Accelerate the Construction of Oil Refineries

PT Pertamina conducted two collaborations to complete the construction of an oil refinery in East Kalimantan. The first project, which is an oil refinery in Bontang, is cooperated with an oil company from Oman, Overseas Oil & Gas (OOG). Bontang Refinery is one of six refinery projects Pertamina will work on until the next 2026.

Nicke Widyawati

Pertamina's Managing Director, Nicke Widyawati, explained, for the refinery in Bontang, the framework agreement between the two companies applies to build a 300 thousand barrel / day refinery and the Petrochemical industry. With the signing of this cooperation, Pertamina can take the next step, namely a feasibility study, including in its economic terms.

"This study will give us a better understanding of the technical configuration of the refinery and the economics of the project as well as recognize the risks that can be anticipated early on for timely project implementation, according to the budget, on specifications, regulations, and achieve project economic targets," Nicke said at Pertamina Headquarters, Monday (10/12).

According to Nicke, the Bontang refinery will later become the largest refinery owned by Pertamina. In addition, the proceeds from the refinery will directly be integrated with the petrochemical plant. In addition to the refinery in Bontang, Pertamina is also conducting development cooperation with Hyundai Engeneering, SK Engeneering, Rekind, and PT PP for the construction of a refinery development master plan (RDMP) in Balikpapan. The construction of a refinery that requires funds of US $ 4 billion or around Rp. 57.8 trillion is planned to be completed by August 2023.

Hyundai Engeneering Co., Ltd.

Nicke said that the refinery is also one of six refinery projects that Pertamina will complete until 2026. If it is already operational, the Balikpapan refinery is predicted to reduce the purchase of diesel fuel by about 17 percent.

"In addition to being able to suppress imports. This refinery will focus on producing, fuel (fuel oil) with a higher standard. So, it will be more environmentally friendly," said Nicke.

PT Pertamina's Megaprojecting and Petrochemical Director, Ignatius Talulembang, said, for oil refineries in Bontang, all funds were spent purely from OOG. Pertamina will get profit sharing around 10 percent. Even so, going forward, Pertamina will slowly buy up 30 percent of share ownership. Through this collaboration in the form of government to government (G to G), Pertamina has the opportunity to open investment in Oman.

Framework Agreement Pertamina & OOG Oman

While for refineries in Balikpapan, Igantius said, since the beginning of 2018 Pertamina has begun preparatory construction, such as the construction of warehouses and workshops, for construction workers. Next year, significant development will be carried out.

"Development takes around 53 months until it starts operating. An additional three months is up to normal operation," Ignatius said.

     The Balikpapan refinery has a capacity of 360 thousand barrels per day. This is a development from the previous refinery with a capacity of only 100,000 barrels per day.

IN INDONESIAN

Percepat Pembangunan Kilang Minyak

PT Pertamina melakukan dua kerja sama untuk menyelesaikan pembangunan kilang minyak di Kalimantan Timur.  Proyek pertama, yaitu kilang minyak di Bontang yang dikerjasamakan dengan perusahaan minyak dari Oman, Overseas Oil & Gas (OOG). Kilang Bontang merupakan salah satu dari enam proyek kilang yang akan dikerjakan Pertamina hingga 2026 mendatang.

Direktur Utama Pertamina, Nicke Widyawati, menjelaskan, untuk kilang di Bontang, perjanjian framework agreement antara kedua perusahaan berlaku untuk membangun kilang berkapasitas 300 ribu barel/hari dan industri Petrokimia. Dengan ditandatanganinya kerja sama ini, Pertamina bisa melakukan langkah berikutnya, yakni Studi kelayakan, termasuk dalam hal keekonomiannya.

"Studi ini akan memberikan kita pemahaman yang lebih baik tentang konfigurasi teknis kilang dan keekonornian proyek serta mengenal risiko-risiko yang dapat diantisipasi sejak dini untuk pelaksanaan proyek yang tepat waktu, sesuai anggaran, pada spesifikasi, pada peraturan, dan mencapai target keekonomian proyek,” ujar Nicke di Kantor Pusat Pertamina, Senin (10/12).

Menurutnya, kilang Bontang ini nantinya menjadi kilang terbesar yang dimiliki Pertamina. Selain itu, hasil dari kilang ini secara langsung akan diintegrasikan dengan pabrik petrokimia. Selain kilang di Bontang, Pertamina juga melakukan kerja sama pembangunan dengan Hyundai Engeneering, SK Engeneering, Rekind, dan PT PP untuk pembangunan kilang refinery development masterplan (RDMP) di Balikpapan. Pembangunan kilang yang membutuhkan dana sebesar 4 miliar dolar AS atau Sekitar Rp 57,8 triliun ini rencananya Selesai pada Agustus 2023.

