Difficult Oil Reaches US $ 50 per Barrel

Oil prices rebounded last weekend. However, oil prices are still vulnerable to decline, as oil supply continues to grow in flooding the market.

The price of West Texas Intermediate (WTI) oil rose 3.01% to US $ 48.51 per barrel Friday (18/8). Even so, this position is still lower 0.63% compared to the position of the previous week.

Nizar Hilmy, an analyst at Soe Gee Futures, said the decline in US oil stocks by 8.9 million barrels in the August 5-11 period could make oil prices rise.

However, not long after, the Energy Information Administration (EIA) announced rising US oil production. US oil stocks rose 79,000 barrels to 9.5 million barrels per day.

"Interesting pull of this sentiment that makes the gains slightly restrained," said Nizar, Friday (18/8).

Reseavch & Analyst Monex Investindo Futures Faisyal also assessed high US oil production data to be one of the catalysts that suppress oil prices.

"So overall, the price of oil is still depressed," said Faisyal.

Moreover, OPEC member countries are starting to ignore the deal on reducing oil production. Previously, OPEC will reduce production by 1.8 million barrels by the end of March 2018. BuIan then, OPEC members' compliance rate is still about 80%. Now down to 75%.

"If it is like this, the price of oil will be difficult to penetrate US $ 50 per barrel," Nizar added.

Still bearish

Although prices rose last weekend, Nizar sees oil still in a bearish trend. These energy commodities are still shrouded in negative sentiments. According to him, the abundant supply has the opportunity to press the price in the future. Crude oil production from several producing countries also showed an increase. In addition to the US, oil production in China and Libya also increased. The supply of crude oil at the port of Shandong Province, East China, rose 2.3% to 14.3 million barrels in the week ended Aug. 18.

Libyan production is stabilizing again after a strike in one of the mines can be overcome. Nizar predicts that by the end of the quarter, the price of oil can only move within the range of US $ 40-US $ 50 per barrel. By the end of the year, Faisyal predicts crude oil prices could continue to weaken to around US $ 40 per barrel.

"It will continue if OPEC does not make significant changes," he said.

Technically. Faisyai view, oil prices are below the moving average (MA) 50, MA 100, and MA 200. Medium, RSI and stochastic is at the level of 6.39 and 79.32. MACD is in the minus area of ​​0.314. Faisyal predicts, oil prices will weaken to the range of US $ 46.25 to US $ 48 per barrel. Then a week ahead the price will move between US $ 43.65-US $ 50 per barrel. Meanwhile, Nizar predicts oil price will move between US $ 46-US $ 48 per barrel and between US $ 45-US $ 49 per barrel in the next one week.

IN INDONESIA

Minyak Sulit Capai US$ 50 per Barel

Harga minyak kembali menguat akhir pekan lalu. Namun harga minyak masih rentan terkoreksi, karena pasokan minyak masih terus bertambah membanjiri pasar.

Harga minyak jenis West Texas Intermediate (WTI) naik 3,01% menjadi US$ 48,51 per barel Jumat (18/8) lalu. Meski begitu, posisi ini masih lebih rendah 0,63% dibandingkan posisi pekan sebelumnya.

Nizar Hilmy, analis Soe Gee Futures, mengatakan, penurunan stok minyak Amerika Serikat sekitar 8,9 juta barel di periode 5-11 Agustus sempat membuat harga minyak naik.

Tetapi, tidak lama kemudian, Energy Information Administration (EIA) mengumumkan produksi minyak AS naik. Stok minyak AS naik 79.000 barel meniadi 9,5 juta barel per hari. 

“Tarik menarik sentimen inilah yang membuat penguatan sedikit tertahan," ujar Nizar, Jumat. (18/8).

Reseavch & Analyst Monex Investindo Futures Faisyal juga menilai data produksi minyak AS yang masih tinggi menjadi salah satu katalis yang menekan harga minyak.

“Jadi secara keseluruhan, harga minyak masih tertekan," ujar Faisyal.

Apalagi, negara anggota OPEC mulai mengabaikan kesepakatan pengurangan produksi minyak. Tadinya, OPEC akan mengurangi produksi sebesar 1,8 juta barel sampai akhir Maret 2018. BuIan lalu, tingkat kepatuhan anggota OPEC masih sekitar 80%. Kini turun jadi 75%. 

