PGN Suffers Out of Business Pressure

PGN still relies on its subsidiaries to create new products and efficiency programs

The business of PT Perusahaan Gas Negara Tbk (PGN) in the first half of 2017 is still not enthusiastic. In the first half of 2017, PGN revenues amounted to US $ 1.41 billion. The value is down 4% compared to the same period last year. Meanwhile, PGN's net profit was US $ 50.29 million, down 67% compared to the same period last year which reached US $ 152.45 million.

Pressure to pressure is being experienced by issuers coded PGAS shares in the Indonesia Stock Exchange. One of the pressures came from Government Regulation No. 44/2017 on Gas Price Determination. The regulation requires industrial gas prices to be lowered, with the highest price setting at US $ 6 per million metric british, thermal unit (mmbtu).

In fact, PGN sold the gas price to the industry with the highest US $ 14 per mmbtu. In addition, BPH Migas is currently intensively incessantly lowering toll fees in all gas pipelines. So far that has been derived is the toll fee of Arun-Belawan pipeline, previously US $ 2.53 per mscf to US $ 1.54 per mscf.

Anticipate the decline in company performance until the end of the year. Head of Marketing and Product Development Division of PGN Adi Munandir stated that his company is trying to increase sales and efficiency. For example, creating products that support customers, such as providing incentives to selected industries.

"We optimize our efficiency and operations, so we hope that performance will be maintained, increase sales, improve efficiency," Adi said, Thursday (7/9).

PGN is evaluating several business development opportunities, including through subsidiaries. Such as PT Gagas Energi Indonesia with initiative development of compressed natural gas (CNG) distribution, Liquefied natural gas (LNG) retail, to supply gas for power generation.

There is also PT Pegaskom, a subsidiary of PGN in the field of fiber optics. This business was built by PGN when building the infrastructure of South Sumatra West Java (SSWJ).

Initially these optical fibers were only used for PGN purposes in optimizing the network. But there is a remaining capacity that can be used for other business activities. Adi admitted fiber optic business has contributed positively to this company.

"Its contribution when compared with existing existing exists. But the contribution started positive, has started to increase, there have been improvements, all subsidiaries can contribute positively to support the PGN group business, "explained Adi.

While in the new business, the red plate gas company is still doing an evaluation. until now PGN is focusing on optimizing subsidiaries, such as power generation, Saka Energy, and fiber optics earlier.

"The declare we are still optimizing, the new is still in the evaluation," he said.

Beyond the subsidiary business development, PGN also develops a major business in gas infrastructure. Adi said that PGN is currently developing a gas distribution network in Dumai, developing Duri-Dumai, Central Java and East Java transmission.

In the near future, Adi is sure that the Dumai distribution pipeline can be completed soon. PGN also targets the distribution of this distribution pipeline to be completed next year. If Dumai's distribution pipeline is complete, Adi believes there will be growth of the gas user industry.

"In the early stages we can see that Dumai's allocation has been 37 bbtud." We tried to monetize it all and optimize the distribution at Dumai-Riau Island, "he explained.

PGN is also depressed in Kepodang Field

Nasib Petronas Carigali and PT Saka Energi Indonesia, a subsidiary of PT Perusahaan Gas Negara Tbk (PGN) will be determined the results Lemigas research related to the production of Kepodang Field production in Muriah Block, Central Java. Just to remind Petronas to buy 80% stake in Blok Muriah from BP in 2013, while Saka bought 20% stake from Sunny Ridge Offshore in 2015.

However, the fact that 2015 new field production is expected to be exhausted or empty by 2018. Senior Manager of Corporate A ffair & Administration Petronas Carigali Indonesia Andiono Seuawan stated that with Kepodang problem, it will discuss and coordinate with PLN and PT Kalimantan Jawa Gas (KJG).

"Surely, whatever the outcome of Lemigas, what kind of results, we wait," he said.

Until now Kepodang Field is still flowing gas. It's just that the gas production does not reach the target. Previously Petronas project, Kepodang Field production can reach 116 mmscfd. Currently only 70 mmscfd-80 mmscfd.