Nicke mengatakan, kilang ini juga merupakan salah satu dari enam proyek kilang yang akan diselesaikan Pertamina hingga 2026. Jika telah beroperasi, kilang Balikpapan diprediksi bisa menekan pembelian solar secara impor sekitar 17 persen.

"Selain bisa menekan impor. Kilang ini nantinya akan fokus memproduksi, BBM (bahan bakar minyak) dengan standar lebih tinggi. Jadi, akan lebih ramah lingkungan," kata Nicke.

Direktur Megaproyek Pengolahan dan Petrokimia PT Pertamina, Ignatius Talulembang, menuturkan, untuk kilang minyak di Bontang, seluruh dana yang dikeluarkan murni dari OOG. Pertamina akan mendapat bagi hasil Sekitar 10 persen. Meski demikian, ke depan, Pertamina secara perlahan akan membeli kepemilikan Saham hingga 30 persen. Melalui kerja sama berbentuk goverment to goverment (G to G) ini, Pertamina memiliki kesempatan untuk membuka investasi di Oman.

Sementara untuk kilang di Balikpapan, Igantius menuturkan, sejak awal 2018 Pertamina telah memulai konstruksi persiapan, seperti pembangunan warehouse dan workshop, untuk para pekerja konstruksi. Tahun depan, pembangunan secara signfikan akan dilakukan.

"Pembangunan membutuhkan waktu sekitar 53 bulan sampai dengan mulai beroperasi. Tambahan tiga bulan lagi sampai beroperasi normal," ujar Ignatius. 

Kilang Balikpapan memiliki kapasitas 360 ribu barel per hari. Ini merupakan pengembangan dari kilang sebelumnya yang berkapasitas hanya 100 ribu barel per hari.

Republika, Page-15, Tuesday, Dec 11, 2018

Collaborating with Schlumberger, ELSA Strengthens Upstream Oil and Gas

In order to strengthen and optimize the upstream oil and gas service business (oil and gas), PT Elnusa Tbk (ELSA) has a partnership with Schlumberger, an energy company from the United States (US). The cooperation is in the signing of the Master Cooperation Agreement (MCA) and Wireline Master Service (WMS) between the two companies.

PT Elnusa Tbk (ELSA)

President Director of PT Elnusa Tbk Tolingul Anwar, hopes that this collaboration can increase national capacity in upstream oil and gas services and technology transfer. ELSA and Schlumberger can also share opportunities and risks to increase growth.

Schlumberger

According to Tolingul, the collaboration is needed to accelerate the company's growth. The partnership between ELSA and Schlumberger has five categories, namely reservoir characterization, drilling and oil production, surface production and integrated service.

"Of course this management requires a service contractor and Elnusa hopes to get greater opportunities in the context of the synergy of Pertamina Group," said Tolingul, Monday (10/12).

As of October 31, 2018, Pertamina did control 41, 10% of ELSA's shares. On the other hand, Schlumberger has technology and resources that can be optimized for the management of upstream oil and gas. In fact, said Tolingul, the technology can contribute to lowering costs, as well as maximizing oil and gas fields and supporting government programs in finding giant fields in Indonesia.

IN INDONESIAN

Gandeng Schlumberger, ELSA Perkuat Hulu Migas

Demi memperkuat clan mengoptimalkan bisnis jasa hulu minyak dan gas bumi (migas), PT Elnusa Tbk (ELSA) menjalin kerjasama dengan Schlumberger, perusahaan energi dari Amerika Serikat (AS). Kerjasama itu ada didalam penandantanganan Master Cooperation Agreement (MCA) dan Wireline Master Service (WMS) di antara kedua perusahaan.

Direktur Utama PT Elnusa Tbk Tolingul Anwar, mengharapkan kerjasama ini bisa meningkatkan kapasitas nasional dalam servis hulu migas dan alih teknologi. ELSA dan Schlumberger juga bisa saling berbagi peluang dan risiko untuk meningkatkan pertumbuhan.

Menurut Tolingul, kerjasama tersebut sangat dibutuhkan untuk mempercepat pertumbuhan perusahaan. Kongsi antara ELSA dan Schlumberger ini memiliki lima kategori, yakni reservoir Characterization, pengeboran dan produksi minyak, surface production serta integrated service.