“Jika seperti ini, harga minyak akan sulit menembus US$ 50 per barel,” imbuh Nizar.

Masih bearish

Meski harga naik akhir pekan lalu, Nizar melihat minyak masih dalam tren bearish. Komoditas energi ini masih diselimuti sentimen negatif. Menurutnya pasokan yang melimpah berpeluang menekan harga di kemudian hari. Produksi minyak mentah dari beberapa negara produsen juga menunjukkan kenaikan. Selain AS, produksi minyak China dan Libia juga meningkat. Persedian minyak mentah di pelabuhan Provinsi Shandong, China Timur, naik 2,3% jadi 14,3 juta barel di pekan yang berakhir 18 Agustus ini.

Sedang produksi Libia kembali stabil setelah pemogokan di salah satu tambang bisa diatasi. Nizar memprediksi di akhir kuartal Liga harga minyak hanya mampu bergerak dalam kisaran US$ 40-US$ 50 per barel.

Hingga akhir tahun, Faisyal memprediksi harga minyak mentah berpotensi melanjutkan pelemahan ke kisaran US$ 40 per barel. 

"Ini akan terus berlanjut jika OPEC tidak melakukan perubahan yang signifikan," tandas dia.

Secara teknikal. Faisyai menilik, harga minyak berada di bawah moving average (MA) 50, MA 100, dan MA 200. Sedang, RSI dan stochastic ada di level 6,39 dan 79,32. MACD ada di area minus 0,314. Faisyal memprediksi, harga minyak akan melemah ke kisaran US$ 46,25-US$ 48 per barel. Lalu sepekan ke depan harga akan bergerak antara US$ 43,65-US$ 50 per barel. Sedang Nizar memprediksi harga minyak hari ini bergerak antar US$ 46-US$ 48 per barel dan antara US$ 45-US$ 49 per barel dalam kurun sepekan ke depan.

Kontan, Page-10, Monday, August 21, 2017

Oil Production Costs Can Compete

The average cost of crude oil production in Indonesia is currently at 18 US dollars per barrel. With world crude oil prices in the range of 50 dollars per barrel, the cost of oil production in Indonesia is still considered competitive so it should still be attractive to investors.

The internal supervisor of the Oil and Gas Upstream Business Unit, Taslim Z Yunus, said it was trying to curb the rate of decline in national oil production. There are a number of short-term strategies for oil production to survive.

"There are challenges when the price of crude oil falls. Exploration can only be done companies that have large enough capital. To work around this, we encourage the acceleration of exploration into the field development plan, then start production, "said Taslim in Blora, Central Java, Saturday (19/8).

The target of ready-to-sell oil production by the end of this year is 825,000 barrels per day. As of July, the realization reached 794,000 barrels per day, while in June 801,000 barrels. The ratio of oil and gas reserves (oil and gas) replacement (RRR) this year is targeted 60 percent. Realization in July was 8.98 percent.

Taslim is optimistic that by the end of the year RRR could reach 68 percent by looking at developments in a number of oil fields. This is related to the approval of the development plan (POD) and further development plans (POFD) of several oil fields.

SKK Migas also keeps track of work areas based on risks. High risk working areas, such as in rural areas, areas with minimal facilities, or offshore, will be offered to foreign investors.

"If the region has been no discovery and investment is not too big, it will be prioritized for the national private and state-owned enterprises," he said.

Currently there are 86 working areas of oil and gas exploitation with the production stage of 71 working areas and the development stage of 15 working areas. The 137 exploration work areas consist of 94 active working areas and 43 termination working areas. In addition, there are 54 non-conventional working areas consisting of 44 active working areas and 10 termination working areas.

Field Manager Banyu Urip M Nurdin explained, currently oil production from the field was on average already above 200,000 barrels per day.

"Oil production from this field continues to rise and become one of the crutches of national oil production. We try to maintain the consistency of its production, "said Nurdin.

The oil field managed by the joint venture is owned by ExxonMobil Cepu Limited 45 percent, PT Pertamina EP Cepu 45 percent. And BUMD 10 percent. From this field, its contribution to ready-to-sell oil reaches 25 percent.

