Indonesia Should Start Build Infrastructure

    Energy analyst, Marwan Batubara assess if Indonesia is to switch to the management of oil energy gas energy to the Indonesia should start by building the first energy infrastructure of the gas. Marwan explained, the discourse of transition from an energy source to oil gas energy sources has become an old issue. However, realization of this discourse is not as fast as originally discourse.

     He saw, if Indonesia is committed to switch, it requires a strong infrastructure for support this plan. , There must be a clear scheme. First wake infrastructure. Whether to use a pipeline or LNG. Not only that, for example, starts with small things, ie transport it must be built SPBGs, "said Marwan. Marwan explained, when the gas energy use to be developed means there needs to be a culture which was also built in the community.

      Marwan explained that culture could be created by making public no longer dependent on oil energy sources. General fuel Filling stations (gas stations) propagated. And people should also be given a guarantee that the supply is safe. also the price should be 30 per cent below the fuel so that people also want to move on, "said Marwan.

    He saw the potential for very large gas energy. According to the present 40 per cent of the existing gas production is exported abroad. Opportunities sources of gas also much remains unexplored. East Natuna. In Masala. There are huge reserves. We just figure out how to distribute it. Well starting from building refineries refinery in the vicinity of the purpose of consumption, "said Marwan. Meanwhile, PT Perusahaan Gas Negara (PGN) continues to expand its network of natural gas in various regions to build a 195 km pipeline in 2016.

IN INDONESIAN

Indonesia Harus Mulai Bangun Infrastruktur

    Pengamat energi, Marwan Batubara menilai jika Indonesia hendak beralih ke pengelolaan dari energi minyak ke energi gas maka Indonesia hams memulai dengan membangun terlebih dahulu infrastruktur energi gas tersebut. Marwan menjelaskan, wacana peralihan dari sumber energi minyak ke sumber energi gas sudah menjadi isu lama. Namun, realisasi akan wacana ini tak secepat wacana awalnya.

     Ia melihat, jika memang Indonesia berkomitmen untuk beralih, maka diperlukan infrastruktur yang kuat untuk mendukung rencana ini. , Harus ada skema yang jelas. Bangun dulu infrastrukturnya. Apakah akan menggunakan pipa atau LNG. Tak hanya itu, misal dimulai dari hal kecil, yaitu transportasi maka harus dibangun SPBG," ujar Marwan. Marwan menjelaskan, ketika penggunaan energi gas hendak dikembangkan berarti perlu ada budaya yang juga dibangun di masyarakat.

      Marwan menjelaskan, budaya tersebut bisa diciptakan dengan membuat masyarakat tak lagi bergantung pada sumber energi minyak. Stasiun Pengisian Bahan Bakar Umum (SPBU) diperbanyak. Dan masyarakat juga harus diberikan jaminan bahwa pasokan aman. Selain itu harganya harus 30 persen dibawah bahan bakar minyak agar masyarakat juga mau beralih," ujar Marwan.

    Ia melihat potensi energi gas sangatlah besar. Menurutnya hingga saat ini 40 persen dari produksi gas yang ada masih diekspor ke luar negeri. Peluang sumber sumber gas juga masih banyak yang belum dieksplore. Di East Natuna. Di Masala. Ada cadangan yang sangat besar. Kita tinggal memikirkan bagaimana caranya mendistribusikan ini. Nah dimulai dari membangun kilang kilang di sekitar daerah tujuan konsumsi," ujar Marwan. Sementara itu, PT Perusahaan Gas Negara  (PGN) terus memperluas jaringan gas bumi di berbagai daerah dengan membangun pipa sepanjang 195 km pada 2016.

Harian Bangsa, Page-4, Tuesday, Dec, 27,2016

Petrochemical Integrated Gas Fields

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) IGN Wiratmaja say, gas field development still faces many challenges. From the upstream side as a gas pipeline infrastructure or regasification facilities are not ready. On the downstream side, he said, yet many buyers are ready to absorb gas. According to him, the government encourages the gas can be utilized to enhance the petrochemical industry. This is in accordance with the plan in the Ministry of Industry to make an industrial area in Bintuni Bay, Papua.

    The government plans to build a methanol plant with a capacity of 1 million tonnes worth US $ 900 million. The plant produced the final product such as polyethylene and polypropylene, which is still imported about 50% of total demand in the country. The government is promoting the use of integrated petrochemical complex. He admits, be some commercial factors often become barriers to the development of domestic gas.

    Approval of the field development plan (plan of development / PoD) an oil and gas field will take some time due to commercial factors that constrained because it is difficult to get prospective buyers. not finished. As a development plan or PoD l Block Kasuri, Papua, which until now could not be approved by the Minister for buyers that are not ready to absorb gas from oil and gas blocks operated by Genting Oil Kasuri Pte Ltd.

    Chief Spokesman Special Unit of Upstream Oil and Gas (SKK Migas) Taslim Z. Yunus said Kasuri Block is still looking for potential buyers of gas. Previously, SKK Migas will give you the option of exchange or swap between Kasuri and gas from Tangguh Train lll. However, it failed to do because of a petrochemical plant to be built by PT Pupuk Indonesia completed in 2022 or later than scheduled Kasuri first gas production in 2019.

    He mentioned, there are other options that gas buyers Ferrostaal that will be used for petrochemical raw materials and hire a floating gas liquefaction facilities. With a selling price of US $ 6 per MMBtu, he said, there has been no commitment from the buyer. As a result, approval Kasuri Block PoD I can not be completed in this year. "Buyers [gas] wrote unclear. He estimates, POD 1 Kasuri approved by the Minister of Energy and Mineral lgnasius Jonan January 2017. Kasuri Block is projected to produce 285 MMSCFD gas from the investment of US $ 900 million. Masela are still facing problems.

    In another development, the Coordinating Minister for maritime Luhut Binsar Pandjaitan said, from several points into the discussion, there are two things that have not been agreed between Inpex and the government to develop the Abadi field, Masela in Maluku. According to him, the demand for replacement operator ten-year contract term that has been used to study the construction of refineries Floating Liquefied Natural Gas / FLNG as well as increase the production capacity of 7.5 million tonnes per annum / mtpa to 9.5 mtpa is still under discussion. "Regarding Masela, they [Inpex] asked for 10 years, but we see a realistic figure is seven years.

    In addition, the related costs incurred during the study period FLNG worth US $ 1.2 billion, according to Luhut, they may be returned through cost recovery. However, he cited the return would not be in accordance with the proposed nominal having to go through the audit process first. "Regarding cost recovery they requested US $ 1.2 billion, subject to audit our responsibility. We need fairness also about it.

    Jonan lgnasius Minister of Energy and Mineral Resources said it has provided answers on several points proposed Inpex project will be run in accordance with the economies of scale. According to the former Minister of Transportation, the government has insisted that not all the points you want Inpex be granted. Some of the points that is expected to create economies of scale projects are on the increase in production capacity from 7.5 mtpa to 9.5 mtpa, suspension of the contract for ten years has been used to conduct a study for an offshore plant.

    Inpex also requested the ratio of return on investment (internal rate of return / IRR) of 15%, return on operating costs since the contract was signed in 1998, help accelerate the licensing process so that the project is progressing on schedule.

IN INDONESIAN

Lapangan Gas Terintegrasi Petrokimia

    Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) IGN Wiratmaja mengatakan, pengembangan lapangan gas masih menghadapi berbagai tantangan. Dari sisi hulu seperti infrastruktur pipa gas atau fasilitas regasifikasi belum siap. Di sisi hilir, lanjutnya, belum banyak pembeli yang siap menyerap gas. Menurutnya, pemerintah mendorong agar gas dapat dimanfaatkan untuk meningkatkan industri petrokimia. Hal tersebut sesuai dengan rencana di Kementerian Perindustrian untuk membuat kawasan industri di Teluk Bintuni, Papua.

     Pemerintah berencana membangun pabrik metanol dengan kapasitas 1 juta ton senilai US$ 900  juta. Pabrik tersebut memproduksi produk akhir seperti polietilena dan polipropilena yang saat ini masih diimpor sekitar 50% dari total kebutuhan di Tanah Air. Pemerintah sedang mendorong pemanfaatan untuk komplek petrokimia terintegrasi. Dia mengakui, beberap faktor komersial kerap menjadi hambatan pengembangan gas di dalam negeri.

    Persetujuan rencana pengembangan lapangan (plan of development/PoD) suatu lapangan minyak dan gas bumi pun membutuhkan waktu lama karena faktor komersial yang terkendala karena sulit mendapatkan calon pembeli. belum terselesaikan. Seperti rencana pengembangan atau PoD l Blok Kasuri, Papua yang hingga saat ini belum bisa disetujui oleh Menteri ESDM karena belum memperoleh pembeli yang siap menyerap gas dari blok migas yang di operasikan oleh Genting Oil Kasuri Pte  Ltd.

    Kepala Juru Bicara Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Taslim Z. Yunus mengatakan, Blok Kasuri hingga saat ini masih mencari calon pembeli gas. Sebelumnya, SKK Migas akan memberikan opsi tukar atau swap antara gas dari Kasuri dan Tangguh Train lll. Namun, hal itu urung dilakukan karena pabrik petrokimia yang akan dibangun oleh PT Pupuk Indonesia rampung 2022 atau lebih lambat dari jadwal produksi gas pertama Kasuri pada 2019.

