Reduction in red tape underway for oil and gas industry

The government continues to cut corners in order to try and garner more investment in the upstream oil and gas sector, which continues to struggle amid low global crude oil prices and a poor investment climate.

Once the darling of Indonesia’s energy sector, investment in the upstream oil and gas sector only reached US$ 3.96 billion in the first six months of the year, or 29 percent of the government’s end of year target of $13.8 billion.

The Energy and Mineral Resources Ministry’s oil and gas directorate general has high hopes that the sector will experience a turnaround in the near future as it plans to cut down on the lengthy bureaucracies that deter investment.

In addition to having successfully cut down the number of licenses required at the ministry to a mere six from 104, the directorate general also plans to fully digitalize the application process to expedite the licensing process and minimize the need for face to-face contact.

Newly-minted oil and gas director general Ego Syahrial said that one of the six required licenses, four of which are for the downstream oil and gas sector, already uses an online application system.

“We have already transferred one of the licensing processes into an online system, which is related to transportation and verification. We hope that the other five can be set up online by the end of this year,” he said at a press conference.

The directorate general is also working on cutting down the number of non-licenses and recommendations to a mere 26 from 50 by the end of the year. Moreover, it is currently revising ministerial decree No. 27/2008 on supporting businesses in the oil and gas industry in order to expedite certification for these businesses, which many have criticized as too complicated for certifications that only last three years.

In addition to cutting down on the certification issuance period to a maximum of five days, the certifications themselves will last for five years and companies willonly need to report once a year to the ministry rather than every six months. 

The ministry will also nix a requirement for these businesses to obtain a recommendation from an association. Declining global oil prices have caused a tightening of the purse strings from business players, with total investment in the oil and gas industry reaching $9.8 billion last year according to the Investment Coordinating Board (BKPM).

Investors contacted by The Jakarta Post seem unsure about the changes the government keeps churning out. Bobby Gafur Umar, the Indonesian Chamber of Commerce and lndustry (Kadin) deputy chairman for the oil and gas industry, said manywould look forward to an online system. 

“If [the system] is applicable and actually works then it will definitely be an improvement,” he said on Wednesday.

However, Bobby has also expressed doubts over the government’s flip-Hopping policies in an industry that requires decadeslong investments. Meanwhile, Gadjah Mada University (UGM) energy expert Fahmy Radhi said the existence of the gross split scheme was a significant hurdle faced by investors.

“It benefits 'the government since it no longer has the burden of cost recovery. However, it is not easily implemented since many investors are already comfortable with the existing PSC [production sharing contract] and now they have to suddenly face these changes,” he said.

Jakarta Post, Page-18, Monday, August 21, 2017

Rekind hopes to soon develop 11-year delayed pipeline

State engineering firm PT Rekayasa Industri (Rekind) is hopeful it will find offtakers for gas transmitted through the Cirebon-Semarang pipeline before the end of August so that it can begin construction next year for a gas transmission project that has been delayed for 11 years.

In 2006, Rekind won the tender to develop the Cirebon- Semarang facility expected to transmit 350 million standard cubic feet per day (mmscfd) of gas through a pipeline spanning 255 kilometers across East Java and West Java provinces.

As of today Rekind has yet to kick off the construction process as there has been no guarantee of a gas supply or offtakers, resulting in the Downstream Oil and Gas Regulatory Agency (BPH Migas) setting Sept. 15 as the deadline for the company to decide if it wants to continue with the project.

To help Rekind realize its commitment, the Energy and Mineral Resources Ministry will set up a meeting between the company and prospective gas offtakers from West Java on Aug. 21 and ones from Central Java four days later.

“Many industry players from West Java and Central Java need the gas. So we will approach them so that we can get letters of intent from or even sign memorandums of understanding with them to ensure there will be gas offtakers for this project,” Rekind strategy development and risk management director Yanuar Budi Norman said recently

Yanuar said that his side would need to find committed offtakers for at least 200 mmscfd of gas to make the Cirebon-Semarang pipeline project, which will cost around US$ 400 million, economically feasible. Then, Rekind will report results of the meetings to the ministry on Aug. 28 and to BPH Migas on Sept. 15.

