BP Brings Additional Investment

    The upstream oil and gas industry received good news from the extension of the Tangguh cooperation contract for 20 years because it presents an additional investment commitment of up to US$4.6 billion.

    The extension of the Cooperation Contract (PSC) for the Tangguh block allows BP and its partners to develop the Tangguh Liquefied Natural Gas (LNG) project until 2055. The Tangguh PSC area itself includes Wiriagar, Berau, and Muturi in Bintuni Bay, West Papua.

    In the Tangguh LNG Project, BP acts as the operator with a 40.22% ownership stake. Then MI Berau BV 16.3%, CNOOC Muturi Ltd. 13.90%, Nippon Oil Exploration (Berau) Ltd. 12.23%, KG Berau Petroleum Ltd. 8.56%, KG Wiriagar Petroleum Ltd. 1.44%, and Indonesia Natural Gas Resources Muturi Inc. 7.35%.

CNOOC

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif asked BP to immediately complete the Tangguh Train 3 Project, which is one of the national strategic projects in the upstream oil and gas sector. Because natural gas is considered a commodity that has an important role in the energy transition period towards net zero emission in 2060. 

    The extension of the Tangguh Cooperation Contract (PSC) also makes the availability of LNG to meet domestic and export needs more secure.

    Arifin Tasrif said we believe that gas will have an important role in achieving this target. Indonesia has great potential to produce gas in the future, therefore the government asks contractors to work together and develop the resources," said Arifin Tasrif.

    According to him, the government will support all efforts made by Cooperation Contract Contractors (KKKS) to optimize domestic resources. This also makes the government more open to cooperation in the management of upstream oil and gas in the country. For information, the Tangguh Train 3 Project is projected to be able to go onstream in the first quarter of next year.

    The target is that the project will produce 700 million standard cubic feet per day (MMSCFD) of gas and 3,000 barrels of condensate per day. 

    The investment required for the Tangguh Train 3 Project is estimated at US$8.9 billion. The Tangguh LNG project started in 2009 and has shipped more than 1,450 cargoes from the two LNG production trains that are currently operating, with a production capacity of up to 7.6 million tonnes of LNG per year.

Blogger Agus Purnomo in SKK Migas

    Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that, in addition to providing certainty of gas supply, the extension of the Cooperation Contract (PSC) for the Tangguh block will also bring in an additional investment commitment of up to US$4.6 billion. In addition, it is also projected that the state will receive revenues of up to US$5.5 billion from 2035 to 2055.

"This contract extension also has a positive impact in the form of a contribution in driving the national and regional economies, as well as other multiplier effects," he said.

    According to him, the extension of the cooperation also reflects the government's commitment to continue to create a conducive investment climate, as well as provide certainty for investment activities in Indonesia. Moreover, Tangguh has been the largest gas producer in Indonesia, where around 20% of domestic gas production comes from the project. 

Anja-Isabel Dotzenrath

    Anja-Isabel Dotzenrath, BP Executive Vice President of Gas & Low Carbon Energy, said that the contract extension provides an opportunity for her party to continue the work that has been carried out together with the government and SKK Migas.

“This extension helps open up new opportunities for Tangguh's future,” said Anja-Isabel Dotzenrath.

    Anja-Isabel Dotzenrath said BP has a strong commitment to continuing long-term cooperation to meet energy needs in Indonesia.

"We look forward to further cooperation with Indonesia and our partners in the coming years," said Anja-Isabel Dotzenrath. 

Kathy Wu

    Meanwhile, BP Regional President Asia Pacific, Gas & Low Carbon Energy Kathy Wu said that the contract extension received by his party allows the company to continue accelerating domestic upstream oil and gas exploration activities.

"With the addition of our new blocks in Indonesia, this all shows our trust in the Government of Indonesia in continuing investment, and presenting various solutions to energy needs," said Kathy Wu.

    Apart from currently developing the Tangguh Train 3 project, BP and its partners have also started the Tangguh UCC Project which includes the development of the Ubadari Gas Field, enhanced gas recovery (EOR) through carbon capture, use, and storage (EGR/CCUS) in the Vorwata field, as well as onshore compression.

    Apart from the Tangguh LNG Project, BP also has interests in the Andaman II Block, as well as the Agung I and Agung II Blocks.

