ExxonMobil wants $121m for JTB Field

United States oil producer ExxonMobil has set a price of US$ 121 million for state owned energy giant Pertamina to acquire its 45 percent participating interest in the Jambaran-Tiung Biru (JTB) field in Central Java.

At present, the JTB field is jointly ownedby several parties, including Pertamina subsidiary PT Pertamina EP Cepu (PEPC) with 45 percent interest and local government-owned enterprises with 10 percent.

ExxonMobil holds the remaining 45 percent shares. The Energyand Mineral Resources Ministry has mandated PEP( to take over ExxonMobil’s stake in the JTB field, slated to be on stream in 2020 with a total investment value of $ 1.55 billion.

"ExxonMobil has stated that its participating interest is worth $ 121 million and we're still evaluating it,” Pertamina upstream director Syamsu Alam said Wednesday in Jakarta.

The JTB field is expected to produce at least 172 million standard cubic feet per day (mmscfd) within a period of 16 years, 100 mmscfd of which will be sold to state electricity firm PLN for $ 7.6 per million British Thermal Units (mmbtu) to support the company’s operations in Gresik, East Java.

Jakarta Post, Page-14, Saturday, August 19, 2017

Aramco, Rosneft, Pertamina join forces

State-owned energy giant Pertamina has said it has convinced Saudi Arabian oil giant Saudi Aramco and Russia's Rosneft to conduct joint marketing efforts, which will ease its financial burden. 

In December last year, Pertamina signed a joint-venture agreement with Saudi Aramco on upgrading the Cilacap refinery in Central java with a total investment of US$5.8 billion. It is estimated that the upgraded facility can produce 400,000 barrels of oil per day (bopd), up from the current production of 348,000 bopd, once it is complete in 2023. 

Meanwhile, Pertamina will team up with Rosneft to develop the new $15 billion Tuban refinery, also in East java, which is projected to produce 300,000 bopd once it comes online in 2024. Pertamina, which owns 55 percent of both projects, was previously the sole off-taker of output by the Cilacap and Tuban refineries. This resulted in all debts from these projects being Pertamina's alone, resulting in an increase in its debt burden. 

"So, we are renegotiating the Cilacap and Tuban projects, with negotiations reaching 95 percent completion. We're currently just waiting for the legal process before going to the next phase," Pertamina finance director Arief Budiman said Wednesday.

Pertamina said both Saudi Aramco and Rosneft had agreed to give financial support for the Basic Engineering Design (BED) and Front End Engineering Design (FEED) of the two refinery projects. The basic studies and FEED for the Tuban project alone will cost $270 million.

Jakarta Post, Page-14, Saturday, August 19, 2017

BPH Migas Ready to Contribute Pertamina

The Downstream Regulatory Agency for Oil and Gas is ready to contribute Rp 1 trillion per year contribution. The fee is to support a one-price fuel oil program implemented by PT Pertamina.

A number of proposals are being discussed to increase the location of the program, including adding an authorized fuel sub-dealer equivalent to retailers.

This was surfaced in a press conference following the meeting of the Downstream Oil and Gas Regulatory Agency (BPH Migas) with the directors of PT Pertamina, Friday (18/8), in Jakarta.

The meeting was attended by Head of BPH Migas Fanshurullah Asa, Pertamina President Director Elia Massa Manik, Marketing Director of Pertamina M Iskandar, and Director of Pertamina Gas Yenni Andayani.

According to Fanshurullah, every year the Non-Tax State Revenue (PNBP) that goes to BPH Migas is around Rp 1.2 trillion. The revenues come from fixed contributions of downstream oil and gas (BBM) and petroleum operating entities operating throughout Indonesia. Of all the revenue, BPH Migas only uses about Rp 200 billion per year.

"So, there is still a yearly rest of about Rp 1 trillion that we submit to the state treasury. If approved, we are proposing that the funds be used to support the fuel program of one price worked by Pertamina, "said Fanshurullah.

The funds can be utilized to build sub fuel distributor infrastructure in the points of fuel price program. He calculates, the budget to build sub-distributor infrastructure whose specifications are below the filling station Fuel for public (gas stations) an average of Rp 30 million. There will be hundreds of sub-dealers that can be built to realize a one-price oil and gas program.

"For 50 points of the fuel price program, Pertamina will bear the deficit of around Rp 300 billion per year. As is Support the remaining funds of PNBP BPH Migas, I think it helps to alleviate the burden of Pertamina, "said Fanshurullah.

Meanwhile, Massa said, it welcomes all proposals that support the BBM program one price. The proposal included giving subsidies to the House of Representatives Commission VII. However, so far Pertamina will still apply the internal efficiency so that the cost of fuel program operation one price not too burden the company's finances.

"Problem-efficiency companies with the addition of our new directors, all still aims at how there is additional value or benefits, "says Massa."

Pertamina added a new directorate, Asset Directorate, which is responsible for managing Pertamina's assets to subsidiaries. According to Massa, Pertamina's assets outside Pertamina's main business reach Rp 137 trillion. If all assets are managed properly and properly, it will provide greater value for Pertamina.

