Upstream situation is increasingly critical

In addition to production which continues to fall, upstream oil and gas investment has also not been able to answer the production problem. Investors need contract certainty for investment stability.

The situation in the upstream oil and gas sector in Indonesia is considered increasingly critical. Because production is ready to sell or [lifting both types of primary energy sources continues to fall from year to year. Therefore, improvements need to be made as soon as possible to increase production and attract maximum investment in the country.

Based on data from the Ministry of Energy and Mineral Resources, [oil lifting in 2019 recorded 746,000 barrels per day or below the target of 775,000 barrels per day. The realization of lifting natural gas is only 1,060 barrels of oil equivalent per day and still below the target of 1,250 barrels of oil equivalent per day. The decline in oil lifting has occurred since 2016, while natural gas lifting has continued to decline since 2014.

According to Pri Agung Rakhmanto, a lecturer at the Faculty of Earth and Energy Technology at Trisakti University, Jakarta, the upstream oil and gas situation in Indonesia can be said to be in crisis. In addition to declining production, upstream oil and gas investment in Indonesia is also in a crisis situation. If the situation is not improved enough, the condition of Indonesia's upstream oil and gas will sink even deeper.

"Crisis and critical. That is the condition of upstream oil and gas in Indonesia. Called a crisis because existing investments have not been able to answer the problem of production which continues to decline. It is called critical if this situation continues, "said Pri Agung.

In terms of upstream oil and gas investment, during 2019 it collected 12.5 billion US dollars or lower than the target set, which was 13.4 billion US dollars. In 2018 the realization of upstream oil and gas investment will reach 12.6 billion US dollars. In the last five years, the highest investment was recorded in 2015, amounting to 17.9 billion US dollars.

"Indonesia has not been able to attract enough investment from world-class upstream oil and gas actors, both for new oil and gas reserve discovery projects and development projects to increase production. Upstream oil and gas investment has been around 60-70 percent, only for existing routine operational costs, "Said Pri Agung.

Not a Commodity

Pri Agung added, improvements in upstream oil and gas investment should start from the perspective of the state managing its natural resources. According to him, oil and gas resources should be used as capital for development in the country, not as an export commodity to collect foreign exchange In addition, policy improvements in taxation, fiscal and oil and gas revenue sharing are also urgent. Indonesia's oil and gas production has not been able to meet domestic needs.

The consumption of national oil will reach 1.5 million barrels per day, while domestic oil production is less than 800,000 barrels per day. LPG consumption is around 7 million tons per year, half of which must be imported. This condition causes Indonesia to often experience a deficit in its oil and gas trade balance.

Last weekend, in Jakarta, Energy and Mineral Resources Minister Arifin Tasrif said the government would no longer require gross profit-sharing schemes in the auction of new oil and gas working areas.

The contractor is given freedom of choice, namely a gross split and cost recovery that can be recovered (cost recovery). Previously, for new oil and gas working areas, the revenue sharing that the government imposed on contractors was gross split.

"There are already two schemes (gross split or cost recovery), but the cost recovery scheme will be fixed first," Arifin said when asked for a profit-sharing scheme at the upcoming oil and gas working area auction.

Previously, at the annual general meeting of the Indonesian Petroleum Association (IPA), IPA Vice President Ronald Gunawan alluded that investors needed contract certainty for investment stability. Because upstream oil and gas investment is a capital-intensive and high-risk investment. The stability of the contract is believed to increase the attractiveness of Indonesia's upstream oil and gas investment in the eyes of investors.

"To simplify the bureaucracy, in the last two or three years there have been positive signals. We hope that there will be continuous improvements in the future, "said Ronald.

Kompas, Page-13, Tuesday, Jan 14, 2020

2020, Gas Marketing will be More Aggressive

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said it would be more proactive in marketing national gas, both to the domestic and foreign markets.

Referring to the data of SKK Migas, lifting or gas distribution last year was recorded at 5,934 million cubic feet per day / mmscfd, below the target set in the 7,000 mmscd state budget. One of the causes of low gas lifting is the reduction in gas production following the cancellation of liquid / LNG natural gas supply by the buyer.

