Government Immediately Re-Auction East Kalimantan Block

The government declared to immediately auction East Kalimantan Block in the near future. Blocks offshore East Kalimantan are auctioned, after PT Pertamina decided not to continue its management and return to the government.

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said Pertamina had declared it would return East Kalimantan Block to the government. Once returned, it will immediately auction block whose contract expires on October 24, 2018.

"As soon as [auctioned], there is no time for us not to auction off as soon as possible" he said in Jakarta, Friday (22/9)

He said that although Pertamina did not continue to sign the contract, it does not mean the East Kalimantan Block is not attractive. A number of oil and gas companies are said to be interested in working on the block whose contract was first signed on January 11, 1991. Unfortunately, he is reluctant to detail the company of this company.

"There are some interested, but it certainly depends on how detailed it will be. This is waiting for us. So soon we will auction, "said Arcandra.

Currently, East Kalimantan Block is operated by Chevron Indonesia Company which also holds 100% participation right. Chevron Indonesia, since 2016, has expressed no interest in continuing its contract and will be returned to the country. However, the company from the United States still has the obligation to continue operations in East Kalimantan Block until next year.

"There [Chevron] keep working, still until next year," said Arcandra.

Previously, Upstream Director of Pertamina Syamsu Alam said that his side did not manage East Kalimantan Block because the company wanted to focus on working on another termination block. Until now, Pertamina has signed the Mahakam Block contract, replacing Total E & P Indonesie as operator starting January 1, 2018. In addition, the company is still discussing the contract of seven termination blocks, Tuban Block, Ogan Komering, North Sumatera Offshore, Central, Sanga-Sanga, South East Sumatra (SES), and Attaka.

"We have decided not to continue. Consideration, we will focus on handling Mahakam and other termination blocks, right enough, "he said.

Moreover, the possibility of the Ministry of Energy and Mineral Resources (ESDM) does not approve the extension of time to evaluate the East Kalimantan Block. Previously, the company has requested an extension of time to study the block offshore of East Kalimantan due to the considerable abandonment and site restoration (ASR) burden.

Based on data from Pertamina, East Kalimantan Block has an area of ​​6,177 square kilometers. In 2015, oil and gas reserves were recorded at 213 million barrels of oil equivalent (MMboe). While the oil and gas production of this block is 36.5 thousand barrels of oil equivalent per day (kilo barrel oil equivalent per day / kboepd). ASR Efficiency, As ASR loads, Arcandra continues, it is looking for ways to cut costs. Because, during the initial production sharing contract (PSC) cost recovery, ASR burden borne by the state through reimbursement of investment costs (cost recovery).

"We need to find the right technology that can be efficient, so that high ASR costs can be suppressed," he explained.

During a visit to various oil and gas companies in Europe, he admitted also with the aim of seeing efficient ASR technology. Meanwhile, for the new regulation of ASR itself, it is still being processed. However, Arcandra did not reveal when this rule was launched. "Ministerial Regulation is being drafted," he said.

Nature had mentioned, the East Kalimantan Block's economy became difficult because of the considerable ASR burden. Because, embracing the PSC for gross split, ASR's burden becomes the responsibility of the investor completely. This is in contrast to cost recovery contracts, in which ASR is shared with the government. "

The same thing was also expressed by the Executive Director of IPA Marjolijn Wajong. According to him, oil and gas contracts signed before 1990 did not require ASR allowance. In fact, if counting the number of wells drilled for decades, the required ASR funds would be quite large. Collecting these funds to one of the companies, either contracted out or taking over the management, will be a heavy burden.

For the contractor who took over running the block out of this contract, the ASR charge is said to be able to trim the economics of the block. Meanwhile, if billed to the old contractor, no funds can be deposited considering there is no provision of funds since the beginning of the contract. The implementation of billing also has the potential for dispute between the government and the contractor.

IN INDONESIA

Pemerintah Segera Lelang Ulang Blok East Kalimantan

Pemerintah menyatakan segera melelang Blok East Kalimantan dalam waktu dekat. Blok di lepas pantai Kalimantan Timur ini dilelang, setelah PT Pertamina memutuskan untuk tidak melanjutkan pengelolaannya dan mengembalikan ke pemerintah.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, Pertamina telah menyatakan akan mengembalikan Blok East Kalimantan kepada pemerintah. Begitu dikembalikan, pihaknya bakal langsung melelang blok yang kontraknya berakhir pada 24 Oktober 2018 tersebut. 

“Secepatnya [dilelang], tidak ada waktu bagi kita untuk tidak melelang secepatnya" kata dia di Jakarta, Jumat (22/9)

Dikatakannya, meski Pertamina tidak melanjutkan hingga menandatangani kontrak, bukan berarti Blok East Kalimantan tidak menarik. Sejumlah perusahaan migas disebutnya tertarik untuk menggarap blok yang kontraknya pertama kali diteken pada 11 Januari 1991 tersebut. Sayangnya, dia enggan merinci perusahaan perusahaan ini.

“Ada beberapa tertarik, tetapi ini tentu tergantung nanti bagaimana detailnya. Ini sedang kami tunggu. Makanya secepatnya akan kami lelang,” tutur Arcandra.

Saat ini, Blok East Kalimantan dioperatori oleh Chevron Indonesia Company yang sekaligus memegang hak partisipasi 100%. Chevron Indonesia, sejak 2016 lalu, telah menyatakan tidak berminat melanjutkan kontraknya dan bakal dikembalikan ke negara. Namun, perusahaan asal Amerika Serikat ini masih memiliki kewajiban melanjutkan operasi di Blok East Kalimantan sampai tahun depan. 

“Di sana [Chevron] tetap bekerja kan, masih sampai tahun depan,” ujar Arcandra.

