Refinery Project Takes Up to 9 Years

Wood Mackenzie considers that the construction of a relatively simple oil refinery takes 2-3 years, while refineries with high complexity can take around 4-9 years. Sushant Gupta, Director of Wood Mackenzie, a research and energy consultant agency, explained that the time needed for the construction of new refineries will depend on the capacity and companies that become partners.

Wood Mackenzie

"Simple oil refinery construction can be completed for 2-3 years. However, the construction of a very complex oil refinery takes around 4-9 years, "he said.

According to him, delaying the oil refinery project is not an extraordinary thing in Indonesia. In fact, there are often changes in investors or changes that will become partners in the joint venture formed by PT Pertamina (Persero).

Balikpapan Refinery

"However, we see that the Balikpapan Refinery revitalization project is 'certainty'. Therefore, it is very possible to happen [realization of revitalization

"Balikpapan refinery," he said.

Hyundai Engineering Co. Ltd.

Pertamina has appointed the SK Engineering & Construction Co. consortium. Ltd., Hyundai Engineering Co. Ltd., PT Rekayasa Industri, and PT PP (Persero) Tbk. as the winner of the engineering tender for the design, procurement and construction of the Balikpapan Refinery worth US $ 4 billion or around Rp. 57.8 trillion.

PT Rekayasa Industri (Rekind)

Pertamina targets the completion of the Balikpapan Refinery revitalization of around 53 months or 4 years 5 months, which is completed in 2023. President Director of PT Rekayasa Industri (Rekind) Yanuar Budinorman said that his party would give the best of trust Pertamina appointed companies to revitalize the Pertamina refinery.

"We are happy to be able to take part in government programs in realizing energy security," he said.

The Balikpapan Refinery Project

The Balikpapan Refinery Project will focus on processing residues (low value products) into high-quality fuel oil. In addition, the quality of Solar processing will be increased by reducing the sulfur content so that it is more environmentally friendly. The company has also been involved in developing refineries in Indonesia.

Rekind also participated in the construction of the first unleaded oil processing facility in Indonesia through the Blue Sky Balongan Project in Balongan Refinery, West Java. In 2008, Rekind also worked on Pertamina's residue catalytic cracking offgas to propylene project (ROPP) project for the Balongan Refinery in Indramayu-West Java.

Through a project known as the use of exhaust gas, unused waste gas and oil refineries can be converted into high-value propylene (plastic raw material).

IN INDONESIAN

Proyek Kilang Memakan Waktu Hingga 9 Tahun

Wood Mackenzie menilai bahwa konstruksi kilang minyak yang relatif sederhana membutuhkan waktu 2-3 tahun, sedangkan kilang dengan kompleksitas tinggi bisa membutuhkan waktu sekitar 4-9 tahun. Sushant Gupta, Direktur Wood Mackenzie, lembaga riset dan konsultan energi, menjelaskan bahwa waktu yang dibutuhkan untuk konstruksi kilang baru akan tergantung pada kapasitas dan perusahaan yang menjadi mitra.

“Konstruksi kilang minyak yang sederhana dapat diselesaikan selama 2-3 tahun. Namun, pembangunan kilang minyak yang sangat kompleks butuh waktu sekitar 4-9 tahun," katanya.

Menurutnya, penundaan proyek kilang minyak bukan menjadi hal yang luar biasa di Indonesia. Bahkan sering terjadi perubahan investor atau perubahan yang akan menjadi mitra dalam usaha patungan yang dibentuk PT Pertamina (Persero).

“Namun, kami melihat bahwa proyek revitalisasi Kilang Balikpapan sebagai 'kepastian'. Oleh karena itu, sangat mungkin terjadi [terealisasi revitalisasi Kilang Balikpapan,” katanya.

Pertamina telah menunjuk konsorsium SK Engineering & Construction Co. Ltd., Hyundai Engineering Co. Ltd., PT Rekayasa Industri, dan PT PP (Persero) Tbk. sebagai pemenang tender perekayasa desain, pengadaan, dan konstruksi Kilang Balikpapan senilai US$ 4 miliar atau sekitar Rp 57,8 triliun.

Pertamina menargetkan penyelesaian revitalisasi Kilang Balikpapan sekitar 53 bulan atau 4 tahun 5 bulan, yaitu rampung pada 2023. Direktur Utama PT Rekayasa Industri (Rekind) Yanuar Budinorman mengatakan, pihaknya akan memberikan yang terbaik atas kepercayaan Pertamina menunjuk perusahaan untuk merevitalisasi kilang Pertamina. 

“Kami senang bisa ikut ambil bagian dari program pemerintah dalam mewujudkan ketahanan energi,” ujarnya.

Proyek Kilang Balikpapan akan difokuskan pada pengolahan residu (produk dengan nilai rendah) menjadi bahan bakar minyak berkualitas tinggi. Selain itu, kualitas pengolahan Solar akan ditingkatkan dengan mengurangi kandungan sulfur sehingga lebih ramah lingkungan. Perusahaan juga pernah terlibat dalam pengembangan kilang di Indonesia.