Muriah Block-Petronas

IN INDONESIA

PGN Berjibaku Keluar dari Tekanan Bisnis

PGN masih mengandalkan anak usaha untuk membuat produk baru dan program efisiensi

Bisnis PT Perusahaan Gas Negara Tbk (PGN) pada semester I-2017 masih tidak bergairah. Semester I-2017, pendapatan PGN sebesar US$ 1,41 miliar. Nilai tersebut turun 4% dibandingkan dengan periode yang sama tahun lalu. Sementara laba bersih PGN tercatat US$ 50,29 juta, merosot 67% dibandingkan dengan periode sama tahun lalu yang mencapai US$ 152,45 juta.

Tekanan demi tekanan sedang dialami oleh emiten berkode saham PGAS di Bursa Efek Indonesia itu. Salah satu tekanan itu bersumber dari Peraturan Pemerintah No 44/2017 tentang Penetapan Harga Gas Bumi. Peraturan tersebut meminta harga gas industri diturunkan, dengan ketetapan harga paling tinggi US$ 6 per million metric british, thermal unit (mmbtu).

Padahal, PGN menjual harga gas ke industri paling tinggi US$ 14 per mmbtu. Selain itu, saat ini BPH Migas sedang gencar-gencarnya menurunkan toll fee di semua ruas pipa gas. Sejauh ini yang sudah diturunkan adalah toll fee pipa Arun-Belawan, sebelumnya US$ 2,53 per mscf menjadi US$ 1,54 per mscf.

Mengantisipasi turunnya kinerja perusahaan sampai akhir tahun. Head of Marketing and Product Development Division PGN Adi Munandir menyatakan, pihaknya sedang berusaha meningkatkan penjualan dan efisiensi. Misalnya, menciptakan produk yang mendukung pelanggan, seperti memberi insentif ke industri-industri terpilih.

"Kami mengoptimalkan efisiensi dan operasi. Dengan cara begitu kami berharap kinerja bisa terjaga. Meningkatkan penjualan, meningkatkan efisiensi," kata Adi, Kamis (7/9).

PGN sedang mengevaluasi beberapa peluang-peluang pengembangan usaha ,termasuk melalui anak usaha. Semisal PT Gagas Energi Indonesia dengan inisiatif pengembangan distribusi compressed natural gas (CNG), Liquefied natural gas (LNG) ritel, hingga memasok gas untuk pembangkitan tenaga listrik.

Ada juga PT Pegaskom, anak usaha PGN di bidang serat optik. Usaha ini dibangun oleh PGN saat membangun infrastruktur South Sumatra West Java (SSWJ).

Awalnya serat optik ini hanya digunakan untuk keperluan PGN dalam mengoptimalisasi jaringan. Namun ada sisa kapasitas yang bisa digunakan untuk kegiatan usaha lain. Adi mengaku usaha serat optik sudah berkontribusi positif bagi perseroan ini.

“Kontribusinya kalau dibanding dengan eksisting masih besar eksisting. Tapi kontribusi mulai positif, sudah mulai meningkat, sudah ada perbaikan, semua anak perusahaan bisa berkontribusi positif untuk mendukung bisnis grup PGN," terang Adi.

Sementara di bisnis baru, perusahaan gas plat merah ini masih melakukan evaluasi. hingga saat ini PGN sedang fokus pada optimalisasi anak usaha, seperti pembangkitan tenaga listrik, Saka Energy, dan serat optik tadi. 

"Yang sudah declare kami masih optimalkan. Yang baru masih dalam evaluasi," ujarnya.

Di luar pengembangan bisnis anak usaha, PGN juga mengembangkan bisnis utama di bidang infrastruktur gas. Adi menuturkan, saat ini PGN sedang mengembangkan jaringan distribusi gas di Dumai, pengembangan transmisi Duri-Dumai, Jawa Tengah dan Jawa Timur.

Dalam waktu dekat, Adi yakin pengerjaan pipa distribusi Dumai bisa segera rampung. PGN pun menargetkan ruas pipa distribsui ini bisa rampung tahun depan. Jika pipa distribusi Dumai selesai, Adi yakin akan ada pertumbuhan industri pengguna gas. 

"Tahap awal kami bisa lihat alokasi Dumai sudah dapat 37 bbtud. Kami mencoba monetisasi itu semua dan mengoptimalkan distribusi di Dumai-Kepualaun Riau," jelasnya.

