Pertamina's Oil and Gas Production Up 8.12%

PT Pertamina succeeded to record oil and gas production reached 692 thousand barrels of oil equivalent per day / boepd until June or 8.12% increase compared to the same period last year 640 thousand boepd. This figure is only slightly below this year's target of 693 thousand boepd.

Upstream Director of Pertamina, Syamsu Alam, said that the realization of oil and gas production is recorded up by the first semester of this year. The realization of oil production amounted to 343 thousand barrels per day (bpd), up 12.45% from the same period last year of 305 thousand bpd. Then gas production edged up by 4.34%, from about 1,938 million cubic feet per day / mmscfd to 2,022 mmscfd.

"So for oil and gas production from January to June this year that is 692 thousand boepd, up compared to January-March 2016 amounted to 640 thousand boepd," he said in Jakarta, Sunday (16/7).

According to Alam, the highest production increase was recorded from the oil and gas block of the company overseas managed by Pertamina International E & P (PIEP). PIEP's oil and gas production rose 28.81 percent from 118 thousand boepd in the first half of 2016 to 152 thousand boepd in the first half of 2017.

In detail, the realization of oil and gas PIEP production until June was recorded at 104 thousand bpd and gas 281 mmscfd. While details of oil production in the same period last year amounted to 84 thousand bpd and gas 197 mmscfd.

"The increase in production is because the oil and gas production from Maurel & Prom has been booked at Pertamina," he said.

As is known, Pertamina has completed the acquisition of Maurel & Prom last year. But then the company bought shares owned by other shareholders so managed to control the stock of Maurel & Prom up to 72.65%. Maurel & Prom has oil and gas assets scattered in Gabon, Nigeria, Tanzania; Namibia, Colombia, Canada, Myanmar, Italy, and other countries.

However, the main assets that have been produced are in Gabon, Nigeria and Tanzania. Maurel & Prom's oil and gas production is targeted to reach 30 thousand boepd.

Senior Vice President of Strategic Planning and Operations Evaluation Meidawati added that oil and gas production abroad also supported additional oil and gas blocks in Algeria and Iraq. Apart from abroad, additional production is also obtained from the Offshore Block North West Java (ONWJ) and Block Cepu.

"The increase in oil production from ONWJ Block because PI (participating interest) rose to 100%," he said.

Nevertheless, according to data shown by Nature, there has been no additional realization of oil and gas production from this year's acquisition activity. In 2017, Pertamina aims to obtain additional oil and gas production of 23 thousand boepd from the acquisition, namely oil 14 thousand bpd and gas 54 mmscfd.

This year, Syamsu Alam expects it will be difficult to complete acquisitions or auctions to add new oil and gas blocks abroad. "The process is not finished yet. In Iran and Russia it seems that no one is overtaken this year, "he said.

As is known, Pertamina initially targeted to add oil and gas blocks in Iran and Russia. In Iran, Pertamina will follow an auction held by the Iranian Government to become the manager of two blocks at once, Ab-Teymour Field and Mansouri which is estimated to have oil reserves of 5 billion barrels. In Russia, Rosneft said it had signed a memorandum of understanding with Pertamina for cooperation working on The Northern Tip of Chayvo Field and Russkoye Field.

Reach Target 4

If compared to the target, the realization of oil and gas production until June is still slightly below target. Oil and gas production 692 thousand new boepd 99.8% of target 693 thousand boepd. The actual gas production of 2,022 mmscfd is also below the target of 2,080 mmscfd. But the realization of oil production of 343 thousand bpd is actually 2.6% higher than the target of 334 thousand bpd. Meidawati is optimistic that this year's oil and gas production target will be achieved.

"Because at this time some work is under way, such as drilling development, reactivation wells, and others," he said.

In addition, the Cepu Block is said to be the mainstay to realize the 2017 oil and gas production target. Pertamina has budgeted US $ 3.44 billion to fund various activities to achieve the 2017 oil and gas production target. In detail, Pertamina will drill 28 exploration wells and 129 development wells, Re-work 31 wells, and run 5,000 well maintenance jobs.

Syamsu Alam said that the company's oil and gas production is targeted to increase annually to reach 1.9 million boepd by 2025. The increase in production is derived from the optimization of existing assets, the acquisition of oil and gas blocks, and the acquisition of oil and gas assets in other countries. This step is needed to minimize the difference between national oil and gas production and demand in the coming years.

"Our performance from 2008 to 2016, oil and gas production continues to grow. So we can prove that we can still grow, "he said.

Going forward, Pertamina targets oil and gas production to grow steadily at 8% per year, while gas reserves increase by 4.4% per year.

IN INDONESIA

Produksi Migas Pertamina Naik 8,12%

PT Pertamina berhasil membukukan produksi minyak dan gas bumi mencapai 692 ribu barel setara minyak per hari/boepd sampai Juni lalu atau naik 8,12% jika dibandingkan realisasi periode yang sama tahun lalu sebesar 640 ribu boepd. Angka ini hanya sedikit di bawah target tahun ini sebesar 693 ribu boepd.

Direktur Hulu Pertamina Syamsu Alam mengatakan, baik realisasi produksi minyak maupun gas perseroan, masing-masing tercatat naik sampai semester pertama tahun ini. Realisasi produksi minyak yakni sebesar 343 ribu barel per hari (bph), naik 12,45% dari realisasi periode yang sama tahun lalu 305 ribu bph. Kemudian produksi gas naik tipis sebesar 4,34%, yakni dari sekitar 1.938 juta kaki kubik per hari/mmscfd menjadi 2.022 mmscfd.

“Sehingga untuk produksi migas Januari-Juni tahun ini yakni 692 ribu boepd, naik dibandingkan dari Januari-Maret 2016 sebesar 640 ribu boepd,” kata dia di Jakarta, Minggu (16/7).

Menurut Alam, kenaikan produksi tertinggi tercatat dari blok migas perseroan di luar negeri yang dikelola Pertamina Internasional E&P (PIEP). Produksi migas PIEP naik hingga 28,81%, yakni dari 118 ribu boepd pada semester pertama 2016 menjadi 152 ribu boepd pada semester pertama 2017. 

Rincinya, realisasi produksi migas PIEP sampai Juni lalu tercatat sebesar 104 ribu bph dan gas 281 mmscfd. Sementara rincian produksi minyak pada periode yang sama tahun lalu sebesar 84 ribu bph dan gas 197 mmscfd.