Sebelumnya, Direktur Hulu Pertamina Syamsu Alam mengatakan, pihaknya tidak lanjut mengelola Blok East Kalimantan lantaran perseroan ingin fokus menggarap blok terminasi lain. Hingga kini, Pertamina telah meneken kontrak Blok Mahakam, menggantikan Total E&P Indonesie sebagai operator mulai 1 Januari 2018. Selain itu, perseroan juga masih membahas kontrak tujuh blok terminasi, yakni Blok Tuban, Ogan Komering, North Sumatera Offshore, Tengah, Sanga-Sanga, South East Sumatera (SES), dan Attaka.

“Sudah kami putuskan untuk tidak kami lanjutkan. Pertimbangannya, kami akan fokus menangani Mahakam dan blok terminasi lain, kan cukup banyak,” kata dia. 

Apalagi, kemungkinan Kementerian Energi dan Sumber Daya Mineral (ESDM) tidak menyetujui perpanjangan waktu untuk mengevaluasi Blok East Kalimantan. Sebelumnya, perseroan telah meminta perpanjangan waktu untuk mengkaji blok di lepas pantai Kalimantan Timur itu lantaran beban dana pascatambang (abandonment and site restoration/ASR) yang cukup besar.

Berdasarkan data Pertamina, Blok East Kalimantan memiliki luas area 6.177 kilometer persegi. Pada 2015 lalu, cadangan migas ini tercatat sebesar 213 juta barel setara minyak (million barrel oil equivalent/MMboe). Sementara produksi migas blok ini yakni sebesar 36,5 ribu barel setara minyak per hari (kilo barrel oil equivalent per day/ kboepd). Efisiensi ASR, Terkait beban ASR, Arcandra melanjutkan, pihaknya sedang mencari cara untuk memangkas biayanya. Pasalnya, pada masa awal kontrak kerja sama (production sharing contract/PSC) cost recovery, beban ASR ditanggung negara melalui penggantian biaya investasi (cost recovery).

“Kita harus cari teknologi yang pas yang bisa efisien, supaya biaya ASR yang tinggi ini bisa ditekan,” jelasnya.

Dalam kunjungan ke berbagai perusahaan migas di Eropa lalu, dirinya mengaku juga dengan tujuan melihat teknologi ASR yang efisien. Sementara itu, untuk regulasi baru soal ASR sendiri, dikatakannya masih diproses. Namun, Arcandra tidak membeberkan kapan peraturan ini diluncurkan. “Peraturan Menteri sedang disusun,” kata dia.

Alam sempat menyebutkan, keekonomian Blok East Kalimantan menjadi sulit lantaran beban ASR yang cukup besar. Pasalnya, menganut PSC bagi hasil kotor (gross split), beban ASR menjadi tanggung jawab investor sepenuhnya. Hal ini berbeda dengan kontrak cost recovery, di mana ASR ditanggung bersama dengan pemerintah. "

Hal yang sama juga sempat diungkapkan Direktur Eksekutif IPA Marjolijn Wajong. Menurutnya, kontrak migas yang diteken sebelum 1990 memang tidak mewajibkan penyisihan ASR. Padahal, jika menghitung jumlah sumur yang dibor selama berpuluh-puluh tahun, dana ASR yang diperlukan bakal cukup besar. Penagihan dana ini kepada salah satu perusahaan, baik yang kontraknya habis ataupun yang mengambil alih pengelolaannya, akan menjadi beban berat.

Bagi kontraktor yang mengambil alih kelola blok habis kontrak ini, pembebanan ASR disebutnya dapat memangkas keekonomian blok tersebut. Sementara jika ditagihkan kepada kontraktor lama, tidak ada dana yang dapat disetor mengingat memang tidak ada penyisihan dana sejak awal kontrak. Pelaksaan penagihan juga berpotensi terjadinya dispute antara pemerintah dan kontraktor.

Investor Daily, Page-9, Saturday, Sept 23, 2017

Ministry of ESDM Ready to Auction East Kalimantan Block

The Ministry of Energy and Mineral Resources (ESDM) will soon auction East Kalimantan oil and gas blocks. This step swings after PT Pertamina declares it will restore the block operations. Deputy Minister of Energy and Mineral Resources Arcandra Tahar said the East Kalimantan block will be auctioned immediately after Pertamina officially returns the block to the government.

"Immediately, there is no time we do not auction off as soon as possible," said Arcandara on Friday (22/9).

Arcandra added, there are currently some oil and gas companies interested to manage the East Kalimantan block. Unfortunately, Arcandra can not say more details related to the auction process. Although it will conduct an auction as soon as possible, Arcandra insists the operational activities of the East Kalimantan block will continue until the contract expires next year.

"Keep working, because still until next year," he added.

Previously, Pertamina said that the continuation of the management of the East Kalimantan block could be detrimental, because the funding expenditure is greater than the needs of other oil and gas blocks. Understandably, in managing the block Pertamina must use a gross split scheme that is claimed by many mining companies in terms of cost greater than cost recovery.

The problem is, this company still has to bear the cost of mine closure or post mining alias abandonment and site restoration (ASR). This condition causes Pertamina not interested in managing the former East Kalimantan block managed by Chevron.

"In the new regulations have to bear a considerable ASR cost," said Syamsu Alam, Upstream Director of Pertamina.

In managing the East Kalimantan block, Pertamina is required to bear all post-mining costs in the block. Apparently, the previous block manager, Chevron Indonesia, did not reserve the post-mining funds in the block. The previous government does not require contractors of cooperation contracts (KKKS) to prepare funds post-mining.

