Gas Pipeline Project Immediately Auctioned

The Downstream Oil and Gas Regulatory Agency (BP Migas) immediately auctioned the natural gas pipeline project based on the proposed business actors. Head of Downstream Oil and Gas Regulatory Agency (BPH Migas) Fanshurullah Asa said it was still waiting for a proposal from business actors related to the gas pipeline that will be built early.

The proposal is a result of feasibility study / FS and the results of the definition of the project (front end engineering design / FEED). The proposal will be an input for the auction committee in order to prepare the auction of the pipeline project in certain sections.

Meanwhile, the proposed entry is the construction of a transmission gas pipeline from Pusri to Tanjung Api-Api, South Sumatra by Perusahaan Daerah Pertambangan and Energi (PDPDE) or PT Sumsel Energi Gemilang. The pipeline will continue to Muntok and Bangka and distribution pipelines in East Java.

"We will continue with the auction, while the form of cross-institutional auction committee then open the auction," he said not long ago.

In addition to encouraging the gas infrastructure to be built, it also encourages that the cost of toll gas delivery (toll fee) is more efficient. Consequently, gas prices at the consumer level may be lower.

Based on data from BPH Migas, the cost of leasing gas pipes in 55 segments, the difference is very far, ranging from US $ 0.1 to US $ 2.5 per thousand cubic feet (Mscf). The highest cost of gas pipeline rental is in the Arun-Belawan pipeline, Kepodang-Tambaklorok, South Sumatra-West Java (SSWJ) I and SSWJ II.

Meanwhile, the lowest price is in the Citarik-Dawuan pipeline, Pupuk Sriwijaya Layang Island and Gresik-PLN Gresik at a price below US $ 0.5 per Mscf. In fact, the average cost of renting a gas pipeline is US $ 0.89 per Mscf.

"In addition, it is more important that toll fees can be more efficient," he said

Group Head Marketing PT Perusahaan Gas Negara Tbk Adi Munandir said, although the gas market in Indonesia is still potential, investors are careful to invest. Although the government has a gas balance along with its projected demand and supply of gas, there are still uncertainties.

Rising demand will not happen if the gas infrastructure is not built.

"The existing [demand] demand rate is considered to be a picture of future demand, without doing anything then it will not grow," he said.

Currently, there are still 14 unused local liquefied natural gas (LNG) cargoes. In addition, special economic region initiatives such as Sei Mangkei Special Economic Zone, Kuala Tanjung and Kendal, which until now have not been built so can not realize additional gas demand.

According to him, seriousness is needed as well as cross-institutional integrated planning. For example, the planning of gas users in the Ministry of Industry, Ministry of Finance to provide incentives as well as the Ministry of Energy and Mineral Resources (ESDM) related to the potential of gas that can be utilized.

"The synergy between the key stakeholders of the demand side is like the Ministry of Industry, in terms of the Ministry of Finance to provide stimulus and incentives," he said.

IN INDONESIA

Proyek Pipa Gas Segera Dilelang

Badan Pengatur Hilir Minyak dan Gas Bumi segera melakukan lelang proyek pipa gas bumi berdasarkan usulan pelaku usaha. Kepala Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) Fanshurullah Asa mengatakan, pihaknya masih menanti usulan dari pelaku usaha terkait dengan ruas pipa gas yang akan dibangun lebih awal.

Usulan itu berupa hasil feasibility study/FS dan hasil pendefinisian proyek (front end engineering design/FEED). Usulan tersebut akan menjadi masukan bagi panitia lelang agar bisa menyiapkan lelang proyek pipa di ruas tertentu.

Sementara itu, usulan yang masuk yakni pembangunan pipa gas transmisi dari Pusri ke Tanjung Api-Api, Sumatra Selatan oleh Perusahaan Daerah Pertambangan dan Energi (PDPDE) atau PT Sumsel Energi Gemilang. Pipa itu akan meneruskan ke Muntok dan Bangka dan pipa distribusi di Jawa Timur.

“Kami akan lanjut dengan lelang, sedangkan bentuk panitia lelang lintas lembaga kemudian buka lelang,” ujarnya belum lama ini.

Selain mendorong agar infrastruktur gas terbangun, pihaknya juga mendorong agar biaya penghantaran gas (toll fee) lebih efisien. Alhasil, harga gas di tingkat konsumen bisa lebih rendah.

Berdasarkan data BPH Migas, biaya sewa pipa gas di 55 ruas, selisihnya sangat jauh, yakni berkisar US$ 0,1-US$ 2,5 per seribu kaki kubik (Mscf). Biaya sewa pipa gas yang tertinggi berada di ruas pipa Arun-Belawan, Kepodang-Tambaklorok, South Sumatera-West Java (SSWJ) I dan SSWJ II.

Sementara itu, harga terendah yakni di ruas pipa Citarik-Dawuan, Pulau Layang Pupuk Sriwijaya dan Gresik-PLN Gresik dengan harga di bawah US$0,5 per Mscf. Padahal, rata-rata biaya sewa pipa gas US$ 0,89 per Mscf.

“Selain itu, yang lebih penting agar toll fee bisa lebih efisien,” katanya

Group Head Marketing PT Perusahaan Gas Negara Tbk Adi Munandir mengatakan, meskipun pasar gas di Indonesia masih potensial, investor berhati-hati untuk menanamkan modalnya. Kendati pemerintah memiliki neraca gas beserta proyeksi kebutuhan dan pasokan gas, masih terdapat faktor ketidakpastian.

Naiknya permintaan tidak akan terjadi bila infrastruktur gas tidak terbangun.

“Angka demand [permintaan] yang ada dianggap sebagai gambaran demand di masa depan, tanpa melakukan apa-apa maka tidak akan tumbuh,” katanya.

Saat ini masih terdapat 14 kargo gas alam cair (LNG) lokal yang belum terserap. Di samping itu, inisiatif kawasan ekonomi khusus seperti Kawasan Ekonomi Khusus Sei Mangkei, Kuala Tanjung dan Kendal yang hingga kini belum terbangun sehingga belum bisa merealisasikan tambahan permintaan gas.

Menurutnya, diperlukan keseriusan juga perencanaan yang terintegrasi lintas lembaga. Sebagai contoh, perencanaan dari segi pengguna gas di Kementerian Perindustrian, Kementerian Keuangan untuk memberikan insentif juga Kementerian Energi dan Sumber Daya Mineral (ESDM) terkait dengan potensi-potensi gas yang bisa dimanfaatkan.

