S’pore gas deal to make PLN efficient

State electricity company PT Perusahaan Listrik Negara (PLN) is exploring the opportunity to make a gas swap deal with Singaporean energy companies Keppel Corporation and Pavilion Energy to simplify its supply chain and operate more efficiently.

PLN previously signed a memorandum of understanding with the two Singaporean firms to conduct a joint study for the development of several kinds of gas infrastructure, including storage and regasification facilities for liquefied natural gas (LNG) in and around the northern part of Sumatra.

This infrastructure will support the operations of PLN’s power plants in the region, including one with a capacity of 200 megawatts (MW) in Tanjung Pinang and another one with a capacity of 40 MW in Natuna, both in Riau Islands.

“In the initial design for the infrastructure development, we wanted to use LNG from the Bontang refinery [in East Kalimantan]. Then, there was a discussion over the possibility of a swap deal, in which we might be able to take the LNG from Singapore,” PLN corporate planning director Nicke Widyawati said on Wednesday

“The distance to transport the LNG from Singapore is shorter compared to shipments from Bontang. Hence, logically, the swap deal will reduce our logistics costs. However, we still have to review it further.”

In return, PLN will substitute the LNG cargo from its Singaporean partners with, the cargo produced in Bontang. Then, Keppel or Pavilion can use LNG from Bontang to support their operations in Indonesia or in other markets.

“The companies can decide for themselves where they will deliver the LNG from Bontang. But the most important thing is this swap deal has to lead to lower logistics costs for all parties,” said Supangkat Iwan Santoso, PLN’s procurement director.

PLN hinted that the fee to store, regasifi and transport LNG with facilities owned by Keppel and Pavilion might stand at US$3.80 per Million British Thermal Units (mmbtu).

As a comparison, PT Nusantara Regas, a joint venture between state energy companies Pertamina and PGN, sets a fee of $2 per mmbtu for its floating storage and re-gasification unit (FSRU) in West Java.

Meanwhile, Pertamina has set a price of $1.5 per mmbtu for its Arun LNG storage and regasification terminal in Aceh. The price for using these two facilities is lower, but they do not include shipping fees. On the other hand, Keppel and Pavilion can use small vessels to deliver the LNG from Singapore, which is located close to Riau Islands.

Now, PLN expects the government to further discuss and conclude the swap deal during a bilateral meeting between President Joko “Jokowi” Widodo and Singapore Prime Minister Lee Hsien Loong in Singapore on Thursday.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said the swap deal would encourage domestic LNG suppliers to become more competitive.

“We will assess the cost. If it’s cheaper, we will consider it,” Luhut said.

Previously, he said the government would buy LNG from Singapore to fuel several power plants, including plants in Nias, North Sumatra and Lhoksemauwe in Aceh. Satya Widya Yudha, the deputy chairman of House of Representatives Commission VII overseeing energy, also said "that such a deal, if realized, could lead to lower energy costs, which would eventually boost the country’s competitiveness and economic growth.

Satya Widya Yudha

The government recently launched the 2016-2030 roadmap for gas infrastructure development, estimated to require a total investment value of $48.2 billion. The government will need around 1,100 mmscfd of gas to generate 13,432 MW of electricity under its 35,000 MW program. This program is expected to increase the nation’s electricity reseiye margin to 30 percent by 2019.

Jakarta Post, Page-17, Thursday, Sept 7, 2017

Oil and Gas Industry Needs License Pruning

The reluctant attitude shown by the government has led to a decline in oil and gas exports in the last 20 years. The condition is accompanied by high needs that are not accompanied by adequate productivity. This is what causes Indonesia to be an importer of oil to cover domestic needs, "said Arif Gunawan, Secretary General of the Indonesian Geophysics Association (HAGI), in Media Gathering with Joint Operation Body Pertamina Petrochina East Java (JOB P-PEJ) in Banyuwangi on Wednesday (6/9).

According to him, the oil and gas sector can still be saved to become a strategic industry, one of them by providing stimulus by simplifying and cutting permit lines that reach hundreds of times.

"Exploration must be improved. That way, foreign exchange will rise. Therefore, this foreign exchange is driven by enhanced oil recovery (EOR) that can boost oil and gas production, "said Arif.

He added that currently many explorations are running alone. The problem is, exploration must be through permits that reach 373 scattered in 19 ministries and agencies. Clearly these complicated licensing matters make investors less likely to be lazy to explore the field.

In fact, to achieve ideal production must be increased 300 percent of existing production. While domestic oil production until 2016 ranges from 825-850 thousand barrels per day. The need reaches 1.5 to 1.6 million barrels per day.

"Our proposal should be increased by 500 percent. It is a safe number for imports to be suppressed, and optimize production of not less than 567,7 thousand barrels per day until 2025, "explained the former member of National Exploration Committee (KEN).

He said that the higher the dependence on oil imports, causing the weakening of the rupiah, eroding foreign exchange reserves, and burdening the trade balance.

Moreover, oil and gas production and demand in Indonesia is not comparable. Currently oil reserves in Indonesia until 2015 only 0.22 percent of the world's total oil reserves. The world's oil reserves are still controlled by Venezuela with a total of 17.54 percent, with production reaching 298 million barrels.

IN INDONESIA

Industri Migas Perlu Pemangkasan Perijinan

Sikap ogah-ogahan yang ditunjukkan pemerintah menyebabkan merosotnya ekspor migas dalam 20 tahun terakhir. Kondisi tersebut dibarengi dengan tingginya kebutuhan yang tidak diiringi produktivitas memadai. Hal ini yang menyebabkan Indonesia menjadi pengimpor minyak untuk menutupi kebutuhan dalam negeri," kata Arif Gunawan, Sekretaris Jenderal Himpunan Ahli Geofisika Indonesia (HAGI), dalam Media Gathering dengan Joint Operation Body Pertamina Petrochina East Java (JOB P-PEJ) di Banyuwangi, Rabu (6/9). 