General Manager of PT Pertamina EP Asset IV, Didik Susilo explained that besides continuing to develop Cepu Block in Central Java, his side also developed Poleng Block in East Java to boost oil production.

IN INDONESIA

Biaya Produksi Minyak Bisa Bersaing

Rata-rata biaya produksi minyak mentah di Indonesia saat ini sebesar 18 dollar AS per barrel. Dengan harga minyak mentah dunia pada kisaran 50 dollar AS per barrel, biaya produksi minyak di Indonesia dinilai masih bersaing sehingga seharusnya tetap menarik bagi investor.

Pengawas internal Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), Taslim Z Yunus, mengatakan, pihaknya berusaha menahan laju penurunan produksi minyak nasional. Ada sejumlah strategi jangka pendek agar produksi minyak bisa bertahan. 

”Ada tantangan ketika harga minyak mentah jatuh. Eksplorasi hanya bisa dilakukan perusahaan yang punya modal cukup besar. Untuk menyiasatinya, kami mendorong percepatan dari eksplorasi ke rencana pengembangan lapangan, kemudian mulai produksi,” ujar Taslim di Blora, Jawa Tengah, Sabtu (19/8).

Target produksi minyak siap jual pada akhir tahun ini 825.000 barrel per hari. Per Juli, realisasinya mencapai 794.000 barrel per hari, sedangkan pada Juni 801.000 barrel. Adapun rasio rasio cadangan minyak dan gas bumi (migas) pengganti (RRR) tahun ini ditargetkan 60 persen. Realisasi pada Juli sebesar 8,98 persen.

Taslim optimistis sampai akhir tahun RRR bisa mencapai 68 persen dengan melihat perkembangan di sejumlah lapangan minyak. Hal itu terkait dengan persetujuan rencana pengembangan (POD) dan rencana pengembangan lebih lanjut (POFD) beberapa lapangan minyak.

SKK Migas juga tetap memetakan wilayah kerja berdasarkan risiko. Wilayah kerja dengan risiko tinggi, seperti di wilayah pedalaman, wilayah yang minim fasilitas, atau di lepas pantai, akan ditawarkan kepada investor asing. 

”Kalau wilayahnya sudah pernah ada penemuan dan investasinya tidak terlalu besar, itu akan diprioritaskan untuk swasta nasional dan BUMN,” ujarnya.

Saat ini terdapat 86 wilayah kerja eksploitasi migas dengan tahap produksi 71 wilayah kerja dan tahap pengembangan 15 wilayah kerja. Adapun 137 wilayah kerja eksplorasi terdiri dari 94 wilayah kerja aktif dan 43 wilayah kerja terminasi, Selain itu, ada 54 wilayah kerja non-konvensional yang terdiri dari 44 wilayah kerja aktif dan 10 wilayah kerja terminasi.

Manajer Lapangan Banyu Urip M Nurdin menjelaskan, saat ini produksi minyak dari lapangan itu rata-rata sudah di atas 200.000 barrel per hari. 

”Produksi minyak dari lapangan ini terus meningkat dan menjadi salah satu penopang produksi minyak nasional. Kami berusaha menjaga konsistensi produksinya,” kata Nurdin.

Lapangan minyak yang dikelola dengan sistem kerja sama tersebut sahamnya dimiliki ExxonMobil Cepu Limited 45 persen, PT Pertamina EP Cepu 45 persen. dan BUMD 10 persen. Dari lapangan ini, kontribusinya untuk minyak siap jual mencapai 25 persen.

General Manager Asset IV PT Pertamina EP Didik Susilo menjelaskan, selain terus mengembangkan Blok Cepu di Jawa Tengah, pihaknya juga mengembangkan Blok Poleng di Jawa Timur untuk mendorong produksi minyak siap jual.

Kompas, Page-18, Monday, August 21, 2017

Pertamina Pertamina Immediately Work on Design of Tuban Refinery

PT Pertamina and its partner, Rosneft Oil Company, immediately worked on basic design design (BED) and detailed design (front end engineering design / FEED) for Tuban Refinery.

The Russian oil and gas company has agreed to share the burden of marketing the products produced by the refinery with a capacity of 300 thousand barrels per day (bpd).