PGN Juga Tertekan di Lapangan Kepodang

Nasib Petronas Carigali dan PT Saka Energi Indonesia, anak usaha PT Perusahaan Gas Negara Tbk (PGN) akan ditentukan hasil

penelitian Lemigas terkait ponurunan produksi Lapangan Kepodang di Blok Muriah Jawa Tengah. Sekedar mengingatkan Petronas membeli 80% saham Blok Muriah dari BP pada tahun 2013, sedangkan Saka membeli 20% saham dari Sunny Ridge Offshore pada tahun 2015. 

Namun kenyataanya lapangan yang baru produksi 2015 diperkirakan akan habis atau kosong tahun 2018. Senior Manager Corporate A ffair & Administration Petronas Carigali Indonesia Andiono Seuawan menyatakan dengan adanya masalah Kepodang, pihaknya akan berdiskusi dan berkoordinasi dengan pihak PLN dan PT Kalimantan Jawa Gas (KJG).

"Pasti, apapun hasil dari Lemigas, hasilnya seperti apa, kami tunggu," kata dia.

Hingga saat ini Lapangan Kepodang masih mengalirkan gas. Hanya saja produksi gasnya tidak mencapai target. Sebelumnya Petronas memproyeksi, produksi Lapangan Kepodang bisa mencapai 116 mmscfd. Saat ini hanya 70 mmscfd-80 mmscfd.

Kontan, Page-18, Friday, Sept 8, 2017

Pertamina Gets Diesel Oil Export Permit

Pertamina's Marketing Director Muchamad lskandar said the permit was obtained due to the company's high diesel production. Meanwhile, Pertamina's petroleum storage has been almost full since 3 months ago.

"Already given the Director General of Oil and Gas [Ministry of Energy and Mineral Resources] permission since last month. If there is an excess we ask permission first. So, one day if there is excess solar can be exported quickly, "he said at the House of Representatives, Wednesday (6/9).

The permit will enable Pertamina to export diesel for six months and can be extended as needed. If it is exported, it still has to go through the auction process.

He revealed that Pertamina's gas stock has reached 1.87 million kiloliters (KL). The amount is able to meet consumption needs up to 26 days or much longer than the normal limitations for 19 days only.

With the permit, he considered that Pertamina has an option if diesel consumption does not increase. That way, there is no need to shut down refinery operations due to insufficient capacity.

"So this is just in case the refinery is not operating," he said.

Iskandar revealed that in recent months, diesel consumption is likely to decline. One of them is from the mining sector which tends to stagnate. Meanwhile, the Director General of Oil and Gas of the ESDM Ministry Ego Syhahrial said that the diesel export permit granted by the government to Pertamina is accompanied by several requirements. Pertamina is required to meet domestic demand first before exporting diesel fuel.

"The policy will be offered first to the country. So, it will not be rash, "he said.

CRUDE OIL

Meanwhile, the average price of Indonesia crude price (ICP) in August was set at US $ 48.43 per barrel, up US $ 2.95 per barrel from the previous month at US $ 45.48 per barrel. Meanwhile, ICP SLC in August reached US $ 49.17 per barrel or increased by US $ 2.82 per barrel from July 2017 worth US $ 46.35 per barrel.

Citing the Directorate General of Oil and Gas, the price of crude oil in the international market has increased due to several factors. First, based on OPEC's publication in August 2017, the projected global crude oil demand this year rose by 0.11 million barrels per day compared to the previous month's projection of 96.49 million barrels per day. In addition, global oil product demand growth in 2017 has been revised up by 0.1 million barrels per day compared to the previous month's report to 1.5 million barrels per day.

Second, according to the Energy Information Administrarion (EIA) report, the level of US crude oil stocks and distillate fuel oil during August 2017 decreased compared to July 2017.

Third, the market's positive response, ie market participants will continue to monitor the level of use of oil drilling tools (rigs) in the United States. Meanwhile, based on data from Baker Hughes Incorporated, there was a decrease in the number of drilling rigs in the United States, down by four rigs in one week in August 2017 to 954 rigs.

Previously, the Downstream Oil and Gas Regulatory Agency (BPH Migas) wanted a representative institution in the region to tighten the supervisory duties of subsidized fuel oil distribution, especially those allocated to fishermen. Head of BPH Migas M. Fanshurullah Asa said it will increase supervision of subsidized fuel distribution to fishermen will be more targeted.