In 2020, Deputy Finance and Monetization of SKK Migas Arief S Handoko, his party does not want the gas production reduction or curtailment to happen again. For this reason, he will be more proactive in marketing domestic LNG production.

"Try to avoid curtail and try to sell as soon as possible," he said.

However, it will not necessarily sell LNG production to the spot market. He said he would still aim for a mid-term LNG purchase contract to obtain a very good price. This is to ensure that state revenues from LNG sales remain high. Therefore, the export market is not the only target of SKK Migas.

"If it cannot be sold abroad, it is offered to domestic partners, such as PT PGN Tbk and PT PLN (Persero)," explained Arief.

So far, all planned LNG production volumes have been contracted, aka no remaining cargo (uncommitted cargo). However, the projected amount of LNG production still has the potential to rise so that the possibility of uncommitted cargo in 2020 is still present.

This follows the plan of PT Pertamina (Persero) to boost gas production in the Mahakam Block. This oil and gas block is a supplier of the Bontang LNG Plant. Because when making the annual LNG delivery plan (annual delivery program), it does not accommodate the increased production from the Mahakam Block.

the Mahakam Block

"What is uncommitted is that there are about five cargoes because Mahakam has more production and has not entered the plan, because they [Pertamina] are also not confident," explained Arief.

In 2020, the company targets LNG production to reach 211.9 cargo standards, namely from Tangguh Refinery 122.3 cargo standards and Bontang 89.6 cargo standards. This production target is lower than last year which reached 252 cargo standards, of which Tangguh Refinery 120 cargo standards and 132 Bontang cargo standards.

Unfortunately, due to the fall in LNG prices on the spot market that pushed buyers to cancel cargo orders, the purchase of LNG in 2019 did not reach the target. As of December, LNG purchases were recorded at only 229.1 cargo standards, with details from the 117.4 Tangguh cargo standard and 111.4 cargo standard Bontang.

This LNG distribution did not reach the target either for domestic or export. In 2019, the target for LNG distribution into the country is 67 cargo standards and 185 cargo exports. While the distribution realization for the domestic market is only 60.5 cargo standards and 168.6 cargo exports. 

    Not only LNG, Arief added, his party would also strive for pipeline gas distribution according to the contract. The reason is, although domestic gas distribution is increasing, some of them are still under contract.

"If there is an allocation but a little absorption, it will be relocated to another buyer," he said.

Western Buyer

According to Arief, he also must find a buyer to replace the Western Buyer Extension (WBX). This is because the LNG buyer on Japan's west coast will probably not renew his LNG purchase contract from the Bontang refinery, which expires at the end of 2020. 

     He explained that negotiations with the WBX had been going on since 2019 and had not yet reached an agreement. Because the contract expires in late 2020, it will also look for other buyers.

"We are looking for a replacement for WBX if it is not renewed. WBX does not want to extend, but we are trying to find other buyers, "he said.

However, in 2020, he will still open negotiations with the WBX. Although he admitted, not all WBX members would agree to extend their contracts with Indonesia. Negotiations carried out last year were stopped because of the LNG price problem.

"We are still trying to be extended. Although not all members of the consortium will extend the contract. At this time, we will start renegotiating after getting the price reference from the sale at the end of 2019 yesterday, "explained Arif.

One option is that LNG, which is usually sold to WBX, can be sold to domestic buyers even at low prices. This is considered far better than selling the LNG to the international spot market at a low price.

For information, this LNG sales contract to Japan is with five companies on Japan's west coast or commonly called Western Buyers. This LNG supply is brought from the Bontang LNG Plant which is operated by Badak LNG. These five companies are Chubu Electric Co., Kansai Electric Power Co, Kyushu Electric Power Co, Nippon Steel Corp dan Osaka Gas Co Ltd

Investor Daily, Page-9, Tuesday, Jan 14, 2020

Pertamina Is Ready to Integrate TPPI with GRR Tuban

After controlling 51% of Tuban Petro's majority shares, Pertamina is ready to integrate PT Trans-Pacific Petrochemical Indotama (TPPI) Refinery which is a subsidiary of Tuban Petro with the Grass Root Refinery (GRR) Tuban mega project.

