February 2018, Petronas Adds Production from Two Additional Wells

Next year, Petroliam Nasional Berhad (Petronas) targets production to increase with the operation of two additional wells in the Ketapang oil and gas field in Ketapang block, Gresik. Malaysian companies playing in the upstream oil and gas sector in Indonesia are expecting the two wells to boost Petronas production in Ketapang Field to 50 Million Standard Cubic Feet Per Day (MMsFD). This was revealed by Senior Manager of Corporate Affairs and Administrative PC Muriah, Andiono Setiawan.

"We hope with the addition of two wells in February 2018 the production can be boosted to an optimum yield of 20,000 barrels per day (bpd), and gas production up to 50 mmsfd," said Andiono.

He said that at present from the oil and gas field on the north coast of Madura Island, Petronas's operations are capable of producing 37 mmsfd, and oil production is at 15,000 bph with five wells. He explained, two new wells which is prepared is the result of 2012 exploration, out of a total of nine existing well structures.

"Our target in February 2018 is that it maximizes gas production up to 50 mmsfd and oil production up to 20,000 bph, "he said.

Petronas Block

Meanwhile, the production of Petronas Bukit Tua field is flowed to PT PLN to support electricity supply in East Java through PT Petrogas Jatim Utama (PJU), BUMD owned by East Java Provincial Government. Petronas previously, in cooperation contract with PT PJU maximize gas supply up to 50 mmsfd, but now still about 37 mmsfd.

The oil and gas field of Bukit Tua Working Area (Ketapang) is located on the North Coast of Madura Island, East Java, and the cultivation of the field is evidence of Petronas to support upstream oil and gas investment in Indonesia.

Previously, WK Ketapang was officially signed as a "Production Sharing Contract (PSC)" contract between Petronas and the Government of Indonesia through the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) on June 11, 1998.

IN INDONESIA

Februari 2018, Petronas Tambah Produksi dari Dua Sumur Tambahan

Tahun depan, Petroliam Nasional Berhad (Petronas) menargetkan produksi akan bertambah dengan dioperasikannya dua sumur tambahan di lapangan minyak dan gas Bukit Tua blok Ketapang, Gresik. Perusahaan asal Malaysia yang bermain di sektor hulu minyak dan gas bumi (migas) di Indonesia itu mengharapkan dua sumur itu bisa mendorong produksi Petronas di Lapangan Ketapang mencapai 50 Million Standard Cubic Feet Per Day (MMsFD). Hal itu diungkapkan Senior Manager Corporate Affairs and Administrative PC Muriah, Andiono Setiawan. 

“Kami harap dengan tambahan dua sumur pada Februari 2018 produksi dapat digenjot hingga hasil optimum 20.000 barel per hari (bph), dan produksi gas hingga 50 mmsfd,” kata Andiono.

Ia mengatakan, saat ini dari lapangan migas di pantai utara Pulau Madura itu kegiatan operasi Petronas mampu memproduksi 37 mmsfd, dan produksi minyak berkisar di angka 15.000 bph dengan ekpslorasi sebanyak lima sumur. Ia menjelaskan, dua sumur baru yang disiapkan merupakan hasil eksplorasi tahun 2012, dari total sembilan struktur sumur yang ada. 

“Target kami Februari 2018 memang itu yakni memaksimalkan produksi gas sampai 50 mmsfd dan produksi minyak hingga 20.000 bph,” katanya.

Sementara itu, hasil produksi lapangan Bukit Tua Petronas dialirkan ke PT PLN untuk mendukung penyediaan listrik di Jawa Timur melalui PT Petrogas Jatim Utama (PJU), BUMD milik Pemerintah Provinsi Jatim. Petronas sebelumnya, dalam kontrak kerja sama dengan PT PJU memaksimalkan suplai gas hingga 50 mmsfd, namun kini masih sekitar 37 mmsfd.

Lapangan migas Bukit Tua Wilayah Kerja (WK) ,Ketapang berada di Pantai Utara Pulau Madura, Jawa Timur, dan penggarapan lapangan itu menjadi bukti Petronas untuk mendukung investasi sektor hulu migas di Indonesia.

Sebelumnya, WK Ketapang resmi ditandatangani sebagai kontrak “Production Sharing Contract (PSC) antara Petronas dengan Pemerintah Indonesia melalui Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) pada 11 Juni 1998. 

Duta Masyarakat, Page-16, Saturday, Sept 30, 2017

Industry Ministry requests product-based gas price

The lndustry Ministry has high hopes that gas prices for the industrial sector will be calculated based on commodity value rather than the often-used crude oil price.

Industry Minister Airlangga Hartarto said that he had asked the Energy and Mineral Resources Ministry to use such a calculation to help cut down prices in the downstream sector.

“We want to develop a gas based industry, however, we have a lot to work on, especially since the Energy and Mineral Resources [Ministry] tends to focus too much on global oil prices when setting the gas prices. We want it to be commodity-based,” he said recently.

President Joko “Jokowi” Widodo ordered his Cabinet to cut enduser gas prices to below US$ 6 per million British thermal units (mmbtu) in seven industrial sectors to develop the downstream sector and create a significant multiplier effect in the economy. However, only state-owned petrochemical, fertilizer and steel industries were privy to the price cut that started on Jan. 1, following the issuance of a ministerial decree from the Energy and Mineral Resources Ministry late last year.

The gas prices in four different industries - oleo chemical, glass, ceramics and rubber gloves remains in limbo, as the ministerial decree only allows gas price cuts for state-owned companies in the petrochemical, fertilizer and steel industries. The Industiy Ministry revealed earlier this year that 86 firms from the petrochemical, fertilizer, steel, glass and ceramics sectors were being evaluated

to see whether they could receive gas supplies at a low cost.

Of the 86 firms, eight are from the petrochemical, steel and fertilizer sectors, while the remaining 78 are from the ceramics and glass sectors. At around $ 9 per mmbtu at its plant gate, Indonesia’s gas price is considered much higher than most ofits Southeast Asian neighbors. Gas in Malaysia and Singapore is said to hover at around $ 4 per mmbtu.