    Dia menyebut, ada opsi lain pembeli gas yakni Ferrostaal yang akan digunakan untuk bahan baku petrokimia dan menyewa fasilitas pencairan gas terapung. Dengan harga jual US$ 6 per MMBtu, dia menuturkan, belum terdapat komitmen dari pembeli. Alhasil, persetujuan PoD I Blok Kasuri belum bisa dirampungkan pada tahun ini. “Pembeli [gas] aja belum jelas. Dia memperkirakan, POD 1 Kasuri mendapat persetujuan Menteri ESDM lgnasius Jonan pada Januari 2017. Blok Kasuri diproyeksikan akan menghasilkan gas 285 MMscfd dari investasi senilai US$ 900 juta.  Blok Masela juga masih menghadapi persoalan.

    Dalam perkembangan lain, Menteri Koordinator Bidang Kemaritiman Luhut Binsar Pandjaitan mengatakan, dari beberapa poin yang menjadi pembahasan, masih terdapat dua hal yang belum disepakati antara Inpex dan pemerintah untuk mengembangkan Lapangan Abadi, Masela di Maluku. Menurutnya, permintaan operator untuk penggantian masa kontrak sepuluh tahun yang telah digunakan untuk melakukan kajian pembangunan kilang Floating Liquefied Natural Gas/FLNG serta menambah kapasitas produksi dari 7,5 million ton per annum/mtpa menjadi 9,5 mtpa masih dalam pembahasan. “Mengenai Masela, mereka [Inpex] minta 10 tahun, tetapi kami melihat angka realistis adalah tujuh tahun.

     Selain itu, terkait biaya yang telah dikeluarkan selama masa kajian FLNG senilai US$1,2 miliar, menurut Luhut, masih mungkin dikembalikan melalui cost recovery. Namun, dia menyebut pengembalian tak akan sesuai dengan nominal yang diajukan karena harus melalui proses audit terlebih dahulu. “Mengenai cost recovery yang mereka minta US$ 1,2 miliar, kami jawab subyek kepada audit. Kami harus fairness juga mengenai hal itu.

    Menteri ESDM lgnasius Jonan mengatakan, pihaknya telah memberikan jawaban terkait beberapa poin yang diusulkan Inpex agar proyek bisa berjalan sesuai dengan skala keekonomian. Menurut mantan Menteri Perhubungan itu, pemerintah telah menegaskan bahwa tidak semua poin yang diinginkan Inpex dapat dikabulkan. Beberapa poin yang diharapkan bisa membuat proyek berjalan sesuai skala ekonomi yakni peningkatan kapasitas produksi dari 7,5 mtpa menjadi 9,5 mtpa, penangguhan masa kontrak selama sepuluh tahun yang telah digunakan untuk melakukan kajian pembangunan kilang terapung.

     Inpex juga meminta rasio pengembalian investasi (internal rate of return/IRR) sebesar 15%, pengembalian biaya operasi sejak masa kontrak diteken pada 1998, bantuan percepatan proses perizinan agar proyek berjalan sesuai jadwal.

Bisnis Indonesia, Page-30, Tuesday, Dec, 27,2016

Market Waiting to Realization Pruning

    Plans production cuts at the beginning of 2017 managed to heat up crude oil prices at the end of the year. the realization that action is needed to balance the market in the long term. On Friday's trade '(23/12) the price of WTI oil contracts in February 2017 is at US $ S3,02 per barrel, up 0.07 points, or 0.13%. Meanwhile, Brent oil contract last February 2017 at US $ 55.21 per barrel, up 1.19 points or 2.2%. Michael Lynch, president of Strategic Energy & Economic Research, said the market rejoiced that OPEC pledged to cut supply and inventory.

    This sentiment led to a more balanced oil market in 2017. "The big test will come after the New Year [2017], whether the producers to realize production cut agreement. Even tend optimistic, the market is still in doubt with the agreement of OPEC and non-OPEC. In the OPEC meeting in Vienna , Austria, on November 30, OPEC decided to cut production by 1.2 million barrels per day to 32.5 million barrels per day from the beginning of 2017. the market welcomed this plan that bolsters the price.

    Saudi Arabia cut about 486,000 barrels per day in an effort to end the surplus market. In October 2016, the largest oil producer in OPEC it produces 10.63 million barrels per day. Furthermore, on December 10, 2016, members of OPEC and the oil producing countries non-members reached agreement withhold supply for the first time since 2001. The reduction is aimed at curbing excess supply in the market at the same time stabilize oil prices. The non-OPEC producers agreed to cut the supply of new up to 558,000 barrels per day, including Russia amounted to 300,000 barrels per day.

    Earlier, OPEC wants non-member countries can cut up to 600,000 barrels per day. According to research by Goldman Sachs Group Inc., signing an agreement after nearly a year of debate between OPEC and non-member countries such as Russia managed to hoist the price the market will focus on compliance with the agreement. Goldman Sachs estimates that if the deal is realized, then the WTI oil price of $ 55 per barrel in the first half / 2017.

    This estimate reflects a reduction of production by 1 million to 1.6 million barrels per day globally. Actually, the price could reach the level of US $ 60 per barrel. However, there are still projected high prices may tempt producers to re-stimulate the supply, especially the United States. The parties would cut production of OPEC are 10 countries and 13 members from 1 January 2017, Saudi Arabia contributed to the greatest cuts, which is 486,000 barrels per day, followed by Iraq number 210,000 barrels per day.

    As for Nigeria and Libya exempt from reductions because the state needs funds to recover after the terrorist attacks, "citing research Goldman Sachs. Tim Evans, analyst at Citi Futures Perspective in New York, said the oil market is now in a situation overbought (oversold), so vulnerable to a correction . Every negative sentiment, the price can be shaken, however, in the near term sentiment is still overshadow the oil market.

    One of them came from Saudi Arabia's statement Energy Minister Khalid Al-Falih and United Arab Emirates Energy Minister Suhail Al-Mazrouei who believe action OPEC production cuts will make oil prices drove higher in 2017. Rev. Tribowo Laksono, Central Capital Futures analyst, said the deal production cuts among OPEC and other oil producing countries after 15 years managed to make the price rally. In the short term, prices experienced a bullish trend.

    In the medium term, crude oil prices will move in the range of US $ 50-US $ 60 per barrel. As for the short-term level US$ 55 per barrel to the next target. Pruning is necessary for the production of producer countries to lift the back of crude oil prices.

IN INDONESIAN

Pasar Tunggu Realisasi Pemangkasan

     Rencana pemangkasan produksi pada awal 2017 berhasil memanaskan harga minyak mentah pada akhir tahun.   realisasi aksi tersebut dibutuhkan untuk menyeimbangkan pasar dalam jangka panjang. Pada perdagangan Jumat ‘(23/12) harga minyak WTI kontrak Februari 2017 berada di posisi US$S3,02 per barel, naik 0,07 poin atau 0,13%. Sementara itu, minyak Brent kontrak Februari 2017 bertahan di US$ 55,21 per barel, meningkat 1,19 poin atau 2,2%. Michael Lynch, President of Strategic Energy & Economic Research, mengatakan pasar bergembira karena OPEC berjanji mengurangi suplai dan persediaan.

    Sentimen ini menyebabkan pasar minyak lebih seimbang pada 2017. "Tes besar akan datang setelah Tahun Baru {2017], apakah para produsen merealisasikan perjanjian pemangkasan produksi. Meskipun cenderung optimis, pasar masih ragu dengan perjanjian OPEC dan non-OPEC. Dalam rapat OPEC di Wina, Austria, pada 30 November, OPEC memutuskan pemangkasan produksi sebesar 1,2 juta barel per hari menjadi 32,5 juta barel per hari mulai awal 2017. Pasar menyambut baik rencana ini sehingga melejitkan harga.

    Arab Saudi memotong sekitar 486.000 barel per hari sebagai upaya mengakhiri surplus pasar. Pada Oktober 2016, produsen minyak terbesar di OPEC itu menghasilkan 10,63 juta barel per hari. Selanjutnya pada 10 Desember 2016, anggota OPEC dan negara produsen minyak non-anggota mencapai kesepakatan menahan suplai untuk pertama kalinya sejak 2001. Pengurangan produksi ini bertujuan mengendalikan kelebihan pasokan di pasar sekaligus menstabilkan harga minyak. Para produsen non-OPEC sepakat memangkas suplai baru hingga 558.000 barel per hari, termasuk Rusia sebesar 300.000 barel per hari.

    Sebelumnya, OPEC menginginkan agar negara non-anggota bisa memotong hingga 600.000 barel per hari. Menurut riset Goldman Sachs Group Inc., penandatanganan kesepakatan setelah proses perdebatan hampir setahun antara OPEC dan negara non-anggota seperti Rusia berhasil mengerek harga pasar akan berfokus kepada kepatuhan terhadap perjanjian tersebut. Goldman Sachs mengestimasi bila kesepakatan terealisasi, maka harga minyak WTI mencapai US$55 per barel pada semester I/2017.

    Perkiraan ini mencerminkan adanya pemotongan produksi sebesar 1 juta-1,6 juta barel per hari secara global. Sebetulnya, harga bisa saja menembus level US$ 60 per barel. Namun, masih ada proyeksi tingginya harga dapat menggoda negara produsen untuk kembali memacu suplai, khususnya Amerika Serikat. Pihak-pihak yang akan memangkas produksi dari OPEC adalah 10 negara dan 13 anggota mulai 1 Januari 2017. Arab Saudi berkontribusi dalam pemotongan paling besar, yakni 486.000 barel per hari, disusul Irak sejumlah 210.000 barel per hari.