IN INDONESIA

Pertamina Kantongi Izin Ekspor Minyak Diesel

Direktur Pemasaran Pertamina Muchamad lskandar mengatakan bahwa izin tersebut diperoleh karena produksi solar perseroan yang cukup tinggi. Adapun, penyimpanan solar Pertamina sudah hampir penuh sejak 3 bulan lalu. 

“Sudah diberikan Dirjen Migas [Kementerian ESDM] izinnya sejak bulan lalu. Kalau terjadi excess [kelebihan produksi] kami minta izin dulu. Jadi, suatu saat kalu ada excess solar itu bisa cepat diekspor,” ujarnya di gedung DPR, Rabu (6/9).

Izin tersebut membuat Pertamina bisa melakukan ekspor solar selama 6 bulan dan bisa diperpanjang sesuai dengan kebutuhan. Jika jadi diekspor, maka tetap harus melalui proses lelang.

Dia mengungkapkan stok solar Pertamina saat ini sudah mencapai 1,87 juta kiloliter (KL). Jumlah tersebut mampu untuk memenuhi kebutuhan konsumsi hingga 26 hari atau jauh lebih lama dari batasan normal selama 19 hari saja.

Dengan izin tersebut, dia menilai bahwa Pertamina memiliki opsi apabila konsumsi solar tidak meningkat. Dengan begitu, tidak perlu ada penghentian operasi kilang akibat kapasitasnya yang tidak memadai. 

“Jadi, ini hanya untuk jaga-jaga jangan sampai kilang setop operasinya,” ujarnya.

Iskandar mengungkapkan bahwa dalam beberapa bulan terakhir, konsumsi solar cenderung mengalami penurunan. Salah satunya dari sektor pertambangan yang cenderung stagnasi. Sementara itu, Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Ego Syhahrial mengatakan bahwa izin ekspor solar yang diberikan pemerintah kepada Pertamina disertai dengan beberapa persyaratan.

Pertamina wajib memenuhi kebutuhan dalam negeri terlebih dahulu sebelum mengekspor solar. 

“Policy-nya akan ditawarkan dulu ke dalam negeri. Jadi, tidak akan gegabah,” tuturnya.

MINYAK MENTAH  

Sementara itu, rata-rata harga minyak mentah Indonesia (Indonesia crude price/ICP) Agustus ditetapkan senilai US$ 48,43 per barel atau naik US$ 2,95 per barel dari bulan sebelumnya senilai US$ 45,48 per barel. Adapun, ICP SLC Agustus mencapai US$ 49,17 per barel atau naik sebesar US$2,82 per barel dari Juli 2017 senilai US$ 46,35 per barel.

Mengutip situs Dirjen Migas, harga minyak mentah utama di pasar internasional mengalami peningkatan yang diakibatkan oleh beberapa faktor. Pertama, berdasarkan publikasi OPEC pada Agustus 2017, proyeksi permintaan minyak mentah global tahun ini naik 0,11 juta barel per hari dibandingkan dengan proyeksi bulan sebelumnya menjadi sebesar 96,49 juta barel per hari.

     Selain itu, pertumbuhan permintaan produk minyak global pada 2017 telah direvisi naik 0,1 juta barel per hari dibandingkan dengan laporan bulan sebelumnya menjadi 1,5 juta barel per hari.

Kedua, berdasarkan laporan Energy Information Administrarion (EIA), tingkat stok minyak mentah komersial dan distillate fuel oil Amerika Serikat selama Agustus 2017 mengalami penurunan dibandingkan dengan Juli 2017.

Ketiga, respon positif pasar, yaitu pelaku pasar akan terus mengawasi tingkat penggunaan alat pengeboran minyak (rig) di Amerika Serikat. Sementara itu, berdasarkan data Baker Hughes Incorporated, terdapat penurunan jumlah drilling rig di Amerika Serikat, yaitu turun sebanyak empat rig dalam 1 pekan pada Agustus 2017 menjadi 954 rig.

Sebelumnya, Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) menginginkan ada institusi perwakilannya di daerah untuk memperketat tugas pengawasan penyaluran bahan bakar minyak bersubsidi, khususnya yang dialokasikan kepada nelayan.