The Energy and Mineral Resources Ministry identified the midstream sector as the source of high gas prices at the plant gate. However, even by cutting down costs in the midstream, it may be difficult to set a price that suits both the upstream gas producers and the downstream providers.

“Gas prices really depend on several things, including location and the gas source itself. So not all cases are apples to apples,” Energy and Mineral Resources deputy minister Arcandra Tahar said. The lack of agreement on how to calculate gas prices has spurred hesitation from investors who are interested in developing industries near the planned Masela gas block in Maluku, Airlangga said.

The potential investors, which include state-owned firm PT Pupuk Indonesia, PT Kaltim Methanol Industry and PT Elsoro Multi Pratama, have asked for a gas price of $3 per mmbtu. ReforMiner Institute founder Pri Agung Rakhmanto said that the easiest way to cut down on gas prices would be by decreasing state revenues from the upstream sector and also by cutting down the toll fee in the midstream. 

However, Wood Mackenzie senior analyst for gas and power, Edi Saputra, was not so sure about the Industry Ministry’s suggestion to align gas prices with the end-product, arguing it would expose the gas industry to complicated risks.

“Gas, like oil, is a commodity on its own and has its own fundamental supply and demand dynamics,” he said.

Jakarta Post, Page-14, Saturday, Sept 30, 2017

Pertamina, PGN join hands to supply LNG in central Republic of Indonesia

State-owned energy companies PT Perusahaan Gas Negara (PGN) and Pertamina are set to join forces to supply liquefied natural gas (LNG) to various power plants operated by state electricity firm PLN in the central part of Indonesia. In 2015, PLN started the auction process for the development of LNG infrastructures and the procurement of 230 million standard cubic feet per day (MMSCFD) of LNG for its 32 gas-fueled power plants in Kalimantan, Sulawesi and East Nusa Tenggara (NTT) islands. 

Those facilities were expected to have a total capacity of 2,800 megawatts (MW). However, PLN eventually delayed the tender following its decision to make several adjustments such as excluding power plants in Bali, Gorontalo and Pontianak to make the project more efficient. As a result, the total supply of LNG sought by PLN was reduced to 200 MMSCFD.

PLN has awarded the tender to PGN and Pertamina, which will establish a consortium to develop various LNG infrastructures, including storage and regasification facilities, under the build-operate-transfer (BOT) scheme and procure small-to-medium carriers to transport the LNG.

“PGN and Pertamina have discussed the investment needed for the project. Now we just have to wait for the evaluation from PLN,” PGN president director Jobi Triananda Hasjim said recently without disclosing the investment figure.

“We are still considering whether to buy new LNG carriers or utilize the existing ones because the investment needed for such facilities is not cheap. It is also possible for- us to team up with private investors to procure the carriers.” 

Jobi said central and east Indonesia were interesting markets for PGN because, as of today, people in those regions still relied heavily on liquefied petroleum gas (LPG) that was more expensive compared to LNG. However, PGN can only penetrate those markets if there is an “anchor buyer” like PLN that will ensure a long-term massive demand for LNG.

That is why PGN has submitted a number of tender bids for contracts with PLN, including for the development of LNG infrastructure in Bangka Belitung, Pontianak and Nias to supply LNG to six power plants in those three regions with capacities ranging from 25 MW to 100 MW each.

“For instance, when we are able to supply LNG to Pontianak [in West Kalimantan, the demand for industrial gas in the region will also increase, so will the demand for gas from commercial and household sectors,” Jobi said. Pertamina also signed on Thursday a gas sales agreement with PLN to supply LNG for the latter’s gas-fueled power plants in Sambera, East Kalimantan, with a capacity of 2 X 20 MW.

    The agreement will pave the way for Pertamina to supply 7.9 MMSCFD of LNG within five years starting from April 2018.  Therefore, the firm will prepare the regasification facilities and at least 20 ISO shipping containers to transport the LNG.

“This kind of LNG transportation system will help us penetrate remote areas that have yet to be reached by pipelines, as well as support the governments 35,000 MW electricity program,” Pertamina gas director Yenni Andayani said.

Furthermore, when the industrial and commercial markets as well as the infrastructure have been developed in remote regions, it will be easier for PGN and Pertamina to build more city gas networks as mandated by the government.

Jakarta Post, Page-14, Saturday, Sept 30, 2017

Oil and gas exploration realization is still low

The realization of oil and gas exploration activities in the country to date is still low so the target of this year is projected will not be achieved. Deputy Planning of Oil and Gas Upstream Business Unit (SKK Migas) Jaffee Arizon Suardin said that from the data recorded, the realization of seismic survey only reached 22%.

The target of seismic survey in workplan and budget (WP & B) 2017 is 45 activities, but it is estimated that until the end of the year it will only increase to 11 activities. Meanwhile, for non seismic survey activities, the achievement was 69% with 11 non seismic survey activities from the target of 16 activities.

In the next three months, SKK Migas projects an additional seismic survey activity. For drilling activities, the current achievement of 29% with the realization of 40 drilling activities, from the target of 138 activities. By the end of 2017, drilling is projected to turn into 44 activities. With the prognosis of 2017 exploration activities, it was forced to move the activities that should be realized in this year to next year.

"Not achieved. Inevitably there are many activities that we move to 2018 2017, "he said in a presentation at the Office of SKK Migas, Friday (29/9). He acknowledged that investment trends in the exploration work area have declined since 2012. The highest realization ever recorded was in 2011 with Rp 18.3 trillion spent on exploration work areas.

However, the achievement of the downward trend, ie Rp 12.3 trillion in 2012, Rp13, 2 trillion in 2013 and Rp 12.9 trillion in 2014. In 2015 amounted to Rp 6.3 trillion, 2016 Rp 4.2 trillion and targeted in 2017 Rp 11.6 trillion. Nevertheless, the portion of exploration activities contributed the highest contribution of only about 10% compared with exploitation activities. 