Gas needs

    On a separate occasion, the International Energy Agency (IEA) projects that gas power plants will still grow to replace the coal-based steam power plant (PLTU) in the net zero emission scenario.

    Until 2035, IEA predicts that gas will still be used to bridge the transition of global energy, especially when the transition from PLTU to new and renewable energy-based power plants (EBT). 

    In its research, the Reforminer Institute noted that the development of gas-based power plants has a number of advantages, such as capacity factor which is quite high and becomes one of the base load power plants, investment costs per megawatt (MW) for gas-based power plants are cheaper compared to the electric steam power plant (PLTU), geothermal power plant (PLTP), and Nuclear Power Plant (PLTN)

    Komaidi Notonegoro, Executive Director of the Reforminer Institute, said that oil and gas still have an important role in the Indonesian primary energy mix, and are projected to still be important up to 2050.

"Oil and gas shares in the Indonesian primary energy mix 2021 are around 51%, and in 2050 shares are projected to still around 44% of the total Indonesian primary energy consumption," he said.

    According to him, the National Energy General Plan (RUEN) also projects natural gas in the Indonesian primary energy mix in 2050 to be around 24%, the second largest after EBT. 

    From 2012-2021, the portion of gas utilization for domestic purposes increased by an average of around 1.50% per year.

    The industrial and fertilizer sector is recorded as a major contributor to increasing domestic natural gas consumption.

"The discovery of Indonesian oil and gas reserves in 2020-2021 was also dominated by natural gas, such as discoveries in Bronang-02, Wes EEL, Parang-02, Rembang-3B, and Wolai-02. 

    Candidates for the National Strategic Project of the Energy Sector 2020-2024 are also dominated and related to the use of natural gas, "he said.

    This makes natural gas have a more important role as a bridge in the implementation of fossil energy transitions to EBT. 

    Sugeng Suparwoto, Chairperson of Commission VII of the People's House of Representatives (DPR), said that oil and gas will still be an important sector of economic growth in Indonesia. For this reason, the government must think of ways to reduce emissions produced by fossil energy.

    He explained that the portion of EBT in the energy mix in 2050 was projected to be only 31%. That is, the remaining 69% will still be filled by fossil energy, fuel oil, coal, or natural gas.

"The world is also currently very dependent on fossil energy. This can be seen from OPEC+ which still produces around 100 million barrels of oil per day, "he said in an energy transition forum.

In an effort to reduce emissions from the oil and gas industry, the government can issue regulations related to the quality of fuel oil that is low in carbon and sulfur. That way, carbon emissions can still be reduced, without having to sacrifice the industry that has been a source of state revenue.

According to him, the upstream oil and gas industry must continue the exploration and exploitation of existing resources to ensure the meeting of community energy needs. 

    It's just that later the oil and gas produced should no longer become primary energy, but be processed into petrochemical derivative products.

    The reason is that Indonesia is still importing petrochemical products in very large quantities. During this time, only the fertilizer industry utilizes natural gas as raw material in the process of fertilizer production. 

    Another step that can be done is to optimize the use of natural gas as intermediate energy because the commodity is lower emissions. In addition, the use of natural gas can also reduce the import of liquefied petroleum gas (LPG) which has been burdening the state budget.

"The government must also be consistent in efforts to increase national oil and gas production, because until now there are still around 68 oil and gas basins that have not been managed, and most are natural gas," he said.

Bisnis Indonesia, Page-4,Monday, Dec 26, 2022

The government wants to accelerate the Masela Gas Project

    Commission VII of the House of Representatives (DPR) of the Republic of Indonesia summoned SKK Migas and Inpex Corporation in a closed Working Committee Meeting, Monday (December 12). One of the points discussed at the meeting was the acceleration of the Abadi Masela project.

the Abadi Masela project

    When met at the DPR Building, Inpex's management was reluctant to comment on the discussions at the meeting. The Council also cannot provide an overview regarding the preparations for the Masela project in the near term.

Blogger Agus Purnomo in SKK Migas

    Deputy for Development Exploration and Management of the SKK Migas Work Area, Benny Lubiantara, gave a brief description. One of the discussions discussed in the Working Committee is how to speed up the Masela project so that it starts immediately.

