ExxonMobil Prepares CO2 Separation Technology for Natuna

Although no longer involved in the development of the East Natuna Block, ExxonMobil is ready to provide technology for the separation of carbon dioxide (CO2). ExxonMobil is one of the few oil and gas companies that owns this technology.

Vice President of Public and Government Affairs of ExxonMobil Indonesia, Erwin Maryoto, said that after the evaluation, his side decided not to participate in the discussions or further activities in the East Natuna Block. But it is ready to provide the technology it has to handle the content of 72% of CO2 in the block.

"We are delivering to Pertamina or to the Government, if indeed Pertamina or anyone else will need the technology we have for the separation of CO2, we are ready to cooperate," he said in Jakarta, Friday (21/7).

He said ExxonMobil's technology was in the research center and had been tried. However, he was reluctant to determine whether the technology can be used in the East Natuna Block or not.

"We do not know whether we can or not but we have a clear technology," he said.

the East Natuna Block

According to Vice Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar, CO2 management technology is owned by only a few companies, one of them ExxonMobil. Although there are other technologies, this technology is still in the study, mainly about whether the use of this technology will be cheaper. But ExxonMobil not only offers the technology it has.

"They promise their data since the 1970s will be returned to the government. It's a big jump and a momentum

For us to build East Natuna Block, "he said.

After ExxonMobil stated that the East Natuna Block development is not economical according to the calculation, the block is 100% returned to Indonesia. This has been agreed by ExxonMobil when Senior Vice President ExxonMobil Mark W Albers came to Indonesia.

"They stated, if Indonesia wants to develop (develop), please. We have no dispute or obstacle to this [East Natuna Block] developed, "explained Arcandra.

So there will be no dispute over who owns East Natuna Block in the future. This is important because although ExxonMobil says the development of this block is not economical, Indonesia will continue to manage the block in the North Natuna Sea.

However, recognized Arcandra, East Natuna Block development is quite challenging. From the potential source of gas to reach 226 trillion cubic feet, only 46 trillion cubic feet can be produced. In addition, there is no cheap technology that can handle the content of CO2 which reached 72%.

Pertamina called it would require partners in working on this block. Although not economical for ExxonMobil, does not mean other oil and gas companies share the same view of East Natuna Block this. However, the government fully hand over the matter of partner selection to Pertamina. "[The consortium] is up to Pertamina," he said.

Seismic the East Natuna Block

IN INDONESIA

ExxonMobil Siapkan Teknologi Pemisahan CO2 untuk Natuna

Meski tidak lagi terlibat dalam pengembangan Blok East Natuna, ExxonMobil siap menyediakan teknologi untuk pemisahan karbondioksida (CO2). ExxonMobil merupakan satu dari sedikit perusahaan minyak dan gas yang memiliki teknologi ini.

Vice President Public and Government Affairs ExxonMobil Indonesia Erwin Maryoto mengatakan, setelah dilakukan evaluasi, pihaknya memang memutuskan untuk tidak berpartisipasi dalam pembahasan maupun kegiatan lanjutan di Blok East Natuna. Tetapi pihaknya siap menyediakan teknologi yang dimilikinya untuk menangani kandungan CO2 yang mencapai 72% di blok tersebut.

“Kami menyampaikan ke Pertamina atau ke Pemerintah, kalau memang Pertamina atau siapapun nanti memerlukan teknologi yang kami miliki untuk pemisahan CO2, kami siap kerja sama,” kata dia di Jakarta, Jumat (21/7). 

Dikatakannya, teknologi milik ExxonMobil itu ada di pusat penelitian dan sudah pernah dicoba. Meski demikian, dirinya enggan memastikan apakah teknologi tersebut dapat digunakan di Blok East Natuna atau tidak. 

“Kami tidak tahu bisa atau tidak tetapi yang jelas kami punya teknologinya,” ujarnya.

Menurut Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar, teknologi pengelolaan CO2 memang hanya dimiliki oleh beberapa perusahaan saja, salah satunya ExxonMobil. Meskipun ada teknologi lainnya, teknologi ini masih dalam kajian, utamanya soal apakah penggunaan teknologi ini akan lebih murah biayanya. Namun ExxonMobil tidak hanya menawarkan teknologi yang dimilikinya. 

“Mereka janji data-data mereka sejak 1970-an akan dikembalikan ke pemerintah. lni sebuah lompatan besar dan menjadi momentum bagi kita untuk membangun Blok East Natuna ,” tuturnya.

Pasca ExxonMobil menyatakan bahwa pengembangan Blok East Natuna tidak ekonomis menurut hitungannya, maka blok ini 100% kembali ke Indonesia. Hal ini telah disepakati oleh pihak ExxonMobil ketika Senior Vice President ExxonMobil Mark W Albers datang ke Indonesia.

“Mereka menyatakan, kalau Indonesia ingin develop (kembangkan), silahkan. Kita tidak ada dispute atau ganjalan kalo ini [Blok East Natuna] dikembangkan,” jelas Arcandra.

Sehingga tidak akan ada perselisihan soal siapa pemilik Blok East Natuna ke depannya. Hal ini penting lantaran meski ExxonMobil menyatakan pengembangan blok ini tidak ekonomis, Indonesia tetap akan melanjutkan pengelolaan blok di Laut Natuna Utara tersebut.

Meski demikian, diakui Arcandra, pengembangan Blok East Natuna memang cukup menantang. Dari potensi sumber gas mencapai 226 triliun kaki kubik, hanya 46 triliun kaki kubik saja yang dapat diproduksikan. Selain itu, belum ada teknologi murah yang mampu menangani kandungan CO2 yang mencapai 72%.

Pertamina disebutnya pasti membutuhkan mitra dalam menggarap blok ini. Meski tidak ekonomis buat ExxonMobil, bukan berarti perusahaan migas lain berpandangan sama soal Blok East Natuna ini. Namun, pemerintah menyerahkan sepenuhnya soal pemilihan mitra kepada Pertamina. “[Konsorsium] terserah Pertamina,” kata dia.

