The Masela Development Project Comes Soon

The Masela Block gas development project in Maluku, which has 10.7 trillion cubic feet of gas reserves, will begin shortly after. Special Unit for Upstream Oil and Gas Business Activities has instructed contractors to prepare the initial stages of project planning and design.

The government will help to find buyers of natural gas from the Masela Block. Based on a letter from the Special Rapporteur for Upstream Oil and Gas Business (SKK Migas), the contractor is required to prepare the engineering pre-engineering up to the end (FEED). This activity also includes the projection of the budget required And the procurement of goods and services by direct selection.

"Pre-FEED is being prepared as well as possible with the right way, including financing about this project," said Usman Slamet's Senior Communication Manager at Friday (16/6), in Jakarta.

Inpex Corporation and Shell are the Masela Block developer contractors. Regarding the absorption of natural gas from the Masela Block, Energy and Mineral Resources (EMR) vice minister Arcandra Tahar said the government will help contractors find the buyers of the gas.

"The government will offer who is interested in absorbing natural gas from the Masela Block. The commitment must be a gas sale agreement, not enough if only a memorandum of understanding, "said Arcandra.

Carefully calculate

Executive Director of ReforMiner Institute Komaidi Notonegoro said the certainty of the industry to buy natural gas from Masela Block is important, Gas production is done after there are buyers. Government and investors must be careful

Calculates the gas pipe uptake produced from the Masela Block. The Masela Block contract was signed in 1998.

Inpex from Japan holds 65 percent of the shares and Shell from the Netherlands holds 35 percent. The Masela Block contract expires in 2028. Under the agreement, the government increased the contractor's time or operation period in the Masela Block for seven years in lieu of the change of the Masela Block gas development plan, which was at sea on the ground.

IN INDONESIAN

Proyek Pengembangan Masela Segera di Mulai  

Proyek pengembangan gas Blok Masela di Maluku, yang memiliki cadangan gas 10,7 triliun kaki kubik, segera dimulai setelah sekian lama terkatung-katung. Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi telah memerintahkan kontraktor mempersiapkan tahap awal perencanaan dan desain proyek. 

Pemerintah akan membantu mencarikan pembeli gas bumi dari Blok Masela. Berdasarkan surat dari Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), kontraktor diminta segera menyiapkan pradesain rekayasa awal sampai akhir (FEED). Kegiatan ini sekaligus mencakup proyeksi anggaran yang dibutuhkan Serta pengadaan barang dan jasa dengan cara pemilihan langsung. 

”Pre-FEED sedang disiapkan sebaik-baiknya dengan cara yang benar, Termasuk soal pembiayaan mengenai proyek ini,” ujar Senior Communication Manager lnpex Corporation Usman Slamet, Jumat (16/6), di Jakarta.

Inpex Corporation dan Shell adalah kontraktor pengembang Blok Masela. Mengenai penyerapan gas bumi dari Blok Masela, wakil menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, pemerintah akan membantu kontraktor mencarikan pembeli gas tersebut. 

”Pemerintah yang akan menawarkan siapa yang berminat menyerap gas bumi dari Blok Masela. Wujud komitmennya harus berupa perjanjian jual-beli gas, tidak cukup kalau hanya nota kesepahaman,” kata Arcandra. 

Cermat menghitung 

Direktur Eksekutif ReforMiner Institute Komaidi Notonegoro mengatakan, kepastian industri membeli gas bumi dari Blok Masela adalah hal yang penting, Produksi gas dilakukan setelah ada pembeli. Pemerintah dan investor harus cermat menghitung serapan gas pipa yang diproduksi dari Blok Masela. Kontrak Blok Masela ditandatangani pada 1998. 

Inpex dari Jepang menguasai 65 persen saham dan Shell dari Belanda menguasai 35 persen. Kontrak Blok Masela berakhir 2028. Berdasarkan kesepakatan, pemerintah menambah waktu atau masa operasi kontraktor di Blok Masela selama tujuh tahun sebagai pengganti perubahan rencana pengembangan gas Blok Masela, yang semula di laut menjadi di darat. 

Kompas, Page-17, Saturday, June 17, 2017

HCML Sumenep MDA-MBH Field Development Socialization

The Cooperation Contract Contractor (KKKS) of Husky CNOOC Madura Limited (HCML) conducted a further socialization of the MDA-MBH field development to a number of related stakeholders at the ESDM Office of East Java Province on Thursday (15/6).

"We are under contract at this location in 1982-2012 and extended the next 20 years from 2012-2032. Thus, the remaining contract period is about 15 years away. If not immediately produce, then its economic value will be lost. This is a challenge for us.

Nevertheless, social activities to the people of Sumenep we have done, "said Head of Relations HCML Surabaya Hamim Tohari. The socialization was attended by several related institutions, including Regional Military Command V / Brawijaya, Vice President of Naval Force V / Surabaya, East Java Transportation Department, East Java Communication and Information Service, Sumenep Local Government, Environment Agency Sumenep, Transportation Office Sumenep, Bureau Natural Resources Sumenep and several community groups from Sumenep.

IN INDONESIAN

HCML Sosialisasi Pengembangan Lapangan MDA-MBH Sumenep 

Kontraktor Kontrak Kerja Sama (KKKS) Husky CNOOC Madura Limited (HCML) melakukan sosialisasi lanjutan pengembangan lapangan MDA-MBH kepada sejumlah stakeholder terkait di kantor Dinas ESDM Provinsi Jawa Timur, Kamis (15/6) lalu. 

