Mengaku hanya Bisa Berikan Tali Asih

    Kepala SKK Migas Perwakilan Jabanusa, Ali Masyhar mengaku tidak bisa memberikan kompensasi dampak flare selama 12 bulan penuh sesuai permintaan warga Desa Rahayu, Kecamatan Soko, lantaran terbentur aturan. Ia meminta warga memahami bahwa perusahaan hanya bisa mengeluarkan anggaran kompensasi sesuai peraturan yang berlaku.

    Bukan semudah itu untuk mengeluarkan uang kompensasi, dan semua itu pasti ada dasarnya,” kata Ali Masyhar. Untuk menggantikan dana kompensasi itu, lanjut Ali Masyhar, SKK Migas sudah menyiapkan anggaran sebesar Rp 700 juta sebagai tali asih. Dana tersebut dihimpun dari biaya yang tidak terduga berasal dari proses operasional," papar Ali.

    Saat ditanya nasib warga Desa Rahayu yang merasakan dampak flare selama berbulan-bulan, Ali kembali berkelit bahwa dampak flare sudah di bawah ambang batas sehingga tidak membahayakan warga. Ia mengklaim bahwa hal ini sesuai penelitian dari Institut Teknologi Sepuluh November (ITS). "Sudah beberapa tahun terakhir ini produksi minyak sumur-sumur JOB PPEJ telah menurun.

    Jika dulu puncak produsi minyak di atas 40 ribu barel per hari, total gas yang dikeluarkan 20 MMSCFD. Tetapi, kini tingkat produksi telah menurun hingga di bawah 20 ribu per barel. Jadi produksi segitu cecara otomatis berada di bawah ambang batas,” dalihnya. Diberitakan sebelumnya, warga Desa Rahayu tetap ngotot meminta dana kompensasi. Sebab, menurut warga, dana tali asih yang dipersiapkan JOB PPEJ dan SKK Migas Jabanusa tak sesuai dengan kesepakatan yang diteken pada 2009 lalu terkait dana kompensasi.

IN ENGLISH

Can Give admitted only Gratification

    SKK Migas Chief Representative Jabanusa, Ali Masyhar claims could not compensate the impact of flares during a full 12 months demand Rahayu village residents, District Soko, further due to the rules. He asked citizens to understand that the company can only issue a budget compensation in accordance with applicable regulations.

    Not so easy to spend money compensation, and all of it was certainly no basis, "said Ali Masyhar. To replace the compensation fund, said Ali Masyhar, SKK Migas has prepared a budget of Rp 700 million as ex-gratia. The funds collected from unexpected expenses come from operational processes, "said Ali.

    When asked about the fate of Rahayu village residents who feel the impact of flare for months, Ali returned dodged that flare effects already below the threshold so as not to endanger the citizens. He claims that this is according to research from the Institute of Technology (ITS). "It's been the last few years oil production wells JOB PPEJ has declined.

    If the first peak oil produsi over 40 thousand barrels per day, a total of 20 MMSCFD gas released. But now the production rate has dropped to below 20 thousand per barrel. So much for cecara automatic production is below the threshold, "he argued. Reported earlier, villagers insisted Rahayu requesting compensation fund. Because, according to residents, funds gratia prepared JOB PPEJ and SKK Migas Jabanusa not in accordance with the agreement signed in 2009 related to the compensation fund.

Harian Bangsa, Page-9,Thursday, Dec,22,2016

PEPC Target Produksi Gas 2020

    Pertamina EP Cepu (PEPC) menargetkan lapangan gas Jambaran-Tiung Biru (TBR) di Desa Bandungrejo, Kecamatan Ngasem, Kabupaten Bojonegoro, Jawa Timur, memproduksi gas sebesar 172 juta standar-kaki kubik pada 2020.  Target kami gas Jambaran-TBR bisa berproduksi 2020 dengan pembeli PLN dan Petrokimia, “ kata Senior “Project Manager” Jambaran-Tiung Biru (TBR) PEPC Firman Arif, Rabu (21/12).

    Hanya saja, pihaknya masih melakukan proses negosiasi terkait harga gas dengan pembeli dari PLN dan PT Petrokimia dengan negosiator Pemerintah. “Dua perusahaan pembeli gas dari BUMN sehingga negosiatornya Pemerintah,” ucapnya. Sesuai rencana, menurut dia, gas lapangan Jambaran-TBR akan diproduksikan sebesar 172 juta standar kaki kubik per hari dalam kurun waktu 2020-2035. “Gas Jambaran-TBR akan dimanfaatkan untuk listrik dan pupuk,” ucapnya.

    Ia menyebutkan proyek pengembangan lapangan gas Jambaran-TBR di dalam “plant of development” (POD) akan menelan-biaya mencapai 2,5 miliar dolar Amerika Serikat. Menurut dia, pengeboran dua sumur gas akan dimulai pada 2018. Sekarang dalam proses persiapan untuk pondasi pengeboran yang akan selesai berkisar 2-3 bulan,” tandasnya. Pekerjaan pengembangan proyek lapangan gas Jambaran-TBR lainnya, lanjut Manajer Humas PPEC Abdul Malik, berupa pekerjaan pembangunan sipil dimulai 2016 lalu. Pekerjaan yang sudah berjalan, kata dia, pembangunan akses jalan, gedung perkantoran juga berbagai pekerjaan sipil lainnya termasuk pembangunan lapangan heli. Di dalam melaksanakan pekerjaan itu, menurut dia melibatkan sekitar 200 tenaga kerja.

IN ENGLISH

PEPC 2020 Gas Production Target
    Pertamina EP Cepu (PEPC) targeting gas field Jambaran-Tiung Blue (TBR) in the village of Bandungrejo, District Ngasem, Bojonegoro, East Java, producing gas by 172 million standard cubic-feet in 2020. Our target Jambaran gas-TBR can produce 2020 with buyers PLN and Petrochemicals, "said Senior" Project Manager "Jambaran-Tiung Blue (TBR) PEPC word Arif, on Wednesday (21/12).

    Only, it's still in the process of negotiations related to gas prices with buyers from PLN and PT Petrochemical with government negotiators. "Two companies buyer of gas from SOEs so that government negotiators," he said. As planned, according to him, the gas field Jambaran-TBR is to be produced by 172 million standard cubic feet per day in the period 2020-2035. "Gas Jambaran-TBR will be utilized for electricity and fertilizer," he said.

    He mentioned gas field development project Jambaran-TBR in the "plant of development" (POD) will swallow-cost reached 2.5 billion US dollars. According to him, the drilling of two gas wells will commence in 2018. Now in the process of preparation for foundation drilling will be completed around 2-3 months, "he said. Gas field project development work Jambaran-other TBR, said PR Manager PPEC Abdul Malik, in the form of civil construction work began in 2016 ago. Work is already under way, he said, the construction of access roads, office buildings as well as various other civil works including the construction of the helicopter field. In the performance of the work, according to him involves about 200 workers.

Duta Masyarakat, Page-15,Thursday, Dec,22,2016

Donggi-Senoro LNG Bidik 40 Kargo

    PT Donggi-Senoro LNG, perusahaan penghasil gas alam cair, menargetkan dapat menghasilkan gas sebanyak 40 kargo atau setara dengan 2,2 juta ton per tahun pada 2017. Direktur Urusan Korporasi Donggi-Senoro LNG Aditya Mandala mengatakan, target produksi gas alam cair/LNG pada tahun depan tidak berbeda jauh dengan capaian pada tahun ini sekitar 40 kargo. Padahal, target produksi LNG perusahaan yang berlokasi di Sulawesi Tengah itu 36 kargo.

    Saham Donggi-Senoro dimiliki oleh PT Pertamina Hulu Energi 29%, PT Medco LNG lndonesia 11%, dan Sulawesi LNG Development Ltd. 59,9%. Menurutnya, seluruh gas yang diproduksi telah dikirim ke konsumen untuk jangka panjang. Dari 40 kargo, yang dihasilkan, 39 kargo di antaranya untuk memenuhi kebutuhan konsumen jangka panjang yang berasal dari Jepang dan Korea Selatan.

    Sebenarnya, komitmen konsumen jangka panjang pada 2016 adalah 36 kargo, tetapi tiga kargo lainnya tidak dapat terserap di dalam negeri sehingga dijual di pasar spot. Hanya satu kargo LNG yang disalurkan ke PLTGU Muara Karang. Untuk 2017, kami masih ingin menargetkan dengan 40 kargo sesuai dengan produksi yang telah kita lampaui. Sejak beroperasi pada 2015, pihaknya telah mengirim 51 kargo LNG antara lain 11 kargo pada 2015 dan 40 kargo tahun ini.

    Pada tahun depan, Donggi-Senoro memiliki komitmen untuk memenuhi konsumen jangka panjang sebanyak 31 kargo. Sisanya, katanya, bisa dijual untuk memenuhi kebutuhan domestik. Dia menambahkan, untuk kebutuhan pada kuartal I/2017, belum ada pasar domestik yang mau menyerap LNG Donggi. Oleh karena itu, pihaknya masih menawarkan kepada pembeli domestik seperti PT Perusahaan Listrik Negara PT Perusahaan Gas Negara dan pertamina.

IN ENGLISH

Donggi-Senoro LNG Cargo Shutter 40
    PT Donggi-Senoro LNG, liquefied natural gas producer, expects to produce as many as 40 cargoes of gas, equivalent to 2.2 million tonnes per year in 2017. Director of Corporate Affairs Donggi-Senoro LNG Aditya Mandala said the targeted production of liquefied natural gas / LNG in the next year does not vary much with the achievements of this year about 40 cargoes. In fact, LNG production target company located in Central Sulawesi was 36 cargoes.

