The Cilacap Refinery Project Awaits the Asset Valuation Agreement

PT Pertamina (Persero) and Saudi Aramco have not yet completed the establishment of a joint venture that will be tasked with working on upgrading and upgrading capacity of Cilacap Refinery. Because the two state-owned oil and gas companies have not yet agreed on the valuation of the existing assets of the Cilacap refinery.

the Cilacap refinery

The Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said, the Cilacap Refinery Project is still under evaluation in relation to how the partnership with Saudi Aramco so that Pertamina can benefit in accordance with the business framework that is cooperated. One of them is related to asset valuation agreements that will be included in the JV.

Saudi Aramco

"The valuation of these assets has not been agreed. It must be calculated in detail, "he said in Jakarta.

He explained, Pertamina and partners must first agree on the value of these assets before the project starts, because the results of the asset valuation agreement will determine how much money is included. At present, Pertamina has finalized the asset valuation and is still awaiting an agreement from Saudi Aramco. Arcandra added, even though there was no agreement, cooperation with Saudi Aramco would continue.

"As far as I know (not looking for another partner), it's still the same as Saudi Aramco in Cilacap," he said.

Nicke Widyawati

Previously, Pertamina's Managing Director Nicke Widyawati revealed that for the Cilacap Refinery Project, the company was still finalizing the establishment of a joint venture company. However, continued Nicke, his side continued to work on this project.

"We are doing land clearing in Cilacap," Nicke said.

Saudi Aramco Refinery

Pertamina and Saudi Aramco have signed an agreement to establish a joint venture agreement (JVA) since the end of 2016. In the joint venture, Pertamina plans to hold 55% ownership and 45% of Saudi Aramco. Two years after the signing of the JVA, the two oil and gas companies have not yet realized the establishment of a joint venture company.

Some time ago, Pertamina revealed its plan to spin off the new Cilacap Refinery unit that will be carried out to be transferred to a joint venture formed to work on this project. If Saudi Aramco intends to continue working together, and other companies want to join, they can enter the company.

The spin off plan has received a green light from the Ministry of BUMN. The Cilacap refinery is targeted to start operating in 2024 backing from the initial plan in 2022. After upgrading, the crude oil processing capacity of the Cilacap Refinery will increase from 348 thousand barrels per day (bpd) to 400 thousand bpd.

Furthermore, there will be additional production of gasoline (gasoline) 80 thousand bpd, diesel fuel 60 thousand bpd, and avtur of 40 thousand bpd. Increased fuel production Significant because the refinery's ability to process crude oil into finished products (NCI) rose from 74% to 92-98%.

Tuban Refinery

Regarding the Tuban Refinery Project of 300 thousand bpd, Arcandra stressed that the refinery project location was canceled.

"The Tuban refinery is not moved, still (in Tuban)," her said. However, he admitted that land acquisition for this project had not yet been completed. "It's being released (land), it's being worked on," Nicke said.

Previously, Nicke admitted that land acquisition needed for the construction of an 800-hectare refinery was still an obstacle. At the location of the plan to be built by the refinery, there is 350 hectares of land owned by the Ministry of Environment, while the rest belongs to the community. Nicke said, in the last three years, his party had made various efforts to complete the land acquisition.

"To follow up on the request of the Minister of Energy and Mineral Resources, Pertamina will send a team to complete the land acquisition, so in this month we will send another team to solve this land problem," Nicke explained.

In fact, previously Pertamina and the East Java Provincial Government had previously signed a memorandum of understanding on the use of land assets of the Ministry of Environment and Forestry in Tanjung Awar-Awar, Tuban. In the memorandum of understanding, the East Java Provincial Government supports the Ministry of Environment and Forestry's land use for the construction of the Tuban Refinery.

Rosneft Refinery

Pertamina cooperates with the Russian oil and gas company, Rosneft Oil Company in working on the Tuban Refinery. The two companies have formed a joint venture, namely PT Pertamina Rosneft Pengolahan and Petrokirnia (PRPP), which will work on the Tuban Refinery Project worth US $ 15 billion. Pertamina holds a 55% shareholding and Rosneft 45%.

The plan, Tuban Refinery will produce gasoline (gasoline) products of 80 thousand bpd, solar 90 thousand bpd, and 26 thousand bp avtur. Not only that, Tuban Refinery will also produce new petrochemical products. The details of this product are polypropylene 1.3 million tons per year, polyethylene 0.65 million tons per year, styrene 0.5 million tons per year and paraxylene 1.3 million tons per year.

As is known, Pertamina is working on six refinery projects at once, both new units and increasing capacity and quality of existing refineries. Construction of two new units in Tuban, East Java and Bontang, East Kalimantan, as well as repairs to four existing refineries spread in Balongan, West Java; Balikpapan, East Kalimantan; Durnai, Riau; and Cilacap, Central Java.

The funds needed to complete this project are very large, namely around US $ 30 billion. All projects are targeted to be completed by 2026.

IN INDONESIAN

Proyek Kilang Cilacap Tunggu Kesepakatan Valuasi Aset

PT Pertamina (Persero) dan Saudi Aramco belum juga merampungkan pembentukan perusahaan patungan (joint venture) yang akan bertugas mengerjakan peningkatan dan perbaikan kapasitas (upgrading) Kilang Cilacap. Pasalnya, kedua perusahaan migas milik pemerintah ini belum juga menyepakati valuasi aset eksisting kilang Cilacap.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, Proyek Kilang Cilacap masih dalam evaluasi terkait bagaimana kemitraan dengan Saudi Aramco agar Pertamina mendapat manfaat sesuai dengan kerangka bisnis yang dikerjasamakan. Salah satunya terkait kesepakatan valuasi aset yang akan disertakan dalam JV.

“Perhitungan valuasi asetnya ini yang belum sepakat. Kan harus dihitung secara detailnya,” kata dia di Jakarta.

Dia menjelaskan, Pertamina dan mitra harus sepakat dulu untuk nilai aset ini sebelum proyek dimulai, Pasalnya, hasil kesepakatan valuasi aset akan menentukan berapa uang yang disertakan. Saat ini, Pertamina telah merampungkan valuasi aset tersebut dan masih menunggu kesepakatan dari Saudi Aramco. Arcandra menambahkan, meski belum ada kesepakatan, kerja Sama dengan Saudi Aramco tetap akan dilanjutkan. 