Well, this obligation only begins after the KKKS sign a new contract in which there is a clause regarding to bear the cost of mine closure. Pertamina has counted oil and gas blocks terminated in 2018 using a gross split scheme. Of the eight termination blocks, only East Kalimantan blocks are considered less economical. Meanwhile, in relation to the Ministerial Regulation on ASR, it is still being drafted by the government.

"We have to find the right technology, to be efficient, so that this high ASR can be suppressed," said Arcandra.

IN INDONESIA

Kementerian ESDM Siap Lelang Blok East Kalimantan

Kementerian Energi dan Sumber Daya Mineral (ESDM) segera melelang blok minyak dan gas (migas) East Kalimantan. Ayunan langkah ini setelah PT Pertamina menyatakan akan mengembalikan operasional blok tersebut. Wakil Menteri ESDM Arcandra Tahar mengatakan, blok East Kalimantan akan langsung dilelang setelah Pertamina secara resmi mengembalikan blok tersebut ke pemerintah. 

"Secepatnya, tidak ada waktu kita tidak melelang secepatnya," kata Arcandara pada Jumat (22/9).

Arcandra menambahkan, saat ini sudah ada beberapa perusahaan migas yang tertarik untuk mengelola blok East Kalimantan tersebut. Namun sayang, Arcandra belum dapat mengatakan lebih mendetail terkait proses lelang itu. Walaupun akan melakukan Ielang secepatnya, Arcandra menegaskan kegiatan operasional dari blok East Kalimantan akan tetap berjalan hingga kontrak berakhir pada tahun depan. 

"Tetap bekerja, karena masih sampai tahun depan," imbuhnya.

Sebelumnya, Pertamina menilai, kelanjutan pengelolaan blok East Kalimantan bisa merugikan, karena pengeluaran dananya lebih besar dibandingkan dengan kebutuhan dana blok migas lain. Maklum, dalam mengelola blok tersebut Pertamina harus memakai skema gross split yang diklaim oleh banyak perusahaan tambang dari sisi biaya lebih besar daripada cost recovery. 

Persoalannya, perusahaan ini masih harus menanggung biaya penutupan tambang atau pasca tambang alias abandonment and site restoration (ASR). Kondisi inilah yang menyebabkan Pertamina tidak tertarik mengelola blok East Kalimantan bekas dikelola Chevron. 

"Dalam peraturan baru harus menanggung biaya ASR yang cukup besar," kata Syamsu Alam, Direktur Hulu Pertamina.

Dalam mengelola blok East Kalimantan, Pertamina wajib menanggung seluruh biaya pasca tambang di blok tersebut. Rupanya, pengelola blok sebelumnya, Chevron Indonesia, tidak mencadangkan dana pasca tambang di blok itu. Pemerintah sebelumnya memang tidak mewajibkan kontraktor kontrak kerja sama (KKKS) menyiapkan dana pasca tambang. 

Nah, kewajiban ini baru mulai setelah KKKS meneken kontrak baru yang di dalamnya ada klausul soal menanggung biaya penutupan tambang. Pertamina telah berhitung blok-blok migas yang terminasi pada tahun 2018 dengan menggunakan skema gross split. Dari delapan blok terminasi, hanya blok East Kalimantan yang dinilai kurang ekonomis. Sementara itu, terkait dengan Peraturan Menteri tentang ASR, saat ini masih disusun oleh pemerintah. 

"Kami harus cari teknologi yang pas, agar efisien, supaya ASR yang tinggi ini bisa ditekan," jelas Arcandra.

Kontan, Page-14, Saturday, Sept 23, 2017

Deputy Minister of EMR Officially BD HCML Field

Contractor of the Sarna Work Contract (KKKS) Husky-CNOOC Madura Limited (HCML), Wednesday (20/9), officially operates the BD field. Vice Minister of EMR Arcandra Tahar marked the inauguration by splitting the pitcher at the Karapan Fleet Sterling III Floating Production Storage (FPSO), which is off the coast of Sampang, Madura.

This activity was attended by Sampang Regent Fadillah Budiono, Head of Sampang DPRD KH Imam Ubaidillah, Deputy Head of SKK Migas Sukandar, Assistant of Operations of Main Military Commander of Army IV, Colonel Aris Hariadi W, General Manager HCML Huang Chunlin, Upstream Directorate of Directorate General Oil and Gas Ministry ESDM Mr. Tunggal, and other officials. On that occasion, Deputy Minister of Energy and Mineral Resources Arcandra Tahar in his speech appreciated HCML and all related parties on the completion of this project.

"The production of this project also contributes to the increase of national oil and gas production," he said.

The peak production of BD's field is 100 million standard cubic feet per day (MMSCFD) and 7,000 barrels of condensate per day. Gas distribution to PT PGN started on 26 Ju1i 2017. The gas by PGN is utilized to support industrial activities in East Java. Currently gas absorption ranges from 30-40 MMSCFD and condensate at 3,000 barrels per day.

"Production will increase gradually. It is expected that early 2018 peak production is achieved," said Arcandra.

Based on recent developments, BD field gas buyers are PT Inti Alasindo Energy of 40 MMSCfD and PT PGN of 60 MMSCFD. For PT Inti Alasindo Energy cooperates with Pertagas as a transporter to distribute BD field gas to end users.

"Hopefully with this gas distribution to domestic buyers indirectly can help lift the regional economy," said Arcandra.

The Government is committed to create a conducive investment climate. One of them revised the ESDM ministerial regulation on gross split, to replace the current cost recovery scheme. Hopefully, this new policy scheme could be more efficient for upstream oil and gas business in Indonesia. The realization of upstream oil and gas projects can also be faster.

"The support of all parties, including the local government is very important," he said.

He said the local government is expected to help speed up the permits issued and not issue regulations that do not have added value to the upstream oil and gas industry.