Nicke Widyawati

Pertamina President Director Nicke Widyawati explained that the restructuring of Tuban Petro is part of Pertamina's refinery which prioritizes flexibility, in which the refinery mode can switch to either petrochemical or mogas modes. This makes the refinery production can adjust to the demand at the time of operation.

Then with the integrated supply of raw materials between one refinery and other refineries, it is hoped that it can also improve efficiency in terms of both operational expenses and capital expenditures, so as to achieve maximum profitability. With a maximum level of profitability, Pertamina refinery projects will be able to become sustainable businesses in the future.

"So it is clear that our ongoing refinery project will become a sustainable business because it can adapt to market needs and be supported by integration between our refineries and other Pertamina infrastructure," Nicke said.

Nicke said that Pertamina is currently developing refineries in 6 locations, the construction of which is integrated with the construction of a petrochemical plant. One of them is the Tuban GRR which will later be integrated with TPPI, with a 7 km connecting pipeline being built.

Nicke added, the petrochemical business market opportunity is currently around Rp 40-50 trillion per year. In addition, the petrochemical business also has a higher margin than fuel oil.

Nicke said the move to integrate the TPPI refinery with GRR in Tuban was carried out by Pertamina by carrying out a corporate action to purchase Rp. 3.2 trillion in the Tuban Petro series B shares, so that Pertamina currently controls a 51 percent majority stake. By controlling majority shares, Pertamina has controlling shares in order to develop TPPI.

Nicke explained, starting in 2020 according to the RKAP, Pertamina will increase the aromatic production of TPPI refineries from currently 46 thousand tons to 55 thousand tons. In the long term, Pertamina will also build an Olefin Center, so that later the TPPI will produce petrochemicals of 700 thousand tons per year.

At the same time, the Tuban GRR megaproject will have a petrochemical production facility with 1,205 ktpa of polypropylene products, 1,317 ktpa of paraxylene and 750 ktpa of polyethylene.

Investor Daily, Page-9, Tuesday, Jan 14, 2020

SKK Migas Spurs LNG Sales

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) will take aggressive steps in selling liquefied natural gas (LNG) while at the same time reducing production or curtailment in 2020.

Deputy of Finance and Monetization of SKK Migas Arief Setiawan Handoko hopes that the reduction in gas production (curtailment) will no longer be repeated in 2020. Because, one of the impacts of the curtailment in 2019 is the production performance of ready to sell (lifting) recorded only 5,934 million cubic feet per day (MMscfd), below the state budget target of 7,000 MMscfd.

"This year we are trying to avoid curtailment and sell the products as soon as possible," he said.

Last year, global LNG price pressures caused national LNG producers to cancel some of their production to avoid losses. Throughout 2019, SKK Migas successfully marketed 229.1 LNG cargo standards spread out with details of 168.6 cargoes to the export market and 60.5 cargoes to the domestic market. The LNG supply comes from 111.7 cargo Bontang refinery and 117.4 cargo Tangguh refineries.

Meanwhile, SKK Migas targets LNG production to reach 211.9 cargo standards, namely from Tangguh Refinery 122.35 cargo standards and Bontang 89.6 cargo standards by 2020.

This LNG production target is lower and the realization of production or last year's target. Arief added that the entire planned LNG production volume had been contracted or there were no remaining cargo (uncommitted cargo).

In addition to marketing LNG, SKK Migas also encourages pipeline gas distribution in accordance with the contract. Admittedly, domestic gas distribution is increasing, but some of them are still under contract. For example, such as the use of natural gas for the industrial sector, a contract of 1,910.58 BBTud was recorded, while only those that were realized.

A total of 1,600.12 BBTud, in addition, the electricity sector with contracts 1,151.22 BBTud, while 849.44 BBtud were realized. Likewise, for the fertilizer sector, gas contracts are recorded.

A total of 830.27 BBTud, while 748 BBTud was channeled, the export of piped gas was also recorded under the contract awarded with 723.99 BBTud from the contract of 809.85 BBTud. On the other hand, SKK Migas Head Dwi Soetjipto hopes that world LNG prices continue to improve. According to him in the last tender in 2019, the prices recorded had gone up by around 11.6%, with Brent valued at the US $ 8 per MMBTU.