“Setahu saya tidak (mencari partner lain), tetap sama Saudi Aramco di Cilacap,” ujarnya.

Sebelumnya, Direktur Utama Pertamina Nicke Widyawati mengungkapkan, untuk Proyek Kilang Cilacap, perseroan masih melakukan finalisasi pembentukan perusahaan patungan. Namun, lanjut Nicke, pihaknya terus mengerjakan proyek ini.

“Kami lakukan land clearing di Cilacap,” kata Nicke.

Pertamina dan Saudi Aramco telah menandatangani perjanjian pembentukan perusahaan patungan (joint venture agreement/JVA) sejak akhir 2016. Dalam perusahaan patungan itu, Pertamina rencananya memegang kepemilikan 55% dan Saudi Aramco 45%. Dua tahun berselang sejak ditekennya JVA, kedua perusahaan migas ini belum juga merealisasikan pembentukan perusahaan patungan.

Beberapa waktu lalu, Pertamina mengungkapkan rencananya untuk melakukan spin off unit baru Kilang Cilacap yang akan dikerjakan untuk dialihkan ke perusahaan patungan yang dibentuk untuk menggarap proyek ini. Jika Saudi Aramco berniat tetap melanjutkan kerja sama, maupun perusahaan lain ingin bergabung, mereka bisa masuk ke perusahaan tersebut.

Rencana spin off tersebut telah mendapat lampu hijau dari Kementerian BUMN. Kilang Cilacap ditargetkan mulai beroperasi pada 2024 mundur dari rencana awal pada 2022. Pasca upgrading, kapasitas pengolahan minyak mentah Kilang Cilacap akan naik dari 348 ribu barel per hari (bph) menjadi 400 ribu bph. 

Selanjutnya, akan ada tambahan produksi bensin (gasoline) 80 ribu bph, solar 60 ribu bph, dan avtur 40 ribu bph. Prorfuksi bahan bakar naik signitikan lantaran kemampuan kilang mengolah minyak mentah menjadi produk jadi (NCI) naik dari 74% menjadi 92-98%.

Kilang Tuban

Terkait Proyek Kilang Tuban 300 ribu bph, Arcandra menegaskan bahwa lokasi proyek kilang ini batal dipindah. 

“Kilang Tuban tidak dipindah, tetap (di Tuban),” kata dia. Namun, diakuinya memang pembebasan lahan untuk proyek ini belum rampung. “Sedang dibebaskan (lahannya) , sedang diusahakan,” kata Nicke.

Sebelumnya, Nicke mengakui, pembebasan lahan yang dibutuhkan untuk pembangunan kilang seluas 800 hektar masih menjadi kendala. Di lokasi rencana yang akan dibangun kilang, ada lahan milik Kementerian Lingkungan Hidup seluas 350 hektar, sementara sisanya milik masyarakat. Dikatakan Nicke, dalam tiga tahun terakhir, pihaknya sudah melakukan berbagai upaya untuk merampungkan pembebasan lahan ini. 

“Untuk menindaklanjuti permintaan Menteri ESDM agar Pertamina kembali mengirimkan tim untuk menyelesaikan pembebasan lahan, maka dalam bulan ini segera kami akan kirim tim lagi untuk menyelesaikan masalah lahan ini,” jelas Nicke.

Padahal, sebelumnya Pertamina dan Pemerintah Provinsi Jawa Timur sebelumnya telah menandatangani nota kesepahaman pemanfaatan lahan aset Kementerian Lingkungan Hidup dan Kehutanan di Tanjung Awar-Awar, Tuban. Dalam nota kesepahaman itu, Pemprov Jawa Timur mendukung pemanfaatan lahan Kementerian Lingkungan Hidup dan Kehutanan untuk pembangunan Kilang Tuban.

Pertamina menggandeng perusahaan migas Rusia, Rosneft Oil Company dalam mengerjakan Kilang Tuban. Kedua perusahaan itu telah membentuk perusahaan patungan, yakni PT Pertamina Rosneft Pengolahan dan Petrokirnia (PRPP), yang akan menggarap Proyek Kilang Tuban senilai US$ 15 miliar. Pertamina memegang kepemilikan saham 55% dan Rosneft 45%.

Rencananya, Kilang Tuban akan menghasilkan produk bensin (gasoline) sebesar 80 ribu bph, solar 90 ribu bph, dan avtur 26 ribu bph. Tidak hanya itu, Kilang Tuban juga akan memproduksi produk-produk baru petrokimia. Rincian produk ini adalah polipropilen 1,3 juta ton per tahun, polietilen 0,65 juta ton per tahun, stirena 0,5 juta ton per tahun dan paraksilen 1,3 juta ton per tahun.

Seperti diketahui, Pertamina mengerjakan enam proyek kilang sekaligus, baik unit baru maupun peningkatan kapasitas dan kualitas dari kilang yang ada. Pembangunan dua unit baru di Tuban, Jawa Timur dan Bontang, Kalimantan Timur, serta perbaikan empat kilang eksisting yang tersebar di Balongan, Jawa Barat; Balikpapan, Kalimantan Timur; Durnai, Riau; serta Cilacap, Jawa Tengah.

Dana yang dibutuhkan untuk merampungkan proyek ini sangat besar, yakni Sekitar US$ 30 miliar. Seluruh proyek ditargetkan rampung pada 2026.

Investor Daily, Page-9, Saturday, Dec 15, 2018

Energy Equity Will Immediately Start Karaeng Block Joint Study

Energy Equity Epic (Sengkang) Pty Ltd immediately conducted a joint study in Karaeng Block in Jeneponto, South Sulawesi through a joint study. This oil and gas block was auctioned some time ago but there is no demand.

Energy Equity Epic (Sengkang)

President of Energy Equity Epic (Sengkang) Andi Riyanto said, this was the first time his party had been challenged by the government to carry out a joint study. This is also what makes Definite Work Commitments (DWC/KKP), which are agreed upon in the newly signed Production Sharing Contract (PSC) increased from US $ 60 million to US $ 80 million.