Rekind juga ikut dalam pembangunan fasilitas pemrosesan minyak tanpa timbal pertama di Indonesia melalui Proyek Balongan Blue Sky di Kilang Balongan, Jawa Barat. Pada 2008, Rekind juga mengerjakan proyek residue catalytic cracking offgas to propylene project (ROPP) milik Pertamina untuk Kilang Balongan di Indramayu-Jawa Barat.

Melalui proyek yang dikenal dengan pemanfaatan gas buang tersebut, gas buang yang tidak terpakai dan kilang minyak dapat diubah menjadi propilena (bahan baku plastik) yang bernilai tinggi.

Bisnis Indonesia, Page-24, Wednesday, Dec 12, 2018

Pertamina Boosts Balikpapan Refinery Production

The construction of the Balikpapan Refinery Development Master Plan (RDMP) immediately began with the signing of a construction design contract (engineering, procurement and construction / EPC) with the construction of the refinery, both inside battery limit (IBL) and outside battery limit (OSBL).

The signing of the contract was carried out after the auction process on March 15-November 26 2018 was declared completed and the winner was announced on November 30, 2018. Corporate Communications Vice President Pertamina Adiatma Sardjito said the Balikpapan RDMP refinery development would be carried out joint operation of four domestic and foreign companies, namely SK Engineering and Construction Co. Ltd., Hyundai Engineering Co. Ltd, PT Rekayasa Industri, and PT PP (persero) Tbk. The Balikpapan RDMP development contract reached Rp. 57.8 trillion and will be completed within 53 months.

Hyundai Engineering Co. Ltd

"Balikpapan's RDMP refinery is part of Pertamina's strategic project to realize national energy independence and security. "The capacity of the Balikpapan refinery will increase to 100,000 barrels per day, up 38% from the previous 260,000 barrels per day to 360 thousand barrels per day," Adiatma said.

Balikpapan RDMP is one of six refinery mega-projects built by Pertamina. The six refinery megaprojects consist of four RDMP expansion projects and two new grass root refinery / GRR projects.

Nicke Widyawati

"At the end of 2026, we can implement the six refinery projects," said Pertamina Director Nicke Widyawati.

Coordinating Minister for Economic Affairs Darmin Nasution said the construction of the Balikpapan refinery answered the government's thirst which had been wanting to develop or expand refineries.

ESDM Minister Ignasius Jonan

"The government understands that building or developing refineries is not easy because it requires costs and a long time. However, this should not be ignored because it becomes a capital in realizing national energy security, "said ESDM Minister Ignasius Jonan.

"The refinery is also the forerunner of petrochemicals. This is the hope that our government has a large petrochemical industry, "he added.

IN INDONESIAN

Pertamina Genjot Produksi Kilang  Balikpapan

Pembangunan Refinery Development Master Plan (RDMP) Kilang Balikpapan segera dimulai dengan ditandatanganinya kontrak pelaksanaan rancangan konstruksi (engineering, procurement and construction/EPC) dengan ruang lingkup pembangunan kilang, baik inside battery limit (IBL) maupun outside battery limit (OSBL). 

Penandatanganan kontrak ini dilakukan setelah melalui proses lelang pada 15 Maret-26 November 2018 dinyatakan selesai dan telah diumumkan pemenangnya pada 30 November 2018. Vice President Corporate Communications Pertamina Adiatma Sardjito menyatakan pembangunan RDMP Kilang Balikpapan akan dilakukan joint operation empat perusahaan dalam dan luar negeri, yaitu SK Engineering and Construction Co Ltd, Hyundai Engineering Co Ltd, PT Rekayasa Industri, dan PT PP (persero) Tbk. Adapun kontrak pembangunan RDMP Balikpapan mencapai Rp 57,8 triliun dan akan diselesaikan dalam waktu 53 bulan.

“RDMP Kilang Balikpapan bagian dari proyek strategis Pertamina untuk mewujudkan kemandirian dan ketahanan energi nasional. Nantinya kapasitas kilang Balikpapan akan bertambah hingga 100 ribu barel per hari, atau naik 38% dari sebelumnya 260 ribu barel per hari menjadi 360 ribu barel per hari,” ujar Adiatma

RDMP Balikpapan merupakan satu dari enam megaproyek kilang yang dibangun Pertamina. Keenam megaproyek kilang itu terdiri atas empat proyek perluasan RDMP dan dua proyek pembangunan baru (grass root refinery/GRR). 

“Akhir 2026, keenam proyek kilang ini insya Allah bisa kita laksanakan” ujar Dirut Pertamina Nicke Widyawati. 

Menko Bidang Perekonomian Darmin Nasution mengatakan pembangunan kilang Balikpapan menjawab dahaga pemerintah yang selama ini ingin ada pembangunan ataupun perluasan kilang.