Investor Daily, Page-9, Saturday, July 22, 2017

Kuala Langsa Gas Potential - Mature 3 TCF

PT Medco Energi predicts Kuala Langsa and Matang gas field potential in Block A, East Aceh district, Aceh province, ranging from 2-3 trillion cubic feet (TCF).

"Apart from the three fields we are working on, there is great potential in the two fields to meet the needs of gas for power generation for the next 15 years," said Medmi Energi President Director Hilmi Panigoro in Banda Aceh, Friday (21/7).

The statement was delivered on the sidelines of Public Lecture and Potential Seminar on Gas Block A for Power Plant in Aceh and Northern Sumatra which was filled directly by Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan at AAC Dayan Dawood, Darussalam, Banda Aceh.

Hilmi explained that the development of the two fields will be able to produce gas to meet the electricity needs of 1,000-1,200 MW with a term of up to 15 years.

"The development of this field will also provide substantial revenue potential for the Central and Regional Government," he said.

He said the development would also bring other benefits to the people of Aceh such as creating jobs, employment of local workers and attracting investors and accelerating development in the province.

IN INDONESIA

Potensi Cas Kuala Langsa - Matang 3 TCF

PT Medco Energi memprediksi potensi gas lapangan Kuala Langsa dan Matang di Blok A, Kabupaten Aceh Timur, Provinsi Aceh, berkisar pada 2-3 trillion cubic feet (TCF).

“Selain dari tiga lapangan yang sedang kami garap ada potensi besar di dua lapangan itu untuk memenuhi kebutuhan gas pembangkit listrik lebih kurang 15 tahun mendatang,” kata Presiden Direktur PT Medco Energi, Hilmi Panigoro di Banda Aceh, Jumat (21/7).

Pernyataan itu disampaikannya di sela-sela Kuliah Umum dan Seminar Potensi Gas Blok A Untuk Pembangkit Listrik di Aceh dan Sumatera Bagian Utara yang diisi langsung Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan di AAC Dayan Dawood, Darussalam, Banda Aceh. 

Hilmi jelaskan pengembangan kedua lapangan tersebut akan mampu menghasilkan gas untuk memenuhi kebutuhan listrik sekitar 1.000-1.200 MW dengan jangka waktu sampai 15 tahun.

“Pengembangan lapangan ini juga akan memberikan potensi pendapatan yang cukup besar bagi Pemerintah Pusat dan daerah,” katanya.

Ia mengatakan pengembangan tersebut juga akan membawa manfaat lainnya bagi masyarakat Aceh seperti terciptanya lapangan kerja, penyerapan tenaga kerja lokal dan menarik investor serta mempercepat pembangunan di provinsi setempat.

Investor Daily, Page-9, Saturday, July 22, 2017

Pertamina Large Revitalization of Arun LNG Plant

PT Pertamina revitalizes massive liquefied natural gas (Liquifed Natural Gas / LNG) facility in Arun, Aceh. There are three projects at the Arun refinery running simultaneously, namely the revitalization of the LNG Hub terminal, the construction of the condensate terminal, and the liquified petroleum gas tank (LPG). PT Perta Arun Gas (PAG), which is the grandson of Pertamina, will manage the facility.

PAG President Director Teuku Khaidir said the three projects are the next milestones of LNG hubs, condensate tanks, and LPG tanks. The reason is currently two Arun LNG plant has become a regasification facility. He said the three projects run simultaneously and are targeted next year.

"Onstream is expected in 2018," Teuku said during a media visit, in Medan, Friday (21/7).

Teuku said, LPG tank project is worked by PT Pertamina Marketing and Trading. As many as two LPG tanks are built in stages. The total capacity of the tank reaches 60,000 cubic meters per day. He calls this LPG gas will supply the needs of the people of Aceh and parts of North Sumatra.

"In the near future the needs of LPG can be met from Arun," he said.

He said Pertamina Marketing and Trading is also working on a condensate storage project built by Pertamina Marketing and Trading. Three tanks with a capacity of 1.5 million barrels to store condensate stock. This facility will be able to support the sale and purchase of Pertamina's oil and gas products.

"There will be cooperation with Thailand and Malaysia," he said.

Meanwhile, Pertam Arun Gas Production Plan and Process Engineering Manager Sukarni Manan added that revitalization aims to increase Arun's utility for the community. He said the five existing refineries, PAG will use two other tanks for LNG storage. The tank will be leased, as is the facility owned by Singapore LNG.

"Until now, two companies are interested in using Pertamina tank, namely Japan LNG and Itochu. Currently the tank is still in the stage of repairing parts. The funding requirement reaches US $ 30 million, "he added.

The oldest LNG Plant

   Arun is the oldest LNG plant operating from 1978-2014. During those 36 years, 4,269 LNG cargoes were shipped to countries such as Korea and Japan. The processing complex has six gas refinery units, two special ports, and nine gas storage tanks.

   The number of liquefied natural gas (LNG) cargoes occupied by the Arun Receiver and Regasification Terminal in Aceh continues to increase from year to year. In this year there were 17 cargo which were classified. While last year reached 14 cargoes and in 2015 as many as 11 LNG cargoes.

   Production Plan & Process Engineering Manager of PT Perta Arun Gas Surkani Manan said that the terminal will start operation in 2015 which was inaugurated by President Joko Widodo.

"Initially we regasification 11 cargo sourced from Tangguh 10 cargo and Donggi 1 cargo. It is now 17 cargoes, "Surkarni said.

   Surkani said the majority of LNG cargoes are absorbed by PT PLN power plant. He said the need for an industry is only one cargo from year to year. Average gas distribution from Arun regasification facility in 2015 A total of 87.9 mmscfd with 86.05 mmscfd for PLN and 1.85 mmscfd for Industry in Medan.