The increase in KKP is used to explore open areas that are suspected of having oil and gas reserves, including the Karaeng Block. The joint study is said to be carried out soon.

"These next months (implemented). So we will start administration first, "he said in Jakarta

This joint study includes evaluating geological and seismic documents, not yet entering physical activities. Thus, the funds issued may only be around US $ 100 thousand to access the document. Because the study has not yet been carried out, it has not been able to mention the potential of oil and gas in Karaeng Block. The party itself is interested in conducting this joint study, given its location adjacent to the Sengkang Block.

However, it does not mean that the oil and gas production of the two blocks will be merged, due to different contracts. After the joint study was completed and the block was auctioned, according to Andy, his party was interested in participating in this auction.

"There is a desire from management to participate in the WK (work area) auction. Hopefully a priviledge will be given because I want to join a joint study, "he said.

Previously, when visiting Jeneponto, Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar had reviewed the Karaeng Block location. When conducting a review of the location, Arcandra said that data would be added to the block Karaeng is through a joint study.

Arcandra Tahar

"This visit saw the potential of the oil and gas sector, especially the Karaeng Block in Jeneponto Regency. The data presented is promising. We have discussed it, there will be a joint study to see more potential, "said Arcandra.

This joint study is to further explore the potential at the same time to add data. The Karaeng Block is not the only oil and gas block that is not in demand at this year's oil and gas block auction. Throughout this year, the government has held an oil and gas block auction twice. 

    In the first phase where 19 oil and gas blocks were offered through regular auctions and 5 oil and gas blocks through direct offers, only four blocks were sold. While for the second phase of the auction, 6 oil and gas blocks are offered, but only 2 blocks have the winner.

IN INDONESIAN

Energy Equity Segera Mulai Joint Study Blok Karaeng

Energy Equity Epic (Sengkang) Pty Ltd segera melaksanakan joint study di Blok Karaeng di Jeneponto, Sulawesi Selatan melalui studi bersama (joint study). Blok migas ini sempat dilelang beberapa waktu lalu narnun tidak ada peminatnya. 

Presiden Energy Equity Epic (Sengkang) Andi Riyanto menuturkan, ini kali pertama pihaknya ditantang oleh pemerintah untuk melaksanakan joint study. Hal ini jugalah yang membuat Komitmen Kerja Pasti (KKP) yang disepekati dalam kontrak kerja sama (production sharing contract/PSC) yang baru saja ditandatangani meningkat dari US$ 60 juta menjadi US$ 80 juta. 

Peningkatan KKP digunakan untuk mengeksplorasi wilayah terbuka yang diduga memiliki cadangan migas, termasuk Blok Karaeng. Joint study ini disebutkan akan segera dilakukan dalam Waktu dekat. 

“Bulan-bulan depan ini (dilaksanakan). Jadi kami akan mulai administrasi dulu,” kata dia di Jakarta 

Joint study ini meliputi mengevaluasi dokumen geologi dan seismik, belum masuk ke kegiatan fisik. Sehingga, dana yang dikeluarkan kemungkinan hanya sekitar US$ 100 ribu untuk mengakses dokumen tersebut. Karena belum dilakukan kajian, pihaknya belum dapat menyebutkan potensi migas di Blok Karaeng. Pihaknya sendiri mernang tertarik untuk melakukan joint study ini, mengingat lokasinya berdekatan dengan Blok Sengkang. 

Namun, bukan berarti produksi migas kedua blok ini akan digabung, karena berbeda kontraknya. Setelah joint study selesai dan blok dilelang, menurut Andy, pihaknya berminat ikut lelang ini. 

“Ada keinginan dari manajemen ikut lelang WK (wilayah kerja) itu. Semoga diberikan priviledge karena sudah mau joint study,” tuturnya.

Sebelumnya, ketika berkunjung ke Jeneponto, Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar telah melakukan peninjauan lokasi Blok Karaeng. Saat melakukan tinjauan ke lokasi tersebut, Arcandra menyampaikn bahwa akan dilakukan penambahan data untuk blok Karaeng tersebut melalui joint study.

“Kunjungan ini melihat potensi sektor Migas, terutama Blok Karaeng yang ada di Kabupaten jeneponto. Dari data yang dipresentasikan cukup menjanjikan. Sudah kami diskusikan, akan ada joint study untuk melihat lebih dalam lagi potensi yang ada,” kata Arcandra. 

Joint study ini untuk lebih mendalami potensi yang ada sekaligus melakukan penambahan data. Blok Karaeng bukan satu-satunya blok migas yang tidak diminati dalam lelang blok migas tahun ini. Sepanjang tahun ini, pemerintah sudah dua kali menggelar lelang blok migas. 

     Pada tahap pertama di mana 19 blok migas ditawarkan melalui lelang reguler dan 5 blok migas melalui penawaran langsung, hanya empat blok yang laku. Sementara untuk lelang tahap dua ditawarkan 6 blok migas, tetapi hanya 2 blok saja yang ada pemenangnya.

Investor Daily, Page-9, Saturday, Dec 15, 2018

Delay of Refinery Assessed Adverse

The delay in the construction of new refineries and the increase in refinery capacity has the potential to swell imports of oil fuel. In 2012 the value of imported crude oil and oil raw materials reached 16.5 billion US dollars. The government is urged to be consistent with the dream of building refineries in the country.

Throughout 2017, the value of imported fuel oil (BBM) reached 9 billion US dollars, exceeding the value of crude oil imports of 7.5 billion US dollars. As of August 2018, the value of imported fuel is also higher than crude oil imports. A total of 7.4 billion US dollars was spent on fuel imports, while 5.5 billion US dollars of crude oil imports.

According to Executive Director of Indonesian Resources Studies (IRESS) Marwan Batubara in Jakarta, delays in completing the construction of new refineries and increasing refinery capacity to 2026 harm PT Pertamina (Persero) and could disrupt the rupiah exchange rate against the US dollar.