“Kami sudah terikat kontrak di lokasi ini pada 1982-2012 dan diperpanjang 20 tahun ke depan sejak 2012-2032. Sehingga, sisa masa kontrak sekitar 15 tahun lagi. Kalau tidak segera berproduksi, maka nilai keekonomiannya akan hilang. Ini menjadi tantangan bagi kami. 

Meskipun demikian, kegiatan sosial ke masyarakat Sumenep sudah kami lakukan,”kata Head of Relations HCML Surabaya Hamim Tohari. Sosialisasi tersebut dihadiri beberapa instansi terkait, diantaranya Komando Daerah Militer V/Brawijaya, Pangkalan Utama TNI Angkatan Laut V/Surabaya, Dinas Perhubungan Jawa Timur, Dinas Komunikasi dan Informasi Jawa Timur, Pemerintah Daerah Sumenep, Badan Lingkungan Hidup Sumenep, Dinas Perhubungan Sumenep, Biro Sumber Daya Alam Sumenep dan beberapa kelompok masyarakat dari Sumenep. 

Harian Bangsa, Page-4, Saturday, June 17, 2017

Oil, gaslaw revision raises questions about role of regulators

The status quo of two regulatory agencies in charge of the upstream and downstream oil and gas industry has come  into question as the final draft of the oil and gas law revision is being discussed at the House of Representatives’ Legislative Body (Baleg).

The draft foresees the establishment of a new special enterprise (BUK) that will be in charge of making deals with private investors and conducting exploration and exploitation activities. The BUK will also be in charge of managing the downstream sector, which includes the distribution of oil and gas.

The enterprise will essentially take over responsibilities from Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) and the Downstream Oil and Gas Regulatory Agency (BPH Migas).

SKK Migas currently overseas oil and gas contractors’ work plans and budgets, which encompasses exploration and exploitation activities. It was established in 2012 after the Constitutional Court dissolved the Upstream Oil and Gas Executive Agency (BP Migas).

During a meeting with Baleg on Thursday, SKK Migas chairman Amien Sunaryadi said the regulatory body would willingly accept any role given to it under the new law and was hopeful that the new law would help boost investment into the country.

However, he wanted more clarity on the new enterprises role and how it would manage the upstream oil and gas sector. “There needs to be more clarity about the oil and gas BUK. Will it be a corporation that manages its own profits and only pays out dividends to the government. or will it be a government institution that submits all its profits to the government,” he asked, adding that there was also the question of how the new enterprise would generate its revenue.

Unlike SKK Migas, the oil and gas BUK would be able to conduct its own exploration and exploitation activities, currently only done by state-owned and private oil and gas companies.

The draft does not specify which state-owned firm will he merged with SKK Migas and BPH Migas to create the new firm, but oil an gas firm Pertamina is currently the only state company operating in the upstream sector. Oil and gas business players have been waiting almost a decade for legal revisions, with many complaining that existing regulations make upstream investment unappealing.

Convincing oil and gas business players to invest more in the country is essential if the government hopes to meet domestic demand and minimize imports in the future.

Upstream oil and gas investment has continued to decrease. dropping by 24.5 percent to US$12.01 billion in 2016 from $15.9 billion in 2015. The number of oil and gas fields being operated has continued to decline as well, falling to merely 288 fields in 2016 from 321 in 2013.

While the upstream segment clearly remains the focus of the industry, Amien questioned whether the new law would also regulate the midstream segment, which has contributed to high gas prices at the consumer level.

Meanwhile, newly-appoint cd BPH Migas head Fanshurullah Asa, who previously served as the agency’s committee member, said that instead of merging BPH Migas into a new entity, the state should strengthen it, as the country would soon have to start focusing more on the downstream sector, since it’s oil and gas reserves were depleting.

“According to the data we have, oil reserves will be gone in nine years and gas in 15 to 20 years, so sooner or later' our refined fuel reserves will run out. Once that happens, the upstream segment will no longer be the main focus, but the downstream segment will. We will need to manage liquefied natural gas and compressed natural gas imports. So we feel that BPH Migas will still be relevant,” he said. 

The government has predicted that the country will need to start importing gas in 2019 with around 1,672 million metric standard cubic feet per day (mmscfd), and almost twice that amount by 2035.

Jakarta Post, Page-13, Friday, June 16, 2017

APEX Hoping Get Contract of Mahakam

PT Apexindo Pratama Duta Tbk should think to maintain business performance. The reason, issuers with APEX stock code is still difficult to get a contract from a service company supporting oil and gas.

This year, the company will alert its land rig to get into geothermal projects. In addition to wider opportunities, geothermal projects have better margins than oil and gas. Currently, Apexindo follows almost all geothermal tenders with the expectation of at least one project this year.

Apexindo has the experience of drilling geothermal wells. APEX Corporate Secretary Frieda Salvantina said the company continues to try its luck by following a tender that matches the Rig specifications. For geothermal, Apexindo has drilling experience at WKP Salak, Darajat and Lahendong. 

     Moreover, this company has been working on geothermal since 1994, so there is no doubt to work on the geothermal power project. "Apexindo currently has three new contracts to start this month. There are still two more existing projects that are still running, "said Frieda, Thursday (15/6).