"Indeed, sometimes prices are very low because of the situation. So the warming of Iran - the United States has caused prices to rise, "he said.

Meanwhile, SKK Migas also prioritized the domestic market after the contract with Westem Buyer Extension (WBX) ended in 2020. Arief Setiawan Handoko said that his party would offer it to domestic buyers before marketing it overseas. According to him, the step was taken to provide added value to the domestic industry.

"Domestic only. For example, selling cheap is okay, enjoying the local industry. "Instead of being sold on the cheap spot market abroad, it's better to sell cheap in the country," he said.

At present, SKK Migas continues to look for buyers to replace WBX. This was taken after LNG buyers on Japan's west coast were not expected to renew their LNG purchase contracts from the Bontang refinery, which expires at the end of 2019.

Actually, SKK Migas has made offers to WBX since last year, but until now there has been no agreement with these buyers. The WBX is a sales contract represented by five companies on the west coast of Japan. These five companies are Chubu Electric Co., Kansai Electric Power Co., Kyushu Electric Power Co., Nippon Steel Corp., and Osaka Gas Co. Ltd.

The LNG supply is brought from the Bontang LNG Plant which is operated by Badak LNG. Difficult negotiations with the WBX occurred regarding the LNG price agreement. Arief admitted that not all WBX members would agree to extend their contracts with Indonesia.

"When we will start renegotiating again after getting the price reference from the sale at the end of 2019," he added.

On the other hand, Wood Mackenzie, a global energy consultant, said market liberalization and low spot LNG prices had given birth to new players.

Principal Analyst WoodMac Asti Asra said lower spot LNG prices have made buyers look for ways to get cheaper access.

   According to him, in 2020, many companies will directly seek LNG directly to the spot market with short and medium-term agreements. On the other hand, gas demand growth in China has slowed by around 9% in 2019 compared to the previous year of 17%. The trade war is said to have a domino effect on the Chinese economy.

Woodmac Senior Manager Miaoni Huang said that with the power of the Siberian pipeline operating and having the first gas flowing from Russia to northern China, the need for winter LNG could be cut.

"In addition, domestic gas production is still increasing at a faster pace than in previous years. If this continues in 2020, gas imports will face slower growth. "

Bisnis Indonesia, Page-20, Tuesday, Jan 14, 2020

Pertamina Continues to Work on Rokan

Oil production from the Rokan Block in Indonesia continues to decline by 20,000 barrels per day due to the absence of well drilling activities since 2018. To withstand the natural decline, PT Pertamina will drill 20 wells in the Rokan Block in 2020.

the Rokan Block

Pertamina Corporate Communication Vice President Fajriyah Usman said the target for drilling 20 wells in the Rokan Block was an initial assumption set by the state-owned oil and gas company.

Fajriyah Usman

"As an initial assumption to withstand the rapid rate of natural decline (natural decline), said Fajriyah.

Fajriyah explained that, despite having an initial assumption of the number of drilling wells in the Rokan Block, the true number of development wells was still under technical study by Pertamina's management. 

    Previously, Pertamina targeted the development well drilling to be carried out at the end of 2020. Now, so that the target could be realized faster, Pertamina continued to make the transition process between Pertamina as the operator of the Rokan Block after the Chevron Pacific Indonesia (CPI) contract which expires in 2021 could be immediately resolved.

Fajriyah explained, to date both Pertamina and Chevron continue to discuss finalization of the Rokan Block transition. According to him, there are still a number of important points that must be resolved as soon as possible by both parties. But Fajriyah was still not willing to explain in detail about these points.

"(In addition) we have also prepared investments," explained Fajriyah without being willing to disclose the value of the investment prepared.

Deputy of the Special Keqa Planning Unit Implementing the Upstream Oil and Gas Business Activities (SKK Migas) Jafee Suardin Arizon said the transition to the management of the Rokan Block depends on the results of talks between Pertamina and Chevron.

"We only help set up a joint program with Pertamina. Later we will see what business to business results will be like," he said

Jafee said, if the B to B discussions between the two parties were completed, Pertamina could immediately start the drilling and investment plan in the Rokan Block. The drilling of wells in this block is targeted to start in the third quarter of 2020 and will be carried out in stages. The transition process over the management of the Rokan Block has become one of the focuses of the government in 2020.