President Director of Pertamia Elia Massa Manik said that his side and partners have finished re-negotiate the problem about the obligation of taking (offtake guaranty) products produced from Tuban Refinery. Initially, Pertamina had to bear the entire marketing burden of this refinery product. However, this has the potential to make the company's finances worse.

"Now we [Pertamina and Rosneft] have continued to work on the refinery, together willing to put the money to finish the BED and FEED," he said in Jakarta, Wednesday (16/8).

He explained that Pertamina and Rosneft did not have a problem about the agreement in building this Tuban refinery. However, in line with the progress of the refinery's work, Pertamina and Rosneft continue to seek opportunities for this cooperation to be even better. Because, if from the financial side declared bankrupt (default), this state-owned oil and gas company can not directly import crude oil and fuel oil (BBM) needed for Indonesia. However, this negotiation is guaranteed not to disrupt the timetable of the refinery.

"But the refinery is not tomorrow so. This study Tuban refinery until FEED alone budget of US $ 270 million. There is a timeframe, "said Massa Manik.

About the weight offtake guaranty is also being discussed with potential partners who will be towed to work on Bontang Refinery with a capacity of 300 thousand bpd. To this potential partner, Pertamina offers a joint marketing scheme for the sale of products produced from Bontang Refinery.

"So for Bontang Refinery, partner already exists. But being talking, can or not with the effort together that minus the name offtake guaranty, "he explained.

Pertamina Finance Director Arief Budiman added that the discussion about the guaranteed offtake is done with all partners and potential partners. For the improvement and capacity building project of Cilacap Refinery, which is being developed with Saudi Aramco, the company is still able to take most of the products.

For Tuban Refinery done with Rosneft, a comparison of how the treatment of petroleum and petrochemical products will be assessed.

"So it's not as simple as the offtake and not offtake. Like Premium, we are shortage, so we can offtake. If our diesel more production, so if offtake, can lose. This has been agreed, only lack of legality issues, "he said.

Not only renegotiating offtake guaranty, the company also shifts the refinery completion schedule. Initially, all refineries are targeted to be completed by 2023. However, the refinery's completion schedule is changed. Detailedly, Balikpapan Refinery operation schedule is changed from 2019 to 2021, Balongan Refinery from 2020 to 2021, Cilacap-Central Java and Tuban-East Java Refinery from 2021 to 2024, while Bontang-East Kalimantan and Dumai-Riau Refinery in 2025.

Director of Pertamina's Pertamina Processing and Petrochemical Center, Ardhy N Mokobombang, revealed that Balikpapan's refinery project, which is done by Pertamina, is now in the final of FEED study. After an internal review, the project can continue to the final investment decision (FID) stage.

In addition to this large project, Pertamina also worked on the Blue Sky Project Cilacap Refinery (PLBC). "PLBC's construction is targeted next year to enter mechanical completion," he said.

Refinery Treatment

Pertamina also conducts routine maintenance for all its refineries this year. Pertamina now manages six refineries, the details of the Dumai Refinery, Riau 170 thousand bpd, Plaju, Sumsel 118 thousand bpd, Cilacap, Central Java 348 thousand bpd, Balikpapan, East Kalimantan 260 thousand bpd, Balongan, Jabar 125 thousand bpd and Kasim, West Papua 10 Thousand bpd.

Pertamina Processing Director Toharso said the company is committed not to delay the maintenance of the refinery. Because the delay in maintenance schedules can cause a problematic refinery machine resulting in the termination of unplanned operations (unplanned shutdown). Therefore, it will conduct refinery maintenance alternately throughout this year.

In the first half of last year, the maintenance of two refineries was completed, namely Balongan Refinery and Balikpapan. Furthermore, the maintenance of the Dumai Refinery, which began on July 10, was completed on August 8th. Refinery performance becomes much better after treatment. Thus, in the remaining five months, Pertamina only completed the maintenance of two more refineries.

"The Cilacap refinery will turn around in September for its lube oil complex. Then at Balongan Refinery only add catalysts, "he said.