Menurut dia, sektor migas masih bisa diselamatkan untuk menjadi industri strategis, salah satunya dengan memberi stimulus dengan mempermudah dan memangkas jalur perizinan yang mencapai ratusan kali.

“Eksplorasi harus ditingkatkan. Dengan begitu, devisa akan naik. Sebab, devisa ini digerakkan oleh enhanced oil recovery (EOR) yang bisa mendorong produksi migas,” ucap Arif.

Dia menambahkan, saat ini banyak eksplorasi yang berjalan sendiri. Masalahnya, eksplorasi harus melalui perizinan yang mencapai 373 yang tersebar di 19 kementerian dan lembaga. Jelas lika-liku perizinan yang rumit ini membuat investor cenderung malas melakukan eksplorasi lapangan.

Padahal, untuk mencapai produksi ideal harus ditingkatkan 300 persen dari produksi eksisting. Sementara produksi minyak dalam negeri hingga tahun 2016 berkisar 825-850 ribu barel per hari. Adapun kebutuhannya mencapai 1,5 hingga 1,6 juta barel per hari.

“Usulan kami harus dinaikkan hingga 500 persen. Itu angka aman agar impor bisa ditekan, dan mengoptimalkan produksi tidak kurang dari 567,7 ribu barel per hari hingga 2025 nanti,” jelas mantan anggota Komite Eksplorasi Nasional (KEN) itu.

Pihaknya menilai semakin tinggi ketergantungan terhadap impor minyak, menyebabkan meIemahnya nilai tukar rupiah, menggerus cadangan devisa, dan membebani neraca perdagangan.

Terlebih kebutuhan dan produksi migas di Indonesia tidak sebanding. Saat ini cadangan minyak di Indonesia hingga tahun 2015 hanya 0,22 persen dari total cadangan minyak dunia. Adapun cadangan minyak dunia masih dikuasai Venezuela dengan total 17,54 persen, dengan produksinya yang mencapai 298 juta barel. 

Radar Surabaya, Page-5, Thursday, Sept 7, 2017

Stop Oil Supply

Russia and China Supply Fuel to North Korea Every Year

Closing crude oil supply access to North Korea became a South Korean proposal for Korea's missile and nuclear program North stalled. However, Russia does not agree with the proposal. This sanction is considered not going to make North Korea deterred and obedient to world pressure. Russia is worried that people will become victims.

South Korean President Moon Jae-in presented this proposal to Russian President Vladimir Putin when they met on the sidelines of the East Economic Forum on Wednesday (6/9) in Vladivostok, Russia.

South Korea's presidential spokesman, Yoon Young-chan, was quoted by Yonhap news agency as saying, Putin objected fearing civilians and public services such as hospitals were affected by the sanctions. According to Yoon, Putin said Russia has been exporting at least 40,000 tons of oil per year to North Korea. The amount is not worth the supply of oil from China which reaches 520,000 tons of crude oil per year.

Last year, China also sent 96,000 tons of gasoline and at least 45,000 tons of diesel oil to North Korea. Seeing the size of China's oil supply to North Korea, British Defense Minister Michael Fallon considers Beijing to play an important role in the resolution of the crisis on the Korean Peninsula.

"China has a lot of things, not just influence, that can change North Korea's behavior," he said.

Prioritize dialogue

Putin also reminded Moon to prioritize political solutions due to heavier sanctions or pressure big over North Korea will not solve the problem.

"It is difficult to improve the situation without political and diplomatic instruments. There is no point in following the emotions alone, let alone suppressing and cornering North Korea, "Yoon quoted Putin as saying.

In addition to cutting oil access to North Korea, the UN Security Council is considering banning North Korea's textile exports, flight routes or halting oil supplies to governments and the military. Another alternative sanction is forbidding North Koreans from working abroad.

In addition, there are considerations to include high-ranking North Korean officials into the blacklist and freeze assets and impose travel ban sanctions. Putin doubts that any sanctions will be effective. Whatever the sanctions, North Korea will not willingly stop the missile and nuclear program

"We also condemn the North's actions, rejecting sanctions does not mean we agree," he said.

The world's concerns are groundless because, according to Japanese analysis, the North Korean-tested hydrogen bombs a few days ago weighed up to 160 kilotons. Previously weighed 120 kilotons. Japanese Defense Minister Itsunori Onodera showed the satellite imagery of the impact of the explosion that caused the landslide at the Punggyeri test site. From South Korea's observation, there is a radioactive outpour of the test.

IN INDONESIA

Stop Suplai Minyak

Rusia dan China Memasok Bahan Baker ke Korea Utara Setiap Tahun

Menutup akses suplai minyak mentah ke Korea Utara menjadi usulan Korea Selatan agar program rudal dan nuklir Korea Utara terhenti. Namun, Rusia tidak setuju dengan usulan itu. Sanksi ini dinilai tidak akan membuat Korea Utara jera dan patuh terhadap desakan dunia. Rusia khawatir justru rakyat akan menjadi korban.

Presiden Korsel Moon Jae-in mengajukan usulan ini kepada Presiden Rusia Vladimir Putin ketika mereka bertemu di sela-sela acara Forum Ekonomi Timur, Rabu (6/9), di Vladivostok, Rusia. 

Juru bicara kepresidenan Korsel, Yoon Young-chan, seperti dikutip kantor berita Yonhap, menyebutkan, Putin keberatan karena khawatir warga sipil dan layanan publik seperti rumah sakit terdampak oleh sanksi itu. Menurut Yoon, Putin menyampaikan, selama ini Rusia mengekspor minimal 40.000 ton minyak per tahun ke Korea Utara. Jumlah itu tidak sebanding dengan suplai minyak dari China yang mencapai 520.000 ton minyak mentah per tahun. 