“Kenaikan produksi ini karena produksi migas dari Maurel&Prom sudah dibukukan di Pertamina,” kata dia.

Seperti diketahui, Pertamina telah merampungkan akuisisi Maurel&Prom pada tahun lalu. Namun kemudian perseroan membeli saham milik pemegang saham lain sehingga berhasil menguasai saham Maurel&Prom hingga 72,65%. Maurel&Prom memiliki aset migas yang tersebar di Gabon, Nigeria, Tanzania; Namibia, Kolombia, Kanada, Myanmar, Italia, dan negara lainnya.

Namun, aset utamanya yang telah berproduksi yakni di Gabon, Nigeria, dan Tanzania. Produksi minyak dan gas Maurel&Prom ini ditargetkan mencapai 30 ribu boepd.

Senior Vice President Strategic Planning and Operation Evaluation Meidawati menambahkan, produksi migas luar negeri meningkat juga ditopang tambahan dari blok migas di Aljazair dan lrak. Selain dari luar negeri, tambahan produksi juga diperoleh perseroan dari Blok Offshore North West Java (ONWJ) dan Blok Cepu.

“Kenaikan produksi minyak dari Blok ONWJ karena PI (participating interest/ hak partisipasi) naik menjadi 100%,” tuturnya.

Meski demikian, menurut data yang ditunjukkan Alam, belum ada realisasi tambahan produksi migas dari kegiatan akuisisi tahun ini. Pada 2017 ini, Pertamina menargetkan dapat memperoleh tambahan produksi migas sebesar 23 ribu boepd dari akuisisi, yakni miyak 14 ribu bph dan gas 54 mmscfd.

Pada tahun ini, Syamsu Alam memperkirakan akan sulit merampungkan akuisisi ataupun lelang untuk menambah blok migas baru di luar negeri. “Prosesnya saja belum selesai. Di Iran maupun Rusia sepertinya tidak ada yang terkejar tahun ini," ujar dia.

Seperti diketahui, Pertamina awalnya menargetkan dapat menambah blok migas di Iran dan Rusia. Di Iran, Pertamina akan mengikuti lelang yang digelar oleh Pemerintah Iran untuk menjadi pengelola dua blok sekaligus, Lapangan Ab-Teymour dan Mansouri yang diperkirakan memiliki cadangan minyak mencapai 5 miliar barel. Di Rusia, Rosneft menyatakan telah meneken nota kesepahaman dengan Pertamina untuk kerja sama menggarap Lapangan The Northern Tip of Chayvo dan Lapangan Russkoye.

Capai Target 4

Jika dibandingkan target, realisasi produksi migas sampai Juni ini masih sedikit di bawah target. Produksi migas 692 ribu boepd baru 99,8% dari target 693 ribu boepd. Realisasi produksi gas 2.022 mmscfd juga masih di bawah target 2.080 mmscfd. Namun realisasi produksi minyak 343 ribu bph justru lebih tinggi 2,6% dari target 334 ribu bph. Meidawati optimis target produksi migas tahun ini akan tercapai. 

“Karena saat ini beberapa pekerjaan sedang berlangsung, seperti pengeboran development, reaktivasi sumur, dan lainnya,” tuturnya.

Selain itu, Blok Cepu disebutnya masih menjadi andalan untuk merealisasikan target produksi migas 2017. Pertamina telah menganggarkan US$ 3,44 miliar untuk mendanai berbagai kegiatan untuk mencapai target produksi migas 2017. Rincinya, Pertamina akan mengebor 28 sumur eksplorasi dan 129 sumur pengembangan, melaksanakan kerja ulang 31 sumur, serta menjalankan 5.000 pekerjaan perawatan sumur.

Syamsu Alam menuturkan, produksi migas perseroan ditargetkan terus meningkat setiap tahunnya hingga mencapai 1,9 juta boepd pada 2025. Peningkatan produksi diperoleh dari optimasi aset eksisting, pengambilalihan blok migas habis kontrak, dan akuisisi aset migas di negara lain. Langkah ini diperlukan untuk memperkecil selisih produksi dan kebutuhan migas nasional di tahun-tahun mendatang.

“Performance kami dari 2008 sampai 2016, produksi migas terus tumbuh. Jadi kami bisa membuktikan bahwa kami masih bisa tumbuh,” kata dia.

Ke depan, Pertamina menargetkan produksi migas tumbuh stabil sebesar 8% per tahun, sementara cadangan gas bertambah 4,4% per tahun.

Investor Daily, Page-9, Monday, July 17, 2017

Pertamina Focused Acquisition of Mansouri Block in Iran

The acquisition of two oil and gas fields in Russia is hampered by tax issues

PT Pertamina continues to increase the portfolio of oil and gas blocks managed both domestically and internationally. This step they are doing to enlarge oil and gas production capacity (oil and gas).

However, the expansion of adding oil and gas blocks abroad through this acquisition is not always running smoothly. For example, the plan to acquire each of the two oil and gas blocks in Iran and Russia, Pertamina has not been able to ensure the corporate action can be realized this year as well.

Later, the government-owned energy company is only focusing on the acquisition of a block of oil and gas in Iran, the Oil and Gas Block Mansouri. Consideration, Pertamina is more confident and sure can win the tender of oil and gas blocks.

"So the focus of Pertamina is currently only Mansouri Block in Iran," Pertamina Upstream Director Syamsu Alam said Thursday (13/7). Pertamina is optimistic to win the auction on Mansouri Block, because it has a better offer than its competitors.

In fact, at a giant oil and gas auction belonging to the National Iranian Oil Company (NIOC), Mansouri and Ab-Teymour, Pertamina faced each competitor.

"From the two bidders, we pursue Mansouri because it looks the best, so we continue to discuss technical and hopefully NIOC satisfied," said Syamsu.

Syamsu Alam further said that Pertamina indeed has passed technical evaluation by NIOC. The next step is to discuss terms and conditions before signing a contract for the block.

Therefore, in following up the Mansouri block auction process, Pertamina's team has visited Iran and met with the NIOC this week. The meeting with NIOC was conducted to discuss terms and conditions of the Mansouri Block.

"Now there is Iranian Petroleum Contract, which is used to calculate what its commercial value is," explained Alam.

Although it has entered the stages of discussion of terms and conditions, Pertamina has not been able to ensure the exact time of the completion of Mansouri Block auction process. Understandably, all processes depend on NIOC.