    He hopes that in the next few years exploration activities can increase. Because, at present, only 60% of oil production is replaced, while gas production has been replaced by 100%. In fact, there is still the potential to get a new source of reserves even in the production work area.

Not yet developed

SKK Migas has conducted mapping of 13 areas of oil and gas exploitation work that still have undeveloped potential. Noted there is a sleeping area of ​​25% of the total area of ​​the WK. Meanwhile, in 25 working areas that will expire contract until 2021, only 15% and the work areas that have been produced. To increase exploration activities, he said, the government is trying to solve problems inhibiting investment.

For example, he mentioned incentives in Government Regulation no. 27/2017 on Recoverable Oil and Gas Operating Costs for existing contractors, revised gross split contracts, namely Minister of Energy and Mineral Resources Regulation no. 52/2017 on Gross Split Contracts.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that the success rate of searching for new reserves in Indonesia is low. Of the exploration activities conducted only 20% or even less of which are likely to indicate the existence of hydrocarbons. 

    He mentioned that the success rate could be raised one of them with the use of more data. For example, he mentions the fund base per basin so that it can get a more comprehensive and accurate picture.

"Success ratios generally for exploration may be below 20%. Someone said 15%. If they drilled five or 10 wells, if successful maybe only two wells, "he said.

IN INDONESIA

Realisasi Eksplorasi Migas Masih Rendah

Realisasi kegiatan eksplorasi minyak dan gas bumi di Tanah Air hingga saat ini masih rendah sehingga target tahun ini diproyeksikan tidak akan tercapai. Deputi Perencanaan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Jaffee Arizon Suardin mengatakan bahwa dari data yang tercatat, realisasi survei seismik baru mencapai 22%. 

Target survei seismik dalam rencana kerja dan anggaran (work plan & budget/WP&B) 2017 sebanyak 45 kegiatan, tetapi diperkirakan hingga akhir tahun hanya akan bertambah menjadi 11 kegiatan. Sementara itu, untuk kegiatan non survei seismik, capaiannya 69% dengan 11 kegiatan survei non seismik dari target 16 kegiatan. 

Dalam tiga bulan ke depan, SKK Migas memproyeksikan ada satu tambahan kegiatan survei seismik. Untuk kegiatan pengeboran, capaian saat ini sebesar 29% dengan realisasi 40 kegiatan pengeboran, dari target 138 kegiatan. Pada akhir 2017, pengeboran diproyeksi berubah menjadi 44 kegiatan. Dengan prognosa kegiatan eksplorasi 2017, pihaknya terpaksa memindahkan kegiatan yang seharusnya terealisasi di tahun ini ke tahun depan. 

“Tidak tercapai. Mau tidak mau ada banyak kegiatan yang 2017 kita pindahkan ke 2018,” ujarnya dalam paparan di Kantor SKK Migas, Jumat (29/9). Dia mengakui tren investasi pada wilayah kerja eksplorasi menurun sejak 2012. Realisasi tertinggi yang pernah dicatatkan yakni pada 2011 dengan Rp 18,3 Triliun yang dibelanjakan untuk wilayah kerja eksplorasi. 

Namun, capaian kecenderungannya turun, yakni Rp 12,3 triliun pada 2012, Rp13,2 triliun di 2013 dan Rp 12,9 triliun pada 2014. Pada 2015 sebesar Rp 6,3 triliun, 2016 Rp 4,2 triliun dan pada 2017 ditargetkan tercapai Rp 11,6 triliun. Kendati demikian, porsi kegiatan eksplorasi kontribusi tertingginya hanya sekitar 10 % dibandingkan dengan kegiatan eksploitasi. 

    Dia berharap agar pada tahun-tahun rnendatang kegiatan eksplorasi bisa bertambah. Pasalnya, saat ini, baru 60% produksi minyak yang tergantikan, sedangkan produksi gas sudah tergantikan hingga 100%. Padahal, masih terdapat potensi untuk mendapat sumber cadangan baru bahkan pada wilayah kerja produksi. 

Belum dikembangkan 

SKK Migas telah melakukan pemetaan terhadap 13 Wilayah kerja migas eksploitasi yang masih memiliki potensi yang belum dikembangkan. Tercatat ada sleeping area seluas 25% dari total area WK tersebut. Sementara itu, pada 25 wilayah kerja yang akan habis masa kontraknya hingga 2021, hanya 15% dan wilayah kerja yang telah menghasilkan. Untuk meningkatkan kegiatan eksplorasi, dia menyebut, pemerintah berupaya menyelesaikan  masalah-masalah penghambat investasi. 

Sebagai contoh, dia menyebut insentif dalam Peraturan Pemerintah No. 27/2017 tentang Biaya Operasi Migas yang Dapat Dikembalikan untuk kontraktor yang sudah ada, revisi kontrak bagi hasil kotor (gross split), yaitu Peraturan Menteri ESDM No. 52/2017 tentang Kontrak Gross Split. 

Wakil Menteri ESDM Arcandra Tahar mengatakan bahwa tingkat keberhasilan pencarian sumber cadangan baru di Indonesia memang tergolong rendah. Dari kegiatan eksplorasi yang dilakukan hanya 20% bahkan kurang di antaranya yang kemungkinan bisa menunjukkan adanya hidrokarbon. 

    Dia menyebut bahwa tingkat keberhasilan bisa dinaikkan salah satunya dengan penggunaan data yang lebih banyak. Sebagai contoh, dia menyebut basis dana per cekungan sehingga bisa mendapatkan gambaran yang lebih komprehensif dan akurat. 

“Success ratio umumnya untuk eksplorasi mungkin di bawah 20%. Tadi ada yang mengatakan 15%. Kalau mereka ngebor lima atau 10 sumur, kalau sukses mungkin hanya dua sumur” katanya. 