Tahun lalu, China juga mengirim 96.000 ton bensin dan sedikitnya 45.000 ton minyak diesel ke Korut. Melihat besarnya suplai minyak China ke Korut, Menteri Pertahanan Inggris Michael Fallon menilai Beijing berperan penting dalam penyelesaian krisis di Semenanjung Korea. 

”China memiliki banyak hal, bukan hanya pengaruh, yang bisa mengubah perilaku Korea Utara,” ujarnya.

Utamakan dialog

Putin juga mengingatkan Moon untuk mendahulukan solusi politik karena sanksi-sanksi yang lebih berat atau tekanan besar atas Korut tak akan menyelesaikan masalah. 

”Sulit untuk memperbaiki situasi tanpa instrumen politik dan diplomatik. Tidak ada gunanya mengikuti emosi semata, apalagi menekan dan menyudutkan Korea Utara,” ucap Yoon mengutip pernyataan Putin.

Selain memutus akses minyak ke Korut, Dewan Keamanan PBB mempertimbangkan untuk melarang ekspor tekstil Korea Utara, rute penerbangan atau menghentikan suplai minyak ke pemerintah dan militer. Alternatif sanksi lain adalah melarang warga Korea Utara untuk bekerja di luar negeri. 

Selain itu, ada pertimbangan untuk memasukkan para pejabat tinggi Korea Utara ke dalam daftar hitam dan membekukan aset serta memberi sanksi larangan bepergian. Putin meragukan segala sanksi akan efektif. Apa pun sanksinya, Korea Utara tidak akan rela menghentikan program rudal dan nuklir 

" Kami juga mengecam tindakan Korut itu. Menolak sanksi bukan berarti kami setuju,” ujarnya.

Kekhawatiran dunia beralasan karena, menurut analisis Jepang, bom hidrogen yang diuji Korea Utara beberapa hari lalu memiliki berat hingga 160 kiloton. Sebelumnya diperkirakan beratnya 120 kiloton. Menteri Pertahanan Jepang Itsunori Onodera menunjukkan hasil citra satelit dampak ledakan yang menyebabkan tanah longsor di lokasi uji Punggyeri. Dari pengamatan Korea Selatan, terlihat ada curahan radioaktif dari uji itu.

Kompas, Page-10, Thursday, Sept 7, 2017

Socialization of Rimang Crow FSO for Glodok Fishermen

Dozens of fishermen from Glodok Village, Palang Subdistrict, Tuban District received a socialization about Floating Storage and Offloading (FSO) Crow Rang from Banyuurip Field Operator, Cepu Block, Exxon Mobil Cepu Limited (EMCL) at the local village hall on Wednesday (6/9). Socialization is given for the sake of maintaining security and safety together. Thus, fishermen are asked not to approach the FSO which is 23 Kilometers from the Tuban coastline more than 500 meters.

In the socialization, EMCL External Field Affairs Manager Dave A. Seta requested that fishermen participate in keeping together the National vital objects in the northern seas of the Cross. Therefore, the FSO produces more than 200 thousand barrels per day (BPH).

This achievement automatically makes Banyuurip production, accounting for 26 percent of national production. Thus, the existence of the oil can be used to build the region of Aceh to Irian Iaya.

"The sustainability of oil production must be maintained together, including fishermen who move around every day around the FSO," he said.

Meanwhile, Head of Glodok Village, Sujianto gave an appreciation to EMCL who reminded the fisherman about security and safety around Crow Rang. He is also grateful for the help of the construction of the sea moor. Separately, Chairman of HSNI Tuban, Faisol Rozi appealed the same thing.

"Fishermen should know that a 500-meter radius of the facility is a forbidden area where all types of ships are not allowed to pass, while a 1,250-meter radius from the forbidden zone is limited.

In restricted zones, ships may still pass but may not lower anchor or anchor. Because the division of this zone is regulated in Government Regulation (PP) No.5 of 2010 on navigation. We ask the fishermen to obey the government regulation is the suggestion, "he said.

It is known that to flow the processed oil from the Central Processing Facility (CPF) to the coast of Palang, Tuban, EMCL constructed a 72 km land pipe. Four valve houses are placed along the 20-inch diameter and insulated pipe line. From Palang Beach, Tuban District-East Java, the ground pipe is connected with underwater pipes along the 23 km to the mooring tower. The 1,200-tonne mooring tower is planted on the seabed at a depth of 33 meters.

IN INDONESIA

Sosialisasi FSO Gagak Rimang untuk Nelayan Glodok

Puluhan nelayan Desa Glodok, Kecamatan Palang, Kabupaten Tuban menerima sosialisasi tentang Floating Storage and Offloading (FSO) Gagak Rimang dari Operator Lapangan Banyuurip, Blok Cepu, Exxon Mobil Cepu Limited (EMCL) di balai desa setempat, Rabu (6/9). Sosialisasi tersebut diberikan demi menjaga keamaman dan keselamatan bersama. Sehingga, nelayan diminta tidak mendekati FSO yang berjarak 23 Kilometer dari bibir pantai Tuban lebih dari 500 meter.

Dalam sosialisasi itu Field Exsternal Affairs Manager EMCL, Dave A. Seta meminta, agar nelayan ikut menjaga bersama objek vital Nasional yang berada di laut utara Palang. Sebab, FSO tersebut menghasilkan jumlah produksi yang sudah lebih dari 200 ribu Barrel Per Hari (BPH). 

Capaian ini otomatis membuat produksi Banyuurip, menyumbang 26 persen dari produksi nasional. Sehingga, keberadaan minyak tersebut bisa digunakan untuk membangun wilayah Aceh sampai Irian Iaya.

"Keberlangsungan produksi minyak harus dijaga bersama, termasuk nelayan yang tiap harinya beraktivitas di sekitar FSO," katanya.