"Do not know when closingnya.Not even know whether this year can be completed," he added.

Tax Obstacles

Meanwhile, the acquisition of the Ab-Taymour field, has just included a bidding document. So even with the process of acquisition of two oil and gas blocks in Russia are still hampered taxation. Throughout 2017, Pertamina indeed claims to successfully acquire the shares of Meurel & Prom. Starting from February 1, 2017, Pertamina International EP (PIEP), a subsidiary of Pertamina, becomes the majority shareholder with 72.65% stake in Maurel & Prom.

After the acquisition, PIEP directly has access to operations in 12 countries and four continents of production assets in Gabon, Tanzania and Nigeria. Its exploration assets are in Namibia, Canada, Colombia, France Italy, and Myanmar. Previously, PIEP only operated in three countries namely Malaysia, Libya, and Iraq.

With the acquisition, Penamina get additional oil production of 30,000 barrels oil per day (BOPD). From early 2014 to early 2017, Pertamina's production of international assets grew to 150,000 BOEPD net-to-share.

IN INDONESIA

Pertamina Fokus Akuisisi Blok Mansouri di Iran

Proses akuisisi dua lapangan migas di Rusia terhambat masalah pajak

PT Pertamina terus menambah jumlah portofolio blok migas yang dikelola baik di dalam negeri maupun di mancanegara. Langkah ini mereka lakukan untuk memperbesar kapasitas produksi minyak dan gas (migas).

Namun, ekspansi menambah blok migas di luar negeri lewat akuisisi ini tidak selamanya berjalan mulus. Misalnya, rencana mengakuisisi masing-masing dua blok migas di Iran dan Rusia, Pertamina belum bisa memastikan aksi korporasi tersebut bisa terealisasi tahun ini juga.

Belakangan, perusahaan energi milik pemerintah ini hanya fokus akuisisi satu blok migas di Iran, yakni Blok Minyak dan Gas Mansouri. Pertimbangannya, Pertamina lebih percaya diri dan yakin bisa menang tender blok migas tersebut.

"Jadi fokus Pertamina saat ini hanya Blok Mansouri di Iran," kata Direktur Hulu Pertamina Syamsu Alam, Kamis (13/7). Pertamina optimistis menang lelang pada Blok Mansouri, karena memiliki penawaran yang lebih bagus daripada pesaingnya.

Sebenarnya, pada lelang lapangan migas raksasa milik National Iranian Oil Company (NIOC) yakni Mansouri dan Ab-Teymour, Pertamina menghadapi masing-masing satu kompetitor. 

"Dari dua bidder (penawar) itu, kami kejar Mansouri karena kelihatan yang paling bagus. Oleh Karena itu, kami terus berdiskusi teknis dan mudah-mudahan NIOC puas," ungkap Syamsu.

Lebih lanjut Syamsu Alam bilang, Pertamina memang telah melewati evaluasi teknik oleh NIOC. Tahapan selanjutnya adalah pembahasan terms and conditions sebelum menandatangani kontrak untuk blok tersebut.

Oleh karena itu dalam menindaklanjuti proses lelang blok Mansouri, tim Pertamina pun telah berkunjung ke Iran dan bertemu dengan pihak NIOC pada pekan ini. Pertemuan dengan NIOC dilakukan untuk membahas terms and conditions Blok Mansouri. 

"Sekarang ada Iranian Petroleum Contract, yang dipakai untuk menghitung nilai komersialnya seperti apa," jelas Alam.

Kendati telah memasuki tahapan pembahasan terms and conditions, Pertamina belum bisa memastikan waktu pasti selesainya proses lelang Blok Mansouri. Maklum, semua proses tergantung NIOC. 

"Belum tahu kapan closingnya. Belum tahu juga apakah tahun ini bisa selesai," tambahnya.

Hambatan Pajak

Sementara itu, proses akuisisi lapangan Ab-Taymour, baru saja memasukkan dokumen penawaran. Begitu pun dengan proses akuisisi dua blok migas di Rusia yang masih terhambat perpajakan. Sepanjang 2017, Pertamina memang mengklaim berhasil mengakuisisi saham Meurel & Prom. Terhitung mulai 1 Februari 2017, Pertamina Internasional EP (PIEP), yang merupakan anak usaha Pertamina menjadi pemegang saham mayoritas dengan 72,65% saham di Maurel & Prom.

Pasca akuisisi, PIEP langsung memiliki akses operasi di 12 negara dan empat benua yaitu aset produksi di Gabon, Tanzania, dan Nigeria. Aset eksplorasinya berada di Namibia, Kanada, Kolombia, Perancis Italia, dan Myanmar. Sebelumnya, PIEP hanya beroperasi di tiga negara yaitu Malaysia, Libya, dan Irak. 

Dengan akuisisi tersebut, Penamina mendapatkan tambahan produksi minyak sebesar 30.000 barel oil per day (BOPD). Sejak awal 2014 hingga awal 2017, produksi Pertamina dari aset internasional tumbuh hingga 150.000 BOEPD net-to-share.

Kontan, Page-14, Monday, July 17, 2017

Residents of Heavy Equipment Seals Owned by Pertamina EP Contractors

Irritated No Notice, Worry Cause Damaged Road

Pertamina EP Claim Already Post a Letter to Village Government

The heavy equipment belonging to Pertamina EP sub contractor located at T-junction Soko, Bangilan Sub-district, Tuban Regency, was sealed by local residents on Saturday (15/7).

Based on the info, the sealing was done when the crane type heavy equipment was moving to oil drilling in Senori sub-district. The reason for the residents to seal, because moving is not accompanied by permission and notification To the citizens. In addition, residents are also worried that the move could damage public facilities, especially roads.

Appeared on the heavy equipment is plastered with paper that reads "We refuse heavy equipment on the highway that is not capacity."

Wakid one of the residents who said in the sealing, said that the heavy equipment will be brought to the drilling of oil in the Tapen well area of ​​Pertamina EP in Senori.

"After the driver we ask, it will lead to oil drilling to Senori Sub-district," he said. "Therefore we seal, because there is no notice to the citizens," he said.

Wiji, one of Sidodadi village's devices, Bangilan Sub-district, confirmed the action. Even so, he admitted if until now the Village Government does not know the owner of the heavy equipment.

"Therefore, there has been no notice from the owners of heavy equipment, but the Village Government only heard information if there will be heavy equipment pertamina moving to Senori Sub-district We are still waiting for the information because if there is a heavy equipment moving company usually ask Permission to local residents, "he said.

