 under the Paris Agreement. Implementing CCUS will cut carbon emissions by around 45%.

the Tangguh Project Papua

"Apart from making a major contribution to the government's commitment to protecting the environment, [CCUS Project] will also increase production. Another advantage, this activity will also keep the Tangguh LNG Plant competitive, especially in dealing with buyer countries that are sensitive to environmental issues, "Dwi explained.

    To realize the investment plan, BP will immediately discuss with his party the technical and economic issues of the project. This discussion is expected to immediately agree on the preparation of the second Plan of Development / POD which will be used as the basis for the Ubadari Fieldwork.

    Dwi hopes that BP's steps to increase this investment will soon be followed by other contractors. Moreover, entering March 2021, world oil prices will improve at the level of US $ 60-70 per barrel. The increase in global oil prices was faster than analysts had predicted.

"The world oil price situation is recovering faster and in March 2021 it has even exceeded the average world oil price in 2019, it is hoped that this will encourage KKKS (cooperation contract contractors) to increase exploration activities outside of the agreed program in the work plan and budget ( work, program, and budget / WP & B) 2021, "said Dwi.

    Currently, BP is also working on Train-3 at the Tangguh LNG Plant, worth US $ 8.9 billion. Referring to SKK Migas data, up to the third quarter of last year, work on the project's onshore facilities had reached 88.27% and offshore facilities 98.27%. 

    The Tangguh Train-3 project is targeted to start operating in the last quarter of this year with an estimated peak gas production of 700 million standard cubic feet per day / MMscfd and 3 thousand barrels of oil per day (BPD). The completion of Train-3 will increase the capacity of the Tangguh LNG Plant to 11.4 million tons per year.

    Last year, BP managed to record gas production of 1,074 MMscfd and is targeted to increase to 1,200 MMscfd this year. BP holds a 37.16% stake in the Tangguh Project. Other Tangguh contract partners are MI Berau B.V. (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau / KG Wiriagar (10.00%), Indonesia Natural Gas Resources Muturi Inc. (7.35%), and Talisman Wiriagar Overseas Ltd. (3.06%).

Investor Daily, Page-10, Monday,  March 22, 2021

Kepodang Field supplies gas again

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Kepodang Field, Muriah Block, returned to flow gas since last February. This gas supply is around 20 million standard cubic feet per day / Mmscfd. 

Blogger Agus Purnomo in SKK Migas

    SKK Migas Operations Deputy Julius Wiratno said that the gas supply from the Kepodang Field has been flowing since some time ago to PLTGU Tambaklorok owned by PT PLN (Persero).

Kepodang Field

"We have returned gas from the Kepodang Field some time ago at a rate of around 15-20 MMscfd," he said.

    This was also confirmed by the Regional Business Director for Java, Madura, and Bali PLN Haryanto WS.

"It is true, the gas from the Kepodang Field has been flowing again," he said.

    Kepodang Field, Blok Muriah started producing 56 MMscfd of gas for the first time at the end of August 2015. This gas supply is supplied by the Kalimantan-Java (Kalija) I pipeline managed by PT Kalimantan Jawa Gas (KJG) to the Tambak Lorok in Semarang Center Java Steam Gas Power Plant (PLTGU) belongs to PLN. 

Blogger Agus Purnomo In Petronas PC Ketapang II

    However, in July 2017, Petronas stated that the Kepodang Field was in force majeure because reserves did not match predictions.

    This field gas production was then stopped on September 23, 2019. PT Saka Energi Indonesia then received permission from SKK Migas to restart gas production in the Kepodang Field.

    In the future, his party cannot confirm whether the gas production at Kepodang Field can be increased. The reason is that the field development plan is still being discussed by Saka Energi.

"Regarding the next development plan, we are still evaluating it by considering Saka's potential," he said.

    Director of Strategy and Business Development, Syahrial Mukhtar, once revealed that the Kepodang Field has the potential to produce natural gas on average around 15 billion British thermal units per day / BBTUD for 37 months since the first gas flow (gas in).

    This supply is planned to be channeled to PLTGU Tambak Lorok in Semarang and industrial customers in Central Java with a total volume of around 10-20 Mmscfd. PGN has been involved in managing the Kepodang Field, Muriah Block from the start through Saka Energi Muriah Limited (SEML) with a 20% PI ownership.