    Adapun Nigeria dan Libia dibebaskan dari pengurangan karena negara membutuhkan dana untuk memulihkan kondisi setelah serangan teroris," mengutip riset Goldman Sachs. Tim Evans, analis Citi Futures Perspective di New York, mengatakan pasar minyak kini dalam situasi overbought (jenuh beli), sehingga rentan koreksi. Setiap ada sentimen negatif maka harga dapat terguncang Namun, dalam waktu dekat sentimen positif masih menaungi pasar minyak.

    Salah satunya berasal dari pemyataan Menteri Energi Arab Saudi Khalid Al-Falih dan Menteri Energi Uni Emirat Arab Suhail Al-Mazrouei yang meyakini tindakan pemangkasan produksi OPEC membuat harga minyak bakal melaju lebih tinggi pada 2017. Wahyu Tribowo Laksono, analis Central Capital Futures, mengatakan kesepakatan pemangkasan produksi antara OPEC dan negara produsen minyak lainnya setelah 15 tahun berhasil membuat reli harga. Dalam jangka pendek, harga mengalami tren bullish.

     Dalam jangka menengah, harga minyak mentah akan bergerak dalam kisaran US$50-US$60 per barel. Adapun dalam jangka pendek level US$ 55 per barel menjadi target berikutnya. Pemangkasan produksi diperlukan bagi negara produsen untuk mengangkat kembali harga minyak mentah.

Bisnis Indonesia, Page-16, Tuesday, Dec, 27,2016

Recall News newspaper Saudia 49% Stake Sales Aramco

    A financial newspaper Saudi Arabia on Sunday (25/12) local time recall the news about the government's plans to sell 49% stake in state-owned oil company Aramco in the next 10 years. The news was published in the Saturday edition (24/12). "Al Eqtisadiah apologize for the information already published on Aramco," the statement said the newspaper, which, like most of the media in Saudi Arabia, close to the government. The Saturday edition of the daily quoted an official saying that the government will sell nearly half of the sole producer of the oil within 10 years.

"The shares will be sold and the time period is different from that mentioned in the article," said Al Eqtisadiah in the Sunday edition. Saudi seeks mendiversivikasikan economy which has been dependent on oil revenues. The Saudi government has announced budget cuts after deisit in 2015 swell
so USS 97 billion. The initial public offering or IPO Aramco scheduled runs in 2018. Initial sales by 5% stake in Aramco is expected to become the basis for state investment institutions with assets of approximately US $ 2 trillion.

    Aramco CEO Nasser Amin earlier said it will next year begin to publish quarterly financial reports. The goal is to attract potential investors. Al .Eqtisadiah on Saturday reported sales up 49% saharn Aramco aims to participate cut its budget deficit. Proceeds from the sale of these shares will be spent in the country and abroad by the state investment agency.

    The Saudi government this month agreed to cut oil production more than agreed with the members of the Organization of Petroleum Exporting Countries, or OPEC. The Saudi government last week announced a draft budget, which includes trimming subsidies to achieve budget balance by 2020. The government also would freeze major projects, cut ministerial salaries and freeze civil servant's salary. According to analysts, the budget deisit Arabia, which reached 15% of gross domestic product (GDP) is among the highest among emerging market countries.

    Arab News on Thursday (22/12) reported that subsidies for electricity, water and the like will be trimmed again. Meanwhile, Bloomberg News reported that the government consider raising the price of fuel oil (BBM). The Saudi government last year cut fuel subsidies and water; As well as the type of electrical service to cope with a surge in the budget deficit. However, the policy of cuts in subsidies inviting complaints from retailers, as sales fell.

IN INDONESIAN

Koran Saudia Tarik Berita Penjualan 49 % Saham Aramco

    Sebuah Surat kabar keuangan Arab Saudi pada Minggu (25/12) waktu setempat menaiik berita mengenai rencana pemerintah menjual 49% saham perusahaan minyak milik negara Aramco dalam 10 tahun ke depan. Berita tersebut dimuat di edisi Sabtu (24/ 12). “Al Eqtisadiah minta maaf karena informasi yang telanjur terbit mengenai Aramco,” bunyi pernyataan koran, yang sebagaimana sebagian besar media di Saudi, dekat dengan pemerintah. Edisi Sabtu harian tersebut mengutip ucapan seorang pejabat bahwa pemerintah akan menjual hampir separuh produsen tunggal minyak tersebut dalam waktu 10 tahun.

“Saham yang akan dijual dan jangka waktunya berbeda dengan yang disebutkan dalam artikel,” kata Al Eqtisadiah pada edisi Minggu. Saudi berupaya mendiversivikasikan perekonomiannya yang selama ini bergantung dari pendapatan minyak. Pemerintah Saudi sudah mengumumkan pemangkasan anggaran setelah deisit pada 2015 membengkak
jadi USS 97 miliar. Penawaran umum perdana atau IPO saham Aramco di jadwalkan berjalan pada 2018. Penjualan awal sebanyak 5% saham Aramco diperkirakan menjadi basis bagi lembaga investasi negara dengan aset sekitar US$ 2 triliun.

    CEO Aramco Amin Nasser sebelumnya mengatakan pihaknya tahun depan akan mulai mempublikasikan laporan keuangan kuartalan. Tujuannya untuk menarik para calon investor. Al  Eqtisadiah pada Sabtu melaporkan, penjualan hingga 49% saharn Aramco bertujuan untuk ikut memangkas defisit anggaran negara. Dana dari hasil penjualan saham tersebut akan dibelanjakan di dalam negeri maupun luar negeri oleh lembaga investasi negara tersebut.

    Pemerintah Saudi bulan ini sepakat memangkas produksi minyak lebih banyak dari yang disetujui bersama para anggota Organisasi Negara-Negara Pengekspor Minyak atau OPEC. Pemerintah Saudi pekan lalu mengumumkan rancangan anggaran, yang mencakup pemangkasan berbagai subsidi untuk mencapai perimbangan anggaran pada 2020. Pemerintah juga akan membekukan proyek-proyek besar, memangkas gaji menteri, dan membekukan kenaikan gaji pegawai negeri. Menurut kalangan analis, deisit anggaran Saudi yang mencapai 15% dari produk domestik bruto (PDB) termasuk yang tertinggi di antara negara pasar berkembang.

    Arab News pada Kamis (22/12) melaporkan bahwa subsidi listrik, air dan semacamnya akan dipangkas lagi. Sedangkan Bloomberg News melaporkan bahwa pemerintah mempertimbangkan untuk menaikkan harga bahan bakar minyak (BBM). Pemerintah Saudi tahun lalu memangkas subsidi BBM dan air; listrik Serta layanan sejenis untuk mengatasi lonjakan defisit anggaran. Namun, kebijakan pemangkasan subsidi mengundang keluhan dari kalangan peritel, karena penjualan turun.

Investor Daily, Page-3, Tuesday, Dec, 27,2016

Cadangan Migas Bertambah

Rata-rata ICP 39,15 Dollar AS Per Barrel pada 2016

    Sepanjang Januari 21 Desember 2016, pemerintah menyetujui 28 rencana pengembangan lapangan minyak dan gas bumi. Dengan persetujuan itu, cadangan minyak berpotensi bertambah 142,45 juta barrel dan gas bumi bertambah 645 miliar standar kaki kubik. Penambahan cadangan ini menjadi kabar baik di tengah investasi hulu migas yang masih lesu akibat harga minyak dunia yang rendah. Sebanyak 28 rencana pengembangan lapangan yang disetujui itu dioperasikan sejumlah operator.

    Mereka adalah Chevron Pasific Indonesia (13 lapangan), PT Pertamina EP (10 lapangan), Petrochina International Jabung, (1 Lapangan), Pertamina Hulu Energi Nunukan (1 Lapangan), ExxonMobil Cepu. (1 Lapangan), PHE Offshore North West Java (1 Lapangan), dan Sele Raya Belida (1 Lapangan). Potensi tambahan cadangan ini tentu cukup menggembirakan disaat lesunya investasi hulu migas di Indonesia,” kata Kepala Humas Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Taslim Z Yunus.

     Kendati ada penambahan cadangan, rasio pengembalian cadangan (reserve replacement ratio/RRR) migas di Indonesia masih rendah, yakni di bawah 50 persen. Pada 2016, produksi kumulatif minyak mentah 296,86 juta barrel, sedangkan gas bumi 2,37 triliun kaki kubik. 

    Dengan penambahan cadangan minyak 142,45 juta barrel dan gas bumi 645 miliar standar kaki kubik, maka angka RRR minyak di Indonesia 4299 persen dan gas bumi 27,24 persen. Apabila digabungkan, produksi kumulatif migas 2016 sebanyak 719,6 juta barrel setara minyak dan penemuan cadangan migas 257,62 juta barrel setara minyak.

Anggota Komisi VII DPR Satya Widya Yudha

    Jadi, angka pengembalian cadangan migas di Indonesia hanya 35,8 persen,” ujar Taslim. Anggota Komisi VII DPR Satya Widya Yudha, berpendapat, sulit untuk menaikkan angka rasio pengembalian cadangan di Indonesia disebabkan tingkat investasi hulu migas yang masih rendah dan investor yang belum berpengalaman. Dari 147 kontraktor kontrak kerja sama (KKKS) eksplorasi, sebanyak 50 KKKS di antaranya merupakan pemain baru. 

    Di samping itu, ada perusahaan yang mengelola lebih dari 30 wilayah kerja migas sehingga secara teknis dan finansial kurang sehat dan produktif. ”Namun, rasio pengembalian cadangan yang rendah bukan semata-mata faktor eksplorasi yang minim. Akan tetapi, tingkat keberhasilan penemuan cadangan migas yang baru di Indonesia terbilang rendah, yakni hanya sekitar 31 persen,” ujar Satya.