Related to this matter, Field Manager of Pertamina Ep Asset 4 Cepu, Heru Irianto when claimed to have received no report related to the sealing of heavy equipment by residents. Mentioned about the absence of notice and permission to the district and village, he claimed to have sent a letter.

"So far there has been no report if there is heavy equipment detention in Bangilan, but if related we seem to have sent a letter to Bangilan Sub-district," said Heru.

IN INDONESIA

Warga Segel Alat Berat Milik Sub Kontraktor Pertamina EP

Kesal Tidak Ada Pemberitahuan, Khawatir Sebabkan Jalan Rusak

Pertamina EP Klaim Sudah Layangkan Surat ke Pemerintah Desa  

Alat berat milik sub kontraktor Pertamina EP yang berada di pertigaan Soko, Kecamatan Bangilan, Kabupaten Tuban, disegel warga setempat, Sabtu (15/7).

Berdasarkan info, penyegelan itu dilakukan saat alat berat jenis crane tersebut hendak moving ke pengeboran minyak di Kecamatan Senori. Adapun alasan warga melakukan penyegelan, karena moving tersebut tidak disertai izin dan pemberitahuan kepada warga. Selain itu, warga juga khawatir jika moving itu bisa merusak fasilitas milik umum, khususnya jalan.

Tampak pada alat berat tersebut ditempeli kertas oleh warga yang bertuliskan "Kami menolak alat berat masuk di jalan raya yang bukan kapasitas."

Wakid salah satu warga yang ikul dalam penyegelan tersebut, mengatakan bahwa alat berat itu akan dibawa menuju pengeboran minyak di wilayah Sumur Tapen Pertamina EP di Senori.

"Setelah sopirnya kita tanyakan, ternyata akan menuju ke pengeboran minyak ke Kecamatan Senori," katanya. "Oleh karena itu kami segel, karena tidak ada pemberitahuan ke warga," katanya.

Wiji, salah satu perangkat desa Sidodadi, Kecamatan Bangilan, membenarkan adanya aksi tersebut. Meski begitu, ia mengaku jika sampai saat ini Pemerintah Desa belum tahu pemilik alat berat tersebut.

"Sebab, selama ini belum ada pemberitahuan dari pihak pemilik alat berat. Pihak Pemerintah Desa hanya mendengar informasi jika akan ada kegiatan moving alat berat pertamina menuju ke Kecamatan Senori. Kita masih menunggu info tersebut. Sebab, kalau ada moving alat berat biasanya perusahan datang meminta izin ke warga setempat," katanya.

Terkait hal tersebut, Field Manager Pertamina Ep Asset 4 Cepu, Heru Irianto saat mengaku belum menerima laporan terkait adanya penyegelan alat berat oleh warga. Disinggung soal belum adanya pemberitahuan dan izin kepada pihak kecamatan dan desa, ia mengklaim sudah melayangkan surat. 

"Sejauh ini belum ada laporan jika ada penahanan alat berat di Bangilan, tapi jika terkait sepertinya kami sudah mengirimkan surat kepada pihak Kecamatan Bangilan," kata Heru.

Harian Bangsa , Page-9, Monday, July 17, 2017

Pertamina Will Conduct Treatment, Tapen Well 3

PT Pertamina EP Asset 4Cepu Field conducted a socialization related to the operation plan in Sidoharjo Village area, Senori Sub-district, Tuban District. In the near future PT Pertamina EP-Cepu Field carries out well service activities at Sumur Tapen 3 which enters the area of ​​Sidoharjo Village.

"Well maintenance activities aim to maintain national oil production level," said Pandjie Galih Anoraga, Asset 4 Government & Public Relation Assistant Manager of PT Pertamina EP.

Furthermore, Pandjie explained that for the Tapen region there will be some operations for some time to come.

"After the treatment of well Tapen 3 will be continued Tapen well drilling activities 4 and Tapen 5. Estimation will be implemented around September or October 2017, while in parallel preparing supporting documents in SKK Migas, "he added.

Tapen 3 well maintenance activities are expected to take 3 weeks from the start of work.

"Hopefully in the implementation of the Tapen 3 well welding operation is going well. Therefore we are looking forward to support from all stakeholders and community leaders, youth leaders and officials so that activities to maintain energy availability in this country can be maintained, "said Pandjie.

Meanwhile, representatives of Sidoharjo Village community in the socialization delivered several requests for The needs of the village to be able to go hand in hand with the company's activities well.

"We represent villagers of Sidoharjo request that PT Pertamina EP can accommodate our request. The goal is for the common good, the operation of PT Pertamina EP runs smoothly and we as local villagers also benefit from the presence of companies in our region ", said Hartono one of the residents.

In addition, Hartono also said that related to the needs of workers who can be done by local residents should not be submitted to the community outside Sidoharjo.

"Related to the aspirations of the residents of PT Pertamina EP will pay attention and convey the aspirations of the citizens to Management to get the best solution so that all parties can meet the agreement points. The important thing is the company's operations can be synergized with the community, "said Pandjie.

IN INDONESIA

Pertamina Akan Lakukan Perawatan, Sumur Tapen 3

PT Pertamina EP Asset 4 Cepu Field melakukan sosialisasi terkait rencana operasi di wilayah Desa Sidoharjo, Kecamatan Senori, Kabupaten Tuban. Dalam Waktu dekat PT Pertamina EP-Cepu Field melaksanakan kegiatan servis sumur di Sumur Tapen 3 yang masuk wilayah Desa Sidoharjo.

“Kegiatan perawatan sumur ini bertujuan untuk menjaga tingkat produksi minyak nasional,” ujar Pandjie Galih Anoraga, Asset 4 Government & Public Relation Assistant Manager PT Pertamina EP. 

Lebih lanjut, Pandjie menjelaskan bahwa untuk wilayah Tapen akan ada beberapa kegiatan operasi selama beberapa waktu ke depan.

“Setelah perawatan sumur Tapen 3 akan dilanjutkan kegiatan Pemboran Sumur Tapen 4 dan Tapen 5. Estimasi akan dilaksanakan sekitar bulan September atau Oktober 2017, sambil secara paralel menyiapkan dokumen pendukung di SKK Migas,” tambahnya.

Kegiatan perawatan Sumur Tapen 3 diperkirakan membutuhkan waktu selama 3 minggu sejak dimulai pekerjaan. 