Blogger Agus Purnomo in PGN Saka Energi Muriah Limited

    However, Petronas Carigali Muriah Limited (PCML) and SEML have signed a legal document for the transfer of Petronas' participating interest or Deed of Assignment (DoA) participating interest shares at the end of January. Thus, now SEML holds 100% participating rights in the Muriah Block.

Investor Daily, Page-9, Saturday,  March 20, 2021

Two Upstream Oil and Gas Projects Will Soon Onstream

    The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas stated that two projects will start producing in March and April 2021.

    Deputy for Operations of SKK Migas Julius Wiratno said that at the end of March 2021 there would be additional projects to complement domestic crude oil production and the Belato field.

Blogger Agus Purnomo In SKK Migas

    The project is being carried out by the cooperation contract contractor Belida Sele Raya Merangin Dua in Jambi, South Sumatra.

“One well added and a simple tie-in with a flowline. The production is around 500-800 barrels of oil per day, ”he said.

    He emphasized that there are projects that will increase domestic production very large. At the end of April 2021, SKK Migas targets the East Sepinggan Merakes project to be onstream. The project operated by Eni East Sepinggan ltd. It is targeted to increase domestic gas production by around 350 MMscfd-400 MMscfd. The project started in 2019 with an investment of US $ 1.3 billion.

Eni

    The project was delayed last year due to the Covid-19 pandemic. The main obstacle to working on the project was restrictions on the movement of goods and human resources. Later, the gas produced from the Merakes field will be flowed to the Bontang LNG refinery to fulfill existing market commitments.

the Merakes field

    Throughout 2021, SKK Migas targets as many as 12 upstream oil and gas projects to operate. That number is an increase of one project compared to last year's target of 11 projects.

"The project value is the US $ 354 million and the potential for additional oil production is 27,000 barrels of oil per day and gas 492 MMscfd," said Julius.

    PT Perusahaan Gas Negara Tbk. (PGN) will build a pipeline interconnection connecting the South Sumatra West Java transmission pipeline with a length of 1,000 km to the West Java Area transmission pipeline with a length of 525 km.

    PGN's Director of Infrastructure and Technology Redy Ferryanto said that through the integration of the transmission pipe, gas from the Sumbagtengsel gas field in the SSJW I-Bojonegara-Cikande-Bitung pipeline will be connected to Bitung Station on a WJA pipe with a pipe size of 24 inches.

    Work on the interconnection of the 1.4 km pipeline will start in March 2021 and is targeted to be completed in the fourth quarter of 2021.

"Bitung Station will supply gas from SSWJ with a maximum capacity of approximately 165 BBtud for the gas needs of Pupuk Kujang Cikampek [PKC] and the Balongan Refinery Unit, as well as a source of supply to anticipate the natural decline in gas supply in the western Java production field," he said.

 Bisnis Indonesia, Page-4, Friday,  March 19, 2021

Gas Supply from Kepodang Field Has Been Flowing

 

    Gas distribution from Saka Energi Muriah Ltd (SEML) 's Kepodang Field to meet the gas needs of the Tambak Lorok Power Plant in Central Java Province has started in February 2021. Acting Head of Program and Communication Division of SKK Oil and Gas (SKK Migas) Susana Kurniasih revealed the distribution gas that was previously delayed has been resumed.

Blogger Agus Purnomo in SKK Migas

"The flow has started since February, to be precise February 19, 2021," said Susana.

    Susana continued that the gas distribution volume for the Tambak Lorok Semarang Gas Power Plant (PLTG) is around 8 billion British Thermal Units per Day (BBTUD) to 10 BBTUD. SKK Migas Operations Deputy Julius Wiratno confirmed that the distribution of gas from the Kepodang Field has been carried out.

"Everything is channeled to PLN according to production which is only about 20 MMSCFD," explained Julius Wiratno.

Blogger Agus Purnomo in Petronas Carigali 

    The Muriah Operatorship has shifted from Petronas Carigali Muriah Ltd (PCML) to Saka Energi Muriah Limited (SEML). After the legal document for the transfer of the participating interest or Deed of Assignment (DoA) was signed by the two contractors at the end of January last year. 