Satya Widya Yudha

Previously, Vice Chairman of Commission VII of the House of Representatives, Satya Widya Yudha, stated that there is an option to subsidize the BBM program for one price which has been distributed to Pertamina. If the option can not be realized, Pertamina must be able to apply the best possible efficiency in all business lines of the company.

One price BBM program will be realized in 150 locations in Indonesia until 2019. So far, the program has been realized in 22 locations. This program builds the official residential infrastructure of premium fuel and diesel fuel so that the price is uniform, which is Rp 6.450 per liter for premium and Rp 5,150 per liter for subsidized diesel.

For the Region of Papua and North Kalimantan, the cost of fuel distribution in this program is borne by Pertamina about Rp 800 billion per year.

As for Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan previously said, the distribution of subsidized fuel volume in 2018 will not be much different from the realization in 2017, which ranges from 14 million to 15 million kiloliters.

IN INDONESIA

BPH Migas Siap Sumbang Pertamina

Badan Pengatur Hilir Minyak dan Gas Bumi siap menyumbangkan pendapatan iuran sebesar Rp 1 triliun per tahun. Iuran tersebut untuk mendukung program bahan bakar minyak satu harga yang dilaksanakan PT Pertamina.

Sejumlah usulan sedang dibahas untuk menambah lokasi program tersebut, termasuk menambah sub-penyalur bahan bakar resmi yang setara dengan pengecer.

Hal itu mengemuka dalam konferensi pers seusai pertemuan Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) dengan direksi PT Pertamina, Jumat (18/8), di Jakarta.

Pertemuan itu dihadiri antara lain Kepala BPH Migas Fanshurullah Asa, Direktur Utama Pertamina Elia Massa Manik, Direktur Pemasaran Pertamina M Iskandar, dan Direktur Gas Pertamina Yenni Andayani.

Menurut Fanshurullah, setiap tahun Penerimaan Negara Bukan Pajak (PNBP) yang masuk ke BPH Migas sekitar Rp 1,2 triliun. Penerimaan itu datang dari iuran tetap badan usaha sektor hilir bahan bakar minyak (BBM) dan gas bumi yang beroperasi di seluruh Indonesia. Dari semua penerimaan itu, BPH Migas hanya memakai sekitar Rp 200 miliar per tahun.

”Jadi, masih ada sisa setiap tahun sekitar Rp 1 triliun yang kami serahkan ke kas negara. Jika disetujui, kami sedang mengusulkan agar dana itu dipakai untuk mendukung program BBM satu harga yang dikerjakan Pertamina,” ujar Fanshurullah.

Dana tersebut bisa dimanfaatkan untuk membangun infrastruktur sub penyalur BBM di titik-titik program BBM satu harga. Ia menghitung, anggaran untuk membangun infrastruktur sub-penyalur yang spesifikasinya di bawah stasiun pengisian bahan bakar untuk umum (SPBU) rata-rata Rp 30 juta. Akan ada ratusan sub-penyalur yang bisa dibangun untuk mewujudkan program BBM satu harga.

”Untuk 50 titik program BBM satu harga saja, Pertamina menanggung defisit sekitar Rp 300 miliar per tahun. Dengan adanya dukungan dana sisa PNBP BPH Migas, saya rasa cukup membantu meringankan beban Pertamina,” ucap Fanshurullah.

Sementara itu, Massa mengatakan, pihaknya menyambut baik semua usulan yang mendukung program BBM satu harga. Usulan itu termasuk pemberian subsidi yang diwacanakan Komisi VII DPR. Namun, sejauh ini Pertamina masih akan tetap menerapkan efisiensi internal agar ongkos operasi program BBM satu harga tidak terlalu membebani keuangan perusahaan.

”Soal-efisiensi perusahaan dengan penambahan direksi baru kami, semua tetap bertujuan bagaimana ada penambahan nilai atau manfaat,” ujar Massa.”

Pertamina menambah satu direktorat baru, yaitu Direktorat Aset, yang bertugas mengelola aset-aset Pertamina hingga ke anak usaha. Menurut Massa, aset Pertamina yang bersifat di luar bisnis utama Pertamina mencapai Rp 137 triliun. Apabila semua aset tersebut dikelola dengan baik dan tepat, itu akan memberikan nilai tambah yang lebih besar bagi Pertamina.

Sebelumnya, Wakil Ketua Komisi VII DPR Satya Widya Yudha mengutarakan, terbuka opsi untuk pemberian subsidi terhadap program BBM satu harga yang selama ini biaya distribusinya dibebankan kepada Pertamina. Jika opsi itu tidak bisa direalisasikan, Pertamina harus dapat menerapkan efisiensi sebaik mungkin di semua lini bisnis perusahaan.