Then in 2016 for the period January-October reached 88.81 mmscfd with details of 85.86 mmscfd for PLN and 2.95 mmscfd absorbed by the industry.

"Gas for PLN is for PLTMG Arun and Belawan. We and PLN have a mutual commitment. PLN has a big interest in regasification, "he said.

   He said the regasification terminal was previously an Arun LNG plant operating since 1978 and ending on October 15, 2014. It recorded that for 35 years the total shipment reached 4,269 cargoes to a number of countries such as Japan, Korea and Taiwan. 

    Pertamina has conducted an in-depth study since 2011 before the refinery ceased operations. The option of transferring functions into regasification is chosen to take into consideration the viability of the industry and the power plant which has soaked Arun gas.

"In 2011 Pertamina has conducted a study to be taken wherever this great asset there are 6 train, LNG tank, condensate, so some business activities developed by Pertamina, all directed customer expectations, the priority was decided by regasification," he said.

   According to him Lhokseumawe could become a dead city say LNG assets are not used. He mentioned that as long as Arun refinery operates to absorb up to 5,000 workers including to the derivative industry.

"With employment can sustain economic and political stability, because if many are unemployed will increase criminality," he concluded.

IN INDONESIA

Pertamina Revitalisasi Besar-besaran Kilang LNG Arun

PT Pertamina merevitalisasi secara besar-besaran fasilitas kilang gas alam cair (Liquifed Natural Gas/LNG) Arun, Aceh. Ada tiga proyek di kilang Arun yang berjalan bersamaan, yaitu revitalisasi terminal LNG Hub, pembangunan terminal kondensat, dan tangki liquified petroleum gas (LPG). PT Perta Arun Gas (PAG) yang merupakan cucu perusahaan Pertamina bakal mengelola fasilitas tersebut.

Direktur Utama PAG Teuku Khaidir mengatakan ketiga proyek tersebut merupakan milestone berikutnya LNG hub, tangki kondensat, dan tangki LPG. Pasalnya saat ini dua kilang LNG Arun sudah menjadi fasilitas regasifikasi. Dia bilang ketiga proyek itu berjalan bersamaan dan ditargetkan pada tahun depan. 

“Onstream diperkirakan tahun 2018,” kata Teuku dalam kunjungan media, di Medan, Jumat (21/7).

Teuku menuturkan, proyek tangki LPG digarap oleh PT Pertamina Marketing and Trading. Sebanyak dua tangki LPG yang dibangun secara bertahap. Adapun total kapasitas tangki tersebut mencapai 60.000 meter kubik per hari. Dia menyebut gas LPG ini akan menyuplai kebutuhan warga Aceh dan sebagian Sumatera Utara.

“Dalam waktu dekat kebutuhan LPG bisa dipenuhi dari Arun," ujarnya.

Dikatakannya Pertamina Marketing and Trading juga mengerjakan proyek tempat penyimpanan kondensat yang dibangun oleh Pertamina Marketing and Trading. Sebanyak tiga tangki berkapasitas 1,5 juta barel untuk menyimpan stok kondensat. Fasilitas ini nantinya mampu menunjang jual beli produk migas Pertamina. 

"Akan ada kerja sama dengan Thailand dan Malaysia. Itu bertahap,” tuturnya.

Sementara itu Manager Production Plan and Process Engineering Perta Arun Gas Sukarni Manan menambahkan revitalisasi bertujuan untuk meningkatkan utilitas Arun bagi masyarakat. Dia mengatakan, lima kilang yang ada saat ini, PAG akan menggunakan dua tangki lainnya sebagai tempat penyimpanan LNG. Tangki akan disewakan, seperti fasilitas yang dimiliki Singapore LNG.

“Hingga saat ini dua perusahaan berminat menggunakan tangki Pertamina, yaitu Japan LNG dan Itochu. Saat ini tangki masih dalam tahap perbaikan suku cadang. Kebutuhan dananya mencapai USS 30 juta,” tambahnya.

Kilang LNG Tertua

Arun merupakan kilang LNG tertua yang beroperasi 1978-2014. Selama 36 tahun itu Sebanyak 4.269 kargo LNG dikirim ke beberapa negara seperti Korea dan Jepang. Kompleks pengolahan ini memiliki enam unit kilang gas, dua pelabuhan khusus, dan sembilan tangki penyimpanan gas.

Jumlah kargo gas alam cair (LNG) yang digarap Terminal Penerima dan Regasifikasi Arun, Aceh terus meningkat dari tahun ke tahun. Pada tahun ini tercatat sebanyak 17 kargo yang diregasifikasi. Sedangkan tahun lalu mencapai 14 kargo dan pada 2015 sebanyak 11 kargo LNG.

Manager Production Plan & Process Engineering PT Perta Arun Gas Surkani Manan mengatakan Terminal ini mulai beroperasi pada 2015 yang diresmikan oleh Presiden Joko Widodo.

“Awalnya kami regasifikasi 11 kargo bersumber dari Tangguh 10 kargo dan Donggi 1 kargo. Sekarang sudah 17 kargo,” kata Surkarni.

Surkani menuturkan mayoritas kargo LNG tersebut diserap oleh pembangkit listrik PT PLN. Dia mengatakan kebutuhan untuk industri hanya satu kargo dari tahun ke tahun. Rata-rata penyaluran gas dari fasilitas regasifikasi Arun di 2015 Sebanyak 87,9 mmscfd dengan rincian 86,05 mmscfd untuk PLN dan 1,85 mmscfd untuk Industri di Medan. 

Kemudian di 2016 untuk periode Januari-Oktober mencapai 88,81 mmscfd dengan rincian 85,86 mmscfd untuk PLN dan 2,95 mmscfd diserap industri.

“Gas untuk PLN itu untuk PLTMG Arun dan Belawan. Kami dan PLN punya komitmen bersama. PLN punya kepentingan besar dengan regasifikasi,” ujarnya.