Indonesia also loses the potential of gaining added value from refinery and petrochemical products. Marwan said the delay could affect public confidence in the government's sincerity in building refineries. The delay in building refineries has made Indonesia increasingly dependent on imports. In fact, imports are often a hunting ground for oil and gas mafia rents.

Nicke Widyawati

Previously, Pertamina's Managing Director Nicke Widyawati admitted there were delays in the construction of new refineries and the increase in existing refineries. However, he refused to explain what caused the delay. According to him, it's better late than nothing.

Balikpapan refinery

Last Monday (10/12/2018), Pertamina signed a design, construction and engineering (EPC) contract for the development of the Balikpapan refinery, East Kalimantan. Meanwhile, President of the Indonesian Petroleum Association (IPA) Tumbur Parlindungan said the government's ambitions building new refineries must be accompanied by efforts to find oil and gas reserves through exploration.

Because, without the discovery of new reserves, Indonesia has not been completely free of imports despite having refineries in large capacity. The capacity of Indonesia's oil refineries is currently only 1 million barrels per day. In fact, national fuel consumption reaches 1.5 million-1.6 million barrels per day, where the shortfall is met through imports of 600 thousand barrels per day.

IN INDONESIAN

Penundaan Kilang Dinilai Merugikan

Tertundanya pembangunan kilang baru dan peningkatan kapasitas kilang berpotensi membuat angka impor bahan bakar minyak membengkak. Pada 2012 nilai impor minyak mentah dan bahan baku minyak mencapai 16,5 miliar dollar AS. Pemerintah didesak konsisten dengan cita-cita membangun kilang di dalam negeri.

Sepanjang 2017, nilai impor Bahan Bakar Minyak (BBM) mencapai 9 miliar dollar AS, melampaui nilai impor minyak mentah yang 7,5 miliar dollar AS. Hingga Agustus 2018, nilai impor BBM juga lebih tinggi daripada impor minyak mentah. Sebanyak 7,4 miliar dollar AS dibelanjakan untuk impor BBM, sedangkan impor minyak mentah 5,5 miliar dollar AS.

Menurut Direktur Eksekutif Indonesian Resources Studies (IRESS) Marwan Batubara di Jakarta, tertundanya penuntasan pembangunan kilang baru dan peningkatan kapasitas kilang menjadi tahun 2026 merugikan PT Pertamina (Persero) dan dapat mengganggu nilai tukar rupiah terhadap dollar AS. 

Indonesia juga kehilangan potensi memperoleh nilai tambah dari produk kilang dan petrokimia. Marwan menyebut keterlambatan itu bisa memengaruhi kepercayaan publik terhadap kesungguhan pemerintah membangun kilang. Keterlambatan membangun kilang membuat Indonesia semakin tergantung pada impor. Padahal, impor sering menjadi lahan perburuan rente mafia migas.

Sebelumnya, Direktur Utama Pertamina Nicke Widyawati mengakui ada keterlambatan pembangunan kilang baru dan peningkatan kilang yang ada. Namun, dirinya menolak menjelaskan apa penyebab keterlambatan itu. Menurut dia, lebih baik terlambat daripada tidak sama sekali.

Senin (10/12/2018) lalu, Pertamina menandatangani kontrak pengerjaan rancangan, konstruksi, dan rekayasa (EPC) untuk pengembangan kilang Balikpapan, Kalimantan Timur. Sementara itu, Presiden Asosiasi Perminyakan Indonesia (IPA) Tumbur Parlindungan mengatakan, ambisi pemerintah

membangun kilang baru harus dibarengi usaha menemukan cadangan migas melalui eksplorasi.

Sebab, tanpa penemuan cadangan baru, Indonesia belum sepenuhnya terbebas dari impor meski punya kilang dalam kapasitas besar. Kapasitas kilang minyak Indonesia saat ini hanya 1 juta barel per hari. Padahal, konsumsi BBM nasional mencapai 1,5 juta-1,6 juta barel per hari, dimana kekurangannya dipenuhi melalui impor sebesar 600 ribu barel per hari.

Kompas, Page-18, Saturday, Dec 15, 2018

Six Oil and Gas Projects Start Production

Investment Value of Rp. 4.35 Trillion

The supply of oil and gas has the potential to increase. The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that there are six upstream oil and gas projects that will be operational this year. Its total production capacity reaches 15.5 thousand bopd (barrel oil per day) and 105 mmscfd with an investment value of USD 300 million or Rp 4.35 trillion.

Head of SKK Migas Program and Communication Division Whisnu Prabawa Taher said the project was spread. Three projects in Sumatra, 2 projects in Java, and 1 in Kalimantan.

"Based on operate; 4 Pertamina and 2 Medco" he said.

Projects that will be onstream (producing) in Sumatra are gas projects. Namely, optimization of the East Musi SKG Flare LP owned by PT Pertamina EP. The EPC (engineering, procurement and construction) investment value of USD 1 1.3 million with an estimated peak production of 15 mmscfd has been onstream in March 2018.

Project Built by PT Medco

Then, the Block A project built by PT Medco Blok A. The EPC investment value is estimated at USD 253.7 million. Its production facility capacity is 3,100 bopd and 55 mmscfd. The project has been fully operational in November 2018. Medco through PT Medco EP Indonesia is also optimizing the Lica field production facilities. The EPC investment issued reached USD 8.5 million with a production facility capacity of 4,000 bopd. Meanwhile, the estimated peak production of 3,700 bopd,

"The onstream estimate is December 2018. Currently the employment status reaches 94 percent," Wisnu said.

On Java, the project that will operate is the PT PHE ONWJ SP field with EPC investment of USD 50.7 million. The capacity of the project's production facilities reaches 30 mmscfd with estimated peak production in the same figure. Then, the PT Pertamina EP Poleng Asset 4 Field subsea pipeline development project with EPC investment worth USD 16.1 million.

"The production facility capacity is 700 bopd with an estimated peak production of 700 bopd already onstream on September 13, 2018," he said.

In Kalimantan there are oil and gas projects that have been operating in November 2018, namely Nibung Gathering Station.