“Pemerintah mengerti bahwa membangun ataupun mengembangkan kilang tidak mudah karena membutuhkan biaya dan waktu yang lama. Namun, hal ini tidak boleh diabaikan karena menjadi modal dalam mewujudkan ketahanan energi nasional,” kata Menteri ESDM Ignasius Jonan.

“Kilang juga cikal bakal petrokimia. Ini harapan pemerintah kita punya industri petrokimia besar,” imbuhnya.

Media Indonesia, Page-13, Tuesday, Dec 11, 2018

SK, Hyundai to upgrade Pertamina refinery

State energy holding company Pertamina on Monday said it appointed South Korea’s SK Engineering & Construction Co. and Hyundai Engineering & Construction Co. as engineering and construction contractors for its Balikpapan refinery upgrade.

Upgrade work at the US$ 4 billion Balikpapan project, in East Kalimantan will now start at the beginning of 2019, Pertamina executive Ignatius Tallulembang said at a media briefing. Development will be jointly undertaken with state-owned construction firm PT Pembangunan Perumahan Tbk and state engineering firm PT Rekayasa lndustri (Rekind), Tallulembang said. When the upgraded refinery goes onstream in August 2023, it will produce fuel to the “Euro V” emissions standard, he added.

The upgrade comes as Southeast Asia’s largest economy hopes to reduce its dependence on costly oil product imports, currently meeting around a third of its fuel needs of around 1.4 million barrels per day. But a program launched in late 2014 to double lndonesia’s refinery output has faced multiple setbacks, as the country has continued to struggle to attract investment in the sector.

Earlier plans to upgrade Balikpapan with Japan’s JX Nippon fell apart in early 2016, but as recently as August this year it was seeking to revive that partnership, or form a new one with Azerbaijan’s Socar for the project. At the same event, Pertamina signed a framework agreement with Omanfs Overseas Oil and Gas LLC (OOG) to develop a new $10 billion refinery and petrochemical complex in Bontang, also on Borneo.

Framework Agreement

State-owned OOG, which is taking a majority stake in the project, was chosen for its financial capability Pertamina chief executive Nicke Widyawati said. Pertamina is in talks with OOG to increase its share ofthe project to 20-30 percent from 10 percent under the current plan, Tallulembang said. It was not immediately clear how much of the project cost will be carried by OOG.

Nicke Widyawati 

Widyawati declined to comment on why Japan’s Cosmo Energy Holdings, earmarked in January for partnership in the project, was not included in the latest agreement. Over the next year, Pertamina and OOG plan to carry out a feasibility study for the project. Once completed, OOG is expected to supply 300,000 bpd of crude oil to the refinery, Tallulembang said.

Omanfs Overseas Oil and Gas LLC (OOG)

Pertamina now expects all six of its refinery projects including the Balikpapan, Cilacap, Balongan and Dumai refinery upgrades and the Bontang and Tuban grassroots developments to be completed by the end of 2026, Widyawati said.

“We recognize that the refineries have experienced delays [but] better late than never,” Widyawati said.

Jakarta Post, Page-13, Tuesday, Dec 11, 2018

Accelerate the Construction of Oil Refineries

PT Pertamina conducted two collaborations to complete the construction of an oil refinery in East Kalimantan. The first project, which is an oil refinery in Bontang, is cooperated with an oil company from Oman, Overseas Oil & Gas (OOG). Bontang Refinery is one of six refinery projects Pertamina will work on until the next 2026.

Nicke Widyawati

Pertamina's Managing Director, Nicke Widyawati, explained, for the refinery in Bontang, the framework agreement between the two companies applies to build a 300 thousand barrel / day refinery and the Petrochemical industry. With the signing of this cooperation, Pertamina can take the next step, namely a feasibility study, including in its economic terms.

"This study will give us a better understanding of the technical configuration of the refinery and the economics of the project as well as recognize the risks that can be anticipated early on for timely project implementation, according to the budget, on specifications, regulations, and achieve project economic targets," Nicke said at Pertamina Headquarters, Monday (10/12).

According to Nicke, the Bontang refinery will later become the largest refinery owned by Pertamina. In addition, the proceeds from the refinery will directly be integrated with the petrochemical plant. In addition to the refinery in Bontang, Pertamina is also conducting development cooperation with Hyundai Engeneering, SK Engeneering, Rekind, and PT PP for the construction of a refinery development master plan (RDMP) in Balikpapan. The construction of a refinery that requires funds of US $ 4 billion or around Rp. 57.8 trillion is planned to be completed by August 2023.

Hyundai Engeneering Co., Ltd.

Nicke said that the refinery is also one of six refinery projects that Pertamina will complete until 2026. If it is already operational, the Balikpapan refinery is predicted to reduce the purchase of diesel fuel by about 17 percent.

"In addition to being able to suppress imports. This refinery will focus on producing, fuel (fuel oil) with a higher standard. So, it will be more environmentally friendly," said Nicke.