For information, APEX has a new contract from Premier Oil Natuna Sea B.V, PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) and PT Halliburton Logging Services Indonesia for PT PLN.

Frieda hopes to get two additional new contracts, namely work on the Mahakam Block and geothermal projects. "The Rig IX is scheduled to operate this month, if two other rigs are likely to start operating in July or August, in the third quarter," he said.

Apexindo is eager to get a drilling contract in the Mahakam Block. The reason, the company has been operating for 25 years in the region. In addition, the company once put six rigs at once for work in Mahakam. As a result, Apexindo claims to master and understand the exploration of the block. Currently, the new company gets one drilling contract from the Mahakam Block.

Whereas PHE As the operator has stated will drill eight new wells. Well, this plan is targeted However Frieda does not want to wonder about the results of the tender. What is clear with the experience and knowledge surrounding the Mahakam block, he is optimistic to get a new contract again.

In addition, for geothermal is expected to be obtained this year, after completion of IV rig work for PLTP Lahendong. With a number of business plans earlier, Apexindo set a conservative target, both in terms of rig utilization and revenue. 

    Last year, APEX's revenue was US $ 105.18 million, less than half of its revenue of US $ 246.29 million in 2015. This unsatisfactory outcome is due to the quiet of the tender, to suppress the company's financial performance. Last year, Apexindo's marine rig utilization was only 46%.

IN INDONESIA

APEX Berharap Mendapatkan Kontrak Mahakam 

PT Apexindo Pratama Duta Tbk harus berpikir untuk mempertahankan kinerja bisnis. Pasalnya, emiten dengan kode saham APEX masih sulit mendapatkan kontrak dari perusahaan jasa penunjang migas.

Tahun ini, perusahaan ini akan menyiagakan rig darat miliknya untuk bisa masuk ke proyek-proyek geothermal. Selain kesempatan lebih luas, proyek geothermal memiliki margin yang lebih baik dibandingkan migas. Saat ini, Apexindo mengikuti hampir semua tender geothermal dengan harapannya minimal mendapat satu proyek pada tahun ini.

Apexindo memiliki pengalaman mengebor sumur geothermal.  Sekretaris Perusahaan APEX Frieda Salvantina mengatakan, perusahaan terus mencoba peruntungan dengan mengikuti tender yang cocok dengan spesifikasi Rig yang dimiliki. Untuk geothermal, Apexindo memiliki pengalaman pengeboran di WKP Salak, Darajat dan Lahendong.

     Apalagi perusahaan ini sudah menggarap geothermal sejak 1994, sehingga tidak perlu diragukan lagi menggarap proyek listrik tenaga panas bumi tersebut. “Saat ini Apexindo mendapatkan tiga kontrak baru yang akan dimulai pada bulan ini. Masih ada dua lagi existing proyek yang masih berjalan," kata Frieda, Kamis (15/6).

Sebagai informasi, APEX mengantongi kontrak baru dari Premier Oil Natuna Sea B.V, PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) dan PT Halliburton Logging Services Indonesia untuk pengerjaan PT PLN.

Frieda berharap mendapat tambahan dua kontrak baru lainnya, yakni pengerjaan di Blok Mahakam dan proyek geothermal. "Rig IX itu rencananya beroperasi bulan ini. Kalau dua rig lainnya, kemungkinan mulai beroperasi Juli atau Agustus, di kuartal tiga nanti," katanya.

Apexindo berhasrat bisa mendapatkan kontrak pengeboran di Blok Mahakam. Alasannya, perusahaan tersebut sudah beroperasi selama 25 tahun di wilayah tersebut. Selain itu, perusahaan pernah menaruh enam rig sekaligus untuk pengerjaan di Mahakam. 

    Alhasil, Apexindo mengklaim sangat menguasai dan paham mengenai eksplorasi blok tersebut. Saat ini, perusahaan baru mendapat satu kontrak pengeboran dari Blok Mahakam. 

Padahal PHE Selaku operator sudah menyatakan akan mengebor delapan sumur baru. Nah, rencana ini yang dibidik   Meski demikian Frieda tidak ingin berandai-andai mengenai hasil tender tersebut. Yang jelas dengan pengalaman dan pengetahuan seputar Blok Mahakam, ia optimistis bisa mendapatkan satu kontrak baru lagi. 

Selain itu, untuk geothermal diharapkan bisa didapat tahun ini, setelah selesainya pengerjaan rig IV untuk PLTP Lahendong. Dengan sejumlah perencanaan bisnis tadi, Apexindo memasang target konservatif, baik dari sisi utilisasi rig maupun pendapatan. 

     Sekadar diketahui, tahun lalu, pendapatan APEX tercatat US$ 105,18 juta, tidak sampai setengah dari pendapatan 2015 yang sebesar US$ 246,29 juta. Capaian yang tidak memuaskan ini akibat sepi tender, hingga menekan kinerja keuangan perusahaan. Tahun lalu, utilisasi rig laut milik Apexindo hanya 46%.

Kontan, Page-14, Friday, June 16, 2017

Pertamina Increasingly Finding Partners

Balikpapan Refinery And Tuban Refinery

PT Pertamina is seeking funding for the capacity building project of Balikpapan Refinery and Tuban Refinery.

Pertamina Finance Director Arief Budiman said it has conducted socialization or market sounding for the Balikpapan Refinery and Tuban Refinery project. The company uses the financing scheme of project financing so that internal can supply capital around 30% -40%.