IN INDONESIAN

Enam Proyek Migas Mulai Produksi

Nilai Investasi Rp 4,35 Triliun

Pasokan minyak dan gas bumi berpotensi bertambah. Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mencatat, ada enam proyek hulu migas yang akan beroperasi tahun ini. Total kapasitas produksinya mencapai 15,5 ribu bopd (barrel oil per day) dan 105 mmscfd dengan nilai investasi USD 300 juta atau Rp 4,35 triliun.

Kepala Divisi Program dan Komunikasi SKK Migas Whisnu Prabawa Taher mengatakan, proyek tersebut tersebar. Tiga proyek di Sumatera, 2 proyek di Jawa, dan 1 di Kalimantan. 

"Berdasar operate; 4  Pertamina dan 2 Medco" ujarnya.

Proyek yang akan onstream (berproduksi) di Sumatera adalah proyek gas. Yakni, optimasi LP Flare SKG Musi Timur milik PT Pertamina EP. Nilai investasi EPC (engineering, procurement and construction) sebesar USD 1 1,3 juta dengan estimasi produksi puncak sebesar 15 mmscfd sudah onstream pada Maret 2018.

Lalu, proyek Blok A yang di bangun PT Medco Blok A. Nilai investasi EPC diperkirakan sebesar USD 253,7 juta. Kapasitas fasilitas produksinya sebesar 3.100bopd dan 55 mmscfd. Proyek tersebut telah beropersi penuh pada November 2018. Medco melalui PT Medco EP Indonesia juga melakukan optimasi fasilitas produksi lapangan Lica. Investasi EPC yang dikeluarkan mencapai USD 8,5 juta dengan kapasitas fasilitas produksi sebesar 4.000 bopd.

Adapun, estimasi produksi puncak sebesar 3.700 bopd, 

”Estimasi onstream pada Desember 2018. Saat ini status pekerjaan mencapai 94 persen," kata Wisnu.

Di Jawa, proyek yang akan beroperasi adalah lapangan SP PT PHE ONWJ dengan investasi EPC sebesar USD 50,7 juta. Kapasitas fasilitas produksi proyek tersebut mencapai 30 mmscfd dengan estimasi produksi puncak di angka yang sama. Kemudian, proyek pembangunan subsea pipeline Lapangan Poleng PT Pertamina EP dengan investasi EPC senilai USD 16, 1 juta. 

"Kapasitas fasilitas produksi sebesar 700 bopd dengan estimasi produksi puncak sebesar 700 bopd sudah onstream pada 13 September 2018," katanya.

Di Kalimantan terdapat proyek migas yang telah beroperasi pada November 2018, yakni Gathering Station Nibung.

Jawa Pos, Page-6, Saturday, Dec 15, 2018

Govt welcomes shift to gross split deals

Italian energy company Eni S.p.A and Australian energy company Energy World Corporation (EWC) have amended their production sharing contracts (PSC) from cost recovery to gross split, much to the government’s delight. 

Eni S.p.A

  Eni’s East Sepinggan block offshore of Kalimantan and EWC’s Sengkang block in South Sulawesi, both gas rich, are the latest blocks for which the PSC have been amended into gross split schemes.

Energy and Mineral Resources Deputy Minister Arcandra Tahar couldn’t hide his happiness as the two companies signed their contracts.

“Today, we witness a good start,” said Arcandra, who had long defended the policy. “I’ve received so many letters, reviews and criticisms saying that the gross split [scheme] failed to attract investors [...] In the future, I hope that we speak based on data, not your own perception.”

Eni S.p.A

As of Tuesday, almost two years after the scheme was introduced in January 2017, contracts involving more than 30 oil and gas blocks have been altered to gross split, including the latest with Eni and EWC. Eni S.p.A inked an amendment of its PSC in"the East Sepinggan block changing from cost recovery to gross split with the aim of speeding up the development of its project in the Merakes gas field, especially over issues regarding cost calculation. Its contract is due' in 2042.

Energy Equity Epic Sengkang Pty. Ltd.

EWC, through its subsidiary Energy Equity Epic Sengkang Pty. Ltd. (EEES), signed a similar contract amendment for its Sengkang block, also due in 2042. Eni Indonesia managing director Fabrizio Trilli told the press that amending its contract to gross split was a win-win solution for them in order to achieve better gas production in the block.

Working Area Gross Split

“[With gross split] we are Free to perform in any activity [in the block] and it will guarantee a better result both for us and the government on gas production,” he said. 

Arcandra Tahar

Previously, deputy minister Arcandra said the Italian firm decided to amend its PSC to avoid a prolonged discussion with the government over costs on its gas project' in the Merakes field as required by the cost recovery scheme, in which the government is obliged to reimburse some of the company’s investments.

“They have also committed to increase their local content requirement in the project, through which, if it reaches 30 to 50 percent, we will reward them with an additional 2 percent stake in the split of production,” Arcandra said. 

EWC chief executive officer Stewart Elliott also expounded on the benefits of a gross split scheme to the press. He said he believes it would eliminate the possibility of vendors marking up prices that must later be reimbursed by the government. ”

“Because of that [possibility of a markup], the government needs to watch it carefully and it will take a lot of time, which later leads to inefficiency. Therefore, I think it’s a tremendous step for Indonesia to improve efficiency” he after attending the signing event.

The gross split scheme has been widely criticized and was named one of the things that made Indonesia to be considered one of the 10 most unattractive jurisdictions in the world in terms of oil and gas, according to a 2017 Global Petroleum Survey conducted by the Canadian Fraser Institute think tank.

“Indonesia’s gross split contracts discourage investment at a time of constrained capital and exploration,” the survey stated.

The survey studied 97 countries with participants such as managers and executives in the upstream petroleum industry, ranging from CEOs, consultants and economists to lawyers. In May the institute presented its latest survey during the 42“ Indonesian Petroleum Convention and Exhibition held by the Indonesian Petroleum Association (IPA). 

     Not long after, the ministry sent a letter to the association, circulated to the press, in which it expressed its “disappointment” with the IPA’s decision to involve the institute as one of the speakers in the event.

The ministry countered the Fraser Institute’s survey, saying that it was unfair as it still included taxes during exploration.

“Exploration activities have been exempt from any taxes until the first oil discovery,” the ministry said in its statement, referring to Government Regulation No. 53/2017 on taxes for gross split contracts.

