The ONWJ portion rises drastically

The Government provides additional significant revenue share for PT Pertamina Hulu Energi Offshore North West Java in the ONWJ Block. The offshore oil and gas block located on the north coast of West Java implements a gross split scheme signed on 18 January 2017.

In the gross split scheme, the initial share (base), for petroleum is 57% of the state, while 43% of the contractor's share. For natural gas of 52% of the state and 48% of the contractors.

In the ONWJ Block share-sharing contract, the final profit-sharing scheme is for the government 47.5% oil and 52.5% of the contractor's share. For gas, 57.5% of the government and 62.5% of contractors.

However, the government is currently increasing its revenue share for PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), as the ONWJ Block operator, so it is quite a drastic increase. Currently, the operator gets a 73.5% split share for oil and 81% for natural gas.

Additional revenue-sharing is gained and progressive revenue-sharing is attributed to oil price factors and cumulative production. For the oil price factor, with an average of US $ 45 to US $ 50 per barrel, the oil structure gets an additional profit of 5% and 7.5% gas.

The additional split from cumulative oil and gas production is 3% each. In addition, it also received additional from the Minister of Energy and Mineral Resources discretion of 5%.

"Total split for PHE ONWJ, oil 73.5% status until the end of 2017, gas 81%," said President Director of PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi.

According to him, the profit sharing will be in effect until the end of 2017. Meanwhile, the oil price and cumulative factor of production will change as it enters 2018. Despite the changes and still will change due to several factors, it does not need to amend the contract because since the signing has been defined factors - factors that affect split change.

"So it has been defined from the beginning. There is no need for an amendment every year, "he said.

In addition, for the 10% participation share offer to BUMD still in process. Because, since getting a contract extension, 100% of ONWJ Block is now controlled by PHE ONWJ.

"For PI 10% BUMD is currently on progress," he said.

Regardless, the government has not set the tax treatment on the gross profit sharing contract.

CAPITAL SHOPPING

After obtaining additional profit-sharing, PHE ONWJ is targeting this year's capital expenditure of US $ 400 million with the addition of contractor's share through the scheme of production sharing contract.

Mount said that with the increase of revenue share, it is targeting additional investment. PHE ONWJ's capital expenditure this year is targeted to reach US $ 400 million.

According to PHE ONWJ will conduct drilling of six wells for development and improvement of production facilities. Based on the contract signed in January 2018, investment commitments in the first 3 years amounted to US $ 82.3 million and US $ 8.5 billion over the 20-year contract period.

"Target capex [capital expenditure] 2017 US $ 400 million."

An energy observer from Trisakti University Pri Agung Rakhmanto said that in the draft regulation on gloss split taxation it is estimated that it will only regulate the tax facilities as regulated in Goverment Regulation 27/2017 on the Refundable Operating Costs and the Treatment of Income Tax in Upstream Oil and Gas.

The amount of tax percentage will make the contract unattractive to investors. Moreover, the government is offering several working areas through auction schemes and direct offers.

IN INDONESIA

Porsi ONWJ Naik Drastis

Pemerintah memberikan Tambahan bagi hasil cukup signifikan bagi PT Pertamina Hulu Energi Offshore North West Java dalam pengeloaan Blok ONWJ. Blok minyak dan gas bumi lepas pantai yang berlokasi di pantai utara Jawa Barat itu menerapkan skema bagi hasil kotor (gross split) yang ditandatangani pada 18 Januari 2017. 

Dalam skema gross split, bagi hasil awal (basis), untuk minyak bumi sebesar 57% bagian negara , sedangkan 43% bagian kontraktor. Untuk gas bumi sebesar 52% bagian negara dan 48% bagian kontraktor.

Dalam kontrak bagi hasil gross split Blok ONWJ, skema final bagi hasil yang ditetapkan adalah untuk minyak 47,5% bagian pemerintah dan 52,5% bagian kontraktor. Untuk gas, 57,5% bagian pemerintah dan 62,5% bagian kontraktor.

Namun, saat ini pemerintah menambah bagi hasil bagi PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), sebagai operator Blok ONWJ, sehingga naik cukup drastis. Saat ini, operator mendapatkan porsi split sebesar 73,5% untuk minyak dan 81% untuk gas bumi.