Arifin Tasrif

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasized that the transition process from Chevron Pacific Indonesia to Pertamina could be completed in 2020. Arifin said he was pushing for accelerated implementation of the oil and gas drilling process in the block located in Riau Province. Of the 72 drilling well targets in the Rokan Block, at least Pertamina has been able to do 20 drilling this year. Thus, it is expected that the rate of decline will not deepen.

IN INDONESIA

Pertamina Terus Upayakan Garap Rokan

Produksi minyak dari Blok Rokan di RIau terus merosot 20.000 barel per hari akibat tidak adanya kegiatan pemboran sumur sejak tahun 2018. Untuk menahan laju penurunan alamiah atau natural decline tersebut, PT Pertamina akan melakukan pemboran 20 sumur di Blok Rokan pada tahun 2020 ini. 

    Vice President Corporate Communication Pertamina Fajriyah Usman mengatakan, target pemboran 20 sumur di Blok Rokan merupakan asumsi awal yang dipasang oleh perusahaan migas milik negara ini. 

"Sebagai asumsi awal untuk menahan deras laju penurunan alamiah (natural decline), kata Fajriyah.

Fajriyah menjelaskan, meskipun telah memiliki asumsi awal jumlah pengeboran sumur di Blok Rokan, sejatinya jumlah sumur pengembangan masih dalam kajian teknis oleh manajemen Pertamina. Sebelumnya, Pertamina menargetkan pemboran sumur pengembangan dilakukan di akhir tahun 2020. 

    Nah, supaya target tersebut bisa Iebih cepat terealisasi, Pertamina terus mengupayakan agar proses transisi antara Pertamina sebagai operator Blok Rokan setelah kontrak Chevron Pacific Indonesia (CPI) yang habis di tahun 2021 bisa segera diselesaikan. 

Fajriyah menjelaskan, hingga saat ini baik Pertamina dan Chevron masih terus melakukan diskusi finalisasi mengenai transisi Blok Rokan. Menurut dia, masih ada sejumlah poin penting yang harus diselesaikan sesegera mungkin oleh kedua pihak. Namun Fajriyah masih belum bersedia menjelaskan secara rinci seputar poin-poin tersebut. 

"(Selaln itu) investasi juga telah kami siapkan," terang Fajriyah tanpa bersedia membeberkan nilai investasi yang disiapkan.

Deputi Perencanaan Satuan Keqa Khusus Pelaksana kegiatan Usaha Hulu Minyak dan gas Bumi (SKK Migas) Jafee Suardin Arizon mengatakan, transisi alih kelola Blok Rokan bergantung pada hasil pembicaraan antara Pertamina dan Chevron. 

"Kami hanya membantu menyiapkan program bersama dengan Pertamina. Nanti kami lihat hasil business to business seperti apa," ujar dia.

Jafee menuturkan, jika pembahasan B to B kedua belah pihak rampung, maka Pertamina dapat segera memulai rencana pengeboran dan investasi pada Blok Rokan. Adapun pengeboran sumur di blok ini ditargetkan mulai kuartal III-2020 dan dilakukan secara bertahap. Proses transisi alih kelola Blok Rokan menjadi salah satu fokus pemerintah tahun 2020 ini. 

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menekankan, agar proses transisi dari Chevron Pacific Indonesia ke Pertamina bisa selesai tahun 2020. Arifin mengatakan, pihaknya mendorong percepatan pelaksanaan proses pemboran migas di blok yang terletak di Provinsi Riau itu. 

     Dari target pengeboran 72 sumur di Blok Rokan, paling tidak Pertamina sudah bisa melakukan 20 pengeboran pada tahun ini. Dengan demikian, diharapkan laju penurunan tidak semakin dalam.

Kontan, Page-14, Monday, Jan 13, 2020

Minister of EMR Finalizes Collaboration with UAE

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif held a working visit to Abu Dhabi, United Arab Emirates (UAE) on Saturday (11/1) to Tuesday (1/14). The work visit precedes the planned visit of President Joko Widodo (Jokowi) on Sunday (12/1) to witness the signing of several business cooperation agreements in the energy and mineral resources sector.