Jakarta Post, Page-13, Friday, Dec 14, 2018

Per November, New Oil and Gas Lifting is 1.91 Million BOEPD

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said that oil and gas lifting up to the end of last month was recorded at 1.91 million barrels of oil equivalent per day (barrel Oil Equivalent per day / boepd). This realization is still 95.5% of this year's oil lifting target set in the APBN of 2 million boepd.

According to SKK Migas data, both oil and gas lifting until November were still below the target. Oil lifting is recorded at only 762 thousand barrels per day (bpd) or 95.25% of the national budget target of 800 thousand bpd. Next, the realization of gas lifting of 1.14 million boepd, only reached 95% of the target set at 1.2 million boepd.

"This achievement reaches 95% of the 2018 State Budget, and until the end of the year we continue to strive for more optimal production," said Head of SKK Migas Program and Communication Division Wisnu Prabawa Taher.

He explained, the lifting performance was influenced by the performance of new wells that had not matched expectations. In addition, the rate of decline in production (decline rate) from the existing well is getting bigger. Next, there are several operating and instrument constraints, but they have been overcome.

"Then there are a number of development programs that have retreated to 2019," he said.

Drilling wells development and workover of wells are also still below the target. SKK Migas noted that drilling of 251 wells had been carried out from the target of 289 wells. Furthermore, re-work activities were realized as many as 554 wells from the target of 636 wells.

"We continue to strive for maximum achievement," Wisnu said.

Nevertheless, the realization of state revenues from the oil and gas sector actually exceeds the target. This year, state revenues from the oil and gas sector are targeted at the state budget of US $ 11.9 billion. However, the realization of this state revenue is projected to be higher, reaching US $ 16.1 billion.

"The total state revenue realization reached US $ 15.9 billion, 133% of the state budget target," Wisnu said.

Realization of cost recovery costs also exceeded the target Until last November, realization of cost recovery was recorded at US $ 10.9 billion. While the allocation in the State Budget/APBN is set at US $ 10.2 billion. Previously, Wisnu had revealed, related to the achievement of oil and gas revenues, mainly due to the increase in crude oil prices. However, this is also due to the efficiency and optimization of operating costs carried out by the cooperation contract contractors (KKKS), so that profit margins become better.

Referring to the data from the Ministry of Energy and Mineral Resources (ESDM), in the January-April period, the price of Indonesian Crude Price (ICP) was still recorded at around US $ 61-67 per barrel. Furthermore, ICP rose to US $ 72.46 per barrel in May. After that, ICP fell around US $ 70 per barrel, returning to US $ 69.36 per barrel in August, US $ 74.88 per bareL in September, and US $ 77.56 per barrel in October. However, ICP fell again in November to US $ 62.98 per barrel.

Project Operates

Wisnu added, until last November, there were five oil and gas projects operating. Some projects include the development of Block A by PT Medco E & P Malaka with an estimated peak production of 3,100 bph, the SP Project by PT Pertamina Hulu Energi Offshore North West Java (ONWJ), which produces 30 million cubic feet per day / mmscfd of gas, and the construction of a collection station at Bunyu Field in Bunyu Island, North Kalimantan by PT Pertamina EP.

"Throughout 2018, six upstream oil and gas projects will be realized (operating) with a total investment of US $ 346 million and can contribute additional production during the peak period of a total of 34 thousand boepd," Wisnu said.

Rimau Block, South Sumatra

According to him, there is still one more project that will operate at the end of this year, namely the Lica production facility in Rimau Block, South Sumatra. The project undertaken by PT Medco E & P Indonesia has an estimated peak production of 3,700 bpd.

IN INDONESIAN

Per November, Lifting Migas Baru 1,91 Juta BOEPD    

Satuan kerja Khusus Pelaksana Kegiatan Usaha Hulu MIinyak dan Gas Bumi (SKK Migas) menyatakan lifting minyak dan gas (migas) sampai akhir bulan lalu tercatat sebesar 1,91 juta barel setara minyak per hari (barrel  Oil  Equivalent per day/boepd). Realisasi ini masih 95,5% dari target lifting  minyak tahun ini yang ditetapkan dalam APBN sebesar 2 juta boepd.

Menurut data SKK Migas, baik lifting minyak maupun gas hingga November lalu masih di bawah target. Lifting minyak tercatat hanya sebesar 762 ribu barel per hari (bph) atau 95,25% dari target APBN 800 ribu bph. Berikutnya, realisasi lifting gas sebesar 1,14 juta boepd, hanya mencapai 95% dari target yang ditetapkan 1,2 juta boepd.

“Capaian tersebut mencapai 95% dari APBN 2018, dan hingga akhir tahun kami tetap upayakan produksi bisa lebih maksimal,” kata Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher.

Dia menjelaskan, performa lifting tersebut dipengaruhi oleh kinerja sumur baru yang belum sesuai ekspektasi. Selain itu, laju penurunan produksi (decline rate) dari sumur eksisting semakin besar. Berikutnya, ada beberapa kendala operasi dan instrumen, namun sudah dapat diatasi. 

“Kemudian ada beberapa program pengembangan yang mundur ke 2019,” ujarnya.

Kegiatan pengeboran sumur pengembangan dan kerja ulang (workover) sumur juga masih di bawah target. SKK Migas mencatat telah dilakukan pengeboran pengembangan 251 sumur dari target 289 sumur. Selanjutnya, kegiatan kerja ulang yang direalisasikan sebanyak 554 sumur dari target 636 sumur. 

“Secara kontinyu kami tetap mengupayakan pencapaian bisa maksimal,” tutur Wisnu.

Meski demikian, realisasi penerimaan negara dari sektor migas justru melebihi target. Pada tahun ini, penerimaan negara dari sektor migas ditargetkan dalam APBN sebesar US$ 11,9 miliar. Namun, realisasi penerimaan negara ini diproyeksikan lebih tinggi, yakni mencapai US$ 16,1 miliar.

“Realisasi penerimaan negara secara total mencapai US$ 15,9 miliar, 133% dari target APBN,” ujar Wisnu.