Balikpapan's Refinery Project requires approximately US $ 4.6 billion of funds, all of which must be borne by the company because no partners contributed to the project. As a result, to increase refinery capacity from 260,000 barrels per day (bpd) to 360,000 bpd, the company spent around US $ 1.8 billion.

Meanwhile, at the Tuban refinery project, Pertamina is partnering with Rosneft with a 55% shareholder in the hands of the company. To build a new refinery with a capacity of 300,000 bph, Pertamina must provide capital of about US $ 2.8 billion. However, he does not want to mention which parties are interested to participate to fund the project.

The increase in Balongan Refinery capacity requires US $ 1.27 billion, Balikpapan refinery of US $ 5.3 billion, Cilacap Refinery US $ 4.5 billion, Tuban Refinery about US $ 13 billion, and Bontang Refinery about US $ 8 billion. "The Balikpapan Refinery has been our sound sounding, Tuban refinery has also been," he said in the House of Representatives, Tuesday (13/6).

He said the change in refinery targets refers to the assumption of the company's debt ratio as measured by comparison of earnings and income before taxes, interest, depreciation and amortization (EBITDA).

With a debt limit of 3.5, it is difficult for companies to keep their numbers lower when running a refinery project in accordance with the initial target. In fact, ideally for companies that are still developing such as Pertamina, debt ratio

Kept below 3.

From material presentation of company's performance in quarter IV / 2016, Balikpapan refinery phase 1 is targeted to be completed in 2019. Then, Balongan and Balikpapan phase 2 is completed by 2020. Meanwhile, Cilacap and Tuban Refinery can be completed in 2021 also Bontang in 2023, and Refinery Dumai in 2024.

From the material of the latest exposure, there is a difference of target, namely Balikpapan phase 1 to 2020 and phase 2 is completed in 2021. Then, Cilacap Refinery 2023 and Bontang Refinery becomes 2024. The current refinery capacity is about 800.000 bpd with fuel consumption level of 1.6 million Bph.

He acknowledged that initial targets were made with the assumption of acceleration, while the latest targets were more realistic in terms of businessmanship and finance. Specifically, the scheme of assignment with corporate costs, the construction of Tuban Refinery and Bontang Refinery can actually use other funding schemes as regulated in Presidential Decree no. 146/2015 on the Implementation of Development and Development of Oil Refinery in the Interior.

In beleid it regulates that the implementation of the construction of oil refineries in the country can be done by state-owned or private. If the construction of refineries using corporate cost, Pertamina can get funding facilities in the form of state capital participation (PMN), retained earnings, Pertamina loans from inside or outside the country, government loans and bond issuance.

The Company will temporarily not use other funding options as regulated in the bids. The issuance of bonds, additional loans to State Investment (PMN) will not be selected as an acceleration option for refinery projects.

IN INDONESIAN

Pertamina Semakin Gencar Cari Mitra  

PT Pertamina mencari pendanaan untuk proyek penambahan kapasitas Kilang Balikpapan dan Kilang Tuban.

Direktur Keuangan Pertamina Arief Budiman mengatakan, pihaknya telah melakukan sosialisasi atau market sounding untuk proyek Kilang Balikpapan dan Kilang Tuban. Perseroan menggunakan skema pendanaan project financing sehingga internal bisa menyuplai modal sekitar 30%-40%.

Proyek Kilang Balikpapan membutuhkan dana sekitar US$4,6 miliar yang semuanya harus ditanggung perseroan karena tidak ada mitra yang turut berkontribusi dalam proyek tersebut. Alhasil, untuk menambah kapasitas kilang dari 260.000 barel per hari (bph) menjadi 360.000 bph, perseroan mengeluarkan dana sekitar US$1,8 miliar.

Sementara itu, pada proyek Kilang Tuban, Pertamina bermitra dengan Rosneft dengan pembagian saham 55% di tangan perseroan. Untuk membangun kilang baru berkapasitas 300.000 bph, Pertamina harus menyediakan modal sekitar US$2,8 miliar. Namun, dia belum mau menyebut pihak mana yang berminat untuk turut serta untuk mendanai proyek.

Peningkatan kapasitas Kilang Balongan membutuhkan dana US$1,27 miliar, Kilang Balikpapan US$5,3 miliar, Kilang Cilacap US$4,5 miliar, Kilang Tuban sekitar US$13 miliar, dan Kilang Bontang sekitar US$8 miliar. “Yang Kilang Balikpapan sudah Kami market sounding, Kilang Tuban juga sudah,” ujarnya di DPR, Selasa (13/6).

Dia menilai, pengubahan target penyelesaian kilang merujuk pada asumsi rasio utang perseroan yang diukur dari perbandingan laba dan pendapatan sebelum pajak, bunga, depresiasi dan amortisasi (EBITDA).

Dengan batas rasio utang 3,5 perseroan sulit menjaga agar angkanya lebih rendah bila menjalankan proyek kilang sesuai dengan target awal. Padahal, idealnya bagi perusahaan yang masih berkembang seperti Pertamina, rasio utang dijaga di bawah 3.