Kepala BPH Migas M. Fanshurullah Asa mengatakan, pihaknya akan meningkatkan pengawasan penyaluran bahan bakar minyak bersubsidi ke nelayan akan agar lebih tepat sasaran.

Bisnis Indonesia, Page-28, Friday, Sept 8, 2017

PGN insists Petronas must pay for Kepodang Liability

State-owned gas firm PGN has asserted that Malaysian energy firm Petronas is still obliged to pay for contracted gas transportation through the Kalimantan-Java (Kalija) I pipeline, despite the force majeure declared at the Kepodang field operated by Petronas in Jepara, Central Java.

The Upstream Oil and Gas Regulatory Special Task Force (SKK-Migas) recently announced force majeure at the Kepodang field in the Muriah block, which is projected to run out of gas reserves in 2018, nine years earlier than previously estimated.

Muriah Block-Petronas

“The force majeure status only applies to the gas sales agreement, not for the transportation agreement,” PGN chief financial officer Nusantara Suyono told The Jakarta Post on Tuesday. “As there is a ship-or-pay clause in the transportation agreement, Petronas will still have to pay even though there is no gas to be transported from the Kepodang field.”

Petronas previously signed a gas sales agreement with state electricity firm PLN, in which the former committed to supplying 116 million standard cubic feet per day (mmscfd) of gas produced at Kepodang field within a 12-year period from 2015 for the latter’s 1,000 megawatt (MW) Tambak Lorok combined-cycle power plant (PLTGU) in Semarang, Central Java.

In relation to the gas transmission, the Malaysia-based energy firm sealed an additional agreement With PT Kalimantan Jawa Gas (KJG)  a joint venture between PGN and investment company PT Bakrie & Brothers, with 80 percent and 20 percent ownership, respectively.

KJG is obliged to transmit the gas through the Kalija I pipeline, which costs US$266.75 million and spans 201 kilometers from the Kepodang field to the Tambak Lorok facility, with a fee of $2,236 per thousand standard cubic feet (mscf) of gas for the 12-year period.

Previously PLN strategic procurement director Supangkat Iwan Santoso stated the company would probably prefer to terminate its gas sales agreement with Petronas although the latter tried approaching it to replace the gas supply from other sources. 

Moreover, he said the gas price from the Kepodang field was too high, at $4.61 per million British' thermal units (mmbtu) with an escalation of 8.6 percent a year.

“The escalation is too high. Now, the price has reached $7 per mmbtu at our Tambak Lorok plant and will surpass $10 within the next iive years,” Iwan said. 

Hence, PLN is considering alternative sources of energy for its Tambak Lorok facility, perhaps even liquefied natural gas (LNG). The company also still has gas supplier amounting to 46 mmscfd from the Gundih gas block in Blora, Central Java, which is operated by Pertamina EP the upstream subsidiary of state-owned energy giant Pertamina.

Meanwhile, Petronas has stated that it will still supply gas to PLN until 2018, even though the capacity might only reach 70 mmscfd. The unexpected force majeure at Kepodang has also affected PGN, which owns 20 percent of the field through its upstream subsidiary PT Saka Energi Indonesia. ‘As force majeure has been declared, we have to record it as an impairment loss,” Nusantara said. 

Within the first six months of 2017, PGN could only distribute 749 mmscfd and transmit 721 mmscfd of gas, seeing an annual decrease of 5.9 percent and 11.6 percent, respectively; as a result of slower demand amid a sluggish economy.

At the same time, the company was also hit by the governments decision to cut end-user gas prices to below $6 per mmbtu for the petrochemical, fertilizer and steel industries at the beginning of this year.

As a result, PGN’s net revenues fell by 1.95 percent to $1.4 billion, While its net profits plunged even further by 67 percent to $ 50.3 million. In July, PGN had squared syndicated loans worth $650 million it received from five different financial institutions in 2014, two years ahead of their maturity date of 2019 after the firm decided to delay expansion plans following the declining financial performance.

The syndicated loans came from ANZ Banking Group, the Bank of Tokyo-Mitsubishi URL Citigroup Global Markets Singapore, the Hongkong and Shanghai Banking Corporation, and Sumitomo Mitsui Banking Corporation.

Jakarta Post, Page-18, Thursday, Sept 7, 2017

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