According to the Head of the Communication, Public Information Service and Cooperation Bureau of the Ministry of Energy and Mineral Resources, Agung, the signed business cooperation document will be exchanged at the United Arab Emirates Presidential Office, Qasr Alwatan and witnessed by the two heads of state. 

    During his visit, Minister Arifin had a meeting with the Minister of State of the United Arab Emirates, as well as the CEO of the Abu Dhabi National Oil Company (Adnoc). The meeting also discussed the exploration of cooperation between PT Pertamina with Adnoc and Mubadala.

"At present, all documents are brought by Adnoc and Mubadala. If both parties agree, a 12 January 2020 cooperation agreement will be signed in Abu Dhabi," Agung said.

In addition, the Minister of Energy and Mineral Resources has also witnessed the signing of the Addendum of Memorandum of Understanding (MoU) between Emirates Global Aluminum (EGA) and PT Indonesia Asahan Aluminum (lnalum) regarding technology transfer that will be beneficial in increasing mining production.

IN INDONESIA

Menteri ESDM Finaslisasi Kerjasama dengan UEA

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menggelar kunjungan kerja ke Abu Dhabi, Uni Emirat Arab (UEA) pada Sabtu (11/1) hingga Selasa (14/1). Adapun kunjungan kerja tersebut mendahului rencana kunjungan kenegaraan Presiden Joko Widodo (Jokowi) pada Minggu (12/1) untuk menyaksikan beberapa penandatanganan kerjasama bisnis di sektor energi dan Sumber daya mineral.

Menurut Kepala Biro Komunikasi, Layanan Informasi Publik, dan Kerjasama Kementerian ESDM Agung Pribadi, dokumen kerjasama bisnis yang telah ditandatangani itu akan dipertukarkan di lstana Kepresidenan Uni Emirat Arab, Qasr Alwatan dan disaksikan kedua kepala negara. 

    Dalam kunjungannya, Menteri Arifin sempat melakukan pertemuan dengan Minister of State Persatuan Emirat Arab, sekaligus CEO Abu Dhabi National Oil Company (Adnoc). Dalam pertemuan itu juga dibahas mengenai penjajakan kerjasama antara PT Pertamina dengan Adnoc dan Mubadala. 

"Saat ini semua dokumen dibawa oleh Adnoc dan Mubadala. Bila kedua pihak sepakat, akan dilakukan penandatangan kerjasama 12 Januari 2020 di Abu Dhabi," kata Agung.

Selain itu, Menteri ESDM juga telah menyaksikan penandatangan Addendum of Memorandum of Understanding (MoU) antara Emirates Global Aluminium (EGA) dan PT Indonesia Asahan Aluminium (lnalum) mengenai transfer teknologi yang akan bermanfaat dalam meningkatkan produksi pertambangan.

Kontan, Page-14, Monday, Jan 13, 2020

Government to Open Auction for Oil and Gas Block

The government will hold a phase 1 auction of Working Areas (WK) this year in the first quarter. In this auction, the government will again offer the production sharing contract / PSC investment cost scheme, in addition to the gross split scheme (gross split), Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said, both schemes PSC auction will be offered to investors in this 2020 oil and gas block auction.

"We have been able to use two oil and gas contract schemes. But we are currently fixing the cost recovery provisions. We justified the one that didn't quite fit, "he said in Jakarta.

Regarding the oil and gas blocks to be auctioned, Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, added that he could not confirm the amount.

The reason is, that his party is still waiting for the results of his study with the Geological Agency and the Work Unit for Upstream Oil and Gas Business Activities (SKK Migas) related to which oil and gas blocks are ready to be auctioned. Oil and gas blocks that were not in demand at last year's auction will also be auctioned again in 2020.

Blogger Agus Purnomo in SKK Migas

"Yes [the oil and gas block] yesterday that was not in demand was auctioned again. Maybe the auction will be in the first quarter, "said Djoko.

Unfortunately, Djoko did not specify which blocks will be re-auctioned. For information, there are eight oil and gas blocks that are not in demand by investors at the three auction stages held in 2019. The details are West Kampar, West Kaimana, Kutai, Bone, East Gebang, West Tanjung I, Belayan I, and Cendrawasih VIII blocks.

