Deep Sea Challenge Project

Minister of Energy and Mineral Resources Ignatius Jonan urged Chevron to immediately accelerate deep-sea oil and gas projects in the Indonesia Deepwater Development. However, the project's acceleration process still seems to be having some problems.

Chevron is rumored to be submitting a proposal for development plan or development of Indonesia Deepwater Development (IDD) on June 28, 2018. However, the company from the United States (US) is actually making the Ministry of Energy and Mineral Resources (ESDM) surprised when the proposal .

This is because Chevron changed the value of the project budget three times in 24 hours. The new value proposed also has a margin of more than billions of US dollars compared with the results of discussions with the ESDM Ministry in Houston, USA, in mid-May 2018. At a meeting with the EMR Ministry in the Negen Uncle Sam, Chevron will cut the project cost of approximately US $ 6 billion from total project cost plan worth US $ 12.8 billion.

EMR Deputy Minister of Energy and Mineral Resources Arcandra Tahar said Chevron's IDD proposal had already entered SKK Migas on Friday (29/6). Currently, the ESDM Ministry is evaluating POD's proposal from Chevron.

"We will evaluate the cost of the IDD development project. The government will accept Chevron's proposal if the project budget makes sense, he said, Friday (29/6).

The Ministry focuses on the cost of the proposed project because the scheme of deep sea project contracts still uses cost recovery. That means development costs will be borne by the government.

"Because IDD uses cost recovery contract scheme. If not maintained can be broken later, "said Arcandra.

In fact, Senior Vice President of Covemment and Public Affairs Policies of Chevron Indonesia Yanto Sianipar said that the study and the concept of feasibility of engineering and design work or pre-Front End Engineering and Design (pre-FEED) on IDD project have been operating well. It has been pre-FEED since December 2017.

 "Thursday has also optimized the concept of development and simplification of the design basis, making it an indication of significant reductions in development and operational costs," he said.

IDD Gendalo and Gehem Project

Meanwhile, the realization of cost recovery until May 2018 worth US $ 4.7 billion. The realization has reached 47% of the state budget target of US $ 10.1 billion. In data from SKK Migas, IDD Gendalo and Gehem Project managed by Chevron Makassar Ltd. will start on stream in 2024 and 2025. IDD Gendalo is estimated to have production of about 500 million cubic feet per day, while Gehem has a production of 420 million cubic feet per day.

CONTRACT SCREENS

Meanwhile, the IDD project has another problem which is the scheme of contract of work area connected to the project. On this issue, Chevron will dispatch a termination work contract term connected to the IDD simultaneously. Chevron IDD Project has slice area in 4 working areas namely, Makassar Strait, Ganal, Rapak, and Muara Mangrove. Well, the termination period of three of the four blocks is different.

Ganal and Rapak Working Area

Makassar Strait for example will terminate 2020, while Ganal and Rapak will terminate in 2027 and 2028. It affects the contract scheme used. Because the new contract on the termination work area should use a gross split scheme. Meaning, Makassar Strait will be terminated in 2020 and directly use gross split. 

     In fact, other IDD slices such as those in Ganal and Rampak still use cost recovery until termination 2027-2028. Arcandra admitted, the problem of three oil and gas working areas that overshadow the I.DD project is very complicated.

"It was very complicated. Later, Block Rampak and Ganal in 2027 and 2028 already using gross split "he said.

Chevron is said to be proposing a renewal of contract termination of three oil and gas regions at once. Arcandra said the US company wanted to propose at once. It was also doing an evaluation and proposal of the three work areas that have entered on Friday (29/6). 

    Chevron Yanto Sianipar Senior Vice President of Goverment and Public Affairs's Policy to Bisnis, Sunday (1/7) confirmed the company has submitted a revision of PoD.

"The revised project, which significantly reduces capital and operating costs, consists of developing Gehem, Gendalo, Gandang and Maha fields."

IN INDONESIA

Proyek Laut Dalam Penuh Tantangan

Menteri Energi dan Sumber Daya Mineral Ignasius Jonan mendesak Chevron untuk segera mempercepat proyek migas laut dalam atau Indonesia Deepwater Development. Namun, proses percepatan proyek itu tampaknya masih terhambat beberapa masalah.