Realisasi biaya investasi yang dapat dikembalikan (cost recovery) juga melebihi target Sampai November lalu, realisasi cost recovery tercatat sebesar US$ 10,9 miliar. Sementara alokasi dalam APBN ditetapkan sebesar US$ 10,2 miliar. Sebelumnya, Wisnu sempat mengungkapkan, terkait capaian penerimaan migas, utamanya memang disebabkan oleh kenaikan harga minyak mentah. Namun, hal ini juga lantaran adanya efisiensi serta optimalisasi biaya operasi yang dilakukan kontraktor kontrak kerja sama (KKKS), sehingga marjin labanya menjadi lebih bagus.

Mengacu data Kementerian Energi dan Sumber Daya Mineral (ESDM), pada periode Januari-April lalu, harga minyak mentah Indonesia (Indonesian Crude Price/ICP) tercatat masih bertahan di kisaran US$ 61-67 per barel. Selanjutnya, ICP meningkat naik menjadi US$ 72,46 per barel pada Mei. Setelah itu, ICP turun di kisaran US$ 70 per barel, kembali menjadi US$ 69,36 per barel di Agustus lalu, US$ 74,88 per bareL di September, dan US$ 77,56 per barel di Oktober. Namun, ICP kembali turun di November lalu menjadi US$ 62,98 per barel.

Proyek Beroperasi

Wisnu menambahkan, hingga November lalu, tercatat terdapat lima proyek migas yang telah beroperasi. Beberapa proyek diantaranya yakni pengembangan Blok A oleh PT Medco E&P Malaka dengan estimasi produksi puncak 3.100 bph, Proyek SP oleh PT Pertamina Hulu Energi Offshore North West Java (ONWJ) yang menghasilkan gas 30 juta kaki kubik per hari (million standard cubic feet per day/mmscfd), serta pembangunan stasiun pengumpul di Lapangan Bunyu DI Bunyu Island Kalimantan Utara oleh PT Pertamina EP.

“Sepanjang 2018 dapat terealisasi enam proyek hulu migas onstream (beroperasi) dengan total investasi US$ 346 juta serta dapat memberikan kontribusi tambahan produksi pada masa puncak total 34 ribu boepd,” tutur Wisnu.

Menurutnya, masih ada satu proyek lagi yang akan beroperasi di akhir tahun ini, yakni fasilitas produksi Lica di Blok Rimau, Sumatera Selatan. Proyek yang dikerjakan oleh PT Medco E&P Indonesia ini memiliki estimasi produksi puncak sebesar 3.700 bph.

Investor Daily, Page-9, Friday, Dec 14, 2018

Pertamina EP prepares an investment of US $ 570 million

PT Pertamina EP continues to desire to increase oil and gas production next year. To boost production, this subsidiary of PT Pertamina (Persero) allocated an investment of US $ 570 million in 2019.

Nanang Abdul Manaf, Managing Director of PT Pertamina EP, said that the investment fund will be used for exploration drilling activities, development drilling, enhance oil recovery (EOR) projects, oil development projects, increased reliability of production facilities and health, safety, environment (HSE) throughout Pertamina EP field.

With such an investment value, Nanang expects Pertamina EP oil production to reach 82,500 bopd next year. Gas production is targeted to reach 970 mmscfd. Until the end of this year, Nanang projected Pertamina EP oil production could reach 79,000 bopd or 96% of the target. While gas production is expected to reach 1,019 mmscfd or 103% of the target.

Assuming this year's target, Pertamina EP's oil production next year will increase by 3,500 bopd. Nanang said that the increase in production would come from the new Pertamina EP project.

"The increase in oil from new projects like Jati Asih, Big Bamboo, and Akasia Bagus. All of them are located in West Java," Nanang said.

Exploration Well

This year, Pertamina EP did find new sources of oil and condensate reserves in the West Java area. One of them is by drilling the Acacia Advanced exploration well ~ 001 '(AMJ-001).

The AMJ-001 well began to be plowed or excavated on March 20, 2018 and completed on August 20, 2018. The well was drilled to a depth of 2,517 meters. One of the production tests from the well turned out to be able to drain oil up to 1,700 BOPD. The other production test results flow gas and condensate.

On the other hand, Pertamina EP's gas production in the next year actually declined. Nanang said the decline in gas production occurred because there was a decline in production from Musi Field in South Sumatra.

"Gas production has declined because the supply from the Musi field has dropped by around 40 mmscfd. While there has been no additional supply from the new field," Nanang said.

For oil and gas lifting until the end of this year, Pertamina EP projects to reach 78,120 bopd or 98% of the target. The gas lifting is 815 mmscfd or 105% of the 2018 target.

IN INDONESIAN

Pertamina EP Menyiapkan Investasi US$ 570 Juta

PT Pertamina EP terus berhasrat meningkatkan produksi minyak dan gas pada tahun depan. Untuk menggenjot produksi, anak usaha PT Pertamina (Persero) ini mengalokasikan investasi sebesar US$ 570 juta pada 2019.

Direktur Utama PT Pertamina EP Nanang Abdul Manaf, mengemukakan dana investasi itu akan digunakan untuk aktivitas pengeboran eksplorasi, pengeboran pengembangan, proyek enhance oil recovery (EOR), proyek pengembangan minyak, peningkatan keandalan fasilitas produksi serta health, safety, environment (HSE) di seluruh lapangan Pertamina EP.

Dengan nilai investasi sebesar itu, Nanang mengharapkan produksi minyak Pertamina EP bisa mencapai 82.500 bopd pada tahun depan. Adapun produksi gas ditargetkan mencapai 970 mmscfd. Hingga akhir tahun ini, Nanang memproyeksikan produksi minyak Pertamina EP bisa mencapai 79.000 bopd atau sebesar 96% dari target. Sedangkan produksi gas diharapkan bisa mencapai 1.019 mmscfd atau sebesar 103% dari target.

Dengan asumsi target tahun ini, berarti produksi minyak Pertamina EP pada tahun depan meningkat sebesar 3.500 bopd. Nanang menyebutkan, kenaikan produksi tersebut akan berasal dari proyek baru Pertamina EP. 