Cendrawasih VIII blocks

The West Kampar Block, located on mainland Riau and North Sumatra, has oil and gas resources of 4.3 billion barrels of oil stock. West Kaimana Block The oil resources of this block are 2.44 billion barrels and 4.64 trillion cubic feet of gas.

Furthermore, the East Gebang Block has 6 prospects and 7 leads with an estimated 1.36 trillion cubic feet. This block is also adjacent to production facilities and infrastructure in the Gebang Block and Glagah Kambuna.

West Tanjung I Block has 6 leads with an estimated 150 million barrels of oil resources. This block is adjacent to several blocks that have good facilities and can be tied in with the Karendan and Tanjung Blocks.

The Belayan I Block has a proven basin with an estimated resource of 2.59 billion barrels of oil. In this block, there are at least three types of play, namely structural, stratigraphic, and combination, where 4 prospects and 10 leads are identified.

Belayan I Block is also adjacent to existing production facilities. The Cendrawasih VIII block in Papua is estimated to have gas resources of 3.84 trillion cubic feet and 1.02 billion barrels of oil. This block is located in a remote area and lacks facilities.

Investor Daily, Page-9, Monday, Jan 13, 2020

Pertamina Is Expected to Increase Lifting This Year

The Executive Director of the Center for Energy Policy, M. Kholid Syeirazi, said that in 2020 Pertamina was expected to be able to increase lifting, considering that the BUMN's performance in 2019 succeeded in exceeding the oil lifting target.

"I appreciate the achievement of Pertamina's achievement which exceeded last year's lifting target. For this reason, in 2020 I hope Pertamina can be more aggressive and dare to take risks to explore new areas, "he said as quoted by Antara.

Towards the end of 2019, Pertamina's oil lifting through Pertamina EP reached 29,939,653 BBL and Gas 272,954 MMSCF. Specifically for Pertamina EP Asset 3, it succeeded in producing 13,092 BOPD, equivalent to 100.6 percent of the WP&B target, while gas production reached 262 MMSCFD.

Based on that, Kholid believes that in 2020 Pertamina can increase lifting even more, but to achieve that, the company must be more daring to explore in new field areas.

Kholid added that the achievement could not be separated from the application of technology and human resources (HR) used by the state gas company. However, the use of high technology will impact Pertamina's high production costs. Besides that, the assignment of factors in a number of fields or oil and gas blocks was the trigger for Pertamina's success last year.

the Cepu Block

"This assignment factor has increased the amount of oil and gas production, one of which is the Cepu Block, which has contributed greatly to Pertamina. Not only Pertamina, but the Cepu Block production also contributes to the National oil and gas production, "he said.

IN INDONESIA

Pertamina Diharapkan Tingkatkan Lifting Tahun Ini

Direktur Eksekutif Center for Energy Policy, M. Kholid Syeirazi, mengatakan pada 2020 Pertamina diharapkan bisa lebih meningkatkan lifting mengingat kinerja BUMN tersebut pada 2019 berhasil melampaui target lifting minyak.

“Saya mengapresiasi hasil pencapaian Pertamina yang berhasil melampaui target (lifting) tahun lalu. Untuk itu, tahun 2020 ini saya harap Pertamina bisa lebih agresif dan berani mengambil resiko (taking risk) untuk melakukan eksplorasi di wilayah-wilayah lapangan baru,” katanya seperti dikutip Antara.

Menjelang akhir 2019, lifting minyak Pertamina melalui Pertamina EP mencapai 29.939.653 BBL dan Gas 272.954 MMSCF. Khusus untuk Pertamina EP Asset 3, berhasil memproduksi 13,092 BOPD atau setara dengan 100,6 persen target WP&B, adapun produksi gas mencapai 262 MMSCFD. 

Berdasarkan hal itu, Kholid yakin pada 2020 Pertamina bisa lebih meningkatkan lifting tetapi untuk mencapai itu, perusahaan harus lebih berani melakukan eksplorasi di wilayah-wilayah lapangan baru. 