"The head of SKK Migas Dwi Soetjipto said that this project is taking place in parallel, so there is no waiting for more, so activities will begin immediately in early 2023," said Benny Lubiantara.

Shell

    While waiting for Shell replacement, which is processing the sale of its 35% participating interest, Benny explained, a number of other activities in the Masela Block are still taking place in parallel. One of them includes Carbon Capture Storage (CCS) and Carbon Capture Utilization and Storage (CCUS) technologies in the Plan of Development (PoD) plan.

"The study already exists, it must go forward," said Benny Lubiantara.

    Regarding the value of Shell's Participating Interest (PI) that is being bid by Pertamina, Benny could not comment. Benny said the PI valuation was based on a business-to-business (B2B) process between Shell and Pertamina.

    Head of SKK Migas Dwi Soetjipto hopes that in December 2022 the revision of the PoD which already includes the implementation of CCS/CCUS will be entered soon.

"Based on the results of a study regarding the CCS/CCUS facility that will be implemented in the Abadi Masela Block, it requires an investment of US$ 1.2 billion to US$ 1.3 billion," said Benny.

    Not long ago, BUMN/State-Owned Enterprise Deputy Minister Pahala Nugraha Mansury said that the due diligence process for Pertamina's takeover of Shell's 35% participating interest in the Masela Block could be completed in the first quarter of 2023. According to Nugraha Mansury, the due diligence process will be followed by the submission of a binding offer by Pertamina to be evaluated by Shell.

Kontan, Page-12, Tuesday, Dec 13, 2022

Petronas Interested in Working on the Masela Block

    The Special Task Force for Upstream Oil and Gas Activities (SKK Migas) stated that a Malaysian oil and gas company, Petronas, expressed interest in working on the Masela Block, replacing Shell, which had left the largest gas project in Indonesia.

Petronas

    Petronas is also interested in entering into cooperation with Pertamina in terms of replacing Shell if possible. This is the latest development regarding Shell," said Head of SKK Migas Dwi Soetjipto in a hearing with Commission VII.

The Masela Block

    Apart from Petronas, previously there were two companies that were known to be interested in replacing Shell in acquiring a 35% stake in the Masela Block, namely Pertamina and ExxonMobil. Dwi said Pertamina had opened the Masela Block data room this November. It is hoped that Pertamina can submit a Non-Binding Offer to Shell.

ExxonMobil

    The government is targeting that discussions on the acquisition of Shell's participating interest (PI) in the Masela Block by Pertamina can be completed this year. One of the main conditions for reaching an agreement is the certainty of PI's acquisition value. According to Dwi, Pertamina must find an agreement with Shell to get into the Masela project.

Shell

    According to Dwi, Shell already has a minimum value base that must be prepared by Pertamina. This value is the total funds that have been spent by the company while being Inpex's partner in Masela.

Blogger Agus Purnomo in SKK Migas

"Pertamina is negotiating with Shell. SKK Migas monitors and provides direction so that Shell sells at moderate prices. To keep the project going. We wrote to Shell to support the divestment. Around US$1.4 billion has been spent by Shell," Dwi said.

Inpex Corporation

    Meanwhile, for Pertamina, there is ExxonMobil which was also offered by Inpex to conduct the study. SKK Migas said Dwi hopes that there will be opportunities for cooperation between Pertamina and ExxonMobil to open again, instead of the scent of competition. However, it all comes back to the management of each company whether to continue the collaboration as it has been in the Cepu block.

"If all this time ExxonMobil is also conducting studies, it could be a potential collaboration with Pertamina. But we'll see now that each study has its results, whether we want to continue or not," said Dwi.

IDD Project

    Meanwhile, Dwi also stated that the Indonesia Deepwater Development (IDD) project is expected to start running in early 2023, due to the certainty that the replacement operator for PT Chevron Pacific Indonesia will be completed by the end of this year.

Chevron

“Chevron has decided to leave the IDD project. Now there is a potential replacement. IDD could run next year," said Dwi.

ENI

    According to information, an Italian oil and gas company, ENI, is rumored to be controlling 62% of Chevron Pacific Indonesia's (CPI) participating interest in the Indonesia Deepwater Development (IDD) Gas Project. The IDD project has the potential to produce up to 844 million standard cubic feet of gas per day (MMscfd) and 27,000 barrels of oil per day (BOPD). The plan is for the project to be targeted onstream in the fourth quarter of 2027.

