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Thursday, March 2, 2017

Salman King goes to Republic Indonesia for seek Money



Need $ 100 Billion Fund to release oil stocks Aramco

Salman King's coming to Indonesia (03/01/2017) future, inviting admiration of many parties. The Saudi king is reported to be investing or just donate to the funding of up to hundreds of millions. As reported by Reuters on Sunday (26/2/207), that the visit of the King of Saudi Arabia to several countries in Asia is to seek funding. Namely by selling bonds and shares Aramco will sell the IPO to deal with cash flow difficulties due to low oil prices.

Later there will be a stock transaction. Then the ministers cut salaries 20% and fuel subsidies in the country was forced to cut, clear source close to Salman Raja environment, yesterday. For that, the main purpose of the visit in Malaysia, Indonesia, Japan and China.



Arab empire to impress serious conduct economic cooperation with Asian countries, the Indonesian government declared that the coming of the King Salaman to Indonesia will be guarded by 1,500 troops and includes 10 Ministers. Aramco also present along with Raja Salman.

While the information, Visits to Indonesia also simultaneously to encourage diversification efforts, in which to strengthen the Saudi Arabian become an exporter of oil, especially for developing countries in Asia. Saudi Arabia defeated Russia as the main supplier of China as the country with the world's biggest oil consumer. At least already set up to develop the non-oil industry and global investments.

Officials Saudi Arabia will offer the stock of Audi Aramco. The company "is going to sell 5 per cent stake in the fund collection target of about US $ 100 billion with an estimated value of Saudi Aramco to reach US $ 2 trillion. IPO of the oil companies will be the initial public offering (IPO), the largest and broke a new record beat Alibaba.

To note, Alibaba to go public in 2014. The corporate action has become the largest IPO in the history of the article of the funds raised reached US $ 25 billion. Until now, the Alibaba IPO action is the release of shares with the world.

In addition to offering shares Saudi Aramco, officials from the government of Saudi Arabia also targeting banks in Asia that want to invest in Saudi Arabia to develop non-oil industries. It is an attempt of a country that is the largest exporter of crude oil and oil revenues reduce dependence Build Oil Refinery. While in Indonesia, Raja Salman will be in Jakarta and Bali.

Earlier, Coordinating Minister for Economic Affairs, Nasution said Raja Salman and his entourage will visit Jakarta and Bali in order to invest in Indonesia. "If it (Raja Salman) more for their investment here," said Nasution

According to Nasution, Saudi Arabia plans to build an oil refinery and petrochemical plant in Indonesia. Does not rule out also, Saudi Arabian investors tertaik other sectors for making investment in Indonesia. They will build a refinery and petrochemical. But it may also be another. So it's a matter of investment, "he said

Signed of 5 MoU

Saudi Arabia berminati invest in various infrastructure in Indonesia, such as road construction, water supply, housing. "Saudi Arabia wants to be actively involved in the context of infrastructure development," said a spokesman for the Ministry of Foreign Affairs (Foreign Ministry) Arrmanatha Nasir in Jakarta. Salman King will also bring a number of investors and businessmen because the trip will also be signed agreement Saudi construction projects in Indonesia, between Iain investment in the expansion project Saudi Aramco refinery in Cilacap, Central Java, worth US $ 6 billion.

The investment value of the agreed infrastructure projects is very large because it is estimated to reach US $ 25 billion or Rp 300 trillion. Spokesman of the Ministry of Foreign Affairs (Foreign Ministry) Arrmanatha Nasir assess the visit of Salman King  is very historic and became a very good momentum for Indonesia. President Jokowi will welcome the arrival of Salman King directly at Halim Perdana Kusuma Airport in Jakarta

IN INDONESIAN

Raja Salman ke RI mencari Uang


Butuh Dana US$ 100 Miliar untuk melepas saham minyak Aramco

Kedatangan Raja Salman ke Indonesia (1/3/2017) mendatang, mengundang kekaguman banyak pihak. Raja Saudi ini diberitakan akan melakukan investasi atau sekedar berderma dengan kucuran dana hingga ratusan juta. Seperti dilansir Reuters Minggu (26/2/207), bahwa kunjungan Raja Arab Saudi kebeberapa negara Asia adalah untuk mencari kucuran dana. Yakni dengan menjual surat utang dan menjual saham Aramco yang akan IPO untuk menangani kesulitan cashflow akibat rendahnya harga minyak. 

Nantinya akan ada transaksi saham. Lalu gaji para menteri dipotong 20% dan subsidi BBM dalam negeri terpaksa dipangkas, jelas sumber terdekat di lingkungan Raja Salman, kemarin. Untuk itu, tujuan utama yakni berkunjung di Malaysia, Indonesia, Jepang dan China.

Untuk mengesankan kerajaan arab serius mengadakan kerjasama ekonomi dengan negara asia, pemerintah Indonesia menyatakan bahwa kedatangan Raja Salaman ke Indonesia akan dikawal oleh 1.500 pasukan serta mencakup 10 Menteri. Aramco juga turut hadir bersama Raja Salman. 

Sementara dari informasi,  kunungan ke Indonesia juga bersamaan untuk mendorong upaya diversifikasi, dimana untuk memperkuat arab Saudi menjadi eksportir minyak terutama untuk negara berkembang di Asia. Arab Saudi berhasil mengalahkan Rusia sebagai pemasok utama China yang merupakan negara dengan jumlah konsumen minyak terbesar dunia. Setidaknya sudah menyiapkan untuk mengembangkan industri non minyak serta investasi global.

Para pejabat Arab Saudi tersebut akan menawarkan saham dari Audi Aramco. Perusahaan tersebut “memang akan melepas 5 persen saham dengan target pengumpulan dana sekitar US$ 100 miliar dengan estimasi nilai Saudi Aramco mencapai US$ 2 triliun. Penawaran saham perdana dari perusahaan minyak ini akan menjadi initial public offering (IPO) terbesar dan memecahkan rekor baru mengalahkan Alibaba. 

Untuk diketahui, Alibaba melepas saham pada tahun 2014. Aksi korporasi ini menjadi IPO terbesar dalam sejarah pasalnya dana yang dihimpun mencapai US$ 25 miliar. Sampai saat ini aksi IPO Alibaba tersebut merupakan pelepasan saham dengan nilai terbesar di dunia.