Program BBM satu harga akan direalisasikan di 150 lokasi di Indonesia sampai dengan 2019. Sejauh ini, program tersebut sudah terealisasi di 22 lokasi. Program ini membangun infrastruktur penyalur resmi BBM jenis premium dan solar sehingga harganya seragam, yakni Rp 6.450 per liter untuk premium dan Rp 5.150 per liter untuk solar bersubsidi. 

Untuk Wilayah Papua dan Kalimantan Utara, ongkos distribusi BBM dalam program ini yang ditanggung Pertamina sekitar Rp 800 miliar per tahun.

Adapun Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan sebelumnya mengatakan, penyaluran volume BBM bersubsidi pada 2018 tidak akan jauh berbeda dengan realisasi pada 2017, yakni berkisar 14 juta-15 juta kiloliter. 

Kompas, Page-18, Saturday, August 19, 2017

Pertamina Balikpapan Starts Build 2018

REFINERY DEVELOPMENT

The construction process in the development plan of PT Pertamina RU V Balikpapan is expected to begin early next year. Currently, the company is preparing the land for the development of the refinery.

Acting Project Coordinator of RDMP RU V Imam Sunarto said the completion of the land preparation takes a long time. In addition, the construction process is also still awaiting a decision from the center.

"For further construction must wait for the final decision of investment, so until the end of the year the development process is at the stage of land preparation," said Imam, Friday (18/8).

He said the company is trying to complete the development phase in accordance with the target. Demolition of buildings on development land will also be done soon. The buildings affected by the demolition include the Parikesit Stadium and several official houses of PT Pertamina employees. To allocate employees, PT Pertamina provides apartment units not far from the refinery.

"Demolition as soon as we will do. Estimates of the construction process will begin early next year, which should be prepared quite a lot as well, "said Imam.

75 HECTARE

According to him, to develop the processing capacity at the Balikpapan refinery, Pertamina needs 75 hectares of land. The Company has started the preparation phase since 2016, one of which has been realized is the construction of a 24-storey employee apartment building. Pertamina will also expand the pier.

Pertamina has appointed PT Wijaya Karya as the project implementer. The construction of the apartment is done by PT Pembangunan Perumahan (PP).

Currently, Balikpapan refinery production capacity reaches 260,000 barrels per day. Through this development project, capacity will be increased to 360,000 barrels per day with product quality in accordance with EURO 2 in the first phase.

The quality of refined products will increase to EURO 5 when the second phase of development is completed. The first phase of development is targeted to be completed in the first quarter of 2020.

IN INDONESIA

Pertamina Balikpapan Mulai Bangun 2018

Proses konstruksi dalam rencana pengembangan kilang PT Pertamina RU V Balikpapan diperkirakan dimulai awal tahun depan. Saat ini perseroan sedang mempersiapkan lahan pengembangan kilang tersebut.

Pejabat Sementara Project Coordinator RDMP RU V Imam Sunarto mengatakan, penyelesaian persiapan lahan membutuhkan waktu yang cukup lama. Selain itu, proses konstruksi juga masih menunggu keputusan dari pusat.

“Untuk lanjut konstruksi harus menunggu keputusan final investment, jadi sampai akhir tahun proses pengembangan berada pada tahapan land preparation,” ujar Imam, Jumat (18/8).

Dia mengatakan, perusahaan berupaya menyelesaikan tahapan pengembangan sesuai dengan target. Pembongkaran bangunan di lahan pengembangan juga akan segera dilakukan. Adapun bangunan yang terkena pembongkaran antara lain adalah Stadion Parikesit dan beberapa rumah dinas karyawan PT Pertamina. Untuk mengalokasi karyawan, PT Pertamina menyediakan unit apartemen tidak jauh dari kilang.

“Pembongkaran secepatnya akan kami lakukan. Perkiraan proses konstruksinya akan dimulai awal-awal tahun depan, yang harus disiapkan cukup banyak juga,” kata Imam.

75 HEKTARE

Menurutnya, untuk mengembangkan kapasitas pengolahan pada kilang Balikpapan, Pertamina membutuhkan lahan seluas 75 hektar. Perseroan telah memulai tahap persiapan sejak 2016, salah satu yang telah terealisasi adalah pembangunan gedung apartemen karyawan berlantai 24. Pertamina juga akan memperluas dermaga.

Pertamina telah menetapkan PT Wijaya Karya selaku pelaksana proyek. Adapun pembangunan apartemen dikerjakan oleh PT Pembangunan Perumahan (PP).

Saat ini, kapasitas produksi kilang Balikpapan mencapai 260.000 barel per hari. Melalui proyek pengembangan ini, kapasitas akan ditambah menjadi 360.000 barel per hari dengan kualitas produk sesuai dengan EURO 2 pada tahap pertama.

Kualitas produk olahan akan meningkat menjadi EURO 5 saat pengembangan tahap kedua dituntaskan. Pengembangan tahap pertama ditargetkan rampung pada kuartal pertama 2020.