IN INDONESIA

Wakil Menteri ESDM Resmikan Lapangan BD HCML

Kontraktor Kontrak Kerja Sarna (KKKS) Husky-CNOOC Madura Limited (HCML), Rabu (20/9), resmi mengoperasikan lapangan BD. Wakil Menteri ESDM Arcandra Tahar menandai peresmian dengan memecah kendi di Floating Production Storage and Offloading (FPSO) Karapan Armada Sterling III, yang berada di lepas Pantai Kabupaten Sampang, Madura.

Kegiatan ini dihadiri Bupati Sampang Fadillah Budiono, Ketua DPRD Sampang KH Imam Ubaidillah, Wakil Kepala SKK Migas Sukandar, Asisten Operasi Komandan Pangakalan Utama TNI Angkatan Laut IV, Kolonel Laut Aris Hariadi W, General Manager HCML Huang Chunlin, Direktur Hulu Direktorat Jenderal Minyak dan gas Kementerian ESDM Tunggal, dan pejabat lainnya. Dalam kesempatan itu, Wakil Menteri ESDM Arcandra Tahar dalam sambutannya mengapresiasi HCML dan seluruh pihak terkait atas selesainya proyek ini. 

"Produksi proyek ini turut berkontribusi pada peningkatan produksi migas nasional," katanya.

Produksi puncak Iapangan BD sebesar 100 juta standar kaki kubik per hari (MMSCFD) dan 7.000 barel kondensat per hari. Penyaluran gas ke PT PGN dimulai pada tanggal 26 Ju1i 2017. Gas tersebut oleh PGN dimanfaatkan untuk mendukung kegiatan industri di Jawa Timur.  Saat ini penyerapan gas berkisar 30-40 MMSCFD dan kondensat sebesar 3.000 barel per hari. 

"Produksi akan meningkat secara bertahap. Diharapkan awal 2018 produksi puncak tercapai," kata Arcandra.

Berdasarkan perkembangan terakhir, pembeli gas lapangan BD adalah PT Inti Alasindo Energy sebesar 40 MMSCfD dan PT PGN sebesar 60 MMSCFD. Untuk PT Inti Alasindo Energy bekerja sama dengan Pertagas sebagai transporter untuk menyalurkan gas lapangan BD kepada para end user.

"Semoga dengan disalurkannya gas ini ke pembeli domestik secara tidak langsung dapat membantu mengangkat perekonomian daerah," kata Arcandra.

Pemerintah berkomitmen untuk membuat iklim investasi yang kondusif. Salah satunya merevisi peraturan menteri ESDM mengenai gross split, untuk menggantikan skema cost recovery yang selama ini berjalan. Harapannya, skema kebijakan baru ini bisa lebih mengefisienkan bisnis hulu migas di Indonesia. Realisasi proyek hulu migas juga bisa lebih cepat. 

"Dukungan semua pihak, termasuk pemerintah daerah sangat penting," katanya.

Dia mengatakan, pemerintah daerah diharapkan dapat membantu mempercepat izin yang dikeluarkan dan tidak mengeluarkan peraturan yang tidak memiliki nilai tambah untuk industri hulu migas.

Harian Bangsa, Page-4, Saturday, Sept 23, 2017

HCML Still Waiting for Buyers

Madura Limited, Madura BD Field Operator, Madura Strait Block, is still waiting for potential buyers of natural gas from the field to increase peak production by 110 million cubic feet per day.

Currently, natural gas production from gas fields operated by Husky Energy and CNOOC Limited is only 40 million cubic feet per day (MMscfd) and condensate 3,000 barrels per day (BPD). All gas production at present is 40 MMscfd sold to PT Perusahaan Gas Negara Tbk. BD field produces its first gas since July 26, 2017.

General Manager of Husky-CNOOC Madura Limited (HCML) Huang Chunlin said that the gas field production located in Madura Strait can be raised up to 110 MMscfd and 7,000 BPD condensate in January 2018.

According to him, HCML is still negotiating price and gas supply with PT Petrokimia Gresik and PT Inti Alasindo Energy which will cooperate with PT Pertamina Gas as gas to the consumer.

"We are still waiting for other gas buyers to raise the peak production, which is 110 MMscfd. The possibility of peak production will be achieved in January 2018, "he said while assisting the Vice Minister of EMR in Arcandra Tahar inaugurated the first gas field production BD, Wednesday (20/9).

BD Field is located off the coast of Madura Strait, about 52 km east of Pasuruan (East Java) and 16 km south of Sampang Regency, Madura Island. The field has gas reserves of 442 billion cubic feet (BCF) and condensate of 18.7 million barrels. Huang added that to achieve the project's economic level, gas and condensate production from BD Field will be done for 14 years.

BD field has four wells. Gas and condensate production is channeled to the floating production storage and offloading (FPSO) of Karapan Armada Sterling III owned by PT Amtada Gema Nusantara. The gas from the FPSO is channeled through a 52 km subsea gas pipeline to a gas metering station (GMS) located in Pasuruan which is then delivered to PGN.

According to him, the price of gas sold by HCML to PGN is the US $ 7 per million British thermal units (MMBtu). FPSO Karapan Armada Sterling III was imported by PT Armada Gema Nusantara (Malaysia FPSO provider, Bumi Armada Bhd.) In January 2017. Armada Gema Nusantara ordered the FPSO from Keppel Oil, a Singaporean oil and gas company, then Fleet Gema Nusantara rented the FPSO to HCML.

INVESTMENT US $ 300 MILLION

Huang added BD field development investment reached the US $ 300 million used for construction and drilling. The investment fund is outside the cost of leasing the FPSO from Armada Gema.