Investor Daily, Page-4, Thursday, Nov 17, 2022

Petronas Becomes Pertamina's New Competitor in the Masela Block

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said that a new competitor in the takeover of Shell Upstream Overseas Ltd.'s 35% stake has decided to leave the Masela Block.

Petronas

    The presence of Petronas has increased the number of potential investors in the Masela Block. Because, previously, Pertamina-INA-Medco and ExxonMobil were reportedly interested in taking over Shell shares. Deputy Head of SKK Migas Fatar Yani Abdurrahman revealed that Petronas has just expressed its interest in replacing Shell in the Masela Block.

the Masela Block

"After someone made an offer, Petronas was interested in joining, but we are currently studying it. We will discuss this," said Fatar.

    Currently, Petronas is only waiting for the government's commitment. However, SKK Migas cannot confirm whether Petronas will enter with partners or alone. What is certain, "Petronas has expressed its interest in investing in this LNG project with a capacity of 9.5 million tons per year," said Fajar.

Blogger Agus Purnomo in SKK Migas

    SKK Migas previously targeted Pertamina to submit an offer to Shell for the acquisition of a 35% stake in the Masela Block this November.

    Until now, the filing of this interest has not been carried out. Pertamina's consortium is currently still being evaluated with various options.

    Potential replacement investors for Shell in the Masela Block must invest around US$ 1.4 billion if they are interested in taking over shell shares. The amount of this investment does not include the funding requirement of US$ 6.3 billion for the first five years of development as capital expenditure.

    In addition, with the addition of the Carbon Capture Utilization & Storage (CCUS) project to the Masela project, there is a potential for additional investment of around US$ 1.2 billion to US$ 1.4 billion.

    Fatar emphasized that learning from Shell's release in the Masela Project, SKK Migas is prepared to strengthen the existing provisions in the future oil and gas block Plan of Development (PoD).

sHell

    Fatar revealed that SKK Migas felt like it had been lied to by Shell leaving the Masela Block. Moreover, "When the POD, we provide incentives, but the conditions are poor. For example, until the commercial production is not allowed to leave the Masela Block," said Fatar.

    The Masela Block project is the first very large-scale project in Indonesia. This also makes the government happy. But unfortunately in the terms and conditions of the contract, there is no protection for the project so that investors don't just run away.

    So, in the future, SKK Migas is targeting regulations to provide protection so that investors do not leave the project until the commercial production stage. This provision applies to projects that receive incentives. As a result of Shell's escape, the construction and development of the Masela Block was delayed. Moreover, the release of management shares or Shell's participating interest requires approximately 18 months for a 35% stake in the Masela Block.

Kontan, Page-12, Wednesday, Nov 16, 2022

FRESH WIND FROM PETRONAS AND BP

 

    The national upstream oil and gas industry gets fresh air from the commitments of Petronas and BP in three of the four work areas offered by the government through the Ministry of Energy and Mineral Resources.

BP

    The inclusion of Petronas and BP in the Working Areas (WK) or oil and gas blocks North Ketapang, Agung I, and Agung II is considered as the success of the government is seeking to improve the investment climate in the country.

    Moshe Rizal, Executive Director of the Association of National Oil and Gas Companies (Aspermigas), said Petronas in the North Ketapang WK, and BP in the Agung I and Agung II WKs is a good thing. The reason is that the two companies are large National Oil Company (NOC) and International Oil Company (IOC).

Blogger Agus Purnomo in Petronas PC Ketapang 

"We hope like that, we will see the realization in the next three years," he said.

    Moshe also hopes that the government will continue to support oil and gas companies in realizing their investment in the country, especially when conducting exploration activities.

"The challenges that will be faced are both technical and non-technical, and the exploration stage is always the riskiest period."

    When announcing the winner of the direct bid bidding for the oil and gas Working Area phase II 2021, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji said that the terms and conditions offered by the government this time received a good response from the cooperation contract contractors or KKKS.

“We also received input from KKKS that the terms and conditions offered in this auction are very attractive, and their terms are solid. We can see that in Working Area with high risk, the split can be up to 50-50, and if the risk is reduced, the government's share will be bigger," he said.