Sementara itu, Kepala Desa Glodok, Sujianto memberi apresiasi kepada EMCL yang mengingatkan nelayan soal keamanan dan keselamatan sekitar Gagak Rimang. Ia juga berterimakasih atas bantuan pembangunan tambat laut. Terpisah, Ketua HSNI Tuban, Faisol Rozi mengimbau hal serupa. 

"Nelayan harus tahu, radius 500 meter dari fasilitas tersebut merupakan area terlarang. Di zona tersebut semua jenis kapal tidak diperbolehkan melintas. Sedangkan, radius 1.250 meter dari zona terlarang itu menjadi wilayah terbatas.

Pada zona terbatas, kapal masih boleh melintas tapi tidak boleh menurunkan sauh atau jangkar. Karena pembagian zona ini diatur dalam Peraturan Pemerintah (PP) No.5 tahun 2010 tentang kenavigasian. Kami minta nelayan harus mentaati peraturan pemerintah tersebut sarannya," ujarnya.

Diketahui, untuk mengalirkan minyak yang diproses dari Fasilitas Pusat Pengelolan (Central Processing Fasility/CPF) menuju ke pantai Palang, Tuban, EMCL membangun pipa darat yang ditanam sepanjang 72 Km. Empat rumah katup ditempatkan di sepanjang jalur pipa berdiameter 20 inci dan berinsulasi tersebut. Dari Pantai Palang, Kabupaten Tuban-Jawa Timur, pipa darat tersambung dengan pipa bawah laut sepanjang 23 Km menuju menara tambat. Menara tambat sebesar 1.200 ton ditanam di dasar laut pada kedalaman 33 meter.

Harian Bangsa, Page-9, Thursday, Sept 7, 2017

Petronas Add 3 Production Wells

Petronas Carigali Indonesia Limited will soon be drilling two oil and gas wells in Bukit Tua Square, Ketapang Block to increase crude oil and 15,000 barrels per day to 20,000 barrels per day.

In addition, Petronas as the manager of the North Madura II Block also added one well for exploration. The Bukit Tua field is the largest upstream oil and gas project of Petronas in Indonesia. Investment in the oil and gas block reached US $ 800 million.

In Ketapang Block, Petronas becomes operator with 80% ownership. Meanwhile, 20% of the shares are held by PT Saka Ketapang Perdana, a subsidiary of PT Perusahaan Gas Negara Tbk.

Senior Maneger Corporate Affairs & Administration Petronas Carigali Indonesia Andiono Setiawan said that his office has installed drilling tool (rig) in Bukit Tua field recently.

The Malaysian company targets oil and gas wells to operate this year. From data from SKK Migas, the investment fund for the two wells reached US $ 80 million.

"The addition of two new wells aims to increase production from 15,000 BOPD [barrel oil per day] to 20,000 BOPD. Yesterday, rig tools have been imported to the location of drilling, "he said, Tuesday (5/9).

Andiono explained, for exploration drilling in North Madura II, it added one well for exploration. However, he still has not explained in detail about it, since the oil and gas working area is still exploratory or not berkordatsi.

In addition to managing the Ketapang Block, Petronas has the right to participate in several Indonesian Migas Working Areas. For example Natuna Sea A working area of ​​15%. The gas company also controls 80% stake in Muriah Block.

Muriah Block-Petronas

IN INDONESIA

Petronas Tambah 3 Sumur Produksi

Petronas Carigali Indonesia Limited akan segera melakukan pengeboran dua sumur minyak dan gas bumi di Lapangan Bukit Tua, Blok Ketapang untuk meningkatkan minyak mentah dan 15.000 barel per hari menjadi 20.000 barel per hari.

Selain itu, Petronas selaku pengelola Blok North Madura II juga menambah satu sumur untuk eksplorasi. Lapangan Bukit Tua merupakan proyek hulu migas terbesar Petronas di Indonesia. Investasi di blok migas itu mencapai US$ 800 juta.

Di Blok Ketapang, Petronas menjadi operator dengan kepemilikan saham 80%. Sementara itu, 20% saham dipegang oleh PT Saka Ketapang Perdana, anak Usaha PT Perusahaan Gas Negara Tbk.

Senior Maneger Corporate Affairs & Administration Petronas Carigali Indonesia Andiono Setiawan mengatakan bahwa pihaknya telah memasang alat pengeboran (rig) di Lapangan Bukit Tua belum lama ini.

Perusahaan asal Malaysia itu menargetkan sumur migas tersebut bisa beroperasi pada tahun ini. Dari data SKK Migas, dana investasi untuk dua sumur tersebut mencapai US$ 80 juta.

“Penambahan dua sumur baru ini bertujuan untuk meningkatkan produksi dari 15.000 BOPD [barrel oil per day] mejadi 20.000 BOPD. Kemarin, alat rig sudah didatangkan ke lokasi pengeboran,” katanya, Selasa (5/9).

Andiono menjelaskan, untuk pengeboran eksplorasi di North Madura II, pihaknya menambah satu sumur untuk eksplorasi. Hanya saja, dia masih belum menjelaskan secara rinci tentang hal itu, mengingat wilayah kerja migas tersebut masih berstatus eksplorasi atau belum berporduksi.

Selain mengelola Blok Ketapang, Petronas jugas memegang hak partisipasi di beberapa Wilayah Kerja migas Indonesia. Misalnya Wilayah kerja Natuna Sea A sebesar 15%. Perusahaan gas itu juga menguasai 80% saham di Blok Muriah.

Bisnis Indonesia, Page-28, Thursday, Sept 7, 2017

PLN Review LNG Import Swap

PT Perusahaan Listrik Negara is considering swaping or liquefied natural gas swap with Keppel Corporation Ltd., a Singapore-based energy infrastructure company.

PLN Strategic Procurement Director Nicke Widyawati said that the liquefied natural gas (LNG) swap is an advanced option on a memorandum of understanding (MOU) with Keppel that has been made before.