Dari materi paparan kinerja perseroan kuartal IV/2016, Kilang Balikpapan tahap 1 ditargetkan selesai pada 2019. Kemudian, Kilang Balongan dan Balikpapan tahap 2 selesai pada 2020. Sementara itu, Kilang Cilacap dan Kilang Tuban bisa diselesaikan pada 2021 juga Bontang pada 2023, dan Kilang Dumai pada 2024.

Dari materi paparan yang terbaru, terdapat perbedaan target, yakni Balikpapan tahap 1 menjadi 2020 dan tahap 2 selesai pada 2021. Kemudian, Kilang Cilacap 2023 dan Kilang Bontang menjadi 2024. Kapasitas kilang saat ini sekitar 800.000 bph dengan tingkat konsumsi BBM sebesar 1,6 juta bph.

Dia mengakui bahwa target awal dibuat dengan asumsi akselerasi, sedangkan target terbaru lebih realistis dari sisi keteknisan dan finansial. Khusus skema penugasan dengan biaya korporasi, pembangunan Kilang Tuban dan Kilang Bontang sebenarnya bisa menggunakan skema pendanaan lain seperti yang diatur dalam Peraturan Presiden No. 146/2015 tentang Pelaksanaan Pembangunan dan Pengembangan Kilang Minyak di Dalam Negeri. 

Dalam beleid itu mengatur bahwa pelaksanaan pembangunan kilang minyak di dalam negeri bisa dilakukan oleh BUMN atau swasta. Bila pembangunan kilang penugasan menggunakan biaya korporasi, Pertamina bisa mendapatkan fasilitas pendanaan berupa penyertaan modal negara (PMN), laba yang ditahan, pinjaman Pertamina yang berasal dari dalam atau luar negeri, pinjaman pemerintah dan penerbitan obligasi.

Perseroan untuk sementara ini tidak akan menggunakan opsi pendanaan lain seperti yang diatur dalam beleid itu. Penerbitan obligasi, tambahan pinjaman hingga Penanaman Modal Negara (PMN) tidak akan dipilih sebagai opsi akselerasi proyek kilang.

Bisnis Indonesia, Page-30, Friday, June 16, 2017

The Gas Development Plan of Masela is Immediately Compiled

Contractor looking for partners for project studies.

The Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) targets the development plan of the Masela Block gas development project (POD) in the Arafura Sea beginning in July. Target it Contained in Letter of SKK Migas to President Director of Inpex Masela Ltd, Shunichiro Sugaya, at the end of May

"Inpex to immediately follow up the discussion with related functions in SKK Migas. We hope the pre-FEED (front end engineering design) work can start no later than July 2017, "said Head of SKK Migas. Amien Sunaryadi in his letter.

Inpex spokesman, Usman Slamet, confirmed the letter. But he declined to comment on the POD targeting targets requested by the government. "We will continue to work with the government to accelerate project implementation," he said

Currently Inpex is still looking for partners to work on development plans. The study will include three gas transportation projects from the gas separation well and condensate wells through a floating processing storage facility And offloading (FPSO), as well as liquefied natural gas (LNG) refinery in Southeast Maluku Regency.

The company is also discussing the proposed project budget with SKK Migas since last May.

Assignment to Inpex was published after Energy and Mineral Resources Minister Ignatius Jonan agreed on the preparation of POD one stage. "It's been said pre-FEED one stage only. They agreed, "said Jonan. To accelerate the implementation of the project, he asked the POD preparation partners to be selected through direct appointment.

Jonan also agreed on Inpex's request to apply for LNG gas refinery capacity of 9.5 million tons per year and compressed natural gas (CNG) of 150 million standard cubic feet per day (MMSCFD).

Previously the government wanted LNG gas processing capacity of 7.5 million tons per year and CNG of 474 MMSCFD. The agreement was obtained by the government after Jonan met President Inpex Toshiaki Kitamura in Tokyo last month.

Inpex also requested the extension of operations after the contract expired in 2028. The contractor had proposed a replacement of production for 10 years because the gas in the Masela Block has not been aspirated yet. But the government rejected the request.

Deputy Energy Minister Arcandra Tahar, said it could only approve the replacement of the production period for seven year. Thus, the company gets a contract period of up to 2035.

Later, the replacement of production period will be contained in the amendment of cooperation contract. Under the Inpex plan, construction of the project can begin in 2022. The new gas will be sucked in 2026 or a four year retreat from Original plan.

The project is too late because the government rejects the revision of POD proposed by Inpex in October 2015. The reason, President Jokowi wants the gas to be processed in a land refinery instead of a floating plant such as the proposed contractor

Two Masela Development Options

The government wants the Masela gas project to start soon. Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) also requested Inpex Masela Ltd to develop a revised development plan.

Capacity

- Government : 7.5 MTPA LNG and 474 MMSCFD gas pipes

- lnpex           : 9.5 MTPA LNG & 150 MMSCFD pipeline gas

Decision         : 9.5 million MTPA & 150 MMSCFD gas pipeline

Replacement time

- Government : 7 years

- Inpex           : 10 years

Decision         : 7 years to 2035

IRR (rate of return on investment)

- Government : 12 percent

- Inpex           : 15 percent

Location

- Government  : Aru Islands

- Inpex           : Tanimbar Islands

IN INDONESIA

Rencana Pengembangan Gas Masela Segera Disusun  

Kontraktor mencari mitra untuk studi proyek.