Bisnis Indonesia, Page-19, Saturday, Sept 30, 2017

PGN to Boost LNG Business in Eastern Indonesia

The state-owned gas company, PT Perusahaan Gas Negara (PGN) Tbk, is expanding its business. According to PGN President Director Trijianda Hasjim Jobi, PGN's traditional business is in the field of gas distribution and infrastructure. Currently PGN also develops other business such as LNG business.

This LNG business will be developed in Central and Eastern Indonesia. This is in line with the shift in gas demand from Western Indonesia Region such as Java to Central Indonesia Region and East Indonesia.

Masela Block

"Demand in the middle and east is everywhere, gas sources are not near, in the east there is only the Tangguh-Papua Block, Masela Block also still need development if the middle one is Bontang Refinery .This is what we try coupled with the capital only with LNG, so we have a subsidiary of PGN LNG Indonesia to see it All, "said Jobi, Thursday (28/9).

The expansion agenda is also in line with the expectations of the Minister of Energy and Mineral Resources (ESDM) Ignatius Jonan. At the Mining and Energy Expo 2017 which took place on Tuesday (26/9), Jonan asked PGN to be more creative in developing its business.

IN INDONESIA

PGN Akan Genjot Bisnis LNG di Indonesia Timur

Perusahaan gas milik pemerintah, PT Perusahaan Gas Negara (PGN) Tbk, sedang melebarkan bisnis. Menurut Direktur Utama PGN Jobi Triananda Hasjim, bisnis tradisional PGN memang di bidang distribusi dan infrastruktur gas. Saat ini PGN juga mengembangkan bisnis lainnya seperti bisnis LNG. 

Bisnis LNG ini akan Coba dikembangkan di Indonesia Tengah dan Indonesia Timur. Ini sejalan dengan pergeseran kebutuhan gas dari Wilayah Indonesia Barat seperti Jawa ke Wilayah Indonesia Tengah dan Indonesia Timur. 

"Demand di tengah dan timur itu ada di mana-mana, sumber gas tidak ada yang dekat. Di timur itu yang ada hanya Blok Tangguh-Papua, Blok Masela juga masih perlu pengembangan. kalau yang di tengah ada Kilang Bontang. Inilah yang kami coba rangkai. Modalnya hanya bisa dengan LNG, makanya kami punya anak perusahaan PGN LNG Indonesia untuk melihat itu Semua," jelas Jobi, Kamis (28/9). 

Agenda ekspansi itu juga sesuai dengan harapan Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan. Pada acara Pertambangan dan Energi Expo 2017 yang berlangsung Selasa (26/9), Jonan meminta PGN lebih kreatif dalam mengembangkan bisnisnya.

Kontan, Page-11, Saturday, Sept 30, 2017

Oil and Gas Exploration Activity in Indonesia Continues to Drop

Special Unit for Upstream Oil and Gas Upstream Activities (SKK Migas) continues to oversee the commitment of Oil and Gas Contractors Contractors (KKKS) to keep exploring. Because, without exploration, Indonesia will not find new oil reserves. Sukandar Deputy Head of SKK Migas stated that the step of SKK Migas is done so that in the future Indonesia has new reserves.

Because, upstream oil and gas business is determined from exploration activities. Indeed oil and gas exploration activities such as stalled since the price of crude oil fell in 2014 ago. SKK Migas notes since 2011, investment in exploration activities in the Working Areas (WK) exploitation and exploration continues to decline. In 2014, the total exploration cost reached Rp 31.01 trillion. But in the second semester-2017 new Rp 11.6 trillion.

Sukandar suspect, the downward trend in oil and gas exploration investment is also due to the world's crude oil prices are not enthusiastic. In addition, SKK Migas notes the failure of deep sea exploration in eastern Indonesia in the period 2006-2012. Other causes still have rules that are considered to inhibit investment, and non technical constraints such as licensing, social conditions, as well as financial problems contractors.

Deputy of SKK Migas Planning, Jaffee Arizon Suardin added that oil and gas investment also continues to decline. For example, in 2012, 2D seismic realization was recorded along 11,739 km. By 2016, the number decreased to 5,421 km. The realization of 3D survey in 2012 covering an area of ​​2683 km2. In 2016, it rose to 7,386 km2. 

    While exploration drilling, in 2012 as many as 96 wells. This amount is down to 34 wells by 2016. The government has been working to improve the rules in order to improve exploration. As regulation of Government Regulation (PP) No.27 of 2017, gross split incentive. Duty free exemption and tax incentives.

IN INDONESIA

Aktivitas Eksplorasi Migas di Indonesia Terus Melorot

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) terus berupaya mengawasi komitmen Kontraktor Kontrak Kerja Sama (KKKS) migas agar tetap melakukan eksplorasi. Sebab, tanpa eksplorasi, Indonesia tidak akan menemukan cadangan minyak baru. Sukandar Wakil Kepala SKK Migas menyatakan, Iangkah SKK Migas dilakukan agar di masa Indonesia memiliki cadangan baru. 

Karena, bisnis hulu migas ditentukan dari kegiatan eksplorasi. Memang kegiatan eksplorasi migas seperti terhenti semenjak harga minyak mentah turun tahun 2014 lalu.  SKK Migas mencatat sejak tahun 2011, investasi kegiatan eksplorasi di Wilayah kerja (WK) eksploitasi maupun eksplorasi terus menurun. Pada 2014, total biaya eksplorasi mencapai Rp 31,01 triliun. Tapi masuk semester II-2017 baru Rp 11,6 triliun. 

Sukandar menduga, tren penurunan investasi eksplorasi migas juga akibat harga minyak mentah dunia tidak bergairah. Selain itu, SKK Migas mencatat gagalnya eksplorasi di laut dalam di wilayah Timur Indonesia pada periode 2006-2012. Penyebab lain masih ada aturan yang dianggap menghambat investasi, dan kendala non teknis seperti perizinan, kondisi sosial kemasyarakatan, maupun masalah keuangan kontraktor. 