Selain menawarkan saham Saudi Aramco, para pejabat dari pemerintahan Arab Saudi juga sedang mengincar bank-bank di Asia agar mau berinvestasi di Arab Saudi untuk mengembangkan industri non minyak. Hal tersebut sebagai usaha dari negara yang merupakan pengekspor minyak mentah terbesar tersebut mengurangi ketergantungan dan pendapatan minyak Bangun Kilang Minyak. Sedangkan di Indonesia, Raja Salman akan berada di Jakarta dan Bali.

Sebelumnya, Menteri Koordinator Bidang Perekonomian, Darmin Nasution mengatakan,Raja Salman dan rombongannya akan berkunjung ke Jakarta dan Bali dalam rangka investasinya di lndonesia. “Kalau itu (Raja Salman) lebih karena investasi mereka ke sini,” kata Darmin

Menurut Darmin, Arab Saudi berencana membangun kilang minyak dan pabrik petrokimia di Indonesia. Tidak menutup kemungkinan juga, investor Arab Saudi tertaik sektor lain untuk kegiatan penanaman modalnya di Indonesia. Mereka itu akan membangun kilang dan petrokimia. Tapi mungkin juga yang lain. Jadi ini urusan investasi,” ujarnya 

Teken 5 MOU

Arab Saudi berminati berinvestasi dalam berbagai bidang infrastruktur di Indonesia, seperti pembangunan jalan, pengadaan air bersih, perumahan. “Arab Saudi ingin terlibat aktif dalam konteks peinbangunan infrastruktur,” ujar Juru Bicara Kementerian Luar Negeri (Kemlu) Arrmanatha Nasir di Jakarta. Raja Salman juga akan membawa  sejumlah investor dan pengusaha karena dalam lawatan nanti juga akan ditandalangani kesepakatan pengerjaan sejumlah proyek Saudi di Indonesia, antara Iain investasi Saudi Aramco dalam perluasan proyek kilang Cilacap, Jawa Tengah senilai US$ 6 miliar.

Total nilai investasi sejumlah proyek infrastruktur yang disepakati pun sangat besar karena diperkirakan mencapai US$ 25 miliar atau Rp 300 triliun. Juru Bicara Kementerian Luar Negeri (Kemlu) Arrmanatha Nasir menilai kunjungan Raja Salman sangat bersejarah dan menjadi momentum yang sangat baik bagi Indonesia. Presiden Jokowi akan menyambut langsung kedatangan Raja Salman di Bandara Halim Perdana kusuma Jakarta

Surabaya Pagi, Page-1, Monday, Feb, 27, 2017

Energi Nusantara Open Opportunity for PLN



PT Energi Nusantara Red and White would open the opportunity for the State Electricity Company to utilize liquefied natural gas terminal and regasification facility to be built. The local energy company plans to build a liquefied natural gas terminal and regasification terminal in Bantaeng, South Sulawesi. The facility was built with integrated gas power plants "and steam (power plant) with a capacity of 600 megawatts (MW). President Director of Energi Nusantara Westana H. Wiraatmadja said the LNG receiving facility was actually built to sustain the operation of the power plant in Bantaeng hers.

However, it will open up opportunities for PLN to use gas infrastructure facilities that will be built if necessary. Because, it is committed to supporting the national energy supply security. Westana realize the magnitude of the gas demand in Indonesia has not been supported by adequate infrastructure. Therefore, he hoped the infrastructure built to help facilitate the distribution of gas.

"We are very willing to PLN asks if this facility for the distribution of gas, because it is currently the biggest buyer of LNG is the electricity sector," he said, Friday (24/2). Meanwhile, the facility will require an investment of US $ 580 million or equivalent to Rp 7.8 trillion.

Westana targeting these facilities can already be built early next year and operate in 2023, in parallel with the power plant. For funding, it claimed to have received a potential creditor. Unfortunately, he was not willing to mention the financial institution which has been targeted to disburse funds for the project.

According to the plan, the LNG terminal will have a storage tank size 120000-150000 m3, equivalent to 54,000 tons of LNG. He also said that it is possible to increase the capacity of the tank if necessary. "We expect LNG receiving terminal could be a hub for the distribution of LNG. Thus, the city gas network could also be developed, "said Wesrana.

In the development of integration projects, LNG facilities and power plant, Energy Nusantara took Sinland Development, a subsidiary of China Machinery Engineering Corporation (CMEC) as an engineering contractor. Westana explained, it wants to build a project that energy to meet the electricity demand in the Industrial Area Bantaeng (Kiba) increases.

That potential will be utilized given the smelter industry development in the region. Gas infrastructure construction investment is expected to reach US $ 70 billion-US $ 80 billion by 2050. Meanwhile, domestic energy needs is projected to continue growing at about 4% -5% per year.

Chairman of Indonesia Gas Society who also menjaadi as Plt. Pertamina Director Yenni Andayani said the growing domestic energy needs is due to the growing population of middle class and increasing gross domestic product. The growth rate is much higher tersebur with global energy consumption growth.

IN INDONESIAN

Energi Nusantara Buka Peluang bagi PLN

PT Energi Nusantara Merah Putih bakal membuka kesempatan bagi PT Perusahaan Listrik Negara untuk memanfaatkan terminal gas alam cair serta fasilitas regasifikasi yang akan dibangun. Perusahaan energi lokal tersebut berencana membangun terminal gas alam cair serta terminal regasifikasi di Bantaeng, Sulawesi Selatan. Fasilitas tersebut dibangun terintegrasi dengan pembangkit listrik tenaga gas” dan uap (PLTGU) berkapasitas 600 megawatt (MW). Presiden Direktur Energi Nusantara Westana H. Wiraatmadja mengatakan fasilitas penerimaan LNG tersebut sebenarnya dibangun untuk menopang beroperasinya PLTGU di Bantaeng miliknya.

Namun, pihaknya akan membuka peluang bagi PLN untuk menggunakan fasilitas infrastruktur gas yang akan dibangunnya itu jika diperlukan. Pasalnya, pihaknya berkomitmen untuk mendukung ketersediaan pasokan energi secara nasional. Westana menyadari besarnya kebutuhan gas di Indonesia belum ditopang oleh infrastruktur yang memadai. Oleh karena itu, dia berharap infrastruktur yang dibangun tersebut dapat membantu memfasilitasi penyaluran gas.

“Kami sangat bersedia kalau PLN meminta fasilitas ini untuk distribusi gas, karena memang saat ini pembeli terbesar LNG adalah sektor ketenagalistrikan,” katanya, Jumat (24/2). Adapun, fasilitas ini akan membutuhkan investasi sebesar US$ 580 juta atau setara Rp 7,8 triliun.