If everything goes as expected, Rekind will reassess the feasibility of the project within six months. After that, it will jointly construct the pipeline in March or April next year along with PT Pertamina Gas (Pertagas), a subsidiary of state-owned energy company Pertamina. The construction process is expected to be completed within 33 months.

Rekind expects it will hold a majority stake of at least 60 percent in the project, while the remaining 40 percent will be controlled by Pertagas.

About 90 percent of the Cirebon-Semarang pipeline will be constructed on the right-of-way (ROW) owned by state-owned railway company PT Kereta Api Indonesia (KAI). 

“We will rent the ROW from PT KAI and acquire some plots of land for the remaining 10 percent of the pipeline,” Yanuar said.

However, one thing that is still in limbo is the source of gas to be transmitted through the Cirebon- Semarang pipeline. Yanuar said the ministry would help to find the gas supply and was still reviewing several options, including the use of liquefied natural gas (LNG) sourced from the Bontang refinery in East Kalimantan. That way the LNG would be regasified first before being transmitted through the pipeline, he added.

Energy and Mineral Resources Minister Ignasius Jonan previously said it was possible for Rekind to use LNG, but that the most important thing was to ensure the affordability of the gas.

Jakarta Post, Page-18, Monday, August 21, 2017

Pertamina EP Boost Production

Poleng Well N2 ready to be drilled

 After carrying out some technical and non technical preparations, PT Pertamina EP Asset 4 Poleng Field operating around the East Java Sea region is ready to carry out offshore drilling.

"Currently the preparation process has reached 95%. Currently the ENSCO 67 Rig that we will use for drilling has been carried out a thorough inspection. Furthermore, the platform for drilling N2 wells will be prepared further and hope next week at the end of August 2017 can be done Tax ", said Didik Susilo, Asset 4 General Manager of PT Pertamina EP

 The well to be drilled is named Poleng N2 or CW-12H well which has the surface coordinate X: 708,283.73; Y: 9259.346.09.

"If all the preparations went well, the drilling activities will begin in late August 2017 with an estimated work duration of 45 days with a target depth of 9,000 ft and an estimated cost of USD 15 Million," Didik explained.

 Didik added that through drilling activities is expected to produce 700 barrels of oil per day and 1.2 million cubic feet of gas per day. The drilling also aims to add hydrocarbon absorption points in the CW and DW areas.

 Didik also said that Asset 4 is one of the most complete assets due to in addition to having oil fields as well as Gas Production Center CPP Gundih, CPP Donggi and CPP Matindok. Then in Asset 4 there is also a field on land and offshore like the one in this Field Poleng. Field Poleng went to PT Pertamina EP about 4 years ago.

"After running for about 4 years with a pretty good production level, we are now preparing a bold step by drilling. And until now the team of Asset 4 Poleng Field is very optimistic with the preparation of drilling of the N2 Poly ", he said.

 Meanwhile, the performance of PT Pertamina EP Asset 4 as of July 31, 2017 showed a pretty good performance. For oil production reached 13.187 BOPD higher than target of 12,867 BOPD. And for gas production reached 179.07 MMSCFD, higher than the target of 178.40 MMSCFD.

"We are still striving to meet the targets set by the management, therefore we ask for support from all stakeholders, so that our operations, especially drilling of Poleng N2 and other operations are fully supported, so we get the optimal results," said Didik Susilo.

IN INDONESIA

Pertamina EP Pacu Produksi

Sumur Poleng N2 Siap Dibor

 Setelah melaksanakan beberapa persiapan baik teknis dan non teknis, PT Pertamina EP Asset 4 Poleng Field yang beroperasi di sekitar wilayah Laut Jawa Bagian Timur tersebut siap melaksanakan pemboran perdana lepas pantai.