“Tentunya pengelolaan ini membutuhkan kontraktor jasa dan Elnusa berharap akan mendapatkan kesempatan yang lebih besar dalam rangka sinergi Pertamina Group,” ungkap Tolingul, Senin (10/ 12). 

Per 31 Oktober 2018, Pertamina memang menguasai 41, 10% Saham ELSA. Di sisi lain, Schlumberger memiliki teknologi dan resources yang bisa dioptimalkan untuk pengelolaan hulu migas. Bahkan, kata Tolingul, teknologi itu bisa berkontribusi dalam menurunkan biaya, serta memaksimalkan lapangan-lapangan migas dan mendukung program pemerintah dalam mencari lapangan raksasa di Indonesia.

Kontan, Page-14, Tuesday, Dec 11, 2018

Refinery Project Targeted to Finish in 2026

PT Pertamina (Persero) is committed to completing a refinery development project and the construction of a new refinery in 2026. The refinery development project is carried out in four refineries, including a refinery specifically processing palm oil. Previously, the mega project was scheduled to be completed in 2024.

Pertamina signed a design, construction and engineering (EPC) contract for the development of the Balikpapan refinery, East Kalimantan, in Jakarta on Monday (12/10/2018). EPC auction winner companies are SK Engineering & Construction Co. Ltd, Hyundai Engineering Co. Ltd, PT Rekayasa Industri, and PT Pembangunan Perumahan (Persero) Tbk.

Pertamina also signed a document on the framework of cooperation with Overseas Oil & Gas (OOG), an oil and gas company from Oman, to build a new refinery in Bontang, East Kalimantan. The Balikpapan refinery development project will begin in January 2019. The schedule given to project implementers is 53 months which is effective from the signing of the contract. The project will increase refinery capacity from 260,000 barrels per day to 360,000 barrels per day with the quality of the fuel produced by the Euro 5 standard.

Nicke Widyawati 

Pertamina's Managing Director Nicke Widyawati acknowledged there was a delay in the construction of a new refinery development and construction project. However, it is still better than no progress at all. It targets the entire refinery development and construction projects to be completed by 2026.

"All will be done in parallel (new refinery development and construction projects). It's better late than nothing, "said

Nicke after signing the contract.

Overseas Oil & Gas (OOG)

As for the new refinery development project in Bontang, OOG has gone through the selection phase since last year. OOG is considered to have strong financial capabilities, including the strength of upstream-downstream businesses. The refinery in Bontang will have a capacity of 300,000 barrels per day.

Pertamina's Director of Processing and Petrochemical Project, Ignatius Tallulembang, added that in the new refinery development project in Bontang, all funding was borne by the OOG. Under the agreement, Pertamina will get a 10 percent golden share. Pertamina as the party that provides land and other supporting infrastructure on this project.

In the long run, Pertamina's shares will be raised to 20 percent or 30 percent. "The new refinery in Bontang will later be integrated with petrochemical products. The investment value is around 10 billion US dollars," Ignatius said.

In that cooperation, OOG is committed to supplying crude oil for refinery needs. The fuel products produced will be fully absorbed by Pertamina. However, there is a chance that Pertamina and OOG will establish a joint venture to sell BBM domestically.

     Meanwhile, Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan claimed to understand why the megaproject developing capacity and construction of new refineries could not be done quickly. The whole set of processes must be carried out carefully. Only, according to him, needs attention to the increasingly rapid development of electricity for transportation that can replace the role of BBM.

"There is a concern that electricity is growing rapidly, why build a refinery? In addition to energy security, building refineries is also for the development of domestic petrochemical industries, "said Jonan.

In addition to the Balikpapan refinery, the refinery development project is also carried out in Cilacap, Central Java; in Balongan, West Java; and in Dumai, Riau. The new refinery to be built, besides in Bontang, is also in Tuban, East Java by Rosneft from Russia. If all the projects are completed, the installed capacity of the refinery will increase from 1 million barrels per day to 2 million barrels per day.

Rosneft Oil Company Russia

Previously, Coordinating Minister for the Economy Darmin Nasution stated that Pertamina must accelerate the realization of new refinery development which is integrated with the petrochemical industry to reduce dependence on imports. Pertamina was also asked to optimize the mandatory B-20 policy. This policy is in the form of mixing biodiesel into diesel fuel so that every liter of diesel fuel contains 20 percent of biodiesel.