Chevron dikabarkan akan mengajukan proposal rencana pengembangan atau plan of development (POD) Indonesia Deepwater Development (IDD) pada 28 Juni 2018. Namun, perusahaan dari Amerika Serikat (AS) itu malah membuat Kementerian Energi Sumber Daya Mineral (ESDM) terkejut saat pengajuan proposal tersebut.

lni karena Chevron mengubah nilai anggaran proyek sebanyak tiga kali dalam 24 jam. Nilai baru yang diajukan pun memiliki selisih lebih besar miliaran dolar AS dibandingkan dengan hasil diskusi bersama Kementerian ESDM di Houston, AS, pada pertengahan Mei 2018. Pada pertemuan dengan Kementerian ESDM di Negen Paman Sam, Chevron akan memotong biaya proyek sekitar US$ 6 miliar dari total rencana biaya proyek senilai US$ 12,8 miliar. 

Wakil Menteri ESDM Arcandra Tahar mengatakan proposal IDD Chevron pun sudah masuk ke SKK Migas pada Jumat (29/6). Saat ini, Kementerian ESDM sedang mengevaluasi proposal POD dari Chevron tersebut. 

“Kami akan mengevaluasi biaya proyek pengembangan IDD. Pemerintah akan menerima proposal Chevron jika anggaran proyek masuk akal, ujarnya.

Kementerian fokus pada biaya proyek yang diajukan karena skema kontrak proyek laut dalam itu masih menggunakan cost recovery. Hal itu berarti biaya pengembangan akan ditanggung oleh pemerintah. 

“Karena IDD menggunakan skema kontrak cost recovery. Kalau tidak dijaga bisa jebol nanti,” ujar Arcandra.

Padahal, Senior Vice President Policy Covemment and Public Affairs Chevron Indonesia Yanto Sianipar sempat mengatakan studi dan konsep kelayakan pekerjaan keteknikan dan desain atau pre-Front End Engineering and Design (pre-FEED) pada proyek IDD telah beroperasi dengan baik. Pihaknya telah melakukan pre-FEED sejak Desember 2017.

 "Kamis pun telah melakukan optimalisasi konsep pengembangan dan penyederhanaan basis rancangan. Hal itu membuat ada indikasi pengurangan biaya pengembangan dan operasional yang signifikan,” ujarnya. 

Adapun, realisasi cost recovery sampai Mei 2018 senilai US$ 4,7 miliar. Realisasi itu telah mencapai 47% dari target APBN senilai US$ 10,1 miliar. Dalam data SKK Migas, Proyek IDD Gendalo dan Gehem yang dikelola oleh Chevron Makassar Ltd. akan mulai on stream pada 2024 dan 2025. IDD Gendalo diperkirakan memiliki produksi sekitar 500 juta kaki kubik per hari, sedangkan Gehem memiliki produksi sebesar 420 juta kaki kubik per hari.

SKEMA KONTRAK

Sementara itu, proyek IDD memiliki masalah lain yakni persoalan skema kontrak wilayah kerja yang terhubung dengan proyek tersebut. Pada permasalahan ini, Chevron akan mengutus kontrak wilayah kerja terminasi yang terhubung dengan IDD secara bersamaan. Proyek IDD Chevron memiliki irisan area di 4 wilayah kerja yakni, Makassar Strait, Ganal, Rapak, dan Muara Bakau. Nah, masa terminasi tiga dari empat blok itu berbeda-beda. 

Makassar Strait misalnya akan terminasi 2020, sedangkan Ganal dan Rapak akan terminasi pada 2027 dan 2028. Hal itu berdampak kepada skema kontrak yang digunakan. Pasalnya, kontrak baru pada wilayah kerja terminasi harus menggunakan skema gross split. 

    Berarti, Makassar Strait yang akan terminasi pada 2020 dan langsung menggunakan gross split. Padahal, irisan Iapangan IDD lainnya seperti, yang berada di Ganal dan Rampak masih menggunakan cost recovery sampai masa terminasi 2027-2028. Arcandra mengakui, persoalan tiga wilayah kerja migas yang menaungi proyek I.DD itu sangat rumit. 

“Itu memang sangat complicated. Nanti, Blok Rampak dan Ganal pada 2027 dan 2028 sudah menggunakan gross split” ujarnya.