    Donggi-Senoro shares owned by PT Pertamina Hulu Energi 29%, PT Medco LNG Indonesia 11%, and Sulawesi LNG Development Ltd. 59.9%. According to him, the whole gas produced has been delivered to customers for the long term. Of the 40 cargo, produced, 39 cargoes of them to meet the needs of long term customers from Japan and South Korea.

    Actually, long-term customer commitments in 2016 is 36 cargoes, but three other cargo can not be absorbed in the country so sold on the spot market. Only one cargo of LNG supplied to the Muara Karang. For 2017, we still want to target with 40 cargoes in accordance with the production we have exceeded. Since its inception in 2015, it had sent 51 cargoes of LNG include 11 cargoes in 2015 and 40 cargoes this year.

    In the next year, Donggi-Senoro has a commitment to meet the long-term consumer as much as 31 cargoes. The rest, he said, could be sold to domestic needs. He added, to the needs of the first quarter / 2017, there is no domestic market would absorb Donggi. Therefore, it is still offered to domestic buyers such as state electricity company PT Perusahaan Gas Negara and Pertamina.

Bisnis Indonesia, Page-30,Thursday, Dec,22,2016

Target 2017 Lebih Rendah

    Pembangunan jaringan gas rumah tangga pada tahun depan hanya 60.000 sambungan rumah lebih rendah dibandingkan dengan realisasi tahun ini 88.915 rumah tangga. Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM IGN Wiratmaja Puja mengatakan, pihaknya akan menggenjot pembangunan jaringan gas bumi bagi rumah tangga. Rencana pembangunan jaringan gas (jargas) tahun depan lebih rendah dibandingkan dengan realisasi pada tahun ini 88.915 rumah tangga.

    Pembangunan jaringan gas pada 2015 hanya 7.636 rumah tangga. Pemerintah telah mengusulkan jaringan gas pada 2017 sebanyak 100.000 sambungan rumah. Namun, usulan tersebut tak terkabul karena adanya pemangkasan anggaran yang menyebabkan pos kegiatan pembangunan jargas turut tergerus. Berdasarkan pagu Anggaran Pendapatan dan Belanja Negara (APBN) 2017, pagu anggaran turun dari Rp 7,31 triliun menjadi Rp 7,02 triliun.

    Dampaknya, usulan membangun jaringan gas semula 69.200 Sambungan Rumah (SR) menjadi 56.432 SR. Realisasi jaringan gas pada tahun ini ada di enam daerah yakni Tarakan 21.000 SR, Surabaya 24.000 SR, Batam 4.000 SR, Prabumulih 32.000 SR, Cilegon 4.066 SR, dan Balikpapan 3.849 SR. Selama lima tahun, terhitung sejak 2015, pihaknya merencanakan untuk membangun jaringan gas hingga 1,3 juta rumah tangga. Menurutnya, program tersebut masih jauh bila harus menyentuh 65 juta rumah tangga.

    Bila dibandingkan dengan Iran, katanya, jaringan gas nasional sangat minim. Iran telah menyambungkan jaringan gas ke 90% penduduk. Pemerintah, belum akan merevisi target pembangunan jaringan gas di Tanah Air kendati masih jauh dari target 1,3 juta rumah tangga.

IN ENGLISH

Target 2017 Lower
    Domestic gas network construction in the next year only 60,000 house connections is lower than the realization of this year 88 915 households. Director General of Oil and Gas Ministry of Energy and Mineral Resources Wiratmaja Puja IGN said it will boost the development of the network of natural gas for households. Gas network development plan (jargas) next year is lower than the realization in the year 88 915 households.

    Development of gas network in 2015 only 7636 households. The Government has proposed a gas network in 2017 as many as 100,000 residential connections. However, the proposal did not come true because of the budget cuts which led the post development activities jargas succession eroded. Based on the ceiling of the State Budget (APBN) in 2017, the budget ceiling down from Rp 7.31 trillion to Rp 7.02 trillion.

    Impacts, proposals to build gas network was originally 69 200 House Connection (SR) into 56 432 SR. Realized gas network this year in six areas namely Tarakan SR 21,000, SR 24,000 Surabaya, Batam SR 4000, SR 32,000 Prabumulih, Cilegon 4066 SR and 3849 SR Balikpapan. For five years, starting in 2015, it planned to build a network of gas up to 1.3 million households. According to him, the program is still a long way when it should touch 65 million households.

    When compared to Iran, he said, the national gas network was minimal. Iran has been connecting the gas network to 90% of the population. Government, will not revise the target to develop gas network in the country though still far from the target of 1.3 million households.

Bisnis Indonesia, Page-30,Thursday, Dec,22,2016

Tren Migas Riau Positif

    Kinerja sektor minyak bumi di Riau terus menunjukkan peningkatan selama lima tahun terakhir meskipun harga minyak bumi sempat anjlok ke level terendah. Gubernur Riau Arsyadjuliandi Rachman mengatakan kinerja sektor migas Riau menunjukkan tren positif hingga tahun ini meski harga gas sempat jatuh ke level terendahnya. Sejumlah perusahaan, paparnya, juga belum mengeksplorasi dengan memaksimalkan sumur-sumur yang ada. 

    Berdasarkan data Pemprov Riau, dominasi sektor migas terhadap perekonomian daerah sesuai dengan produk domestik regional bruto (PDRB) daerah itu tercatat mencapai 28,26% pada 2015. Pencapaian itu meningkat dari posisi tahun-tahun sebelumnya, yaitu dari 24,73% pada 2011, kemudian 25,46% pada 2012, meningkat 26,57% pada 2013, dan 27,53% pada 2014. Tahun ini, diprediksi akan menyentuh 29% meski pemerintah belum merilisnya secara resmi.

    Riau merupakan daerah sentra minyak bumi dan gas dengan persentase 40% dari produksi migas nasional. Riau memiliki delapan blok migas dengan beberapa Kontraktor Kontrak Kerja Sama dari beberapa perusahaan luar negeri dan dalam negeri, seperti PT Chevron Pacific Indonesia, PT Pertamina, PT Energi Mega Persada dan perusahaan daerah seperti PT Bumi Siak Pusako dan PT Sarana Pembangunan Riau Langgak.

    Pemprov Riau mencatat total produksi migas di Riau mencapai 133 juta barel per tahun. Andi Rachman mengatakan perusahaan migas di Riau harus memacu pencapaian produksi untuk mengejar target lifting yang ditetapkan oleh Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi. Target lifting migas nasional meningkat 825.000 barrel per hari untuk tahun depan, meningkat dari tahun ini yang hanya 825.000 barel per hari Riau yang masih bergantung dengan minyak bumi tersebut harus mampu mengurangi ketergantungannya pada sektor tersebut.

    Hal ini karena harga minyak masih fluktuatif dan masih bergantung pada pasar internasional. Riau harus mampu mengurangi ketergantungannya dengan sektor migas agar perekonomian membaik," kata Joko, Ekonom Universitas Islam Negeri Sultan Syatif Kasim II Riau. Untuk mengurangi ketergantungan tersebut, pemerintah bisa membangun industri hilir minyak bumi dengan memanfaatkan lahan kawasan industri. Riau saat ini mengembangkan kawasan tiga kawasan industri, kawasan industri Tanjung Buton, Kawasan Industri Dumai dan Kawasan Industri Kuala Enok. “Industri hilir, seperti pembangunan refinery oil tersebut bertujuan agar harga minyak tidak lagi bergantung pada permintaan luar negeri,” kata Joko.

IN ENGLISH

Positive Trends in Oil and Gas Riau

    Performance of the petroleum sector in Riau continues to show improvement over the last five years even though the price of oil tumbled to its lowest level. Riau Governor Arsyadjuliandi Rachman said the performance of the oil and gas sector Riau showed a positive trend so far this year despite gas prices had fallen to its lowest level. A number of companies, he said, also has not been explored by maximizing existing wells.

    Based on data from the Riau provincial government, the dominance of oil and gas sector to the regional economy in accordance with the regional gross domestic product (GDP) of the region reached 28.26% in 2015. The achievement was increased from the position of previous years, ie from 24.73% in 2011, then 25.46% in 2012, an increase of 26.57% in 2013 and 27.53% in 2014. this year, predicted to reach 29% even though the government has yet to officially release it.

    Riau is the central areas of oil and gas with a percentage of 40% of the national oil and gas production. Riau has eight oil and gas blocks with multiple Sharing Contractor of several companies overseas and domestic, such as PT Chevron Pacific Indonesia, PT Pertamina, PT Energi Mega Persada and regional companies such as PT Bumi Siak Pusako and PT Sarana Pembangunan Riau Langgak.

    Riau provincial government noted in Riau total oil and gas production reached 133 million barrels per year. Andi Rachman said the oil and gas company in Riau should foster the achievement of lifting production to achieve the target set by the Special Unit of Upstream Oil and Gas. National oil lifting target increased by 825,000 barrels per day for the next year, up from this year only 825,000 barrels per day of Riau are still dependent on petroleum should be able to reduce its dependence on the sector.

    This is because oil prices are still fluctuating and dependent on the international market. Riau should be able to reduce dependence on oil and gas sector so that the economy is improving, "said Joko, an economist at the State Islamic University of Sultan Syatif Kasim II Riau. To reduce this dependence, the government can build downstream industries of petroleum by making use of industrial land, Riau is currently developing the region three industrial areas, industrial areas Tanjung Buton industrial area industrial area Dumai and Kuala Enok. "downstream industries, such as construction of oil refinery is intended that oil prices are no longer dependent on foreign demand," said Joko.