"Kenaikan minyak dari proyek-proyek baru seperti Jati Asih, Bambu Besar, dan Akasia Bagus. Semuanya berlokasi di Jawa Barat," kata Nanang.

Pada tahun ini, Pertamina EP memang menemukan sumber cadangan migas dan kondensat baru di area Jawa Barat. Salah satunya melalui pengeboran sumur eksplorasi Akasia Maju ~ 001 '(AMJ-001).

Sumur AMJ-001 mulai ditajak atau digali pada 20 Maret 2018 dan selesai pada 20 Agustus 2018. Sumur tersebut dibor hingga mencapai kedalaman 2.517 meter. Salah satu uji produksi dari sumur tersebut ternyata mampu mengalirkan minyak hingga 1.700 BOPD. Adapun hasil uji produksi lainnya mengalirkan gas dan kondensat.

Di sisi lain, produksi gas Pertamina EP pada tahun depan justru mengalami penurunan. Nanang menyatakan penurunan produksi gas terjadi lantaran ada penurunan produksi dari Lapangan Musi di Sumatra Selatan. 

"Produksi gas menurun karena suplai dari lapangan Musi turun sekitar 40 mmscfd. Sementara belum ada tambahan suplai dari lapangan baru," kata 

Nanang.

Untuk lifting migas hingga akhir tahun ini, Pertamina EP memproyeksikan mencapai 78.120 bopd atau sebesar 98% dari target. Adapun lifting gas sebesar 815 mmscfd atau 105% dari target 2018.

Kontan, Page-14, Friday, Dec 14, 2018

Oil and Gas Lifting Still Below Target

The realization of oil and gas production this year is still below the target. As of November 2018, the realization of oil and gas lifting has only reached 1.91 million barrels of Oil equivalent per day (BOEPD). This figure is equivalent to 95% of the target in the 2018 State Budget (APBN). The oil and gas lifting includes 762,000 BOPD of oil and 1.14 million BOEPD of natural gas.

SKK Migas Head of Program and Communication, Wisnu Prabawa Taher stated that the achievement of oil and gas lifting up to November 2018 was influenced by the performance of new wells which had not matched expectations. There is a decline rate from the older wells that are getting bigger. In fact, according to SKK Migas, there are a number of obstacles operational and instruments that have recently been overcome. There are also a number of oil and gas development programs that have retreated to 2019.

"Until the end of this year, we continue to strive for more optimal oil and gas production," Wisnu said.

To improve the development of upstream oil and gas fields and maintain production optimally, in November SKK Migas has drilled 251 wells from the target of 289 wells; Then the workover program for 554 wells from the target of 636 wells.

"We continue to strive for maximum achievement," Wisnu said.

One way to achieve the lifting target this year is to increase the production of new upstream oil and gas. So far, SKK Migas has noted that there are five upstream oil and gas projects that are already onstream, namely Block A in Aceh, SP in ONWJ, and the most recent is the construction of the Gathering Station at Pertamina EP Bunyu field at Bunyu Island, North Kalimantan.

Towards the end of this year, Wisnu claims there will be an onstream project, namely the Lica production facility in South Sumatra, so that it is estimated that throughout 2018 six on-stream upstream oil and gas projects can be realized with a total estimated investment of US $ 346 million. The project can contribute additional production during its peak period of 34,000 BOEPD.

In addition to oil and gas lifting, SKK Migas noted the realization of cost recovery until November worth US $ 10.9 billion. The realization of state revenues reached US $ 15.9 billion or 133% of the state budget target.

IN INDONESIAN

Lifting Migas Masih di Bawah Target

Realisasi produksi minyak dan gas bumi (migas) tahun ini masih di bawah target. Hingga November 2018, realisasi lifting migas baru mencapai 1,91 juta barrel Oil equivalent per day (BOEPD). Angka itu setara 95% dari target dalam Anggaran Pendapatan dan Belanja Negara (APBN) 2018. Lifting migas itu meliputi minyak bumi 762.000 BOPD dan gas bumi 1,14 juta BOEPD. 

Kepala Program dan Komunikasi SKK Migas, Wisnu Prabawa Taher mengemukakan, pencapaian lifting migas hingga November 2018 dipengaruhi kinerja sumur baru yang belum sesuai ekspektasi. Ada decline rate dari sumur lama yang semakin besar. Bahkan, menurut SKK Migas, ada sejumlah kendala operasional dan instrumen yang belakangan ini sudah dapat diatasi. Ada pula beberapa program pengembangan migas yang mundur menjadi tahun 2019. 

"Hingga akhir tahun ini, kami tetap mengupayakan produksi migas bisa lebih maksimal," kata Wisnu.

Untuk meningkatkan pengembangan lapangan hulu migas dan menjaga produksi secara optimal, pada November lalu SKK Migas telah melakukan pengeboran pengembangan sebanyak 251 sumur dari target 289 sumur; Kemudian program kerja ulang (workover) terhadap 554 sumur dari target 636 sumur.

"Secara continue kami tetap mengupayakan pencapaian bisa maksimal," ujar Wisnu.

Salah satu cara untuk mencapai target lifting pada tahun ini adalah meningkatkan produksi baru hulu migas. Sejauh ini SKK Migas mencatat terdapat lima proyek hulu migas yang sudah onstream, yakni Blok A di Aceh, SP di ONWJ, dan yang paling mutakhir adalah pembangunan Gathering Station di Pertamina EP lapangan Bunyu.

Menjelang akhir tahun ini, Wisnu mengklaim akan ada satu proyek yang onstream yaitu fasilitas produksi Lica di Sumatera Selatan, sehingga diperkirakan sepanjang tahun 2018 dapat terealisasi enam proyek hulu migas yang on-stream dengan total estimasi investasi mencapai US$ 346 juta. Proyek tersebut dapat memberikan kontribusi tambahan produksi pada masa puncaknya sebesar 34.000 BOEPD.

Selain lifting migas, SKK Migas mencatat realisasi cost recovery hingga November senilai US$ 10,9 miliar. Adapun realisasi penerimaan negara mencapai US$ 15,9 miliar atau 133% dari target APBN.

Kontan, Page-14, Friday, Dec 14, 2018