“Semoga dalam pelaksanaan kegiatan petawatan sumur Tapen 3 ini berjalan lancar. Maka dari itu kami sangat mengharapkant dukungan dari seluruh stake holder dan tokoh masyarakat, tokoh pemuda dan aparat agar kegiatan menjaga ketersediaan energi di negeri ini dapat terjaga,” kata Pandjie.

Sementara itu, perwakilan masyarakat Desa Sidoharjo dalam sosialisasi tersebut menyampaikan beberapa permintaan untuk keperluan desa agar bisa berjalan beriringan dengan aktivitas perusahaan secara baik.

“Kami mewakili warga Desa Sidoharjo memohon agar PT Pertamina EP bisa mengakomodir permintaan kami. Tujuannya adalah untuk kebaikan bersama, operasi PT Pertamina EP berjalan lancar dan kami sebagai warga desa setempat juga mendapatkan manfaat atas keberadaan perusahaan di wilayah kami”, ujar Hartono salah satu warga.

Selain itu,  Hartono juga menyampaikan bahwa terkait kebutuhan tenaga kerja yang bisa dikerjakan oleh warga lokal jangan diserahkan ke masyarakat di luar Sidoharjo.

“Terkait dengan aspirasi dari warga tersebut PT Pertamina EP akan memperhatikan dan menyampaikan aspirasi dari warga kepada manajemen untuk mendapatkan solusi terbaik agar semua pihak dapat menemui poin kesepakatan. Yang penting kegiatan operasi perusahaan bisa sinergi dengan masyarakat,” kata Pandjie.

Duta Masyarakat, Page-15, Monday, July 17, 2017

Pertamina's Oil and Gas Production Growth Slows

PT Pertamina's oil and gas production growth in the first half of 2017 was only 8.1% to 692,000 boepd compared to the same period last year of 640,000 boepd. The company's production growth slowed compared to the performance of the first half of 2016 which grew by 12.5%.

Meanwhile, oil and gas production in the first semester of 2016 reached 640,000 barrels of oil equivalent per day / boepd, up 12.5% ​​compared to the same period of 2015 of 569,000 boepd.

Oil and gas production in the first semester of 2017 was supported by subsidiaries owned by PT Pertamina EP with 248,000 boepd or lower than the same period last year of 257,000 boepd.

Pertamina EP's oil production in the first half of 2017 was 79,000 barrels per day (bpd), down from 86.6 bph semester I / 2016 performance. Gas production of 980 million cubic feet per day (MMscfd) decreased slightly from the achievement of the same period last year 989 MMscfd.

Then, followed by PT Pertamina Hulu Energi unit with oil and gas production 199.000 boepd or higher than last year 190.000 boepd. PHE oil production rose from 64,000 bpd to 70,000 bpd. Similarly, the gas from the original 728 MMscfd to 742 MMscfd.

The business unit of PT Pertamina EP Cepu, which controls 45 percent stake in Cepu Block, realizes oil and gas production of 93,000 boepd or higher than its first semester I / 2016 achievement of 75,000 boepd.

Oil production, realized 90,000 bph or higher than the first half of 2016 as much as 71.000 bpd. Pertamina EP Cepu gas production in the first half of 2017 is 18 MMscfd down from the same period last year 24 MMscfd.

Senior Vice President of Upstream Strategic Planning and Operation Evaluation Pertamina Meidawati said the additional production comes from the addition of Offshore North Java Java's participating interest (PI) to 100%. In addition, the addition of production also comes from the increased production of Banyu Urip Field, Cepu Block.

"The increase in oil production from ONWJ, P1 rose to 100%, from Banyu Urip," he said

Meanwhile, the additional production of foreign assets comes from the acquisition of Maurel & Prom. In addition, existing assets such as in Algeria and Iraq also posted positive results. The oil and gas production of Pertamina Internasional EP's business unit in the first half of 2017 is 152,000 boepd or up and the same period last year was 118,000 boepd. For oil and gas production both record increases. Oil production from 84,000 bpd to 104,000 bpd.

Meanwhile, gas production rose from 197 MMscfd to 281 MMscfd. Pertamina has oil and gas blocks that have been producing in three countries, including the West Qurna I Block in Iraq, the MNL Block, EMK and Ourhood in Algeria, and Block K, Block H, Block R SK 309, SK 311 and SK 314A in Malaysia . In another development, PT Pertamina EP will conduct drilling off the East Java Sea coast.

Public Relation Manager of PT Pertamina EP Muhammad Baron said the drilling will be done in August 2017. Poleng field drilling is carried out at a depth of 9,000 feet and costs US $ 15 million. With these activities are expected to increase the absorption point of hydrocarbons.

Pertamina EP's oil production contributes 10 percent to the national oil production of 808,800 bpd and gas 13 percent from 7,512 MMsctd.

"Drilling activities will commence in early August 2017 with an estimated work duration of 45 days with

The target depth of 9,000 feet and the estimated cost of US $ 15 million, "he said.

Meanwhile, based on SKK Migas data, in the first half of 2017, upstream oil and gas investment reached 29 percent or US $ 3.98 billion and this year's target is US $ 13.55 billion. Meanwhile, the realization of the average production of ready-to-sell oil or lifting during the first half of 2017 only reached 802,000 bpd from the target of 815,000 bpd.

IN INDONESIA

Pertumbuhan Produksi Migas Pertamina Melambat

Pertumbuhan produksi minyak dan gas bumi PT Pertamina pada semester I/2017 hanya 8,1% menjadi 692.000 boepd dibandingkan dengan periode yang sama tahun lalu 640.000 boepd. Pertumbuhan produksi perseroan itu melambat dibandingkan dengan kinerja semester I/ 2016 yang tumbuh hingga 12,5%.

Sementara itu, realisasi produksi migas sepanjang semester I/ 2016 mencapai 640.000 barel setara minyak per hari (barrel oil equivalent per day/boepd) atau naik 12,5% dibandingkan dengan periode yang sama 2015 sebanyak 569.000 boepd.

Produksi migas pada semester I/2017 ditopang dari lapangan-lapangan milik anak usaha, seperti PT Pertamina EP dengan 248.000 boepd atau lebih rendah dari capaian periode yang sama tahun lalu 257.000 boepd.