Kepodang Field

    Kepodang Field is part of the Muriah Work Area, which is located off the coast of East Java. This field started producing natural gas for the first time of 56 million cubic feet per day (MMSCFD) at the end of August 2015.

Kontan, Page-13, Wednesday,  March 17, 2021

Chevron Delivers Rokan Block Data to the Government

 

    Ahead of the transfer of management, PT Chevron Pacific Indonesia (CPI) as the current operator of the Rokan Block has completed a large number of asset data collection and submitted production, exploration, and operational activity support data to the Government of Indonesia through the Special Task Force for Upstream Oil and Gas Business Activities. (SKK Migas). Chevron has also started sharing this data with PT Pertamina Hulu Rokan (PHR) as the next Rokan Block operator.

PT Chevron Pacific Indonesia (CPI)

"Our company is committed to carrying out the transition process of the Rokan Block in a safe, reliable, and smooth manner so that this block continues to provide optimal benefits for the country and the people of Indonesia. 

    In the future, we hope that the process of transferring the management of the Rokan Block can become one of the points of reference for the transfer of other oil and gas working areas in Indonesia, "said PT CPI's Corporate Communication Manager Sonitha Poernomo.

Sonitha Poernomo

    From August 2020 until now, PT CPI has submitted all data included in the termination checklist to SKK Migas. The data includes those related to geology and geophysics, licensing, standard operating procedures (SOP), production facilities, land, goods and services contracts, human resources, and community development programs. 

Blogger Agus Purnomo in SKK Migas

    Chevron has completed submitting the data ahead of schedule to support a smooth transition process. Chevron also coordinates intensively with SKK Migas and PHR to discuss various technical aspects of the transition process. Chevron is also trying to maintain the Rokan Block oil and gas production.

"Last year we were still able to meet the production target set by the Government," said Sonitha.

    In addition, Chevron has also started an incremental drilling program at the end of December 2020 in accordance with the Heads of Agreement (HoA) with SKK Migas which was signed in September last year.

the Rokan Block

"The HOA is critical to slowing down the rate of decline in natural production before the end of the Rokan Block management transfer period and will continue to meet Indonesia's energy needs," said Sonitha.

    President Director of PT Pertamina Hulu Energi (PHE) Budiman Parhusip is committed to transferring employment to Chevron workers in the Rokan Block with conditions that have been mutually agreed upon with related parties. In addition, his party has also collaborated with several universities in Riau, including for Social and Environmental Responsibility (TJSL) activities.

    The TJSL program will be prioritized to improve the independence of the Riau people in the fields of education, health, economy, and environmental preservation. Planning for the TJSL program also involves local governments.

"As for the Local Business Development (LBD) program which is currently being built and implemented by the CPI, it will first be discussed further.

    Coordination with CPI is needed to obtain 260 LDB contract schemes and data before the socialization is carried out, "said Budiman.

Investor Daily, Page-10, Tuesday,  March 16, 2021

The Government and DPR Guard over Management of the Rokan Block

 

    The government together with the House of Representatives (DPR) are closely monitoring the process of transitioning the Rokan Block from PT Chevron Pacific Indonesia (CPI) to PT Pertamina (Persero) in August 2021. Management of one of the largest oil blocks in Indonesia is expected to maintain production and provide great benefits. for the people of Riau and Indonesia in general.

PT Chevron Pacific Indonesia (CPI)

    The Director-General of Oil and Gas, Tutuka Ariadji, expressed his support for the management transfer process facilitated by the Upstream Oil and Gas Special Task Force (SKK Migas) in accordance with the prevailing regulations.

Blogger Agus Purnomo In SKK Migas

"I hope that the Rokan Block production can be maintained, even increased. "We have identified other potentials in the Rokan Block that have not been developed by PT CPI and are a hope for an increase in oil and gas production in the future," said Tutuka before visiting the Minas Field at Balai Serindit, Pekanbaru City.

    Commission VII in the field of energy, the House of Representatives (DPR) Alex Noerdin, who leads the Oil and Gas Working Committee between the Government and the DPR, emphasized that the transfer of management is proceeding smoothly.

"God willing, the transfer of management of the Rokan Block will run smoothly, and most importantly it will provide great benefits for the people of Riau and this republic," said Alex.