Tambahan bagi hasil itu diperoleh dan bagi hasil progresif yang dikaitkan dengan faktor harga minyak dan kumulatif produksi. Untuk faktor harga minyak, dengan rata-rata sebesar US$ 45 sampai US$ 50 per barel, struktur minyak mendapat tambahan bagi hasil sebesar 5% dan gas 7,5%.

Tambahan split dari kumulatif produksi minyak dan gas masing-masing sebesar 3%. Selain itu, pihaknya pun mendapat tambahan dari diskresi Menteri Energi dan Sumber Daya Mineral sebesar 5%.

“Total split buat PHE ONWJ, oil 73,5% status sampai akhir 2017, gas 81%,” kata Presiden Direktur PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi.

Menurutnya, bagi hasil tersebut akan berlaku hingga penghujung 2017. Sementara itu, untuk faktor harga minyak dan kumulatif produksi akan berubah saat memasuki 2018. Kendati mengalami perubahan dan masih akan berubah karena beberapa faktor, pihaknya tidak perlu melakukan amendemen kontrak karena sejak penandatanganan sudah didefinisikan faktor-faktor yang memengaruhi perubahan split.

“Jadi sudah di-defined dari awal. Tidak perlu ada amendemen setiap tahun,” katanya.

Selain itu, untuk penawaran saham partisipasi 10% kepada BUMD masih berproses. Pasalnya, sejak mendapat perpanjangan kontrak, 100% saham Blok ONWJ kini dikuasai PHE ONWJ. 

“Untuk PI 10% BUMD saat ini sedang on progress," katanya.

Terlepas dari itu, pemerintah belum mengatur perlakuan perpajakan pada kontrak bagi hasil kotor.

BELANJA MODAL

Setelah mendapatkan tambahan bagi hasil, PHE ONWJ menargetkan belanja modal tahun ini sebesar US$ 400 juta dengan penambahan bagi hasil kontraktor melalui skema kontrak bagi hasil kotor.

Gunung mengatakan bahwa dengan bertambahnya bagi hasil, pihaknya menargetkan penambahan investasi. Belanja modal PHE ONWJ pada tahun ini ditargetkan bisa menyentuh US$ 400 juta.

Menurutnya PHE ONWJ akan melakukan pengeboran enam sumur pengembangan dan perbaikan fasilitas produksi. Berdasarkan kontrak yang diteken pada Januari 2018, komitmen investasi pada 3 tahun pertama sebesar US$ 82,3 juta dan US$ 8,5 miliar selama masa kontrak 20 tahun. 

“Target capex [belanja modal] 2017 US$ 400 juta."

Pengamat energi dari Universitas Trisakti Pri Agung Rakhmanto mengatakan bahwa dalam draf peraturan tentang perpajakan gloss split itu diperkirakan hanya akan mengatur tentang fasilitas perpajakan seperti yang diatur dalam Peraturan Pemerintah No. 27/2017 tentang Biaya Operasi yang Dapat Dikembalikan dan Perlakuan PPh di Hulu Migas.

Besarnya persentase pajak akan membuat kontrak tersebut tidak menarik bagi investor. Apalagi, pemerintah sedang menawarkan beberapa wilayah kerja melalui skema lelang dan penawaran langsung. 

Bisnis Indonesia, Page-32, Tuesday, August 22, 2017

Gas Production Trends Continue to Soar

The government targets gas production in 2018 to be 1.19 million barrels to 1.23 million barrels of oil equivalent. While oil production only amounted to 771,000 barrels-815,000 barrels. Gas production trends higher than this oil production will last until 2025. This is because several major projects will start production.

Head of Program and Communications Division of Upstream Oil and Gas Special Unit (SKK Migas) Wisnu Prabawa Taher says, gas production will be higher than oil by 60% by 2025 because some national strategic projects start production.

"From the new Jangkrik field on stream in May 2017, Tiung-Biru Jambaran Field, Tangguh Train 3 Block, Masela Block and Deepwateer Development Chevron Indonesia," he said.