    He said the government would seek to improve the investment climate in the national upstream oil and gas industry and offer 17 other Working Areas this year.

    To note, the government received a definite investment commitment of US$14.14 million from Petronas, BP, and Mitra Multi Karya in the auction. In addition, there is also a signature bonus of US $ 1.2 million obtained by the State.

Working Area Ketapang Block Petronas 

    In detail, Petronas through PC Ketapang II Ltd. will conduct a G&G study at WK North Ketapang with a budget of US$1 million, 3D seismic covering an area of ​​300 square kilometers worth US$6.39 million, multi-client uplift fee from 3D seismic covering an area of ​​​​262 square kilometers US$750,000, and a signature bonus of US$500,000

    In WK Agung I, BP through BP Exploration Indonesia Limited will conduct a G&G study with a budget of US$500,000, 2D seismic covering an area of ​​2,000 square kilometers worth US$2 million, and a signature bonus of US$100,000. As for WK Agung II, BP through BP West Papua I Limited is ready to conduct a G&G study worth US$500,000, 2D seismic covering an area of ​​2,000 square kilometers with a value of US$1 million, and a signature bonus of US$100,000.

    Then Mitra Multi Karya will do a workover of eight wells with a budget of US$2 million, and a signature bonus of US$500,000.

    Tutuka said that the investment commitments from the three companies were a positive signal for national upstream oil and gas investment in times of challenging global conditions.

Blogger Agus Purnomo in SKK Migas

FULL SUPPORT

    Head of SKK Migas Dwi Soetjipto ensured that his party will provide full support so that the management of the North Ketapang Working Areas (WK) ​​can run smoothly until new reserves are found.

    According to him, the election of Petronas as the manager of North Ketapang shows that Indonesia's upstream oil and gas investment is still attractive to world-class investors.

“Petronas is one of the largest oil and gas companies in the world. With the additional investment in Indonesia, hopefully, this will be able to attract other world-class investors to follow Petronas' footsteps."

    Petronas Executive Vice President and Chief Executive Officer of Upstream Adif Zulkifli said his party was very happy with the results of the auction. Moreover, Working Areas (WK) North Ketapang is located close to where the company discovered oil reserves last year.

"We will continue to strengthen our upstream oil and gas business to provide value and contribute to the development of the energy industry in Indonesia. As a progressive energy and solutions partner, Petronas is committed to providing Indonesia with a safe and reliable energy supply," he said.

    Separately, BP through its official statement stated that Working Areas (WK) Agung I and II are unexplored areas. The two Working Areas (WK) with very significant gas sources are close to the increasing demand for gas.

"The addition of Agung I and Agung II Blocks to our portfolio reflects our ongoing commitment to invest and grow our business in Indonesia," said BP Regional President Asia Pacific Nader Zaki.

Bisnis Indonesia, Page-4, Monday, March 21, 2022

SKK Migas Expects Onstream Schedule to Match POD

    The Abadi gas field project in the Masela Block is delayed in production in 2030. Meanwhile, the Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas still hopes that the onstream schedule will match the development plan.

Inpex Masela Ltd and Shell

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) asked Inpex Masela Ltd and Shell as the operator of the Masela Block to carry out the Masela Block Liquefied Natural Gas (LNG) investment in accordance with the approved Plant of Development (PoD). The Masela Block LNG project is agreed to be completed and start production by the end of 2027.

Blogger Agus Purnomo in SKK Migas

    The Deputy of Operations for the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas), Julius Wiratno stated that his party continues to push for the project to be completed in accordance with the approved PoD. SKK Migas also said that it had not yet received a revision proposal from Inpex.

Inpex

"SKK Migas to this day continues to push for implementation according to the approved PoD, for immediate production as soon as possible. We have not received a revision proposal from Inpex at all and we are still fighting for acceleration efforts," said Julius.

    Julius emphasized that the government through SKK Migas is still encouraging Inpex's investment in Masela, this must be realized immediately. Because some preparatory work has been and is being started, such as the approval of the Environmental and Impact Analysis (AMDAL), metocean surveys, and land acquisition.

Takayuki Ueda

    Previously, Inpex CEO, Takayuki Ueda explained, that Inpex is conducting comprehensive size studies such as the introduction of carbon capture, utilization, and storage facilities, known as CCUS.

the Masela Block LNG

    The CCUS installation is intended to make the Masela Block LNG project more environmentally friendly, but the project could be delayed until 2030.