Dikatakannya terminal regasifikasi ini sebelumnya merupakan kilang LNG Arun yang beroperasi sejak 1978 dan berakhir pada 15 Oktober 2014. Tercatat selama 35 tahun tersebut total pengapalan mencapai 4.269 kargo ke sejumlah negara seperti Jepang, Korea dan Taiwan. 

    Pertamina melakukan kajian mendalam sejak 2011 sebelum kilang tersebut berhenti operasi. Opsi pengalihan fungsi menjadi regasifikasi dipilih dengan mempertimbangkan kelangsungan hidup industri dan pembangkit listrik yang selama ini menyerap gas Arun.

"Pada 2011 Pertamina sudah lakukan kajian mau dibawa kemana aset besar ini ada 6 train, tangki LNG, kondensat. Jadi beberapa inisasi bisnis yang didevelop Pertamina, semua diarahkan ekspektasi pelanggan, prioritas dulu yang diputuskan regasifikasi,” ujarnya.

Menurutnya Lhokseumawe bisa menjadi kota mati bilang aset-aset LNG tidak dimanfaatkan. Dia menyebut selama kilang Arun beroperasi menyerap hingga 5.000 pekerja termasuk ke industri turunannya. 

“Dengan lapangan kerja bisa menopang stabilitas ekonomi dan politik, karena kalau banyak yang menganggur akan meningkatkan kriminalitas,” tutupnya.

Investor Daily, Page-9, Saturday, July 22, 2017

Perta Arun Targets 2018 Revitalization of 2018

PT Perta Arun Gas (PAG), seeks to complete three projects to utilize the former Arun refinery. The three projects are the revitalization of the Liquifed Natural Gas (LNG) terminal, Liquefied Natural Gas (LNG) Hub, the construction of condensate terminals, and the construction of LPG tanks.

The Managing Director of PAG, Teuku Khaidir, targets three projects to start and finish next year. It's just that he was reluctant to give details of how much investment is needed for the three projects.

"We expect the onstream in 2018. For cooperation has been a deal," he said, in Medan, Friday (21/7).

Just for the picture, this grandson of PT Pertamina is holding three projects in the effort to revitalize the assets of the Arun gas processing facility. Previously, the facility is in the form of Arun LNG Plant which has been operated for 37 years and was forced to stop operations since 2014 because gas in the field is up. Then in 2015 the Arun LNG Plant is converted into LNG Admission and Regasification Terminal.

Khaidir mentioned that the LNG Hub project is already running. But because there is one of the leaking refinery, consequently will need to be repaired again. The project cooperates with Japanese investors. While on the second project, LPG tank project will be built by PT Pertamina Marketing and Trading. The tank has a total capacity of 60,000 cubic meters per day. Later LPG will be used to supply the needs of Aceh residents and parts of North Sumatra.

"This is also next year so that in the near future LPG needs can be met from Arun," he said.

While the condensate storage project was also built by Pertamina Marketing and Trading. The project will use three tanks with a capacity of 1.5 million barrels. Useful facilities to support the sale and purchase of Pertamina's oil and gas products.

"There will be cooperation with Thailand and Malaysia gradually," he said

Manager of Production Plan and Process Engineering of Perta Arun Gas, Sukarni Manan added, Arun currently has five refineries. Perta Arun will use two other tanks for LNG storage. The rest is leased, as did the Singapore LNG.

"There are two companies interested in using Pertamina tank, namely Japan LNG and Itochu," he said.

IN INDONESIA

Perta Arun Targetkan Revitalisasi Kelar 2018

PT Perta Arun Gas (PAG), berupaya menyelesaikan tiga proyek untuk memanfaatkan bekas kilang Arun. Tiga proyek tersebut, adalah revitalisasi terminal gas alam cair atau Liquifed Natural, Gas (LNG) Hub, pembangunan terminal kondensat, dan pembangunan tangki LPG.

Direktur Utama PAG, Teuku Khaidir menargetkan tiga proyek ini sudah bisa dimulai dan selesai pada tahun depan. Hanya saja ia enggan memberikan perincian berapa besar investasi yang dibutuhkan untuk ketiga proyek tersebut.

"Kami perkirakan onstream pada 2018. Untuk kerjasamanya sudah deal," katanya, di Medan, Jumat (21/7).

Sekadar gambaran, cucu usaha PT Pertamina ini menggelar tiga proyek dalam upaya revitalisasi aset fasilitas pengolahan gas Arun. Sebelumnya, fasilitas itu berbentuk Kilang LNG Arun yang sudah dioperasikan selama 37 tahun dan terpaksa berhenti operasi sejak 2014 lalu karena gas di lapangan sudah habis. Lalu pada 2015 Kilang LNG Arun diubah fungsinya menjadi Terminal Penerimaan dan Regasifikasi LNG. 

Khaidir menyebut pada proyek LNG Hub sejatinya sudah berjalan. Tapi karena ada salah satu kilang yang bocor, alhasil akan perlu dilakukan perbaikan lagi. Proyek ini menjalin kerjasama dengan investor Jepang. Sementara pada proyek kedua, proyek tangki LPG akan dibangun oleh PT Pertamina Marketing and Trading. Tangki ini berkapasitas total 60.000 meter kubik per hari. Nantinya LPG bakal dipakai untuk menyuplai kebutuhan warga Aceh dan sebagian Sumatra Utara. 

"Ini juga tahun depan. Sehingga, dalam waktu dekat kebutuhan LPG bisa. dipenuhi dari Arun," katanya.

Sedangkan proyek tempat penyimpanan kondensat juga dibangun oleh Pertamina Marketing and Trading. Proyek ini bakal menggunakan tiga tangki berkapasitas 1,5 juta barel. Fasilitas berguna untuk menunjang jual beli produk migas Pertamina.

"Akan ada kerja sama dengan Thailand dan Malaysia secara bertahap," katanya

Manager Production Plan and Process Engineering Perta Arun Gas, Sukarni Manan menambahkan, saat ini Arun memiliki lima kilang. Perta Arun akan menggunakan dua tangki lainnya untuk tempat penyimpanan LNG. Sisanya disewakan, seperti yang dilakukan Singapore LNG. 