PT Pertamina's Megaprojecting and Petrochemical Director, Ignatius Talulembang, said, for oil refineries in Bontang, all funds were spent purely from OOG. Pertamina will get profit sharing around 10 percent. Even so, going forward, Pertamina will slowly buy up 30 percent of share ownership. Through this collaboration in the form of government to government (G to G), Pertamina has the opportunity to open investment in Oman.

Framework Agreement Pertamina & OOG Oman

While for refineries in Balikpapan, Igantius said, since the beginning of 2018 Pertamina has begun preparatory construction, such as the construction of warehouses and workshops, for construction workers. Next year, significant development will be carried out.

"Development takes around 53 months until it starts operating. An additional three months is up to normal operation," Ignatius said.

     The Balikpapan refinery has a capacity of 360 thousand barrels per day. This is a development from the previous refinery with a capacity of only 100,000 barrels per day.

IN INDONESIAN

Percepat Pembangunan Kilang Minyak

PT Pertamina melakukan dua kerja sama untuk menyelesaikan pembangunan kilang minyak di Kalimantan Timur.  Proyek pertama, yaitu kilang minyak di Bontang yang dikerjasamakan dengan perusahaan minyak dari Oman, Overseas Oil & Gas (OOG). Kilang Bontang merupakan salah satu dari enam proyek kilang yang akan dikerjakan Pertamina hingga 2026 mendatang.

Direktur Utama Pertamina, Nicke Widyawati, menjelaskan, untuk kilang di Bontang, perjanjian framework agreement antara kedua perusahaan berlaku untuk membangun kilang berkapasitas 300 ribu barel/hari dan industri Petrokimia. Dengan ditandatanganinya kerja sama ini, Pertamina bisa melakukan langkah berikutnya, yakni Studi kelayakan, termasuk dalam hal keekonomiannya.

"Studi ini akan memberikan kita pemahaman yang lebih baik tentang konfigurasi teknis kilang dan keekonornian proyek serta mengenal risiko-risiko yang dapat diantisipasi sejak dini untuk pelaksanaan proyek yang tepat waktu, sesuai anggaran, pada spesifikasi, pada peraturan, dan mencapai target keekonomian proyek,” ujar Nicke di Kantor Pusat Pertamina, Senin (10/12).

Menurutnya, kilang Bontang ini nantinya menjadi kilang terbesar yang dimiliki Pertamina. Selain itu, hasil dari kilang ini secara langsung akan diintegrasikan dengan pabrik petrokimia. Selain kilang di Bontang, Pertamina juga melakukan kerja sama pembangunan dengan Hyundai Engeneering, SK Engeneering, Rekind, dan PT PP untuk pembangunan kilang refinery development masterplan (RDMP) di Balikpapan. Pembangunan kilang yang membutuhkan dana sebesar 4 miliar dolar AS atau Sekitar Rp 57,8 triliun ini rencananya Selesai pada Agustus 2023.

Nicke mengatakan, kilang ini juga merupakan salah satu dari enam proyek kilang yang akan diselesaikan Pertamina hingga 2026. Jika telah beroperasi, kilang Balikpapan diprediksi bisa menekan pembelian solar secara impor sekitar 17 persen.

"Selain bisa menekan impor. Kilang ini nantinya akan fokus memproduksi, BBM (bahan bakar minyak) dengan standar lebih tinggi. Jadi, akan lebih ramah lingkungan," kata Nicke.

Direktur Megaproyek Pengolahan dan Petrokimia PT Pertamina, Ignatius Talulembang, menuturkan, untuk kilang minyak di Bontang, seluruh dana yang dikeluarkan murni dari OOG. Pertamina akan mendapat bagi hasil Sekitar 10 persen. Meski demikian, ke depan, Pertamina secara perlahan akan membeli kepemilikan Saham hingga 30 persen. Melalui kerja sama berbentuk goverment to goverment (G to G) ini, Pertamina memiliki kesempatan untuk membuka investasi di Oman.

Sementara untuk kilang di Balikpapan, Igantius menuturkan, sejak awal 2018 Pertamina telah memulai konstruksi persiapan, seperti pembangunan warehouse dan workshop, untuk para pekerja konstruksi. Tahun depan, pembangunan secara signfikan akan dilakukan.

"Pembangunan membutuhkan waktu sekitar 53 bulan sampai dengan mulai beroperasi. Tambahan tiga bulan lagi sampai beroperasi normal," ujar Ignatius. 

Kilang Balikpapan memiliki kapasitas 360 ribu barel per hari. Ini merupakan pengembangan dari kilang sebelumnya yang berkapasitas hanya 100 ribu barel per hari.

Republika, Page-15, Tuesday, Dec 11, 2018

Collaborating with Schlumberger, ELSA Strengthens Upstream Oil and Gas

In order to strengthen and optimize the upstream oil and gas service business (oil and gas), PT Elnusa Tbk (ELSA) has a partnership with Schlumberger, an energy company from the United States (US). The cooperation is in the signing of the Master Cooperation Agreement (MCA) and Wireline Master Service (WMS) between the two companies.