Chevron disebut akan mengajukan proposal perpanjangan kontrak terminasi tiga wilayah migas sekaligus. Arcandra mengatakan perusahaan dari AS itu ingin mengajukan sekaligus. Pihaknya pun sedang melakukan evaluasi dan proposal ketiga wilayah kerja itu sudah masuk pada Jumat (29/6). Senior Vice President Policy Goverment and Public Affairs Chevron Yanto Sianipar kepada Bisnis, Minggu (1/7) membenarkan perusahaan telah mengajukan revisi PoD.

“Revisi proyek yang secara signifikan berhasil mengurangi biaya modal dan operasi, terdiri atas pengembangan lapangan Gehem, Gendalo, Gandang, dan Maha.”

Bisnis Indonesia, Page-30, Monday, July 2, 2018

IDD deal slips again over cost issues

Four years have gone by without any deal inked between the government and United States-based oil and gas giant Chevron on the second phase of construction of the Indonesia Deepwater Development (IDD) because of changes in cost calculations.

    The Finalization of the deal will likely take longer as the government only received the final proposal on Friday, a day later than the deadline, said Deputy Energy and Mineral Resources Minister Acandra Tahar.

“Once we receive it [the proposal], we need time to evaluate it before we decide on whether to agree or decline,” he told the press on Friday, without disclosing the date for the governments approval.

The IDD, which is one of the country’s biggest gas field projects, is in the second phase of operation, which is at the Gendalo and Gehem hubs in the Makassar Strait.

Gendalo and Gehem hubs

The project in Gendalo-Gehem hub is expected to produce up to 1.12 million standard cubic feet per day (mmscfd) of gas and 47,000 barrels condensate per day (bcpd). Meanwhile, the first phase, which is located in Bangka hub, also in the Makassar Strait, has produced 85 mmscfd of gas and 2,400 bcpd of condensate, data from the Upstream Oil and Gas Regulatory Task Force (SKK Migas) shows. By 2023, the Bangka, Gendalo and Gehem hubs are targeted to produce 1,230 mmscfd of gas and 50,750 bcpd.

Arcandra said in 2014, Chevron told the government that the construction cost for the IDD project would reach US$12.8 billion. On Tuesday, it was reported the project cost would decline to around $6 billion, or roughly half of the initial estimate. However, two days later, Arcandra disappointedly told the press that the company had altered the project cost three times within 24 hours. 

“The government will continue to strive for reasonable costs as it has been changed [within 24 hours] Not to mention that the project is using the cost recovery scheme,” he said, referring to a scheme deemed disadvantageous tothe state as it has to bear the project costs, When asked for a confirmation on Thursday night, Chevron Indonesia neither denied nor confirmed that it had gone back and forth in submitting its cost calculation.

Its spokesperson Danya DeWanti said her company was “prohibited to talk publicly on any ongoing discussion with the government? The cost for the second phase of the IDD project is included in a proposal called the plan of development (POD).

Aside from costs, Arcandra said another possible hassle in the agreement that would slow down finalization lied in the production sharing contract scheme. 

“They [Chevron] hope to combine the contract extension for the Makassar Strait, Rapak and Ganal blocks,” he said, adding that the Makassar Strait’s contract would expire in 2020, which is shorter than the deadlines for the Rapak and Ganal blocks.

the Rapak and Ganal blocks East Kalimantan

Arcandra said the Rapak and Ganal blocks would expire in 2027 and 2028 respectively thus remained under the cost recovery scheme. The contract for the Makassar Strait Block, meanwhile, is under discussion regarding an extension.

The block will use the gross split scheme to follow new regulations that were implemented in early 2017.Separately, SKK Migas communications head Wisnu Prabawa Taher told The Jakarta Post that Chevron had submitted its proposal on Rapak, Ganal and Makassar Strait block contracts on Friday.

“In short, Chevron’s proposal revises the IDD’s PoD, which includes the Makassar Strait, Rapak and Ganal blocks,” he said on Friday

 Jakarta Post, Page-13, Saturday, June 30, 2018

IDD Investment Changes

The Ministry of Energy and Mineral Resources (ESDM) stated that Chevron has revised several times the investment value in Chevron's IDD development plan in Gendalo-Gehem Field.