In addition to Arcandra Tahar, the inauguration of BD Field gas production was also attended by Deputy Head of SKK Migas Sukandar and Sampang Regent Fadillah Budiono. Husky Energy, the Canadian oil and gas company, holds a 40% stake in Madura BD Field.

Meanwhile, China's oil and gas company CNOOC Limited holds a 40% stake. The remaining 20% ​​is owned by Samudra Energy Limited, an Indonesian oil, and gas company established by Patrick Sugito Walujo, son-in-law of T.P Rachmat.

EMR Deputy Minister of Energy and Mineral Resources, Arcandra Tahar, said that the production of BD's field through a long process. Since the BD Fields BD production contract was signed in 1982, the new oil and gas well-produced commercial gas in July 2017, takes 35 years.

"In the 1970s, it only took 5 years to reach the production stage, now it takes an average of 15 years to reach the production stage," he said.

He explained that the length of time in the development of oil and gas blocks to reach the oil and gas production will affect the efficiency of the project. The longer the time it takes, the project will not be efficient. Therefore, the government is currently using a gross split contract scheme to replace the profit-sharing contracts for returned operating costs.

"Through gross split, the procurement process is faster so the project will be efficient and reduce costs."

Bisnis Indonesia, Page-28, Friday, Sept 22, 2017

Pertamina Does Not Continue Evaluating East Kalimantan Block

PT Pertamina will not continue the evaluation of the East Kalimantan Block because it will focus on the management of other termination blocks. Thus, the block off the coast of East Kalimantan will be offered to other oil and gas companies.

Upstream Director of Pertamina Syamsu Alam said the decision on the East Kalimantan Block was taken because the company wanted to focus on working on another termination block. Until now, Pertamina has signed the Mahakam block contract, replacing Total E & P Indonesie as operator starting January 1, 2018.

Mahakam block

In addition, the company also discusses contracts for seven termination blocks, namely Tuban Block, Ogan Komering, North Sumatra Offshore, Central, Sanga-Sanga, South East Surnatera (SES), and Attaka.

"We have decided not to continue. Consideration, we will focus on handling Mahakam and other termination blocks, because quite a lot, "he said in Jakarta, Wednesday (20/9)

Moreover, the possibility of the Ministry of Energy and Mineral Resources (ESDM) does not approve the extension of time to evaluate the East Kalimantan Block. Previously, the company has requested an extension of time to study the block offshore of East Kalimantan due to the considerable abandonment and site restoration (ASR) burden. For the continuation of the East Kalimantan Block management, he said, is the authority of the ESDM Ministry.

"Obviously the block will be offered to investors who are interested in managing," said Alam.

Currently, East Kalimantan Block is operated by Chevron Indonesia Company which also holds 100% participation right. The block's production sharing contract (PSC) was first signed on January 11, 1991 and will end on October 24, 2018. Chevron Indonesia, since 2016, has declared no interest in continuing its contract and will be returned to the country.

Based on data from Pertamina, East Kalimantan Block has an area of ​​6,177 square kilometers. In 2015, oil and gas reserves were recorded at 213 million barrels of oil equivalent (MMboe). While the oil and gas production of this block is 36.5 thousand barrels of oil equivalent per day (kilo barrel oil equivalent per day / kboepd).

Previously, Syamsu Alam mentioned, the ASR burden is quite large and fully borne by oil and gas companies in the gross split contract. The reason, embracing the contract of this scheme, means that the burden of ASR becomes the responsibility of the investor completely. This is in contrast to cost recovery contracts, where ASR is shared with the government.

The same thing was also expressed by the Executive Director of IPA Marjolijn Wajong. According to him, oil and gas contracts signed before 1990 did not require ASR allowance. In fact, if counting the number of wells drilled for decades, the required ASR funds will be substantial. Collecting these funds to one of the companies, either contracted out or taking over the management, will be a heavy burden.

For the contractor who took over running the block out of this contract, the ASR charge is said to be able to trim the economics of the block. Meanwhile, if billed to the old contractor, no funds can be deposited considering there is no provision of funds since the beginning of the contract. Coercion billing also has the potential for dispute between government and contractors.

IN INDONESIA

Pertamina Tidak Lanjutkan Evaluasi Blok East Kalimantan

PT Pertamina tidak akan melanjutkan evaluasi Blok East Kalimantan lantaran bakal fokus pada pengelolaan blok terminasi lain. Dengan demikian, blok di lepas pantai Kalimantan Timur itu bakal ditawarkan ke perusahaan migas lain.

Direktur Hulu Pertamina Syamsu Alam mengatakan, keputusan soal Blok East Kalimantan tersebut diambil lantaran perseroan ingin fokus menggarap blok terminasi lain. Hingga kini, Pertamina telah meneken kontrak Blok Mahakam, menggantikan Total E&P Indonesie sebagai operator mulai 1 Januari 2018. 

Selain itu, perseroan juga masih membahas kontrak tujuh blok terminasi, yakni Blok Tuban, Ogan Komering, North Sumatera Offshore, Tengah, Sanga-Sanga, South East Sumatera (SES), dan Attaka.

“Sudah kami putuskan untuk tidak kami lanjutkan. Pertimbangannya, kami akan fokus menangani Mahakam dan blok terminasi lain, karena cukup banyak,” kata dia di Jakarta, Rabu (20/9)

Apalagi, kemungkinan Kementerian Energi dan Sumber Daya Mineral (ESDM) tidak menyetujui perpanjangan waktu untuk mengevaluasi Blok East Kalimantan. Sebelumnya, perseroan telah meminta perpanjangan waktu untuk mengkaji blok di lepas pantai Kalimantan Timur itu lantaran beban dana pascatambang (abandonment and site restoration/ ASR) yang cukup besar. Untuk kelanjutan pengelolaan Blok East Kalimantan, dikatakannya merupakan wewenang Kementerian ESDM.