IN INDONESIAN

Proyek Kilang Ditargetkan Selesai pada 2026

PT Pertamina (Persero) berkomitmen menyelesaikan proyek pengembangan kilang dan pembangunan kilang baru di tahun 2026. Proyek pengembangan kilang dilakukan di empat kilang, termasuk kilang khusus pengolahan minyak kelapa sawit. Sebelumnya, megaproyek ini dijadwalkan rampung pada 2024.

Pertamina menandatangani kontrak pengerjaan rancangan, konstruksi, dan rekayasa (EPC) untuk pengembangan kilang Balikpapan, Kalimantan Timur, di Jakarta, Senin (10/12/2018). Perusahaan pemenang lelang EPC adalah SK Engineering & Construction Co Ltd, Hyundai Engineering Co Ltd, PT Rekayasa Industri, dan PT Pembangunan Perumahan (Persero) Tbk. 

Pertamina juga menandatangani dokumen kerangka kerja sama dengan Overseas Oil & Gas (OOG), perusahaan migas dari Oman, untuk membangun kilang baru di Bontang, Kalimantan Timur. Proyek pengembangan kilang Balikpapan akan dimulai Januari 2019. Jadwal yang diberikan ke pelaksana proyek adalah 53 bulan yang berlaku efektif sejak penandatangan kontrak. Proyek ini akan menambah kapasitas kilang dari 260.000 barel per hari menjadi 360.000 barel per hari dengan kualitas bahan bakar minyak (BBM) yang dihasilkan berstandar euro 5.

Direktur Utama Pertamina Nicke Widyawati mengakui ada keterlambatan pengerjaan proyek pengembangan dan pembangunan kilang baru. Namun, hal itu masih lebih baik daripada tidak ada kemajuan sama sekali. Pihaknya menargetkan seluruh proyek pengembangan dan pembangunan kilang baru selesai pada 2026. 

”Semua akan dilakukan secara paralel (proyek pengembangan dan pembangunan kilang baru). Lebih baik terlambat daripada tidak sama sekali,” kata Nicke seusai penandatanganan kontrak.

Adapun proyek pembangunan kilang baru di Bontang, OOG sudah melalui tahap seleksi sejak tahun lalu. OOG dinilai punya kemampuan finansial yang kuat, termasuk kekuatan bisnis hulu-hilir. Kilang di Bontang nantinya akan berkapasitas 300.000 barel per hari.

Direktur Mengaproyek Pengolahan dan Petrokimia Pertamina, Ignatius Tallulembang menambahkan, pada proyek pembangunan kilang baru di Bontang, seluruh pendanaan ditanggung OOG. Dalam perjanjian itu, Pertamina akan mendapat golden share 10 persen. Pertamina sebagai pihak yang menyediakan lahan dan infrastruktur pendukung lainnya pada proyek ini.

Dalam jangka panjang, saham Pertamina akan dinaikkan menjadi 20 persen atau 30 persen. Kilang baru di Bontang nanti akan diintegrasikan dengan produk petrokimia, Nilai investasinya sekitar 10 miliar dollar AS,” kata Ignatius.

Dalam kerja sama itu, OOG berkomitmen memasok minyak mentah untuk kebutuhan kilang. Produk Bahan Bakar Minyak (BBM) yang dihasilkan akan diserap sepenuhnya oleh Pertamina. Namun, ada peluang Pertamina bersama OOG mendirikan usaha patungan untuk penjualan BBM didalam negeri.

     Sementara itu, Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan mengaku bisa paham kenapa megaproyek pengembangan kapasitas dan pembangunan kilang baru tidak bisa dikerjakan cepat. Seluruh rangkaian proses mesti dilakukan dengan cermat. Hanya, menurut dia, perlu perhatian terhadap kian pesatnya perkembangan listrik untuk transportasi yang bisa menggantikan peran BBM.

”Ada kekhawatiran kalau listrik semakin pesat, untuk apa membangun kilang? Selain untuk ketahanan energi, membangun kilang juga untuk pengembangan industri petrokimia di dalam negeri,” kata Jonan.

Selain kilang Balikpapan, proyek pengembangan kilang dilakukan juga di Cilacap, Jawa Tengah; di Balongan, Jawa Barat; dan di Dumai, Riau. Adapun kilang baru yang akan dibangun, selain di Bontang, ada juga di Tuban, Jawa Timur oleh Rosneft dari Russia. Apabila semua proyek itu selesai, kapasitas terpasang kilang naik dari 1 juta barel per hari jadi 2 juta barel per hari.