Bisnis Indonesia, Page-11, Saturday, August 19, 2017

Rekind Continue Working Cirebon-Semarang Gas Pipe

PT Rekayasa Industri (Rekind) will continue the gas transmission pipeline project Cirebon-Semarang and look for the possibility of industries that will absorb the gas.

The Cirebon-Semarang pipeline is part of the Trans-Java gas pipeline project. The Trans-Java project consists of three main projects: First, western Java with an investment value of US $ 300 million with Cirebon-KHT line of 84 km and Tegalgede-Muara Tawar 50 km.

Secondly, North Java worth US $ 400 million with Cirebon-Semarang line 235 km. Third, eastern Java worth US $ 360 million with 271 km Semarang-Gresik line and East Java Gas Pipeline (FJGP) -Grati worth US $ 58 million 22.1 km.

Director of Strategy Development and Risk Management Rekind Yanuar Budinorman said the project has not been completed since the auction was won in 2006 due to supply and buyer constraints. However, he insists he will still commit to run the project and look for potential buyers.

Currently, he states looking for potential buyers who can buy gas. The preliminary survey conducted by potential buyers comes from West Java and Central Java.

"When we are looking for offtaker in the region, we are Cirebon and Semarang. Our offtaker is in West Java and Central Java, "he said in Jakarta, Friday (18/8).

After looking at consumer opportunities, Rekind must be able to get the gas demand from consumers about 200 million standard cubic feet per day / MMscfd.

If the consumer demand is less than 200 MMscfd, the project becomes unfeasible in terms of investment due to total pipe capacity based on the auction results of 200 MMscfd to 300 MMscfd.

"If less than 200 MMscfd, it is not feasible," he said.

He continued the government will help find the source of gas supply after Rekind get prospective buyers. Therefore, Yanuar will report the list of potential gas buyers to the Ministry of Energy and Mineral Resources at the end of August 2017. Gas supply options may originate and the nearest gas field and liquefied natural gas (LNG).

"On the 28th we will report to ESDM that the officer is this," he said.

After that, he will report to the Oil and Gas Downstream Regulatory Agency (BPH Migas) to reaffirm its commitment to the project. If the project can continue, Yanuar calls the need to update the feasibility study (FS) of the project. He estimates with the study's update that the investment value initially targeted at US $ 400 million is likely to change even if it is not significant.

USING THE RAILWAY

To be able to start the pipeline construction, it will use 90% of railway lines and only do land acquisition with 10% portion. When allocations and supplies have been obtained, construction can not be completed within a year because to build a 235 km long pipe takes about 33 months.

He hopes at the end of August can be obtained a serious consumer candidate to take advantage of gas that will be distributed Rekind.

"We expect at the end of August we have got a serious offtaker candidates," he said.

Previously, Head of BPH Migas Fanshurullah Asa said 11 years ago, there has been no development of the gas pipeline project. He also has called Rekind as the winner of the auction.

He questioned the commitment to build the gas pipeline. The reason, the time lag since winning the tender in 2006 is too long. Fanshurullah affirm Rekind mention will give answer on September 5, 2017.

"Cirebon-Semarang has been 11 years we asked for certainty Rekind build this pipe," he said.

IN INDONESIA

Rekind Lanjut Garap Cirebon-Semarang

PT Rekayasa lndustri (Rekind) akan melanjutkan proyek pipa gas transmisi Cirebon-Semarang dan mencari kemungkinan industri yang akan menyerap gas.

Pipa Cirebon-Semarang merupakan bagian dari proyek integrasi pipa gas Trans-Jawa. Adapun, proyek Trans-Jawa terdiri atas tiga proyek utama yaitu Pertama, Jawa bagian barat dengan nilai investasi US$ 300 juta dengan jalur Cirebon-KHT sepanjang 84 km dan Tegalgede-Muara Tawar 50 km.

Kedua, Jawa bagian utara senilai US$ 400 juta dengan jalur Cirebon-Semarang 235 km. Ketiga, Jawa bagian timur senilai US$ 360 juta dengan jalur Semarang-Gresik sepanjang 271 km dan East Java Gas Pipeline (FJGP)-Grati senilai US$ 58 juta 22,1 km.

Direktur Strategi Development dan Risk Management Rekind Yanuar Budinorman mengatakan proyek itu belum bisa diselesaikan sejak lelang dimenangkan pada 2006 karena terkendala pasokan dan pembeli. Namun, dia menegaskan masih akan berkomitmen menjalankan proyek dan mencari pembeli potensial.

Saat ini, dia menyatakan mencari calon pembeli yang bisa membeli gas. Adapun dari survei pendahuluan yang dilakukan pembeli potensial berasal dari Jawa Barat dan Jawa Tengah.

“Saat kami sedang mencari offtaker di wilayah, ruas kita Cirebon dan Semarang. Offtaker kita ada di Jawa Barat dan Jawa Tengah,” ujarnya di Jakarta, Jumat (18/8). 

Setelah melihat peluang konsumen, Rekind harus bisa mendapatkan peluang kebutuhan gas dari konsumen sebesar sekitar 200 million standard cubic feet per day/MMscfd.