“Sinergi antara key stakeholders [pemangku kepentingan utama] dari sisi demand seperti Kementerian Perindustrian, dari sisi Kementerian Keuangan untuk memberikan stimulus dan insentif.” katanya.

Bisnis Indonesia,  Page-30, Thursday, July 20, 2017

Lifting Down, Government Gives Many Incentives

The declining production of oil and gas (lifting) oil and gas makes the government give many incentives. Incentives are given to contractors of cooperation contracts (KKKS) during the search period of oil and gas reserves (exploration).

Such fiscal incentives are granted by the issuance of Government Regulation No. 27 of 2017 on the cost of repossible operations and the treatment of income tax in the upstream oil and gas business.

The incentives provided are the waiver of all fiscal liabilities and part of the facility's liability during the exploration period. The tax obligations are exempted, such as Value Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM). 

    In addition, there are Income Tax (PPh) 22 imports as well as reduction of Land and Building Tax (PBB) During the period of exploitation, Earth and Building can reach 100 percent according to the discretion of the finance minister.

Secretary of the Directorate General of Oil and Gas Susyanto stated that the regulation was issued to accelerate the discovery of oil and gas reserves.

IN INDONESIA

Lifting Turun, Pemerintah Berikan Banyak Insentif

Produksi siap jual (liftng) minyak dan gas bumi yang terus menurun membuat pemerintah memberi banyak insentif. Insentif diberikan kepada kontraktor kontrak kerja sama (KKKS) selama masa pencarian cadangan migas (eksplorasi).

Insentif fiskal tersebut diberikan dengan penerbitan Peraturan Pemerintah No 27 Tahun 2017 tentang biaya operasi yang dapat dikembalikan dan perlakuan pajak penghasilan di bidang usaha hulu minyak dan gas bumi.

Insentif yang diberikan adalah pembebasan seluruh kewajiban fiskal dan sebagian kewajiban fasilitas selama masa eksplorasi. Kewajiban perpajakan yang dibebaskan, antara lain Pajak Pertambahan Nilai (PPN) dan Pajak Penjualan atas Barang Mewah (PPnBM]. 

     Selain itu, ada Pajak Penghasilan (PPh) 22 impor Serta pengurangan Pajak Bumi dan Bangunan (PBB). Selama masa eksploitasi, pemotongan Pajak Bumi dan Bangunan bisa mencapai 100 persen sesuai diskresi menteri keuangan.

Sekretaris Direktorat Jenderal Minyak dan Gas Bumi Susyanto menyatakan, aturan itu diterbitkan untuk mempercepat penemuan cadangan migas.

Jawa Pos,  Page-6, Thursday, July 20, 2017

EMR does not Provide Gas Allocation to Pipe Owners

The Ministry of Energy and Mineral Resources (ESDM) still provides an opportunity for PT Rekayasa Industri to realize the construction of Cirebon-Semarang gas pipeline along 255 kilometers (km) which has been 11 years abandoned. Minister of Energy and Mineral Resources (ESDM), Ignatius Jonan said the government still opens opportunities for Industrial Engineering to build gas pipeline Cirebon-Semarang. 

     But the government will not provide gas allocation to the owners of the transmission pipeline. The government will only provide gas allocation to gas buyers.

"We will sell it to PLN who uses gas pipelines," said Jonan, Wednesday (7/19).

The concept of allocation of gas to buyers of this gas according to Jonan so that there is no more pipe gas price monopoly. If the gas allocation is given to the owner of the pipeline, then the owner of the pipe can set its own gas price. While the government wants pipeline gas prices to be more competitive than liquefied natural gas (LNG) gas prices.

"If one wants to build a leased pipe like a freeway, he can compare, which is expensive to use pipes or use LNG. Cost is expensive, so it can be competition, "he added.

IN INDONESIA

ESDM Tidak Memberikan Alokasi Gas ke Pemilik Pipa

Kementerian Energi dan Sumber Daya Mineral (ESDM) masih memberi peluang bagi PT Rekayasa Industri merealisasikan pembangunan pipa gas ruas Cirebon-Semarang sepanjang 255 kilometer (km) yang sudah 11 tahun terbengkalai. 

     Menteri Energi dan Sumber Daya Mineral (ESDM), Ignasius Jonan bilang pemerintah masih membuka peluang bagi Rekayasa Industri membangun pipa gas Cirebon-Semarang. Namun pemerintah tidak akan memberikan alokasi gas kepada pemilik pipa transmisi. Pemerintah hanya akan memberikan alokasi gas kepada pembeli gas. 

"Kami bilang ini mau dijual kemana? Siapa yang mau menggunakan pipa gasnya? PLN yang menggunakan? Ya, biarkan PLN yang minta alokasi gasnya itu," kata Jonan, pada Rabu (19/7).

Konsep pemberian alokasi gas kepada pembeli gas ini menurut Jonan agar tidak ada lagi monopoli harga gas pipa. Jika alokasi gas diberikan kepada pemilik pipa, maka pemilik pipa bisa mengatur harga gas sendiri.  Sementara pemerintah ingin harga gas pipa bisa lebih kompetitif dibandingkan harga gas liquefied natural gas (LNG). 

“Kalau orang mau membangun pipa disewakan seperti jalan tol, dia bisa bandingkan, mahal mana menggunakan pipa atau menggunkan LNG.  Cost-nya itu mahal mana, jadi bisa kompetisi,” imbuhnya.

Kontan,  Page-14, Thursday, July 20, 2017

ExxonMobil runs away from East Natuna

ExxonMobil chose to leave the East Natuna Block gas development project in the waters of the Riau Archipelago because it is considered incompatible with economies of scale.

Vice President of Public & Govemment Affairs ExxonMobil Indonesia, Erwin Maryoto, said that after completing the study together with the consortium, the company did not want to continue the activities and discussions about East Natuna.

ExxonMobil with PTT EP Thailand and PT Pertamina as the consortium leader conducted Technology and Market Review (TMR) since early 2016.

The study undertakes to identify technology as well as commercial aspects so that projects can be developed according to economies of scale. However, from the market review completed in June 2017 it was found that the project was not worth the investment.