IDD development Gendalo-Gehem Field.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that within 1 X 24 hours Chevron has proposed different figures for the cost of developing deepwater oil and gas projects or Indonesia Deepwater Development (IDD). Whereas it should, the government asked Chevron to report the official cuts IDD project development costs on Thursday (28/6). However, the last seconds of the investment figure is changing.

"Chevron give a number that varies within 24 hours to three times change" explained Arcandra when met at the Office of the Ministry of Energy and Mineral Resources.

He said Chevron had previously invested $ 12.8 billion, then slashed about $ 6 billion from its original plan. Unfortunately, Arcandra is reluctant to reveal the final figures of the change. To be sure he said the government would struggle to find the right and reasonable numbers because it uses cost recovery.

"If the government is not strong, cost recovery is destroyed," he said.

As is known, Chevron in the development proposal IDD Phase II is asking for investment credit or compensation rights to the government with a very high percentage of 240%. Whereas the maximum investment credit requested by KKKS is only 100%. Arcandra said. Investment credit demand is not in contract.

IN INDONESIA

Investasi IDD Berubah-ubah 

Kementerian Energi dan Sumber Daya Mineral (ESDM) menyatakan bahwa Chevron sudah beberapa kali merevisi nilai investasi dalam rencana pengembangan IDD Chevron di Lapangan Gendalo-Gehem.

Wakil Menteri ESDM Arcandra Tahar menyebut, dalam waktu 1 X 24 jam, Chevron tiga kali mengajukan angka yang berbeda-beda untuk biaya pengembangan proyek migas laut dalam atau Indonesia Deepwater Development (IDD). Padahal seharusnya, pemerintah meminta Chevron melaporkan resmi pemangkasan biaya pengembangan proyek IDD itu pada Kamis (28/6). Namun, detik-detik terakhir angka investasi itu berubah-ubah.

"Chevron berikan angka yang berubah-ubah dalam hitungan 24 jam sampai tiga kali perubahan" terang Arcandra saat ditemui di Kantor Kementerian ESDM.

Dia mengatakan Chevron sebelumnya memperikarakan investasi mencapai US$ 12,8 miliar, kemudian memangkasnya sekitar US$ 6 miliar dari rencana awal. Namun sayangnya, Arcandra enggan mengungkapkan angka akhir perubahan itu. Yang pasti dia mengatakan, pemerintah akan berjuang mencari angka benar dan masuk akal karena ini menggunakan cost recovery. 

"Kalau pemerintah tidak kuat, cost recovery hancur,” katanya.

Seperti diketahui, Chevron dalam proposal pengembangan IDD Tahap II ini meminta investment credit atau hak ganti rugi ke pemerintah dengan prosentase yang sangat tinggi yakni sebesar 240%. Padahal maksimal investment credit yang diminta KKKS itu hanya 100%. Kata Arcandra. Permintaan investment credit tidak dalam kontrak.

Kontan, Page-14, Saturday, June 30, 2018

Chevron Asked to Speed ​​Up IDD Prov

The Government of Indonesia urges Chevron Corporation to accelerate Indonesia deepwater development (IDD) projects in the Makassar Strait. After the agreement on the IDD project is completed, the Government of Indonesia and the oil and gas giant from the United States will discuss the fate of the Rokan Block contract in Riau.

Chevron becomes operator of the Rokan Block whose contract will be completed by 2021. However, Chevron has proposed a contract extension to the government. Energy and Mineral Resources Minister Ignatius Jonan met with Chairman & CEO of Chevron Michael K. Wirth to urge the settlement of deeply dormant deepwater oil projects.

Nicke Widyawati

In fact, Jonan invited a number of officials such as Director General of Oil and Gas Ministry of Energy and Mineral Resources Djoko Siswanto and Deputy Head of SKK Migas Sukandar, Managing Director of PT Pertamina (Persero) Nicke Widyawati and oil and gas businessman Arifin Panigoro.

Arifin Panigoro

Pertamina is Chevron's minority partner while winning the IDD tender at Gendalo-Gehem Field in 2009 with Italian oil and gas company Eni. 

   Arifin Panigoro, through Medco International Tbk. once took over Chevron's oil and gas blocks. The meeting in Chevron, Washington's office took place on Wednesday (27/6) or Thursday morning at Jakarta time, was closed. Chevron also attended Yanto Sianipar, Senior Vice President of Government Policy and Public Affairs of Chevron Indonesia Yanto Sianipar.