PT Elnusa Tbk (ELSA)

President Director of PT Elnusa Tbk Tolingul Anwar, hopes that this collaboration can increase national capacity in upstream oil and gas services and technology transfer. ELSA and Schlumberger can also share opportunities and risks to increase growth.

Schlumberger

According to Tolingul, the collaboration is needed to accelerate the company's growth. The partnership between ELSA and Schlumberger has five categories, namely reservoir characterization, drilling and oil production, surface production and integrated service.

"Of course this management requires a service contractor and Elnusa hopes to get greater opportunities in the context of the synergy of Pertamina Group," said Tolingul, Monday (10/12).

As of October 31, 2018, Pertamina did control 41, 10% of ELSA's shares. On the other hand, Schlumberger has technology and resources that can be optimized for the management of upstream oil and gas. In fact, said Tolingul, the technology can contribute to lowering costs, as well as maximizing oil and gas fields and supporting government programs in finding giant fields in Indonesia.

IN INDONESIAN

Gandeng Schlumberger, ELSA Perkuat Hulu Migas

Demi memperkuat clan mengoptimalkan bisnis jasa hulu minyak dan gas bumi (migas), PT Elnusa Tbk (ELSA) menjalin kerjasama dengan Schlumberger, perusahaan energi dari Amerika Serikat (AS). Kerjasama itu ada didalam penandantanganan Master Cooperation Agreement (MCA) dan Wireline Master Service (WMS) di antara kedua perusahaan.

Direktur Utama PT Elnusa Tbk Tolingul Anwar, mengharapkan kerjasama ini bisa meningkatkan kapasitas nasional dalam servis hulu migas dan alih teknologi. ELSA dan Schlumberger juga bisa saling berbagi peluang dan risiko untuk meningkatkan pertumbuhan.

Menurut Tolingul, kerjasama tersebut sangat dibutuhkan untuk mempercepat pertumbuhan perusahaan. Kongsi antara ELSA dan Schlumberger ini memiliki lima kategori, yakni reservoir Characterization, pengeboran dan produksi minyak, surface production serta integrated service.

“Tentunya pengelolaan ini membutuhkan kontraktor jasa dan Elnusa berharap akan mendapatkan kesempatan yang lebih besar dalam rangka sinergi Pertamina Group,” ungkap Tolingul, Senin (10/ 12). 

Per 31 Oktober 2018, Pertamina memang menguasai 41, 10% Saham ELSA. Di sisi lain, Schlumberger memiliki teknologi dan resources yang bisa dioptimalkan untuk pengelolaan hulu migas. Bahkan, kata Tolingul, teknologi itu bisa berkontribusi dalam menurunkan biaya, serta memaksimalkan lapangan-lapangan migas dan mendukung program pemerintah dalam mencari lapangan raksasa di Indonesia.

Kontan, Page-14, Tuesday, Dec 11, 2018

Four Gross Split Oil and Gas Scheme Work Areas Signed

The Ministry of Energy and Mineral Resources (ESDM) signed four oil and gas working areas (WK) with a gross split profit sharing scheme scheme. The Head of the Communication and Information Services Cooperation Bureau of the Ministry of Energy and Mineral Resources, Agung Pribadi, said that the signed contract consisted of three Work Area Contracts (WK) extensions and one Exploration WK contract.

"For an extended WK contract with a term of 20 years, the exploration WK has a period of 30 years," he explained at the ESDM Ministry Office."

Agung said, the total estimated investment value from the implementation of definite work commitments and definite commitments (KKP) of the four WKs was US $ 183.1 million. And, a total bonus signature (signature bonus) worth US $ USD 14.4 million. The details, WK Tarakan with PT Medco E & P Tarakan Contractors, are effective January 2022. Estimated investment value of the first five-year KKP is US $ 35 million with a signature bonus of US $ 1.5 million.

Then, Coastal Plains and Pekanbaru WK with PT Bumi Siak Pusako Contractor will become effective in August 2022. Estimated investment value from the implementation of the first five-year KKP is US $ 130 million and the signature bonus is US $ 10 million.

   Then, WK Tungkal with Contractor Montd’or Oil Tungkal, Ltd. and Fuel-X Tungkal Ltd, effective August 2022. Where the implementation of the first five-year KKP is US $ 13 million and the signature bonus is US $ 2.45 million. One more, WK Banyumas with PT Contractor Minarak Banyumas Gas, KKP the first three years worth US $ 4 million and a signature bonus of US $ 500,000.

IN INDONESIAN

Empat Wilayah Kerja Migas Skema Gross Split Ditandatangani

Kementerian Energi dan Sumber Daya Mineral (ESDM) menandatangani empat Wilayah Kerja (WK) minyak dan gas bumi (migas) dengan skema kontrak bagi hasil gross split. Kepala Biro Komunikasi Layanan Informasi dan Kerjasama Kementerian ESDM Agung Pribadi menyebutkan, bahwa kontrak yang ditandatangani terdiri dari tiga kontrak Wilayah Kerja (WK) perpanjangan dan satu kontrak WK Eksplorasi. 