"After completing the technology and market review and reviewing its findings, ExxonMobil no longer wishes to continue the discussion or further activities related to East Natuna," he said.

The arrival of Senior Vice President of ExxonMobil Corporation Mark W. Albers and United States Vice President Michael R. Pence in April 2017 was closed without any new investment in the upstream oil and gas sector of the US company or bringing positive news about the East Natuna project.

In fact, the government wants the development of gas in Natuna waters can be realized because of its leading location and large gas potential. By the end of 2016, there was an option to immediately sign a cooperation contract. The way, separate development of oil and gas because it is feared the development of oil structures will disrupt the gas structure. However, it was canceled because the study of market and technology is still in process.

Based on data from the Ministry of Energy and Mineral Resources, East Natuna Block holds a potential of 222 trilion cubic feet (tcf) with only 46 tcf of which gas can be produced. The reason, 72% of the composition is carbon dioxide.

Development of East Natuna is not the first time. The cooperation contract of Natuna D-Alpha Block was signed in 1980. After the contract expires, the government first officially appoints Pertamina to develop the Natuna D-Alpha Block in the Letter of the Minister of Energy and Mineral Resources. 3588/11 / MEM / 2008 dated June 2, 2008 on the Status of Natuna D Alpha Gas.

After that, Pertamina invited partners and then signed the principle of agreement (POA) East Natuna Block on August 19, 2011 together with Esso Natuna Limited, affiliated company ExxonMobil and PTT EP Thailand.

The signing aims to continue the process of preparing for a new cooperative contract, the POA which should have ended by the end of 2015 and then extended 30 months to complete the market and technology review. The study was accelerated and completed in mid-2017.

Decisions in East Natuna will not affect other activities. Furthermore, it is still committed to continue investing in Indonesia. Erwin also said ExxonMobil is still open with other new opportunities in Indonesia.

Based on data from SKK Migas, currently, ExxonMobil through Mobil Cepu Limited becomes operator in Cepu Block. Banyu Urip Field oil production in Cepu Block contributed 25% of national oil production of 808,000 barrels per day (bpd) with the realization of 199,800 bpd by the end of June 2017.

"We remain committed to ExxonMobil's operations in Indonesia and continue to seek and assess new opportunities in Indonesia," he said.

ECONOMIC SCALE

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) IGN Wiratmaja Puja said in his official letter to the Minister of Energy and Mineral Resources Ignasius Jonan, East Natuna gas development is not suitable with economies of scale because the gas price generated from the field is difficult to buy the market .

By using the production sharing contract (PSC) scheme and the current situation, upstream gas prices from East Natuna are more than US $ 10 per MMBtu. That is, the gas price does not include the cost of delivery through the pipeline and the cost of liquefaction gas when it will be converted into liquefied natural gas / LNG.

"Which is definitely more than US $ 10. The price of gas in the upstream, "he said.

Upstream Director of Pertamina Syamsu Alam said, with no longer involved ExxonMobil will be sought by other partners who are likely to develop Natuna gas. According to him, the company will not be able to develop alone gas field targeted to start production in 2027 because of the costs and risks that are too high.

"Of course Pertamina is not possible to develop itself, too big the cost and the risk," he said.

He considered that although the consortium members are no longer the same, the results of the study will still be used as a reference for the development of East Natuna. Related to partners to be coupled, Syamsu said, there have been several international oil companies (IOC) that are interested to develop Natuna gas.

"There are some IOCs who are also interested to participate in developing the block," said Syamsu.

IN INDONESIA

ExxonMobil Hengkang dari East Natuna

ExxonMobil memilih hengkang dari proyek pengembangan gas Blok East Natuna di perairan Kepulauan Riau karena dinilai tidak sesuai dengan skala keekonomian.

Vice President Public & Govemment Affairs ExxonMobil Indonesia Erwin Maryoto mengatakan, setelah menyelesaikan kajian bersama dengan konsorsium, perusahaan tidak ingin melanjutkan kegiatan maupun pembahasan soal East Natuna.

ExxonMobil bersama PTT EP Thailand dan PT Pertamina sebagai pemimpin konsorsium melakukan kajian teknologi dan pasar (technology and market review/TMR) sejak awal 2016.

Kajian yang dilakukan benujuan untuk mengidentifikasi teknologi juga aspek komersial sehingga proyek bisa dikembangkan sesuai dengan skala ekonomi. Namun, dari kajian pasar yang diselesaikan pada Juni 2017 itu didapatkan bahwa proyek tidak layak investasi.

“Setelah menyelesaikan technology and market review dan mengkaji temuannya, ExxonMobil tidak lagi berkeinginan untuk meneruskan pembahasan atau kegiatan lebih lanjut terkait East Natuna," ujarnya

Kedatangan Senior Vice President ExxonMobil Corporation Mark W. Albers dan Wakil Presiden Amerika Serikat Michael R. Pence pada April 2017 ditutup tanpa adanya investasi baru di sektor hulu migas dari perusahaan asal Amerika Serikat itu atau membawa kabar positif tentang proyek East Natuna.

Padahal, pemerintah menginginkan agar pengembangan gas di perairan Natuna bisa segera terealisasi karena lokasinya yang terdepan dan potensi gasnya yang besar. Pada akhir 2016, sempat terdapat opsi untuk segera meneken kontrak kerja sama. Caranya, pengembangan terpisah antara minyak dan gasnya karena dikhawatirkan pengembangan struktur minyak akan mengganggu struktur gas.

Namun, hal itu batal dilakukan karena kajian pasar dan teknologi masih dalam proses.

Berdasarkan data Kementerian ESDM, Blok East Natuna menyimpan potensi sebesar 222 trilion cubic feet (tcf) dengan hanya 46 tcf gas di antaranya yang bisa diproduksi. Pasalnya, 72% komposisinya adalah karbondioksida.

Pengembangan East Natuna bukan yang pertama kalinya. Kontrak kerja sama Blok Natuna D-Alpha diteken pada 1980. Setelah kontrak berakhir, pemerintah pertama kalinya secara resmi menunjuk Pertamina untuk mengembangkan Blok Natuna D-Alpha dalam Surat Menteri ESDM No. 3588/11/ MEM/2008 tertanggal 2 Juni 2008 tentang Status Gas Natuna D Alpha.