Bila permintaan konsumen kurang dari 200 MMscfd, proyek menjadi tidak layak dari segi investasi karena kapasitas total pipa berdasarkan hasil lelang 200 MMscfd hingga 300 MMscfd. 

“Kalau kurang dari 200 MMscfd, sudah tidak feasible,” katanya.

Dia melanjutkan pemerintah akan membantu mencarikan sumber pasokan gas setelah Rekind mendapatkan calon pembeli. Oleh karena itu, Yanuar akan melaporkan daftar calon pembeli gas kepada Kementerian ESDM pada pengujung Agustus 2017. Opsi pasokan gas bisa berasal dan lapangan gas terdekat dan gas alam cair (liquefied natural gas/LNG). 

“Tanggal 28 kita akan report ke ESDM bahwa offtakernya adalah ini,” katanya.

Setelah itu, dia akan melapor kepada Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) untuk mengukuhkan kembali komitmennya dalam proyek itu. Bila proyek bisa dilanjutkan, Yanuar menyebut perlu memperbarui studi kelayakan (feasibility study/FS) proyek. Dia memperkirakan dengan pembaruan studi tersebut nilai investasi yang awalnya ditarget US$ 400 juta kemungkinan berubah meski tidak signifikan.

MENGUNAKAN JALUR KERETA

Untuk bisa memulai konstruksi pipa, pihaknya akan menggunakan 90% jalur kereta api dan hanya melakukan pembebasan lahan dengan porsi 10%. Bila alokasi dan pasokan sudah didapat, pembangunan tidak bisa rampung dalam setahun karena untuk membangun pipa sepanjang 235 km membutuhkan waktu sekitar 33 bulan.

Dia berharap pada akhir Agustus bisa didapat calon konsumen yang serius untuk memanfaatkan gas yang nantinya disalurkan Rekind.

“Kita harapkan di akhir Agustus kita sudah mendapatkan calon offtaker yang serius,” tegasnya.

Sebelumnya, Kepala BPH Migas Fanshurullah Asa mengatakan 11 tahun berselang, belum ada perkembangan proyek pipa gas itu. Dia pun telah memanggil Rekind sebagai pemenang lelang.

Dia mempertanyakan komitmen untuk membangun pipa gas itu. Alasannya, jeda waktu sejak memenangkan tender di 2006 terlalu lama. Fanshurullah menegaskan Rekind menyebut akan memberikan jawaban pada 5 September 2017. 

“Cirebon-Semarang sudah 11 tahun kami meminta kepastian Rekind membangun pipa ini,” katanya. 

Bisnis Indonesia, Page-10, Saturday, August 19, 2017

Pertamina halts plan to acquire Russian flelds

State-owned energy company Pertamina is finding it difficult to acquire two energy blocks controlled by Russian oil firm Rosneft because of the high acquisition tax the firm has to pay to Indonesian authorities to clinch the deal.

Pertamina will team up with Rosneft to develop the new US$ 15 billion Tuban refinery in East Java. It is projected that the refinery will process 300,000 barrels of oil per day (bopd) once it is completed in 2024.

As part of this partnership, Pertamina has also been looking to acquire a 37.5 percent participating interest in the onshore Russkoye field and a 20 percent interest in the offshore Northern Chayvo Field in Russia.

However, Pertamina’s upstream director, Syamsu Alam, said the company was required to pay a high acquisition tax to the Indonesian government for these two fields, which made the acquisition plan economically unfeasible.

“We tried to discuss this matter with the government, but the problem has yet to be solved. On the other hand, Rosneft can’t wait too long because other parties have also sublnitted offers for those two fields,” Syamsu said recently.

“So we have talked to Rosneft, saying that it is unlikely that we can seal the deal in the near future. Hence, it is up to them if they want to make a deal with other parties.”

Syamsu said it was possible for Pertamina to review other fields from Rosneft, depending on the business-to-business approach between the two. Meanwhile, Pertamina has sent a proposal to the Iranian government-owned National Iranian Gil Company (NIOC) in February to develop two oil and gas fields in Iran, namely the Ab-Teymour and Nansouri Fields.

The two Helds are estimated to contain 1.5 billion barrels of reserves each and are expected to produce 200,000 bopd each. In the lirst six month of 2017, Pertamina’s overseas oil and gas production grew almost 30 percent annually to 152,000 barrels of oil equivalent per day (boepd), while domestic production only climbed 0.2 percent to 540,000 boepd.

The foreign fields produced 104,000 bopd and 291 million standard cubic feet per day (mmscfd) of gas, an increase of 23.8 percent and 47.7 percent, respectively.

In the long run, Pertamina aims to jack up its oil and gas production to 1.9 million boepd by 2025, 34.2 percent of which will come from its overseas fields Pertamina’s decision to be more aggressive in overseas territories has come in the Wake of declining national oil production and ever-growing fuel consumption.