For information, the Jangkrik Field gas production, Muara Bakau Block is targeted to reach 450 mmscfd to 600 mmscfd. Then Blok Indonesia Deepwater Development Gehem Field 420 mmscfd, Gendalo Field 700 mmscfd, Masela Block between 7.5 Milllion tonnes per year (MTPA) - 9,5 MTPA. And Tiung Biru Jambaran Field according to plan of development (POD) reached 227 mmscfd, while peak production reached 315 mmscfd.

Director General of Oil and Gas ESDM Ministry Ego Syahrial said gas production until August 15, 2017 amounted to 7,577 mmscfd.

"Most of the production comes from four large KKKS," he said.

The four are Total E & P lndonesie 1,464 mmscfd, BP Berau is 1,150 mmscfd and PT Pertamina reaches 996 mmscfd. The last of ConocoPhilips in Grissik reached 962 mmscfd.

IN INDONESIA

Tren Produksi Gas Terus Membubung

Pemerintah menargetkan, produksi gas pada tahun 2018 sebesar 1,19 juta barel sampai 1,23 juta barel setara minyak. Sedangkan produksi minyak hanya sebesar 771.000 barel-815.000 barel. Tren produksi gas lebih tinggi dibandingkan produksi minyak ini akan berlangsung sampai tahun 2025. Hal ini karena beberapa proyek besar akan mulai produksi.

Kepala Divisi Program dan Komunikasi Satuan Kerja Khusus Hulu Minyak dan Gas Bumi (SKK Migas) Wisnu Prabawa Taher bilang, produksi gas akan lebih tinggi dari minyak sebesar 60% di tahun 2025 lantaran beberapa proyek strategis nasional mulai produksi. 

"Dari lapangan Jangkrik baru on stream Mei 2017, Lapangan Jambaran Tiung-Biru, Blok Tangguh Train 3, Blok Masela,dan Indonesia Deepwateer Development Chevron," katanya.

Sebagai informasi, produksi gas Lapangan Jangkrik, Blok Muara Bakau ditargetkan mencapai 450 mmscfd hingga 600 mmscfd. Lalu Blok Indonesia Deepwater Development Lapangan Gehem 420 mmscfd, Lapangan Gendalo 700 mmscfd, Blok Masela antara 7,5 Milllion tonnes per year (MTPA) - 9,5 MTPA. Dan Lapangan Jambaran Tiung Biru sesuai plan of development (POD) mencapai 227 mmscfd, sedangkan produksi puncak mencapai 315 mmscfd.

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Ego Syahrial bilang, produksi gas hingga 15 Agustus 2017 sebesar 7.577 mmscfd. 

"Sebagian besar produksi tersebut berasal dari empat KKKS besar," katanya.

Keempatnya adalah Total E&P lndonesie 1.464 mmscfd, BP Berau 1.150 mmscfd dan PT Pertamina mencapai 996 mmscfd. Terakhir dari ConocoPhilips di Grissik mencapai 962 mmscfd.

Kontan, Page-18, Tuesday, August 22, 2017

Cepu Block Production 200 thousand barrels

Currently Cepu Block accounts for 25% of the national oil lifting target.

Crude oil production from Banyu Urip oil field in Cepu Block continues to show improvement. Last year production was still in the range of 160 thousand to 185 thousand barrels per day (bpd), while in August it has been able to reach 200 thousand bpd.

Vice President of Public and Government Affairs of Exxon Mobil Indonesia Erwin Maryoto said it is now getting an environmental impact analysis (amdal) to produce at 220 thousand bpd.

"The achievement of 200 thousand bpd means about 25% of the national lifting target," said Erwin Marwoto

Cepu Block is managed by Exxon Mobil with 45% ownership, Pertamina EP 45%, and BUMD 10%. The Banyu UriP oil and gas field is estimated to have reserves of 729 million barrels and has a management contract period of up to 2035.

The production of Cepu Block is indeed expected to have a bigger role in the decline of oil production from other blocks that have already existed. Rokan (Chevron), the largest oil contributor in the first quarter of 2017, produced only 230,000 bpd from 2014 at 264 thousand bpd.

Minister of Energy and Mineral Resources Ignasius Jonan while visiting the United States some time ago hoping that the production of Cepu Block could reach 300 thousand bpd.