Bisnis Indonesia, Page-8,Thursday, Dec,22,2016

Pertamina EP Menduga Kebocoran Pipa Minyak Sabotase

    Pertamina EP Asset Field 4 Cepu, Jawa Tengah, menduga kebocoran pipa minyak milik PT Geo Cepu Indonesia (GCI) di Desa Kawengan, Kecamatan Kedawan, Kab Bojonegoro, Jatim, disebabkan unsur sabotase. "Sesuai laporan yang kami terima dari pihak GCI bahwa bocornya pipa minyak diduga ada unsur sabotase,” kata Manajer Pertamina EP Asset 4 Field Cepu, Jawa Tengah, Agus Amperiyanto. Dari foto pipa minyak yang bocor itu, menurut dia, kebocoran pipa distribusi minyak mentah milik PT GCI di trunkline Kawengan, Kee Kedewan, menggambarkan ada bekas digergaji.

    Kebocoran pipa diketahui Senin (19/12) sekitar pukul 07.00 WIB. Menurut dia, setelah diketahui ada pipa minyak bocor, personal GCI langsung melakukan penanganan penghentian pemompaan minyak sekaligus melakukan pengangkatan minyak yang tumpah. Terjadinya kebocoran pipa distribusi minyak mentah milik GCI, jelas ada unsur kesengajaan, karena faktor adanya penertiban penambangan sumur minyak tua,” katanya menegaskan.

    Sebelumnya, kata dia, Pertamina EP Asset Field, 4 Cepu, telah melakukan pengambilalihan sejumlah sumur minyak yang dikelola warga untuk kemudian dikelola PT GCI berdasarkan Kontrak Sama Operasi (KSO), Pihak GCI juga sudah melaporkan kejadian itu kepada polisi. Camat Kedewan, Bojonegoro Muchtarom menjelaskan kebocoran pipa minyak milik PT GCI itu mengakibatkan sawah warga seluas 2 hektare terkena tumpahan minyak. Di area sawah tersebut terdapat tanaman padi dengan usia sekitar 10 hari. Sampai sekarang ini masih ada petugas di lapangan yang melakukan pembersihan minyak yang tumpah di sawah,” ucapnya.

    Dari hasil koordinasi dengan GCI, perbaikan pipa minyak yang bocor membutuhkan waktu sekitar lima hari. Kami juga meminta GCI memberikan kompensasi kepada warga yang sawahnya terkena tumpahan minyak, tetapi masih belum ada jawaban.

IN ENGLISH

Pertamina EP suspect Leaks Oil Pipeline Sabotage
    Pertamina EP Cepu Asset Field 4, Central Java, suspected leak oil pipe owned by PT Geo Cepu Indonesia (GCI) in the village of Kawengan, District Kedawan, Regency Bojonegoro, East Java, due to the element of sabotage. "According to the reports we receive from the GCI that leaking oil pipeline allegedly no element of sabotage," said Manager of Pertamina EP Asset 4 Field Cepu, Central Java, Agus Amperiyanto. From the photo oil pipeline leak, according to him, leaking distribution pipes crude PT GCI in trunkline Kawengan, Kee Kedewan, characterize the former sawed.

    Pipeline leak is known on Monday (19/12) at around 07.00 pm. According to him, having known no leaking oil pipelines, personal GCI directly handling the cessation of pumping oil at the same time making the appointments oil spill. Leakage of crude oil distribution pipelines belonging to GCI, obviously no intention, because of the presence of old oil wells mining policing, "he asserted.

    Previously, he said, Pertamina EP Field Asset, 4 Cepu, has conducted a number of oil well takeover residents managed to then managed by PT GCI under the Contract for Joint Operation (KSO), GCI Party had also reported the incident to the police. Camat Kedewan, Bojonegoro Muchtarom explain leak oil pipeline owned by PT GCI it resulted in a 2-hectare paddy residents affected by the oil spill. The rice fields are in the area of ​​rice plants with the age of about 10 days. Until now there are still officers in the field who do the cleaning up oil spilled in the fields, "he said.

    From the results of coordination with GCI, repair leaky oil pipeline takes about five days. We also ask for GCI provides compensation to citizens whose fields affected by the oil spill, but still no answer.

Bhirawa, Page-7,Thursday, Dec,22,2016

Greater Efficiency Expected From New Scheme

    The implementation of a gross split sliding scale in future oil and gas production sharing contracts (PSC) is expected to lead to greater efficiency and more uses of domestic services and products. The Energy and Mineral Resources Ministry plans to replace the current reimbursement scheme for oil and gas companies’ exploration and exploitation activities dubbed cost recovery -in 2017. It considers the cost recovery scheme inefficient, with experts claiming that several companies have marked up costs due to the unattractive split ratios.

    According to the current scheme, in an oil project, a company’s portion is set at 15 percent and the rest is dedicated for the government, while in a gas project, the company has 'the right for a 30 percent portion with the remaining 70 percent belonging to the government. On the other hand, a gross-split scheme will incorporate a “no-cost recovery” mechanism, forcing companies to become more efficient amid continuously sluggish global oil prices. Energy and Mineral Resources Minister Ignasius Jonan said recently that without the cost recovery scheme, companies would have to calculate in details their own operational costs as the government would no longer reimburse their upstream activities.

    This may lead to higher uses of domestic upstream services and products due to its cheaper prices and due to incentives offered by the government. “If companies use a certain percentage of local industrial content, for example 30 percent, the split [for contractors] may increase by 4 percent. This is a more concrete action [toward realizing the local content requirement],” Jonan said, adding that companies currently resorted to using local content because ofthe imposed regulation.

    In addition to the base split that will be decided by the government, the gross split scheme will also consist of variable and progressive splits, which will affect the amount of returns received by both the government and companies. “A base split, for example, could be something like 70:30 and will be agreed upon in the beginning. After that, we will have a variable split, which involves factors such as location,” said Energy and Mineral Resources deputy minister Arcandra Tahar. Location-wise, an onshore field will not lead to higher split portions for companies. However, a deep-water field may result in companies’ portions increasing to around 4 percent, he said.

    Other factors will play a role as well in the variable split, including the types of technology used, the amount of carbon dioxide, the amount of hydrogen sulnde and also the amount of local content used in the Held’s development. Meanwhile, unlike the base and variable split, the progressive split will “slide” depending on the production volume and global oil prices. “When oil prices fall, we will give a larger incentive to the contractors. However, if oil prices rise, the contractors have to give the split back to the government based on thescale we have implemented,” Arcandra, a long-time oil and gas player, said.

    The new scheme will be first implemented in the production-sharing contract (PSC) of the Offshore Northwest Java (ONWJ) block. However, data from the ministry show there will still be around 50 existing PSC, which will remain under the cost recovery scheme for the next 25 years. Energy and mining research group Wood Mackenzie stated that a gross-split scheme can help reduce some of the bureaucratic delays and overhead costs that many investors associate with such a bureaucracy “More details are required to do a thorough comparison with the current PSC model, but we could infer that projects that required high levels of investment per barrel for example oil fields, EOR [enhanced oil recovery] projects, deep-water or projects in remote areas , would require very high levels of contractor shares to make the economics work,” Wood Mackenzie upstream oil and gas analyst John Utama.

Jakarta Post, Page-15, Wednesday, Dec,20,2016

Auction 14 Gas Block Not Interesting

    Again, oil and gas blocks auction enthusiasts. Since then offered in May 2016 by the Ministry of Energy and Mineral Resources (ESDM) there has been no winner for the entire auction 14 oil and gas blocks it. 14 auction of oil and gas working area 2016 consists of seven blocks, with direct offers and seven oil and gas blocks.

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) IGN Wiratmaja Puja convey, bids related to conventional oil and gas blocks auction this year is not much. It is not encouraging as in previous years, "said Wiratmaja. Of the seven blocks with direct offers, there are three blocks that do not demand that Kasongan Sampit Block, Block Powerful, and block the West Hill.

    Kaimana rest that West Block, Block Onin, Ebuny Block, and Block Batu Gajah demand by contractors. While the auction of seven oil and gas blocks consisting of block South CPP, Suremana Block I, Block Oti, Block Manakarra Mamuju, SE Mandar Block, Block North Argunim and Kasuri Block II is still yet to be announced by the government.

    According Wiratmaja, lack of working area of ​​conventional oil and gas deals this year could be caused by the oil price that is less good. Also still uncertainty in the regulation of oil and gas. For that the Ministry of Energy is conducting a study in order to block the auction of conventional oil and gas can be more attractive to investors. Later we will re-auction, there will be a split gross regulation and the revision of PP 79. With that we expected even more attractive again.

    The ministerial regulation about the gross split is expected to be published in January 2017. The government is currently reviewing the draft terms these rules in order to provide the best results for both government and contractor cooperation contract (PSC). While the revision of Government Regulation (PP) 79 in 2010 is still being held up by the Ministry of Energy and Mineral Resources Ministry of Finance. Both ministries are still different opinions about the transition period which will be enforced after the revision of Government Regulation No. 79.

IN INDONESIAN

Lelang 14 Blok Migas Sepi Peminat

    Lagi-lagi, lelang blok migas sepi peminat. Sejak ditawarkan pada Mei 2016 lalu oleh Kementerian Energi dan Sumber Daya Mineral (ESDM) belum ada pemenang untuk seluruh lelang 14 blok migas itu. Lelang 14 Wilayah kerja migas tahun 2016 terdiri dari tujuh blok, dengan penawaran langsung dan tujuh blok migas reguler.

    Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) IGN Wiratmaja Puja menyampaikan, penawaran yang masuk terkait lelang blok migas konvensional tahun ini tidak banyak. Memang tidak menggembirakan seperti tahun-tahun sebelumnya," kata Wiratmaja. Dari tujuh blok dengan penawaran langsung, terdapat tiga blok yang tidak diminati yaitu Blok Kasongan Sampit, Blok Ampuh, dan Blok Bukit Barat.