Westana menargetkan fasilitas ini sudah dapat dibangun pada awal tahun depan dan beroperasi pada 2023, paralel dengan pembangkit listrik. Untuk pendanaan, pihaknya mengaku telah mendapat kreditur potensial. Sayangnya, dia belum bersedia menyebut lembaga keuangan mana yang telah dibidik untuk mengucurkan dana bagi proyek tersebut.

Menurut rencana, terminal LNG tersebut akan memiliki ukuran tangki penyimpanan 120.000-150.000 m3 atau setara dengan 54.000 ton LNG. Dia juga mengatakan tidak menutup kemungkinan untuk menambah kapasitas tangki jika dibutuhkan. “Kami berharap LNG receiving terminal bisa jadi hub untuk distribusi LNG. Dengan demikian, jaringan gas kota juga bisa dikembangkan,” kata Wesrana. 

Dalam pengembangan proyek integrasi fasilitas LNG dan PLTG, Energi Nusantara menggandeng Sinland Development, anak usaha China Machinery Engineering Corporation (CMEC) sebagai kontraktor engineering. Westana menjelaskan, pihaknya berkeinginan membangun proyek energi tersebut untuk memenuhi kebutuhan listrik di Kawasan Industri Bantaeng (KIBA) yang semakin meningkat. 

Potensi tersebut dimanfaatkan mengingat akan dikembangkannya industri smelter di kawasan tersebut. Investasi pembangunan infrastruktur gas diprediksi mencapai US$70 miliar-US$ 80 miliar hingga 2050. Adapun, kebutuhan energi domestik diproyeksikan terus tumbuh sekitar 4%-5% per tahun.

Chairman Indonesia Gas Society yang juga menjaadi sebagai Plt. Direktur Pertamina Yenni Andayani mengatakan meningkatnya kebutuhan energi domestik ini disebabkan oleh pertumbuhan populasi kelas menengah dan meningkatnya produk domestik bruto.  Angka pertumbuhan tersebur jauh lebih tinggi dengan pertumbuhan konsumsi energi secara global. 

Bisnis Indonesia, Page-30, Monday, Feb, 27, 2017

Pertamina's Fund $ 3.7 Billion


Balikpapan Refinery Project 

PT Pertamina is targeting resources Balikpapan refinery project funding of up to US $ 3.7 billion since the project will enter the stage of laying the first stone or groundbreaking in the near future. According to the plan, there will be three refinery project which will enter the stage at this year's groundbreaking. First, the refinery capacity expansion project Balikpapan, East Kalimantan, which will enter the stage of groundbreaking in the first quarter / 2017. Second, the new refinery project in Tuban, East Java, in quarter III / 2017. Third, the Cilacap refinery capacity expansion project in the fourth quarter / 2017.

Finance Director of PT Pertamina Arief Budiman said the company is still looking for funding sources, especially for Balikpapan refinery project which entered the first groundbreaking. The project needs US $ 5.3 billion with 70% or US $ 5.7 billion external funding and is supported on the company because the project done alone without partners.

The investment will increase the refinery capacity of 260,000 barrels per day (bpd) to 360,000 bpd, as well as produce an additional 80,000 bpd of gasoline, diesel 70,000 bpd and 30,000 bpd of jet fuel is targeted for completion in 2019. "If the refinery in Balikpapan, we are looking for resources project funding. When funding was part of our equity, most probably from the project he said, Friday (24/2).

Aside from the development stage, the company will only seek external funding for projects which require funding of over US $ 2 billion. As an illustration, for Balongan refinery capacity expansion project needs US $ 1.27 billion, Cilacap US $ 4.5 billion, Tuban refinery is approximately US $ 13 billion, and Bontang approximately US $ 8 billion. If seen from the value of the smallest, according to Ariel, the company will fund its own projects Balongan refinery capacity additions, West Java.

Through the project, the refinery's capacity will rise from 125,000 bpd to 280,000 bpd. In the refinery project, he calls these funds will not be released at once. He estimated expenditure peak at the new refinery project occurred in 2018 and 2019 following the steps in building refineries.

IN INDONESIAN
Proyek Kilang Balikpapan

Pertamina Cari Dana US$ 3,7 Miliar


PT Pertamina mengincar sumber pendanaan proyek Kilang Balikpapan hingga US$ 3,7 miliar karena proyek itu akan memasuki tahap peletakan batu pertama atau groundbreaking dalam waktu dekat. Menurut rencana, akan ada tiga proyek kilang yang akan memasuki tahap groundbreaking pada tahun ini. Pertama, proyek penambahan kapasitas Kilang Balikpapan, Kalimantan Timur yang akan memasuki tahapan groundbreaking pada kuartal I/2017. Kedua, proyek kilang baru di Tuban, Jawa Timur pada kuartal III/2017. Ketiga, proyek penambahan kapasitas Kilang Cilacap pada kuartal IV/2017.

Direktur Keuangan PT Pertamina Arief Budiman mengatakan, pihaknya masih mencari sumber pendanaan proyek khususnya untuk Kilang Balikpapan yang masuk ke tahap groundbreaking terlebih dahulu. Proyek tersebut membutuhkan dana US$ 5,3 miliar dengan 70% di antaranya atau US$ 5,7 miliar didukung pada pendanaan dan eksternal perseroan karena proyek dikerjakan sendiri tanpa mitra.

Investasi tersebut akan menambah kapasitas kilang dari 260.000 barel per hari (bph) menjadi 360.000 bph, serta menghasilkan produk tambahan 80.000 bph gasoline, 70.000 bph diesel, dan 30.000 bph avtur yang ditargetkan selesai pada 2019. “Kalau kilang di Balikpapan, kami lagi mencari sumber pendanaan proyek. Kalau pendanaan itu sebagian dari ekuitas kami, sebagian mungkin dari project  ujarnya, Jumat (24/2).

Selain dari perkembangan tahapannya, perseroan hanya akan mencari sumber pendanaan eksternal untuk proyek yang membutuhkan dana di atas US$ 2 miliar. Sebagai gambaran, untuk proyek penambahan kapasitas Kilang Balongan yang membutuhkan dana US$ 1,27 miliar, Kilang Cilacap US$ 4,5 miliar, Kilang Tuban sekitar US$ 13 miliar, dan Kilang Bontang sekitar US$ 8 miliar. Jika dilihat dari nilai yang terkecil, menurut Arief, perseroan akan mendanai sendiri proyek penambahan kapasitas Kilang Balongan, Jawa Barat. 