Setelah itu, Pertamina mengajak mitra dan kemudian menandatangani prinsip-prinsip kesepakatan (principle of agreement/POA) Blok East Natuna pada 19 Agustus 2011 bersama Esso Natuna Limited, perusahaan afiliasi ExxonMobil dan PTT EP Thailand.

Penandatanganan itu bertujuan untuk melanjutkan proses persiapan kontrak kerja sama yang baru, POA yang seharusnya berakhir pada akhir 2015 itu kemudian diperpanjang 30 bulan untuk menyelesaikan kajian pasar dan teknologi. Kajian pun dipercepat dan selesai di medio 2017. 

Keputusan di East Natuna tidak akan mempengaruhi pada kegiatan lainnya. Lebih lanjut, pihaknya masih berkomitmen melanjutkan investasi di Indonesia. Erwin pun menyebut ExxonMobil masih terbuka dengan peluang-peluang baru lainnya di Indonesia.

Berdasarkan data SKK Migas, saat ini, ExxonMobil melalui Mobil Cepu Limited menjadi operator di Blok Cepu. Produksi minyak Lapangan Banyu Urip di Blok Cepu berkontribusi sebesar 25% dari produksi minyak nasional yakni 808.000 barel per hari (bph) dengan realisasi 199.800 bph pada akhir Juni 2017.

“Kami tetap berkomitmen pada operasi ExxonMobil di Indonesia dan terus mencari dan mengkaji peluang baru di Indonesia,” katanya.

SKALA EKONOMI

Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) IGN Wiratmaja Puja mengatakan dalam Surat resminya kepada Menteri ESDM Ignasius Jonan, pengembangan gas East Natuna tidak sesuai dengan skala ekonomi karena harga gas yang dihasilkan dari lapangan tersebut sulit untuk bisa dibeli pasar.

Dengan menggunakan skema kontrak bagi hasil produksi (production sharing contract/PSC) dan situasi saat ini, harga gas di tingkat hulu dari East Natuna lebih dari US$10 per MMBtu. Artinya, harga gas tersebut belum termasuk biaya penghantaran melalui pipa maupun biaya pencairan gas bila akan diubah menjadi gas alam cair/LNG. 

“Yang jelas lebih dari US$10. Harga gas di hulunya,” katanya.

Direktur Hulu Pertamina Syamsu Alam mengatakan, dengan tidak lagi terlibatnya ExxonMobil akan dicari mitra-mitra lain yang berpeluang untuk mengembangkan gas Natuna. Menurutnya, perseroan tidak akan bisa mengembangkan sendirian lapangan gas yang ditarget mulai berproduksi pada 2027 itu karena biaya dan risikonya yang terlalu tinggi.

“Pastinya Pertamina tidak mungkin mengembangkan sendiri, terlalu besar biaya dan risikonya," ujarnya.

Dia menilai bahwa kendati anggota konsorsium tidak lagi sama, hasil kajian masih akan dijadikan acuan pengembangan East Natuna. Terkait dengan mitra yang akan digandeng, Syamsu menuturkan, telah terdapat beberapa perusahaan migas internasional (international oil company/IOC) yang berminat turut mengembangkan gas Natuna.

"Ada beberapa IOC yang juga tertarik untuk ikut mengembangkan blok tersebut,” kata Syamsu. 

Bisnis Indonesia, Page-30, Wednesday, July 19, 2017

PT Pertamina and Repsol Signed Business Cooperation

In order to accelerate production and increase oil reserves, PT Pertamina signed a joint study agreement with Repsol, a Spanish oil and gas company. The cooperation between Pertamina and Repsol includes four studies. Namely upstream digital technology, research on enhanced oil recovery (EOR) technology development, second generation biofuel, and research and development management.

According to Pertamina President Director Elia Massa Manik, a study with upstream-based digital technology will produce a reservoir rock characteristic model that will be applied in Pertamina-Repsol Jambi Merang working area as a pilot and other work areas.

"In the future, Pertamina's human resources will be able to develop similar reservoir characteristics in other Pertamina working areas," said Elia.

For EOR technology development research, Repsol will make transfer of knowledge and technology in applying field scale EOR. This cooperation will apply a laboratory study of the EOR filtration method for the Sago and Limau Field trial program (Q51).

As to sustain the government's program to meet the 23% target of Renewable Energy in 2025, as PP No 79 of 2014, Pertamina and Repsol will build cooperation in the development of bio gasoline product production. This product will use biomass pyrolysis technology.

IN INDONESIA

PT Pertamina dan Repsol Menandatangani Kerjasama Bisnis

Demi mempercepat produksi dan meningkatkan cadangan minyak, PT Pertamina menandatangani perjanjian kerjasama Studi bersama Repsol, perusahaan migas asal Spanyol. Kerjasama antara Pertamina dan Repsol ini meliputi empat Studi. Yakni teknologi hulu berbasis digital, riset pengembangan teknologi enhanced oil recovery (EOR), biofuel generasi kedua, serta manajemen riset dan pengembangan.

Menurut Direktur Utama Pertamina Elia Massa Manik, studi bersama teknologi hulu berbasis digital akan menghasilkan model karakteristik batuan reservoir yang akan diterapkan di wilayah kerja Pertamina-Repsol Jambi Merang sebagai percontohan dan wilayah kerja lain. 

“Ke depan SDM Pertamina akan mampu mengembangkan karakteristik reservoir serupa di Wilayah kerja Pertamina lainnya,” kata Elia.

Untuk riset pengembangan teknologi EOR, Repsol akan melakukan alih pengetahuan dan teknologi dalam menerapkan EOR skala lapangan. Kerjasama ini akan menerapkan sebuah studi laboratorium metode filtrasi EOR untuk program percobaan Lapangan Sago dan Limau (Q51).

Adapun untuk menopang program pemerintah dalam memenuhi target 23% Energi Baru Terbarukan tahun 2025, sebagaimana PP No 79 Tahun 2014, Pertamina dan Repsol akan membangun kerjasama dalam pengembangan produksi produk bio gasolin. Produk ini akan menggunakan teknologi pirolisis biomassa.

Kontan, Page-14, Wednesday, July 19, 2017

Working on Natuna Block, Pertamina Forms a New Consortium

PT Pertamina formed a new consortium to continue the development of the East Natuna Block, following the departure of ExxonMobil as one of the existing consortium members. In his letter, ExxonMobil stated that the East Natuna Block development is not economical with the current condition.