Produksi minyak Pertamina EP semester I/2017 sebanyak 79.000 barel per hari (bph) turun dari capaian semester I/2016 86.000 bph. Produksi gas 980 juta kaki kubik per hari (MMscfd) turun tipis dari capaian periode yang sama tahun lalu 989 MMscfd.

Kemudian, disusul unit PT Pertamina Hulu Energi dengan produksi migas 199.000 boepd atau lebih tinggi dari tahun lalu 190.000 boepd. Produksi minyak PHE naik dari 64.000 bph menjadi 70.000 bph. Begitu pula dengan gas dari semula 728 MMscfd menjadi 742 MMscfd.

Unit usaha PT Pertamina EP Cepu yang menguasai 45 % saham partisipasi Blok Cepu, merealisasikan produksi migas 93.000 boepd atau lebih tinggi dari capaian semester I/ 2016 sebanyak 75.000 boepd.

Produksi minyak, terealisasi 90.000 bph atau lebih tinggi dari semester I/2016 sebanyak 71.000 bph. Produksi gas Pertamina EP Cepu semester I/2017 sebanyak 18 MMscfd turun dari periode yang sama tahun lalu 24 MMscfd.

Senior Vice President Upstream Strategic Planning and Operation Evaluation Pertamina Meidawati mengatakan, penambahan produksi berasal dari penambahan saham partisipasi (participating interest/PI) Blok Offshore North West Java menjadi 100 %. Selain itu, penambahan produksi juga berasal dari naiknya produksi Lapangan Banyu Urip, Blok Cepu.

“Kenaikan produksi minyak dari ONWJ, P1 naik menjadi 100 %, dari Banyu Urip,” ujarnya

Sementara itu, tambahan produksi aset luar negeri berasal dari telah usainya proses akuisisi Maurel&Prom. Selain itu, aset yang ada seperti di Aljazair dan Irak juga mencatatkan hasil positif. Produksi migas unit usaha Pertamina Internasional EP semester I/2017 sebanyak 152.000 boepd atau naik dan periode yang sama tahun lalu 118.000 boepd. Untuk produksi minyak maupun gas sama-sama mencatat penaikan. Produksi minyak dari semula 84.000 bph menjadi 104.000 bph.

Sementara itu, produksi gas naik dari 197 MMscfd menjadi 281 MMscfd. Pertamina memiliki blok migas yang telah berproduksi di tiga negara, di antaranya Blok West Qurna I di Irak, Blok MNL, EMK, dan Ourhood di Aljazair, serta Blok K, Blok H, Blok R SK 309, SK 311, dan SK 314A di Malaysia. Dalam perkembangan lain, PT Pertamina EP akan melakukan pengeboran di lepas pantai Laut Jawa bagian Timur. 

Public Relation Manager PT Pertamina EP Muhammad Baron mengatakan, pengeboran rencananya dilakukan pada Agustus 2017. Pengeboran lapangan Poleng dilakukan dengan kedalaman 9.000 kaki dan biaya US$15 juta. Dengan kegiatan tersebut diharapkan mampu menambah titik serap hidrokarbon.

Produksi minyak Pertamina EP berkontribusi 10 % dari realisasi produksi minyak nasional yakni 808.800 bph dan gas 13% dari 7.512 MMsctd.

“Kegiatan pengeboran akan mulai dilaksanakan pada awal Agustus 2017 dengan durasi pekerjaan estimasi mencapai 45 hari dengan

target kedalaman mencapai 9.000 feet dan perkiraan biaya mencapai US$15 juta,” ujarnya.

Sementara itu, berdasarkan data SKK Migas, pada semester I/2017, investasi hulu migas baru mencapai 29% atau US$3,98 miliar dan target tahun ini US$13.55 miliar. Adapun, realisasi rerata produksi minyak siap jual atau lifting selama semester I/2017 hanya mencapai 802.000 bph dari target 815.000 bph.

BISNIS INDONESIA, Page-30, Monday, July 17, 2017

Awaiting Priority Effect 4 Gas Project

The government's decision to include four oil and gas projects into national priorities is expected to accelerate the realization of investment in the oil and gas sector.

The government hopes that priority project labels will have new powers so that the project can run quickly. The four oil and gas projects are the Eternal Field, Masela Block in Maluku; Field Jambaran-Tiung Biru in East Java; Indonesia Deepwater Develop ment (IDD) project in East Kalimantan; And Tangguh Train III in West Papua.

The basis for priority project design refers to several principles. First, conformity with Presidential Regulation no. 75/2014 on the Committee for the Acceleration of the Provision of Priority Infrastructure (KPPIP), projects that are economically or financially beneficial are greater than other projects in the same sector.

Secondly, according to the data KPPIP, of the 248 projects that dominated the road and dam construction, project investment of Rp 289 billion gas development project Masela gas (Inpex Masela Ltd), Rp 124.8 trillion for IDD (Chevron), liquefied natural gas / Tangguh LNG Train III (BP Tangguh) Rp 104 trillion, and Jambaran-Tiung Biru (Pertamina EP Cepu) Rp 26.7 trillion.

The total investment value of the four projects is Rp 545.4 trillion or equivalent to about eight projects of Jakarta-Bandung high speed train which cost Rp 68.7 trillion.

Third, the project needs support for problem solving from KPPIP and the government.

Fourth, projects that have a large private participation impact so that it is attempted to start construction in 2018, reaching the finan- cial close in 2019 and can trigger an interest

Private Investing.

Projects included in KPPIP radar has received support in the form of licensing such acceleration in Patimban Port project, the acceleration and completion of land acquisition constraints, and the achievement of such financial close on a power plant project stems.

Other support is the settlement of funding issues such as the Jakarta MKT project, preparation of the study of project preparation studies, publication of legal basis such as Government Regulation no. 27/2017 and solving the spatial problem problem as happened in the Java-1 steam power plant project.

In further examination, three of the four projects that have not reached the final stage of investment / FID decision-making, the main problem is the commercial aspect.

First, the Abadi field is currently being discussed between the government and contractors associated with any conditions that allow it to gas field development can go as economies of scale after President Joko Widodo decided change in LNG development scheme which was originally an offshore plant into a refinery ashore.

The government is still looking for potential buyers of gas in order to decide the capacity of the LNG plant to be built. Meanwhile, the first gas and Masela targeted the government in 2026.

Secondly, the Jambaran-Tiung Biru project which is still in the negotiation stage of price with PT Perusahaan Listrik Negara as a potential buyer of gas. The contractor's gas price has not been agreed yet because it has not been in accordance with the buyer's ability and economic development of the field. The project is targeted to produce its first gas by 2019.