    Satya menambahkan, agar investasi hulu migas di Indonesia kembali bergairah, pengayaan data migas di Indonesia perlu didorong. Selain itu, kontrak migas yang akan berakhir segera diberi kepastian hukum mengenai nasib kelanjutan kontrak tersebut agar ada kesinambungan investasi. Penyederhanaan perizinan juga penting dalam kegiatan hulu migas. Pemberian insentif juga penting jika dikaitkan dengan harga minyak. Dengan model sliding scale, insentif bagi kontraktor diperbesar jika harga minyak rendah.

    Sebaliknya, bagian negara diperbesar apabila harga minyak tinggi,” tambah Satya. Secara keseluruhan, industri hulu migas di Indonesia masih terpengaruh harga minyak dunia yang rendah. Rata-rata harga minyak mentah Indonesia (ICP) pada 2016 sebesar 39,15 dollar AS per barrel. Harga ini lebih rendah dari patokan APBN yang sebesar 40 dollar AS per barrel.  Chevron Corporation menjual konsesi lapangan panas bumi di Gunung Salak dan Darajat, Garut, Jawa Barat, kepada Konsorsium Star Energy.

    Chevron juga menandatangani jual-beli aset geothermal Tiwi dan Mak-Ban di selatan Luzon, Filipina "Aset-aset ini menghasilkan energi yang andal untuk mendukung kebutuhan ekonomi Asia Pasifik yang berkembang,” ujar Executive Vice President, Upstream, Chevron Corporation, Jay Johnson melalui keterangan tertulis dari San Ramon, California, Amerika Serikat, Jumat (23/12). 

    Di Indonesia, menurut Indah Wardhani dari Tim Corporate Communications Unit Bisnis Chevron IndoAsia, anak usaha Chevron mengoperasikan lapangan panas bumi Darajat dan Salak. Di Filipina, anak usaha Chevron memiliki 40 persen saham di Philippine Geothermal Production Company Inc Aset geothermal Chevron di lapangan Salak dan Darajat mampu memproduksi listrik panas bumi 413 MW dan sudah memasok listrik 275 MW.

IN ENGLISH

Oil and Gas Reserves Increase

The average ICP 39.15 US Dollars per Barrel in 2016

    During January to December 21, 2016, the government approved 28 field development plan of oil and gas. With the agreement, the potential oil reserves increased 142.45 million barrels and natural gas increased 645 billion standard cubic feet. The addition of these reserves is good news in the middle of the upstream oil and gas investment is still sluggish due to lower world oil prices. A total of 28 approved field development plan it operated a number of operators.

    They are Chevron Pacific Indonesia (13 courts), PT Pertamina EP (10 courts), Petrochina International Jabung, (1 field), Pertamina Hulu Energi Nunukan (field 1), ExxonMobil Cepu. (1 field), PHE Offshore North West Java (1 field), and Sele Raya Belida (1 field). Additional potential reserves is certainly quite encouraging when the slowing down of upstream oil and gas investment in Indonesia, "said Head of Public Relations Unit Special Upstream Oil and Gas (SKK Migas) Taslim Z Yunus.

    Despite the addition of reserves, the ratio of return on reserves (reserve replacement ratio / RRR) of oil and gas in Indonesia is still low, below 50 percent. In 2016, the cumulative production of 296.86 million barrels of crude oil, while natural gas 2.37 trillion cubic feet. With the addition of 142.45 million barrels of oil reserves and natural gas 645 billion standard cubic feet, then the number of oil RRR in Indonesia 4299 percent and 27.24 percent of natural gas. When combined, the cumulative production of oil and gas in 2016 as many as 719.6 million barrels of oil equivalent and the discovery of oil and gas reserves of 257.62 million barrels of oil equivalent.

    Thus, rates of return on oil and gas reserves in Indonesia is only 35.8 percent, "said Taslim. House Commission VII member Satya Widya Yudha, argues, it is difficult to raise the reserve ratio number of return in Indonesia due to upstream oil and gas investment levels are still low and inexperienced investors. From 147 cooperation contracts (PSC) to discover, as many as 50 KKKS of which is a new player. 

    In addition, there is a company that manages more than 30 oil and gas working areas that are technically and financially less healthy and productive. "However, the lower reserve ratio of return is not merely exploratory factor is minimal. However, the success rate of discovery of new oil and gas reserve in Indonesia is small, with only about 31 percent, "says Satya.

    Satya added that upstream oil and gas investment in Indonesia back alive, enrichment data is oil and gas in Indonesia should be encouraged. In addition, oil and gas contracts that will expire soon be given legal certainty about the fate of the continuation of the contract so that there is continuity of investment. Simplification of licensing is also important in the upstream oil and gas activities. The incentive is also important that this comes with the price of oil. With a sliding scale models, incentives for contractors magnified if oil prices lower.

    In contrast, parts of the state magnified when oil prices are high, "added Satya. Overall, the upstream oil and gas industry in Indonesia is still affected by low world oil prices. The average Indonesian crude price (ICP) in 2016 amounted to 39.15 dollars per barrel. This price is lower than the state budget benchmark of 40 dollars per barrel. Chevron Corporation sold concessions geothermal field on Mount Salak and Darajat, Garut, West Java, to the Consortium for Energy Star.

     Chevron also signed the sale and purchase of assets geothermal Tiwi and Mak-Ban in southern Luzon, Philippines "These assets generate reliable energy to support the economic needs of the Asia Pacific region is growing," said Executive Vice President, Upstream, Chevron Corporation, Jay Johnson through affidavits from San Ramon, California, USA, on Friday (23/12).

     In Indonesia, according to the Beautiful Ward of Corporate Communications Team Business Unit IndoAsia Chevron subsidiary Chevron operates geothermal field Darajat and Salak. In the Philippines, a subsidiary of Chevron has a 40 percent stake in Philippine Geothermal Production Company Inc. Assets Chevron Geothermal Salak and Darajat in the field is capable of producing 413 MW of geothermal power and 275 MW are already supplying electricity.

Kompas, Page-17, Monday, Dec, 26,2016

Migas Masih Perlu Tingkatkan Efisiensi

    Industri migas tahun depan masih bergantung eskalasi global yang menjadi penentu harga minyak dunia. Di luar itu semua, tinggal berharap pada efektivitas insentif investasi maupun perbaikan regulasi di dalam negeri. Menghadapi tahun depan, Kementerian Energi dan Sumber Daya Mineral (ESDM) telah menyusun sejumlah target kerja. Menteri ESDM Ignasius Jonan mengungkapkan, ada enam upaya utama di sektor hulu hingga hilir migas. Upaya pertama adalah meningkatkan kapasitas kilang minyak di dalam negeri.

    Jonan menjelaskan, saat ini kapasitas kilang minyak yang beroperasi hanya sebesar 800 ribu barel per hari (bph). Padahal, kebutuhan bahan bakar minyak dalam negeri sebesar 1,16 juta bph. "Kami akan bikin kilang lebih efisien," imbuhnya. Kedua, meningkatkan pembangunan jaringan gas kota. Langkah itu penting untuk menghemat biaya pembelian tabung elpiji. Dalam APBN 2017, target pembangunan memang menurun bila dibandingkan dengan tahun ini. Hal itu disebabkan adanya pemangkasan anggaran oleh pemerintah.

    Target pembangunan jaringan gas sebanyak 188.915 sambungan rumah tangga (SR). Sedangkan target tahun depan 56.432 sambungan. ”Namun, kami berencana meningkatkan target tersebut hingga 100 ribu sambungan rumah tangga" tambahnya. Ketiga, mengalihkan subsidi elpiji. Pemerintah berharap bisa memangkas subsidi elpiji agar. Kelima, Kementerian ESDM akan meningkatkan alokasi gas domestik séiring naiknya kebutuhan di dalam negeri. Tahun ini kebutuhan gas bumi dalam negeri sudah mencapai 59 persen atau 4.062 bbtud.

    Tahun depan akan ditingkatkan menjadi 62 persen atau 4.917 bbtud. Selain pasokan dari dalam negeri, Jonan mengupayakan pasokan dari luar negeri, salah satunya Iran. Dalam kunjungannya ke Iran beberapa waktu lalu, Negeri Para Mullah itu telah sepakat untuk memasok elpiji Iebih dari 500 ribu metrik ton ke Indonesia. "Harga gas di sana itu murah sekalil' imbuhnya Upaya keenam adalah menetapkan wilayah kerja. Tahun depan penawaran wilayah kerja migas akan semakin banyak.

    Ada sepuluh wilayah kerja yang bakal ditawarkan pada 2017. Terdiri atas delapan wilayah kerja migas konvensional dan dua wilayah kerja migas nonkonvensional. Selain mematok enam target utama untuk tahun depan, Jonan mengingatkan bahwa industri migas dalam negeri akan berfokus pada upaya efisiensi. "Hingga saat ini produksi belum efisien. Maka, kebijakan migas ke depan yang pertama adalah soal efisiensi produksi," katanya. Hal itu didasari belum stabilnya harga migas di tanah air dan belum adanya takaran yang pasti sebagai penentu.

    Industri migas juga dituntut untuk lebih kompetitif agar bisa memiliki daya saing di pasar. Industri migas tahun ini masih menghadapi jatuhnya harga minyak. Dengan kesepakatan OPEC, kartel produsen minyak yang dipimpin Arab Saudi, untuk memangkas produksi, harga tahun depan diharapkan membaik. Negara non-OPEC, dengan Rusia di dalamnya, juga telah sepakat untuk mengurangi produksi. Meski demikian, efisiensi mesti tetap dilakukan oleh industri migas.

