Shell is fleeing from the Masela Block

Head of SKK Migas Admits Poor Oil and Gas Condition.

Royal Dutch Shell Plc. (Shell) left the Masela Block Abadi Gas Project. Where currently Inpex Corporation (Inpex) as the largest Shell holder of the block is looking for a replacement for Shell.

"That's right (flee). Inpex is looking for a replacement," explained SKK Migas Deputy of Operations Julius Wiratno.

the Masela Block

Julius explained that the reason for Shell's flee from the Masela Block was because of the cash flow conditions affected by the co-19 pandemic situation. Shell decided to focus on other projects that were taking place in Indonesia. 

sHell

    Just so you know, Shell has a participation stake in the Masela Block of 35 percent and 65 percent by Inpex Corporation. Other than that. The Regional Government also confirmed that they would receive a 10 percent share of participating shares.

"In some other projects in other countries, it is not going well or not going well so that the company's cash flow is not good. They focus first on several projects that have already taken place," explained Julius.

He continued, currently, both Inpex Corporation and Shell are continuing discussions on options for taking full participation rights by Inpex. In addition, the option to search for new partners by Inpex also appears. Previous. 

      

Dwi Soetjipto

    The Head of SKK Migas, Dwi Soetjipto, mentioned that the condition of the LNG business that is currently in decline has indeed made some oil and gas companies worry about the project implementation. Including for the Masela Block.

"Currently the oil and gas industry is facing serious problems (including) LNG prices. "There is a fear of project owners like Masela project execution going forward," he said a few days ago.

Julius explained, it is not impossible that the project implementation time will increase. But he ensured, Inpex was committed to completing the project on time. The Masela Block is targeted to be streamlined in 2027.

The long road

The news about Shell's flee from the project, whose investment value reached 20 billion US dollars, is not new. Previously, in mid-May 2019 ago. Nevertheless, both parties continue to work together on the Masela Project. On the other hand, the Masela Project is also being faced with a number of works such as land acquisition and product buyer search.

The journey of the Masela Block liquefied natural gas (LNG) jumbo refinery project in the Tanimbar Islands in Maluku Province is still long. The Masela Block is targeted to produce 421 million cubic feet per day (mmscfd) of gas and 8,400 barrels of oil per day. 

    In addition to being constrained by land issues, Inpex Corporation and Shell Indonesia as the operator have not yet succeeded in finding potential buyers of the liquefied natural gas product. Just so you know, previously Inpex Masela Ltd had entered into an MoU of buying and selling gas from the Abadi LNG Project.

PT Perusahaan Listrik Negara (Persero)

The Masela gas production was purchased by PT Perusahaan Listrik Negara (Persero) and PT Pupuk Indonesia (Persero) in February. 

PT Pupuk Indonesia (Persero)

    The memorandum of understanding was intended to start discussions on sales and purchases to supply LNG gas to gas power plants operated by PLN and natural gas at 150 million standard cubic feet per day (mmscfd) for the co-production refinery to be built by PT Pupuk Indonesia. SKK Migas targets that the buyer search process is expected to be completed in 2021.

Surya, Page-7, Monday, July 6, 2020

THE MORE WEIGHT THE MASELA PROJECT

The Abadi Field development project, the Masela Block, located in the Arafuru Sea, Maluku is considered to be getting heavier. In addition to the uncertainty of buyers from the oil and gas block, liquid gas / LNG market conditions are also still difficult to predict.

the Masela Block

Currently, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is reviewing the continuation of the Masela Block development project.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said that the price of LNG which fell in the range of US $ 2 per MMBtu greatly affected the economics of the Masela Block project. According to him, the low price of LNG was influenced by the Covid-19 pandemic which hit almost all countries in the world, thus making demand is reduced.

"This is the fear of the project owner as in the Masela Block, project execution going forward," he said.

Dwi revealed, not a few Cooperation Contract contractors (KKKS) submitted a revised work plan this year, because they had to face a very difficult time.

SKK Migas Deputy for Operations Julius Wiratno added by looking at the current conditions, it was possible that the Masela project would be delayed. Julius had revealed that Shell Upstream Overseas Ltd. (Shell) decided to go out and the project, because of cash flow problems due to projects in other countries are stunted.