Melalui proyek tersebut, kapasitas kilang akan naik dari 125.000 bph menjadi 280.000 bph. Dalam proyek kilang, dia menyebut dana tersebut tak akan dikeluarkan sekaligus. Dia memperkirakan pengeluaran puncak pada proyek kilang baru terjadi pada 2018 dan 2019 mengikuti tahapan pembangunan kilang.

Bisnis Indonesia, Page-30, Monday, Feb, 27, 2017

Wednesday, March 1, 2017

Chevron Remain Interested in Block Rokan and IDD Project



Chevron Indonesia is currently evaluating contract extension Rokan Block located in the province of Riau. Understandably, the contract term oil and gas blocks located in Riau Province is going to run out in 2021 later. According to Coordinating Minister for maritime Luhut Binsar Pandjaitan, Chevron continues to actively associated with related government contract extension that block. "It is being discussed with the Minister of Energy and Mineral Resources Chevron Ignatius Jonan and they're counting," said Luhut, Friday (24/2).

In addition Rokan Block, Chevron, apparently still interested in continuing the project Indonesia Deepwater Development (IDD). For information, in the first phase of exploration, Chevron has produced as much as 4,000 barrels of condensate per day and 110 million cubic feet of gas from the field past the Pacific in August 2016. "They (Chevron) is already selling gas to Thailand and has been reporting on progress, said Luhut. Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs Chevron Indonesia, did not say much." We have to update some of the government's decision to Chevron.

IN INDONESIAN

Chevron Tetap Berminat di Blok Rokan dan Proyek IDD



Chevron Indonesia sedang mengevaluasi perpanjangan kontrak Blok Rokan yang berada di Provinsi Riau. Maklum, masa kontrak blok migas yang berada di Provinsi Riau ini bakal habis pada tahun 2021 nanti. Menurut Menteri Koordinator Bidang Kemaritiman Luhut Binsar Pandjaitan, Chevron terus aktif berhubungan dengan pemerintah terkait perpanjangan kontrak blok tersebut. "Itu sedang dibicarakan Chevron dengan Menteri ESDM Ignasius Jonan dan mereka sedang menghitung," kata Luhut, Jumat (24/2).

Selain Blok Rokan, Chevron, rupanya tetap berminat untuk melanjutkan proyek Indonesia Deepwater Development (IDD). Sebagai informasi, di tahap pertama eksplorasi, Chevron sudah memproduksi kondensat sebanyak 4.000 barel per hari dan 110 juta kaki kubik gas dari lapangan Bangka pada Agustus 2016 silam. "Mereka (Chevron) sudah menjual gas ke Thailand dan sudah melaporkan perkembangan pembangunan, lanjut Luhut. Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs Chevron Indonesia, tidak banyak berkomentar. "Kami harus update beberapa keputusan Chevron ke pemerintah.

Kontan, Page-14, Monday, Feb, 27, 2017

Signing Delayed



The government postponed the signing of a cooperation contract oil and gas blocks to be offered in 2016 through direct deals and the regular auction is still reviewing options for the implementation of production sharing contracts (production sharing contract) gross split.

Meanwhile, since mid 2016 the government did not sign any cooperation contracts on new oil and gas blocks of 14 work areas offered to investors in the upstream oil and gas. Despite offering a new scheme to attract investors by offering revenue sharing, exploration commitments, and the signature bonus, up to now no one has announced the winner.

Seven blocks offered directly (direct offer) that the West Hill (Offshore Riau Islands), Batu Gajah Two (Onshore Jambi), Kasongan Sampit (Onshore Central Kalimantan), Powerful (Offshore Java Sea), Ebuny (Offshore Southeast Sulawesi), Onin (Onshore-Offshore West Papua) and West Kaimana (Onshore Offshore West Papua). 

     Meanwhile, seven blocks offered through the regular auction scheme, namely South CPP (Onshore Riau), Stuemana I (Offshore Makassar Strait), SE Mandar (Offshore South Sulawesi-South West), North Arguni (Onshore Papua Barat). Kasuri II (Onshore Papua Barat), Manakarra Mamuju (Offshore Makassar Strait and Oti (Offshore East Kalimantan).

Director of Upstream Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Single recognize the government needs additional time to announce the winners of a new working area. From the last target was announced in January 2017, the possibility of a new work area winners will be announced in March 2017.

According to him, with the publication of Decree No. 8/2017 on Contracts Gross Split, the course offers a new oil and gas blocks to adjust. Nevertheless, the government will offer them first to the investors who have followed direct deals and auctions, regular gross split whether to use or not.

In gross schemes split, the government determines the revenue sharing basis between the government and the contractor of 57:43 to 52:48 for the structure of the oil and gas structures. Contractors likely to receive additional split adjusted risk in the field of geographic factors to geological. "It's not [necessarily] in the award of March, because they [investors] do not necessarily want [gross disposable split]," he said recently.

AMENDMENT SCHEME

With the issuance of a regulation governing the implementation of the new scheme, said Tunggal, the scheme set out in the working area of ​​the deals are no longer used, of course, upon the agreement between the government and investors. He considered at this stage schema changes can still be made for cooperation contract has not been signed. 

    Investors are allowed to weigh beforehand schemes which provide more benefits, including direct offers to the participants who have priority for doing a joint study or joint study on a particular work area. The reason, the bidding process has been started since 2016 before the advent of the options and the emergence of a regulation on gross split.

"Direct appointment that means yet a signature. Therefore, with the new split, offered by the new system. However, it should be coordinated, "he said. When compared with last year, the number of work areas that are of interest lower. Last year, there were 12 work areas that are of interest to the eight conventional oil and gas working areas.

In 2017, targeted investment in upstream oil and gas nationwide reach US $ 13 billion, up 7% from 2016 amounting to US $ 12.01 billion.

IN INDONESIAN

Penandatanganan Ditunda


Pemerintah menunda penandatanganan kontrak kerja sama blok minyak dan gas bumi baru yang ditawarkan pada 2016 melalui penawaran langsung dan lelang reguler karena masih mengkaji opsi penerapan kontrak bagi hasil (production sharing contract) gross split.

Adapun, sejak medio 2016 pemerintah tidak menandatangani satu pun kontrak kerja sama atas blok migas baru dari 14 wilayah kerja yang ditawarkan kepada investor hulu migas. Kendati telah menawarkan skema baru untuk menarik minat investor melalui penawaran bagi hasil, komitmen eksplorasi, dan bonus tanda tangan, hingga kini belum ada satupun yang diumumkan pemenangnya.