"Untuk kontrak WK perpanjangan dengan jangka waktu selama 20 tahun, sedangkan WK eksplorasi dengan jangka waktu selama 30 tahun," terangnya di Kantor Kementerian ESDM."

Agung bilang, total perkiraan nilai investasi dari pelaksanaan komitmen kerja pasti dan komitmen pasti (KKP) keempat WK itu seni1aiUS$ 183,1juta. Dan, total bonus tanda tangan (signature bonus) senilai US$ USD 14,4 juta. Rinciannya, WK Tarakan dengan Kontraktor PT Medco E&P Tarakan, berlaku efektif Januari 2022. Perkiraan nilai investasi dari KKP lima tahun pertama sebesar US$ 35 juta dengan bonus tandatangan US$ 1,5 juta. 

Lalu, WK Coastal Plains and Pekanbaru dengan Kontraktor PT Bumi Siak Pusako akan berlaku efektif Agustus 2022. Perkiraan nilai investasi dari pelaksanaan KKP lima tahun pertama sebesar US$ 130 juta dan bonus tanda tangan sebesar US$ 10 juta.

Kemudian, WK Tungkal dengan Kontraktor Montd’or Oil Tungkal, Ltd. dan Fuel-X Tungkal Ltd, berlaku efektif Agustus 2022. Di mana pelaksanaan KKP lima tahun pertama sebesar US$ 13 juta dan bonus tanda tangan sebesar US$ 2,45 juta. Satu lagi, WK Banyumas dengan Kontraktor PT Minarak Banyumas Gas, KKP tiga tahun pertama senilaiUS$ 4 juta dan bonus tandatangan US$ 500.000.

Kontan, Page-14, Friday, Nov 30, 2018

The Government Found Five New Oil and Gas Reserves

The Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) found five new potential oil and gas reserves in the eastern region of Indonesia. The government claims the reserves are very economical to be developed and can enter the oil and gas block auction specifications.

The Head of the ESDM Geological Agency, Rudy Suhendra, said the five potential oil and gas reserves are located in West Singkawang, Banyumas Basin, Papua Boka Area, Kutai Basin and West Agats Area (Papua). However, the Geology Agency has not been able to explain in detail the potential of oil and gas reserves from the five regions. Understandably, the potential for oil and gas reserves can later be proven through exploration activities.

Banyumas Basin

"Resources are not yet known, only indications of a reserve, will be resumed. The process is at the Ministry of Energy and Mineral Resources Directorate General of Oil and Gas, there will be a sequence of exploration," added Rudy, Thursday (11/15).

Thus, the government expects five potential reserves to be included in the oil and gas block auction process. As a result, cooperation contract contractors (KKKS) can carry out further exploration activities. Moreover, according to Rudy, the five potential oil and gas reserves are very economical to develop.

"From the preliminary study, the potential for oil and gas reserves is very economical. Therefore, the data already exists. We hope this will be included in the auction process, then we will socialize to interested parties," said Rudy.

He acknowledged the efforts of the Geological Agency to find potential oil and gas reserves supported by funding as basic as possible from the State Expenditures Budget (APBN), which is worth Rp. 70 billion, for exploration activities.

IN INDONESIAN

Pemerintah Menemukan Lima Cadangan Migas Baru

Badan Geologi Kementerian Energi dan Sumber Daya Mineral (ESDM) menemukan lima potensi cadangan minyak dan gas (migas) baru di Wilayah timur Indonesia. Pemerintah mengklaim cadangan tersebut sangat ekonomis untuk dikembangkan dan bisa masuk spesifikasi lelang blok migas.

Kepala Badan Geologi Kementerian ESDM, Rudy Suhendra, menyebutkan lima potensi cadangan migas tersebut berlokasi di West Singkawang, Banyumas Basin, Boka Area Papua, Kutai Basin dan West Agats Area (Papua). Namun Badan Geologi belum bisa menjelaskan secara mendetail berapa potensi cadangan migas dari lima wilayah tersebut. Maklum, potensi cadangan migas nanti bisa dibuktikan melalui kegiatan eksplorasi. 

"Resources belum diketahui, hanya indikasi ada cadangan, nanti dilanjutkan. Prosesnya ada pada Direktorat Jenderal Migas Kementerian ESDM, nanti ada urutan eksplorasi," imbuh Rudy, Kamis (15/11).

Dengan demikian, pemerintah mengharapkan lima potensi cadangan bisa diikut sertakan dalam proses lelang blok migas. Alhasil, kontraktor kontrak kerja sama (KKKS) bisa melaksanakan kegiatan eksplorasi lebih lanjut. Apalagi, menurut Rudy, kelima potensi cadangan migas tersebut sangat ekonomis untuk dikembangkan.