“Tentunya blok tersebut akan ditawarkan kepada investor yang tertarik mengelola,” tutur Alam.

Saat ini, Blok East Kalimantan dioperatori oleh Chevron Indonesia Company yang sekaligus memegang hak partisipasi 100%. Kontrak kerja sama (production sharing contract/PSC) blok ini diteken pertama kali pada 11 Januari 1991 dan akan berakhir pada 24 Oktober 2018. Chevron Indonesia, sejak 2016 lalu, telah menyatakan tidak berminat melanjutkan kontraknya dan akan dikembalikan ke negara.

Berdasarkan data Pertamina, Blok East Kalimantan memiliki luas area 6.177 kilometer persegi. Pada 2015 lalu, cadangan migas ini tercatat sebesar 213 juta barel setara minyak (million barrel oil equivalent/MMboe). Sementara produksi migas blok ini yakni sebesar 36,5 ribu barel setara minyak per hari (kilo barrel oil equivalent per day/ kboepd).

Sebelumnya, Syamsu Alam menyebut, beban ASR yang cukup besar dan sepenuhnya ditanggung perusahaan migas dalam kontrak gross split. Pasalnya, menganut kontrak skema ini, berarti beban ASR menjadi tanggung jawab investor sepenuhnya. Hal ini berbeda dengan kontrak cost recovery, dimana ASR ditanggung bersama dengan pemerintah.

Hal yang sama juga sempat diungkapkan Direktur Eksekutif IPA Marjolijn Wajong. Menurutnya, kontrak migas yang diteken sebelum 1990 memang tidak mewajibkan penyisihan ASR. Padahal, jika menghitung jumlah sumur yang dibor selama berpuluh-puluh tahun, dana ASR yang diperlukan akan cukup besar. Penagihan dana ini kepada salah satu perusahaan, baik yang kontraknya habis ataupun yang mengambil alih pengelolaannya, akan menjadi beban berat.

Bagi kontraktor yang mengambil alih kelola blok habis kontrak ini, pembebanan ASR disebutnya dapat memangkas keekonomian blok tersebut. Sementara jika ditagihkan kepada kontraktor lama, tidak ada dana yang dapat disetor mengingat memang tidak ada penyisihan dana sejak awal kontrak. Pemaksaan penagihan juga berpotensi terjadinya dispute antara pemerintah dan kontraktor.

Investor Daily, Page-9, Friday, Sept 22, 2017

Target 700 Barrels of Oil per Day

Wells of Poleng in Madura Strait Start Drilling

PT Pertamina EP declared a N2 pole well in an offshore Madura Strait water refinery, drilling its prime on Thursday (21/9).

PT Pertamina EP's Operations and Production Director Chalid Said Salim, along with Asset 4 PT Pertamina EP management, has made final checks on team preparedness and equipment ahead of drilling wells on Wednesday (20/9).

"want to make sure the team conditions on the ground, and of course the readiness of the ground," Chalid said.

The location of the well to be drilled, named Poleng N2 or Well CW-12H which has the surface coordinate X: 708,283.73; Y: 9259.346.09. It is estimated that the duration of workmanship reaches 45 days with a target depth of 9,000 ft and estimated cost of 15 million US dollars (US). This drilling is a synergy between PT Pertamina's upstream subsidiaries, PT Pertamina EP and PT Peitamina Hulu Energi.

"This excellent synergy supports the implementation of activities, especially for PT Pertamina EP, which is the first time to drill offshore," said Chalid.

Drilling results are targeted to produce 700 barrels of oil per day and 1.2 million cubic feet of gas per day. In addition, the drilling also aims to add hydrocarbon absorption points in the CW area of ​​the Kujung structure.

Didik Susilo, Asset 4 General Manager of PT Pertamina EP said that Asset 4 is one of the most complete assets because in addition to having oil field, there are also three gas production centers CPP Gundih, CPP Donggi and CPP Matindok.

"Then in Asset 4 there is also a field on land as well as offshore as it is in Poleng Field.Pengeng Field entered PT Pertamina EP about four years ago," explained Didik.

"Hopefully this drilling results in accordance with targets that have been calculated previously even higher," added Didik.

Charles S Siallagan, Poleng Field Manager explains the Asset 4 Poleng Field team is optimistic with the drilling of Poleng N.

"We expect this drilling to run smoothly and can increase the production of PT Pertamtna EP in particular and nationally in general, "Charles said.

IN INDONESIA

Target 700 Barel Minyak per Hari

Sumur Poleng di Selat Madura Mulai Pengeboran

PT Pertamina EP menyatakan sumur poleng N2 di kilang lepas pantai perairan Selat Madura, melakukan pengeboran perdana pada Kamis (21/9).

Direktur Operasi dan Produksi PT Pertamina EP, Chalid Said Salim, bersama manajemen Asset 4 PT Pertamina EP telah melakukan pengecekan terakhir terkait kesiapan tim dan peralatan jelang pengeboran Sumur, Rabu (20/9).   

"ingin memastikan kondisi tim di lapangan, dan tentunya kesiapan peraratan," kata Chalid.

Lokasi sumur yang akan dibor, bernama Poleng N2 atau Sumur CW-12H yang memiliki koordinat permukaan X : 708,283.73 ; Y: 9.259.346,09. Diperkirakan durasi pengerjaan mencapai 45 hari dengan target kedalaman mencapai 9.000 ft dan estimasi biaya mencapai 15 juta dolar Amerika Serikat (AS). Pengeboran ini merupakan wujud sinergi antar anak perusahaan hulu PT Pertamina yaitu PT Pertamina EP dan PT Peitamina Hulu Energi. 