"Ada dua perusahaan berminat menggunakan tangki Pertamina, yaitu Japan LNG dan Itochu," katanya.

Kontan, Page-14, Saturday, July 22, 2017

Hope There's New Partner in East Natuna Block

ExxonMobil chooses selling technology to East Natuna's manager Instead of investing

The Ministry of Energy and Mineral Resources (ESDM) has asked PT Pertamina to seek a new partner to replace EXXonMobil subsidiary Esso Natuna Ltd, who has resigned from the East Natuna Block consortium.

This government request for oil and gas field is immediately in production. The government is aware that Pertamina needs to find a partner because it requires big investment and high risk. Deputy Minister of Energy and Mineral Resources (EMR), Arcandra Tahar said all oil and gas companies in the world would need partners if they want to develop big projects.

"In Oil and gas, the risk is managed in partnership with partners," said PT Pertamina Commissioner, Friday (7/21).

As a note, previously ExxonMobil declared the development of the East Natuna Block for uneconomical reasons. In 2011, several investors agreed to sign the Head of Agreement (HOA) of share division in East Natuna Block. First, Pertamina with a portion of 35%; Second, Esso Natuna Ltd 35%; Third; Petronas 15%, and fourth Total EP 15%.

But in 2012 Petronas retreat replaced PTT Thailand. Next Total EP go back in 2013, last July 2017 Esso Natuna withdraw. While PTT Thailand still survive.

According to Arcandra, in addition to the surviving PTT Thailand, the government is another oil and gas company opportunity to participate in the East Natuna project. Unfortunately, until now Arcandra does not know the new Pertamina partners in the East Natuna Block. He also said that the government handed over the process of searching patner in East Natuna block to Pertamina.

Energy Observer from Gadjah Mada University Fahmi Radhi suggested, Pertamina offers cooperation with PetroChina or with Saudi Aramco. The cooperation includes the use of a gross split sharing scheme in East Natuna.

"Choose the most appropriate to the requirements and have a commitment between the two,"

Unfortunately Upstream Director of Pertamina Syamsu Alam reluctant to comment who the partner who is in search. Adiatma Sardjito Vice President of Corporate Communications PT Pertamina just answered there is no information about new prospective partner in East Natuna Block.

Seismic East Natuna

ExxonMobil Sale

Meanwhile, ExxonMobil, which has given an official letter to resign from the East Natuna Block, stated that it is still an interest to sell tekonologi to block operators. Erwin Maryoto, Vice President of Public and Government Affairs ExxonMobil Indonesia claims, Exxon has a technology capable of separating the CO2 needed in the block.

"If Pertamina needs technology we are ready for cooperation," he said.

Understandably, in East Natuna gas reserves of 46 trilun cubic feet, 75% of the carbon dioxide must be retained. Erwin can not mention the cost of using CO2 separator technology. He just said the cost for the separation of CO2 is quite expensive.

"But the whole thing is big enough," he said. The big cost is what makes EXXonMobil choose to leave

IN INDONESIA

Berharap Ada Mitra Baru di Blok East Natuna  

ExxonMobil pilih jualan teknologi kepada pengelola East Natuna Ketimbang berinvestasi

Kementerian Energi dan Sumber Daya Mineral (ESDM) meminta PT Pertamina segera mencari partner baru untuk menggantikan anak usaha EXXonMobil yakni Esso Natuna Ltd, yang sudah mundur dari konsorsium penggarap Blok East Natuna.

    Permintaan pemerintah ini agar lapangan migas tersebut segera berproduksi. Pemerintah menyadari Pertamina perlu mencari partner lantaran butuh investasi besar dan risiko yang cukup tinggi. Wakil Menteri Energi dan Sumber Daya Mineral (ESDM), Arcandra Tahar mengatakan seluruh perusahaan migas di dunia pasti membutuhkan partner jika ingin mengembangkan proyek besar. 

"Dalam Oil and gas risiko di manage bersama dengan berpartner," ujar Komisaris PT Pertamina itu, Jumat (21/7).

Sebagai Catatan, sebelumnya ExxonMobil menyatakan pengembangan Blok East Natuna dengan alasan tidak ekonomis. Pada 2011 beberapa investor sepakat meneken Head of Agreement (HOA) pembagian saham di Blok East Natuna. Pertama, Pertamina dengan porsi sebesar 35%; Kedua, Esso Natuna Ltd 35%; Ketiga; Petronas 15%, dan keempat Total EP 15%.

Namun pada 2012 Petronas mundur digantikan PTT Thailand. Berikutnya Total EP ikut mundur pada 2013, terakhir Juli 2017 ini Esso Natuna mundur. Sementara PTT Thailand masih bertahan.

Menurut Arcandra, selain PTT Thailand yang masih bertahan, pemerintah kesempatan perusahaan migas lainnya untuk ikut serta dalam proyek East Natuna. Namun sayangnya hingga saat ini Arcandra belum tahu patner Pertamina yang baru di Blok East Natuna. Dia juga bilang pemerintah menyerahkan sepenuhnya proses pencarian patner di blok East Natuna kepada Pertamina.

Pengamat Energi dari Universitas Gadjah Mada Fahmi Radhi menyarankan, Pertamina menawarkan kerjasama dengan PetroChina atau dengan Saudi Aramco. Kerjasama itu termasuk dengan penggunaan skema bagi hasil gross split di East Natuna. 

"Pilih yang paling sesuai dengan persyaratan dan memiliki komitmen di antara keduanya," 

Sayangnya Direktur Hulu Pertamina Syamsu Alam enggan memberikan komentar siapa patner yang sedang di cari. Adiatma Sardjito Vice President Corporate Communication PT Pertamina hanya menjawab belum ada informasi tentang calon partner baru di Blok East Natuna.