Keeping Lifting

Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) assesses the role of Pertamina EP is very large to help maintain Indonesian oil lifting. This is because Pertamina EP controls the relatively large oil and gas blocks of other cooperation contractors.

"If you rely on a relatively small contractor, it will be more difficult. So indeed we hope in Pertamina EP to be able to increase production, "said Internal Supervisor SKK Migas, Taslim Z Yunus.

It must be admitted that oil and gas investment climate in Indonesia especially exploration activities in recent years is still low. This year, oil and gas investors will only drill 32 wells to seek new oil and gas potential.

"Whereas before 2014, at least per year reaches 100 wells," said Taslim.

The main cause of this is the low world crude oil prices that currently range below US $ 50 per barrel.

"Only investors who have money or who have funds from retained earnings will be able to explore," he said.

Therefore, it will make a number of efforts to convince investors in the oil and gas sector, between another approach personally (one on one).

"Next week at least 10 investors of the working area owners will be approached," he said.

Investing in this sector in Indonesia is still promising profit (margin) despite crude oil price around US $ 50 per barrel.

"There is still a margin because the average production cost per barrel of oil in Indonesia is US $ 18. In fact, some field owners in Indonesia are below US $ 10," he said.

IN INDONESIA

Produksi Blok Cepu 200 Ribu Barel

Saat ini Blok Cepu menyumbang 25% dari target lifting minyak nasional.

Produksi minyak mentah dari lapangan migas Banyu Urip di Blok Cepu terus menunjukkan peningkatan. Tahun lalu produksinya masih berada di kisaran 160 ribu hingga 185 ribu barel per hari (bph), sedangkan pada Agustus ini sudah dapat mencapai 200 ribu bph.

Vice President Public and Goverment Affairs Exxon Mobil Indonesia Eerwin Maryoto mengatakan pihaknya kini sudah mendapatkan analisis mengenai dampak lingkungan (amdal) untuk berproduksi di level 220 ribu bph.

“Pencapaian 200 ribu bph ini berarti sekitar 25% dari target lifing nasional," kata Erwin Marwoto

Blok Cepu dikelola Exxon Mobil dengan tingkat kepemilikan saham 45%, Pertamina EP 45%, dan BUMD 10%. Lapangan migas Banyu UriP diperkirakan memiliki cadangan 729 juta barel dan memiliki masa kontrak pengelolaan hingga 2035.

Produksi Blok Cepu ini memang diharapkan memiliki peran yang lebih besar di saat menurunnya produksi minyak dari blok-blok lain yang telah lebih dulu ada. Untuk diketahui, Blok Rokan (Chevron) yang menjadi penyumbang produksi minyak terbesar kini pada triwulan pertama 2017 hanya memproduksi 230 ribu bph dari sebelumnya di 2016 sebesar 264 ribu bph.

Menteri Energi dan Sumber Daya Mineral Ignasius Jonan saat berkunjung ke Amerika Serikat beberapa waktu lalu berharap agar produksi Blok Cepu bisa mencapai 300 ribu bph.

Menjaga Lifting

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menilai peran dari Pertamina EP sangat  besar untuk bisa membantu mempertahankan lifting minyak Indonesia. Hal itu karena Pertamina EP menguasai blok-blok migas yang relatif besar dari kontraktor kerja sama lainnya.

“Kalau mengandalkan kontraktor yang relatif kecil, akan lebih sulit. Jadi memang kita berharap pada Pertamina EP untuk bisa meningkatkan produksi,” ujar Pengawas Internal SKK Migas, Taslim Z Yunus.

Harus diakui iklim investasi migas di Indonesia khususnya kegiatan eksplorasi dalam beberapa tahun terakhir masih rendah. Pada tahun ini investor migas hanya akan mengebor 32 sumur untuk mencari potensi minyak dan gas baru.

“Padahal sebelum 2014, paling tidak per tahun mencapai 100 sumur," kata Taslim.

Penyebab utama hal itu ialah rendahnya harga minyak mentah dunia yang saat ini berkisar di bawah US$ 50 per barel.

“Hanya investor yang punya duit atau yang punya dana dari laba yang ditahan yang akan mampu melakukan eksplorasi,” katanya.