"SKK Migas has asked Inpex to immediately revise the POD, if that is what is desired, for us the planning team, in particular, can immediately conduct a review and evaluation," explained Julius.

    As is known, currently Inpex Masela Ltd and Shell as the operator of the Masela Block are revising the PoD of the oil and gas working area that is included in the National Strategic Project (PSN). The PoD revision relates to the inclusion of CCUS. This is done so that the assets of the Masela Block in this case the Masela LNG can be said to be competitive because it has green energy requirements.

    The majority of Masela Block's participating shares are 65 percent owned by Inpex Masela. The rest is owned by Shell. But Shell has said it will leave the block. However, the plan failed to materialize because there were no investors who wanted to buy Shell shares.

    In addition to the Masela Block, SKK Migas also hopes that the Indonesia Deepwater Development (IDD) project located in the Kutai Basin, East Kalimantan, can be completed immediately and start production in the fourth quarter of 2025. The IDD project is a development project for five deep-sea gas fields that are carried out in an integrated manner to meet the gas needs of the domestic market and the Bontang LNG Plant. The IDD project has production reaching 844 MMscfd for natural gas and 27,000 barrels of oil per day (BOPD).

the IDD project Chevron

    In the IDD project, Chevron acts as the operator. The company controls 62% of the participating interest or interest (PI). The rest is controlled by ENI with a 20% stake and Sinopec Group 18%. However, the continuation of this mega project is still uncertain. Because, since 2020, Chevron declares to discontinue the IDD project.

ENI

"For this IDD project, the update now is that the operator Chevron Pacific Indonesia (CPI) is still looking for a replacement operator," said Julius.

DIFFICULT MISSION

    On the other hand, the government has targeted oil lifting of 1 million BOPD and gas of 12 BSCFD by 2030. However, this target is impossible to achieve without new large-scale oil and gas projects. Previously, the government through the Directorate General of Oil and Gas together with SKK Migas and cooperation contract contractors [KKKS] had identified the planned production profile of each KKKS and it was known that total oil production would reach 1 million BOPD in 2030.

    The government has also prepared several strategies to increase production, namely routine work programs such as infill drilling/step out in existing fields, and workover/well service. In addition, acceleration of the transformation of resources into production is also carried out, by accelerating new PoDs and pending PODs.

    An energy and oil economist from Trisakti University Pri Agung Rakhmanto said that without a new large-scale oil and gas project the oil lifting target of 1 million bopd would not be possible to achieve.

"To achieve the oil and gas production target of 12 MMscfd and 1 million BOPD, there needs to be a new project on a large scale," said Pri Agung.

    According to him, efforts to increase the production of existing oil and gas fields are not sufficient to achieve the government's ambitious targets.

“If it's EOR, we need EOR on a large-scale oil and gas field. The current EOR has just been done on a small scale. EOR and other efforts can only stop the rate of decline in production in existing fields so that it doesn't decline further," he explained.

    Pri Agung is of the view that this 1 million BOPD is not worthy of being called a target because there is no clarity on the details of the work program. For example, from which field the production target was produced.

    The Executive Director of the Reforminer Institute Komaidi Notonegoro also said the same thing. According to him, without finding large reserves, the target of 1 million BOPD is just wishful thinking.

"To be able to reach 1 million BOPD, it is calculated that additional production from large-scale oil and gas fields or the majority is generated from large-scale investments made by major International Oil Companies [IOCs]," said Komaidi.

Jambaran Tiung Biru in Central Java

    Currently, Indonesia has four giant oil and gas projects, namely, Jambaran Tiung Biru in Central Java, the Abadi Field in the Masela Block in the Arafura Sea, IDD in the Kutai Basin in East Kalimantan, and Tangguh Train 3 in Papua. Unfortunately, these projects are expected to be completed longer than the target set. The reason is, recently, the foreign oil and gas giant that manages this mega project has stated that it will leave Indonesia.