Within the hrst six months of this year, Pertamina’s fuel sales increased by 4 percent to 32.6 million kiloliters year-on-year. Premium gasoline, which has a research octane number (RON) of 88, accounted for 57.6 percent of total sales, while the rest came from Pertamina’s Perta Series gasoline, including the RUN-90 Pertalite and the RON-92 Pertamax.

In 2015, the government every three months evaluated the prices of Premium, subsidized diesel Solar and kerosene in accordance With the levels of global oil prices.

However, since April 2016, the government has maintained the prices at Rp 6,450 (49 US cents) per liter for Premium, Rp 5,150 per liter for Solar and Rp 2,500 per liter for kerosene, despite an upward trend in global oil prices. Because of this, Pertamina has had to sell Premium and diesel at a loss because it provides subsidies worth Rp 1,200 per liter for diesel and Rp 400 per liter for Premium.

“In the first half of 2017, the external environment was still highly volatile with increasing global oil prices. The price increase Was a great incentive for our upstream business, but it also led to the soaring cost of goods sold in our downstream business, affecting our net profits in the process,” Pertamina president director Elia Massa Manik said.

Pertamina’s revenues climbed by 19 percent to $20.5 billion during the first half of the year, but its net profits plummeted by 24 percent to $1.4 billion.

Jakarta Post, Page-13, Friday, August 18, 2017

Pertamina Canceled Acquisition of the Russian Block

PT Pertamina canceled acquisition of oil working area in Russia due to tax hampering that must be borne by the company. Upstream Director of PT Pertamina Syamsu Alam said the tax burden would make the economic scale of field development reduced. Therefore, it still sees an opportunity whether there is still a possibility of other block acquisition opportunities.

As part of a joint agreement with Rosneft, a Russian company, in the Tuban refinery project, Pertamina is entitled to evaluate two oil and gas fields owned by Rosneft.

Based on the official statement, in the memorandum of understanding between the two oil and gas companies, Pertamina can control 20% participation stake in The Northem Tip of Chayvo Field and 37.5% in Russkoye Field.

From these activities, Pertamina targets to get oil 35,000 barrels per day (bpd) and oil and gas reserves 200 million barrels oil equivalent from Russia. For that, Pertamina will enter in two oil and gas production blocks in Russia with share ownership in each block about 10% -15%.

"Russia, if the two fields we have said we can not be closing because of the tax problem," he said on Wednesday (16/8).

Despite interest in the two fields, the company must cancel the acquisition of the oil block in Russia which is actually obtained as an additional benefit from the cooperation of the construction of the Tuban Refinery with Rosneft. The company finally released both fields because there are already other companies that open the offer.

"So we say that for this one, maybe we are difficult to be able to do the closing so, yes, please if They [Rosneft] want to do business with others, "he said.

According to him, the tax burden is quite large. However, he did not mention how much the burden should be the responsibility of the company. "Fairly We make the acquisition taxable."

IN INDONESIA

Pertamina Batal Akuisisi Blok Rusia

PT Pertamina batal mengakuisisi wilayah kerja minyak di Rusia karena terhambat pajak yang harus ditanggung perseroan. Direktur Hulu PT Pertamina Syamsu Alam mengatakan, beban pajak ini membuat skala ekonomi pengembangan lapangan berkurang. Oleh karena itu, pihaknya masih melihat peluang apakah masih ada kemungkinan peluang akuisisi blok lainnya.

Sebagai bagian dari kesepakatan bersama dengan Rosneft, perusahaan asal Rusia, dalam proyek pembangunan Kilang Tuban, Pertamina berhak melakukan evaluasi terhadap dua lapangan migas milik Rosneft.

Berdasarkan keterangan resmi, dalam nota kesepahaman kedua perusahaan migas itu, Pertamina bisa menguasai saham partisipasi sebesar 20% di Lapangan The Northem Tip of Chayvo dan 37,5% di Lapangan Russkoye.

Dari kegiatan tersebut, Pertamina menargetkan bisa mendapat minyak 35.000 barel per hari (bph) dan cadangan migas 200 juta barel setara minyak dari Rusia. Untuk itu, Pertamina akan masuk di dua blok migas produksi di Rusia dengan kepemilikan saham di masing-masing blok sekitar 10%-15%.

“Rusia, kalau dua lapangan itu kita sudah bilang kita tidak bisa closing karena masalah ada pajaknya itu,” ujarya, Rabu (16/8).

Meskipun berminat dengan dua lapangan tersebut, perseroan harus membatalkan rencana akuisisi blok minyak di Rusia yang sebenarnya didapat sebagai tambahan manfaat dari kerja sama pembangunan Kilang Tuban bersama Rosneft. Perseroan akhirnya melepaskan kedua lapangan tersebut karena sudah ada perusahaan lain yang membuka penawaran.

“Jadi kita sampaikan bahwa untuk yang ini, mungkin kita kesulitan untuk bisa melakukan closing sehingga, ya, silakan kalau mereka [Rosneft] mau melakukan bisnis dengan yang lain,” katanya.