Tujuh blok yang ditawarkan secara langsung (direct offer) yakni Bukit Barat (Offshore Kepulauan Riau), Batu Gajah Dua (Onshore Jambi), Kasongan Sampit (Onshore Kalimantan Tengah), Ampuh (Offshore Laut Jawa), Ebuny (Offshore Sulawesi Tenggara), Onin (Onshore-Offshore Papua Barat) dan West Kaimana (Onshore Offshore Papua Barat). 

    Sementara itu, tujuh blok ditawarkan melalui skema lelang reguler, yakni South CPP (Onshore Riau) , Stuemana I (Offshore Makassar Strait), SE Mandar (Offshore Sulawesi Selatan-Sulawesi Barat), North Arguni (Onshore Papua Barat). Kasuri II (Onshore Papua Barat), Manakarra Mamuju (Offshore Makassar Strait dan Oti (Offshore Kalimantan Timur).

Direktur Pembinaan Usaha Hulu Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Tunggal mengakui pemerintah memerlukan tambahan waktu untuk mengumumkan pemenang wilayah kerja baru. Dari target terakhir diumumkan pada Januari 2017, kemungkinan pemenang wilayah kerja baru akan diumumkan pada Maret 2017.

Menurutnya, dengan terbitnya Peraturan Menteri No. 8/2017 tentang Kontrak Gross Split, hasil penawaran blok migas baru tentunya mengalami penyesuaian. Kendati demikian, pemerintah akan menawarkan terlebih dahulu kepada investor yang telah mengikuti penawaran langsung dan lelang, reguler apakah akan menggunakan gross split atau tidak. 

Pada skema gross split, pemerintah menentukan bagi hasil dasar antara pemerintah dan kontraktor sebesar 57:43 untuk struktur minyak dan 52:48 untuk struktur gas. Kontraktor berpeluang mendapat split tambahan yang disesuaikan risiko di lapangan dari faktor geografis hingga geologisnya. "Belum [tentu] di award Maret, karena mereka [investor] belum tentu mau [pakai gross split],” ujarnya, baru-baru ini.

PERUBAHAN SKEMA

Dengan diterbitkannya beleid yang mengatur penerapan skema baru, tutur Tunggal, skema yang ditetapkan pada penawaran wilayah kerja tak lagi digunakan, tentunya atas kesepakatan antara pemerintah dan investor. Dia menilai pada tahap ini perubahan skema masih bisa dilakukan karena kontrak kerja sama belum diteken. 

    Investor diperbolehkan menimbang terlebih dahulu skema mana yang memberikan keuntungan lebih, termasuk bagi para peserta penawaran langsung yang memiliki prioritas karena telah melakukan Studi bersama atau joint study pada wilayah kerja tertentu. Pasalnya, proses penawaran sudah dimulai sejak 2016 sebelum munculnya opsi dan munculnya beleid tentang gross split.

“Penunjukan langsung itu artinya belum tanda tangan. Maka dari itu, dengan split baru, ditawarkan dengan sistem baru. Akan tetapi, perlu dikoordinasikan,” katanya. Bila dibandingkan dengan tahun lalu, jumlah wilayah kerja yang diminati lebih rendah. Tahun lalu, terdapat 12 wilayah kerja yang diminati dengan delapan wilayah kerja migas konvensional. 

Pada 2017, ditargetkan investasi di bidang hulu minyak dan gas bumi secara nasional mencapai angka US$ 13 miliar atau naik 7% dari 2016 yang sebesar US$ 12,01 miliar. 

Bisnis Indonesia, Page-30, Monday, Feb, 27, 2017

Saudi Arabia's Looking Buyer Saudi Aramco

Investment Offer

King Salman bin Abdul Aziz Al-Saud is expected to bring great mission during a visit to a number of countries in Asia, including Indonesia. The mission is to offer Ararnco Saudi shares that will be released in 2018. Indications are getting stronger after Saudi Arabia's Minister of Energy and CEO of Saudi Aramco, Khalid al-Falih participate in the delegation of the King of Saudi Arabia.

Khalid al-Falih's participation in a foreign trip outside the Middle East, North Africa and the US has become the first time since 2015. "The official Saudi Aramco interested in offering shares by 5% to investors in Asia, which will be released through the IPO process in 2018, "said one Saudi official who declined to be named, was quoted as saying by Reuters on Sunday (26/2).

Economist Indef Heri Ahmad Firdaus assess the possibility of State Petro dollar would target the state-owned enterprises, namely Pertamina, as the target buyers of shares Saudi Aramco. "I think it is unlikely to be offered to private investors. They may be offered to the Government of Indonesia first, to later be directed to Pertamina, which has a business similar to Aramco, "he said.

Meanwhile, economist at PT Bank Permata Tbk. Josua Pardede precisely estimate the cooperation of non-oil sector as the main focus of discussion between the two countries. Saudi Arabia is selected in offering shares in Aramco. A visit to Asia, in addition to Indonesia, also will be heading to Japan and China. So I think the Chinese or Japanese investor who became the main target, "he said.

Chairman of the Chamber of Commerce and Industry (Kadin) Indonesia Roslan P. Roeslani regard, the opportunity to offer Saudi Aramco corporate action is very thin. According to him, Indonesia will instead try to attract more investment funds in the form of a Saudi Arabian businessman. "Very unlikely. Instead we are in a business meeting March 2 will be more trying to attract investment from them. The main non-oil sectors such as tourism, oil refinery infrastructure or handicraft, "he said.

Nevertheless, the planned IPO of oil and gas giant Saudi Aramco, was expected to make the risk of capital outflows (capital outflow) from the Indonesian market. "Well, if she would come pre-IPO marketing Aramco, then it will not affect the IDX. Indeed, there is only a capital outflow for stock Aramco, "said Edwin J. Sebayang, Head of Research at PT. MNC Securities.

Nevertheless, the risk of capital outflow depends on how interested local investors to buy IPO shares Aramco. "It depends on the offer price and the valuation of the stock." Meanwhile, a senior analyst of PT Bina Artha Securities Parama Reza Priyambada reveal still too early to conclude that there is capital outflow. "We have to see first what size they will IPO and how their performance so they can reassure our investors," he said.

IN INDONESIAN
Penawaran Investasi

Arab Saudi Cari Pembeli Saudi Aramco

Raja Salman bin Abdul Aziz Al-Saud diperkirakan membawa misi besar dalam kunjungannya ke sejumlah negara di Asia, termasuk Indonesia. Misi tersebut adalah menawarkan saham Saudi Ararnco yang akan dilepas pada 2018.  Indikasi tersebut makin kuat setelah Menteri Energi Arab Saudi sekaligus CEO Saudi Aramco Khalid al-Falih turut serta dalam delegasi Raja Arab Saudi.