    Salah satu upaya efisiensi yang diyakini cukup efektif adalah penggunaan skema gross split. Pemerintah saat ini tengah mematangkan skema gross split yang akan menggantikan skema cost recovery atau penggantian biaya yang ditanggung pemerintah. Jonan yakin bahwa skema baru yang mengatur bagi hasil migas antara negara dan kontraktor tersebut 'akan lebih efisien bagi industri hulu migas. Adapun skema gross split nanti berlaku untuk kontrak baru pada 2017. Kini pemerintah sedang mengatur ketentuan skema tersebut melalui peraturan menteri ESDM.

Bisa Pertahankan Target Lifting

    Optimisme menghadapi 2017 seharusnya dimiliki SKK Migas. Sebab, lifting minyak ternyata mampu melampaui target APBNP 2016. Seperti diketahui, lifting ditargetkan sebesar 820 ribu barel per hari (bopd) untuk minyak dan 6.438 juta kaki kubik (mmscfd) untuk gas. Realisasinya mencapai 822 ribu bopd untuk minyak dan 6.643 bopd untuk gas. Kepala Bagian Humas SKK Migas Taslim Z. Yunus mengatakan, kontribusi dalam pencapaian lifting minyak berasal dari lapangan Banyu Urip, Blok Cepu.

    Sejak Januari 2016, Train B Banyu Urip sudah berproduksi sebanyak 185 ribu bopd. Selain itu, lifting disumbang Blok Rokan, Pertamina ER Mahakam, dan Offshore Northwest Java (ONWJ). Sementara itu, lima kontributor terbesar untuk gas adalah Blok Mahakam, Berau, Pertamina ER Corridor, dan Senoro-Toili. ”Dari awal tahun sampai akhir November KKKS sudah mengerjakan 212 pengeboran sumur pengembangan, 1.055 kegiatan work over, dan 33.925 kegiatan perawatan sumur" terangnya.

    Dari pengeboran sumur eksplorasi yang dilakukan, 20 kegiatan sudah selesai. Hasilnya, di tujuh sumur ditemukan migas (discovery), di tujuh sumur lain tidak ditemukan migas (dry), lima sumur memiliki indikasi adanya hidrokarbon, dan satu sumur masih dievaluasi. Sedangkan investasi dari hulu migas mencapai USD 10,43 miliar dengan pengeluaran terbesar untuk produksi, yakni USD 7,81 miliar. Taslim menjelaskan, industri hulu migas masih terpengaruh rendahnya harga minyak dunia. Rata-rata harga minyak mentah Indonesia sepanjang 2016 berada pada kisaran USD 39,15 per barel. Perkiraan penerimaan negara dari hulu migas sampai akhir tahun sebesar USD 9.294 miliar atau sekitar Rp 125 triliun

IN ENGLISH

Migas Still Need To Improve Efficiency

    Next year oil and gas industry still relies global escalation that determines world oil prices. Above all, stay hope on the effectiveness of investment incentives and a regulatory overhaul in the country. Facing the next year, the Ministry of Energy and Mineral Resources (ESDM) has set employment targets. EMR Minister Ignatius Jonan revealed, there are six major efforts in the upstream to downstream. The first effort is to increase the capacity of oil refineries in the country.

    Jonan explained, the current capacity of the oil refinery which operates only at 800 thousand barrels per day (bpd). In fact, the need for fuel oil in the country of 1.16 million bpd. "We will make the refinery more efficient," he added. Second, promote the development of city gas network. The move was necessary to save the cost of purchase of LPG cylinder. In Budget 2017, the development target was decreased when compared with this year. This is due to budget cuts by the government.

    Target construction of gas networks as much as 188 915 household connections (SR). While the target next year 56 432 connections. "However, we plan to increase this target to 100 thousand household connections" he added. Third, divert subsidized LPG. The Government hopes to cut the subsidy of LPG in order. Fifth, the Ministry of Energy will improve the allocation of domestic gas as rising demand in the country. This year needs natural gas in the country has reached 59 percent, or 4,062 bbtud.

    Next year will be increased to 62 per cent or 4,917 bbtud. In addition to domestic supply, Jonan seek supplies from abroad, one of them Iran. During his visit to Iran some time ago, the State Mullahs it has agreed to supply LPG exceeding 500 thousand metric tons to Indonesia. "The price of gas in there it's sekalil 'he added Efforts to sixth is set working area. Next year deals for oil and gas working areas will be many more.

    There are ten working area that will be offered in 2017. It consists of eight oil and gas working areas of conventional and non-conventional oil and gas two work areas. In addition to a set of six main targets for next year, Jonan warned that the oil and gas industry in the country will focus on efficiency. "Until now, production has not been efficient. Thus, oil policy ahead of the first is a matter of production efficiency," he said. It is based on the instability of oil prices in the country and there is no definitive measure as a determinant.

Oil and gas industry is also expected to be more competitive in order to have a competitive edge in the market. Oil and gas industry is facing a fall in oil prices. With the agreement of OPEC, the cartel of oil producers led by Saudi Arabia, to cut production, prices are expected to improve next year. Non-OPEC countries, with Russia in it, also have agreed to reduce production. However, the efficiency of having to be carried out by the oil and gas industry.

    One effort that is believed to be quite effective efficiency is the use of gross scheme split. The government is currently finalizing a gross scheme split, which will replace the scheme cost recovery or reimbursement of expenses borne by the government. Jonan confident that the new scheme governing oil and gas revenue sharing between the state and the contractor 'would be more efficient for the upstream oil and gas industry. As for the later split gross scheme applies to new contracts in 2017. Now the government is arranging the terms of the scheme by ministerial regulation EMR.

Can Maintain Target Lifting

     Optimism for 2017 should be owned SKK Migas. Therefore, oil lifting was able to exceed the revised budget target of 2016. As is known, targeted lifting of 820 thousand barrels per day (bpd) of oil and 6,438 million cubic feet (MMSCFD) of gas. Realization reached 822 thousand bopd to 6643 bopd of oil and gas. Head of Public Relations SKK Migas Taslim Z. Yunus said, contributes to the achievement of lifting the oil derived from Banyu Urip, Cepu.
     Since January 2016, Train B Banyu Urip is already producing as much as 185 thousand bopd. In addition, lifting contributed Rokan Block, Pertamina ER Mahakam, and the Offshore Northwest Java (ONWJ). Meanwhile, the five largest contributors to gas is the Mahakam block, Berau, Pertamina ER Corridor, and Senoro-Toili. "From the beginning of the year until the end of November PSC has been working on drilling 212 development wells, 1,055 work-over activities, and 33 925 well maintenance activities" he explained.
     Of drilling exploratory wells that do, 20 activities have been completed. The result, in seven wells found oil and gas (discovery), and in seven other wells not found oil and gas (dry), five wells have indicated the presence of hydrocarbons, and the wells are still being evaluated. While the upstream oil and gas investment reached USD 10.43 billion, with the largest expenditures for production, ie USD 7.81 billion. Taslim explained, upstream oil and gas industry is still affected by lower world oil prices. The average price of Indonesian crude oil throughout 2016 in the range of USD 39.15 per barrel. Estimated revenues from oil and gas upstream until the end of the year amounted to USD 9294 billion, or around Rp 125 trillion

Jawa Pos, Page-6, Monday, Dec, 26,2016

Deadlock Over Masela May End

    The long-drawn negotiations over the gas-rich Masela block may come to an end soon as the main sticking point has been resolved following a recent meeting in Japan. Coordinating Maritime Affairs Minister Luhut Pandjaitan told reporters that his two-day trip to Tokyo was fruitful as the two governments had apparently reached an agreement on the duration of the Masela block’s contract extension after it expires in 2028. Japan’s biggest energy developer Inpex Corp., which holds a 65 percent stake in the block, previously proposed a 10-year contract extension to make up for lost time resulting from prolonged negotiations and repeated plan of development (POD) revisions.

    Although Luhut declined to disclose the number of years the two governments had agreed upon, he said Indonesia had rejected the proposed time frame. “In relation to Masela, although they asked for 10 years, we felt that seven years was much more realistic,” he said. Inpex and the world’s top liquefied natural gas (LNG) trader Royal Dutch Shell, which holds the remaining 35 percent stake in the block, were previously put in the spotlight after President Joko “Jokowi” Widodo decided in March that the project had to be developed as an onshore scheme, completely contrary to the initial offshore proposal, as it was believed this would create more benefits for both the country’s economy.

     As a result, the companies were required to revise their POD once again before the end of this year. Inpex and Shell submitted the original POD for an offshore scheme in 2010, but the discovery of more extensive resources led the contractors to submit a modified one last year, adjusting the capacity of the floating LNG plant to 7.5 million tons per year, up from 2.5 million tons. With the current POD, the gas field was expected to start production by 2024. It is now forecast that the gas field will only begin operations in 2026, just two years shy of Inpex and Shell’s contract expiry The government also believes that the work on the Masela block, which is set to become Indonesia’s largest deep water project, will cost less than the previously estimated US$ 22 billion.

    Inpex itself has requested a cost recovery worth $1.2 billion, which will be strongly considered by the government “following an audit”, according to Luhut. Furthermore, Luhut said the Japanese government had agreed that the gas produced from the Masela block would be distributed to local petrochemical and fertilizer industries. Located in Maluku Island in the eastern part of the archipelago, the gas-rich Masela block is estimated to be able to produce 1.2 mmscfd and 24,000 barrels of condensate per day for 24 years.