Deputi Perencanaan SKK Migas, Jaffee Arizon Suardin menambahkan, investasi migas juga terus menurun. Misalnya, pada 2012, realisasi seismik 2D tercatat sepanjang 11.739 km. Pada tahun 2016, jumlahnya turun menjadi 5.421 km. Adapun realisasi survei 3D pada 2012 seluas 2.683 km2. Pada 2016, naik menjadi 7.386 km2.  

     Sedangkan pengeboran eksplorasi, pada 2012 sebanyak 96 sumur. Jumlah ini turun menjadi 34 sumur pada 2016. Pemerintah sudah berupaya memperbaiki aturan agar bisa meningkatkan eksplorasi.  Seperti penertiban Peraturan Pemerintah (PP) No.27 Tahun 2017, insentif gross split. Pembebasan bebas bea masuk dan insentif pajak.  

Kontan, Page-11, Saturday, Sept 30, 2017

Pertamina Domination of Mahakam Block

Minister of Energy and Mineral Resources Ignasius Jonan confirmed that PT Pertamina must control at least 51% or control the majority of shares in Mahakam block, East Kalimantan.

 "The bottom line is Pertamina must own 51% of the shares, while the remaining 10% is for regional ownership," he said in Jakarta yesterday.

In accordance with the rules, as much as 10% of the participating interest (PI) or shareholding share must be submitted to the region. If 10% is owned by the region and Pertamina is required to own 51%, the remaining 39% stake in Mahakam block. For the issue of 39%, the government fully surrendered to PT Pertamina, whether to share down with other companies or not. It will be agreed on a business to business basis (B to B).

The Mahakam Block

In addition, the government asked two things to Pertamina related to the Mahakam Block. The first cost recovery or production cost should not be greater than the current operator's cost, that is Total E & P.

The second result of oil and gas production produced by Pertamina will not be less than that produced by Total E & P at this time. Even if the production decreases, it should be discussed with the government first to provide logical certainty of the achievement of production.

PT Pertamina through Pertamina Hulu Mahakam has been appointed by the government to be the manager of the Mahakam Block working area effective January 1, 2018, after the end of the Mahakam Production Contract (PSC) in the management of Total E & P Indonesie by the end of 2017.

On that occasion, Jonan said in addition to trying to boost oil and gas production and renewable energy (EBT) the Ministry of Energy and Mineral Resources is focusing on the quality of oil and gas output to be absorbed by the market well. This year, ESDM gives an oil production target of 815 thousand barrels per day.

IN INDONESIA

Pertamina Dominasi Saham Blok Mahakam 

Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan menegaskan PT Pertamina harus menguasai minimal 51% atau menguasai mayoritas saham di Blok Mahakam, Kalimantan Timur.

 "Intinya Pertamina harus memiliki 51% saham, sisanya 10% untuk kepemilikan daerah. Nah, untuk saham sisanya, ini terserah pengaturannya oleh Pertamina,” katanya di Jakarta, kemarin.

Sesuai dengan aturan, sebanyak 10% dari participating interest (PI) atau bagian kepemilikan saham harus diserahkan kepada daerah. Jika 10% dimiliki daerah dan Pertamina wajib memiliki 51%, akan sisa 39% saham di Blok Mahakam. Untuk persoalan 39% tersebut, pemerintah menyerahkan sepenuhnya kepada PT Pertamina, apakah akan share down dengan perusahaan lain ataukah tidak. Hal itu akan disepakati secara business to business (B to B).

Selain itu, pemerintah meminta dua hal kepada Pertamina terkait dengan Blok Mahakam. Yang pertama cost recovery atau ongkos produksi tidak boleh lebih besar daripada biaya yang digunakan operator saat ini, yaitu Total E&P.

Hal kedua hasil produksi migas yang dihasilkan Pertamina nantinya tidak boleh kurang dari yang dihasilkan Total E&P saat ini. Kalaupun hasil produksi menurun, hal tersebut harus didiskusikan dengan pemerintah terlebih dulu untuk memberikan kepastian logis dari capaian produksi tersebut.

PT Pertamina melalui Pertamina Hulu Mahakam telah ditunjuk pemerintah menjadi pengelola wilayah kerja Blok Mahakam yang berlaku efektif 1 Januari 2018, setelah berakhirnya masa production sharing Contract (PSC) Mahakam dalam pengelolaan Total E&P Indonesie pada akhir 2017.

Dalam kesempatan itu, Jonan mengatakan di samping berusaha untuk menggenjot hasil produksi migas dan energi baru terbarukan (EBT) Kementerian ESDM sedang memfokuskan pada kualitas hasil migas agar dapat diserap pasar dengan baik. Tahun ini, ESDM memberikan target produksi minyak 815 ribu barel per hari.

Media Indonesia, Page-18, Friday, Sept 29, 2017

Hopes pinned on EOR to maintain oil lifting

As oil lifting is set to fall short of its target this year, the government plans to require all upstream contractors to include enhanced oil recovery (EOR) activities in their development plans for various fields across the country. Indonesia’s oil lifting, the colloquial term for ready-to-sell production, reached 792,000 barrels of oil per day (bopd) in August, far below the full-year target of 815,000 bopd.

At the same time, gas lifting stood at 1.13 million barrels of oil equivalent per day (boepd), just slightly below the total target of 1.15 million boepd this year.

“We won’t be able to meet the oil lifting target of 815,000 bopd before the end of the year,” Energy and Mineral Resources Minister Ignasius Jonan told reporters on Thursday “But for gas, I believe we can surpass the target by 10 percent to around 1.2 million boepd.”

The governments plan is in the wake of the country’s shrinking oil reserves of 2,959 million stock tank barrels (mmstb) at the end of last year, from around 5,000 mmstb in the early 2000s, due to lack of new discoveries.