"Dari kajian awal, potensi cadangan migas tersebut sangat ekonomis. Oleh karena itu, datanya sudah ada. Kami mengharapkan ini masuk dalam proses lelang, nanti kami akan mensosialisasikan kepada peminat,“ ungkap Rudy.

Dia mengakui upaya Badan Geologi menemukan potensi cadangan migas didukung oleh pendanaan ala kadarnya dari Anggaran Pendapatan Belanja Negara (APBN), yakni senilai Rp 70 miliar, untuk kegiatan eksplorasi.

Kontan, Page-14, Friday, Nov 16, 2018

Pertamina ships First LNG from Sanga-sanga

State-owned energy holding company Pertamina has shipped the first cargo of liquefied natural gas (LNG) from its recently awarded Sanga-Sanga oil and gas block in East Kalimantan in what has become the first LNG shipment for a unit operated under the gross-split scheme.

Pertamina subsidiary Pertamina Hulu Sanga-Sanga (PHSS) took over the asset from oil and gas company PT Virginia indonesia Company (VICO), which had operated the block for more than four decades. PHSS director Andi Wisnu expressed his appreciation to all stakeholders that had helped in the production, commercialization and monetization of LNG from the block.

”We appreciate [the efforts of] all that were involved, starting from the preparation and processing to the LNG shipment from the Badak LNG refinery, which is operated by PT Badak NGL in Bontang, East Kalimantan,” he said. He did not disclose the volume of LNG on the maiden shipment.

Sanga-Sanga Block East Kalimantan

The block currently produces around 16,000 barrels of oil equivalent per day (boepd) and 70 million metric standard cubic feet per day (mmscfd) of gas.

Jakarta Post, Page-14, Thursday, Nov 15, 2018

Fate 3 of the Termination Block 2023 Still Discussed

The government is still discussing the fate of the three oil and gas working areas whose contracts will expire in 2023. The oil and gas blocks which will expire in 2023 are Jabung Block (February 26, 2023), Rimau Block (April 22, 2023), and Block Corridor (December 19, 2023).

Corridor Block

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said that the announcement of the 2023 termination block management was still under discussion.

"Blok Jabung will also be discussed later," he said.

The ESDM Ministry prioritizes the preparation of the signing of oil and gas block contracts terminated in 2022 before deciding on the management of the 2023 termination block. Arcandra said that he would first focus on signing a new oil and gas block contract which had terminated (termination) in 2022.

There are four oil and gas blocks terminated in 2022. The government has auctioned four oil and gas termination blocks. However, there is still one block, the Sengkang Block, which the winner has not yet announced.

the Sengkang Block

"We have completed [the signature of the new 2022 oil and gas block termination contract], this is the production sharing contract [completed] first," he said.

The three oil and gas blocks terminated in 2022 that have received auction winners are the Tarakan Block, Coastal Plains and Pekanbaru (CPP), and Tungkal. The Ministry of Energy and Mineral Resources extends the contracts of the three blocks to contractors exist for 20 years, namely until 2042. However, the scheme used is a gross split contract replacing the cost recovery scheme.

the Tarakan Block Kalimantan

The total signature bonus that the government will receive from the three blocks is US $ 13.95 million or around Rp. 186 billion. Meanwhile, the total investment value from the plan for definite work commitments for the first 5 years is US $ 179.15 million Rp 2.4 trillion.

Arcandra explained that the announcement of the winner of the Sengkang Block auction will be done as soon as possible in accordance with the applicable procedures. He hopes that the announcement of the winner of the Sengkang Block can be completed by the end of this year.

Executive Director of the Institute for Essential Services Reform (IESR) Fabby Tumiwa said, the auction of exploration oil and gas working areas was not much in demand by investors, indicating that there was a profit-sharing scheme that was not attractive to contractors. The government, according to him, needs to re-analyze the oil and gas block auction not attractive to investors

"SKK Migas says gross split is not the cause [the oil and gas block auction is not attractive to investors], but it must be admitted that it is one of the challenges for the exploration work area. For production work areas it is indeed not because there is already a calculation, "he said.

So far, there have been 30 oil and gas blocks that use gross split schemes. 11 oil and gas blocks are auction results in 2017 and 2018. The oil and gas block auction results of 2017 which use the gross split scheme are Block Andaman 1, Andaman II, Merak Lampung, Pekawai, and West Yamdena. The oil and gas blocks from the 2018 auction using the gross split scheme are the Citarum, East Ganal, East Seram, Southeast Jambi, South Jambi B and Banyumas work areas.

Banyumas

Meanwhile, 19 other oil and gas working areas are termination blocks whose contract period expires from 2017 to 2022. Fabby added, towards the political year, the attitude of investors who choose to wait at least until April 2019.

"Oil and gas investment is risky, of course they count," he said.

Arcandra Tahar said, it is difficult to say that gross split is a problem for the management of exploration blocks. Because, until now there are two exploration oil and gas blocks auctioned in 2018 already taken by investors.