Menurutnya, beban pajak yang ditanggung cukup besar. Namun, dia tidak menyebut berapa beban yang harus menjadi tanggungan perseroan. “Lumayan Kita melakukan akuisisi itu terkena pajak."

Bisnis Indonesia, Page-31, Friday, August 18, 2017

SKK Migas Apply Anti-Bribery System

Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) prepares the implementation of ISO 37001: 2016 as an international standard. The anti-bribery management system or Anti-bribery management system is a commitment to prevent corruption in the long chain of downstream oil and gas business.

"SKK Migas has always been committed to preventing the practices of bribery. One of the efforts was to prepare for ISO 370 013: 2016 as an international standard of management system of anti-bribery," said Deputy Chief of SKK Migas Sukandar during a press conference in Jakarta on Wednesday (16 / 8).

Upstream oil and gas industry involves many parties with long business links that make this industry has a high risk of bribery. Bribery can cause harm to the business activities of the upstream oil and gas, such as inefficiency of setting the specification of goods to win a certain vendor, which in turn potentially cause losses to the state.

Chairman of the Commission Agus Rahardjo appreciate SKK Migas apply the anti-bribery System in the scope of oil and gas industry. "ISO 37001 that will be encouraged KPK to apply to companies in Indonesia," said Agus.

IN INDONESIA

SKK Migas Terapkan Sistem Anti-Suap

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mempersiapkan penerapan ISO 37001:2016 sebagai sebuah standar internasional. Sistem manajemen anti-penyuapan atau Anti-bribery management system itu merupakan komitmen mencegah tindakan korupsi di tengah rantai bisnis hilir migas yang panjang.

"SKK Migas selalu berkomitmen untuk mencegah praktik-praktik penyuapan. Salah satu usaha yang dilakukan ialah mempersiapkan ISO 370013:2016 sebagai sebuah standar internasional dari Sistem manajemen anti-penyuapan," ujar Wakil Kepala SKK Migas Sukandar dalam keterangan pers di Jakarta Rabu (16/8).

      lndustri hulu migas melibatkan banyak pihak dengan mata rantai bisnis yang panjang sehingga menjadikan industri ini memiliki risiko penyuapan yang tinggi. Praktik penyuapan dapat menimbulkan kerugian pada kegiatan usaha industri hulu minyak dan gas bumi, seperti timbulnya inefisiensi dari pengaturan spesifikasi barang untuk memenangkan vendor tertentu, yang pada akhirnya berpotensi menimbulkan kerugian negara.

Ketua KPK Agus Rahardjo mengapresiasi Iangkan SKK Migas menerapkan Sistem anti penyuapan di Iingkup industri migas. ”ISO 37001 itu yang akan didorong KPK agar diterapkan di perusahaan-perusahaan di Indonesia," kata Agus.

Media Indonesia, Page-18, Friday, August 18, 2017

Pertamina Earn Revenue of US $ 20.5 Billion

PT Pertamina posted revenues of US $ 20.5 billion in the first half of 2017, up 19 percent from US $ 17.2 billion in the first semester of 2016.

Revenue growth is relatively lower when compared with the growth of crude oil prices Indonesia which rose 35% in the period of first semester 2016.

"Rising crude oil prices have become an incentive for upstream businesses. However, the increase in crude oil prices also affects the increase in cost of goods sold in the downstream sector which has a significant impact on the company's net profit, "said Pertamina Massa Manik President Director in Jakarta, Wednesday (16/8).

As a result of the oil price hike, Pertamina's net profit reached US $ 1.4 billion, down 24 percent from the first semester of 2016. To anticipate the external factors, Pertamina continues to run the company's efficiency program and added value creation through Break Through Project which has reached US $ 360 Million as well as other strategic initiatives.

In the upstream sector, oil and gas production rose 8% to 692 thousand barrels of oil equivalent per day (mboepd) during the first half of 2017. The increase in oil and gas production consisted of oil which rose 12% to 343 mboepd in the first half of 2017. As for gas Earth increased by 4% by 2,022 million cubic feet per day (mmscfd).

In the marketing and trading sectors, sales of fuel oil (BBM) in the first half of 2017 rose 4% to 32.60 million kiloliters (kl). Non-fuel sales in the form of domestic gas, petrochemicals and lubricants rose 6% to 7.82 million kl. As of June 2017, the fuel sales portion of the series of gasoline series jumped and exceeded the premium of 57.6% versus 42.4%.

IN INDONESIA

Pertamina Raup Pendapatan US$ 20,5 Miliar

PT Pertamina mencatatkan pendapatan sebesar US$ 20,5 miliar pada semester pertama 2017 atau tumbuh sebesar 19% jika dibandingkan dengan semester pertama 2016 yang tercatat US$ 17,2 miliar.

Pertumbuhan pendapatan itu relatif lebih rendah bila dibandingkan dengan pertumbuhan harga minyak mentah Indonesia yang naik 35% di periode semester pertama 2016. 