Jonan initially held bilateral talks with Chevron. Next he invited Arifin and Nicke to talk to Chevron through the business mechanism. Jonan was then willing to deliver the results of the meeting in flight back to Jakarta Thursday (28/6) afternoon or Friday morning west Indonesia time.

"In essence, I urge Chevron to work on this project before the deadline ends in 2020. After the IDD is complete, after that we can talk about the extension of Rokan Block management," said Jonan.

Rokan Block is Chevron's largest oil and gas project with a production range of 200,000 barrels per day and ends its contract period in 2021. The government has the option to terminate the project or extend Chevron's contract. According to Jonan, the IDD Project in Makassar Strait has been hanging too long.

the IDD Project in Makassar Strait

He hopes that Chevron will soon be working on this oil and gas block. Until the meeting ends, the government has not received a detailed proposal of development (plan of development / PoD) IDD.

CUT COST

Chevron has so far sought to slash development and operational costs of the Gendalo-Gehem IDD project by approximately US $ 6 billion from an initial proposal of US $ 12.8 billion. However, the government has not received a detailed proposal. In data from SKK Migas, IDD Gendalo and Gehem Project managed by Chevron Makassar Ltd. will start operating in 2024 and 2025 respectively. IDD Gendalo is estimated to have natural gas production of approximately 500 million cubic feet per day (MMscfd), while Gehem has a production of 420 MMscfd.

 IDD Gendalo and Gehem Project 

However, the IDD PoD process has not been completed yet. His article, Chevron, which manages the deep-sea project, replaces POD costs three times in 24 hours with a value of up to billions of dollars to the Ministry of Energy and Mineral Resources. EMR Deputy Minister of Energy and Mineral Resources Arcandra Tahar said the government will seek to obtain reasonable project costs.

"You see, it uses a cost recovery scheme so that the country will bear the cost. If not changed, cost recovery can not be controlled, "he said.

Until May 2018, the realization of cost recovery is valued at US $ 4.7 billion or 47 percent of the target of State Budget (APBN) 2018 of US $ 10.1 billion. Earlier, Senior Vice President of Government Policy and Public Affairs of Chevron Indonesia Yanto Sianipar said that the study and concept of feasibility of engineering and design work or pre-Front End Engineering and Design (pre-FEED) on IDD project has started well. It has been pre-FEED since December 2017.

"We have also optimized the concept of development and simplification of the design basis. It makes no indication of cost reduction development and operational significance, "he said.

Arcandra said Chevron would submit an IDD proposal without special conditions.

"The IDD extension time depends on the Chevron given POD, interesting or not," he said.

The Ministry of Energy and Mineral Resources is busy to cut the cost of developing oil and gas fields more efficiently. This is to make the cost recovery rate does not rise too high.

IN INDONESIA

Chevron Diminta Percepat Provek IDD

Pemerintah Indonesia mendesak Chevron Corporation untuk mempercepat proyek minyak dan gas bumi laut dalam (Indonesia deepwater development/ IDD) di Selat Makassar. Setelah kesepakatan tentang proyek IDD itu selesai, Pemerintah Indonesia dan raksasa migas dari Amerika Serikat itu akan membahas soal nasib kontrak Blok Rokan di Riau. 

Chevron menjadi operator Blok Rokan yang kontraknya akan selesai pada 2021. Namun, Chevron telah mengajukan perpanjangan kontrak kepada pemerintah. Menteri Energi Sumber Daya Mineral (ELSDM) Ignasius Jonan menemui Chairman & CEO Chevron Michael K. Wirth untuk mendesak penyelesaian proyek migas laut dalam yang sudah terbengkalai lama.

Bahkan, Jonan mengajak sejumlah pejabat seperti Dirjen Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto dan Wakil Kepala SKK Migas Sukandar, Pelaksana tugas Dirut PT Pertamina (Persero) Nicke Widyawati dan pengusaha migas Arifin Panigoro. 

Pertamina adalah mitra minoritas Chevron saat memenangkan tender IDD di Lapangan Gendalo-Gehem pada 2009 bersama perusahaan migas dari Italia - Eni. Arifin Panigoro, melalui Medco Energy Intemasional Tbk. pernah mengambil alih blok migas milik Chevron. Pertemuan di kantor Chevron, Washington tersebut terjadi pada Rabu (27/6) atau Kamis dinihari waktu Jakarta, berlangsung tertutup. Dari pihak Chevron hadir juga Yanto Sianipar, Senior Vice President Policy Government and Public Affairs Chevron Indonesia Yanto Sianipar.