Jualan ExxonMobil  

Sementara, ExxonMobil yang sudah memberikan surat resmi mundur dari Blok East Natuna menyatakan masih minat untuk berjualan tekonologi kepada operator blok. Erwin Maryoto, Vice President Public and Government Affair ExxonMobil Indonesia mengklaim, Exxon punya teknologi yang mampu memisahkan CO2 yang dibutuhkan di blok tersebut. 

"Kalau Pertamina butuh teknologi itu kami siap kerjasama," kata dia.

Maklum di dalam cadangan gas East Natuna sebesar 46 Trilun cubic feet terdapat 75% karbondioksida yang harus dipisakan. Erwin belum bisa menyebut biaya penggunaan teknologi pemisah CO2 tersebut. Dia hanya bilang biaya untuk pemisahan CO2 Cukup mahal. 

"Tapi keseluruhannya cukup besar," katanya. Biaya yang besar inilah yang membuat EXXonMobil pilih kabur. 

Kontan, Page-14, Saturday, July 22, 2017

The New Rule of the ESDM Minister Causes Controversy

The new Minister of Energy and Mineral Resources (ESDM) NO 42/2017 regulation on Business Control in Business Activities in ESDM Sector sparked controversy. This rule can complicate the movement of energy business.

In such a regulation, energy companies are required to obtain permission if they reimburse directors and commissioners to share transfer.

"It's better just to report it, no need to get approval," said Deputy Executive Director of Indonesian Coal Producers Association (APBI) Hendra Sinadia, Friday (21/7).

The sale of shares and the replacement of the board is a corporate action. If this has to wait for government approval it is feared this could hamper corporate action. Entrepreneurs are also doubtful with the Ministry of Energy and Mineral Resources's ability to handle this. Because the current number of companies with Mining Business License (IUP) reached 10,818. The number of companies holding Contract of Work 34

Meanwhile, the company holding the Coal Mining Concession Working Agreement (PKP2B) is 73, then there is a Contractor Cooperation Contract (KKKS) in the oil and gas sector 68, as well as private power plants amounting to 40. Vice Chairman of the Indonesian Processing and Refining Association (APSI), Jonathan Handojo also questioned This policy motif.

"This Minister wants to be a sole ruler?" He said half-questioned.

Jonathan suspects the background of the emergence of this rule the government has often been deceived fake companies that want to enjoy natural resources. Daily Chairman of the Association of Indonesian Private Electric Manufacturers (ASI) Arthur Simatupang said, this rule can be troublesome businessmen.

"Making uncertainty," he said.

Energy Observer Fahmi Radhi considers that ESDM Minister should not take care of corporate actions.

"This could trigger moral hazard in any decision-making," he said

However, APBI and APLSI have not planned to sue this rule. They are now awaiting the hearing and socialization of this rule.

IN INDONESIA

Aturan Baru Menteri ESDM Menyebabkan Kontroversi

Aturan baru Menteri Energi dan Sumber Daya Mineral (ESDM) No 42/2017 tentang Pengawasan Pengusahaan pada Kegiatan Usaha di Sektor ESDM memantik kontroversi. Aturan ini bisa menyulitkan gerak pelaku bisnis energi.

Dalam aturan itu semisal, perusahaan bidang energi wajib mendapatkan izin jika melakukan penggantian direksi dan komisaris hingga pengalihan saham. 

"Sebaiknya hanya melaporkan saja. Tidak perlu mendapat persetujuan," kata Deputi Direktur Eksekutif Asosiasi Produsen Batubara Indonesia (APBI) Hendra Sinadia, Jumat (21/7).

Penjualan saham dan penggantian pengurus merupakan aksi korporasi. Jika ini harus menunggu persetujuan pemerintah dikhawatirkan ini bisa menghambat aksi korporasi. Pengusaha juga sangsi dengan kemampuan Kementerian ESDM mengurusi hal ini. Pasalnya, saat ini jumlah perusahaan dengan Izin Usaha Pertambangan (IUP) mencapai 10.818. Adapun jumlah perusahaan pemegang Kontrak Karya 34

Adapun perusahaan pemegang Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) ada 73, lalu ada Kontraktor Kontrak Kerja Sama (KKKS) bidang migas 68, serta pembangkit listrik swasta jumlahnya ada 40. Wakil Ketua Asosiasi Pengolahan dan Pemurnian Indonesia (APSI), Jonathan Handojo juga mempertanyakan motif kebijakan ini. 

"Ini Menteri mau menjadi penguasa tunggal?" kata dia setengah bertanya. 

Jonathan menduga latar belakang munculnya aturan ini pemerintah selama ini sering tertipu perusahaan palsu yang hendak menikmati sumber daya alam. Ketua Harian Asosiasi Produsen Listrik Swasta Indonesia (ASI) Arthur Simatupang bilang, aturan ini bisa menyusahkan pebisnis. 

"Membuat ketidakpastian," ujar dia.

Pengamat Energi Fahmi Radhi menilai, tidak semestinya Menteri ESDM mengurusi corporate actions. 

"Ini bisa memicu moral hazard dalam setiap pengambilan keputusan," kata dia

Meskipun begitu, APBI maupun APLSI belum berencana untuk menggugat aturan ini. Mereka kini sedang menunggu audiensi dan sosialisasi atas aturan ini.

Kontan, Page-14, Saturday, July 22, 2017

ExxonMobil exit warning of waning oil, gas industry

The sudden exit of United States-based oil and gas giant ExxonMobil from the East Natuna energy block has become a major blow to Indonesia’s already struggling upstream oil and gas industry.

Investors’ appetite in the sector has long been waning even before ExxonMobil’s withdrawal. announcement on Tuesday, due to concerns on regulatory uncertainties and lengthy red tape, in addition to the persistently low global oil prices.

While the government has visibly made some effort to freshen up the industry with new policies, BMI Research oil and gas analyst Peter Lee said that Indonesia’s attractiveness as an investment destination was still below par in comparison to other markets in Asia, Africa, Europe and the Gulf of Mexico.