Inpex Corporation

"Inpex did not step down, which Shell resigned as a partner. All Inpex will be taken over or currently looking for potential partners, "he said.

However, later the statement was corrected.

"Until today Shell hasn't left yet, it's still a B to B discussion, negotiation. The project must continue even if it is limping, "he said.

When it was confirmed by Bisnis Indonesia, both Shell and Inpex management was reluctant to comment on the news of Shell's withdrawal in the project. Meanwhile, Shell originally held 35% of the share of participation in the project. The rest is held by Inpex and regionally-owned enterprises (BUMD) by 10%.

The Trisakti University Teaching Staff Pri Agung Rakhmanto assessed that if it was true that Shell resigned as a strategic partner in the project, the development of the Masela Block project would certainly not be easy. According to him, partner factors in the development of the Masela Block project added complexity to existing problems, such as certainty of gas buyers and Masela's production output. 

On the other hand, he said, the condition of the global LNG market in the next 5 years is projected to also be in an oversupply condition with low prices. So the cost and economic development of the Masela Block will not necessarily be competitive to develop existing fields, "he said.

Inpex Corporation and Shell Upstream Overseas Ltd.

Based on the records, Inpex Corporation and Shell Upstream Overseas Ltd. (Shell) previously signed a cost recovery profit-sharing amendment contract, including an additional 7 years of allocation and extension of the Abadi LNG project with SKK Migas on October 11, 2019.

Bisnis Indonesia, Page-4, Monday, July 6, 2020

Shell Flee the Masela Block Project

SKK Migas: The reason Shell withdrew from the Masela Block due to the financial condition exposed to the corona

The coronavirus pandemic effect (Covid-19) hit many industrial and business sectors globally, also in the country. As a result of the outbreak, Royal Dutch Shell Plc (Shell) decided to leave the Masela Block Abadi Gas Project, Maluku Province. Currently, lnpex Corporation (lnpex) as the largest shareholder in the block is looking for a replacement for Shell.

lnpex Corporation (lnpex)

"Yes, that's right (Shell is retiring). Inpex is looking for a replacement," said Deputy of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Julius Wiratno.

the Masela Block

According to him, the reason for Shell's withdrawal from the Masela Block development project was because of the cash flow conditions that were affected by the Covid-19 pandemic situation. Shell decided to focus on other projects that were taking place in Indonesia. 

Royal Dutch Shell Plc (Shell)

    In the Masela Block, Shell has a 35% stake, while Inpex Corporation 65%. Later, the local government will receive a 10% share of participation taken from the ownership of Shell and lnpex.

"In a number of projects in other countries, it is also lacking or not going well so that the company's cash flow is not good. They (Shell) focus first on a number of projects that have already taken place," said Julius.

Now, both lnpex Corporation and Shell are continuing discussions on the option to take over the full participation by lnpex. In addition, the option to search for new partners also appears by lnpex. 

Rhea Sianipar

    Shell Indonesia management does not want to comment on the development of the Masela Block Abadi Gas Project. Regarding the question above, I have no comment, "said Shell Indonesia's External Relations VP Rhea Sianipar.

Dwi Soetjipto

Previously, SKK Migas Head Dwi Soetjipto mentioned the condition of the liquefied natural gas (LNG) business which was currently in decline, causing several oil and gas companies to worry about the project implementation, including for the Masela Block.

"Currently the oil and gas industry is facing serious problems including LNG prices. There is the fear of project owners such as the Masela Block to execute projects going forward," Dwi Soetjipto said.

The schedule can be Delayed

Julius added that it was not impossible that the time to implement the Masela Block Abadi Gas Project would increase or reverse the original schedule. However, SKK Migas ensures that lnpex is committed to completing projects on time. The Masela Block is targeted to be streamlined in 2027.

On October 11, 2019, Inpex Corporation and Shell Upstream Overseas Ltd together with SKK Migas signed a cost recovery revenue-amendment contract including an additional seven years of allocation and extension of the Abadi liquefied natural gas refinery project with SKK Migas.

The signing marked the implementation of a formal agreement on the terms of the cooperation contract that was previously agreed upon and announced in July 2019. Previously, PT Pertamina (Persero) had expressed interest in participating in the project. Pertamina once sent an official letter to conduct strategic talks on the management of the gas field in 2011 and 2016.