The maintenance of the next refinery period will be conducted by the company in 2018. With no maintenance delays, Toharso hopes there will be no unplanned shutdown of the refinery this year. Admittedly, in the last year, there have been 35 unplanned shutdown events in all the refineries it manages. One of the causes of unplanned shutdown is because of delays in maintenance activities.

He added, unplanned shutdown is actually allowed to happen, which is important not more than 3.6 days in a year for one machine unit. If it exceeds the limit, then unplanned shutdown will cut the production of fuel at the refinery. Each refinery has 12 engine units, including crude oil distillation unit (CDU), residual catalytic cracking (RCC), and others.

For this year, in addition to maintenance on schedule, it has prepared a number of steps to prevent the unplanned shutdown of the refinery. It will improve the reliability by improving the procurement of spare parts, which is accelerated and selected a good quality. If the spare part is ready, then the treatment can also be done faster. Then, it will ensure there is no work accident or environmental pollution.

IN INDONESIA

Pertamina Pertamina Segera Garap Desain Kilang Tuban

PT Pertamina dan mitranya, Rosneft Oil Company, segera mengerjakan desain dasar (basic engineering design/BED) dan desain rinci (front end engineering design/ FEED) untuk Kilang Tuban.

Perusahaan migas Rusia itu sudah sepakat ikut menanggung beban pemasaran produk yang dihasilkan kilang berkapasitas 300 ribu barel per hari (bph) ini.

Direktur Utama Pertamia Elia Massa Manik mengatakan, pihaknya dan mitra sudah selesai menego-siasikan ulang masalah soal kewajiban pengambilan (offtake guaranty) produk yang dihasilkan dari Kilang Tuban. Awalnya, Pertamina harus menanggung seluruh beban pemasaran produk kilang ini. Namun, hal ini berpotensi membuat keuangan perseroan memburuk.

“Sekarang kita [Pertamina dan Rosneft] sudah melanjutkan mengerjakan kilang, bersama mau menaruh uang untuk selesaikan BED dan FEED,” kata dia di Jakarta, Rabu (16/8).

Dijelaskannya, Pertamina dan Rosneft bukannya ada masalah soal kesepakatan dalam membangun Kilang Tuban ini. Namun, sejalan dengan progres pengerjaan kilang, Pertamina dan Rosneft terus mencari peluang agar kerja sama ini menjadi lebih baik lagi. Pasalnya, jika dari sisi keuangan dinyatakan bangkrut (default), perusahaan migas milik negara ini langsung tidak bisa mengimpor minyak mentah dan bahan bakar minyak (BBM) yang dibutuhkan untuk Indonesia.

Meski demikian, negosiasi ini dijaminnya tidak akan mengganggu jadwal pengerjaan kilang. 

“Tetapi kilang ini tidak besok jadi. Ini studi Kilang Tuban sampai FEED saja budget-nya US$ 270 juta. Ada timeframe,” ujar
Massa Manik.

Soal beban offtake guaranty ini juga sedang dibahas dengan calon mitra yang akan digandeng untuk mengerjakan Kilang Bontang berkapasitas 300 ribu bph. Kepada calon mitra ini, Pertamina menawarkan skema pemasaran bersama (joint marketing) untuk penjualan produk-produk yang dihasilkan dad Kilang Bontang.

“Jadi untuk Kilang Bontang, partner sudah ada. Tetapi sedang bicara, bisa atau tidak dengan effort bersama itu dikurangi yang namanya offtake guaranty,” jelasnya.

Direktur Keuangan Pertamina Arief Budiman menambahkan, diskusi soal offtake guaranty ini dilakukan dengan semua mitra dan calon mitra. Untuk proyek perbaikan dan peningkatan kapasitas Kilang Cilacap yang digarap bersama Saudi Aramco, perseroan masih mampu mengambil sebagian besar produk yang dihasilkan.

Untuk Kilang Tuban yang dikerjakan bersama Rosneft, akan dilihat perbandingan bagaimana perlakuan untuk produk bahan bakar dan petrokimia.

“Jadi tidak sesederhana offtake dan tidak offtake. Seperti Premium, kami shortage, jadi kami bisa offtake. Kalau diesel kami lebih produksinya, jadi kalau offake, bisa rugi. Ini sudah sepakat, hanya kurang masalah legalitas saja,” tutur dia.