“Investors have yet to be impressed by the government’s gradual attempts at upstream reform, which includes the decision to eliminate exploration-related taxes in September 2016 and the introduction of a new PSC [production sharing contract] in January 2017 that significantly increases the companies’ take of profits from oil and gas sales, although it does not offer any cost-recovery mechanism,”

he said.

Block East Natuna

ExxonMobil Indonesia announced that it no longer wished to continue any discussions or activity in the East Natuna block. for which it had joined a feasibility study consortium otherwise consisting ofstate-owned energy firm Pertamina and Thailand’s PTT EP.

Its exit follows in the footsteps of two other former consortium members Malaysia’s Petronas and France’s Total. The Energy and Mineral Resources Ministry has confirmed ExxonMobil’s wish to halt its participation in the negotiations, saying thatthe latter had deemed the project economically unfeasible under the current terms offered.

The East Natuna block, located in Riau Islands, has total proven reserves of 46 trillion cubic feet (tcf) of gas and is deemed to be one of Asia’s largest reserves. However, the gas field has a high carbon dioxide (CO2) level of 72 percent, which requires an estimated US$20 billion to $40 billion for development and the advanced technology needed to maximize extraction.

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

Wood Mackenzie research analyst forthe Asian upstream sector, Johan Utama, said the latest company’s move to leave the East Natuna block has made the list of international companies exiting or reducing their presence in Indonesia even longer.

East Natuna Seismic Survey

“Marathon, Anadarko, Murphy, Hess and Lundin have disposed of their Indonesian portfolios, as they focus their capital on more attractive projects in their portfolios,” he told the Post.

Utama also cited the decision of ConocoPhillips and Inpex to sell their stakes in the South Natuna Sea Block B and Chevron’s move not to extend the operation of its shallow-water blocks in East Kalimantan as signs of a poor investment atmosphere in the Southeast Asian country.

While ExxonMobil’s decision to pull out may not directly affect this year’s total upstream investment, the governments failure to attract sufficient foreign investment is expected to burden Pertamina. The government has assigned eight expiring fields to the state-owned firm to be operated under the recently introduced -gross-split scheme.

“While its state-owned nature will see investment into domestic fields sustained, pumping capital into domestic mature assets, all the while advancing its overseas and downstream expansion agenda, will prove increasingly taxing,” BMI Research’s Lee said.

The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) recently announced that investment in the sector in the first half of the year only reached $3.99 billion, 28.84 percent of the full-year target of $13.8 billion. Most analysts agree that a shortfall in investment will likely happen by the end of the year.

Jakarta Post, Page-13, Friday, July 21, 2017

Two Gas Pipeline Projects Soon Auctioned

The Downstream Oil and Gas Regulatory Agency (BPH Migas) immediately auctioned two gas pipeline projects in Sumatra and Java. This is done based on the proposal of two companies to BPH Migas namely Regional Mining and Energy Company (PDPDE) South Sumatra and PT Berkah Kawasan Manyar Sejahtera.

According to the Head of BPH Migas Fanshurullah Asa, this is in accordance with Regulation of Oil and Gas Regulatory Agency (Nomar) 15 year 2016 about auction of transmission segment and or gas distribution network area. Beleid stated that the determination of the transmission segment and / or gas distribution network area to be auctioned, one of which can be a business proposal based on the Master Plan of National Gas Transmission and Distribution Network.

"There are two companies proposing the pipeline project to be auctioned, there is already a feasibility study," he said in Jakarta.

First, the South Sumatra Regional Energy and Mining Enterprise (PDPDE) submits an application to manage the Tanjung Api-Api Fire to Muntok transmission segment along 138 kilometers (km) with a 20 inch diameter pipe. Secondly, PT Berkah Kawasan Manyar Sejahtera requested to manage the fulfillment of natural gas needs for power plants and industries in Manyar, Gresik. On both these proposals, he said BPH Migas immediately held an auction.

"BPH Migas will follow up by carrying out the auction of the sections in question," said Fanshurullah.

Although later auctioned and not appointed directly, Fashurullah explained that the proposing business entity still has the privilege (privilege). Still under the Regulation of BPH Migas 15/2016, the auction committee shall provide an opportunity for the initiating entity to bid the amount of investment expense (capital expenditure) and operational expenditure equal to or lower than the business entity having the highest evaluation value.

According to data from the Ministry of Energy and Mineral Resources (ESDM), until 2016, the length of gas pipes that have been installed recorded along 14,417, 18 km. Detailed, open access pipes 4,296.59 km, dedicated downstream 5,453.13 km, dedicated upstream 4,649.89 km, as well as pipes built for own benefit 71.57 km. The length of this gas pipeline is targeted to increase every year. Target Ministry of Energy and Mineral Resources, the national pipe length can reach 17 584 29%, "he said.

Admittedly, there are a number of obstacles in the construction of Pipe Gresik-Semarang this. One of them is a land area of ​​unexualed project location, which is 60 km long. However, this time has been followed up by increasing the number of teams. Thus, Land acquisition is expected to be resolved soon.

The next project is the Grissik-Pusri Pipe. The 176 km pipe has a diameter of 20 inches and a gas flow capacity of 160 million standard cubicrfeet per day / mmscfd. The pipeline is planned to be used to meet the gas needs of PT Pupuk Sriwijaya (Pusri), PT PLN km in 2020. The pipeline consists of open access pipes of 5,665 km, dedicated downstream of 7,095 km, dedicated upstream of 4,697 km, and own pipe 127 km.

Keep Building

In addition to auctioning new projects, Fanshurullah added, there are five gas pipeline projects that are currently under construction. First, the transmission pipeline Gresik-Semarang is done by PT Pertamina Gas (Pertagas). As of mid-May, the project's engineering progress has reached 93%, 99% procurement, and 37.5% conservation.