"The oil and gas business is indeed risky. Yes, it is calculated, because there is already initial data, if not from there, relying on government funds is not enough. "

According to him, the exploration block manager uses a definite work commitment fund to manage open areas.

IN INDONESIAN

Nasib 3 Blok Terminasi 2023 Masih Dibahas

Pemerintah masih membahas nasib tiga wilayah kerja minyak dan gas bumi yang kontraknya akan berakhir pada 2023. Blok migas yang akan habis masa kontrak pada 2023 adalah Blok Jabung (26 Februari 2023), Blok Rimau (22 April 2023), dan Blok Corridor (19 Desember 2023).

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan bahwa pengumuman pengelolaan blok terminasi 2023 masih dalam tahap pembahasan.

“Blok Jabung juga sama akan dibahas nanti," katanya.

Kementerian ESDM lebih memprioritaskan persiapan penandatanganan kontrak blok migas yang terminasi pada 2022 sebelum memutuskan pengelolaan blok terminasi 2023. Arcandra mengatakan bahwa pihaknya akan terlebih dahulu fokus dalam penandatanganan kontrak baru blok minyak dan gas bumi yang sudah berakhir kontraknya (terminasi) pada 2022.

Ada empat blok migas yang terminasi pada 2022. Pemerintah telah melelang empat blok migas terminasi itu. Namun, masih ada satu blok, yaitu Blok Sengkang, yang belum diumumkan pemenangnya.

“Kami selesaikan [tanda tangan kontrak baru blok migas terminasi] 2022, ini kontrak bagi hasilnya dulu [diselesaikan],” katanya.

Ketiga blok migas terminasi 2022 yang sudah mendapatkan pemenang lelang adalah Blok Tarakan, Coastal Plains and Pekanbaru (CPP), dan Tungkal. Kementerian ESDM memperpanjang kontrak ketiga blok itu kepada kontraktor eksis selama 20 tahun, yaitu sampai 2042. Namun, skema yang digunakan adalah kontrak bagi hasil kotor (gross split) menggantikan skema bagi hasil bersih (cost recovery).

Total bonus tanda tangan yang akan diterima pemerintah dari ketiga blok itu sebesar US$ 13,95 juta atau sekitar Rp 186 miliar. Sementara itu, total nilai investasi dari rencana komitmen kerja pasti selama 5 tahun pertama sebesar US$ 179,15 juta Rp 2,4 triliun.

Arcandra menjelaskan bahwa untuk pengumuman pemenang lelang Blok Sengkang akan dikerjakan secepatnya sesuai dengan prosedur yang berlaku. Dia berharap agar pengumuman pemenang Blok Sengkang dapat diselesaikan pada akhir tahun ini. 

Direktur Eksekutif Institute for Essential Services Reform (IESR) Fabby Tumiwa mengatakan, lelang wilayah kerja migas eksplorasi tidak banyak diminati investor menunjukkan ada skema bagi hasil yang tidak menarik bagi kontraktor. Pemerintah, menurutnya, perlu menganalisis kembali lelang blok migas tersebut tidak menarik bagi investor

“SKK Migas bilang gross split bukan penyebab [lelang blok migas tidak diminati investor), tetapi harus diakui itu menjadi salah satu tantangan untuk wilayah kerja eksplorasi. Kalau untuk wilayah kerja produksi memang tidak karena sudah ada hitungannya,” katanya.

Sejauh ini, sudah ada 30 blok migas yang menggunakan skema gross split. Sebanyak 11 blok migas merupakan hasil lelang pada 2017 dan 2018. Blok migas hasil lelang 2017 yang menggunakan skema gross split adalah Blok Andaman 1, Andaman II, Merak Lampung, Pekawai, dan West Yamdena. Blok migas hasil lelang 2018 yang menggunakan skema gross split adalah wilayah kerja Citarum, East Ganal, East Seram, Southeast Jambi, South Jambi B, dan Banyumas. 

Sementara itu, 19 wilayah kerja migas lainnya merupakan blok terminasi yang masa kontraknya berakhir mulai 2017 hingga 2022. Fabby menambahkan, menjelang tahun politik, sikap investor yang memilih menunggu setidaknya hingga April 2019. 

“Investasi migas itu berisiko, tentu mereka berhitung,” katanya.

Arcandra Tahar mengatakan, sulit mengatakan bahwa gross split menjadi masalah untuk pengelolaan blok eksplorasi. Pasalnya, hingga kini sudah ada dua blok migas eksplorasi yang dilelang pada 2018 sudah diambil oleh investor.

“Bisnis migas itu memang berisiko. Ya dihitung, karena sudah ada data awalnya, kalau tidak dari situ, mengandalkan dari dana pemerintah tidak cukup.”

Menurutnya, pengelola blok eksplorasi menggunakan dana komitmen kerja pasti untuk mengelola area terbuka.

Bisnis Indonesia, Page-24, Wednesday, Nov 14, 2018