Tidak hanya menegosiasi ulang offtake guaranty, perseroan juga menggeser jadwal penyelesaian kilang. Awalnya, seluruh kilang ditargetkan selesai pada 2023. Namun, kemudian jadwal penyelesaian kilang ini diubah. Rincinya, jadwal operasi Kilang Balikpapan berubah dari 2019 menjadi 2021, Kilang Balongan dari 2020 menjadi 2021, Kilang Cilacap dan Tuban dari 2021 menjadi 2024, sementara Kilang Bontang dan Dumai pada 2025.

Direktur Megaproyek Pengolahan dan Petrokimia Pertamina Ardhy N Mokobombang mengungkapkan, proyek Kilang Balikpapan yang dikerjakan sendiri oleh Pertamina, kini sudah pada final kajian FEED. Setelah dilakukan kajian ulang internal, maka proyek bisa berlanjut ke tahap keputusan investasi akhir (final investment decision/ FID).

Selain proyek besar ini, Pertamina juga menggarap Proyek Langit Biru Kilang Cilacap (PLBC). “Konstruksi PLBC ditargetkan tahun depan masuk mechanical completion,” ujarnya.

Perawatan Kilang

Pertamina juga melakukan perawalan rutin untuk seluruh kilang yang dimilikinya pada tahun ini. Pertamina kini mengelola enam kilang, rincinya Kilang Dumai, Riau 170 ribu bph, Plaju, Sumsel 118 ribu bph, Cilacap, Jateng 348 ribu bph, Balikpapan, Kalimantan Timur 260 ribu bph, Balongan, Jabar 125 ribu bph, dan Kasim, Papua Barat 10 ribu bph.

Direktur Pengolahan Pertamina Toharso menuturkan, perseroan berkomitmen tidak akan menunda perawatan kilang. Pasalnya, penundaan jadwal perawatan dapat menyebabkan mesin kilang bermasalah sehingga terjadi penghentian operasi tak terencana (unplanned shutdown). Karenanya, pihaknya akan melakukan perawatan kilang secara bergantian sepanjang tahun ini.

Pada semester pertama lalu, perawatan dua kilang sudah selesai, yakni Kilang Balongan dan Balikpapan. Selanjutnya, perawatan Kilang Dumai yang dimulai 10 Juli lalu, telah selesai pada 8 Agustus. Performa kilang menjadi jauh lebih baik setelah dilakukan perawatan. Sehingga, pada sisa lima bulan ini, Pertamina hanya merampungkan perawatan dua kilang lagi.

“Kilang Cilacap akan turn around (perawatan) pada September nanti untuk lube oil complex-nya. Kemudian di Kilang Balongan hanya menambah katalis saja," katanya.

Perawatan kilang periode berikutnya akan dilakukan perseroan pada 2018. Dengan tidak adanya penundaan perawatan, Toharso berharap tidak akan lagi terjadi unplanned shutdown kilang pada tahun ini. Diakuinya, pada tahun lalu, sempat terjadi 35 kejadian unplanned shutdown di seluruh kilang yang dikelolanya. Salah satu penyebab unplanned shutdown ini lantaran ditundanya kegiatan perawatan.

Dia menambahkan, unplanned shutdown sebenarnya dibolehkan terjadi , yang penting tidak lebih dari 3,6 hari dalam satu tahun untuk satu unit mesin. Jika melebihi batasan tersebut, maka unplanned shutdown bakal memangkas produksi BBM di kilang. Setiap kilang sendiri memiliki 12 unit mesin, diantaranya mesin crude oil distillation unit (CDU) , residual catalytic cracking (RCC), dan lainnya.

Untuk tahun ini, selain perawatan sesuai jadwal, pihaknya telah menyiapkan sejumlah langkah untuk mencegah terjadinya unplanned shutdown kilang. Pihaknya akan meningkatkan keandalan dengan memperbaiki pengadaan spare part, yakni dipercepat dan dipilih yang kualitasnya bagus. jika spare part siap, maka perawatan juga dapat dilakukan lebih cepat. Kemudian, pihaknya akan memastikan tidak ada kecelakaan kerja maupun pencemaran lingkungan.

Investor Daily, Page-9, Saturday, August 19, 2017

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