    Sisanya yaitu Blok West Kaimana, Blok Onin, Blok Ebuny, dan Blok Batu Gajah diminati oleh kontraktor. Sedangkan lelang tujuh blok migas reguler yang terdiri dari Blok South CPP, Blok Suremana I, Blok Oti, Blok Manakarra Mamuju, Blok SE Mandar, Blok North Argunim dan Blok Kasuri II masih belum diumumkan oleh pemerintah.

    Menurut Wiratmaja, minimnya penawaran wilayah kerja migas konvensional tahun ini bisa disebabkan oleh harga minyak yang kurang bagus. Juga masih adanya ketidakpastian dalam regulasi di sektor migas. Untuk itu Kementerian ESDM tengah melakukan kajian agar lelang ulang blok migas konvensional bisa lebih atraktif bagi para investor. Nanti kami lelang ulang, nanti ada Peraturan Menteri gross split dan revisi PP 79. Dengan itu kami harapkan jadi lebih atraktif lagi.

    Peraturan menteri soal gross split diharapkan bisa terbit pada Januari 2017. Saat ini pemerintah tems mengkaji rancangan aturan ini agar bisa memberikan bagi hasil terbaik bagi pemerintah dan kontraktor kontrak kerja sama (KKKS). Sementara revisi Peraturan Pemerintah (PP) 79 tahun 2010 masih terus dibahas oleh Kementerian ESDM dengan Kementerian Keuangan. Kedua kementerian masih berbeda pendapat soal masa transisi yang akan diberlakukan setelah revisi Peraturan Pemerintah No. 79.

Kontan, Page-14, Wednesday, Dec, 21, 2016

ESDM Segera Putuskan Soal Delapan Blok Migas

    Kementerian Energi dan Sumber Daya Mineral (ESDM) akan segera mengumumkan nasib wilayah kerja atau blok migas yang akan segera terminasi atau habis kontrak. Terdapat delapan blok migas yang akan habis kontrak pada tahun 2018. Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM IGN Wiratrnaja Puja mengungkapkan, sebelum tahun baru 2017 nanti, pemerintah akan memberikan keputusan terkait blok yang habis kontrak pada tahun 2018. "Segera akan diputuskan, delapan wilayah kerja tersebut," ujar Wiratmaja.

    Sayang, Wiratmaja tidak mau berbicara lebih detail terkait keputusan menteri tersebut, terutama mengenai pemberian seluruh blok migas yang habis kontrak kepada Pertamina.  Dari delapan blok migas itu, operatornya bukan Pertamina, Sebut saja Blok Attaka oleh Indonesia Petroleum Exp Ltd, Blok Sanga-Sanga dioperasikan oleh Virginia Indonesia Co Ltd dan Blok Southeast Sumatera oleh CNOOC SES Ltd, Blok Tengah oleh Total E&P lndonesie.

IN ENGLISH

Eight EMR Soon Decide on Oil and Gas Blocks

    Ministry of Energy and Mineral Resources (ESDM) will soon announce the fate of the working area or the oil and gas blocks will soon be terminated or discharged contract. There are eight oil and gas blocks that will be out of contract in 2018. Director General of Oil and Gas Ministry of Energy and Mineral Resources Wiratrnaja Puja IGN revealed, before the new year 2017, the government will issue a decision related to the block contract runs out in 2018. "There will soon be decided, eight the working area, "said Wiratmaja.

    Unfortunately, Wiratmaja not want to talk in more detail related to the minister's decision, particularly regarding the provision of the entire oil and gas block contract runs to Pertamina. Of the eight oil and gas block, the operator is not Pertamina, Call it Attaka by Indonesian Petroleum Blocks Exp Ltd., Sanga-Sanga operated by Virginia Indonesia Co. Ltd and Southeast Sumatra Block by CNOOC SES Ltd., Central Block by Total E & P lndonesie.

Kontan, Page-14, Wednesday, Dec,21,2016

Trial “Gross Split

    In front of many stakeholders in the oil and gas sector, Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar is like a lecturer in a classroom. By scribbling a black marker on flipchart paper, he explained to the audience about the gross split or the distribution of oil and gas revenue based on gross production. This concept will replace the profit-sharing contract model with a cost recovery component or recoverable operating costs.

    Arcandra explained, for an oil and gas working area that has won a tender winner, the government and the contractor who won the tender agreed at the beginning about the amount of profit sharing. He divides it into three stages, namely base split (basic division), variable split (variable or division component), and progressive split (progressive profit sharing). The government has determined the base split as a benchmark.

    So far, in the concept of cost recovery, the oil profit-sharing model is known to be 85 percent for the state and 15 percent for contractors. Meanwhile, gas revenue sharing is 70 percent for the state and 30 percent for contractors. Arcandra illustrates the base split with 70:30, which is 70 percent of the state share and 30 percent for contractors. 

    After the base split is agreed upon, enter the variable split section. The components consist of the type of working area (conventional or unconventional), carbon dioxide content, sulfur content, local content usage, production stages (whether using water, steam, or chemical injection methods), and oil prices.

    If the type of work area is non-conventional, the government provides incentives in the form of additional profit sharing on a scale of 1 to 5 percent to contractors. Likewise, if the CO2 and H2S content are high, the percentage of local content is high, and if the chemical injection method is used to drain the oil, the contractor gets additional incentives for profit sharing. Especially if the price of oil is high, for example above 100 US dollars per barrel, the government will be enlarged.

    Furthermore, for the progressive split, the higher the oil and gas production, the contractor does not get incentives. Then, does the gross split concept guarantee that oil and gas production in Indonesia will increase? Could be, but not the only guarantor. This is Arcandra's explanation. The government plans to start implementing this concept in 2017.

    Currently being prepared for legal protection. However, the government emphasized that the production sharing contract with the cost recovery scheme will be maintained until the contract expires. The Gross split applies to new oil and gas contracts. Why was the profit-sharing contract abandoned? The concept of cost recovery is believed to create inefficiencies.

Blogger Agus Purnomo in SKK Migas

    The calculations are also complicated. It is difficult for contractors to be expected to operate efficiently because they are guaranteed to be reimbursed by the state. The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that this year alone, the cost recovery figure was US$11.4 billion. Meanwhile, the state revenue is 9.29 billion US dollars and the contractor's share is 3.175 billion US dollars.

    It is true that the contractor's assets that have been paid for in cost recovery become state assets. However, the value of assets in the form of operational equipment will definitely decrease in value. According to Arcandra, the gross split with the above scheme has never been implemented in any country. Now, it's just a matter of proving whether this concept is the best for Indonesia. Let time test it.

Kompas, Page-17, Wednesday, Dec 21, 2016

PHE WMO Eksplorasi Sumur Baru

    Penurunan harga minyak dunia membuat PT Pertamina Hulu Energi West Madura Offshore (PHE WMO) memangkas biaya operasional sekitar 40 persen. Meski demikian, kontraktor kontrak kerja sama SKK Migas itu tak mengendurkan kegiatan eksplorasi migasdi wilayah operasinya. General Manager PT PHE WMO Sri Budiyani menyampaikan, pihaknya hari ini berencana melakukan pengeboran sumur bam sebagai pengembangan proyek EPCI-1.
   
    Persiapan pengeboran telah dilakukan dengan pemasangan anjungan (platform) PHE-24 dan PHE-12 di 50 mil laut lepas pantai Bangkalan, Madura. Momen akhir tahun justru menjadi waktu yang kritis bagi kami karena targetnya Pebruari 2017 platform di sana sudah harus beroperasi. SKK Migas menargetkan produksi dari proyek EPC-1 sebanyak 1.000 barel minyak per hari (BOPD) pada Februari 2017, lantas ditingkatkan menjadi 2.900 BPOD pada Mei 2017.

    Yani, sapaan akrab Sri Budiyani, menyatakan, kegiatan eksplorasi terus dilakukan untuk mengimbangi penurunan alamiah produksi migas di blok WMO yang mencapai 50-60 persen per tahun. Lapangan minyak eks Kodeco itu sudah tua, jadi harus terus dieksplorasi agar biaya produksi tetap efisiensi terangnya. Pengeboran akan berlangsung dalam waktu sekitar 45 hari dan
akan langsung berproduksi.

    Tidak seperti sumur minyak yang biasanya dibor lalu ditinggal, platform PHE ini akan langsung beroperasi karena secara kemampuan fasilitas sudah terpenuhi,” ungkap Yani. Meski melakukan penghematan biaya operasi, PHE WMO berhasil melampaui target produksi migas pada tahun ini sebesar 106 persen. Jumlah produksi gas pada tahun ini mencapai 100 juta kaki kubik. Revenue kami pun meningkat dua kali lipat daripada tahun lalu, padahal tidak ada sumur baru yang beroperasi, tambah Yani. Salah satu konsumen PHE WMO adalah PT Pembangunan Jawa-Bali (PJB)

IN ENGLISH

PHE WMO New Exploration Well

    The decline in world oil prices make PT Pertamina Hulu Energi West Madura Offshore (PHE WMO) cut operating costs by about 40 percent. Nevertheless, cooperation contracts SKK Migas did not loosen exploration activities migasdi area of ​​operation. General Manager of PT PHE WMO Sri Budiyani convey, today it plans to drill wells as project development EPCI bam-1.

    Preparation of drilling has been done with the installation of the platform (platform) PHE 24 and PHE-12 at 50 nautical miles off the coast of Bangkalan, Madura. The moment of the end of the year would be a critical time for us as the target platform in February 2017 there had to be operated. SKK Migas targets production of EPC-1 project as much as 1,000 barrels of oil per day (BOPD) in February 2017, then increased to 2,900 BPOD in May 2017.