Drama in the Masela Block

Shell Flee from the Masela Block

A series of dramas colored the process of developing the Masela Block. After Shell intends to flee, the manager of Masela, Interp Corporation, must work to secure the project. As a flashback, in the middle of 2019, the Indonesian government and Inpex Corporation had agreed on the Masela Block development plan.

At that time the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan had to go back and forth from Jakarta-Tokyo to conduct very difficult negotiations. On Tuesday 16 July 2019, finally the Masela Block POD revised document was signed by SKK Migas Chief Dwi Soetjipto and CEO of Corporation Corp Takayuki Ueda at the Merdeka Palace, witnessed by President Joko Widodo and ESDM Minister Ignasius Jonan.

The agreement with an investment value of around US $ 18.5 billion to the US $ 19.8 billion is the culmination of the back and forth negotiations over the development of the Masela project over the past 20 years. Development of the Abadi Gas Field, the Masela Work Area uses an onshore LNG scheme, with lnpex as the operator.

The Abadi LNG Plant is designed to have a capacity of 10.5 million tons of natural gas per year, including around 9.5 million tons of LNG per year, 150 mmscfd of local gas supply through land pipes, and approximately 35,000 barrels of condensate per day.

Kontan, Page-12, Monday, July 6, 2020

Unexpected Masela

The twists and turns of managing the Masela Block off the coast of Maluku, according to Japanese businessmen, really made them never guessed before. What is far beyond expectations is the length of government decisions regarding the gas management model. Discovered since 1998, the Masela Block gas was just decided to be managed on land in 2016.

the Masela Block

That was one of the points delivered by The Jakarta Japan Club (JJC) President Kanji Tojo at a press conference in Jakarta last week. JJC is an association representing the commercial and industrial sectors of Japan. They conveyed a number of recommendations in the economic field to the Government of Indonesia, Masela Block was indeed filled with unexpected things.

The Jakarta Japan Club (JJC) President Kanji Tojo

There is a tug of war between the two camps, the one that believes that gas is more efficiently managed in the high seas (floating refineries in the gas source area) and the one that advocates for gas treatment on land which has lower costs. All were adamant with each other's arguments.

Inpex Corporation

In September 2015, Inpex Corporation and Shell submitted a management plan (POD) for the Masela Block at sea with an investment of 14 billion US dollars or 5 billion US dollars cheaper than the value of development on the land.

Shell

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) also suggested the same thing. Because there are still strong conflicts of interest between land and at sea, the government invites independent consultants to provide input.

SKK Migas

The result is the same, Recommendations that came out at the end of 2015 were gas processed in the high seas. But a surprising thing happened in March 2016. 

The President Joko Widodo

     At a press conference at the airport, President Joko Widodo announced the attitude that the government wanted to develop gas on land so as to demand changes or revisions to the POD. This change certainly requires a new study. The production plan that was originally realized in 2024 was delayed to the fastest in 2027.

The estimated investment will be 19.8 billion US dollars or more expensive than originally proposed. What lessons can be drawn from that? He said the government wanted to attract as much foreign investment as possible by trying to reform the bureaucracy.

Rules that are seen as holding back revoked or canceled. Unfortunately, that has not made Indonesia an attractive country for investment.

The United States trade war with China

Dozens of companies that shifted their industrial locations due to the United States trade war with China did not enter Indonesia. They are more interested in other countries in Southeast Asia.

JJC gave some recommendations. Improving the investment climate in Indonesia is their first recommendation. Some points included in this recommendation are the need for transparency regarding taxation and fiscal. In addition, the business world needs consistency of policies made by the government.

     Further about policy consistency is the statement of a number of different government officials for the same thing. For investors, this is confusing. Which words can he hold? I guess so. Similar to the story of the Masela Block, when relevant ministries and technical institutions recommend the management of gas at sea, the decision in the future is on land.

Indonesia's upstream oil and gas industry is still full of twists and turns. Hundreds of licenses, more than 300 licenses, must be managed by investors, starting with licenses at the central to regional levels.