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menargetkan penyusunan revisi rencana pengembangan (plan of development/POD) proyek gas Blok Masela di Laut Arafura bisa dimulai pada Juli nanti. Target itu termuat dalam Surat SKK Migas kepada Presiden Direktur Inpex Masela Ltd, Shunichiro Sugaya, pada akhir Mei lalu

“Inpex agar segera menindaklanjuti pembahasan dengan fungsi terkait di SKK Migas. Kami berharap pekerjaan pre-FEED (front end engineering design) dapat dimulai selambat-lambatnya Juli 2017,” ujar Kepala SKK Migas. Amien Sunaryadi dalam suratnya. 

     Juru bicara Inpex, Usman Slamet, membenarkan adanya Surat tersebut. Namun dia menolak berkomentar mengenai target penyusunan POD yang diminta pemerintah. “Kami akan terus bekerja sama dengan pemerintah untuk mempercepat pelaksanaan proyek,” katanya

     Saat ini Inpex masih mencari mitra untuk mengerjakan rencana pengembangan. Kajian bakal mencakup tiga proyek pengangkutan gas dari mulut sumur pemisahan gas dan kondensat melalui fasilitas terapung/ floating processing storage and offloading (FPSO), serta kilang pengolahan gas alam cair (liquefied natural gas/LNG) di Kabupaten Maluku Tenggara Barat.

Perusahaan juga sedang membahas usul anggaran proyek bersama SKK Migas sejak Mei lalu.

Penugasan kepada Inpex terbit setelah Menteri Energi dan Sumber Daya Mineral Ignasius Jonan menyepakati penyusunan POD satu tahap. “Sudah dibilang pre-FEED satu tahap saja. Mereka sepakat,” kata Jonan. Untuk mempercepat pelaksanaan proyek, dia meminta mitra penyusunan POD dipilih melalui penunjukan langsung.

Jonan juga menyepakati permintaan Inpex yang mengajukan kapasitas kilang gas LNG sebesar 9,5 juta ton per tahun Serta gas pipa (compressed natural gas/CNG) sebanyak 150 juta standar kaki kubik per hari (MMSCFD). 

Sebelumnya pemerintah menginginkan kapasitas pengolahan gas LNG sebanyak 7,5 juta ton per tahun dan CNG sebesar 474 MMSCFD. Kesepakatan diperoleh pemerintah setelah Jonan bertemu Presiden Inpex Toshiaki Kitamura di Tokyo, bulan lalu. 

Inpex juga menagih kepastian perpanjangan operasi setelah kontrak kedaluwarsa pada 2028. Kontraktor sempat mengusulkan penggantian masa produksi selama 10 tahun karena gas di Blok Masela sampai sekarang belum disedot. Namun pemerintah menolak permintaan itu. 

Wakil Menteri Energi Arcandra Tahar, mengatakan hanya bisa menyetujui penggantianya masa produksi selama tujuh tahun. Dengan demikian, perusahaan mendapat masa kontrak hingga 2035.

Nantinya, penggantian masa produksi akan termuat dalam amendemen kontrak kerja sama. Berdasarkan rencana Inpex, konstruksi proyek bisa dimulai pada 2022. Adapun gas baru akan disedot pada 2026 atau mundur empat tahun dari rencana semula. 

Proyek jauh terlambat lantaran pemerintah menolak revisi POD yang diajukan Inpex pada Oktober 2015. Alasannya, Presiden Jokowi menginginkan gas diolah di kilang darat, bukan kilang terapung seperti usul kontraktor

Dua Opsi Pengembangan Masela

Pemerintah ingin proyek gas Blok Masela bisa segera dimulai. Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) pun meminta lnpex Masela Ltd menyusun revisi rencana pengembangan.

Kapasitas

- Pemerintah : 7,5 MTPA LNG dan 474 MMSCFD gas pipe

- lnpex          : 9,5 MTPA LNG & 150 MMSCFD gas pipa

Keputusan     : 9,5 juta MTPA & 150 MMSCFD gas pipa

Penggantian waktu

- Pemerintah : 7 tahun

- Inpex         : 10 tahun

Keputusan     : 7 tahun hingga 2035

IRR (tingkat pengembalian investasi)

- Pemerintah : 12 persen 

- Inpex         : 15 persen

Lokasi

- Pemerintah : Kepulauan Aru

- Inpex         : Kepulauan Tanimbar

Koran Tempo, Page-21, Thursday, June 15, 2017

Optimism colors oil, gas lifting targets

The Jangkrik (cricket) Field in the Makassar Strait may become a game changer in the country’s oil and gas production, as the newly producing gas block is expected to rapidly increase production to meet the nation’s lifting target next year.

The Energf and Mineral Resources Ministry has proposed to the House of Representatives that the ready-to-sell oil production, locally known as lifting, in the 2018 state budget should hover between 771,000 and 815,000 barrels of oil per day (bopd). 

Meanwhile, the gas lifting target was proposed to be from 1.19 million to 1.23 million barrels of oil equivalent per day (boepd), an increase from this year’s target of 1.15 million boepd.

Minister Ignasius Jonan said the Jangkrik Field, which is operated by Italian oil and gas giant Eni and started production in May at a rate of 120 million to 130 million standard cubic feet per day (mmscfd), would be able to reach peak production of 450 mmscfd next year.

“We are optimistic that production can rise because of the field currently being operated by Eni. We are optimistic that this will help increase the total oil and gas lifting,” he said in Jakarta on Wednesday.