    Inpex senior communications and relations manager Usman Slamet said the company was still in talks with the government over the issue to allow the development of the gas block to begin as soon as possible, adding that it believed the government would do its best for this project. Institute for Essential Services Reform (IESR) executive director Fabby Tumiwa said the 2026 operational start date was possible only if a POD and the final investment decision (FID) could be approved by the end of the year and by 2020 respectively. However, if the POD is postponed until 2017, and the FID post-poned to 2021 or 2022 then the operational start date could be two years after 2026,” he told the Post, adding that the renegotiation of the POD was highly dependent on the contract extension and the fiscal incentives being offered by the government.

Jakarta Post, Page-13, Saturday, Dec, 24, 2016

Lifting Minyak 2017 Naik

    Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) akan menaikkan target lifting minyak 2017 menjadi 825.000 barel oil per day (bopd). Untuk mencapai target ini, SKK Migas meminta Pertamina EP mengoptimalkan produksi mereka. Taslim Z.Yunus, Kepala Humas SKK Migas berharap, Pertamina EP mampu memenuhi lifting migas dengan cara meningkatkan produksi lewat teknik electrical submersible pump (ESP) di beberapa lapangan migasnya.

    Selain lapangan migas yang digarap Pertamina ER harapan peningkatan produksi berasal dari blok besar lain seperti blok yang dikelola Chevron. Dengan begitu, target lifting minyak 2017 bisa tercapai. Apalagi bila kontraktor mampu berproduksi lebih tinggi dari rencana kerja Work Program and Budget (WP&B). Dulu Total bisa lebih tinggi dari WP&B, Chevron juga begitu. Kami harap tahun depan produksinya lebih tinggi dari tahun ini," jelas Taslim. Tidak seluruh lapangan mengalami kenaikan produksi, salah satunya lapangan migas Banyu Urip milik ExxonMobil di Blok Cepu yang target produksinya sama dengan tahun ini sebesar 200.000 bopd. Erwin Maryoto, Vice President Public and Goverment  Affairs ExxonMobil Indonesia bilang, dalam WP&B tahun depan hanya disepakati produksi lapangan Banyu Urip sebesar 200,000 bopd.

IN ENGLISH

2017 Oil Lifting Up

    Special Unit of Upstream Oil and Gas (SKK Migas) will increase oil lifting target of 2017 to 825,000 barrels of oil per day (bopd). To achieve this target, SKK Migas asks Pertamina EP optimize their production. Taslim Z.Yunus, Head of Public Relations expect SKK Migas, Pertamina EP is able to meet the lifting of oil and gas by increasing production through the technique of electrical submersible pump (ESP) in some of its oil and gas field.

    In addition to oil and gas fields were tilled Pertamina ER expectancy increased production comes from large blocks such as blocks being managed by Chevron. By doing so, the oil lifting target in 2017 can be achieved. Moreover, if the contractor is able to produce a higher work plan Work Program and Budget (WP & B). It used to be higher than the total of the WP & B, Chevron, too. We hope next year production is higher than this year, "said Taslim. Not all courts increased production, one oil and gas field Banyu Urip ExxonMobil in the Cepu Block production targets together with the year of 200,000 bopd. Erwin Maryoto, Vice President Public ExxonMobil Indonesia and Government Affairs said, the WP & B next year just agreed Banyu Urip field production of 200,000 bopd.

Kontan, Page-14, Saturday, Dec, 24, 2016

Produksi Minyak Membaik

Harga Rendah, Eksplorasi untuk Temukan Cadangan Sangat Minim

    Produksi minyak siap jual atau lifting pada 2016 mencapai 821.800 barrel per hari, membaik dibandingkan dengan tahun-tahun sebelumnya yang tidak mencapai target. Target yang ditetapkan dalam Anggaran Pendapatan dan Belanja Negara 2016 sebesar 820.000 barrel per hari. Namun, tingkat pengembalian cadangan minyak di Indonesia masih di bawah 50 persen. Dalam pemaparan kinerja hulu minyak dan gas bumi 2016 oleh Kepala Humas Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Taslim Z Yunus, sejak 2007, produksi minyak siap jual selalu di bawah target yang ditetapkan dalam APBN.

Baru kali ini, produksi siap jual bisa lebih besar dari target ditetapkan dalam APBN. Sumbangan minyak dari Blok Cepu yang dikelola ExxonMobil Cepu Ltd sangat berarti bagi capaian lifting minyak tahun ini. Kontribusi penting minyak siap jual datang dari Lapangan Banyu Urip, Blok Cepu, yang tahun ini sumbangannya rata-rata 185.000 barrel per hari. Lainnya datang dari Blok Rokan oleh Chevron, Blok Mahakam yang dikelola Total, dan Blok Offshore Northwest Java oleh Pertamina Hulu Energi,” ujar Taslim.

    Tahun ini ada penemuan cadangan migas baru di Lapangan Sidayu, Blok Pangkah, yang dioperasikan Saka Indonesia Pangkah Ltd. Lapangan tersebut memiliki cadangan migas 300 juta barrel setara minyak dan merupakan penemuan besar setelah Lapangan Banyu Urip, Blok Cepu. Lapangan Sidayu terletak di lepas pantai Laut Jawa, tepatnya di utara Kabupaten Gresik, Jawa Timur. Bila pengajuan rencana pengembangan lapangan tahun depan, paling cepat lapangan tersebut bisa dikuras minyaknya pada 2019,” ujar Taslim. 

    Dari sisi tingkat pengembalian cadangan, kondisi di Indonesia belum memuaskan karena secara rata-rata hanya 35,8 persen. Tingkat pengembalian cadangan sebesar 35,8 persen, artinya dari setiap minyak dan gas yang dikuras di Indonesia, cadangan baru yang ditemukan hanya 35,8 persen. Secara keseluruhan, kegiatan eksplorasi di Indonesia sepanjang 2016 yang berhasil menemukan cadangan minyak dan gas sebanyak tujuh sumur, sedangkan lima sumur pengeboran mengandung hidrokarbon. Adapun tujuh sumur pengeboran gagal menemukan cadangan.

    Mengenai kondisi sektor hulu migas di Indonesia, menurut Direktur Eksekutif ReforMiner Institute Komaidi Notonegoro, saat ini belum begitu menggembirakan akibat faktor harga minyak yang rendah. SKK Migas mencatat, rata-rata harga minyak sepanjang 2016 adalah 39,15 dollar AS per barrel. Diperkirakan kondisi pada 2017 tidak akan jauh berbeda dengan kondisi di sepanjang 2016. Komaidi menambahkan, perusahaan tetap lebih banyak membelanjakan modalnya untuk kegiatan produksi daripada eksplorasi yang sangat berisiko. Apalagi, ongkos eksplorasi yang gagal sepenuhnya ditanggung perusahaan.

    Sementara kegiatan perawatan sumur dan kerja ulang sumur masih ditanggung negara dalam perhitungan cost recovery. ”Tiadanya penemuan baru, saya kira wajar di tengah harga minyak yang rendah. Porsi investasi untuk eksplorasi kurang dari 10 persen, sedangkan sisanya dipakai untuk produksi,” kata Komaidi.

IN ENGLISH

Improved Oil Production

Low price, Exploration for Discover Reserves Very Skimpy

    Oil production ready for sale or lifting in 2016 reached 821.8 thousand barrels per day, improved compared with previous years which did not reach the target. Targets set in the State Budget in 2016 amounted to 820,000 barrels per day. However, the rate of return of oil reserves in Indonesia is still below 50 percent. In the presentation of the performance of the upstream oil and gas in 2016 by the Head of Public Relations Unit Special Upstream Oil and Gas (SKK Migas) Taslim Z Yunus, since 2007, oil production is ready to sell always below the target set in the budget.

    Only this time, the production of ready to sell could be greater than the target set in the budget. Donations oil from the Cepu block managed by ExxonMobil Cepu Ltd is very meaningful for oil lifting this year's achievements. An important contribution of oil ready for sale coming from Banyu Urip, Cepu, which this year is an average contribution of 185,000 barrels per day. Others came from Rokan Block by Chevron, Total managed on the block, and the Offshore Northwest Java by Pertamina Hulu Energi, "says Taslim.

    This year there is the discovery of new oil and gas reserves in the Field Sidayu, Pangkah block, which is operated Saka Indonesia Pangkah Ltd. The field has gas reserves of 300 million barrels of oil equivalent and is a great invention after the Banyu Urip, Cepu. Sidayu field located off the coast of Java Sea, precisely in the north Gresik, East Java. If the submission of the field development plan next year, the fastest of the field can be drained of oil in 2019, "said Taslim.

    In terms of the return on reserves, the conditions in Indonesia have not been satisfactory because on average only 35.8 percent. The return on reserves amounted to 35.8 per cent, meaning that of every oil and gas are depleted in Indonesia, new reserves are found only 35.8 percent. Overall, the exploration activities in Indonesia throughout 2016 managed to find oil and gas reserves as much as seven wells while drilling five wells containing hydrocarbons. The drilling of seven wells failed to find a backup.

    On the condition of upstream oil and gas sector in Indonesia, according to Executive Director ReforMiner Institute Komaidi Notonegoro, currently not so encouraging due to the low oil price factor. SKK Migas noted, the average oil price throughout 2016 was 39.15 dollars per barrel. It is estimated that in 2017 conditions will not be much different from the conditions in the whole 2016. Komaidi added, the company still spend more capital for production rather than exploration is very risky. Moreover, the cost of exploration that failed entirely borne by the company.