The accumulation of permits is not accompanied by clarity when it is finished. The government has improved. As many as 56 licenses within the Ministry of Energy and Mineral Resources, for example, were revoked or canceled because they were considered to hamper investment.

SKK Migas recently launched a one-stop service policy that promised to accelerate and simplify the bureaucracy within 3 days. One is needed, consistency over the improvement.

IN INDONESIA

Masela yang Tidak Terduga 

Lika-liku pengelolaan Blok Masela di lepas pantai Maluku, menurut para pengusaha Jepang, betul-betul membuat mereka tak pernah menduga sebelumnya. Hal yang jauh di luar dugaan adalah begitu lamanya keputusan pemerintah menyangkut model pengelolaan gas. Ditemukan sejak 1998, gas Blok Masela baru saja diputuskan untuk dikelola di darat pada 2016.

Demikian salah satu poin yang disampaikan Presiden The Jakarta Japan Club (JJC) Kanji Tojo dalam konferensi pers di Jakarta, pekan lalu. JJC merupakan perkumpulan yang mewakili sektor komersial dan industri dari Jepang. Mereka menyampaikan sejumlah rekomendasi di bidang perekonomian kepada Pemerintah Indonesia Blok Masela memang dipenuhi oleh hal-hal yang tidak terduga. 

Ada tarik-menarik kuat antara dua kubu, yaitu kubu yang berpendapat bahwa gas lebih efisien dikelola di laut lepas (kilang terapung di area sumber gas) dan kubu yang menganjurkan gas diolah di darat yang beralasan ongkosnya lebih murah. Semua bersikukuh dengan argumen masing-masing.

Pada September 2015, Inpex Corporation dan Shell mengajukan rencana pengelolaan (POD) Blok Masela di laut dengan nilai investasi 14 miliar dollar AS atau 5 miliar dollar AS lebih murah dibandingkan nilai pengembangan di darat. 

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) juga menyarankan hal yang sama. Lantaran adanya konflik kepentingan antara di darat dan di laut masih kuat, pemerintah mengundang konsultan independen untuk memberi masukan.

Hasilnya sama, Rekomendasi yang keluar pada akhir 2015 adalah gas diolah di laut lepas. Namun hal yang mengejutkan terjadi pada Maret 2016. Pada sebuah konferensi pers di bandara, Presiden Joko Widodo mengumumkan sikap bahwa pemerintah ingin pengembangan gas di darat sehingga menuntut perubahan atau revisi POD. Perubahan itu tentu saja memerlukan kajian baru. Rencana produksi yang semula bisa diwujudkan pada 2024 tertunda menjadi paling cepat tahun 2027.

Estimasi investasinya menjadi 19,8 miliar dollar AS atau lebih mahal dari yang diusulkan semula. Pelajaran apa yang bisa diambil dari hal itu? Katanya, pemerintah ingin menggaet investasi asing sebanyak-banyaknya dengan berusaha mereformasi birokrasi. 

Aturan yang dipandang menghambat dicabut atau dibatalkan. Sayangnya hal itu belum membuat Indonesia menjadi negara yang menarik untuk berinvestasi. 

Puluhan perusahaan yang mengalihkan lokasi industri mereka akibat perang dagang Amerika Serikat dengan China tidak satu pun yang masuk ke Indonesia. Mereka lebih tertarik dengan negara lain di Asia Tenggara.

JJC memberikan beberapa rekomendasinya. Perbaikan iklim investasi di Indonesia adalah rekomendasi pertama mereka. Beberapa poin yang masuk dalam rekomendasi ini adalah perlunya transparansi tentang perpajakan dan fiskal. Selain itu, dunia usaha membutuhkan konsistensi kebijakan yang dibuat pemerintah. 

Lebih jauh tentang konsistensi kebijakan adalah pernyataan sejumlah pejabat pemerintah yang berbeda-beda untuk hal yang sama. Bagi investor, ini hal membingungkan. Yang mana yang bisa dipegang ucapannya? Begitu kira-kira. Mirip dengan kisah Blok Masela, ketika kementerian dan institusi teknis terkait merekomendasikan pengelolaan gas di laut, keputusan di kemudian hari adalah di darat.

Industri hulu migas Indonesia memang masih penuh liku. Ratusan perizinan, lebih dari 300 izin, harus diurus investor, mulai perizinan di tingkat pusat sampai daerah. 