PLN and Keppel have signed the MoU on the construction of gas storage facilities for mobile power plant (MPP) in northern Sumatra. In the study, PLN can exchange the LNG quota from Bontang Refinery in East Kalimantan with Keppel's property.

"The original design was taken from Bontang. Then seen if taken from Singapore, the total price is cheaper or not. His study there, "he said at the Parliament building on Wednesday (6/9).

Although the LNG source is different, the LNG price obtained by PLN will be the same as that supplied from Bontang through the swap option. However, the cost of transportation can be different.

"In terms of transportation, if from Singapore compared to shorter Bontang, certainly would be cheaper," he said.

Even so, Nicke claimed there has been no further discussion of the swap option. So far the two sides are still conducting their respective studies for the required energy infrastructure. To enter the barter or swap option, PLN plans to amend the MoU with Keppel in the near future.

"The study was given 6 months. Tomorrow [this week] will sign another MoU, "he said.

Later, all decisions related to barter options are determined by general business review. If gas turns from Singapore more efficient, it can be realized by PLN.

According to him, the study should be completed soon. The reason is, PLN's mobile power plant has started to operate and needs gas supply.

Earlier, Deputy Minister of EMR Arcandra Tahar explained that every gas import plan should be carefully evaluated. The reason, if the price of gas is expensive, electricity rates will go up.

"All matters relating to import bids should be carefully evaluated. Well, the offer of US $ 3.8-US $ 4.0 per MMBtu was to my knowledge only the cost for regasification and transportation. "

IMPORT RULES

The government issued a regulation on the price limit of gas for power plants in January 2017. Not long ago with the LNG price formula at the 11.5% departure pier from the Indonesian crude price (ICP), the government issued a new formula recently.

Through Minister of Energy and Mineral Resources Regulation no. 45/2017 which supersedes ESDM Ministerial Regulation no. 11/2017 on Utilization of Natural Gas for Generators, the government re-tampered with the gas pricing formula.

From the original 11.5% of ICP to LNG at the departure dock, the government now regulates the price of piped gas at the maximum power plant PLN can purchase and private power developers at 14.5% of ICP. The reason for the change, the 11%, 5% formula is considered too high for PLN and private developers. The reason is, this price does not include the cost of LNG transportation, regasification, and the cost of channeling gas through the pipeline.

PLN and private power developers can use LNG if they have access or plans to build their own LNG receiving terminal. The LNG price at the plant gate can be purchased, under the pipe gas supply. In addition, if the import LNG price is equal to the domestic LNG price, the developer must purchase from domestic supply. LNG that requires a longer process to be used in a power station actually gets the same formula as a pipe gas that only needs a process of delivery through the pipeline.

Previously, Director of Fuel Oil and Gas PLN Chairman Rachmatullah said that for the provision of gas generating the next, after the existence of this rule, the use of LNG will be more difficult.

Because the four existing LNG receiving terminals are not yet operating efficiently, so the cost of regasification is high. Thus, it is difficult to use LNG with a 14.5% formula from ICP which has included regasif cost factor as well as distribution to plant gate.

Four regasification facilities currently in operation, namely in Benoa, Bali (owned by PT Pembangkitan Jawa Bali) with a capacity of 50 million cubic feet per day (MMscfd); in Lampung [owned by PT Perusahaan Gas Negara Tbk., with capacity of 240 MMscfd; Arun-Aceh (owned by Pertamina) and in West Java (owned by Nusantara Regas) with capacity of 400 MMscfd.

IN INDONESIA

PLN Tinjau Swap LNG lmpor

PT Perusahan Listrik Negara sedang mempertimbangkan untuk melakukan penukaran atau swap gas alam cair dengan Keppel Corporation Ltd., perusahaan infrastruktur energi asal Singapura.

Direktur Pengadaan Strategis PLN Nicke Widyawati mengatakan bahwa swap gas alam cair (liquefied natural gas/LNG) tersebut merupakan opsi lanjutan atas nota kesepahaman bersama (memorandum of understanding/MOU) dengan Keppel yang telah dibuat sebelumnya.

PLN dan Keppel telah meneken MoU tentang pembangunan fasilitas penyimpanan gas untuk pembangkit listrik bergerak (mobile power plant/MPP) di wilayah Sumatra bagian utara. Dalam kajian tersebut, PLN bisa menukar jatah LNG dari Kilang Bontang di Kalimantan Timur dengan milik Keppel.

“Desain awalnya itu diambil dari Bontang. Kemudian dilihat kalau diambil dari Singapura, total harganya lebih murah atau tidak. Kajiannya ke arah situ,” katanya di gedung DPR, Rabu (6/9).

Kendati sumber LNG itu berbeda, harga LNG yang diperoleh PLN akan sama dengan yang dipasok dari Bontang melalui opsi swap tersebut. Namun, biaya transportasinya bisa berbeda.

“Secara kasat mata transportasinya kalau dari Singapura dibanding dari Bontang lebih pendek, tentunya pasti akan lebih murah,” ujarnya.

Meskipun begitu, Nicke mengaku belum ada pembicaraan lebih lanjut mengenai opsi swap tersebut. Sejauh ini kedua belah pihak masih melakukan kajian masing-masing untuk infrastruktur energi yang dibutuhkan. Untuk memasukan opsi barter atau swap tersebut, PLN berencana mengamendemen MoU dengan Keppel dalam waktu dekat. 

“Kajian diberi waktu 6 bulan. Besok [pekan ini] mau ditandatangani lagi MoU-nya," tuturnya.

Nantinya, seluruh keputusan terkait opsi barter tersebut ditentukan dengan kajian bisnis secara umum. Jika ternyata gas dari Singapura lebih efisien, hal tersebut bisa direalisasikan oleh PLN.