Kholid menambahkan, pencapaian itu tidak bisa lepas dari penerapan teknologi dan Sumber Daya Manusia (SDM) yang digunakan oleh perusahaan gas negara ini. Namun, penggunaan teknologi tinggi, akan berdampak tingginya cost produksi Pertamina. Selain itu faktor alih tugas sejumlah lapangan atau blok migas, jadi pemicu keberhasilan Pertamina di tahun lalu.

“Faktor alih tugas ini menambah jumlah produksi Migas, salah satunya Blok Cepu yang memberikan kontribusi sangat besar bagi Pertamina. Tidak hanya Pertamina, produksi Blok Cepu ini juga memberikan kontribusi bagi produksi migas Nasional,” katanya.

Investor Daily, Page-9, Monday, Jan 13, 2020

POD Sakakemang Completed in the First Quarter

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is targeting the Sakakemang Block Plan of Development / POD to be completed in the first quarter of 2020.

the Sakakemang Block

SKK Migas Planning Deputy Jafee Suadin said that his office was speeding up the completion of the Sakakemang Block POD. For this reason, his party will meet with Repsol to discuss the POD preparation.

Repsol

"But I have to meet with Repsol," he said at the ESDM Ministry Office.

In his presentation on the 2019 SKK Migas Performance and 2020 Plan, Jafee mentioned the Sakakemang Block POD completion target in the quarter I / 2020.

"The Sakakemang Block was announced in January 2019, when seen on average from discovery to POD to full stream it can be 10-15 years. Our target for the first quarter of 2020 can be POD in Sakakemang, "he said.

Lemigas

However, Repsol is still waiting for the issuance of 1 TCF proven reserve certification from the Center for Research and Development of Oil and Gas Technology (Lemigas) before discussing the development plan.

Previously, Repsol as a new operator in the Sakakemang Block submitted a proven reserve certification of 1 TCF from the potential proven reserves of 2 TCF. Previously, SKK Migas Head Dwi Sutjipto said the number of delineation wells in the field development in Sakakemang Block was not too much. 

    For information, delineation wells are wells drilled with the aim of setting oil and gas reservoir limits and well productivity. If according to plan, the field will start producing (on-stream) in 2021.

IN INDONESIA

POD Sakakemang Rampung Kuartal I

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menargetkan rencana Plan Of Development/POD Blok Sakakemang dapat rampung pada kuartal I/2020. 

Deputi Perencanaan SKK Migas Jafee Suadin mengatakan pihaknya sedang mempercepat penyelesaian POD Blok Sakakemang. Untuk itu, pihaknya akan bertemu dengan Repsol untuk membahas penyusunan POD.

“Tapi saya harus ketemu dengan Repsol,” katanya di Kantor Kementerian ESDM.

Dalam paparan Kinerja SKK Migas 2019 dan Rencana 2020, Jafee menyebut target penyelesaian POD Blok Sakakemang pada kuartlal I/2020.

“Blok Sakakemang diumumkan discovery Januari 2019, kalau dilihat rata-rata dari discovery sampai POD ke full stream bisa 10-15 thn. Target kami kuartal I/2020 ini bisa ada POD di Sakakemang,” katanya.

Namun Repsol masih menunggu penerbitan sertifikasi cadangan terbukti 1 TCF dari Pusat Penelitian dan Pengembangan Teknologi Minyak dan Gas Bumi (Lemigas) sebelum membahas nencana pengembangan. 

Sebelumnya, Repsol sebagai operator baru di Blok Sakakemang mengajukan sertiflkasi cadangan terbukti sebesar 1 TCF dari potensi cadangan terbukti 2 TCF.  Sebelumnya, Kepala SKK Migas Dwi Sutjipto mengatakan jumlah sumur delineasi dalam pengembangan lapangan di Blok Sakakemang belum terlalu banyak. 

    Sebagai informasi, sumur delineasi adalah sumur yang dibor dengan tujuan menetapkan batas reservoir minyak dan gas bumi dan produktivitas sumur. Apabila sesuai rencana, lapangan tersebut sudah mulai berproduksi (on-stream) pada 2021.

Bisnis Indonesia, Page-20, Monday, Jan 13, 2020