Bertumpuknya izin itu tidak disertai kejelasan kapan selesainya. Pemerintah memang sudah berbenah. Sebanyak 56 perizinan di lingkungan Kementerian Energi dan Sumber Daya Mineral, misalnya dicabut atau dibatalkan karena dianggap menghambat investasi. 

SKK Migas beberapa waktu lalu juga meluncurkan kebijakan layanan satu pintu yang menjanjikan percepatan dan penyederhanaan birokrasi dalam waktu 3 hari. Satu yang diperlukan, konsistensi atas pembenahan tersebut.

Kompas, Page-13, Wednesday, Jan 29, 2020

Inpex Signs the Masela Block Contract Amendment

Inpex Corporation through its affiliate, Inpex Masela Ltd, has signed an amendment to the Masela Block production sharing contract (PSC). The oil and gas block contract was extended by 27 years so that the contract expired in 2055. 

the Masela Block

     The signing of the PSC revision was carried out by Inpex together with its partner Shell Upstream Overseas Ltd with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) as Indonesia's representative. The signing was witnessed directly by the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan.

Ignasius Jonan

"This signing marks the execution of a formal agreement related to the PSC period that was agreed and announced as part of the approval of the revised plan of development (POD) by the Government of Indonesia in July," it said in an official statement from Inpex.

In its official statement, Inpex explained that the announcement about the contract extension of the Masela Block had been made on July 16 last. The additional term of the contract is 7 years with an additional contract period and a contract extension of 20 years. Thus, the Masela Block contract will expire in 2055 from 2028 initially.

Masafumi Ishii with The President Joko Widodo

Japanese Ambassador to Indonesia Masafumi Ishii who also witnessed the signing of the contract amendment conveyed his appreciation for the Government of Indonesia. In his Instragram, he wrote that with this signing, the Abadi Project, the Masela Block could become a large-scale Japanese-Indonesian project.

"Eventually this project developed into a large-scale Japan-Indonesia project with an investment of US $ 20 billion, with an increase in GDP (Gross Domestic Product / gross domestic product for Indonesia of US $ 153 billion) and creating employment for 73 thousand people per year," wrote the Masafumi.

Previously, after receiving POD approval, INPEX Vice President Corporate Services Masela Ltd Nico Muhyiddin said that it was completing the preparation of an environmental impact analysis (Amdal). It has conducted public consultations with communities in a number of villages in the Tanimbar Islands Regency and is currently preparing a terms of reference.

"After Amdal, we will work on FEED (Front End Engineering Design / detailed design). "From the results of the FEED, we will know what the ship looks like, what kind of model, after that FID (Final Investment Decision / final investment decision)," said Nico.

At the same time, he also briefly said, his party was compiling a mapping of potential gas buyers from the Abadi Project. A number of companies becoming prospective gas buyers are PT PLN (Persero) and PT Perusahaan Gas Negara (PGN) Tbk. It will look for buyers at home and abroad.

"We have asked how much gas they need, which quality. But there is no contract, "he said.

After the FID is reached, the Abadi Project will enter the construction phase. During the construction phase, Inpex must undertake a number of activities, including the construction and operation of subsea gas wells and the construction of the Subsea Umbilicals, Risers and Flowlines (SURF) facilities off the Arafura coast. 

     Furthermore, Inpex also builds Floating Production, Storage and Offloading (FPSO) facilities, underwater gas pipelines from the FPSO to onshore Gas Receiving Facilities (GRFs), and LNG onshore refineries.

SKK Migas targets Proyak Abadi to start production in 2027. The project is projected to produce 9.5 million tons of gas per year in the form of liquefied natural gas (LNG) and 150 million cubic feet per day (million standard cubic feet per day / mmscfd) for gas pipelines.

IN INDONESIA

Inpex Tanda Tangani Amendemen Kontrak Blok Masela

Inpex Corporation melalui afiliasinya, Inpex Masela Ltd, telah menandatangani amendemen kontrak kerja sama (production sharing contract/PSC) Blok Masela. Kontrak blok migas ini diperpanjang 27 tahun sehingga kontraknya berakhir pada 2055. 