    Yani, greeting familiar Sri Budiyani, states, exploration activities continue to be made to offset the natural decline in oil production in the block of WMO, which reached 50-60 percent per year. Kodeco former oil fields are old, so should continue to be explored in order to keep production costs efficiencies explained. Drilling will take place in about 45 days and will be immediately productive.

    Unlike the oil wells are typically drilled and then left, PHE platform will directly operate because the ability of the facility have been met, "said Yani. Although perform operating cost savings, WMO surpassed oil and gas production target this year of 106 percent. Total gas production this year will reach 100 million cubic feet. Our revenue has increased twice as much as last year, when there was no new wells are in operation, Yani added. One consumer PHE WMO is PT Pembangunan Jawa-Bali (PJB)

Jawa Pos, Page-6, Wednesday, Dec,21,2016

Pertamina Cari Pengganti Aramco

    PT Pertamina akan mencari mitra baru dalam proyek-revitalisasi atau peningkatan kapasitas Kilang Dumai yang berlokasi di Riau. Direktur Utama Pertamina Dwi Soetjipto mengatakan, untuk proyek penambahan kapasitas Kilang Dumai, perseroan akan mencari mitra baru karena Saudi Aramco berkeberatan. Awalnya, Aramco berkomitmen menjadi mitra Penamina dalam proyek penambahan kapasitas Kilang Cilacap, Kilang Dumai, dan Kilang Balongan.

    Namun, Pertamina meminta agar perusahaan BUMN migas asal Arab Saudi itu mengerjakan proyek ketiga kilang itu secara bersamaan. Aramco tidak bersedia untuk mengerjakan proyek tiga kilang minyak itu secara bersamaan. Dwi akan menyampaikan pencarian mitra baru pada Kamis (22/12). Pembangunan kilang harus berjalan sesuai target sehingga ketiga proyek harus dikerjakan bersamaan.

    Hal itu untuk mengejar target kapasitas kilang di Tanah Air naik menjadi dua juta barel per hari (bph) pada 2023 dibandingkan dengan saat ini sekitar 950.000 bph. Untuk kilang Dumai akan cari mitra baru. Ini menjadi topik pembicaraan. Pimpinan Saudi Aramco akan datang Kamis [22/12]. Dalam pertemuan itu akan dibahas terkait dengan penandatanganan kesepakatan kerja sama untuk bermitra yang dilanjutkan dengan pembentukan perusahaan patungan.

    Pasalnya, proses tersebut menanti penyelesaian kajian kelayakan aspek perbankan (bankable feasibility study/BFS) yang akan menghitung aset Kilang Cilacap. Saudi Aramco akan menentukan sikapnya pada 31 Desember 2016 sesuai dengan perpanjangan head of agreement (HOA). Sementara, penambahan kapasitas Kilang Balongan dari 125.000 bph menjadi 280.000 bph ditargetkan rampung pada 2023 dengan investasi US$ 2,7 miliar.

    Kilang Dumai ditargetkan bertambah kapasitasnya dari 175.000 bph menjadi 300.000 bph pada 2023 dengan investasi US$ 4,2 miliar. Joint Ventur (JV) agreement [kesepakatan membentuk perusahaan patungan] sudah pasti. Nungguin bankable feasibility study disusun nanti seperti apa. Kami kan juga akan valuasi aset existing seperti apa. Dia pun menargetkan pada 2018 konstruksi Kilang Cilacap dimulai.

    Padahal, berdasarkan rencana awal, Kilang Cilacap yang membutuhkan investasi US$ 4,5 miliar akan bertambah kapasitasnya dari 300.000 bph menjadi 370.000 bph pada 2018. Sebelumnya, Direktur Megaproyek Kilang dan Petrokimia Pertamina Rachmad Hardadi mengatakan, proyek penambahan kapasitas kilang harus berjalan secara paralel karena dapat memengaruhi kinerja masing-masing kilang.

IN ENGLISH

Pertamina's Substitute Aramco

    PT Pertamina will seek new partners in the project-revitalization or improvement of Dumai refinery capacity is located in Riau. Pertamina President Director Dwi Soetjipto said to Dumai refinery capacity expansion project, the company will look for new partners for Saudi Aramco objected. Initially, Aramco is committed to be a partner in the project Penamina Cilacap refinery capacity additions, Refinery Dumai and Balongan refinery.

    However, the state-owned company Pertamina requested that Saudi Arabia's oil and gas projects that simultaneously the three refineries. Aramco is not willing to work on the project three oil refineries simultaneously. Dwi will deliver search of new partners on Thursday (22/12). Construction of the refinery should be on target so that the three projects must be done simultaneously.

    It was to pursue the target of refining capacity in the country rose to two million barrels per day (bpd) in 2023 compared with currently around 950,000 bpd. Dumai refinery will be looking for new partners. It became a topic of conversation. Leaders Saudi Aramco will come Thursday [22/12]. During the meeting it will be discussed related to the signing of the cooperation agreement to partner, followed by the formation of a joint venture.

    Because the process is waiting for the completion of a feasibility study aspects of banking (bankable feasibility study / BFS) which will calculate the Cilacap refinery assets. Saudi Aramco will determine his attitude on December 31, 2016 in accordance with the extension of the head of agreement (HOA). Meanwhile, the addition of Balongan refinery capacity from 125,000 bpd to 280,000 bpd will be completed in 2023 with an investment of US $ 2.7 billion.

    Dumai refinery is targeted to increase its capacity from 175,000 bpd to 300,000 bpd in 2023 with an investment of US $ 4.2 billion. Joint Venture (JV) agreement [agreement to form a joint venture] for sure. Waiting bankable feasibility study compiled later like. We're also going to the valuation of existing assets like. He also targeting 2018 Cilacap Refinery construction begins.

    In fact, based on the initial plan, the Cilacap refinery which requires an investment of US $ 4.5 billion will increase capacity from 300,000 bpd to 370,000 bpd in 2018. Previously, Director megaproject Pertamina Refinery and Petrochemical Hardadi Rachmat said, the project refinery capacity additions should be run in parallel for can affect the performance of each refinery.

Bisnis Indonesia, Page-30, Wednesday, Dec,21,2016

Proses Ditargetkan Rampung Kuartal I/2017

    Kementerian BUMN memperkirakan pembentukan sejumlah holding BUMN akan terlaksana pada Kuartal I/2017, atau mundur dari rencana semula yang dipatok pemerintah pada akhir 2016. Menteri BUMN Rini Soemarno mengatakan proses pembentukan holding BUMN saat ini dalam tahap administrasi dan dokumentasi. Rini mengatakan pihaknya telah berkomunikasi dengan sejumlah pemangku kepentingan.

    Menurutnya, pembentukan holding itu mendapatkan dukungan dari stakeholders yang telah ditemui. Rini mengatakan dua holding yang akan dibentuk pertama kali adalah holding BUMN minyak dan gas serta pertambangan, atau sesuai rencana awal. Setelah itu, holding lain akan menyusul yaitu sektor perbankan, perumahan, jalan tol dan konstruksi, Sena pangan. Sebagai gambaran, dalam holding BUMN minyak dan gas, PT Perusahaan Gas Negara akan berada di bawah PT Pertamina yang akan menjadi pemimpin holding.

     Anak usaha Pertamina di bidang gas, PT Pertagas, akan berada di bawah PGN. Salah satu manfaat holding BUMN energi yang ditekankan berulang kali oleh pemerintah adalah adanya penghematan investasi infrastruktur gas dengan target sebesar US$ 1,5 miliar. Menurut data pemerintah, latar belakang pembentukan holding itu antara lain kebutuhan energi Indonesia yang diperkirakan tumbuh tujuh kali pada 2050 hingga cadangan gas Indonesia yang belum mencukupi kebutuhan domestik dan geografis Indonesia.

    Sementara itu, dalam holding BUMN tambang, PT Indonesia Asahan Alumunium akan menjadi pemimpin holding, di mana PT Bukit Asam, PT Antam dan PT Timah menjadi anggota. Perusahaan tambang multinasional asal Amerika Serikat yang 9,36% sahamnya dimiliki oleh pemerintah, PT Freeport Indonesia, bakal dimasukkan ke dalam holding. Termasuk bagian, karena itu kan tambang,” kata Rini.

IN ENGLISH

Targeted Process Completed First Quarter / 2017

    SOE Ministry estimates that the formation of a number of state-owned holding will be implemented in the first quarter / 2017, or retreat from the original plan set by the government in late 2016. SOE Minister Rini Soemarno said that the process of formation of state-owned holding currently under administration and documentation. Rini said it had communicated with a number of stakeholders.

    According to him, the formation of the holding gain the support of stakeholders that have been encountered. Rini said two holding to be formed first is a state-owned holding oil and gas as well as mining, or according to the original plan. After that, others will follow, namely holding the banking sector, housing, highways and construction, food Sena. As an illustration, the state-owned holding oil and gas, PT Perusahaan Gas Negara will be under PT Pertamina will be the leader holding.

    A subsidiary of Pertamina in the field of gas, PT Pertagas, will be below the PGN. One of the benefits of state-owned holding energy highlighted repeatedly by the government is the savings of gas infrastructure investment with a target of US $ 1.5 billion. According to government data, the background of the formation of the holding company include Indonesia's energy needs are expected to grow seven times in 2050 to Indonesia's gas reserves are insufficient domestic demand and geographical Indonesia.

    Meanwhile, the state-owned holding mine, PT Indonesia Asahan Aluminium will be the leader of a holding, in which PT Bukit Asam, PT Antam and PT Timah become a member. Multinational mining companies from the United States is 9.36% owned by the government, PT Freeport Indonesia, will be put into a holding. Including part, because it's mine, "said Rini.