Upstream Director of Pertamina Syamsu Alam said the company is unlikely to work on the development of East Natuna Block itself. Because the costs and risks to be borne by the company will be too big. Therefore, with ExxonMobil not continuing

Investment in the East Natuna Block, forming a new consortium to be one solution.

"Such a possibility [will form a new consortium]," he said in Jakarta, Tuesday (18/7).

He said it has not yet determined who the new partner will be selected who will participate in developing East Natuna Block. He also declined to state whether PTT Thailand will return to partner or not. PTT Thailand is also one of the company's partners in the existing consortium.

However, a number of international oil and gas companies are said to be interested in becoming Pertamina's partners.

"There are several IOC (international oil company) who are also interested to participate in developing the block," said Syamsu Alam.

Vice President of Public and Government Affairs of ExxonMobil Indonesia Erwin Maryoto stated that his side will not be involved in managing East Natuna Block. However, ExxonMobil remains committed to its operations in Indonesia and will continue to seek and assess new opportunities in Indonesia.

"After completing Technology and Market Review (TMR) and reviewing its findings, ExxonMobil no longer wishes to continue the discussion or further activities related to East Natuna," he said.

Erwin added that his side saw that the government had other considerations to develop East Natuna soon. Therefore, it does not want the plan to be delayed due to the current condition that does not allow ExxonMobil to participate in developing East Natuna.

Meanwhile, Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM) I Gusti Nyoman Wiratmaja said that ExxonMobil has sent a letter to the Ministry. In the letter, ExxonMobil stated that from the results of the calculation, the development of the East Natuna Block is not economical if using the terms that exist today.

"We are discussing internally," he said. The government will also call ExxonMobil to request a detailed explanation of the contents of the letter. "Next week may be called," he added.

Nevertheless, still in the same letter, ExxonMobil is said to be willing to assist Indonesia in the development of the East Natuna Block. "In his letter Exxon clearly says they have technology and technical skills. If necessary, ready to help, "said Wiratmaja.

ExxonMobil will be able to supply the necessary technology or data. ExxonMobil is not the first company to step down from the East Natuna Block development. Initially, Pertamina took ExxonMobil, Total SA, and Petronas to work on this block. Then in 2012, Petronas declined from the consortium and was replaced by PTT Thailand.

Last year, Pertamina claimed that Total SA had withdrawn from the consortium. With the pullback of ExxonMobil, the Thailand PTT is the only surviving partner.

Wait for TMR

For the continuation of East Natuna Block in the future, Wiratmaja admits that he is still waiting for Technology and Market Review (TMR) which Pertamina and its partners make. Although Pertamina claims to have completed TMR, he admitted that he has not received his report officially.

"We wait, the sooner the better, the sooner the gas production from there [East Natuna Block]," he said.

Discussion on the implementation of cooperation contract of gross split scheme in East Natuna block also called waiting TMR. But according to the regulation, all new oil and gas contracts will use the gross split scheme contract

"Give us time next week, we invite all of them. Who knows TMR is done, "he said.

Related to the establishment of a new consortium for the development of the East Natuna Block, it stated also need further discussion. What is clear, the government has assigned the management of East Natuna Block to Pertamina. Furthermore, the company is allowed to cooperate with other oil and gas companies, including previous block manager ExxonMobil.

Syamsu Alam calls TMR East Natuna Block has been completed. TMR can be a reference in preparing the development of the block. "Of course TMR results are very useful to be used as a reference," he said.

As is known, TMR is required because of the characteristics of the East Natuna Block. The block gas reserves are estimated to be very large, reaching 222 trillion cubic feet. But the carbon dioxide content is also quite high, reaching 72%, so only 46 trillion cubic feet can be taken.

The government first appointed Pertamina to develop the Natuna D-Alpha Block in the Letter of the Minister of Energy and Mineral Resources No. 3588/11 / MEM / 2008 dated June 2, 2008 on Natuna D Alpha Gas Status (before being changed to East Natuna). Furthermore, at the beginning of this year, the government re-affirmed the assignment of East Natuna Block management to Pertamina.

After that, the Pertamina consortium and its partners signed the East Natuna Block principle of agreement on August 19, 2011. This challenge is intended to continue the preparation process of the cooperation contract. The POA that expires at the end of 2015 is then extended by 30 months due to unfinished TMR.

IN INDONESIA

Garap Blok Natuna, Pertamina Bentuk Konsorsium Baru

PT Pertamina membentuk konsorsium baru untuk melanjutkan pengembangan Blok East Natuna, menyusul hengkangnya ExxonMobil selaku salah satu anggota konsorsium eksisting. Dalam suratnya, ExxonMobil menyatakan pengembangan Blok East Natuna tidak ekonomis dengan kondisi saat ini.

Direktur Hulu Pertamina Syamsu Alam mengatakan, perseroan tidak mungkin mengerjakan pengembangan Blok East Natuna sendiri. Pasalnya biaya dan risiko yang harus ditanggung perseroan akan terlalu besar. Karenanya, dengan ExxonMobil tidak melanjutkan investasi di Blok East Natuna, membentuk konsorsium baru menjadi salah satu solusi. 

“Kemungkinan seperti itu [akan membentuk konsorsium baru] ,” kata dia di Jakarta, Selasa (18/7).

Dikatakannya, pihaknya belum menentukan siapa mitra baru yang dipilih yang akan ikut mengembangkan Blok East Natuna. Dia juga enggan menyatakan apakah PTT Thailand akan kembali menjadi mitra atau tidak. PTT Thailand juga merupakan salah satu mitra perseroan dalam konsorsium eksisting.

Namun, sejumlah perusahaan migas internasional disebutnya tertarik menjadi mitra Pertamina.

“Ada beberapa IOC (international oil company) yang juga tertarik untuk ikut mengembangkan blok tersebut,” kata Syamsu Alam.

Vice President Public and Government Affairs ExxonMobil Indonesia Erwin Maryoto menyatakan, pihaknya tidak akan terlibat lagi dalam pengelolaan Blok East Natuna. Meski demikian, ExxonMobil tetap berkomitmen pada operasinya di Indonesia serta akan terus mencari dan mengkaji peluang baru di Indonesia.