To slow down the decline, the ministry’s oil and gas director general Ego Syahrial has discussed the plan with SKK Migas to require all upstream contractors to conduct EOR activities from the initial development phase of the fields.

The government has estimated that 2.5 billion barrels of oil in reserves can be recovered through EOR activities by 2050. Till this time, contractors have proposed to conduct EOR activities by the time the oil fields have already been depleted, which means that the risks and costs are larger,” Ego said. 

“So, we suggest all contractors implement EOR as early as possible by including it in their plan of development [POD].”

Ego explained that, in general, contractors could only exploit 20 percent of oil reserves in one field, which could be lifted to 40 percent by implementing the EOR in the initial phase of development. However, he also said that EOR could only be implemented in certain oil fields with remaining reserves of more than 50 million barrels and low-complexity geological conditions.

Furthermore, Ego said that his side would try to speed up the drafting of a new decree on open data systems, which will make oil and gas held data, including data on reserves, accessible online by registered viewers.

He expected such transparency could lure prospective investors to explore various oil and gas working areas, especially in the eastern part of the country. Indonesia currently has 128 oil and gas basins, 50 percent of which are located in the eastern regions. 

“Of all oil and gas basins, there are 40 located in eastern regions that have yet to be explored. So if we’re talking about a strategy to boost the country’s production and reserves, we should be focusing on the potential in the east,” Ego said.

Investment in the oil and gas sector 'only reached US$4.8 billion in the first half of 2017, representing 21.6 percent of the full year target. Of the figure, contractors spent a mere $30 million for exploration activities, making it more difficult for the country to find new discoveries against the backdrop of declining oil production in contrast to ever-growing domestic consumption.

State revenues from the oil and gas sector also fell significantly to Rp 83.8 trillion ($6.2 billion) in 2016, from Rp 320.25 trillion'in 2014. Fortunately Indonesia has been able to collect Rp 92.43 trillion in revenues from the sector in the first nine months of this year, already surpassing last year’s figure, following a recovery in global oil prices.

Jakarta Post, Page-14, Friday, Sept 29, 2017

ESDM Wait for Pertamina's Stance on Mahakam Block Composition

The Ministry of Energy and Mineral Resources (ESDM) is waiting for a letter from PT Pertamina regarding the composition of Mahakam Block participation shares in East Kalimantan. But the government-owned energy company was asked to maintain ownership of at least 51%. ESDM Minister Ignasius Jonan said the government 100% handed over Mahakam management to Pertamina.

Of that amount as much as 10% intended for local government. While the remaining 90% of shares are left entirely to Pertamina. Whether to share with Total E & P Indonesie or not become Pertamina's business decision.

"We are waiting if Pertamina needs to share 39% down, write to us, it is up to Pertamina share down how much Pertamina must be at least 51%," said Jonan in Jakarta, Thursday (28/9).

Total is the current operator of the Mahakam Block. Total contract period ends in about three months. The Government has decided not to extend the Total contract and submit it to Pertamina. With so on January 1, 2018 the management of the Mahakam Block is in the hands of Pertamina.

The Mahakam Block

Jonan confirmed there are two requests the government must run Pertamina. First, the amount of cost recovery should not exceed the existing one. Second, maintain or increase the production amount of the block. Do not let the transfer of managers actually make the production level decreased. If the decline in production occurs then there will be a discussion about it.

"The government only asks two and this is not negotiable," he said.

Total had previously sent a letter expressing interest in buying a 39% stake in the Mahakam Block. This 39% share is a joint for Total and Inpex Corporation which each have a 19.5% share, if the proposal is approved.

Upstream Director of Pertamina Syamsu Alam previously admitted to knowing the existence of a letter from Total to the government. Now it is working on asset valuation Mahakam block. It's just that Nature does not specify when this valuation is completed.

"Regarding how much will be shared down, we follow the government's decision," he said.

Pertamina has signed a new Mahakam Bloc contract starting from 1 January 2018 at the end of 2015. Under the contract, the company promised a signature bonus of US $ 41 million. In addition, state revenues from production bonuses include US $ 5 million from a cumulative production of 500 million barrels of oil equivalent, of US $ 4 million from a cumulative production of 750 million barrels of oil equivalent, and US $ 4 million from a cumulative production of 1,000 million barrels of oil equivalent.

IN INDONESIA

ESDM Tunggu Sikap Pertamina soal Komposisi Blok Mahakam

Kementerian Energi dan Sumber Daya Mineral (ESDM) menunggu surat dari PT Pertamina terkait komposisi saham partisipasi Blok Mahakam di Kalimantan Timur. Namun perusahaan energi milik pemerintah itu diminta tetap mempertahankan kepemilikan minimal 51%. Menteri ESDM Ignasius Jonan mengatakan pemerintah 100% menyerahkan pengelolaan Mahakam kepada Pertamina. 

Dari jumlah itu sebanyak 10% diperuntukan bagi pemerintah daerah. Sedangkan 90% saham sisanya diserahkan sepenuhnya kepada Pertamina. Apakah mau membagi dengan Total E&P Indonesie atau tidak menjadi keputusan bisnis Pertamina.

"Kami sedang menunggu kalau Pertamina butuh share down 39%, tulis surat kepada kami. Itu terserah Pertamina share down berapapun boleh hanya Pertamina minimal harus 51%," kata Jonan di Jakarta, Kamis (28/9).

Total merupakan operator Blok Mahakam saat ini. Masa kontrak Total berakhir sekitar tiga bulan lagi. Pemerintah telah memutuskan tidak memperpanjang kontrak Total dan menyerahkan kepada Pertamina. Dengan begitu terhitung 1 Januari 2018 pengelolaan Blok Mahakam berada di tangan Pertamina.

Jonan menegaskan ada dua permintaan pemerintah yang harus dijalankan Pertamina. Pertama, jumlah cost recovery tidak boleh melebihi yang eksisting. Kedua, mempertahankan atau meningkatkan jumlah produksi dari blok tersebut. Jangan sampai peralihan pengelola malah membuat tingkat produksi menurun. Bila penurunan produksi terjadi maka akan ada pembahasan mengenai hal tersebut. 