Bisnis Indonesia, Page-15, Wednesday, Dec,21,2016

Skema Kontrak Hulu Migas Baru demi Efisiensi

    Efisiensi dan upaya meningkatkan daya saing akan menjadi arah pemerintah untuk menggeliatkan industri hulu migas nasional yang sempat terpukul imbas anjloknya harga minyak dunia. Upaya pembenahan iklim investasi hulu migas juga akan dituangkan dalam perbaruan skema kontrak bagi hasil (PSC) berbasis gross split, yakni pembagian produksi secara progresif tanpa mekanisme pengembalian biaya produksi (cost recovery).

    Terkait dengan kekhawatiran rendahnya serapan tingkat komponen dalam negeri (TKDN), Jonan menjamin kontrak baru itu akan membuat kontraktor kontrak kerja sama (KKKS) berusaha efisien. “Mereka akan Cari komponen dari dalam negeri yang lebih murah,” jelasnya. Dalam skema PSC gross split, pemerintah memasukkan aspek serapan TKDN yang akan memengaruhi besaran bagi hasil (split).

    Bila investor ingin mendapatkan porsi bagi hasil yang lebih besar, komitmen penyerapan komponen lokal harus diwujudkan. Anggaplah KKKS tidak mau menggunakan local content, maka tidak dapat tambahan split. Kalau serapan 1%-10%, bisa tambah split 2%, serapan 10%-30%, dapat split 5%. Bila berani serap 50%, pemerintah bisa kasih tambahan split 10%,” imbuh.

    Wakil Menteri ESDM Arcandra Tahar. Pemerintah pun akan memasang rambu besaran base split yang menjadi kesepakatan awal antara pemerintah dan investor. Skema PSC gross split efektif berlaku begitu KKKS memenangi lelang kontrak Wilayah kerja (WK) baru. Pemerintah tentunya akan mempertimbangkan jenis lapangan dalam penentuan split. “Misalnya lapangan migas yang dikelola offshore, tambahan split-nya masih nol.

    Begitu laut dalam, bisa tambah 2%-4%. Lalu kita lihat juga Wilayah kerjanya konvensional atau nonkonvensional. Tidak ketinggalan aspek kandungan CO2 (karbon dioksida),” tutur Arcandra. Harga minyak pun menjadi penentu. Saat harga minyak di bawah US$ 50 per barel, KKKS akan mendapat tambahan split. Iika harganya di atas US$80 per barel, porsi pemerintah yang bertambah.

IN ENGLISH

New Oil and Gas Upstream Contract scheme for the sake of efficiency

    Efficiency and efforts to improve competitiveness will be stretched towards the government for the national upstream oil and gas industry was hit the impact of the drop in world oil prices. Effort to revamp the upstream oil and gas investment climate will also be set forth in the contract renewal scheme for the results (PSC) based on gross split, the division of production progressively without a mechanism to recover the production costs (cost recovery).

    Concerns associated with low uptake domestic component level (DCL), Jonan ensure that the new contract will make cooperation contracts (PSC) seeks efficient. "They'll Find the components of domestic cheaper," he explained. In the scheme of gross PSC split, the government has included aspects that would affect the uptake DCL amount of profit sharing (split).

    If investors want to get a share of revenue greater absorption commitment of local components to be realized. Suppose KKKS not want to use local content, it can not be additional split. If the uptake of 1% -10%, can be added split 2%, uptake of 10% -30%, can be split 5%. When you dare to absorb 50%, the government can give an additional split of 10%, "he added.

    Deputy Minister Arcandra Tahar. The government will put up signs for the amount of base split into an initial agreement between the government and investors. Scheme gross PSC PSC split becomes effective so won the tender for contract work Territory (WK) new. The Government will certainly consider the kind of courts in the determination of the split. "For example, offshore oil and gas field run, additional split her still zero.

    So the deep ocean, can add 2% -4%. Then we see also Regional conventional or non-conventional work. Do not miss the aspect of the content of CO2 (carbon dioxide), "said Arcandra. Oil prices also be decisive. When oil prices below $ 50 per barrel, the PSC will get an extra split. Iika prices above US $ 80 per barrel, the government increased the portion.

Media Indonesia, Page-18, Tuesday, Dec,20,2016

Formula 'Gross Split' Masih Dikaji

    Kementerian Energi dan Sumber Daya Mineral masih mengkaji formula yang bakal diterapkan dalam skema bagi hasil bruto (gross split) kontrak minyak dan gas bumi. Kementerian berjanji skema ini bisa segera diterapkan. Pemerintah masih menyusun skema terbaik. Saat ini sedang dikaji simulasi yang terbaik untuk mendorong investasi migas tercapai,” ujar juru bicara Kementerian Energi, Sujatmiko. Wakil Menteri Energi Arcandra mengatakan dalam skema baru akan ada tiga komponen bagi hasil.

    Pertama adalah base split atau pembagian hasil yang tetap. Kedua, variable split, pembagian hasil dalam komponen ini ditetapkan berdasarkan variabel penentu, seperti karakter geografis wilayah kerja, tingkat penggunaan produk lokal, ataupun kandungan karbon dioksida dalam cadangan migas. Komponen ketiga adalah progressive split paling yang besarannya berubah-ubah sesuai dengan kondisi tertentu.

    Faktor ini mirip dengan skema sliding scale yang diterapkan di wilayah kerja migas non-konvensional, yaitu shale gas dan gas metana batu bara. Arcandra mencontohkan kondisi harga minyak. Misalnya oil price di bawah US$ 30, maka si kontraktor nanti dapat 5 persen split. Bila seharga US$ 30-50, dapat 4 persen, US$ 80-100 dapat nol persen tambahan split-nya.  Jika di atas US$ 100-120, nah ini kebalikan, pemerintah mendapatkan 1 persen,” kata Arcandra.

    Menteri Energi Ignasius Jonan menilai skema cost recovery sudah ditinggalkan banyak negara karena membuat industri migas tidak efisien. Tapi, Jonan menjamin biaya penggantian tetap ada hingga 25 tahun ke depan untuk menghargai kontrak yang sudah disepakati. “Yang existing tetap.” Menurut Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi Amin Sunaryadi, cost recovery saat ini masih bisa dipangkas hingga 15 persen. Tapi sekarang dia tidak bisa berbuat apa-apa karena perjanjiannya sudah dibuat 5-6 tahun lalu.

IN ENGLISH

Formula 'Gross Split' Still Assessed

    Ministry of Energy and Mineral Resources is still reviewing the formula that will be applied in the scheme for gross proceeds (gross split) of oil and gas contracts. The Ministry promised this scheme could be implemented immediately. The government is still preparing the best schemes. Currently being studied simulation best to encourage oil and gas investment is achieved, "said a spokeswoman for the Ministry of Energy, Sujatmiko. Deputy Minister of Energy Arcandra said the new scheme will have three components for the results.

    The first is the base of a split or division results were fixed. Second, variable split, division results in this component is determined based on the determining variables, such as the geographic characteristics of the working area, the level of use of local products, or the carbon dioxide content in the oil and gas reserves. The third component is the most progressive split the amount of which varies in accordance with certain conditions.

    This factor is similar to the sliding scale scheme that is applied in the region of non-conventional oil and gas, ie shale gas and coal bed methane. Arcandra exemplifies the condition of the oil price. Eg oil price below $ 30, then the contractor can later be 5 percent split. When at US $ 30-50, can be 4 percent, US $ 80-100 can be zero percent of its additional split. If it is above US $ 100-120, now is the opposite, the government gets 1 percent, "said Arcandra.

    Energy Minister Ignatius Jonan assess the cost recovery scheme was abandoned many countries as it makes oil and gas industry is not efficient. But, Jonan guarantee replacement costs remained there until 25 years into the future to reward the contract agreed. "The existing remains." According to the Head of the Special Unit of Upstream Oil and Gas Amin Sunaryadi, cost recovery is still able to cut up to 15 percent. But now he can not do anything because the deal was made 5-6 years ago.

Koran Tempo, Page-17, Tuesday, Dec,20,2016

Pemerintah Naikkan Target Lifting Minyak

Melampaui asumsi Anggaran Pendapatan dan Belanja Negara 2017

    Kementerian Energi dan Sumber Daya Mineral menyepakati penambahan produksi minyak siap jual (lifting) tahun depan menjadi 825 ribu barel per hari. Angka itu lebih tinggi dibanding asumsi Anggaran Pendapatan dan Belanja Negara 2017 yang sudah disetujui, yakni sebesar 815 ribu barel per hari. “Saya sudah janjian dengan Pak Amien (Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi/SKK Migas) lifting 825 ribu barel per hari. Lumayan, nambah 10 ribu,” ujar Menteri Energi Ignasius Jonan.

    Penambahan itu juga jauh lebih tinggi ketimbang kesepakatan SKK Migas dengan kontraktor kontrak kerja sama (KKKS) sebesar 808,4 ribu barel per hari. Jonan berpesan agar pelaku industri hulu migas lebih efisien. Kepala SKK Migas Amien Sunaryadi enggan menjelaskan detail rencana penambahan lifting. Menurut dia, meski tidak mudah, kenaikan lifting masih bisa diusahakan. Amien menjelaskan, aktivitas produksi tahun depan bakal mencakup pengeboran pengembangan di 223 sumur aktivitas kerja ulang sebanyak 860 sumur serta perawatan sumur sebanyak 57.512 kegiatan.

    Selain itu, survei seismik 2D bakal berlangsung di lahan seluas 3.080 kilometer; survei seismik 3D seluas 2.795 kilometer persegi, dan pengeboran eksplorasi di 25 sumur. Tahun depan, lifting bakal ditopang oleh wilayah kerja utama, seperti Blok Rokan di Riau yang dikelola Chevron Pacific Indonesia sebesar 228 ribu barel per hari, ExxonMobil yang mengelola Blok Cepu di perbatasan Jawa Tengah dan Jawa Timur sebesar 200 ribu barel per hari, Serta Pertamina EP (seluruh Indonesia) sebesar 84 ribu barel per hari. “Tantangan 2017 bertambah. Ini masih kurang 17 ribu barel per hari,” ujar Amien.