“Setelah menyelesaikan Technology and Market Review (TMR) dan mengkaji temuannya, ExxonMobil tidak lagi berkeinginan untuk meneruskan pembahasan atau kegiatan lebih lanjut terkait East Natuna,” kata dia.

Erwin menambahkan, pihaknya melihat bahwa pemerintah mempunyai pertimbangan lain untuk segera mengembangkan East Natuna. Karenanya, pihaknya tidak ingin rencana tersebut tertunda karena kondisi saat ini yang tidak memungkinkan ExxonMobil ikut mengembangkan East Natuna.

Sementara itu, Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) I Gusti Nyoman Wiratmaja menuturkan, ExxonMobil sudah mengirimkan surat kepada Kementerian. Dalam surat tersebut, ExxonMobil menyatakan bahwa dari hasil hitungannya, pengembangan Blok East Natuna tidak ekonomis jika menggunakan terms yang ada saat ini.

“Kami sedang membahas secara internal,” ujarnya.  Pemerintah juga akan memanggil ExxonMobil untuk meminta penjelasan rinci atas isi surat tersebut. “Minggu depan mungkin akan dipanggil ,” tambahnya.

Meski demikian, masih dalam surat yang sama, ExxonMobil disebutnya bersedia membantu Indonesia dalam pengembangan Blok East Natuna. “Di suratnya Exxon sangat jelas bilang mereka memiliki teknologi dan kemampuan teknis. Jika diperlukan, siap membantu,” ujar Wiratmaja. 

ExxonMobil nantinya bisa memasok teknologi atau data-data yang diperlukan. ExxonMobil bukan perusahaan pertama yang mundur dari pengembangan Blok East Natuna. Awalnya, Pertamina menggandeng ExxonMobil, Total SA, dan Petronas untuk menggarap blok ini. Kemudian pada 2012, Petronas menyatakan mundur dari konsorsium dan digantikan oleh PTT Thailand.

Selanjutnya pada tahun lalu, Pertamina mengklaim Total SA telah mundur dari konsorsium. Dengan mundurnya ExxonMobil, maka PTT Thailand menjadi satu-satunya mitra yang masih bertahan.

Tunggu TMR

Untuk kelanjutan pengerjaan Blok East Natuna ke depannya, Wiratmaja mengaku masih menunggu kajian tekonolgi dan pasar (technology and market review/TMR) yang dibuat Pertamina bersama mitranya. Meski Pertamina mengklaim telah merampungkan TMR, dirinya mengaku belum menerima laporannya secara resmi.  

"Kami tunggu, makin cepat makin baik, makin bisa segera produksi gas dari situ [Blok East Natuna],” kata dia. 

Pembahasan penerapan kontrak kerja sama skema bagi hasil kotor (gross split) di Blok East Natuna disebutnya juga menunggu TMR. Tetapi sesuai peraturan, seluruh kontrak migas baru akan menggunakan kontrak skema gross split   

“Beri kami waktu minggu depan, kami undang semuanya. Siapa tahu TMR sudah selesai,” ujarnya. 

Terkait pembentukan konsorsium baru untuk pengembangan Blok East Natuna, pihaknya menyatakan juga perlu pembahasan lebih lanjut. Yang jelas, pemerintah telah menugaskan pengelolaan Blok East Natuna kepada Pertamina. Selanjutnya, perseroan dibolehkan bekerja sama dengan perusahaan migas lain, termasuk pengelola blok sebelumnya yaitu ExxonMobil.

Syamsu Alam menyebut TMR Blok East Natuna telah selesai. TMR ini dapat menjadi acuan dalam menyusun pengembangan blok tersebut. "Tentu hasil TMR sangat bermanfaat untuk dijadikan acuan," tuturnya.

Seperti diketahui, TMR diperlukan karena karakteristik Blok East Natuna. Cadangan gas blok ini memang diperkirakan sangat besar, yakni mencapai 222 triliun kaki kubik. Namun kandungan karbondioksidanya juga cukup tinggi, yaitu mencapai 72%, sehingga hanya 46 triliun kaki kubik saja yang dapat diambil.

Pemerintah pertama kalinya secara resmi menunjuk Pertamina untuk mengembangkan Blok Natuna D-Alpha dalam Surat Menteri ESDM No 3588/11/MEM/2008 tertanggal 2 Juni 2008 tentang Status Gas Natuna D Alpha (sebelum berganti menjadi East Natuna). Selanjutnya, pada awal tahun ini, pemerintah kembali menegaskan penugasan pengelolaan Blok East Natuna kepada Pertamina.

Setelah itu, konsorsium Pertamina dan mitranya menandatangani prinsip - prinsip kesepakatan (principle of agreement/POA) Blok East Natuna pada 19 Agustus 2011. Penadantanganan ini dimaksudkan untuk melanjutkan proses persiapan kontrak kerja sama. POA yang berakhir pada akhir 2015 ini kemudian diperpanjang 30 bulan karena TMR belum selesai.

 Investor Daily, Page-9, Wednesday, July 19, 2017

Pertamina Asked to Find New Partners

The Ministry of Energy and Mineral Resources (ESDM) signaled Pertamina to seek partners to join the consortium of East Natuna Block operation. Director General of Oil and Gas at the Ministry of ESDM IGN Wiratmaja Puja said the government has given Pertamina authority to seek partners in the consortium. This is because Exxon intends to withdraw from the consortium post-economic count.

He said that currently there are several oil and gas companies that are also interested to be able to manage East Natuna Block.

"This is what Pertamina wants to discuss with the consortium with whom the government has been assigned to Pertamina and may cooperate with partners who are managers of the previous Working Area," said Wiratmaja at the ESDM office on Tuesday (18/7).

Wiratmaja explained, there are several options that can be taken Pertamina to be an ally in this consortium. Moreover, currently according to him, two consortium partners have their respective problems.

Exxon argues, the block is not economical, while PTT Exploration Thailand  until now still in having trouble with Montara. This is what makes the government let Pertamina to find partners in the consortium. Previously, Exxon mobile sent a letter to the EMR for the assessment. In response, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, IGN Wiratmaja Puja, said that they will review the opinion of Exxon.