Third, the IDD project since the government to submit the revised proposal development plan (plan of development / PoD) at the beginning of 2016 until now there has been no progress as a matter of economic assumptions the project is being evaluated by the contractor following the rejection of the proposed offering investment incentives in the form of credit.

In addition, it is also discussed about the use of shared facilities in the vicinity of IDD projects so that investment can be lower. At least, a project that needs only land acquisition and land acquisition is Tangguh Train III which is planned for the physical construction process by the end of this year so that gas starts to flow in 2020.

HARDER

The development of the gas field is actually more challenging than the oil field. Upstream Oil and Gas Gas Analyst Wood Mackenzie Johan Utama said that in addition to licensing and land acquisition, the contractor must ensure the infrastructure and buyers of gas. In addition, other issues to be solved are related to the gas price agreement with the buyer.

Not meeting the ability of buyers and economics of field development to make gas purchase agreement is canceled. Sometimes, buyers who have received allocations from the government can not buy gas from a field because the price in which the buyer wants has not been agreed by the gas producer.

"For the gas field, the most common factor being the bottleneck is the gas marketing factor."

Meanwhile, Upstream Director of Pertamina, Syamsu Alam said that there is currently no positive impact with the entry of the Jambaran-Tiung Biru project as one of the national priority projects. However, he believes the national priority label will have a positive impact on the development of the gas field in East Java.

"Influential for sure, but if not now. If it is a priority, there must be effort, "he said.

It would be better if the momentum of the entry of gas development projects into the list of national priority projects can show the seriousness of the government to secure domestic gas supply at the time of assumption of gas imports in 2020.

Licensing and access to land acquisition actually become what should be given by the government because it involves the aspect of ease of doing business.

Meanwhile, commercial and fiscal aspects should also be of concern as it concerns the competitiveness of investments when other countries are equally 'selling' to attract investors. So, whether the entry of four gas projects into the priontas project into a kind of simsalabim or abracadabra Spell?

IN INDONESIA

Menanti Efek Prioritas 4 Proyek Gas

Keputusan pemerintah dengan memasukkan empat proyek minyak dan gas bumi ke dalam prioritas nasional diharapkan mampu mempercepat realisasi investasi sektor migas.

Pemerintah berharap agar label proyek prioritas akan ada kekuatan baru sehingga proyek bisa berjalan dengan cepat. Keempat proyek migas tersebut adalah Iapangan Abadi, Blok Masela di Maluku; Lapangan Jambaran-Tiung Biru di Jawa Timur; Proyek Indonesia Deepwater Develop ment (IDD) di Kalimantan Timur; dan Tangguh Train III di Papua Barat.

Dasar penetapan proyek prioritas mengacu pada beberapa prinsip. Pertama, kesesuaian dengan Peraturan Presiden No. 75/2014 tentang Komite Percepatan Penyediaan lnfrastruktur Prioritas (KPPIP), proyek yang bermanfaat secara perekonomian atau secara finansial nilainya lebih besar dari proyek lain di sektor yang sama.

Kedua, sesuai dengan data KPPIP, dari 248 proyek yang didominasi pembangunan jalan dan bendungan ini, investasi dari proyek pengembangan gas Rp 289 triliun proyek gas Masela (Inpex Masela Limited), Rp 124,8 triliun untuk IDD (Chevron), kilang gas alam cair/LNG Tangguh Train III (BP Tangguh) Rp 104 triliun, dan Jambaran-Tiung Biru (Pertamina EP Cepu) Rp 26,7 triliun.

Total nilai investasi keempat proyek itu Rp 545,4 triliun atau setara dengan sekitar delapan proyek kereta cepat Jakarta-Bandung yang menelan biaya Rp 68,7 triliun.

Ketiga, proyek itu membutuhkan dukungan penyelesaian masalah dari KPPIP dan pemerintah. 

Keempat, proyek yang memberikan dampak partisipasi swasta yang besar sehingga diupayakan agar bisa memulai konstruksi pada 2018, mencapai penuntasan pendanaan (finanfial close) pada 2019 dan bisa memicu ketertarikan 

Swasta Berinvestasi.

Proyek yang masuk dalam radar KPPIP telah mendapat dukungan berupa percepatan perizinan seperti pada proyek Pelabuhan Patimban, percepatan dan penyelesaian kendala pengadaan lahan, dan pencapaian financial close seperti pada proyek PLTU Batang.

Dukungan lainnya yakni penyelesaian masalah pendanaan seperti pada proyek MKT Jakarta, penyusunan kajian kajian penyiapan proyek, penerbitan landasan hukum seperti Peraturan Pemerintah No. 27/2017 dan penyelesaian masalah penataan ruang seperti terjadi di proyek PLTU Jawa-1.

Jika ditilik lebih lanjut, tiga dari empat proyek yang belum menyentuh tahapan penyampaian keputusan akhir investasi/FID, masalah utamanya pada aspek komersial.

Pertama, Lapangan Abadi saat ini masih dibahas antara pemerintah dan kontraktor terkait dengan kondisi apa saja yang memungkinkan agar pengembangan lapangan gas bisa berjalan sesuai skala ekonomi setelah Presiden Joko Widodo memutuskan perubahan skema pembangunan kilang LNG yang semula kilang terapung menjadi kilang darat.

Pemerintah pun masih mencari calon pembeli gas agar bisa diputuskan kapasitas kilang LNG yang akan dibangun. Adapun, gas pertama dan Masela ditargetkan pemerintah pada 2026.

Kedua, proyek Jambaran-Tiung Biru yang kini masih dalam tahap negosiasi harga dengan PT Perusahaan Listrik Negara sebagai calon pembeli gasnya. Harga gas yang telah ditetapkan kontraktor belum bisa disepakati karena belum sesuai dengan kemampuan pembeli dan keekonomian pengembangan lapangan. Proyek itu ditargetkan bisa menghasilkan gas pertamanya pada 2019.

Ketiga, proyek IDD yang sejak pemerintah mengembalikan revisi proposal rencana pengembangan (plan of development/PoD) pada awal 2016 hingga kini belum terdapat progres karena hitungan asumsi keekonomian proyek sedang dievaluasi oleh kontraktor menyusul ditolaknya usulan pemberian insentif berupa investment credit.