Menurutnya, kajian tersebut harus segera dirampungkan. Pasalnya, pembangkit listrik bergerak milik PLN sudah mulai beroperasi dan membutuhkan pasokan gas.

Sebelumnya, Wakil Menteri ESDM Arcandra Tahar menjelaskan bahwa setiap rencana impor gas harus dievaluasi secara hati-hati. Alasannya, jika harga gas mahal, tarif listrik akan ikut naik.

“Semua hal-hal yang berkaitan tawaran impor harus hati-hati dievaluasi. Nah, tawaran US$ 3,8-US$ 4,0 per MMBtu itu setahu saya hanya biaya untuk regasifikasi dan transportasi."

ATURAN IMPOR

Pemerintah mengeluarkan aturan tentang batas harga gas pembangkit pada Januari 2017. Belum lama bertahan dengan formula harga LNG di dermaga keberangkatan 11,5% dari harga minyak mentah Indonesia (Indonesian crude price/ICP), pemerintah menerbitkan formula baru belum lama ini.

Melalui Peraturan Menteri ESDM No. 45/2017 yang menggantikan Peraturan Menteri ESDM No. 11 /2017 tentang Pemanfaatan Gas Bumi untuk Pembangkit, pemerintah mengutak-atik ulang formula harga gas pembangkit.

Dari semula 11,5% dari ICP untuk LNG di dermaga keberangkatan, kini pemerintah mengatur harga gas pipa di pembangkit maksimum yang bisa dibeli PLN dan pengembang listrik swasta sebesar 14,5% dari ICP. Alasan perubahan itu, formula 11 ,5% dianggap masih terlalu tinggi bagi PLN dan pengembang swasta. Pasalnya, harga ini belum mencakup biaya transportasi LNG, regasifikasi, dan biaya penyaluran gas melalui pipa.

PLN dan pengembang listrik swasta pun bisa menggunakan LNG bila memiliki akses atau rencana untuk membangun terminal penerimaan LNG sendiri. Harga LNG di plant gate yang bisa dibeli, yakni di bawah penawaran gas pipa. Selain itu, bila harga LNG impor sama dengan harga LNG domestik, pengembang wajib membeli dari pasokan domestik. LNG yang memerlukan proses lebih panjang untuk bisa digunakan di pembangkit listrik justru mendapat formula yang sama dengan gas pipa yang hanya membutuhkan proses penghantaran melalui pipa.

Sebelumnya, Direktur Bahan Bakar Minyak dan Gas PLN Chairani Rachmatullah mengatakan bahwa untuk penyediaan gas pembangkit berikutnya, setelah adanya aturan ini, penggunaan LNG akan semakin sulit.

Pasalnya, empat terminal penerimaan LNG yang sekarang ada saat ini belum beroperasi secara efisien sehingga biaya regasifikasi tinggi. Dengan demikian, sulit untuk menggunakan LNG dengan formula 14,5% dari ICP yang sudah memasukkan faktor biaya regasifIkasi juga distribusi ke plant gate. 

Empat fasilitas regasifikasi yang saat ini beroperasi, yakni di Benoa, Bali (milik PT Pembangkitan Jawa Bali) berkapasitas 50 juta kaki kubik per hari (MMscfd); di lampung [milik PT Perusahaan Gas Negara Tbk., berkapasitas 240 MMscfd; Arun-Aceh (milik Pertamina) serta di Jawa Barat (milik Nusantara Regas) dengan kapasitas 400 MMscfd. 

Bisnis Indonesia, Page-28, Thursday, Sept 7, 2017

End of Year, Pertamina-Rosneft Joint Venture Company Completed

PT Pertamina targets the formation of a joint venture (JV) with Rosneft Oil Company for the construction of Tuban refinery of 300 thousand barrels per day (bph). Both have agreed on the obligations offtaker.

Pertamina's Finance Director Arif Budiman said it had finished renegotiating the issue of the absorption obligations (offtaker) of refinery products with Rosneft. The Russian oil and gas company agreed to share the burden of absorption and marketing of refinery products.

"So for the Tuban Refinery, hopefully this year the formation of JV," he said in Jakarta on Tuesday (5/9)

In addition to changing the obligations offtaker, no other agreement revision. Pertamina retains a majority stake of 55%, while Rosneft 45%, in accordance with the JV Agreement (JVA) agreement signed in 2016. The agreement also details management and governance, feedstock, funding principles, human resources, standard clauses and steps for implementing the establishment of a joint venture.

After the JV is formed, the two companies will inject the funds needed for the construction of Tuban Refinery. Because during the absence of Pertamina and Rosneft share the costs that arise in the construction of this refinery project in East Java.

"If there is a JV, we will fill (capital) and JV who make payment. (Dana) for engineering, for BED (basic engineering design), "he said.

Pertamina Director of Pertamina Processing and Petrochemical Processing Center, Ardhy N Mokobombang, added that the joint venture will be the executor of the construction of Tuban Refinery, Pertamina and Rosneft are the owners. To disguise the JV, his side and Rosneft will each form a subsidiary first. Pertamina will establish PT Pertilang International Refinery.

Then under there is PRPB, Pertamina-Rosneft Processing and Petrochemical, Pertamina's JV with Rosneft. "Currently, he said the feasibility study of the Tuban refinery has been completed, but the next step of the construction of this refinery still has to wait for the establishment of the company the joint.

"In the future, it is planned that the JV will continue its engineering packet and so on up to FID (final investment decision) and EPC (engineering, procurement, and construction)," Ardhy

Simultaneously with the establishment of a joint venture, engineering design and discussion of land use owned by the Ministry of Environment and Forestry is also being undertaken. As is known, Pertamina and East Java Provincial Government have signed a memorandum of understanding on land use asset of the Ministry of Environment and Forestry in Tanjung Awar-Awar, Tuban-East Java.