Keikutsertaan Khalid al-Falih dalam kunjungan ke luar negeri di luar Timur Tengah, Afrika Utara dan AS ini menjadi yang pertama kalinya sejak 2015. “Para pejabat Arab Saudi tertarik menawarkan saham Aramco sebesar 5% ke investor Asia, yang rencananya akan dilepas melalui proses IPO pada 2018,” kata salah satu pejabat Arab Saudi yang enggan disebutkan namanya, sebagaimana dikutip dari Reuters, Minggu (26/2).

Ekonom Indef Ahmad Heri Firdaus menilai kemungkinan Negeri Petro Dolar tersebut akan menyasar perusahaan BUMN, yakni Pertamina, sebagai target pembeli saham Saudi Aramco. “Saya rasa kecil kemungkinan untuk ditawarkan ke investor swasta. Mereka mungkin akan tawarkan ke Pemerintah Indonesia dulu, untuk nanti di arahkan ke Pertamina, yang memiliki bisnis hampir serupa dengan Aramco,” katanya.

Sementara itu, ekonom PT Bank Permata Tbk. Josua Pardede justru memperkirakan kerja sama sektor non-migas sebagai fokus utama diskusi bilateral kedua negara. Arab Saudi sangat selected dalam menawarkan saham di Aramco. Kunjungan ke Asia ini, selain ke Indonesia, juga akan menuju ke Jepang dan China. Jadi saya pikir investor China atau Jepang yang jadi sasaran utamanya,” ujarnya.

Ketua Kamar Dagang dan Industri (Kadin) Indonesia Roslan P. Roeslani memandang, peluang untuk penawaran rencana aksi korporasi Saudi Aramco tersebut sangat tipis. Menurutnya, Indonesia justru akan lebih banyak berusaha menarik dana dalam bentuk investasi dari pengusaha Arab Saudi. “Sangat kecil kemungkinannya. Justru kita dalam business meeting 2 Maret akan lebih banyak berusaha menarik investasi dari mereka. Utamanya sektor non-migas seperti pariwisata, infrastruktur kilang minyak atau handycraft,” katanya.

Kendati demikian, rencana IPO raksasa migas asal Arab Saudi, Aramco, diperkirakan membuat adanya risiko aliran dana keluar (capital outflow) dari pasar Indonesia. “Nah, kalau dia datang mau pre-marketing IPO saham Aramco, maka tidak akan berdampak ke IDX. Justru yang ada hanya capital outflow untuk saham Aramco,” ujar Edwin J. Sebayang, Head of Research di PT. MNC Securities. 

Namun demikian, risiko capital outflow tersebut sangat tergantung dari seberapa tertariknya investor lokal untuk membeli saham IPO Aramco. “Ini tergantung harga penawaran  dan valuasi saham tersebut.” Sementara itu, Senior Analis PT Bina Artha Parama Sekuritas Reza Priyambada mengungkapkan masih terlalu awal untuk bisa menyimpulkan akan adanya capital outflow. "Kita harus lihat dulu berapa size mereka akan IPO dan bagaimana kinerja mereka sehingga bisa meyakinkan investor kita," katanya.

Bisnis Indonesia, Page- 1, Monday, Feb, 27, 2017

Bontang Refinery Interested Dozens Investors



There are seven major oil companies want to participate in managing the Bontang refinery.

The construction project of a new oil refinery in Bontang, East Kalimantan, attractive to investors. PT Pertamina said,
there are already more than 50 companies from home and abroad who want to take part in Bontang refinery project.

Director of Processing and Petrochemical Pertamina megaproject Hardadi Rachmat said, these companies will be present in the project expose or exposure to grass root refinery project (GRR) Bontang on Tuesday (28/2). He said, based on the interim assessment, the company has dozens of world-class competence for processing and petrochemical megaproject.

"This is a positive signal, not only for the project GRR Bontang, but also the investment climate in Indonesia is still very attractive in this sector," said Hardadi when giving a press conference at the headquarters of Pertamina, Jakarta. Hardadi explained, prospective partners Bontang refinery should have four main characteristics.

First, have a strong track record in the oil industry, its main operational reliability and execution of the project. Second, it can adjust to the structure and business model of the desired Pertamina. Third, have a strong desire to accelerate the project and completed it in 2023. Recently, potential partners should be able to provide an attractive offer for the project GRR Bontang. "We are targeting, you can choose a strategic partner on April 28, 2017," he said.

Hardadi said Pertamina immediately conduct a feasibility study together with a strategic partner after a banking decision. The feasibility study is targeted for completion in early 2018 once completed the creation of the consortium. Moreover, it will set the Preliminary Investment Decision-1 which illustrates the expected initial investment Bontang refinery project.

Bontang plant is targeted to process crude oil of about 300 thousand barrels per day. Implementation of the construction of a new refinery in Bontang is a follow up of the Minister of Energy and Mineral Resources No. 7935 K / 10 / MEM / 2016 dated December 9, 2016 which is assigned Pertamina to build and operate an oil refinery in Bontang, East Kalimantan.

In the early stages, Pertamina will enter with a minimum ownership of approximately five to 25 percent. However, Pertamina has a right or an option to increase its holdings in the period to be agreed upon.

Hardadi explained, strategic partners are expected to play a role in the procurement of crude and prepare funding. In addition, it is expected to have kemarnpuan in marketing products that are not absorbed in the domestic market to foreign markets, such as Australia, Papua New Guinea, New Zealand, and the Philippines.

Pertamina already has positive experience in partnering with international companies. SK Energy, South Korea, in partnership with Pertamina for projects Lube Base Group III (synthetic lubricant) since 2007 in the RU II Dumai refinery. Pertamina also partnered with Russia's Rosneft Oil Company and Saudi Aramco Tuban GRR to Cilacap refinery revitalization project. "We are open to receive the support of international and national partners," said Hardadi.

Hardadi explained, Bontang serve as the location of new refinery construction one of its objectives to facilitate fuel distribution in eastern Indonesia. He said Pertamina has previously focused mapping project site in eastern Indonesia. "Of all cities, Bontang best choice," said Hardadi.