      Penandatanganan revisi PSC dilakukan Inpex bersama mitranya Shell Upstream Overseas Ltd dengan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) sebagai perwakilan Indonesia. Penandatanganan ini disaksikan langsung oleh Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan.

“Penandatangan ini menandai eksekusi dari kesepakatan formal terkait jangka waktu PSC yang disepakati dan diumumkan sebagai bagian dari persetujuan revisi rencana pengembangan (plan of development/POD) oleh Pemerintah Indonesia pada Juli,” demikian tertulis dalam keterangan resmi Inpex.

Dalam keterangan resminya, Inpex menjelaskan bahwa pengumuman tentang perpanjangan kontrak Blok Masela telah dilakukan pada 16 Juli lalu. Tambahan jangka waktu kontrak ini yakni 7 tahun tambahan jangka waktu kontrak dan perpanjangan kontrak selama 20 tahun. Sehingga, kontrak Blok Masela akan berakhir pada 2055 dari awalnya 2028. 

Duta Besar Jepang untuk Indonesia Masafumi Ishii yang turut menyaksikan penandatangan amendemen kontrak tersebut menyampaikan apresiasinya terhadap Pemerintah Indonesia. Dalam Instragram-nya, dia menuliskan bahwa dengan penandatanganan ini, maka Proyek Abadi, Blok Masela dapat menjadi proyek berskala besar Jepang-Indonesia.

“Akhirnya proyek ini berkembang menjadi proyek berskala besar Jepang-Indonesia dengan investasi US$ 20 miliar, dengan pertambahan GDP (Gross Domestic Product/produk domestik bruto untuk Indonesia US$ 153 miliar dan menciptakan lapangan kerja sebanyak 73 ribu orang per tahun,” demikian tulis Masafumi.

Sebelumnya, pasca mendapat persetujuan POD, Vice President Corporate Services INPEX Masela Ltd Nico Muhyiddin mengatakan bahwa pihaknya sedang merampungkan penyusunan analisis dampak lingkungan (Amdal). Pihaknya telah melakukan konsultasi publik ke masyarakat di sejumlah desa yang berada di Kabupaten Kepulauan Tanimbar dan kini sedang menyusun kerangka acuan.

“Setelah Amdal, kami akan mengerjakan FEED (Front End Engineering Design/desain rinci). Dari hasil FEED, kami akan tahu kapalnya seperti apa, modelnya seperti apa, setelah itu FID (Final Investment Decision/keputusan akhir investasi),” ujar Nico.

Pada saat yang sama, dia juga sempat menuturkan, pihaknya menyusun pemetaan calon pembeli gas dari Proyek Abadi. Sejumlah perusahaan menjadi kandidat pembeli gas ini adalah PT PLN (Persero) dan PT Perusahaan Gas Negara (PGN) Tbk. Pihaknya akan mencari pembeli di dalam maupun luar negeri.

“Kami sudah menanyakan mereka butuh gasnya berapa, kualitasnya yang mana. Tetapi belum ada kontraknya,” kata dia.

Setelah FID tercapai, Proyek Abadi akan masuk tahap konstruksi. Pada tahap konstruksi, Inpex harus mengerjakan sejumlah kegiatan, meliputi pembangunan dan pengoperasian sumur gas bawah laut dan konstruksi fasilitas Subsea Umbilicals, Risers and Flowlines (SURF) di lepas pantai Arafura. 

     Selanjutnya, Inpex juga membangun fasilitas produksi, penampungan dan bongkar muat terapung (Floating Production, Storage and Offloading/FPSO), pipa gas bawah laut dari FPSO ke fasilitas penerima gas (Gas Receiving Facility/GRF) di darat, serta kilang LNG di darat. 

SKK Migas menargetkan Proyak Abadi akan mulai berproduksi pada 2027. Proyek ini diproyeksikan menghasilkan gas sebesar 9,5 juta ton per tahun dalam bentuk gas alam cair (Liquefied Natural Gas/LNG) dan 150 juta kaki kubik per hari (million standard cubic feet per day/mmscfd) untuk gas pipa.

Investor Daily, Page-9, Thursday, October 17, 2019

Gas Supply and Production Increases

Increased gas needs and production make exploration of new gas blocks or revitalize old blocks into a necessity.