    With this transfer of management, it is hoped that it can increase regional income and the standard of living of the community. Alex also asked the Riau Regional Government to be involved in the Rokan Block Management Transfer Team. 

    Riau Governor Syamsuar hopes that oil and gas production from the Rokan Block can be maximized because this regional income is very dependent on oil and gas revenue sharing.

"For example, the oil and gas revenue sharing is modest, we are in trouble. Meanwhile, on the other hand, the development of oil and gas infrastructure, such as roads which are the responsibility of the provincial government, has not been completed, "he said.

    For this reason, the Riau Regional Government strongly supports the smooth management of the Rokan Block and is committed to facilitating and maintaining a safe and conducive situation in the transition to Pertamina. Syamsuar stated the readiness of BUMD and local companies in business-to-business cooperation and as vendors or contractors in all sectors, both operators and supporters.

"We also emphasize on PHR to conduct information disclosure for Pertamina's workforce needs," he said.

    He also emphasized that the Riau Regional Government is ready to help facilitate licensing during this transition of management transfer. Deputy for Planning of SKK Migas Jaffe Suardin explained, to hold back the decline rate of oil and gas production in the Rokan Block, drilling investment has been carried out since January 2021. 

    The Rokan Block definite work commitment for 2021-2026 is US $ 500,000,000, consisting of an exploration program of US $ 142.3 million and the exploitation program (EOR) of US $ 357.7 million. The current progress of managing the Rokan Block related to technical and operational data migration has reached 80%.

the Rokan Block

    Meanwhile, the Chemical EOR has reached 50%, where CPI and PHR continue to work together in accelerating data transfer, conversion models, solving issue surfactants, and reinstatement SFT-2 facilities. For contract management, the progress has reached 60% where 236 of the total 393 existing contracts have been mirrored. Procurement of rig and material for 115 wells reached 100%, while 77 wells reached 10%.

PHR

    Regarding employment, 70% has been completed where an agreement has been reached for the transfer of employees between PT CPI and PHR. PHR will also continue its social and environmental responsibility programs. This program is prioritized to increase the independence of the Riau people in the fields of education, economy, and environmental conservation. Program planning will involve local governments.

Investor Daily, Page-10, Monday,  March 15, 2021

113 Rokan Block Licensing Completion Needs Local Government Support

 

    PT Pertamina Hulu Rokan (PHR) must complete 113 permits as part of the transfer of management of the Rokan Block from PT Chevron Pacific Indonesia (CPI). Support from the local government is needed to complete this permit before the transfer of management occurs on August 9, 2021.

PT Chevron Pacific Indonesia

    Head of the Formality Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Didik Sasono Setyadi expects full support from the local government in the process of licensing over the management of the Rokan Block. 

Blogger Agus Purnomo in SKK Migas

    This is because if the transition to management and operation of this block goes well, it will have a positive impact, especially for state finances. He hopes that the management transfer permit process will run smoothly and operations will not be disrupted.

"The smooth operation of the Rokan is very beneficial for state finances. We all as government officials have the responsibility to carry out the interests of the state, "he said.

Temporary officials

Head of SKK Migas Representative of North Sumatra, Haryanto Syafri, added that all parties related to the transfer of management permit process must have the same perception. This is because operations in the Rokan Block cannot stop.

"And we will continue to comply with all rules and regulations," he said.

    Permits processing will begin to be processed by fulfilling all administrative requirements and are expected to take effect starting August 9, 2021. The permits currently managed by Chevon Pacific Indonesia can still be used until their expiry date before being renewed by Pertamina Hulu Rokan. 

    Head of the Riau Province Investment and One-Stop Integrated Service (DPMPTSP) Helmi D revealed that the Riau Provincial Government (Pemprov) strongly supports and appreciates PHR activities. On the other hand, PHR is asked to continue to communicate effectively in the context of harmonizing licensing.

"So we, together with the district and city governments, will accelerate how this function transfer and licensing changes can be carried out properly, so that later on August 9 there will be no obstacles," said Helmi.

    Meanwhile, Regional Secretary Kampar Yusri will carry out parallelization of licensing with the Riau Provincial Government.

"Because the Provincial Government and the Kampar Regency Government are one roof, if the province has given a sign, the regency will just follow suit," he said.

Investor Daily, Page-10, Monday,  March 8, 2021