"Sinergi yang sangat baik ini saling mendukung terlaksananya kegiatan terutama bagi PT Pertamina EP yang baru pertama kali melakukan pemboran lepas pantai," jelas Chalid.

Hasil pengeboran ditargetkan 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 di struktur Kujung.

Didik Susilo, Asset 4 General Manager PT Pertamina EP mengatakan bahwa Asset 4 merupakan salah satu aset yang paling lengkap dikarenakan selain memiliki lapangan minyak, ada juga tiga 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 empat tahun yang lalu," jelas Didik. 

"Semoga hasil pemboran ini sesuai dengan target yang telah diperhitungkan sebelumnya bahkan lebih tinggi lagi," tambah Didik.

Charles S Siallagan, Poleng Field Manager menjelaskan tim Asset 4 Poleng Field optimistis dengan pemboran Poleng N. 

"Kami berharap pemboran ini berjalan lancar dan bisa menambah produksi PT Pertamtna EP pada khususnya dan secara nasional pada umumnya," kata Charles.

Surya, Page-3, Friday, Sept 22, 2017

Industrial Engineering Form Consortium of Gas Pipes

Downstream Regulatory Agency (BPH) Migas decided PT Rekayasa Industri still working on the Cirebon-Semarang gas pipeline project. In the construction of the gas pipeline, Fanshurullah Asa, Head of the Downstream Oil and Gas Regulatory Agency (BPH Migas), said that Industrial Engineering will cooperate with PT Pertamina Gas (Pertagas), West Java BUMD and Central Java BUMD.

The four business entities will form a consortium of Cirebon-Semarang gas pipeline construction. Until now the consortium has just entered the process of feasibility study and design.

"As per commitment, early July they are groundbreaking," Fanshurullah said

Members of the BPH Migas Committee, Jugi Prajogio previously also mentioned Rekind will also hold LNG infrastructure investor, Itochu in the construction of the Cirebon-Semarang gas pipeline project. Meanwhile, gas supply will come from Eni Jangkrik LNG.

The Cirebon-Semarang gas pipeline project has been neglected for almost 11 years because there is no gas allocation and gas buyers. The construction of the gas pipeline is planned to be built along 255 km. The total investment value reaches approximately US $ 400 million.

Fanshurullah stated, BPH Migas will appoint a project management consultant who will oversee day to day progress of PT Rekayasa Industri.

"Begin the feasibility study and investment stage until EPC," he said.

The cost of this consultant will be included in the investment cost. The consultant fund will be charged to the investment cost.

IN INDONESIA

Rekayasa Industri Bentuk Konsorsium Pipa Gas

Badan Pengatur Hilir (BPH) Migas memutuskan PT Rekayasa Industri tetap mengerjakan proyek pipa gas Cirebon-Semarang. Dalam pembangunan pipa gas tersebut, Fanshurullah Asa, Kepala Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) mengatakan, Rekayasa Industri akan bekerja sama dengan PT Pertamina Gas (Pertagas), BUMD Jawa Barat dan BUMD Jawa Tengah.

Keempat badan usaha tersebut akan membentuk konsorsium pembangunan pipa gas Cirebon-Semarang. Hingga saat ini konsorsium baru saja masuk dalam proses feasibility study dan desain. 

"Sesuai komitmen, awal Juli mereka groundbreaking," kata Fanshurullah

Anggota Komite BPH Migas, Jugi Prajogio sebelumnya juga menyebut Rekind juga akan menggandeng investor infrastruktur LNG, yaitu Itochu dalam pembangunan proyek pipa gas Cirebon-Semarang. Sementara pasokan gas akan berasal dari LNG Eni Jangkrik.

Proyek pembangunan pipa gas Cirebon-Semarang sudah terbengkalai selama hampir 11 tahun karena tidak ada alokasi gas dan pembeli gas. Padahal pembangunan ruas pipa gas ini menurut rencana dibangun sepanjang 255 km. Total nilai investasi mencapai sekitar US$ 400 juta. 

Fanshurullah menyatakan, BPH Migas akan menunjuk project management consultan yang akan mengawasi day to day progres PT Rekayasa Industri. 

"Mulai tahap feasibility study dan investasi sampai EPC," ujarnya. 

Biaya konsultan ini akan masuk dalam biaya investasi. Dana konsultan nantinya akan dibebankan ke biaya investasi.

Kontan, Page-18, Friday, Sept 22, 2017

The Project Operates After 30 Years

Husky-CNOOC Madura Limited began supplying natural gas for industrial and power plant needs in East Java. BD Field gas project, Madura Strait Working Area, East Java, started production in July 2012 30 years since the gas source was discovered.

The BDL gas field project was inaugurated by Vice Minister of Energy and Mineral Resources (EMR) Arcandra Tahar, Babu (20/9), on the float of the Karapan Fleet Sterling III (FPSO) facility in the Madura Strait. Also present at the inauguration were General Manager Husky-CNOOC Madura Limited (HCML) Huang Chunlin and Sampang Regent Fadhilah Budiono.

Arcandra said the production of natural gas from BD Field is focused on supporting the needs of industries and power plants in East Java.

"Indonesia has yet to find another major source of oil and gas so it must optimize its small resources," said Arcandra.

Arcandra rate, the break between the time of discovery and the start of operations up to 30 years occurred, among others, due to inefficient licensing process. That experience should be learning. The local government is expected to cut the licensing process so that upstream oil and gas projects can be operated soon. Local governments are also asked not to issue non-value-added regulations for the upstream oil and gas industry.

The acceleration of upstream oil and gas project permit is needed because Indonesia is still dependent on oil and natural gas. The portion of oil and gas is still 69 percent in the primary energy mix.