    While maintenance activities wells and rework wells are still borne by the state in the calculation of cost recovery. "The lack of new discoveries, I think it's perfectly amid low oil prices. The investment for the exploration of less than 10 percent, while the rest is used for production, "said Komaidi.

Kompas, Page-17, Saturday, Dec, 24, 2016

Lifting Migas Lampaui Target APBNP

Temukan Tujuh Ladang Baru
    Meski harga minyak mentah dunia saat ini rendah, kontraktor kontrak kerja sama (KKKS) tidak mengendurkan produksi minyak dan gas (migas). Buktinya, SKK Migas mencatat, llfting minyak bumi hingga November lalu mencapai 822 ribu barel per hari (BOPD) dan gas 5.643 juta kaki kubik per hari (mmscfd). Artjnya, minyak yang diserahkan KKKS ke titik pembagian (custody transprpoint) tersebut melampaui target yang ditetapkan dalam APBN Perubahan 2016 sebesar 820 ribu BOPD minyak dan 6.438 mmscfd gas.
   
Kepala Bagian Humas SKK Migas Taslim Z. Yunus mengungkapkan, kenaikan kontribusi signifikan diberikan Lapangan Banyu Urip di Blok Cepu yang dikerjakan Exxon. Train B pada proyek Banyu Urip mulai berproduksi pada kapasitas penuh 185 ribu BOPD sejak Januari 2016]. Produksi migas tersebut berasal dari 67 wilayah kerja migas yang berproduksi. Sebagian besar lapangan migas di wilayah-wilayah kerja itu dikategorikan sebagai lapangan tua (mature field) dengan produksi yang terus menurun secara alamiah.

    Selain pengurangan laju penurunan produksi, KKKS melakukan eksplorasi atau pengembangan sumber cadangan baru. Pada Januari-November KKKS melakukan 10 survei seismik, 11 survei non-seismik, 36 pengeboran sumur eksplorasi, dan 3 re-entry sumur eksplorasi. Di antara pengeboran sumur eksplorasi, 20 kegiatan selesai dilakukan. Hasilnya, 7 sumur ditemukan migas (discovery), 7 sumur tidak ditemukan (dry), 5 sumur memiliki indikasi adanya hidrokarbon, dan 1 sumur dalam proses evaluasi.

     Sumur-sumur yang menghasilkan penemuan adalah Bambu Besar (BBS)-4 (Pertamina EP), Tiung-3 (PetroChina International Jabung Ltd), Meliwis-1 (Santos (Madura Offshore) Pty Ltd), Lumbian-2 (Seleraya Merangin 2), AAL-4X (Santos Northwest Natuna BV), ABG-3 (Pertamina EP), dan Sidayu-4 (Saka Indonesia Pangkah Ltd).

    Tahun ini SKK Migas juga menyetujui 28 rencana pengembangan lapangan. Baik dalam bentuk plan of development maupun plan of further the development (POFD). Pengembangan lapangan baru itu diharapkan menambah cadangan minyak 142,45 juta barel dan cadangan gas 0.645 TSCE. Pengembangan lapangan tersebut akan membutuhkan investasi USD 2,94 miliar dan diharapkan dapat menghasilkan penerimaan negara USD 6,85 miliar.

IN ENGLISH

Lifting Gas Exceeds Target APBNP

Discover Seven New Field

    Although crude oil prices are currently low, cooperation contracts (PSC) did not loosen the production of oil and gas (oil). The proof, SKK Migas noted, llfting petroleum until November, was 822 thousand barrels per day (BOPD) and 5,643 million cubic feet of gas per day (MMSCFD). Artjnya, submitted KKKS oil to the point of sharing (custody transprpoint) exceeded the target set in the revised state budget in 2016 amounted to 820 thousand BOPD of oil and 6,438 MMSCFD of gas.

    Head of Public Relations SKK Migas Taslim Z. Yunus revealed a significant increase in the contribution given Banyu Urip field in the Cepu Block Exxon done. Train B at the Banyu Urip project began producing at full capacity of 185 thousand BOPD since January 2016]. Oil and gas production comes from 67 working areas of oil and gas production. Most of the oil fields in areas of work that is categorized as an old field (mature fields) with production continues to decline naturally.

    In addition to a reduction in the rate of production decline, PSC exploration or development of new sources of reserves. In January-November PSC conduct seismic surveys 10, 11 non-seismic survey, drilling 36 exploration wells and three exploration wells re-entry. Among the drilling of exploration wells, 20 events completed. As a result, seven wells found oil and gas (discovery), 7 wells are not found (dry), 5 wells have indicated the presence of hydrocarbons, and one well in the evaluation process.

    Wells resulted in discoveries is the Big Bamboo (BBS) -4 (Pertamina EP), Tiung-3 (PetroChina International Jabung Ltd.), Meliwis-1 (Santos (Madura Offshore) Pty Ltd), Lumbian-2 (Seleraya Merangin 2) , AAL-4X (Santos Northwest Natuna BV), ABG-3 (Pertamina EP), and Sidayu-4 (Saka Indonesia Pangkah Ltd).

    This year 28 SKK Migas also approved field development plan. Either in the form of a development plan or the plan of further development (POFD). Development of new fields that are expected to add to 142.45 million barrels of oil reserves and gas reserves TSCE 0645. The field development will require an investment of USD 2.94 billion and is expected to generate revenues of USD 6.85 billion.

Jawa Pos, Page-6, Saturday, Dec,24, 2016

2017, Investment Target of US$ 13 Billion

Investment in the upstream oil and gas sector nationally is targeted to reach US$13 billion in 2017 or a 7% increase from the prognosis by the end of 2016 of US$ 12.015 billion.

    Head of Public Relations, Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Yunus explained that his party is targeting investment entering Indonesia in the upstream oil and gas sector to reach US$13 billion. 

Blogger Agus Purnomo in SKK Migas

    According to Taslim, the biggest investment will come from production activities which are targeted to contribute 75% to the total investment. The presentation is the same as the current one or this year's investment. The first production, then development, administration, and exploration," he said.

    The development activity sector will contribute 10% of the investment target, administrative activities will account for 8% and finally, exploration will account for 7%. Taslim explained that in 2017, his party and the cooperation contract contractor (KKKS) had agreed on several work programs in the exploitation work area, namely the drilling of 223 new development wells, lower than the 245 KKKS proposed, and the drilling of 25 exploitation wells, lower than the KKKS proposal of 35 wells. For work over and well maintenance activities, there are 860 wells and 57,512 wells, respectively.

    As for the 3D seismic survey activities, it was agreed that 2,795 km2 next year, this figure is higher than the PSC's proposal of 1,747 km2. Taslim said that until November 2016 the realization of investment in the upstream oil and gas sector was still at US$ 10.43 billion. This figure was supported by production activities of US$ 7.814 billion, well development activities of US$ 1.043 billion, administrative activities of US$ 839 million, exploration activities. worth US$732 million. 

    The low investment realization was due to the number of activities being carried out which were not as planned. In detail, the realization of exploration well drilling was recorded at 43 units from the target of 67 'units'. By the end of 2016 the investment could reach US$12,015 billion,” he said.

    SKK Migas noted that oil and gas lifting production has exceeded the target set in the Revised State Budget, Revenue and Expenditure (APBN-P) 2016. In APBN-P, lifting is targeted at 820,000 barrels per day (bopd). for oil and 6,438 MMscfd for gas. The realization of lifting until last month reached 822,000 bopd for oil and 6,643 MMscfd for gas.

    Taslim said that one of the significant contributors to the achievement of oil lifting was the Banyu Urip field, Cepu Block. Train B at the Banyu Urip Project has started production at full capacity of 185,000 bopd since January 2016," said Taslim.

    Other largest oil lifting productions are the Rokan Block in Riau, Pertamina EP, the Mahakam Block, and the Offshore Nonwest Java (ONWJ) block. Meanwhile, the five biggest contributors to gas are the Mahakam Block, Berau, Pertamina EP, Corridor, and Senoro-Tolili.

     The production comes from 67 oil and gas working areas that are already in production. Most of the oil and gas fields in these working areas have been categorized as mature fields with production that continues to decline naturally. The PSC working in this work area carries out three main programs to suppress the rate of natural production decline, namely drilling development wells, Work Over, and Well Service. These activities play a role in reducing the rate of decline in natural products and the old fields.

    Meanwhile, to really add significant reserves, the only way is to explore and develop new reserves. For exploration activities, from January to November 2016, the contractor conducted 10 seismic surveys, 11 non-seismic surveys, 36 exploration wells drilling, and 3 exploration well re-entries. From the exploration well drilling carried out, 20 activities have been completed with the results that 7 oil and gas wells were found (discovery), 7 wells were not found (dry), 5 wells indicated the presence of hydrocarbons, and 1 well is still in the evaluation process.

    The wells that resulted in the discovery were Blok Bambu Besar (BBS)-4 (Pertamina EP), Tiung-3 (PetroChina International Jabung Ltd.), Meliwis-1 (Santos (Madura Offshore) Pty Ltd), Lumbian-2 (Seleraya Merangin). 2), AAL-4X (Santos Northwest Natuna BV), ABG-3 (Pertamina EP), and Sidayu 4 (Saka Indonesia Pangkah Ltd).

Bisnis Indonesia, Page-9, Saturday, Dec 24, 2016

Govt Finalizing Incentives to Boost Oil, Gas Exploration

    The government is rushing to complete a regulation that will allow it to grant companies additional tax and non-tax incentives aimed at boosting oil and gas exploration. The Energy and Mineral Resources Ministry’s oil and gas director general, IGN Wiratmaja Puja, said the draft revision of Government Regulation No. 79/2010 on cost recovery and taxation in the upstream oil and gas industry would be submitted at the end ofthe year and was expected to be issued next year.