The ministry also has its fingers crossed that the oil lifting rate will remain stable as the country would rely on major oil producing fields in the Rokan, Cepu and Mahakam blocks. The Cepu block in East Java, with its main field called Banyu Urip, is the backbone of the national oil output, which had a peak production rate of 185,000 bopd.

Official data shows that oil lifting this year had reached 788 bopd by May 97 percent of this year’s target, while gas lifting has fared slightly better at 98 percent of this year’s 1.15 million boepd target. Oil production has fallen a long way since its heyday in the 1970s when production reached a peak of 1.7 million bopd.

A recent report by BMI Research, a unit of the Fitch Group, forecasts that oil production in Asia is expected to be in terminal decline and will lose about half a million barrels of output over the next five years. BMI Research identified China, Indonesia and Malaysia as those countries that will suffer the worst from the decline.

Indonesia’s declining production is highlighted by the skyrocketing domestic demand for refined fuels, prompting more imports, which are expected to rise to 1.2 million bopd in 2026 from 812,000 bopd this year.

While aging wells and a lack of new oil and gas discoveries have been identified as the causes of this downfall, the snail’s pace rise of global oil prices since their crash two years ago has yet to convince investors to conduct more exploration activities.

West Texas Intermediate crude was traded at US$46.01 per barrel on Wednesday a 4 percent year-on-year (yoy) fall from the same period last year. Meanwhile, fellow benchmark Brent crude traded at $48.12, a 2 percent yoy drop.

The numbers are a far cry from optimistic expectations that prices could reach the $60 level this year and they have not been helped by the revelation that production by the Organization of Petroleum Exporting Countries (OPEC) rose despite its pledge to cut output. 

     OPEC and non-member exporters such as Russia had previously agreed to cut production by 1.8 million bopd and to not increase output until the end of 2018. However, a recent report revealed that its output rose by 336,000 bopd in May to 32.14 million bopd because of the production of members that were exempted from the cuts.

Even so, the Indonesian government remains optimistic that oil prices will eventually rise and it has proposed to raise next year’s ICP price to between $45 and $50 per barrel, up from the $45 per barrel in this year’s state budget. ReforMiner Institute researcher Pri Agung Rakhmanto said that the govemment and the House should focus less on the production and lifting rates and move their focus toward the amoiuit of oil and gas reserves available in the country

“Without any new discoveries, the lifting rate will remain around the same every year and it would be moot to discuss it every year. This is why it is more important to discuss how much more or less we have in reserve ‘every year,” he said

By measuring the amount of reserves available in Indonesia, Pri Agung said, the state could judge whether investors were still interested in conducting upstream exploration activities in the country.

Upstream oil and gas investment has continued to decrease, last year dropping by 24.5 percent to $12.01 billion from $15.9 billion in 2015. 

Based on the current conditions, many believe that Indonesia’s oil reserves will be depleted in little over a decade if it keeps its lifting rate above 800,000 bopd without any new discoveries.

Data from the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) shows that Indonesian proven oil reserves dropped to 3,306 million stock tank barrels (mmstb) at the end of last year from 3,602 mmstb in 2015.

Jakarta Post, Page-13, Thursday, June 15, 2017

Next Year, Gas Production Can Rise 7%

Ministry of Energy and Mineral Resources (ESDM) targets, next year gas (lifting) production will rise while the oil lifting will stagnate. That picture is emblazoned in the State Budget (APBN) 2018.

In budget beleid next year, the government targets gas lifting of 1.19 million-1.23 million barrels of oil equivalent per day (boepd). The amount is up 4% -7% from the assumption of 2017 which amounted to 1.15 million boepd.

Minister of Energy and Mineral Resources, Ignasius Jonan explains, gas production from Cricket Field starting production in late May 2017 will support the increase of lifting gas next year. "The production of Cricket Field operated by Eni is at least 450 mmscfd, so the assumption is changed to 1.19 million-1.23 million boepd," said Jonan in a meeting with Commission VII DPR on Tuesday (13/6) night.

In addition to the Cricket Field, the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) recorded additional gas production from Wasambo Field in the second quarter of 2018 of 70 mmscfd. There is also gas production from CNY Field and Husky CNOOC Madura Limited's (HCML) MMD program that can support around 175 mmscfd.

Jonan added that oil production is projected at 771,000-815,000 barrels per day (bpd). The amount is relatively stagnant or equal to the assumption of oil production APBN 2017.

With these figures, the projected oil and gas production (oil and gas) to be included in the 2018 budget rules amounts to 1.96 million-2.05 million boepd. The projection is not much different from the assumption of oil and gas lifting in this year's state budget of 1.96 million boepd.

Director General of Oil and Gas, IGN Wiratmaja Puja, added that next year's petroleum production tends to stagnate as there is no additional large-scale production from the new field. "Currently, there is no new discovery of Banyu Urip Field in Cepu Block," said Wiratmaja.

IN INDONESIA

Tahun Depan, Produksi Gas Bisa Naik 7%

Kementerian Energi dan Sumber Daya Mineral (ESDM) menargetkan, tahun depan produksi (lifting) gas akan naik sedangkan liftng minyak akan stagnan. Itulah gambaran yang terpampang dalam Rancangan Anggaran Pendapatan dan Belanja Negara (APBN) 2018.