"While the development and utilization of new and renewable energy has not been optimal," said Arcandra.

Chunlin, in his speech said, the project has the potential to produce gas of 100 million standard cubic feet per day (MMSCFD). However, to date, they have just produced 40 MMSCFD sold to PT Perusahaan Gas Negara Tbk since July 26, 2017. Natural gas purchased PGN for 7 US dollars per million metric british thermal unit (MMBTU).

After processing, natural gas is supplied to the HCML gas measurement station in Semare village, Pasuruan regency, East Java. Gas is piped through a 52 kilometer long undersea pipeline from the FPSO.

IN INDONESIA

Proyek Beroperasi Setelah 30 Tahun

Husky-CNOOC Madura Limited mulai memasok gas bumi untuk kebutuhan industri dan pembangkit listrik di Jawa Timur. Proyek gas bumi Lapangan BD, Wilayah Kerja Selat Madura, Jawa Timur, itu mulai berproduksi pada Juli 2012 30 tahun sejak sumber gas ditemukan. 

Proyek gas bumi Lapangan BD itu diresmikan Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar, Babu (20/9), di kapal fasilitas produksi, penyimpanan, dan pengangkutan terapung (FPSO) Karapan Armada Sterling III di Selat Madura. Turut hadir dalam peresmian di antaranya General Manager Husky-CNOOC Madura Limited (HCML) Huang Chunlin dan Bupati Sampang Fadhilah Budiono.

Arcandra mengatakan, produksi gas bumi dari Lapangan BD difokuskan untuk menunjang kebutuhan industri serta pembangkit listrik di Jawa Timur.

”Indonesia belum menemukan sumber migas lain yang besar sehingga harus mengoptimalkan sumber yang kecil,” ujar Arcandra.

Arcandra menilai, jeda antara waktu penemuan dan dimulainya operasi hingga 30 tahun terjadi antara lain karena proses perizinan yang tidak efisien. Pengalaman itu harus menjadi pembelajaran. Pemerintah daerah diharapkan memangkas proses perizinan sehingga proyek hulu migas bisa segera beroperasi. Pemerintah daerah juga diminta untuk tidak mengeluarkan peraturan yang tidak memiliki nilai tambah untuk industri hulu migas.

Percepatan izin proyek hulu migas dibutuhkan karena Indonesia masih bergantung pada minyak dan gas bumi. Porsi migas masih 69 persen dalam bauran energi primer. 

”Sementara pengembangan dan pemanfaatan energi baru dan terbarukan belum optimal,” kata Arcandra.

Chunlin, dalam sambutannya menyampaikan, proyek tersebut berpotensi memproduksi gas sebesar 100 juta standar kaki kubik per hari (MMSCFD). Namun, hingga saat ini, mereka baru saja memproduksi 40 MMSCFD yang dijual kepada PT Perusahaan Gas Negara Tbk sejak 26 Juli 2017. Gas bumi dibeli PGN dengan harga 7 dollar AS per juta metrik british thermal unit (MMBTU).

Seusai diproses, gas bumi disalurkan ke stasiun pengukuran gas milik HCML di Desa Semare, Kabupaten Pasuruan, Jawa Timur. Gas disalurkan melalui pipa bawah laut sepanjang 52 kilometer dari FPSO.

Kompas, Page-18, Friday, Sept 22, 2017

Exxon Increases Production from Banyu Urip Field

US oil and gas company, ExxonMobil Cepu Ltd (EMCL), successfully increased production capacity from Banyu Urip field in Cepu Block. Currently its capacity reaches 200 thousand barrels per day (bpd). That figure is equivalent to 25 percent of the total national oil production of about 800 nbs bph, "explained EMCL Field External Affairs Manager Dave A. Seta.

Therefore, EMCL is the largest contractor of oil and gas cooperation contract for Java, Bali and Nusa Tenggara region; Oil production from the Banyu Urip field was previously only 185 thousand bpd. However, since last July, the number increased to 200 thousand bpd. Banyu Urip Field has produced 30 million barrels per year.

Seeing the potential of Banyu Urip field production that can still be improved, EMCL plans to raise more production to reach an average of 201,600 bpd. The increase of Banyu Urip field production is good news in the middle of the stagnation of production of oil and gas ready for sale (lifting) in Indonesia

IN INDONESIA

Exxon Naikkan Produksi dari Lapangan Banyu Urip

Perusahaan minyak dan gas asal Amerika Serikat, ExxonMobil Cepu Ltd (EMCL), berhasil meningkatkan kapasitas produksi dari lapangan Banyu Urip di Blok Cepu. Saat ini kapasitasnya mencapai 200 ribu barel per hari (bph). Angka itu setara dengan 25 persen dari total produksi minyak nasional sekitar 800 nbu bph," terang Field External Affairs Manager EMCL Dave A. Seta. 

Dengan demikian, EMCL adalah kontraktor kontrak kerja sama migas terbesar untuk wilayah Jawa, Bali, dan Nusa Tenggara; Produksi minyak dari lapangan Banyu Urip sebelumnya hanya 185 ribu bph. Namun, sejak Juli lalu, jumlahnya meningkat menjadi 200 ribu bph. Lapangan Banyu Urip telah memproduksi 30 juta barel per tahun.

Melihat potensi produksi lapangan Banyu Urip yang masih bisa ditingkatkan, EMCL berencana menaikkan lagi produksinya sehingga mencapai rata-rata 201.600 bph. Kenaikan produksi lapangan Banyu Urip tersebut merupakan kabar gembira di tengah stagnasi produksi rninyak dan gas siap jual (lifting) di Indonesia

Jawa Pos, Page-5, Friday, Sept 22, 2017