"As for the pipe that has been embedded along 77.75 km of target 266.26 km or new saga start construction of this pipe.

"The Tanjung Api-Fire Muntok Pipe went ahead with this pipe. So Pertagas build up Pusri, then proceed to Muntok and Bangka, "explained Fanshurullah.

Next is the Duri-Dumai Pipe Project. The 67km pipeline is targeted to start operating in 2018. The project, with a total investment value of US $ 76 million, will begin construction in the third quarter by PT PGN and PT Pertamina. Lastly, Pipe PK

52-Tanjung Batu done by PLN. The 55 km pipeline is targeted to start operating by the end of 2017.

Oil and Gas Infrastructure

IN INDONESIA

Dua Proyek Pipa Gas Segera Dilelang

Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) segera melelang dua proyek pipa gas di Sumatera dan Jawa. Hal ini dilakukan berdasarkan usulan dua perusahaan kepada BPH Migas yakni Perusahaan Daerah Pertambangan dan Energi (PDPDE) Sumatera Selatan dan PT Berkah Kawasan Manyar Sejahtera.

Menurut Kepala BPH Migas Fanshurullah Asa, hal ini sesuai Peraturan BPH Migas Nomar 15 Tahun 2016 tentang lelang ruas transmisi dan atau wilayah jaringan distribusi gas bumi. Beleid ini menyebutkan bahwa penetapan ruas transmisi dan atau wilayah jaringan distribusi gas bumi yang akan dilelang,  salah satunya dapat merupakan usulan badan usaha berdasarkan Rencana Induk Jaringan Transmisi dan Distribusi Gas Bumi Nasional.

“Sudah ada dua perusahaan yang mengusulkan proyek pipa untuk dilelang, ini sudah ada studi kelayakannya,” kata dia di Jakarta.

Pertama, Perusahaan Daerah Pertambangan dan Energi (PDPDE) Sumatera Selatan mengajukan permohonan untuk mengelola ruas transmisi Tanjung Api-Api sampai Muntok sepanjang 138 kilometer (km) dengan diameter pipa 20 inch. Kedua, PT Berkah Kawasan Manyar Sejahtera meminta untuk dapat mengelola pemenuhan kebutuhan gas bumi untuk pembangkit listrik dan industri di daerah Manyar, Gresik. Atas kedua usulan ini, dikatakannya BPH Migas segera menggelar lelang. 

“BPH Migas akan menindaklanjuti dengan melaksanakan lelang ruas yang dimaksud,” tutur Fanshurullah.

Meski kemudian dilelang dan bukan ditunjuk langsung, Fashurullah menjelaskan bahwa badan usaha pengusul tetap memiliki keistimewaan (privilege). Masih berdasar Peraturan BPH Migas 15/2016, panitia pelaksana lelang memberikan kesempatan kepada badan usaha pemrakarsa untuk melakukan penawaran besaran biaya investasi (capital expenditure) dan biaya operasi (operational expenditure) sama atau lebih rendah dari badan usaha yang mempunyai nilai tertinggi hasil evaluasi.

Menurut data Kementerian Energi dan Sumber Daya Mineral (ESDM), hingga 2016 lalu, panjang pipa gas yang telah terpasang tercatat sepanjang 14.417 ,18 km. Rincinya, pipa open access 4.296,59 km, dedicated hilir 5.453,13 km, dedicated hulu 4.649,89 km, serta pipa yang dibangun untuk kepentingan sendiri 71,57 km. Panjang pipa gas ini ditargetkan terus bertambah setiap tahunnya. Target Kementeri ESDM, panjang pipa nasional bisa mencapai 17.584 29%,” kata dia.

Diakuinya, ada sejumlah kendala dalam pembangunan Pipa Gresik-Semarang ini. Salah satunya terdapat sebagia lahan lokasi proyek yang belum dibebaskan, yakni sepanjang 60 km. Namun, saat ini telah ditindaklanjuti dengan menambah jumlah tim. Sehingga,

pembebasan lahan diharapkan dapat segera diselesaikan.

Proyek selanjutnya adalah Pipa Grissik-Pusri. Pipa sepanjang 176 km ini memiliki diameter 20 inch dan kapasitas alir gas 160 million standard cubicrfeet per day/mmscfd. Pipa ini rencananya akan digunakan untuk memenuhi kebutuhan gas PT Pupuk Sriwijaya (Pusri), PT PLN km pada 2020. Pipa tersebut terdiri pipa open acces 5.665 km, dedicated hilir 7.095 km, dedicated hulu 4.697 km, dan pipa untuk kepentingan sendiri 127 km.

Terus Membangun

Selain melelang proyek baru, Fanshurullah menambahkan, terdapat lima proyek pipa gas yang kini sedang dibangun. Pertama, pipa transmisi Gresik-Semarang yang dikerjakan oleh PT Pertamina Gas (Pertagas). Hingga pertengahan Mei lalu, progres rekayasa (engineering) proyek ini telah mencapai 93%, pengadaan 99%, dan konsiruksi 37,5%.

“Sementara untuk pipa yang telah tertanam sepanjang 77,75 km dari target 266,26 km atau baru baru saga memulai konstruksi pipa ini.

“Pipa Tanjung Api-Api Muntok tadi meneruskan pipa ini. Jadi Pertagas membangun sampai Pusri, kemudian dilanjutkan ke Muntok dan Bangka,” jelas Fanshurullah.

Berikutnya yakni Proyek Pipa Duri-Dumai. Pipa sepanjang 67 km ini ditargetkan mulai beroperasi pada 2018. Proyek dengan nilai investasi sebesar US$ 76 juta tersebut akan mulai konstruksi pada kuartal ketiga ini oleh PT PGN dan PT Pertamina. Terakhir, Pipa PK 52-Tanjung Batu yang dikerjakan PLN. Pipa sepanjang 55 km ini ditargetkan mulai beroperasi pada akhir 2017.

Investor Daily, Page-14, Friday, July 21, 2017