“Saat ini proses persiapan sudah mencapai 95%. Saat ini Rig ENSCO 67 yang akan kami gunakan untuk melakukan pemboran telah dilakukan inspeksi menyeluruh. Selanjutnya platform untuk pemboran sumur N2 ini akan dipersiapkan lebih lanjut dan harapannya minggu depan di akhir bulan Agustus 2017 sudah bisa dilakukan Tajak", ujar Didik Susilo, Asset 4 General Manager PT Pertamina EP

 Sumur yang akan dibor bernama Poleng N2 atau sumur CW-12H yang memiliki koordinat permukaan X : 708,283.73 ; Y : 9.259.346,09. 

“Apabila semua persiapan berjalan lancar, kegiatan pemboran akan mulai dilaksanakan akhir Agustus 2017 dengan durasi pekerjaan estimasi mencapai 45 hari dengan target kedalaman mencapai 9.000 ft dan perkiraan biaya mencapai USD 15 Juta”, jelas Didik.

 Didik menambahkan bahwa melalui kegiatan pemboran ini diharapkan mampu menghasilkan 700 Barel Minyak Per Hari dan 1,2 Juta Kaki Kubik Gas Per Hari. Selain itu pemboran ini juga bertujuan untuk menambah titik serap hidrokarbon di area CW dan DW.

 Didik juga mengatakan bahwa Asset 4 merupakan salah satu asset yang paling lengkap dikarenakan selain memiliki lapangan minyak juga Pusat Produksi Gas yaitu CPP Gundih, CPP Donggi dan CPP Matindok. Kemudian di Asset 4 juga ada lapangan di darat serta di lepas pantai seperti yang ada di Poleng Field ini. Poleng Field masuk ke PT Pertamina EP kurang lebih 4 tahun yang lalu.

“Setelah berjalan kurang lebih 4 tahun dengan tingkat produksi yang cukup bagus, kini kami mempersiapkan langkah yang cukup berani dengan melaksanakan pemboran. Dan sampai saat ini tim Asset 4 Poleng Field sangat optimis dengan persiapan pemboran Poleng N2 tersebut”, ujarnya.

 Sementara itu, kinerja PT Pertamina EP Asset 4 per 31 Juli 2017 menunjukkan kinerja yang cukup bagus. Untuk produksi minyak mencapai 13,187 BOPD lebih tinggi dari target sebesar 12,867 BOPD. Dan untuk produksi gas mencapai 179,07 MMSCFD, lebih tinggi dari target sebesar 178,40 MMSCFD.

“Kami masih terus berupaya memenuhi target yang telah ditetapkan oleh manajemen, karena itu kami memohon dukungan dari seluruh stakeholder, agar upaya operasi kami terutama pemboran Poleng N2 dan kegiatan operasi lainnya mendapatkan dukungan penuh, sehingga kami memperoleh hasil yang optimal”, kata Didik Susilo. 

Duta Masyarakat, Page-16, Monday, August 21, 2017

ExxonMobil Touch the Highest Point

Crude oil production from Banyu Urip Field, Cepu Block has reached 201,000 barrels per day or 24.36 percent of the national lifting target of 825,000 barrels per day. Currently, oil production from one of Indonesia's largest oil and gas fields is at its highest peak since its first black burst in 2015 by 85,000 barrels per day (bpd).

Banyu Urip Field Production in 2015 increased to 165,000 bpd, then increased again to 185,000 bpd earlier this year. PT ExxonMobil Cepu Limited becomes operator of oil and gas block located in Bojonegoro, East Java.

The increase of Banyu Urip oil production from 185,000 bph to 201,000 bpd was realized after the Environmental Impact Assessment (AMDAL) proposed by the US oil and gas company was approved by the Ministry of Environment and Forestry at the end of July 2017.