Sebelumnya, Menteri Koordinator Perekonomian Darmin Nasution menyatakan, Pertamina harus mempercepat realisasi pembangunan kilang baru yang terintegrasi dengan industri petrokimia untuk mengurangi ketergantungan pada impor. Pertamina juga diminta mengoptimalkan kebijakan mandatori B-20. Kebijakan ini berupa pencampuran biodiesel ke dalam solar sehingga setiap liter solar mengandung 20 persen biodiesel.

Kompas, Page-14, Tuesday, Dec 11, 2018

Oil Prices Continue to Decline

Pertamina starts drilling wells in Blora

Weakening global economic growth affected the decline in the price of Indonesian crude oil (ICP) in November 2018. The November 2018 ICP also fell in the figure of USD 62.98 per barrel or down by USD 14.58. ICP is the lowest for a period of 6 months.

The Head of the Communication, Public Information Services and Cooperation Ministry of the Ministry of Energy and Mineral Resources, Agung Pribadi explained that US policies that provide exceptions to eight countries to import crude oil from Iran resulted in over supply.

"Stocks of crude oil are abundant on the global market," he said.

Another impact that resulted in oversupply was the abundance of Saudi Arabian crude oil production due to anticipation of sanctions against Iran. and, an increase in the supply of US crude oil by 24.5 million barrels in November 2018. The excess supply is in accordance with the November 2018 International Energy Agency (IEA) publication which states that OPEC crude oil production in October 2018 increased by 127 thousand barrels per day.

In addition, this year's non-OPEC crude oil supply projection increased 170 thousand barrels per day to 60.3 million barrels per day compared to the previous month's projection.

On the other hand, the International Monetary Fund (IMF) projects world economic growth in 2018 to slow down to 3.7 percent. Down 0.2 percent compared to the previous month's projection.

"In the Asia-Pacific region, the decline in crude oil prices is influenced by several factors," he said.

Among other things, the slowdown in China's economic growth due to trade wars with the US and the weakening demand for crude oil and crude oil products from Japan and Korea.

Meanwhile, PT Pertamina EP Asset 4 Cepu Field has begun drilling the North Kedungtuban exploitation well (NIC1-01 TW) in Blora, Central Java. The drilling is targeted to produce 9 MMSCFD gas. Cepu Acting Officer Field Manager Aley Hildan stated that the NKT-01TW well has enormous oil and gas potential.

"The drilling target is about 9 MMSCFD of gas. At present Cepu Field gas production is at 68 MMSCFD," he said.

Drilling of the well took 69 days with a final depth of 2,909 meters. The production of oil and gas Pertamina EP Asset 4 as of November 23, 2018 has reached 17,235 BOPD (barrel oil per day) or around 121.65 percent above the target. The subsidiary of PT Pertamina EP targets the company's oil and gas production this year to reach 14,032 BOPD.

PT Pertamina EP Asset 4 Cepu Field

Significant increase in asset 4 performance is a positive contribution from each field. For example, Cepu, Poleng, Papua, Donggi Matindok, and especially Sukowati Field. The biggest contributor to the increase in production at asset 4 is the Sukowati field with service in several wells, especially for repairing bonding cement.

As of November 29, 2018, Sukowati field oil production has reached 9,697 BOPD. That number exceeded the field's oil production target this year of 8 thousand BOPD. Gas production in asset 4 also reached 184.17 MMSCFD. That figure is more than 13 percent of the gas production target of 157.59 MMSCFD.

IN INDONESIAN

Harga Minyak Terus Melorot

Pertamina Mulai Bor Sumur di Blora

Pertumbuhan ekonomi global yang melemah mempengaruhi penurunan harga minyak mentah Indonesia atau Indonesian crude price (ICP) pada November 2018. ICP November 2018 pun anjlok di angka USD 62,98 per barel atau turun USD 14,58. ICP merupakan terendah selama kurun waktu,6 bulan.

Kepala Biro Komunikasi, Layanan Informasi Publik, dan Kerja Sama Kementerian ESDM Agung Pribadi menjelaskan bahwa kebijakan AS yang memberikan pengecualian kepada delapan negara untuk mengimpor minyak mentah dari Iran mengakibatkan over supply.

"Stok minyak mentah melimpah di pasaran global," ujarnya.