    The revised version will include both .tax and non-tax incentives, in a bid to revive the sluggish upstream sector. It will apply to both new contracts and existing ones, as long as the incentives do not violate any terms agreed upon in the contract, according to Wiratmaja. The terms and conditions in existing contracts will be respected and remain unchanged,” he said. The planned incentives will exempt oil and gas companies from paying import value added tax (VAT), import duties, domestic VAT and property tax and waive other taxes during the exploitation phase.

    Meanwhile, the non-tax incentives are set to include clearer rules on investment credit and the domestic market obligation (DMO) holiday. The DMO is a requirement imposed on firms to allocate a certain amount of oil or gas output to meet domestic demand. The governments effort to increase exploration work appears to have a valid basis. By the end of November, only US$750 million of the industry’s $10.4 billion in total investment this year was put into exploration. Only 20 exploration wells have been drilled this year, with 11 more still ongoing.

    Companies’ reluctance to engage in exploration stems from the steep drop in global crude prices in the past two years. According to Wood Mackenzie’s Asia Pacific research, global investment in exploration and production activities, in line with the price trend, will climb to $ 450 billion in 2017, up 3 percent from this year. In spite of this bright outlook, the energy consultancy predicts that Indonesia will not benefit from higher crude prices as well as bigger global investment due to the country’s notorious reputation for rampant red tape.

    Confirming these estimates, Up-stream Oil and Gas Regulatory Special Task Force (SKK Migas) chief Amien Sunaryadi said the “approved number of exploration wells to be drilled next year will be less- than those proposed, because of the uncertain global outlook.” SKKMigas data show that only 25 exploration wells will be drilled next year, compared to the 35 initially proposed, while the country’s oil reserves will decrease by around 0.65 billion stock tank barrels a year due to aging existing wells.

     Revising the government regulation is not the only means by which the government hopes to whet investors’ appetite. The Energy and Mineral Resources Ministry is working on a ministerial regulation that would allow new oil and gas contracts to use a gross-split sliding scale instead of the current cost recovery system.

     Unlike cost recovery, a gross-split scheme will not involve reimbursement from the government. The profit scheme will depend on several factors, including the type of technology used, the volume of production and global oil prices. However, Energyand Mineral Resources Minister Ignasius Jonan vehemently denied that the revision would reinstate the much-sought- after “assume and discharge” system, which had been replaced in 2010 by cost recovery - the reimbursement scheme for oil and gas production and exploration.

     Responding with doubt, the Indonesian Chamber of Commerce and Industry’s (Kadin) deputy chairman for the oil and gas sector, Bobby Gafur Umar, said many oil and gas players were concerned about how the government would implement incentives in the system. “Minister Jonan is very clear in that. They [oil and gas contractors] have to be given incentives to increase their split. This is very interesting. However, we have to see the practicality, and this means that the plan of development has to be designed in such detail that we even know how much local content is used. However, even this is difficult,” he said.

Jakarta Post, Page-13, Friday, Dec,23, 2016

Kapasitas Kilang Cilacap Ditingkatkan

Saudi Aramco juga mengincar proyek kilang Dumai dan Balongan.

    PT Pertamina dan perusahaan minyak dan gas bumi  Arab Saudi, Saudi Arabian Oil Company (Saudi Aramco) membentuk perusahaan gabungan (joint venture) untuk mengembangkan proyek pembangunan peningkatan kapasitas kilang existing atau rejinery development master plan (RDMP) di Cilacap, Jawa Tengah. Direktur Utama Pertamina Dwi Soetjipto mengatakan, pembentukan joint venture menandai adanya kerja sama lebih pasti antara Pertamina dan Saudi Aramco terkait pembangunan kilang. Ini juga tindak lanjut dari rencana kedua perusahaan sejak Desember 2014

    Setelah membentuk perusahaan gabungan, langkah berikutnya adalah mempersiapkan desain dasar kilang (Basic Enginering Desain/BED), yang ditargetkan selesai Februari tahun depan. Sedangkan, untuk studi kelayakan pembiayaan bank sudah diselesaikan. Nilai Investasi RDMP RU IV Cilacap sebesar lima miliar dolar AS atau sekitar Rp 65 triliun. Proyek ini ditargetkan selesai pada 2021 mendatang, lebih cepat dari rencana awal 2022. Kapasitas kilang Cilacap ditargetkan capai 400 ribu barel per hari (bph).

    Perjanjian kerja sama tersebut mencakup kepemilikan saham, pengembangan, dan pengoperasian kilang Cilacap di Jawa Tengah. Dwi menyebutkan, Pertamina memiliki 55 persen saham di RDMP Cilacap sementara Saudi Aramco mendapatkan 45 persen. Selain untuk memenuhi kebutuhan energi dalam negeri, kerja sama Pertamina dan Saudi Aramco juga meningkatkan kompetensi kilang minyak di Indonesia untuk berkontribusi dalam peningkatan ketahanan energi.

     Saudi Aramco mengapresiasi kerja sama dengan Pertamina. President and Chief Executive Officer (CEO) Saudi Aramco Amin Nasser rnenilai kerja sama ini memiliki prospek yang cerah dalam bisnis mereka. Ini mengingat Indonesia pasar yang bagus bagi para investor. “Ekonomi Indonesia terbesar di ASEAN, pasar yang baik untuk investasi. Ini langkah maju untuk kerja sama yg sudah terjalin,” kata Amin.

    Saudi Aramco juga mengincar proyek milik Pertamina lainnya. Setelah Cilacap, Saudi Aramco ingin bekerja sama dalam pengembangan Kilang Dumai di Riau, dan Kilang Balongan di Indramayu, Jawa Barat. Amin berharap banyak nilai yang didapatkan dari kilang Balongan dan Dumai. Amin mengatakan, pihaknya tertarik untuk terus berinvestasi di Indonesia. Saat ini, kapasitas
kilang Saudi Aramco mencapai 5,8 juta bph. Saudi Aramco berencana menambah kapasitas hingga 10 juta bph.

    Sebelumnya, Pertamina dan PT Wijaya Karya (WIKA) menandatangani kontrak site development dan new jetty construction untuk proyek RDMP Refinery Unit (RU) V Balikpapan pada Kamis (1/12). Penandatanganan dilakukan oleh Direktur Mega-proyek Pengolahan dan Petrokimia Pertamina Rachmad Hardadi dan Direktur Operasi II Wika Bambang Pramujo. WIKA terpilih sebagai pelaksana proyek setelah melalui proses tender Pertamina. Proyek ini untuk mendukung persiapan pembangunan Kilang RDMP RU V Balikpapan yang ditargetkan tuntas dalam 12 bulan terhitung sejak ditandatanganinya kontrak.

IN ENGLISH

The Cilacap refinery capacity Enhanced

Saudi Aramco is also eyeing Dumai and Balongan refinery project.

    PT Pertamina and oil and gas companies of Saudi Arabia, Saudi Arabian Oil Company (Saudi Aramco) to form joint ventures (JV) to develop the project development capacity of existing refineries or rejinery development master plan (RDMP) in Cilacap, Central Java. Pertamina President Director Dwi Soetjipto said the establishment of the joint venture marks a more definite cooperation between Pertamina and Saudi Aramco development related refineries. It is also a follow-up of the second plan the company since December 2014

    After forming the combined company, the next step is to prepare the basic design of the refinery (Basic Enginering Design / BED), which is targeted for completion in February next year. Meanwhile, bank financing for a feasibility study has been completed. Investment Value RDMP RU IV Cilacap five billion dollars or about Rp 65 trillion. The project is targeted for completion in the upcoming 2021, faster than the initial plan of 2022. The Cilacap refinery capacity is targeted to reach 400 thousand barrels per day (bpd).

    The cooperation agreement includes the ownership, development, and operation of the refinery in Cilacap in Central Java. Dwi said, Pertamina has a 55 percent stake in Cilacap RDMP while Saudi Aramco get 45 percent. In addition to meeting domestic energy needs, cooperation Pertamina and Saudi Aramco also improve the competence of an oil refinery in Indonesia to contribute to the improvement of energy security.

    Saudi Aramco appreciates cooperation with Pertamina. President and Chief Executive Officer (CEO) Saudi Aramco Amin Nasser assess this cooperation has a promising future in their business. Indonesia is considering the good market for investors. "The Indonesian economy in ASEAN, a good market for investment. This is a step forward for the cooperation that already exists, "said Amin.

    Saudi Aramco is also eyeing other projects owned by Pertamina. After Cilacap, Saudi Aramco want to cooperate in the development of Dumai refinery in Riau, and Balongan refinery in Indramayu, West Java. Amin expect much value obtained from the Balongan refinery and Dumai. Amin said it is keen to continue to invest in Indonesia. Currently, Saudi Aramco refinery's capacity to 5.8 million bpd. Saudi Aramco plans to increase capacity to 10 million bpd.

    Previously, Pertamina and PT Wijaya Karya (WIKA) signed a new contract jetty site development and construction for the project RDMP Refinery Unit (RU) V Balikpapan on Thursday (1/12). The signing was done by the Director of Mega-projects Processing and Petrochemical Rachmad Hardadi Pertamina and Director of Operations II Wika Bambang Pramujo. WIKA was selected as project manager after going through the bidding process Pertamina. The project is to support the preparation of the construction of refineries RDMP RU V Balikpapan is expected to be completed within 12 months from the signing of the contract.

Republika, Page-13- Friday, Dec, 23, 2016