ExxonMobil proposed an amdal to raise oil production to 200,000 bpd by March 2017. Through the EIA permit, ExxonMobil obtained the blessing to drill from Banyu Urip to 220,000 bpd. Vice President of Public and Government Affairs ExxonMobil Indonesia Erwin Maryoto said that oil production from Banyu Urip is now above 200,000 bpd.

"CPF [processing facility center] Banyu Urip initially only 185,000 bpd and amdal may be up to 220,000 bpd. Currently, [production] has more than 200,000 bpd, "he said

In Cepu Block, ExxonMobil Cepu Ltd. Holds 20.5% share, Ampolex 24.5%. PT Pertamina EP Cepu 45%, and BUMD 10%. The oil from Banyu Urip Field will be channeled through a 95 km pipe to floating storage & offloading (FSO) Rang Rimang located in the Java Sea.

Erwin explained that in Banyu Urip there are 45 wells consisting of 30 production wells and 15 injection wells (water and gas). The additional production is proposed by ExxonMobil Cepu because of the potential increase of recoverable reserves from 450 million barrels to 725 million barrels.

According to him, Banyu Urip also produces natural gas, but is relatively small. The gas is used to fuel gas power plants for electricity needs in the oil and gas working area. He said, gas from Banyu Urip contains a lot of sulfur and carbon dioxide so that only a small part that can be utilized.

CHEAPEST CHARGE

In the meantime, the cost of oil production from Banyu Urip Field is only US $ 2.4 per barrel, the cheapest in Indonesia. Based on data from SKK Migas, the average cost of oil production in the country is around US $ 18 per barrel.

Erwin said, the low cost of oil production in Banyu Urip caused by several things. First, Banyu Urip is a new field of production. Secondly, the processing facilities in Banyu Urip have no interruption (shutdown) so that the operating costs are low. Third, the location of the oil and gas wells are closer together so it is more efficient.

Meanwhile, the cost of oil production coupled with depreciation cost in Banyu Urip is also still below US $ 10 per barrel. With current crude oil prices in the range of US $ 50 per barrel, oil production from Banyu Urip is still very profitable.

In Indonesia, ExxonMobil only operates the Cepu Block. The giant US oil and gas company Serikta has just returned East Natuna Block because it is considered not economical enough. However, ExxonMobil continues to develop other oil and gas fields in the Cepu Block, such as Kedung Keris Field, Alas Tua West, East Alas, Giyanti, and other fields.

Erwin asserted, the US-based oil and gas company will continue to look for other opportunities to invest in the country. Meanwhile, Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) acknowledged that investor interest is still low on the auction of oil and gas working area.

Internal Inspector of SKK Migas Taslim Z. Yunus explained that his side together with the Ministry of Energy and Mineral Resources (ESDM) will meet one by one big investors directly to work on oil and gas blocks in Indonesia.

We will offer [oil and gas block auctions] to large companies with good finance so seriously developing oil and gas blocks. There are at least 10 investors that we will approach, "he said. In addition to the quiet of the auction of oil and gas working area, exploration activities in the last 3 years also fell quite drastically.

ExxonMobil Working Area In Cepu - Central Java

IN INDONESIA

ExxonMobil Sentuh Titik Tertinggi

Produksi minyak mentah dari Lapangan Banyu Urip, Blok Cepu telah mencapai 201.000 barel per hari atau 24,36% dari target lifting nasional sebanyak 825.000 barel per hari. Saat ini, produksi minyak dari salah satu ladang migas terbesar di Indonesia itu berada pada puncak tertingginya sejak semburan cairan hitam pertamanya pada 2015 sebanyak 85.000 barel per hari (bph).

Produksi Lapangan Banyu Urip pada 2015 meningkat menjadi 165.000 bph, kemudian meningkat lagi menjadi 185,000 bph pada awal tahun ini. PT ExxonMobil Cepu Limited menjadi operator blok migas yang berlokasi di Bojonegoro, Jawa Timur itu.  