Dampak lain yang mengakibatkan kelebihan pasokan adalah melimpahnya produksi minyak mentah Arab Saudi akibat antisipasi sanksi terhadap Iran. serta, peningkatan pasokan minyak mentah AS sebanyak 24,5 juta barel pada November 2018. Kelebihan pasokan itu sesuai dengan publikasi International Energy Agency (IEA) November 2018 yang menyebutkan produksi minyak mentah OPEC pada Oktober 2018 mengalami peningkatan 127 ribu barel per hari. 

Selain itu, proyeksi pasokan minyak mentah negara-negara non-OPEC tahun ini meningkat 170 ribu barel per hari menjadi 60,3 juta barel per hari jika dibandingkan dengan proyeksi bulan sebelumnya.

Di sisi lain, International Monetary Fund (IMF) memproyeksikan pertumbuhan ekonomi dunia 2018 mengalami perlambatan menjadi 3,7 persen. Turun 0,2 persen jika dibandingkan dengan proyeksi bulan sebelumnya.

"Di kawasan Asia-Pasifik, penurunan harga minyak mentah dipengaruhi beberapa faktor,” katanya. 

Di antaranya, perlambatan pertumbuhan ekonomi Tiongkok akibat perang dagang dengan AS serta melemahnya permintaan minyak mentah dan produk minyak mentah dari Jepang dan Korea. 

Sementara itu, PT Pertamina EP Asset 4 Cepu Field telah memulai pengeboran sumur eksploitasi North Kedungtuban (NIC1-01 TW) di Blora, Jawa Tengah. Pengeboran tersebut ditargetkan dapat menghasilkan gas 9 MMSCFD. Pejabat sementara Cepu Field Manager Aley Hildan menyatakan, sumur NKT-01TW memiliki potensi migas yang sangat besar. 

"Target pengeboran ini adalah gas sekitar 9 MMSCFD. Saat ini produksi gas Cepu Field berada di angka 68 MMSCFD," katanya.

Pengeboran sumur itu membutuhkan waktu 69 hari dengan kedalaman akhir 2.909 meter. Produksi minyak dan gas bumi Pertamina EP Asset 4 per 23 November 2018 telah berhasil mencapai 17.235 BOPD (barrel oil per day) atau sekitar 121,65 persen di atas target. Anak usaha PT Pertamina EP tersebut menargetkan produksi migas perseroan tahun ini bisa mencapai 14.032 BOPD.

Peningkatan signifikan kinerja aset 4 merupakan kontribusi positif dari setiap lapangan. Misalnya, lapangan Cepu, Poleng, Papua, Donggi Matindok, dan terutama Lapangan Sukowati. Kontributor terbesar peningkatan produksi di aset 4 adalah lapangan Sukowati dengan adanya servis di beberapa sumur, terutama untuk perbaikan bonding cement.

Per 29 November 2018, produksi minyak lapangan Sukowati telah mencapai 9.697 BOPD. Angka itu melampaui target produksi minyak lapangan tersebut tahun ini sebanyak 8 ribu BOPD. Produksi gas di aset 4 pun mencapai 184,17 MMSCFD. Angka itu lebih dari 13 persen dari target produksi gas 157,59 MMSCFD.

Jawa Pos, Page-6, Monday, Dec 10, 2018

ENI S.p.A converts to gross split

Rome-based energy company as agreed to change its contract in the East Sepinggan block, offshore East Kalimantan, from cost recovery to gross split scheme, the first existing contractors that voluntarily turned its contract into the new scheme. 

ENI S.p.A

Deputy Energy and Mineral Resources Minister Arcandra Tahar on Tuesday announced also ENI S.p.A preferred to immediately change the contract, to avoid a long debate with the government about the cost of its project in Merakes gas field.

Arcandra Tahar

"The decision shows that the gross split scheme gives investors simple process, which is certainty more efficient,” he told the press, adding that with the decision, italian company is required to change its plan of development for Merakes gas field and to reveal the amount of its investment.

“The company are committed to increase the local content requirement [TKDN] in the project. if the local content level reaches 30 to 50 percent, the company will get a reward in the form of 2 percentage of additional split.”

the East Sepinggan block, offshore East Kalimantan

ENl'S.p.A's contract in East Sepinggan started in july 2012 and would end in 2041. The block's Merakes gas field is targeted to go onstream in 2021 and set to deliver 391 million standard cubic feet per day (mmscfd) of gas in its peak production. 

In East Sepinggan block, ENI S.p.A holds the 85 percent of participating interest and the remaining stake holds by Pertamina Hulu Energi, the upstream subsidiary of state energy holding company Pertamina.

Jakarta Post, Page-14, Thursday, Dec 6, 2018