Pertamina set up around 460 hectares of land for the construction of the Bontang plant. Bontang plant is targeted to operate in 2023. SVP Business Development Pertamina Iriawan Yulianto explained, participants exposure to the Bontang refinery project invitations and announcements made through national and international media. There are seven strategic partner of the world's oil companies have expressed readiness to follow the project bidding, while about 50 companies of various types obtained through media announcements.

IN INDONESIAN

Kilang Bontang Di minati Puluhan Investor


Ada tujuh perusahaan minyak dunia ingin ikut mengelola kilang Bontang.

Proyek pembangunan kilang minyak baru di Bontang, Kalimantan timur, diminati investor. PT Pertamina menyatakan, sudah ada lebih dari 50 perusahaan dari dalam dan luar negeri yang ingin mengambil bagian dalam proyek kilang Bontang.

Direktur Megaproyek Pengolahan dan Petrokimia Pertamina Rachmad Hardadi mengatakan, perusahaan-perusahaan tersebut akan hadir dalam project expose atau paparan proyek grass root refinery (GRR) Bontang pada Selasa (28/2). Dia mengatakan, berdasarkan penilaian sementara, puluhan perusahaan tersebut memiliki kompetensi kelas dunia untuk megaproyek pengolahan dan petrokimia.

“Ini merupakan sinyal positif, tidak hanya bagi proyek GRR Bontang, namun juga iklim investasi di Indonesia yang masih sangat menarik di sektor ini,” kata Hardadi saat memberikan keterangan pers di kantor pusat Pertamina, Jakarta. Hardadi menjelaskan, calon mitra kilang Bontang harus memiliki empat karakteristik utama. 

Pertama, memiliki rekam jejak kuat pada industri pengolahan minyak, utamanya kehandalan operasional dan eksekusi proyek. Kedua, dapat menyesuaikan dengan struktur dan model bisnis yang dikehendaki Pertamina. Ketiga, memiliki keinginan kuat untuk percepatan proyek dan menyelesaikannya pada 2023. Terakhir, calon mitra harus dapat memberikan penawaran yang menarik bagi proyek GRR Bontang. “Kami menargetkan, dapat memilih mitra strategis pada 28 April 2017,” ujarnya.

Hardadi mengatakan, Pertamina segera melakukan studi kelayakan perbankan bersama mitra strategis setelah ada keputusan. Studi kelayakan ditargetkan selesai pada awal 2018 sekaligus menuntaskan pembentukan konsorsium. Selain itu, akan ditetapkan Preliminary-Investment Decision 1 yang menggambarkan perkiraan awal investasi proyek kilang Bontang.

Kilang Bontang ditargetkan mampu mengolah minyak mentah sekitar 300 ribu barel per hari. Pelaksanaan pembangunan kilang baru di Bontang ini merupakan tindak lanjut dari Keputusan Menteri Energi dan Sumber Daya Mineral No 7935 K/ 10 / MEM /2016 tanggal 9 Desember 2016 yang menugaskan Pertamina untuk membangun dan mengoperasikan kilang minyak di Bontang, Kalimantan Timur.

Pada tahap awal, Pertamina akan masuk dengan minimal kepemilikan sekitar lima sampai 25 persen. Tapi, Pertamina mempunyai hak atau pilihan untuk meningkatkan kepemilikan dalam periode yang akan disepakati.

Hardadi menjelaskan, mitra strategis diharapkan berperan dalam pengadaan crude dan menyiapkan pendanaan. Selain itu, diharapkan memiliki kemarnpuan dalam memasarkan produk yang tidak terserap di pasar dalam negeri ke pasar luar negeri, seperti Australia, Papua Nugini, Selandia Baru, dan Filipina.

Pertamina sudah mempunyai pengalaman positif dalam bermitra dengan perusahaan intemasional. SK Energy, Korea Selatan, bermitra dengan Pertamina untuk proyek Lube Base Grup III (pelumas sintetis) sejak 2007 di kilang RU II Dumai. Pertamina juga bermitra dengan Rosneft Oil Company Russia untuk GRR Tuban dan Saudi Aramco untuk proyek revitalisasi kilang Cilacap. “Kami terbuka untuk menerima dukungan mitra internasional maupun nasional,” ujar Hardadi.

Hardadi menjelaskan, Bontang dijadikan sebagai lokasi pembangunan kilang baru salah satu tujuannya agar mempermudah distribusi BBM di wilayah Indonesia Timur. Dia mengatakan, Pertamina sebelumnya memang fokus melakukan pemetaan lokasi proyek di Indonesia Timur. “Dari seluruh kota, Bontang pilihan terbaik,” kata Hardadi.

Pertamina menyiapkan lahan sekitar 460 hektare untuk pembangunan kilang Bontang. Kilang Bontang ditargetkan beroperasi pada 2023. SVP Business Development Pertamina Iriawan Yulianto menjelaskan, peserta paparan proyek kilang Bontang dilakukan melalui undangan dan pengumuman media nasional maupun intemasional. Ada tujuh mitra strategis dari perusahaan minyak dunia yang menyatakan siap mengikuti penawaran proyek, sedangkan sekitar 50 perusahaan dari berbagai tipe didapatkan melalui pengumuman media.

Republika, Page-5, Saturday, Feb, 25, 2017

Jusuf Kalla: Saudi Arabia Want Non-Oil and Gas Investments



Vice President Jusuf Kalla lmengatakan Kingdom of Saudi Arabia wants to develop investment outside the oil and gas sector. That, said Kalla, an economic vision of the kingdom until 2030. "Indonesia has much to offer. Investment Opportunities in the Tourism sector, finance, and banking. There is a feeling he (Saudi Arabia) investment in the refinery (refinery), "he said at the Vice Presidential Palace Complex, Jakarta, yesterday.

Kalla explained the coming of the King of Saudi Arabia Salman bin Abdulaziz al-Saud, in early March, to discuss bilateral salma work, while replying to the President's visit Indonesia before. The plan, the Kingdom of Saudi delegation reached 1,500 people.

According to Kalla, the friendly relations of Indonesia-Saudi Arabia is very well established. But cooperation in the economic field has not been explored optimally. During this time a relationship Indonesia Saudi Arabia is thicker in the areas of religious, social, and pendidjkan.

Cabinet Secretary Pramono Agung said Raja Salman will sign an investment agreement worth US $ 7 billion. One of them came from Saudi Arabian oil company, Saudi Aramco. The company cooperates with PT Pertamina to develop the Cilacap refinery. Pramono rnenyebut total refinery construction investment reached US $ 6 billion.