"Pemerintah cuma minta dua dan ini tidak bisa ditawar," tegasnya.

Total sebelumnya telah mengirimkan surat yang menyatakan minatnya membeli 39% saham partisipasi Blok Mahakam. Saham 39% ini merupakan gabungan untuk Total dan Inpex Corporation yang masing-masing memiliki jatah 19,5%, jika usulan itu disetujui.

Direktur Hulu Pertamina Syamsu Alam sebelumnya mengakui mengetahui adanya surat dari Total ke pemerintah itu. Kini pihaknya sedang mengerjakan valuasi aset Blok Mahakam. Hanya saja Alam tidak merinci kapan valuasi ini rampung. 

"Mengenai berapa besar yang akan di-share down, kami mengikuti keputusan pemerintah," ujarnya. 

Pertamina telah meneken kontrak baru Blok Mahakam yang berlaku mulai 1 Januari 2018 pada akhir 2015 lalu. Dalam kontrak itu, perseroan menjanjikan bonus tanda tangan US$ 41 juta. Selain itu juga penerimaan negara dari bonus produksi meliputi US$ 5 juta dari kumulatif produksi 500 juta barel setara minyak, sebesar US$ 4 juta dari kumulatif produksi 750 juta barel setara minyak, dan US$ 4 juta dari kumulatif produksi 1.000 juta barel setara minyak.

Investor Daily, Page-11, Friday, Sept 29, 2017

October, Jambaran-Tiung Biru Official So Pertamina

PT Pertamina will hold the majority ownership of 91%, at the Jambaran-Tiung Biru Project in the next two weeks. Now Pertamina and ExxonMobil are still completing the administration of the transfer of ownership rights.

As reported by letter No. 9/13 / MEM.M / 2017 dated January 3, 2017, the government through the Ministry of ESDM ordered Pertamina c.q. PT Pertamina EP Cepu (PEPC) to fully develop the JTB Field, and complete the process of transferring the field with a business scheme with ExxonMobil Cepu Limited. It is necessary that the Project Jambaran-Tiung Biru can be done immediately.

President Director of PT Pertamina EP Cepu (PEPC) Adriansyah said the company and ExxonMobil have reached agreement on the transfer of ownership. However, both still have to finalize the administrative problems of the agreement. Primarily, administrative affairs at ExxonMobil's internal headquarters-in the United States.

"This transfer of ownership is almost over, at most two weeks from now it's done. Hope it can be faster, "he said.

Prior to the transfer of rights, ownership, PEPC became operator and with ExxonMobil in Jambaran-Tiung Biru with 41.4% ownership portion. Regional-owned enterprises (BUMD) have 9.2% and the remaining 8% is controlled by Pertamina EP. When the transition is over, PEPC will control 82.8% ownership rights in the Jambaran-Tiung Biru Field. In addition to Pertamina EP, Pertamina holds 91% ownership interest.

He explained that the transfer of ownership rights is not the acquisition of participating interest (PI), but the application of a permanent sole risk scheme. That is, Pertamina took over the ownership of ExxonMobil in Lapangan Jambaran, as well as its obligations. Instead, ExxonMobil no longer holds any rights to anything in this project.

In fact, it must also bear the obligation to drill a well that had previously been ExxonMobil's quota. Originally, both Pertamina EP Cepu and ExxonMobil each financed the drilling of three wells. After the transfer of ownership rights is completed, these six wells must be funded by Pertamina EP Cepu.

"We are ready to drill two wells next year," he said.

The Jambaran-Tiung Biru project is planned for completion in 36 months. The investment required in the Jambaran-Tiung Biru Project is also the responsibility of Pertamina. The investment of this project has been cut from the beginning of US $ 2.1 billion in the plan of development (POD), to US $ 1.54 billion. Impact, PEPC must make adjustments to the price of procurement contracts such as the cost of information technology to the salary of the workforce.

After the transfer of ownership has been formally completed, after which the gas sale and purchase agreement (PJBG) with PT Perusahaan Lisirik Negara can be signed. Because the transfer of rights to the right to contain aspects of taxation. Thus, PJBG needs to wait for the transfer of rights process.

"If without tax ruling its forming factor (PJBG) is still variable," he said.

It hopes that the agreed gas price of US $ 7.6 per million british thermal unit / MMbtu flat during the contract period at PLN plant gate. It will also try to make the Project Jambaran-Tiung Biru can be completed on time. This is to say, if two things do not happen, the project economy will continue to fall. Although Pertamina has received 5% profit sharing, the contractor gets 45%.

The Jambaran-Tiung Biru project has a high complexity with 34% carbon dioxide and 330 million cubic feet per day / MMscfd gas processing facility. Meanwhile, the selling gas produced is 172 Mmscfd, of which 100 MMscfd will be sold to PLN and the rest is supplied to the surrounding industry.

The ground breaking of the Jambaran-Tiung Biru Project was carried out at the beginning of last week. Prior to that, Pertamina also has been working on the construction of wells and roads in the Field Jambaran-Tiung Biru. Not only that, engineering work (engineering) has also been done. With these advances, Pertamina is optimistic that the Jambaran-Tiung Biru Project will produce 2021.

Not just working on the upstream side, Pertamina is also building a transmission pipeline Gresik-Semarang through another subsidiary, PT Pertamina Gas (Pertagas). The pipeline with an investment value of US $ 515.7 million will extend along 267 kilometers (km) with a capacity of 500 MMscfd. 

    The pipeline, equipped with 19 future connections, has the potential to channel gas to industries in seven districts along Central Java and East Java that pass through the pipeline. The project will start operating by 2018.

IN INDONESIA

Oktober, Jambaran-Tiung Biru Resmi Jadi Milik Pertamina

PT Pertamina akan menjadi pemegang hak kepemilikan mayoritas, yakni 91%, di Proyek Jambaran-Tiung Biru dalam dua pekan mendatang. Kini Pertamina dan ExxonMobil masih merampungkan administrasi pengalihan hak kepemilikan ini.