Peningkatan produksi minyak Banyu Urip dari 185.000 bph menjadi 201.000 bph itu direalisasikan setelah Analisis Mengenai Dampak Lingkungan (amdal) yang diajukan perusahaan migas asal Amerika Serikat itu disetujui oleh Kementerian Lingkungan Hidup dan Kehutanan pada akhir Juli 2017. 

ExxonMobil mengajukan amdal untuk menaikkan produksi minyak ke 200.000 bph pada Maret 2017. Melalui izin amdal itu, ExxonMobil memperoleh restu untuk mengebor minyak dari Banyu Urip hingga 220.000 bph. Vice President Public and Government Affairs ExxonMobil Indonesia Erwin Maryoto mengatakan bahwa produksi minyak dari Banyu Urip saat ini sudah di atas 200.000 bph.

“CPF [pusat fasilitas pengolahan] Banyu Urip awalnya hanya 185.000 bph dan amdal boleh sampai 220.000 bph. Saat ini, [produksi] sudah lebih dari 200.000 bph,” ujarnya

Di Blok Cepu, ExxonMobil Cepu Ltd. memegang saham 20,5%, Ampolex 24,5%. PT Pertamina EP Cepu 45%, dan BUMD 10%. Minyak dari Lapangan Banyu Urip akan disalurkan melalui pipa sepanjang 95 km menuju penyimpanan minyak terapung (floating storage & offloading/FSO) Gagak Rimang yang terletak di Laut Jawa.

Erwin menjelaskan bahwa di Banyu Urip terdapat 45 sumur terdiri atas 30 sumur produksi dan 15 sumur injeksi (air dan gas). Penambahan produksi diusulkan ExxonMobil Cepu karena naiknya potensi cadangan yang bisa diangkat (recoverable reserve) dari semula 450 juta barel menjadi 725 juta barel.

Menurutnya, Banyu Urip juga menghasilkan gas bumi, tetapi relatif kecil. Gas tersebut digunakan untuk bahan bakar pembangkit listrik tenaga gas untuk kebutuhan listrik di wilayah kerja migas tersebut. Dia menuturkan, gas dari Banyu Urip mengandung banyak sulfur dan karbondioksida sehingga hanya sebagian kecil saja yang bisa dimanfaatkan.

BIAYA TERMURAH

Sememara itu, biaya produksi minyak dari Lapangan Banyu Urip hanya US$ 2,4 per barel, termurah di lndonesia. Berdasarkan data SKK Migas, rerata biaya produksi minyak di Tanah Air sekitar US$ 18 per barel.

Erwin menuturkan, rendahnya biaya produksi minyak di Banyu Urip disebabkan oleh beberapa hal. Pertama, Banyu Urip merupakan lapangan yang baru berproduksi. Kedua, fasilitas pemprosesan di Banyu Urip tidak ada gangguan (shutdown) sehingga biaya operasi rendah. Ketiga, lokasi sumur migas saling berdekatan sehingga lebih efisien.

Sementara itu, biaya produksi minyak ditambah dengan biaya depresiasi di Banyu Urip juga masih di bawah US$ 10 per barel. Dengan harga minyak mentah saat ini di kisaran US$ 50 per barel, produksi minyak dari Banyu Urip masih sangat menguntungkan.

Di Indonesia, ExxonMobil hanya mengoperasikan Blok Cepu. Perusahaan migas raksasa asal Amerika Serikta itu baru saja mengembalikan Blok East Natuna karena dianggap tidak cukup ekonomis. Namun, ExxonMobil masih terus melakukan pengembangan lapangan migas lainnya di Blok Cepu, seperti Lapangan Kedung Keris, Alas Tua West, Alas Tua East, Giyanti, dan ladang lainnya.

Erwin menegaskan, perusahaan migas asal AS itu bakal terus mencari peluang lain untuk berinvestasi di Tanah Air. Sementara itu, Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mengakui bahwa minat investor masih rendah terhadap lelang wilayah kerja migas.