“Naiknya harga minyak mentah telah menjadi insentif bagi bisnis hulu. Namun, kenaikan harga minyak mentah tersebut juga berpengaruh pada peningkatan beban pokok penjualan di sektor hilir yang banyak berdampak pada perolehan laba bersih perusahaan,” kata Direktur Utama Pertamina Massa Manik di Jakarta, Rabu (16/8).

Akibat lonjakan harga minyak itu, laba bersih Pertamina menjadi US$1,4 miliar atau turun 24% daripada semester pertama 2016. Untuk mengantisipasi faktor eksternal itu, Pertamina tetap menjalankan program efisiensi perusahaan dan penciptaan nilai tambah melalui Break Through Project yang sudah mencapai US$ 360 juta serta inisiatif strategis lainnya.

Di sektor hulu, produksi minyak dan gas bumi mengalami kenaikan 8% menjadi 692 ribu barel setara minyak per hari (mboepd) sepanjang semester pertama 2017. Kenaikan produksi migas itu terdiri atas minyak yang naik 12% menjadi 343 mboepd pada semester pertama 2017. Adapun gas bumi naik 4% sebesar 2.022 juta kaki kubik per hari (mmscfd).

Di sektor pemasaran dan niaga, penjualan bahan bakar minyak (BBM) pada semester pertama 2017 naik 4% menjadi 32,60 juta kiloliter (kl). Penjualan non-BBM berupa gas domestik, petrokimia, dan pelumas naik 6% menjadi 7,82 juta kl. Per Juni 2017, porsi penjualan BBM perta series jenis gasolin melonjak dan sudah melampaui premium yakni 57,6% berbanding 42,4%.

Media Indonesia, Page-17, Friday, August 18, 2017

Modest ICP rise leads to low lifting targets

The government has estimated that any rise in global crude prices will remain modest, leading to lower targets for oil production in next year’s state budget proposal.

President Joko “Jokowi” Widodo said the government had proposed to set the Indonesian Crude Price (ICP) at US$48 per barrel in the 2018 state budget, $2 higher than in this year’s revised budget.

The slight increase was due to greater demand globally, he said during the House of Representatives’ plenary session in Jakarta on Wednesday.

Ready-to-sell oil and gas production, known as lifting, would also increase slightly to 2,000 barrels of oil equivalent per day (boepd). However, the oil lifting rate is expected to decline to 800,000 barrels of oil per day (bopd) from this year’s target of 815,000.

Energy and Mineral Resources Minister ‘Ignasius J onan said that the lower expectation was mostly due to depleted oil reserves and persistently low global oil prices, which served as disincentives for oil companies to enhance their oil recovery (EOR) activities and to raise output from unconventional oil production due to the large amounts of investment needed.

Most of Indonesia’s producing oil fields are categorized as old, and thus require EOR activities to maintain and boost output.

“If global oil prices remain under $50 per barrel, with an average rate of $48 from January to July, no company will be interested in EOR activities. It will not matter whether you try to encourage it using the cost recovery or gross-split scheme,” Jonan said, referring to the production sharing contract (PSC) scheme.

Indonesia has continued to battle with depleting oil reserves since its oil and gas heyday between the 1970s and 1990s, when it had a lifting rate of more than 1.6 million bopd. The struggle exacerbated at the end of 2014, when global oil prices plunged to around $30 per barrel, leaving many investors hesitant to increase their exploration and exploitation activities.

Global oil prices have improved since then, but is unlikely to reach the $100 mark in 2012. Bloomberg reported that benchmark West Texas Intermediate (WTI) traded crude at $ 47.68 per barrel on Wednesday afternoon, and fellow benchmark Brent had a similar price of $ 51.01. The government’s upbeat forecast of higher oil prices has hinged on higher demand from developing countries, such as India and China, with the United States Energy Information Administration predicting demand to rise to 100 million BPD next year from 98.38 million this year.

In addition to global oil prices, the decline in output is also attributable to many oil and gas working areas that are set to expire in the next decade, causing many contractors to cut down on their investments as they will not be able to reap the returns. 

The low crude prices have also discouraged many investors from conducting exploration activities, particularly in frontier areas. Most of Indonesia’s possible and potential reserves are located in its eastern part, where riskier operation and a lack of infrastructure will require higher investments.

Based on current conditions, many believe that Indonesia’s oil reserves will be depleted in little over a decade if it maintains its lifting rate at above 800,000 bopd without any new discoveries. Data from the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) shows that Indonesia’s proven oil reserves dropped to 3,306 million stock tank barrels (mmstb) at the end of last year from 3,602 mmstb in 2015.

ReforMiner Institute researcher Pri Agung Rakhmanto said that the government’s estimation was pretty accurate as global crude prices were expected to remain stagnant at $50 next year.

“The ICP will remain stagnant as there is an oversupply in the global market right now,” he said, adding that the lifting target estimate was also reasonable as there would be no large projects operating next year.

Jakarta Post, Page-13, Friday, August 18, 2017