"In addition there will be other oil and gas projects signed, something like $ 1 billion. as well as other projects, "he said in a press release. Pertamina and Aramco has signed heads of agreement (HOA) Cilacap refinery project
on 26 November 2016 in Cilacap, Central Java

As for Pertamina investment opportunities in Saudi Arabia another project, In addition to the Cilacap refinery. One of them, according to Director of Processing and Petrochemical megaproject Rachmad Hardadi Pertamina, the project Bontang in East Kalimantan: Rachmat explained Pertamina is looking for partners to build the Bontang plant. "Opportunities widely open to anyone. All who enter will be sorted and selected

IN INDONESIAN

Jusuf Kalla : Arab Saudi Ingin Investasi Non-Migas


Wakil Presiden Jusuf Kalla lmengatakan Kerajaan Arab Saudi ingin mengembangkan investasi di luar sektor minyak dan gas. Hal itu, kata Kalla, merupakan visi ekonomi kerajaan hingga 2030. “Indonesia menawarkan banyak hal. Peluang investasi di sektor Wisata, keuangan, dan perbankan. Juga ada keinginan dia (Arab Saudi) investasi di refinery (kilang minyak),” kata dia di Kompleks Istana Wakil Presiden, Jakarta, kemarin.

Kalla menjelaskan kedatangan Raja Arab Saudi Salman bin Abdulaziz al-Saud, pada awal Maret nanti, untuk membicarakan kerja salma bilateral, sekaligus membalas kunjungan Presiden Indonesia sebelumnya. Rencananya, rombongan delegasi Kerajaan Arab mencapai 1.500 orang.

Menurut Kalla, hubungan persahabatan lndonesia-Arab Saudi terjalin amat baik. Tapi kerja sama di bidang ekonomi belum dieksplorasi maksimal. Selama ini hubungan lndonesia Arab Saudi lebih kental di bidang keagamaan, sosial, dan pendidjkan.  

Sekretaris Kabinet Pramono Anung mengatakan Raja Salman akan menandatangani perjanjian investasi senilai US$ 7 miliar. Salah satunya berasal dari perusahaan minyak Arab Saudi, Saudi Aramco. Perusahaan bekerja sama dengan PT Pertamina untuk mengembangkan kilang Cilacap. Pramono rnenyebut total investasi pembangunan kilang tersebut mencapai US$ 6 Miliar.

“Selain itu akan ada proyek lain yang migas ditandatangani, kurang- lebih senilai US$ 1 miliar. serta proyek-proyek lainnya,” katanya dalam keterangan pers. Pertamina dan Aramco telah menanda-tangani head of agreement (HOA) proyek kilang Cilacap pada 26 November 2016 di Cilacap, Jawa Tengah

Adapun Pertamina membuka peluang investasi Arab Saudi di proyek lain, Selain kilang Cilacap. Salah satunya, menurut Direktur Megaproyek Pengolahan dan Petrokimia Pertamina Rachmad Hardadi, proyek kilang Bontang di Kalimantan Timur: Rachmad menjelaskan Pertamina sedang mencari mitra untuk membangun kilang Bontang. “Peluang dibuka secara luas bagi siapa pun. Semua yang masuk akan dipilah dan dipilih.

koran tempo, Page-2, Saturday, Feb, 25, 2017

Pertamina may pick Local Partner for Bontang Refinery Project



State-owned energy firm Pertamina has decided to include domestic investors, in addition to the usual list of international firms, in the upcoming screening of potential partners for the construction of its new refinery in Bontang, East Kalimantan. Pertamina processing and petrochemical megaproject director Rachmad Hardadi said the decision to allow domestic players to partake in the project’s expose, scheduled for Feb. 28, was intended to increase the use of local industrial content in the construction ofthe refinery. 

ln previous projects, such as the Tuban refinery construction in East Java, Pertamina stipulated that its strategic partner should have a crude oil reserve of 50 years, which was one of the reasons it granted the role to Russia’s Rosneft Oil Company. However, Rachmad said that Pertamina now had a more optimistic view that crude oil would be easily available as long as investors had sufficient capital, opening up opportunities for a consortium of local firms to join the Bontang project.

“[Our partner] may end up being a consortium, and not just a single firm. This will provide a better chance for domestic investors to contribute to this project, especially since we want to high-light the importance of local industrial content,” he said during a press conference on Friday.

The Bontang refinery is expected to be completed by 2023 with a production capacity of 300,000 barrels of oil per day (bopd), with all of the gasoline produced to be absorbed domestically while there will be a 35 percent excess of diesel and jet fuel, which Pertamina hopes to export. The construction of the facility will need an investment of between US$ 8 billion and $12 billion, much lower than the initial estimate of $15 billion. Pertamina hopes that the new refinery will be integrated with a nearby liqueied natural gas (LNG) processing facility belonging to Pertamina subsidiary PT Badak NGL.

The Bontang project recently underwent a scheme change that saw Pertamina appointed to Carry out the project as opposed to the previous public-private partnership (PPP) scheme. So far, seven out of 37 invited companies have confirmed their attendance at next Tuesday’s project expose, and around 50 other potential investors have signed up to attend. Pertamina hopes to have selected a partner by the end of April. The partner will have to submit an account commitment of $5 million initially and another $10 million in the first quarter of 2018.

The construction of the Bontang refinery is part of Pertamina’s larger plan to double its refined fuel production capacity within the next decade in order to fulfil national demand and cut down on the high volume of refined fuel imports. Pertamina has predicted that the country will be self-sufficient by 2023 if it manages to complete the construction and upgrades of five refineries with a total production capacity of 1.8 million bopd from the current 1 million bopd.

lt hopes to further boost the capacity to 2 million bopd by 2025 with the upgrade of a sixth refinery in Dumai, Riau. At present, the country’s refineries e all of which belong to Pertamina -are only capable of producing around 830,000 bopd, a little over half of the current refined fuel demand. Pertamina projects that by 2023, refined fuel demand will reach around 1.07 million bopd, less than the national production capacity. 

Meanwhile, ReforMiner lnstitute researcher Pri Agung Rakhmanto said that Pertamina’s decision to increase the use of local industrial content in the Bontang project was a good idea so long as the firm could guarantee the quality of the supply. Furthermore, procuring local industrial content may help speed up the construction process as not as much equipment would have to be imported. 

“If Pertamina has already announced that it would like to use more local content then they need to ensure that local manufacturers can provide it at a sufficiently high quality and on time in order to prevent delays or safety problems,” he told The Jakarta Post on Friday

Jakarta Post, Page-13, Saturday, Feb, 25, 2017