Selain itu, dibahas pula soal opsi-opsi penggunaan fasilitas bersama di sekitar proyek IDD agar investasi bisa lebih rendah. Paling tidak, proyek yang hanya membutuhkan bantuan perizinan dan pembebasan lahan yakni Tangguh Train III yang rencananya proses konstruksi fisik pada akhir tahun ini sehingga gas mulai mengalir pada 2020.

LEBIH SULIT

Pengembangan lapangan gas sebenarnya lebih menantang dibandingkan dengan lapangan minyak. Analis Hulu Migas Asia Pasifik Wood Mackenzie Johan Utama mengatakan, selain soal perizinan dan pembebasan lahan, kontraktor harus memastikan adanya infrastruktur dan pembeli gas. Selain itu, masalah lain yang harus diselesaikan yakni terkait dengan kesepakatan harga gas dengan pembeli.

Belum bertemunya kemampuan pembeli dan keekonomian pengembangan lapangan membuat perjanjian jual beli gas batal dilakukan. Terkadang, pembeli yang sudah mendapat alokasi dari pemerintah batal membeli gas dari suatu lapangan karena harga yang di inginkan pembeli belum disepakati oleh produsen gas.

“Untuk lapangan gas, faktor yang paling sering menjadi penghambat adalah faktor pemasaran gas.”

Sementara itu, Direktur Hulu Pertamina, Syamsu Alam mengatakan bahwa saat ini belum terdapat dampak positif dengan masuknya proyek Jambaran-Tiung Biru sebagai salah satu proyek prioritas nasional. Namun, dia meyakini label prioritas nasional akan membawa dampak positif bagi pengembangan lapangan gas di Jawa Timur itu.

“Berpengaruh pasti, tetapi kalau sekarang, belum. Kalau itu prioritas, harus ada effort,” katanya.

Akan lebih baik bila momentum masuknya proyek pengembangan gas ke daftar proyek prioritas nasional bisa menunjukkan kesungguhan pemerintah untuk mengamankan pasokan gas domestik di saat asumsi impor gas pada 2020.

Perizinan dan akses pembebasan lahan sebenarnya menjadi apa yang semestinya diberikan pemerintah karena menyangkut aspek kemudahan berbisnis.

Sementara itu, aspek komersial juga fiskal seharusnya menjadi perhatian karena menyangkut daya saing investasi ketika negara lain sama-sama sedang ‘berjualan’ menarik investor. Jadi, apakah masuknya empat proyek gas ke dalam proyek priontas menjadi semacam mantra simsalabim atau abrakadabra? 

BISNIS INDONESIA, Page-30, Monday, July 17, 2017

Gas imports may not happen anytime soon

Indonesia may not have to import gas at all in the near future as it expects new production to make up for the declining output from various depleted gas fields, as domestic consumption remains modest.

The government previously predicted that the country might need to start importing liquefied natural gas (LNG) in 2019 as domestic demand was projected to skyrocket, especially considering the development of various gas fueled power plants across the country.

Data from state electricity firm PLN indicated that Indonesia’s annual gas demand for power generation would increase 81.2 percent to 2,805 billion British thermal units per day (bbtud) from 2017 to 2026.

On the other hand, Indonesia only produced 6,440 million standard cubic feet per day (mmscfd) of gas in 2016, 4.2 percent less than a year earlier. Previous projections showed that production might keep falling to about 6,000 mmscfd by 2030 because of aging fields and a lack of new discoveries, leading to a shortage of about 4,000 mmscfd, 32 tons of LNG, by then.

“However, we might not need to import gas in 2019, especially as new production from several fields, including the Jangkrik complex, could be higher than expected,” the Energy and Mineral Resources Ministry’s oil and gas director general, IGN Wiratmaja Puja, said on Wednesday. The Jangkrik complex comprising the Jangkrik field and the Jangkrik NorthEast field in the Muara Bakau block in the Makassar Strait has been on stream since late May.

The complex, which is operated by Italian energy firm Eni SpA, is expected to reach a peak production rate of 600 mmscfd by the end of the year, up from the previous estimate of only 450 mmscfd. 

Eni has also recently discovered the Marakes field near the Jangkrik complex that is projected to start producing 150 mmscfd of gas by the end of 2018 or early 2019.

“If Train 3 of the Tangguh LNG plant [in West Papua] is able to start operations in 2020, our gas supply will increase once again. If the Masela block [in the Arafura Sea] can also start production in 2026, I guess we don’t need to import gas after that,” Wiratmaja said.

Nonetheless, the government still has to find domestic buyers for all of the country’s LNG. According to the ministry, there were still 53.33 and 33.97 uncommitted LNG containers, each of which holds around 143,000 cubic meters of LNG, for 2017 and 2018, respectively, meaning that there were no buyers for this cargo as of Thursday

Moreover, uncommitted LNG averaged at 132.79 containers per year for the 2018 to 2035 delivery period, most of which came from the LNG Bontang relinery in East Kalimantan.

On the otherhand, Wiratmaja said domestic gas consumption for power generation might not be as high as expected because of Indonesia’s growing appetite for coal-Hred power plants.

PLN’s latest Electricity Procurement Business Plan (RUPTL) states that Indonesia intends to develop enough power plants to generate 77.9 gigawatts (GW) of electricity from 2017 to 2026.

About 40.9 percent of the generated electricity will come from coal fired facilities, 24.1 percent from combined cycle power plants and 7.2 percent from gas-fueled ones. State-owned energy giant Pertamina’s LNG vice president Didik Sasongko Widi shared the same view, saying that coal would still be the cheapest source of energ in the long run.

“The development of gas infrastructure faces a big challenge because of various problems, including ones related to land acquisition and permit issuance,” Didik said on Thursday.

The government has recently released the 2016 to 2030 road map for gas infrastructure development, estimated to have a total investment value of US$48.2 billion, Research and consultancy firm Wood Mackenzie has also estimated that Indonesia would need to build additional regasification infrastructure for LNG with a combined capacity of 25 million tons per annum (mtpa) by 2035.

Wood Mackenzie Asia Pacific senior analyst for gas and power Edi Saputra said that Indonesia did not have to import gas in the near future as there would only be a small gas shortage in 2020 and 2025.

“During the 2020 to 2025 period, many coal-fired power plants from the governments 35 GW program will commence operations, decreasing the LNG demand,” Edi said, adding that PLN would prefer to buy electricity from those plants because of their lower costs.

Jakarta Post,  Page-9, Friday, July 14, 2017