    Tapi SKK Migas yakin realisasi lifting bisa melampaui target dalam APBN. Tahun ini, lifting migas mencapai 831 ribu barel per hari, lebih tinggi dibanding asumsi APBN Perubahan 2016 sebesar 820 ribu. Pencapaian lifting 2016 ditopang oleh delapan dari sepuluh proyek migas yang rampung tahun ini. Di antaranya fasilitas puncak produksi Blok Cepu sebesar 185 ribu barel per hari, produksi lapangan Bukit Tua oleh Petronas Carigali Ketapang sebesar 20 ribu barel per hari, serta proyek Pertamina EP di Lapangan Pondok Makmur dan Lapangan Donggi.

    Proyek lainnya adalah Dayung Compression 2 oleh ConocoPhillips di Blok Grissik, proyek gas laut dalam Indonesia Deepwater Development (IDD) Lapangan Bangka. Sedangkan proyek Ario Damar oleh Ophir Energ bakal beroperasi beberapa hari lagi. Biaya pengganti operasi (cost recovery) yang akan dibayar tahun ini mencapai US$ 11,4   Angka ini lebih tinggi dibanding batas yang dipatok APBN-P 2016 sebesar US$ 8,4. Amien mengatakan kelebihan terjadi lantaran SKK Migas tidak bisa mengawasi transaksi yang terjadi antara vendor dan subvendor audit kami tidak melacak sampai ke situ.

Juru bicara ExxonMobil, Erwin Maryoto, siap membantu menaikkan lifting. Masalahnya, penambahan produksi Exxon pada tahun depan masih menunggu persetujuan revisi amdal. Saat ini, seluruh fasilitas untuk penambahan produksi menjadi 200 ribu barel per hari sudah siap. Perusahaan tidak perlu menambah modal, melainkan hanya menaikkan biaya operasional. Produksi naik, pasti biayanya naik.

IN ENGLISH

Government to Increase Oil Lifting Target

Assuming exceeded State Budget 2017

    Ministry of Energy and Mineral Resources agreed to increase oil production ready for sale (lifting) next year to 825 thousand barrels per day. That figure is higher than the assumption of the State Budget 2017 has been approved, which amounted to 815 thousand barrels per day. "I have an appointment with Mr. Amien (Head of the Special Unit of Upstream Oil and Gas / SKK Migas) lifting 825 thousand barrels per day. Passable, add 10 thousand, "said Energy Minister Ignatius Jonan.

    The addition was also much higher than SKK Migas deal with cooperation contracts (PSC) amounted to 808.4 thousand barrels per day. Jonan advised that the upstream oil and gas industry more efficient. SKK Migas head Amien Sunaryadi reluctant to explain the details of the plan to increase lifting. According to him, though not easy, the increase in lifting is still workable. Amien explained, next year's production activity will include the drilling of 223 development wells in the work activities as much as 860 wells and well maintenance activities as much as 57 512.

    In addition, 2D seismic survey will take place in an area of ​​3,080 kilometers; 3D seismic survey covering an area of ​​2,795 square kilometers, and exploration drilling in 25 wells. Next year, the lifting will be supported by the working area of ​​the main, such as Block Rokan in Riau being managed by Chevron Pacific Indonesia amounting to 228 thousand barrels per day, ExxonMobil managing Cepu block on the border of Central Java and East Java amounted to 200 thousand barrels per day, as well as Pertamina EP (throughout Indonesia) amounted to 84 thousand barrels per day. "The challenge in 2017 is increased. This is still less than 17 thousand barrels per day, "said Amien.

    But sure realization lifting SKK Migas could exceed the target in the state budget. This year, oil and gas lifting reaches 831 thousand barrels per day, higher than the 2016 revised state budget assumption of 820 thousand. Lifting the achievement of 2016 is supported by eight of the top ten oil and gas projects were completed this year. Among these facilities Cepu peak production of 185 thousand barrels per day, production Bukit Tua field by Petronas Carigali Ketapang by 20 thousand barrels per day, as well as Pertamina EP project in Pondok Makmur and Donggi Field.

    Another project is a Compression Paddle 2 by ConocoPhillips in Block Grissik, marine gas project in Indonesia Deepwater Development (IDD) Field Bangka. While Ario Damar project by Energ Ophir will operate a few more days. Operating replacement costs (cost recovery) which will be paid this year to reach US $ 11.4 figure is higher than the limit set APBN-P 2016 amounted to US $ 8.4. Amien said excess occurs because SKK Migas can not monitor transactions that take place between the vendor and the audit subvendor we do not keep track of that.

    ExxonMobil spokesman Erwin Maryoto, ready to help raise lifting. The problem is, the addition of Exxon's production in the next year are still pending revision of EIA. Currently, the entire facility to increase production to 200 thousand barrels per day is ready. Companies do not need to raise capital, but only increase operating costs. Production increases, the cost is definitely rising.

Koran Tempo, Page-17, Tuesday, Dec,20,2016

Holding Migas dan Tambang Rampung Awal 2017

    Menteri Badan Usaha Milik Negara Rini Soemarno mengatakan pembentukan perusahaan induk (holding) BUMN pada sektor minyak dan gas Serta sektor pertambangan akan selesai pada kuartal pertama tahun depart “Ini lagi jalan dan lagi proses. Alhamdulillah, semua Stakeholder mendukung. Saya berharap insya Allah akan selesai pada kuartal pertama tahun depan,” ujar Rini.

    Menurut Rini, pembentukan holding seharusnya rampung pada akhir 2016. Saat ini, proses administrasi dan dokumentasi sedang dilakukan. “Saya melihat prosesnya yang cukup panjang, jadi akan selesai pada kuartal pertama (2017). Selain sektor migas dan pertambangan, Rini menargetkan pembentukan perusahaan induk BUMN sektor perumahan dapat selesai pada Waktu yang sama.

    Semoga holding peruninas juga akan selesai tahun depan pada kuartal pertama,” kata dia. Rencananya, perusahaan induk di sektor migas akan menyatukan dua perusahaan besar, yaitu PT Pertamina  dan PT PGN. Dalam hal ini, Pertamina akan menjadi induk. Adapun perusahaan induk pada sektor pertambangan akan menyatukan empat perusahaan, yakni PT Inalum, PT Bukit Asam, PT Timah, dan PT Aneka Tambang.

    Di sektor ini,Inalum menjadi perusahaan induk. Rini sebelumnya mengatakan pembentuk induk dapat memperkuat permodalan tanpa membebani Anggaran Pendapatan dan Belanja Negara. Deputi Bidang Usaha Konstruksi dan Sarana dan Prasarana Perhubungan Kementerian BUMN, Pontas Tambunan, sebelumnya mengatakan Kementerian BUMN juga akan membentuk holding BUMN sektor maritim pada tahun depan. Saat ini, pembentukan itu baru masuk tahap diskusi konsep dan benchmarking. Adapun sosialisasi ke lingkup internal masing-masing BUMN maritim dan pembahasan lintas sektor belum dimulai.

IN ENGLISH

Holding Oil, Gas and Mining Completed Early 2017

    State Owned Enterprises Minister Rini Soemarno said the formation of the holding company (holding) state enterprises in the oil and gas sector As well as the mining sector will be completed in the first quarter depart "It's another way, and again the process. Alhamdulillah, all Stakeholder support. I hope, God willing, will be completed in the first quarter of next year, "said Rini.

    According to Rini, formation of a holding should be completed by the end of 2016. Currently, the administrative process and documentation is being carried out. "I see the process is quite long, so it will be completed in the first quarter (2017). In addition to oil and gas and mining sectors, Rini is targeting the establishment of the parent company SOE housing sector can be completed at the same time.

    Hopefully holding peruninas also be completed next year in the first quarter, "he said. The plan, the parent company in the oil and gas sector will unite two great companies, namely PT Pertamina and PT PGN. In this case, Pertamina will be the parent. The parent company in the mining sector will bring together four companies, namely PT Inalum, PT Bukit Asam, PT Timah and PT Aneka Tambang.

    In this sector, Inalum became the parent company. Rini had earlier said stem-forming can strengthen the capital without burdening the State Budget. Deputy of Construction and Transportation Infrastructures Ministry of SOEs, Pontas Tambunan, said the SOE Ministry will also establish a state-owned holding of the maritime sector in the next year. At present, the formation of a new entry discussion stage concept and benchmarking. As for dissemination to the internal sphere of each SOE maritime and cross-sector discussion has not started yet.

Koran Tempo, Page-16, Tuesday, Dec,20,2016

Oil, Gas Blocks at Risk as Contracts Expire

    Indonesia’s infamous red tape and lack of transparency have led to reluctance among oil and gas companies to continue investing in the upstream industry, leaving state oil and gas firm Pertamina to take charge. A recently released report by energy research group Wood Mackenzie states that up to 35 production sharing contracts (PSCS) worth around US$10 billion will expire in the next decade. The PSCs amount to over 1 million barrels of oil equivalent per day (boepd) of this year’s production.

    Wood Mackenzie upstream oil and gas analyst John Utama told The Jakarta Post that uncertainty remains one of the biggest barriers to up-stream investment in Indonesia, with its lack of transparent guidelines on PSC extensions and clarification on the abandonment and site restoration obligations for expiring PSC. The lack of interest is clear in several offers the government has made in the past year; when the Energy and Mineral Resources Ministry put 14 conventional oil and gas blocks up for tender, with seven up for direct offers and the remaining up for open bidding.