Oleh karena itu, pihaknya akan melakukan sejumlah upaya untuk meyakinkan para investor di sektor migas, antara lain pendekatan secara personal (one on one).

“Pekan depan setidaknya 10 investor pemilik wilayah kerja akan kita dekati,” katanya.

Berinvestasi di sektor ini di Indonesia masih menjanjikan profit (margin) meski harga minyak mentah sekitar US$50 per barel.

“Masih ada marginnya karena rata-rata biaya produksi per barel minyak di Indonesia itu US$ 18. Bahkan, beberapa pemilik lapangan di Indonesia ada yang di bawah US$ 10,” katanya.

Media Indonesia, Page-17, Monday, August 21, 2017

BPH Migas eyes Bp lt for one-fuel price policy

The Downstream Gil and Gas Regulatory Agency (BPH Migas) has proposed giving Pertamina Rp 1 trillion annually to ease the financial burden of the state-owned oil and gas firm in its quest to fully implement the one-fuel price policy Pertamina needs Rp 5 trillion (US$ 374,27 million) to sell subsidized Premium gasoline and Solar diesel fuel at Rp 6,450 per liter and Rp 5,150 per liter, respectively in 150 locations nationwide, including frontier, outermost and remote areas, known as the 3T regions. It has thus far covered only 22 locations, costing the firm Rp 300 billion in losses.

 The agency’s contribution would come from its annual non-tax revenue (PNBP) totaling Rp 1.2 trillion, BPH Migas head M. Fanshurullah Asa recently said. The PNBP comes from companies transporting or selling fuel or natural gas as stipulated in Government Regulation No. 1/2006.

“Within the past live years, BPH Migas only used about Rp 200 billion of its total PNBP each year. Consequently, the  remaining Rp 1 trillion was just recorded as additional state income,” Fanshurullah said. “So why don’t we use another Rp 1 trillion to help Pertamina develop the infrastructure needed for the one-price fuel policy?”

 The proposed funds from the agency may help Pertamina to expand the coverage of the policy which aims to cut down on the price disparity of fuel between regions across the sprawling archipelago of more than 17,000 islands.

 This year, it needs an estimated Rp 800 billion to support the policy adding to the burden of the energy giant, which last year struggled with financial woes caused by the government’s debt of Rp 22 billion from sales of subsidized 3-kilogram liquefied petroleum gas (LPG) canisters and subsidized Solar diesel as well as an additional Rp 8.4 trillion in debt from gasoline it supplied to the Indonesian Military (TNI) in 2014.

 The government planned to repay its debt from the TNl’s gasoline consumption in the revised 2017 state budget, while the reimbursement for LPG and solar subsidies is outlined in the 2018 budget.

 According to BPH Migas, the 150 locations targeted in the one fuel price policy cover 2,000 districts and 21,000 villages. The additional funds from the agency could be used to develop thousands of new sub-distributors in those locations, with each requiring an investment of between Rp 20 million and Rp 30 million, Fanshurullah said.

“Pertamina’s official gas stations will serve as hubs that supply fuel to sub-distributors there,” he said. The agency also expects the establishment of these sub-distributors to put illegal gasoline kiosks, locally known as “Pertamini,” out of business, particularly in 3T regions. These kiosks often sell fuel above regulated prices.

 To support the plans, the regulator plans to set a maximum profit margin of Rp 500 per liter for all fuel distributors and subdistributors. At present, the profit margin in Premium gasoline sales at gas stations stands at Rp 270 per liter.

“These Pertamini kiosks have actually helped distribute gasoline to many regions out of Pertamina’s reach. However, they are illegal and operate without a proper license,” Fanshurullah explained. 

“Therefore, the middle ground is to develop new sub-distributors that will operate under proper safety standards and regulated margins.”

 Fanshurullah said he expected BPH Migas to realize its plan to transfer a large amount of its revenue to Pertamina next year after first discussing the matter with the Energy and Mineral Resources Ministry and the House of Representatives.

 Pertamina president director Elia Massa Manik said he hoped the plan would materialize as soon as this year to help the firm reduce its mounting financial burdens.

“We are certainly pleased with an additional option to realize the one-price fuel policy One thing for sure is that we have committed to implementing it [the policy] in 150 locations by 2019,” Elia said.

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

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