Seperti diketahaui, melalui Surat No 9/ 13/MEM.M/2017 tertanggal 3 Januari 2017, pemerintah melalui Kementerian ESDM memerintahkan Pertamina c.q. PT Pertamina EP Cepu (PEPC) untuk mengembangkan secara penuh Lapangan JTB,dan menyelesaikan proses pengalihan lapangan dengan skema bisnis bersama ExxonMobil Cepu Limited. Hal ini diperlukan agar Proyek Jambaran-Tiung Biru dapat segera dikerjakan.

Presiden Direktur PT Pertamina EP Cepu (PEPC) Adriansyah mengatakan, perseroan dan ExxonMobil telah mencapai kesepakatan soal pengalihan kepemilikan tersebut. Namun, keduanya masih harus merampungkan masalah administratif dari kesepakatan tersebut. Utamanya, urusan administrasi di internal ExxonMobil yang berada di kantor pusat-di Amerika Serikat.

“Ini pengalihan hak kepemilikan sudah hampir selesai, paling lama dua minggu dari sekarang sudah beres. Semoga bisa lebih cepat,” kata dia.

Sebelum ada pengalihan hak, kepemilikan, PEPC menjadi operator dan bersama ExxonMobil di Jambaran-Tiung Biru dengan porsi kepemilikan masing-masing 41,4%. Badan usaha milik daerah (BUMD) memiliki 9,2% dan sisanya sebanyak 8% dikuasai Pertamina EP Bila peralihan usai, maka PEPC akan menguasai 82,8% hak kepemilikan atas Lapangan Jambaran-Tiung Biru. Ditambah jatah Pertamina EP, maka Pertamina memegang hak kepemilikan 91%.

Dijelaskannya, pengalihan hak kepemilikan ini bukan akuisisi hak partisipasi (participating interest/PI), melainkan penerapan skema permanent sole risk. Artinya, Pertamina mengambil alih porsi kepemilikan ExxonMobil di Lapangan Jambaran, sekaligus kewajiban-kewajibannya. Sebaliknya, ExxonMobil tidak lagi memegang hak atas apapun di proyek ini.

Secara nyata, pihaknya juga harus menanggung kewajiban pengeboran sumur yang sebelumnya menjadi jatah ExxonMobil. Sedianya, baik Pertamina EP Cepu maupun ExxonMobil masing-masing membiayai pengeboran tiga sumur. Setelah pengalihan hak kepemilikan selesai, ke-enam sumur ini harus didanai Pertamina EP Cepu.

“Kami siap melakukan pengeboran dua sumur tahun depan,” ujar dia.

Proyek Jambaran-Tiung Biru ini direncanakan selesai dalam 36 bulan. Investasi yang dibutuhkan dalam Proyek Jambaran-Tiung Biru juga menjadi tanggungan Pertamina. Investasi proyek ini sudah dipotong habis-habisan dari awalnya US$ 2,1 miliar dalam rencana pengembangan (plan of development/ POD) , menjadi US$ 1,54 miliar. Dampaknya, PEPC harus melakukan penyesuaian harga kontrak pengadaan seperti biaya teknologi informasi hingga gaji tenaga kerja.

Pasca pengalihan hak kepemilikan selesai secara formal, setelah itu perjanjian jual beli gas (PJBG) dengan PT Perusahaan Lisirik Negara bisa diteken. Pasalnya, pengalihan hak kelola tersebut mengandung aspek perpajakan. Dengan demikian, PJBG perlu menanti proses pengalihan hak kelola.

“Kalau tanpa tax ruling-nya faktor pembentuknya (PJBG) masih variabel,” katanya.

Pihaknya berharap harga gas yang telah disepakati US$ 7,6 per million british thermal unit/MMbtu flat sepanjang masa kontrak di plant gate PLN. Pihaknya juga akan berupaya agar Proyek Jambaran-Tiung Biru dapat selesai tepat waktu. Hal ini mengingat, jika dua hal itu tidak terjadi, keekonomian proyek akan terus turun. Walaupun Pertamina telah mendapat tambahan bagi hasil sebesar 5% sehingga kontraktor mendapat bagian 45%.

Proyek Jambaran-Tiung Biru memiliki kompleksitas tinggi dengan kandungan karbondioksida mencapai 34% dan fasilitas pemrosesan gas 330 juta kaki kubik per hari/ MMscfd. Sementara gas jual yang dihasilkan yakni sebesar 172 Mmscfd, di mana sebanyak 100 MMscfd akan dijual ke PLN dan sisanya dipasok ke industri sekitar.

Ground breaking Proyek Jambaran-Tiung Biru ini telah dilakukan pada awal pekan lalu. Sebelum itu, Pertamina juga sudah menggarap pembangunan tapak sumur dan jalan di Lapangan Jambaran-Tiung Biru. Tidak hanya itu, pekerjaan rekayasa (engineering) juga sudah dikerjakan. Dengan berbagai kemajuan ini, Pertamina optimistis Proyek Jambaran-Tiung Biru akan berproduksi 2021.

Tidak sekedar menggarap sisi hulu, Pertamina juga sedang membangun pipa transmisi Gresik-Semarang melalui anak usahanya yang lain, PT Pertamina Gas (Pertagas). Pipa dengan nilai investasi sebesar US$ 515,7 juta ini akan membentang sepanjang 267 kilometer (km) dengan kapasitas penyaluran 500 MMscfd. 

     Pipa yang dilengkapi dengan 19 future connection ini berpotensi menyalurkan gas bagi industri di tujuh kabupaten/kota sepanjang Jawa Tengah dan Jawa Timur yang terlewati pipa. Proyek ini akan mulai beroperasi pada 2018.

Investor Daily, Page-11, Friday, Sept 29, 2017