    Since then, only three direct appointment blocks were picked up, while the remaining seven attracted no offers. Utama claimed that many companies currently investing in the Indonesian oil and gas sector cannot justify further investment in the country due to more prospective options abroad. They have other investment options that offer more attractive returns or with lower risk levels. In the exploration bid rounds launched in recent years, interest has been limited, even though Indonesia has made efforts to improve the fiscal terms on offer,” he said. “The results imply the attractiveness of the fiscal terms does not surpass the geological or regulatory risks associated with doing business in Indonesia.

    The decreasing trend of investments in the upstream oil and gas sector is not new, with last year’s investments in exploitation fields dropping by 20 percent to $15.1 billion from the previous year. Meanwhile, investment in exploration fields only amounted to $ 515 million last year due to sluggish growth in global oil prices. The trend continues as the Up-stream Oil and Gas Regulatory Special Task Force (SKK Migas) reported that a measly $ 367 million was invested in exploration activities in the first half of this year, equal to only 6.4 percent of the total investment of $5.7 billion in the oil and gas industry.

    Wood Mackenzie’s report states that Pertamina will play a key role in expiring assets with strategic value to the country given its interest in meeting aggressive near to mid term production targets, reaching 2.2 million boepd in 2025. Mature projects such as Mahakam in East Kalimantan, Corridor in South Sumatra and Jabung in Jambi, which account for over 80 percent of expiring PSCS. already have extensive infrastructure in place and the potential to deliver stable cash How. According to an existing regulation issued in 2015, Pertamina has

Jakarta Post, Page-13, Tuesday, Dec,20,2016

Pertamina Tambah Impor LPG Iran 500 Ribu Ton

    PT Pertamina telah meneken kontrak dengan National Iranian Oil Company (NIOC) untuk tambahan impor gas minyak cair/LPG sebesar 500 ribu metrik ton pada tahun depan. Selain LPG, Pertamina juga mengimpor minyak mentah sebanyak 1 juta barel. Direktur Utama Pertamina Dwi Soetjipto mengatakan, perusahaan sebenarnya telah mengimpor LPG dari Iran pada tahun ini. Impor ini dilanjutkan pada tahun depan untuk volume sebesar 500 ribu metrik ton atau setara dengan 12 kargo. Awal Januari nanti mulai pengiriman. Tetapi kan sudah mulai beberapa (kargo) spot di tahun ini,” kata dia.

    Impor LPG ini merupakan hasil kesepakatan antara Pemerintah Indonesia dan Iran pada awal 2016 yang ditindak lanjuti penandatangan pokok perjanjian (head of agreement/HoA) oleh Pertamina dan NIOC. Dalam HOA tersebut disepakati jual beli LPG Pertamina dengan NIOC untuk tahun 2016 dan 2017 dengan total volume 600 ribu metrik ton. Pada 2016, Pertamina telah mengimpor sekitar 80 ribu metrik ton. Tak hanya LPG, Dwi menuturkan, pihaknya juga telah sepakat mengimpor minyak mentah dari Iran. Kesepakatan ini tinggal diformalkan dalam bentuk kontrak.

    Rencananya, Pertamina akan mengimpor sebesar 1 juta barel terlebih dahulu untuk diuji coba di Kilang Cilacap, Jawa Tengah. “Untuk diuji coba untuk lihat hasil yield-nya. Ini bisa dinegosiasikan untuk (kontrak) jangka panjang,” tambah dia. Uji coba akan dilakukan pada kuartal pertama 2017. Pertamina juga sedang mencoba impor gas minyak cair (liquefied natural gas/LNG) dari Iran. Pasalnya, harga gas di Iran terhitung cukup rendah. Apalagi, selama ini Iran belum pernah mengekspor LNG. “Sekarang belum bisa, nanti kalau sudah ada fasilitasnya barangkali bisa ekspor,” tutur Dwi.

    Impor gas dan minyak diperlukan mengingat kebutuhan dalam negeri terus meningkat setiap tahunnya. Untuk minyak mentah dan LPG, Indonesia memang harus terpaksa impor lantaran produksi dalam negeri tidak dapat menutup kebutuhan. Untuk gas alam, Indonesia diperkirakan butuh impor mulai 2019-2020 nanti. Tak hanya kerja sama hilir, Dwi menegaskan, Pertamina juga berminat masuk ke blok migas di Iran. Sejak Agustus lalu, perusahaan migas pelat merah ini telah melakukan evaluasi pada dua blok, yakni Ab-Teymour dan Mansouri (Bangestan - Asmari).

    Pertamina bertekad menjadi operator blok migas di Iran. “Ini disambut baik Presiden Iran supaya segera disampaikan proposal (rencana pengembangan blok migas). Paling lambat Februari 2017 akan kami serahkan,” ujarnya. Direktur Hulu Pertamina Syamsu Alam menambahkan, pihaknya sebenarnya menginginkan ada kesepakatan yang ditanda tangani pada kunjungan ke Iran pekan lalu. Namun, lantaran kajian untuk proposal belum selesai, Pertamina sepakat menunda adanya penandatangan kesepakatan sampai proposal diserahkan pada Februari nanti.

    Yang mereka minta adalah Pertamina harus bisa menunjukkan kemampuan teknis dan (skema) finansialnya menarik,” kata dia. Setelah proposal diserahkan pada Februari nanti, NIOC disebutnya akan mengevaluasi apakah tawaran Pertamina cukup bagus bagi mereka. Pasalnya, perusahaan migas yang berminat masuk di dua lapangan tersebut bukan hanya Pertamina saja. Walaupun, Iran lah yang awalnya menawarkan kedua blok ini kepada Pertamina.

    Di Iran sendiri, lanjutnya, Pertamina berminat menjadi operator walaupun tidak memegang hak partisipasi 100%. “Jadi bentuknya kerja sama, tidak purely PSC seperti di sini. Kemungkinan service contract tetapi kita bisa dapat entitlement (minyak) ,” kata Alam. Menurut Alam, Blok Ab-Teymour dan Mansouri memiliki cadangan hingga 3 miliar barel dan produksi ratusan ribu barel per hari. Pertamina menyambut tawaran Iran untuk masuk blok ini lantaran keduanya masuk dalam daftar blok yang ingin diakuisisi, yakni telah menghasilkan minyak. Pertamina menargetkan, jika NIOC sepakat, kontrak pengerjaan blok migas itu dapat ditanda tangani pada 2017.

IN ENGLISH

Add Pertamina LPG Import Iran 500 Thousand Tons

    PT Pertamina has signed a contract with the National Iranian Oil Company (NIOC) for additional imports of liquefied petroleum gas / LPG amounted to 500 thousand metric tons in the next year. Besides LPG, Pertamina also imports crude oil by 1 million barrels. Pertamina President Director Dwi Soetjipto said, the company actually has to import LPG from Iran this year. These imports continued on next year's volume of 500 thousand metric tons, equivalent to 12 cargoes. Beginning January starts shipping. But it's already started some (cargo) spot this year, "he said.

    LPG imports is the result of an agreement between the Government of Indonesia and Iran in early 2016 followed up the principal signatories of the agreement (head of agreement / HoA) by Pertamina and NIOC. In the HOA selling LPG Pertamina agreed with NIOC for the years 2016 and 2017 with a total volume of 600 thousand metric tons. In 2016, Pertamina has imported about 80 thousand metric tons. Not only LPG, Dwi said, it also has agreed to import crude oil from Iran. This agreement was formalized in the form of a contract to stay.

    The plan, Pertamina will import 1 million barrels in advance to be tested in Cilacap, Central Java. "To be tested to see results it yields. This can be negotiated for (contract) long term, "he added. The trial will be conducted in the first quarter of 2017. Pertamina also trying to import liquefied petroleum gas (liquefied natural gas / LNG) from Iran. Because the price of gas in Iran comparatively quite low. Moreover, so far Iran has not been exporting LNG. "Now you can not, when you get there trimmings may be able to export," said Dwi.

    Imports of gas and oil is required in view of the domestic demand continues to increase every year. For crude oil and LPG, Indonesia had to be forced to import because domestic production can not cover the needs. For natural gas, Indonesia is estimated to import started later 2019-2020. Not only cooperation downstream, Dwi asserted, Pertamina is also interested in joining to the oil and gas block in Iran. Since last August, oil and gas company red plate has conducted an evaluation of the two blocks, namely the Ab-Teymour and Mansouri (Bangestan - Asmari).

    Pertamina is committed to becoming operator of oil and gas blocks in Iran. "It welcomed the President of Iran to immediately submitted a proposal (plan of development of oil and gas blocks). No later than February 2017 we will proceed, "he said. Pertamina Upstream Director Syamsu Alam added, it actually wants there is a deal which was signed on a visit to Iran last week. However, because the study for the proposal has not been completed, Pertamina agreed to delay their signatories to the accord until the proposal submitted in February.

    All they ask is Pertamina must be able to demonstrate technical proficiency and (scheme) financial interest, "he said. After the proposal submitted in February, NIOC calls will evaluate whether the bid Pertamina good enough for them. Because oil and gas company that is interested in joining the two field not only Pertamina only. Although, Iran was the one who originally offered the two blocks to Pertamina.

    In Iran itself, he added, Pertamina is interested in becoming an operator though it holds 100% participating interest. "This would be essentially the same work, not purely PSC as here. Possible service contract but we could be entitlement (oil), "Alam said. According to Alam, Block Ab-Teymour and Mansouri has reserves of up to 3 billion barrels and production of hundreds of thousands of barrels per day. Pertamina welcomed Iran's offer to sign this block because both are included in the list of blocks that want to be acquired, which has produced oil. Pertamina targets, if NIOC agreed, contract processing oil and gas blocks that can be signed in 2017.

Investor Daily, Page-9, Tuesday, Dec,20,2016