Semula Jonan melakukan pembicaraan bilateral dengan pihak Chevron. Selanjutnya dia mengundang Arifin dan Nicke untuk berbicara dengan Chevron melalui mekanisme bisnis. Jonan setelah itu bersedia memberikankan hasil pertemuan dalam penerbangan kembali ke Jakarta Kamis (28/6) siang atau Jumat dinihari waktu Indonesia barat.

“Intinya, saya mendesak Chevron agar segera mengerjakan proyek ini sebelum batas waktu berakhir pada 2020. Setelah IDD selesai, setelah itu kita bisa bicara perpanjangan pengelolaan Blok Rokan,” tutur Jonan.

Blok Rokan merupakan proyek migas terbesar yang di kerjakan Chevron dengan produksi kisaran 200.000 barel per hari dan berakhir masa kontraknya pada 2021. Pemerintah punya opsi untuk terminasi proyek ini atau kembali memperpanjang kontrak Chevron. Menurut Jonan, Proyek IDD di Selat Makassar sudah terlalu lama menggantung.

Dia berharap agar Chevron secepatnya bergerak mengerjakan blok migas ini. Hingga pertemuan berakhir, pemerintah belum mendapatkan proposal detail rencana pengembangan (plan of development/PoD) IDD.

PANGKAS BIAYA

Chevron sejauh ini berupaya memangkas biaya pengembangan dan operasional proyek IDD Gendalo-Gehem sekitar US$ 6 miliar dari proposal awal US$ 12,8 miliar. Namun, pemerintah belum mendapatkan proposal detail. Dalam data SKK Migas, Proyek IDD Gendalo dan Gehem yang dikelola oleh Chevron Makassar Ltd. bakal mulai beroperasi masing-masing pada 2024 dan 2025. IDD Gendalo diperkirakan memiliki produksi gas bumi sekitar 500 juta kaki kubik per hari (MMscfd), sedangkan Gehem memiliki produksi sebesar 420 MMscfd. 

Namun, proses PoD IDD belum selesai. Pasalya, Chevron, yang mengelola proyek laut dalam itu mengganti biaya POD sebanyak tiga kali dalam 24 jam dengan selisih nilai hingga miliaran dolar AS kepada Kementerian ESDM. Wakil Menteri ESDM Arcandra Tahar mengatakan, pemerintah akan berupaya untuk mendapatkan biaya proyek yang wajar.

“Soalnya, ini menggunakan skema cost recovery [pengembalian biaya produksi migas dari APBN] sehingga negara yang akan menanggung biaya tersebut. Kalau tidak berubah, cost recovery bisa tidak terkendali,” ujarnya. 

Sampai Mei 2018, realisasi cost recovery senilai US$4,7 miliar atau 47% dari target APBN 2018 sebesar US$ 10,1 miliar. Sebelumnya, Senior Vice President Policy Government and Public Affairs Chevron Indonesia Yanto Sianipar mengatakan, studi dan konsep kelayakan pekerjaan keteknikan dan desain atau pre-Front End Engineering and Design (pre-FEED) pada proyek IDD telah dimulai dengan baik. Pihaknya telah melakukan pre-FEED sejak Desember 2017.

“Kami pun telah melakukan optimalisasi konsep pengembangan dan penyederhanaan basis rancangan. Hal itu membuat ada indikasi pengurangan biaya pengembangan dan operasional yang signifikan," ujarnya.

Arcandra menyebutkan Chevron akan menyerahkan proposal IDD tanpa syarat-syarat khusus.

“Waktu perpanjangan IDD tergantung POD yang diberikan Chevron, menarik atau tidak,” sebutnya.

Kementerian ESDM pun sedang sibuk untuk bisa memangkas biaya pengembangan lapangan migas lebih efisien lagi. Hal itu demi membuat tingkat cost recovery tidak naik terlalu tinggi. 

Bisnis Indonesia, Page-10, Saturday, June 30, 2018

Gas Supply and Production Increases

Increased gas needs and production make exploration of new gas blocks or revitalize old blocks into a necessity.