Dalam beleid anggaran tahun depan, pemerintah menargetkan lifting gas sebesar 1,19 juta-1,23 juta barel setara minyak per hari (boepd). Jumlah tersebut naik 4%-7% dari asumsi tahun 2017 yang sebesar 1,15 juta boepd.

Menteri ESDM, Ignasius Jonan menjelaskan, produksi gas dari Lapangan Jangkrik yang mulai berproduksi akhir Mei 2017 akan menopang kenaikan lifting gas tahun depan. "Produksi Lapangan Jangkrik yang dioperasikan Eni minimal 450 mmscfd sehingga asumsinya berubah menjadi 1,19 juta-1,23 juta boepd," kata Jonan dalam rapat dengan Komisi VII DPR, Selasa (13/6) malam.

Selain dari Lapangan Jangkrik, Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mencatat tambahan produksi gas dari Lapangan Wasambo pada kuartal II-2018 sebesar 70 mmscfd. Ada juga produksi gas dari Lapangan MDH dan MBA milik Husky CNOOC Madura Limited (HCML) yang bisa menyokong sekitar 175 mmscfd.

Jonan menambahkan, produksi minyak diproyeksikan sebesar 771.000-815.000 barel per hari (bph). Jumlah tersebut relatif stagnan atau sama dengan asumsi produksi minyak APBN 2017.

Dengan gambaran tersebut, proyeksi produksi minyak dan gas bumi (migas) yang akan dimasukkan dalam aturan anggaran 2018 sebesar 1,96 juta-2,05 juta boepd. Proyeksi tersebut tidak berbeda jauh dengan asumsi lifting migas dalam anggaran negara tahun ini yang sebesar 1,96 juta boepd.

Direktur Jenderal Minyak dan Gas Bumi, IGN Wiratmaja Puja menambahkan, produksi minyak bumi tahun depan cenderung stagnan karena belum ada tambahan produksi berskala besar dari lapangan baru. "Saat, ini belum ada discovery baru sebesar Lapangan Banyu Urip di Blok Cepu," kata Wiratmaja.

Kontan, Page-14, Thursday, June 15, 2017.

This year, Oil and Gas & Mining Investment Can be US $ 43 Billion

The Ministry of Energy and Mineral Resources (ESDM) claims that investment in the energy and mineral resources sector rose significantly this year compared to last year. The increase in investment is sustained by various simplification of licensing.

Ignasius JOnan, Minister of Energy and Mineral Resources, said last year the value of incoming investment of about US $ 27 billion. This year, he is optimistic that his value could reach US $ 43 billion. The value is derived from investments in the oil and gas sector (oil and gas), electricity, mineral and coal mining, and renewable energy.

"We project oil and gas investment of US $ 23 billion, electricity about US $ 13 billion, mining of US $ 6 billion and new energy equal to this year about US $ 1.6 billion," said Jonan in a press conference at the Ministry of Energy and Mineral Resources on Wednesday 14/6).

About the realization of investment this year, Jonan has not been willing to disclose it. He said that the realization of investment in 2017 is still calculated and can only be seen the results in the third quarter of this year. Moreover, the government's target could change as it affects the world economic growth condition. "Depending on global developments," he said.

Jonan claims that the licensing simplification process is targeting all sectors under the control of the ESDM Ministry. The oil and gas sector, for example, has its permits cut from the previous 104 permits to only six permits. Meanwhile, mining sector licensing is cut from 38 types of licenses to six licenses.

IN INDONESIA

Tahun Ini, Investasi Migas & Tambang Bisa US$ 43 Miliar

Kementerian Energi dan Sumber Daya Mineral (ESDM) mengklaim bahwa investasi sektor energi dan sumber daya mineral naik signifikan pada tahun ini dibandingkan dengan tahun lalu. Peningkatan investasi tersebut ditopang oleh berbagai penyederhanaan perizinan.

Ignasius Jonan, Menteri ESDM, menyatakan, tahun lalu nilai investasi yang masuk sekitar US$ 27 miliar. Tahun ini, dia optimistis nilainya bisa mencapai US$ 43 miliar. Nilai tersebut berasal dari investasi di sektor minyak dan gas bumi (migas), kelistrikan, pertambangan mineral dan batubara, serta energi baru terbarukan. 

"Kami proyeksikan investasi migas US$ 23 miliar, listrik sekitar US$ 13 miliar, pertambangan US$ 6 miliar dan energi baru sama seperti tahun ini sekitar US$ 1,6 miliar," kata Jonan dalam konferensi pers di Kantor Kementerian ESDM, Rabu (14/6).

Ihwal realisasi investasi tahun ini, Jonan belum bersedia mengungkapkannya. Dia menyatakan saat ini realisasi investasi tahun 2017 masih dihitung dan baru bisa dilihat hasilnya pada triwulan ketiga tahun ini. Lagi pula, target pemerintah bisa saja berubah karena berpengaruh terhadap kondisi pertumbuhan perekonomian dunia. "Tergantung perkembangan global," katanya.

Jonan mengklaim bahwa proses penyederhanaan perizinan menyasar seluruh sektor di bawah kendali Kementerian ESDM. Sektor migas, misalnya, perizinannya dipangkas dari sebelumnya 104 izin menjadi hanya enam izin. Sementara perizinan sektor pertambangan dipotong dari 38 jenis perizinan menjadi enam perizinan.

Kontan, Page-14, Thursday, June 15, 2017.