Bisnis Indonesia, Page-4, Wednesday, February 23, 2022

SKK Migas - KUFPEC Discovers New Oil and Gas Reserves in Natuna

 

    SKK Migas KUFPEC monitoringoil.com - Kuwaiti oil exploration company K.S.C.C. (KUFPEC) through a company operating in Indonesia, the Cooperation Contract Contractor (KKKS) KUFPEC Indonesia (Anambas) BV (KUFFPEC Indonesia) which has a contract with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), has discovered oil and gas reserves new. 

Blogger Agus Purnomo in SKK Migas

    This is based on the results of drill stem tests conducted at the Anambas-2X exploration well in the Anambas Block, Natuna Sea, off the coast of Indonesia.

    The block is operated by KUFPEC Indonesia (Anambas) B.V. (KUFPEC Indonesia), with KUFPEC Indonesia holding all 100% of participating rights. As part of the drilling program, KUFPEC Indonesia conducted five drill stem tests in Gabus Bawah, Intra Keras, and Arang Formation. 

KUFPEC

    This test resulted in a stable combined flow rate of 40 million cubic feet of natural gas (MMscfd) and 1,240 stb/d of condensate. The results of the well-deepening program also reflect the positive side of the well's original purpose and identify potential opportunities for further exploration in the deeper formations.

    This exciting discovery marks the first operational offshore exploration discovery for KUFPEC and demonstrates KUFPEC's growth and potential as an operator of offshore oil and gas projects in accordance with the KUFPEC 2040 strategy. 

    The well was drilled at a depth of 288 feet, using a jack-up rig to reach a total depth of 10,509 feet. SKK Migas Deputy for Planning Benny Lubiantara expressed his appreciation for the discovery of the Anambas-2X exploration drilling well operated by KUFFEC Indonesia.

“This discovery shows that the oil and gas potential in Indonesia is still promising. The discovery of oil and gas reserves by KUFFEC Indonesia is the second discovery of drilling results in 2022, after previously in January 2022, new oil and gas reserves were also found in the Mahakam block by other KKKS," said Benny in a release in Jakarta.

“The discovery of exploration wells by foreign companies from Kuwait shows that Indonesia's oil and gas potential is still attractive in the eyes of international investors. We hope that this discovery will encourage international oil companies (IOCs) to invest in Indonesia,” said Benny

Investor Daily, Page-9, Saturday, Feb 12, 2022

Pertamina Hulu East Kalimantan Gets Incentives from the Government

    PT Pertamina Hulu Kalimantan Timur (PHKT), a Cooperation Contract Contractor under the supervision of SKK Migas as well as part of the Pertamina Subholding Upstream Regional Kalimantan Zone 10, officially received fiscal incentive approval from the Government of Indonesia, through the Ministry of Energy and Mineral Resources (ESDM) on January 12, 2022.

Blogger Agus Purnomo in SKK Migas

    The provision of incentives to PHKT is part of the Government's strategy in order to achieve the national oil and gas production target of 1 million barrels of oil per day and 12 billion standard cubic feet of gas per day by 2030. 

    This incentive approval is given to the incentive proposal initiated by PHKT since 2020 which refers to the Minister of Energy and Mineral Resources No. 52 of 2017 concerning Gross Split Production Sharing Contracts taking into account the economics of the field in accordance with applicable regulations.

    Based on the approval letter from the Minister of Energy and Mineral Resources No. T-24/MG.04/MEM.M/2022 dated January 12, 2022, regarding the Approval of Addition of Split to the Cooperation Contract for the East Kalimantan & Attaka Working Area, PHKT gets incentives in the form of additional profit sharing/split.

    President Director of PT Pertamina Hulu Indonesia (PHI)-Regional Kalimantan, Chalid Said Salim, said that the provision of incentives is very important to encourage the continuity of oil and gas operations and the investment needed to increase the recovery of oil and gas reserves and resources in the East Kalimantan & Attaka WK.

“With this incentive, the existing and new field development plans can be continued. This incentive can support increasing reserves and maintaining PHKT production levels so that PHKT can continue to contribute to energy supply for Indonesia," he said.

    In 2021, PHKT recorded an oil production figure of 9.3 thousand barrels of oil per day (MBOPD) and gas production of 40.2 million standard cubic feet per day (MMSCFD). PHKT will continue to strive to improve performance, especially after receiving government incentives, in order to support the investment climate and national energy security.

Investor Daily, Page-9, Saturday, Feb 12, 2022