Pengawas lnternal SKK Migas Taslim Z. Yunus menjelaskan bahwa pihaknya Bersama dengan Kementerian Energi dan Sumber Daya Mineral (ESDM) bakal menemui satu per satu investor besar secara langsung untuk menggarap blok migas di Indonesia.

Kami akan menawarkan [lelang blok migas] kepada perusahaan besar yang memiliki finansial bagus sehingga serius mengembangkan blok migas. Setidaknya ada 10 investor yang akan kami dekati,” katanya.  Selain sepinya lelang wilayah kerja migas, kegiatan eksplorasi dalam 3 tahun terakhir juga turun cukup drastis.

Bisnis Indonesia, Page-34, Monday, August 21, 2017

ExxonMobil Injection US $ 100 Million in Kedung Keris

In 2019, ExxonMobil Cepu Limited's production will increase. Understandably, this company will operate Kedung Keris Field, in Cepu Block, East Java. Production from Kedung Keris will increase production of ExxonMobil Cepu which currently produces 200,000 barrels per day (bpd) from Banyu Urip Field.

Erwin, Maryoto, Public Affairs & Government Vice President of EXXonMobil Indonesia, targets Kedung Keris field production from one well to 10,000 barrels per day.

"Oil reserves there are around 20 million barrels," he said, last weekend.

To operate Kedung Keris Field, the company is preparing an investment of US $ 100 million. Exxon will not build an oil processing center or central processing facility in Kedung Keris. The company is making use of the existing oil processing center at Banyu Urip Field.

The distance between Kedung Keris Field and Banyu Urip Field reaches 16 kilometers (km). Exxon will only build pipelines to distribute the oil. Despite the minimal production, production from Kedung Keris Field is expected to increase the national oil production which has continued to decline.

If the production of Kedung Keris and Banyu Urip combined will result in production of 210,600 bpd. Indeed, earlier this year, Banyu Urip production is still 170,000 bpd. But a few months later EXXonMobil's oil production rose to above 200,000 bpd.

IN INDONESIA

ExxonMobil Suntik US$ 100 Juta di Kedung Keris  

Tahun 2019, produksi ExxonMobil Cepu Limited akan bertambah. Maklum, perusahaan ini akan mengoperasikan Lapangan Kedung Keris, di Blok Cepu, Jawa Timur. Produksi dari Kedung Keris itu akan menambah produksi ExxonMobil Cepu yang saat ini memproduksi 200.000 barel per hari (bph) dari Lapangan Banyu Urip.

Erwin, Maryoto, Vice President Public & Goverment affair EXXonMobil Indonesia, menargetkan, produksi Lapangan Kedung Keris dari satu sumur sebesar 10.000 barel per hari. 

"Cadangan minyak di sana sekitar 20 juta barel," ujarnya, akhir pekan lalu.

Untuk mengoperasikan Lapangan Kedung Keris, perusahaan ini menyiapkan investasi US$ 100 juta. Exxon tidak akan membangun pusat pengolahan minyak atau central processing facility di Kedung Keris. Perusahaan ini memlih memanfaatkan pusat pengolahan minyak yang sudah ada di Lapangan Banyu Urip.

Jarak antara Lapangan Kedung Keris dan Lapangan Banyu Urip mencapai 16 kilometer (km). Exxon hanya akan membangun saluran pipa untuk menyalurkan minyak tersebut. Meski produksi minim, produksi dari Lapangan Kedung Keris diharapkan mampu menambah produksi minyak nasional yang belakangan terus menurun.

Jika produksi dari Kedung Keris dan Banyu Urip digabungkan akan menghasilkan produksi 210.600 bph. Memang, awal tahun ini, produksi Banyu Urip masih 170.000 bph. Tapi beberapa bulan kemudian produksi minyak EXXonMobil naik menjadi di atas 200.000 bph.

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

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