"The contents of the letter Exxon states that East Natuna Block is not economical, but it is Exxon's previous review Exxon has a Working Area (WK) . In the letter, Exxon clearly says they have technology and technical capabilities, if needed to help Indonesia. The contents of the letter, "said Wiratmaja when met at the Office of the Ministry of Energy and Mineral Resources, Tuesday (18/7).

Wiratmaja said next week the government will meet with Exxon to discuss the East Natuna Block. But, before meeting the Ministry of Energy and Mineral Resources will conduct an internal review by calling Pertamina to present their TMR assessment results.

Earlier, Minister of ESDM Ignasius Jonan said, the Exxon sent a letter to the government related East Natuna Block. The letter was translated by Jonan that Exxon withdrew from the consortium of operation of East Natuna Block because it was considered uneconomical.

IN INDONESIA

Pertamina Diminta Cari Mitra Baru

Kementerian Energi dan Sumber Daya Mineral (ESDM) memberikan sinyal kepada Pertamina untuk bisa mencari mitra untuk bergabung dalam konsorsium pengoperasian Blok East Natuna. Direktur Jenderal Minyak dan Gas Kementerian ESDM IGN Wiratmaja Puja mengatakan, pemerintah sudah memberikan kewenangan kepada Pertamina untuk mencari mitra dalam konsorsium. Hal ini karena Exxon berniat mundur dari konsorsium pasca penghitungan keekonomian.

Ia menyatakan, saat ini ada beberapa perusahaan migas yang juga berminat untuk bisa mengelola Blok East Natuna. 

"Nanti ini yang perlu dibahas pertamina ingin konsorsium dengan siapa. Pemerintah sudah ada penugasan kepada pertamina dan boleh bekerja sama dengan partner yang pengelola Wilayah Kerja sebelumnya," ujar Wiratmaja di Kantor ESDM, Selasa (18/7).

Wiratmaja menjelaskan, ada beberapa pilihan yang bisa diambil Pertamina untuk bisa dijadikan sekutu dalam konsorsium ini. Apalagi, saat ini menurut dia, dua partner konsorsium memiliki masalah masing-masing.

Exxon berpendapat, blok tersebut tak ekonomis, sedangkan PTT Exploration Thailand sampai saat ini masih bermasalah dengan Montara. Hal tersebut yang membuat pemerintah membiarkan Pertamina untuk bisa mencari partner dalam konsorsium. Sebelumnya, Exxon mobile mengirimkan surat ke pihak ESDM atas penilaian tersebut. Menanggapi hal tersebut, Direktur Jenderal Minyak dan Gas Kementerian ESDM IGN Wiratmaja Puja mengatakan, akan mengkaji terlebih dahulu pendapat Exxon tersebut.

"Isi surat itu Exxon menyatakan bahwa Blok East Natuna tidak ekonomis. Tapi itu merupakan kajian Exxon yang dulu. Exxon punya Wilayah Kerja (WK). Di suratnya, Exxon sangat jelas mengatakan mereka memiliki teknologi dan kemampuan teknis, jika diperlukan siap membantu Indonesia. Itu isi suratnya," ujar Wiratmaja saat ditemui di Kantor Kementerian ESDM, Selasa (18/7).

Wiratmaja mengatakan pada pekan depan pihak pemerintah akan bertemu dengan Exxon untuk membahas terkait Blok East Natuna tersebut. Tapi, sebelum bertemu pihak Kementerian ESDM akan melakukan kajian internal dengan memanggil Pertamina untuk mempersentasikan hasil kajian TMR mereka.

Sebelumnya, Menteri ESDM Ignasius Jonan mengatakan, pihak Exxon mengirimkan surat kepada pemerintah terkait Blok East Natuna. Surat tersebut diterjemahkan Jonan bahwa Exxon mundur dari konsorsium pengoperasian blok east natuna karena dinilai tidak ekonomis.

Republika, Page-13, Wednesday, July 19, 2017

East Natuna gas block loses ExxonMobil

The government’s ambition to conclude a technology and market review for the gas-rich East Natuna block may have hit a snag with a member of the current consortium deciding to step out of the negotiations. 

The consortium is led by state owned oil and gas giant Pertamina, with Thailand’s oil and gas exploration and production firm PTTEP and the local unit of United States oil and gas firm Exxork Mobil as the members.

However, the latter has sent a letter to the Energy and Mineral Resources Ministry confirming its decision to bow out of the on going negotiations. The ministry’s oil and gas director general IGN Wiratmaja Puja confirmed that ExxonMobil Indonesia had stated that based on its previous studies, it was economically unfeasible to develop the East Natuna block under the current terms and conditions.

However, ExxonMobil had also stated it was ready to assist the Indonesian government as the firm had the technology and technical skills needed, Wiratmaja said.

“ExxonMobil claims that the block has already exceeded its expiration date and also that it is economically unfeasible under the current terms,” he told reporters on Tuesday

ExxonMobil’s previous studies concluded that with the block’s characteristics, the contractors would have to sell the block’s gas at between US$10 and $15 per million British thermal unit (mmbtu), whereas the government is currently trying to cut gas prices down to $ 6 per million British thermal unit (mmbtu).

ExxonMobil Indonesia’s vice president for public and government affairs, Erwin Maryoto, confirmed that it wished to leave the consortium, but it expressed its commitment to continue seeking and evaluating new opportunities in Indonesia.

“Having completed the technology and market review and evaluated the results, ExxonMobil no longer wishes to continue further discussions or activities involving the East Natuna area,” he said in a statement obtained by The Jakarta Post.

ExxonMobil’s exit followed in the footsteps of two other former consortium members Malaysia’s Petronas and France’s Total. First discovered in the 1970s, the East Natuna block - formerly known as D-Alpha - is located in Riau Islands. With total proven reserves of 46 trillion cubic feet (tcf) of gas, it is considered to have one of Asia’s largest reserves. 

However, the field has a high carbon dioxide (CO2) level of 72 percent, the highest of all exploitation fields globally, which necessitates advanced technologf to maximize extraction. The process is estimated to require between $20 billion and $40 billion.

Previously, a government-commissioned study showed that East Natuna would only be economically feasible if future contractors obtained 100 percent of the profits, leaving the government only to reap revenues from taxes.