The IEA PREDICTION is not wrong. However, the prediction was made before the discovery of gas in the Masela Block, Maluku and Makassar Straits, "said the Minister of Energy and Mineral Resources Ignatius Jonan when he became one of the speakers at 27th World Gas Conference in Washington DC, USA, Wednesday (27/6).

the Masela Block

Jonan said it answered the question of moderator Nobuo Tanaka. Tanaka said based on predicted International Energy Agency (IEA), in 2040, Indonesia became a gas importer.

"Do you agree with that prediction?" Tanaka asked.

For information, Indonesia will get additional gas capacity supply from Makassar Strait of 1,000 mmscfd (million standard cubic feet per day) and from Masela 1,200 mmscfd.

That does not include gas production in Rokan, Riau. Operators in the Masela Block are Inpex and Shell, while the operator in the Makkasar Strait is Chevron. Increased gas demand is partly due to the energy mix program. In his presentation, Jonan revealed that in 2025 the use of gas is targeted to reach 22% and in 2050 by 24%.

Inpex Corporation

The increased need for exploration of new gas blocks or revitalizing old blocks becomes a necessity. Therefore, at the end of his presentation, Jonan hopes the new oil and gas policy will attract more investors. Before becoming a speaker at the World Gas Forum. Jonan used the opportunity to explain the government's policy on oil and gas, among others, to the US Chamber of Commerce and the ASEAN-US Business Council.

"The government treats the equivalent of foreign investors and domestic investors," said Jonan.

Oil and gas investment

Charles Freeman, Senior Vice President for Asia at the US Chamber of Commerce and Industry, asked about the sustainability of investment in the oil and gas sector related to the 2019 election. The same applies to Elizabeth Dugan from the US-ASEAN Business Council. Jonan replied the government guarantee the political year will not hamper investment in the oil and gas sector.

"Therefore, investment in the oil and gas sector is a long-term investment," said Jonan.

Pertamina CEO Nicke Widyawati

One who accompanied the visit of the Minister of Energy and Mineral Resources Ignasius Jonan is Plut Pertamina CEO Nicke Widyawati. After listening to Jonan's exposure, Nicke explained that the biggest gas demand is for power plants and industries. In line with Jonan, Nicke said the increase in production becomes imperative.

"We certainly have to increase production. First by increasing production capacity and second building infrastructure, "She said.

Nicke asserted Pertamina's role in increasing gas production is very important.

"From start up, our gas production will increase as there are several working areas given to Pertamina. This will certainly increase our supply or upstream production capacity. Second, the infrastructure, namely gas pipeline and LNG, that must be built, "said Nicke.

Media Indonesia, Page-13, Friday, June 29, 2018

Pertamina shells out dividends to govt

State-owned oil and gas company Pertamina says it has transferred Rp 8.57 trillion (US$613.18 million) in dividend to the government from the Rp 33.3 trillion net profit it booked in 2017. The dividend payment was agreed on Wednesday during the annual shareholders meeting.

Nicke Widyawati

Pertamina acting president director Nicke Widyawati said that 2017 was full of many challenges for the company as a result of the hike in crude oil prices and the rupiah's depreciation against the US dollar.

"Throughout the year, the company tried to maintain a positive financial performance amid the global increase in oil prices. We focused on strategic projects while carrying out efficiency in all lines. As a result, we could still record an increase in revenue,” Nicke said in a statement on Wednesday Pertamina recorded $42.96 billion in its 2017 revenue, or 18 percent growth from $36.49 billion in revenue the previous year.

Sales of crude oil in both the domestic and international markets was the main contributor to revenue growth, with the Indonesian Crude Price (ICP) reaching $51.17 per barrel, while the reference price in the state bud get was $48 per barrel. Meanwhile, gas production also increased from 650 million barrels of oil equivalent per day (mboepd) in 2016 to 693 mboepd in 2017.

"The production of the Banyu Urip field and Pertamina’s other overseas fields contributed particularly to the increase in oil and gas production,” said Nicke, adding that the company also increased its geothermal production to 3,900 GWh in 2017 from 3,043 GWh, a 27 percent year-on-year growth.

Jakarta Post, Page-14, Friday, May 4, 2018