In the memorandum of understanding, the Provincial Government of East Java supports the utilization of land Ministry of Environment and Forestry for the construction of Tuban Refinery. Not only that, East Java Provincial Government also provides the permits required for the construction of refineries, namely space and other utilization permits in accordance with applicable regulations.

Furthermore, Pertamina will replace the 60 hectares of Land and Forestry Ministry of Forestry. To support the refinery, Pertamina and Rosneft will also build supporting facilities such as jetty, submarine pipelines, Single Point Mooring (SPM), tank farm storage, utility and office complexes.

In addition, the company and its partners also reclaimed or leveled the coastline and undertook the dredging of the ship. The Tuban refinery and its supporting facilities occupy an area of ​​approximately 404 hectares located in Remen, Mentoso, Rawasan, Wadung and Kaliuntu villages in Jenu District, Tuban Regency, East Java Province. The new integrated oil refinery of Petroleum and Petrochemical Tuban has the capacity to process crude oil up to 300 thousand barrels per day (bpd).

IN INDONESIA

Akhir Tahun, Perusahaan Patungan Pertamina-Rosneft Tuntas

PT Pertamina menargetkan pembentukan perusahaan patungan (joint venture/JV) dengan Rosneft Oil Company untuk pembangunan Kilang Tuban 300 ribu barel per hari (bph). Keduanya sudah sepakat soal kewajiban offtaker.

Direktur Keuangan Pertamina Arif Budiman menuturkan, pihaknya telah selesai merenegosiasi masalah kewajiban penyerapan (offtaker) produk kilang dengan Rosneft. Perusahaan migas Rusia itu setuju untuk ikut menanggung beban penyerapan dan pemasaran produk kilang. 

"Jadi untuk Kilang Tuban, mudah-mudahan bisa tahun ini pembentukan JV-nya," kata dia di Jakarta, Selasa (5/9) 

Selain soal perubahan kewajiban offtaker, tidak ada revisi kesepakatan lain. Pertamina tetap memegang saham mayoritas 55%, sementara Rosneft 45%, sesuai dengan perjanjian pembentukan JV (JV Agreement/JVA) yang diteken pada 2016 lalu. Perjanjian ini juga merinci soal manajemen dan tata kelola, feedstock, prinsip-prinsip pendanaan, sumber daya manusia, klausa standar dan langkah-langkah untuk implementasi pembentukan perusahaan patungan.

Pasca JV terbentuk, kedua perusahaan akan menyuntikan dana yang diperlukan untuk konstruksi Kilang Tuban. Pasalnya selama belum ada Pertamina dan Rosneft membagi biaya-biaya yang muncul dalam pembangunan proyek kilang di Jawa Timur ini.

“Kalau sudah ada JV-nya, nanti kami isi (modal) dan JV yang melakukan pembayaran. (Dana) untuk engineering, untuk BED (basic engineering design/desain dasar)," tegasnya.

Direktur Megaproyek Pengolahan dan Petrokimia Pertamina Ardhy N Mokobombang menambahkan, perusahaan patungan ini akan menjadi pelaksana pembangunan Kilang Tuban, Pertamina dan Rosneft merupakan pemilik. Untuk membentuka JV, pihaknya dan Rosneft masing-masing akan membentuk anak usaha terlebih dahulu. Pertamina akan membentuk PT Kilang Pertamina International.

Kemudian di bawahnya ada PRPB, Pertamina-Rosneft Processing and Petrochemical, JV-nya Pertamina dengan Rosneft," tuturnya. Saat ini, dikatakannya kajian kelayakan (feasibility study) Kilang Tuban telah selesai. Namun, langkah berikutnya pembangunan kilang ini masih harus menunggu pembentukan perusahaan patungan tadi. 

"Ke depan, direncanakan JV-nya nanti yang akan melanjutkan engineering packet-nya dan seterusnya sampai dengan FID (keputusan investasi final) dan EPC (engineering, procurement, and construction/rekayasa, pengadaan, dan konstruksi) ," jelas Ardhy

Bersamaan dengen pembentukan perusahaan patungan, desain rekayasa dan pembahasan penggunaan lahan milik Kementerian Lingkungan Hidup dan Kehutanan juga sedang dilakukan. Seperti diketahui, Pertamina dan Pemerintah Provinsi Jawa Timur telah menandatangani nota kesepahaman pemanfaatan lahan aset Kementerian Lingkungan Hidup dan Kehutanan di Tanjung Awar-Awar, Tuban-Jawa Timur.

Dalam nota kesepahaman itu, Pemerintah Propinsi Jawa Timur mendukung pemanfaatan lahan Kementerian Lingkungan Hidup dan Kehutanan untuk pembangunan Kilang Tuban. Tidak hanya itu, Pemerintah Propinsi Jawa Timur juga memberikan izin-izin yang dibutuhkan untuk pengerjaan kilang, yakni izin pemanfaatan ruang dan lainnya sesuai dengan ketentuan yang berlaku. 

Selanjutnya, Pertamina akan mengganti lahan Kementerian Lingukungan Hidup dan Kehutanan seluas 60 hektar itu. Untuk mendukung kilang ini, Pertamina dan Rosneft juga akan membangun fasilitas penunjang antara lain jetty, jalur pipa bawah laut, Single Point Mooring (SPM), tangki penyimpanan minyak mentah (tank farm), komplek utilitas dan perkantoran. 

Selain itu, perseroan dan mitra juga mereklamasi atau meratakan perataan garis pantai dan melaksanakan pengerukan alur kapal. Kilang Tuban beserta fasilitas penunjangnya menempati areal sekitar 404 hektar yang berlokasi di Desa Remen, Mentoso, Rawasan, Wadung, dan Kaliuntu di Kecamatan Jenu, Kabupaten Tuban, Provinsi Jawa Timur. Kilang Baru Terintegrasi Bahan Bakar Minyak dan Petrokimia Tuban memiliki kapasitas mengolah minyak mentah hingga 300 ribu barel per hari (bph). 