However, the calculation was based on the assumption that the block would operate under the government’s reimbursement scheme, known as cost recovery. The block is characterized as a marginal field for several reasons, such as a drop in global oil prices, a lack of proper technologf in the area, its remote location and a lack of supporting research. However, Pertamina does not seem rufiied by ExxonMobil’s exit.

The firm’s upstream director Syamsu Alam acknowledged that it would be impossible for Pertamina to develop the gas block on its own because of its marginal properties, but added that “there are already several IOC [international oil companies] that have expressed interest in developing that block.”

Jakarta Post, Page-13, Wednesday, July 19, 2017

PGN Achieves International Awards on 2016 Annual Report

PT Perusahaan Gas Negara Tbk (PGN) has won an international award for its 2016 annual report. PGN ranked first in the 2016 Vision Award category in the Annual Report Competition organized by the League of American Communication Professional (LACP). 

    In the 2016 annual report, the largest gas company in Indonesia has a theme "When a Pipeline Is Not Just a Pipeline?". The total score given on the annual report reached 99 out of the total score of 100. The Vision Award consists of two categories: gas utilities and energy categories.

PGN ranked first in terms of annual reports beating big companies. In 2015 before, the first rank was occupied by Daimler company followed by General Motors where PGN only occupies position 14.

     The award was awarded on the basis of an assessment by a communications science expert who worked with LACP PGN to achieve the highest score in various criteria such as first impression (30 out of 30); Report cover (10 out of 10); Letter to stakeholders (10 out of 10); Report narrative (10 out of 10); Report financials (10 out of 10); Creativity (10 out of 10); Message clarity (9 of 10); Information accessibility (10 of 10) with Total score of 99 out of 100.

PGN has previously won this awards in 2012. After successfully shifting other government-owned companies such as Garuda Indonesia who ever won it in 2010/2011. Corporate Secretary of PT Perusahaan Gas Negara Tbk (PGN), Rachmat Hutama, welcomed the results achieved by the company. According to him, the award is a very proud achievement for state-owned companies and bring the good name of Indonesia.

The award shows the positive results of the communication program and Good Corporate Governance that always done company.

"This award is a form of recognition of PGN's Good Corporate Governance (GCG) implementation commitment that is consistently implemented with accountability and transparency," said Rachmat, in Jakarta, Tuesday (18/7).

"We will not be complacent, but will continue to be consistent to provide transparent financial statements in accordance with international standards," said Rachmat.

Other international companies participating in the competition include Exxon Mobile, Chevron, Coca-Cola, Disney, Ford Motors and more.

The Vision Award is part of the 2016 Vision Awards Annual Report Competition where more than 5000 annual reports have been submitted by more than 800 institutions / companies from 24 countries, including 500 global corporations ranked by Fortune Magazine (Fortune 500 Global).

The League of Professional Communications America LLC aka LACP itself was founded in 2001 to create a forum in the public relations industry that facilitates discussion of best practices in its class.

IN INDONESIA

PGN Raih International Awards Atas Laporan Tahunan 2016

PT Perusahaan Gas Negara Tbk (PGN) berhasil meraih penghargaan tingkat internasional atas laporan tahunan 2016. PGN meraih peringkat pertama dalam kategori 2016 Vision Award dalam Annual Report Competition yang diselenggarakan oleh League of American Communication Professional (LACP). 

     Dalam laporan tahunan 2016, perusahaan gas terbesar di Indonesia ini mengangkat tema “When a Pipeline Is Not Just a Pipeline?”. Total nilai yang diberikan atas laporan tahunan tersebut mencapai 99 dari total skor 100. Penghargaan Vision Award tersebut terdiri dari 2 kategori yakni utilitas gas dan kategori energi.

PGN masuk peringkat pertama dalam hal laporan tahunan mengalahkan perusahaan-perusahaan besar. Tahun 2015 sebelumnya, peringkat pertama diduduki oleh perusahaan Daimler disusul oleh General Motors di mana PGN hanya menempati posisi 14.

    Penghargaan itu diberikan berdasar penilaian oleh pakar ilmu komunikasi yang bekerja sama dengan LACP PGN pun meraih nilai tertinggi dalam berbagai kriteria seperti : first impression (30 dari 30); report cover (10 dari 10); letter to stakeholders (10 dari 10); report narrative (10 dari 10); report financials (10 dari 10); creativity (10 dari 10); message clarity (9 dari 10); information accessibility (10 dari 10) dengan total perolehan nilai 99 dari 100.

PGN sebelumnya telah memenangi awards ini pada tahun 2012 lalu. Setelah berhasil menggeser perusahaan milik pemerintah lainnya seperti Garuda Indonesia yang pernah memenanginya pada tahun 2010/2011. Sekretaris Perusahaan PT Perusahaan Gas Negara Tbk (PGN) Rachmat Hutama, menyambut baik hasil yang telah diraih perusahaan. 

    Menurutnya, penghargaan tersebut merupakan suatu prestasi yang sangat membanggakan bagi perusahaan BUMN dan membawa nama baik Indonesia. 

Penghargaan tersebut menunjukan hasil yang positif dari program komunikasi serta Good Corporate Governance yang selalu dilakukan perusahaan.

“Awards ini merupakan bentuk pengakuan atas komitmen pelaksanaan Good Corporate Governence (GCG) PGN yang dilaksanakan secara konsisten dengan akuntabel dan transparan,” ujar Rachmat, di Jakarta, Selasa (18/7).

“Kami tidak akan berpuas diri, namun akan terus konsisten untuk tetap memberikan transparasi laporan keuangan sesuai dengan standar internasional,” kata Rachmat.

Perusahaan berskala internasional lainnya yang ikut dalam kompetisi tersebut seperti Exxon Mobile, Chevron, Coca-Cola, Disney, Ford Motors dan masih banyak lagi.

Vision Award merupakan bagian dari 2016 Vision Awards Annual report Competition dimana lebih dari 5000 laporan tahunan telah diajukan oleh lebih 800 institusi/perusahaan dari 24 negara, termasuk 500 perusahaan besar dunia yang diranking oleh Majalah Fortune (Fortune 500 Global).

Liga Profesional Komunikasi Amerika LLC alias LACP sendiri didirikan pada tahun 2001 untuk menciptakan forum dalam industri hubungan masyarakat yang memfasilitasi diskusi tentang praktik terbaik di kelasnya.

Investor Daily, Page-9, Wednesday, July 19, 2017