Investor Daily, Page-11, Wednesday, Sept 6, 2017

Sarawak to set up oil firm amid talks with Petronas

The Malaysia’s Sarawak state government is going ahead with plans to set up its own oil exploration company called Petroleum Sarawak (Petros), which will be wholly owned by the state, despite the low oil price environment.

However, it is unclear how this will impact the activities of national oil company, Petroliam Nasional Bhd. (Petronas), which has long operated in Sarawak, where it garners the bulk of its Malaysian revenue from gas fields there. Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Arifin had said recently that he welcomes any involvement by state government entities in the oil and gas (O&G) business, but it has to be within the Petroleum Development Act (PDA).

“We have a strong relationship with the Sarawak government, as such, We welcome its participation in the O&G industry. “But we also have regulations in place, of which under the PDA, Petronas is the custodian and manager of the O&G resources in Malaysia,” he told reporters at a briefing on Petronas’ mid-year results recently. 

Wan Zulkifiee added that the partnership with Petros could be similar to other Petronas partnerships, either as service providers or as a partner under the production sharing contract (PSC).

“Discussions are ongoing with the Sarawak state government,” he said when asked about the potential partnership between Petronas and Petros.

Chief Minister Datuk Amar Abang Johari Tun Openg officially announced last month the formation of Petros, with a target for the company to be operational in the first quarter of next year.

“The formation of Petros is an unprecedented step taken by the state government to enable Sarawak to actively participate in the extraction of oil and gas in Sarawak while still pursuing its request for a 20% royalty from Petronas,” he said.

However, there has been no clear indication on whether Petros is going to be a partnering with Petronas or carry its own oil extraction activities. Petros is currently head-hunting a chief executive officer and other key management positions to start operation by the first quarter next year, according to a Bernama report. 

There has been growing dissatisfaction in the Sabah and Sarawak governments over the years on oil royalties, despite the fact that the bulk of Petronas’ hydrocarbons are derived from the two states.

Sabah and Sarawak currently receive royalties of some 5% from Petronas for O&G revenues. Sabah and Sarawak have also been looking to have a bigger say in the decisions made by Petronas when it comes to its activities in those states.

This has led to appointments of two board members in Petronas last year, namely Sarawak state secretaiy Tan Sri Amar Mohamad Morshidi Abdul Ghani and Datuk Hassanel Mohd Tahir (permanent secretary in the Sabah government’s finance ministry) to represent Sarawak and Sabah. Sarawak, which has been especially vocal on the issue of higher oil royalty, had also issued a moratorium on all new applications for Work permits of Petronas personnel from outside Sarawak last year.

It was reported that the state governments decision was prompted by complaints from Sarawakian Petronas officers whose services were terminated or who were retrenched. Petronas is currently developing the Sabah-Sarawak Integrated O&G project to harness the O&G resources in the offshore areas of Sabah and Sarawak.

Jakarta Post, Page-20, Wednesday, Sept 6, 2017

Pertamina receives first license to export gasoil : sources

lndonesia’s Pertamina has received a license from the government to export gasoil for the first time, three sources close to the matter said on Monday although the state oil company is planning to prioritize domestic sales if possible. 

Pertamina is typically an importer of gasoil, as diesel is called in most Asian markets, but inbound shipments have declined over the years as it ramped up refining output and demand from the mining sector slowed.

With other gasoil sellers such as Royal Dutch Shell, Exxon Mobil Corp and Solaris Prima Energy crowding into the retail market, and an increased biodiesel mandate in 2016 reducing conventional consumption, Pertamina’s supply of the fuel has also outperformed demand, said Toharso, director of refineries at Pertamina, who goes by one name.

If Pertamina exports its surplus fuel, it would help ease supply tightness in Asia caused by Tropical Storm Harvey which drove up the Asian gasoil margins to a one-and-a-half month high, traders said.

The company, though, is also taking steps to sellmore gasoil into its domestic market by asking the government to grant it a monopoly on diesel imports, which would force the other retailers to buy from Pertarnina.

The state oil company received the gasoil export license two to three weeks ago, and it is developing a standard operating procedure on how to export the cargoes. the sources said Still "we try our best to sell in the domestic market" Toto Nugroho. Senior Vice President at Pertamina for integrated supply Chain told Reuters. But if market competition means storage inventories build up, “the last resort is to export,” he said.

Pertamina declined to give details on possible export volumes or a timeline of shipments. Pertamina supplies about 70 percent of Indonesia’s gasoil needs, while private firms supply the rest, Toharso said.

Many of the private firms import their gasoil, but Pertamina is lobbying Jakarta to name it the country’s exclusive importer of the fuel, a move that would alleviate the state oil companys surplus and possibly negate its need to export the fuel.

“Pertamina is encouraging the Energy Ministry to make other companies not to import gasoil and just buy it from Pertamina,” said Toharso.

Indonesia’s Energy Ministry did not address a Reuters query asking if it will approve Pertamina’s request. Dadan Kusdiana, a spokesman for the ministry said it will “encourage [retail] companies to purchase from Pertamina first before they import.”

“Pertamina has also sent an offer letter to other [retail] companies that need gasoil,” Kusdiana said.

But the prices oifered by Pertamina are higher than buying from the international market, said a buyer who declined to be named as he was not authorised to speak with media. “We can easily absorb the cargoes as long as the price is competitive,” the buyer said. Toharso said the prices were negotiable.

Nearly two-thirds of Indonesia’s gasoil is used in its transport sector for commercial vehicles, which is expected to grow at 3 to 5 percent this year. The rest is used in the country"s  industrial and mining sectors.

Solaris Prima Energy is a subsidiary of China-Owned trader Unipec Singapore, whose parent company company is Asia’s top refiner Sinopec Corp.

Jakarta Post, Page-19, Wednesday, Sept 6, 2017