The IEA PREDICTION is not wrong. However, the prediction was made before the discovery of gas in the Masela Block, Maluku and Makassar Straits, "said the Minister of Energy and Mineral Resources Ignatius Jonan when he became one of the speakers at 27th World Gas Conference in Washington DC, USA, Wednesday (27/6).

the Masela Block

Jonan said it answered the question of moderator Nobuo Tanaka. Tanaka said based on predicted International Energy Agency (IEA), in 2040, Indonesia became a gas importer.

"Do you agree with that prediction?" Tanaka asked.

For information, Indonesia will get additional gas capacity supply from Makassar Strait of 1,000 mmscfd (million standard cubic feet per day) and from Masela 1,200 mmscfd.

That does not include gas production in Rokan, Riau. Operators in the Masela Block are Inpex and Shell, while the operator in the Makkasar Strait is Chevron. Increased gas demand is partly due to the energy mix program. In his presentation, Jonan revealed that in 2025 the use of gas is targeted to reach 22% and in 2050 by 24%.

Inpex Corporation

The increased need for exploration of new gas blocks or revitalizing old blocks becomes a necessity. Therefore, at the end of his presentation, Jonan hopes the new oil and gas policy will attract more investors. Before becoming a speaker at the World Gas Forum. Jonan used the opportunity to explain the government's policy on oil and gas, among others, to the US Chamber of Commerce and the ASEAN-US Business Council.

"The government treats the equivalent of foreign investors and domestic investors," said Jonan.

Oil and gas investment

Charles Freeman, Senior Vice President for Asia at the US Chamber of Commerce and Industry, asked about the sustainability of investment in the oil and gas sector related to the 2019 election. The same applies to Elizabeth Dugan from the US-ASEAN Business Council. Jonan replied the government guarantee the political year will not hamper investment in the oil and gas sector.

"Therefore, investment in the oil and gas sector is a long-term investment," said Jonan.

Pertamina CEO Nicke Widyawati

One who accompanied the visit of the Minister of Energy and Mineral Resources Ignasius Jonan is Plut Pertamina CEO Nicke Widyawati. After listening to Jonan's exposure, Nicke explained that the biggest gas demand is for power plants and industries. In line with Jonan, Nicke said the increase in production becomes imperative.

"We certainly have to increase production. First by increasing production capacity and second building infrastructure, "She said.

Nicke asserted Pertamina's role in increasing gas production is very important.

"From start up, our gas production will increase as there are several working areas given to Pertamina. This will certainly increase our supply or upstream production capacity. Second, the infrastructure, namely gas pipeline and LNG, that must be built, "said Nicke.

Media Indonesia, Page-13, Friday, June 29, 2018

PT Radians Utama eyeing Mahakam block contract

PT Radiant Utama lnterinsco Tbk will enter the new and renewable energy generation business.

The declining oil price since 2015 to 2016 triggered PT Radiant Utama Interinsco Tbk seeking new contracts. Not only in the oil and gas sector, issuers coded RUIS shares in the Indonesia Stock Exchange also targeted jobs in other sub sectors such as power generation and renewable energy (EBT).

President Director of RUIS Sofwan Farisyi said it expands the business from the oil and gas sector to a company engaged in the energy sector. That way, the company hopes to get a contract also in renewable energy and renewable energy projects.

With this strategy, Sofwan targets to get a contract on hand of Rp 2.2 trillion until the end of the year. Currently RUIS - has booked on hand contract of Rp 2 Trillion, alias still remaining Rp 200 million. In order to achieve the target, RUIS is eyeing a major contract in the Mahakam Block Project which currently exists PT Pertamina Hulu Mahakam as operator. The new contract at Mahakam is a breath of fresh air for service companies like RUIS.

Total EP lndonesie which is a previous Mahakam Block contractor has lowered the investment in the block at the end of the contract. The reason, they do not get the certainty of contract extension from the government.

the Mahakam Block

But since the government decided Pertamina as the new operator of the Mahakam Block as of January 2018, the oil and gas services work in the Mahakam Block began to move again. Sofwan mentioned this year PT Pertamina Hulu Mahakam held 10 tender. The value reached Rp 1 trillion.

"We are targeting two to three contracts, the tender launching from July to August," he said in a public expose.

In addition to targeting contracts from the new tender in the Mahakam block this year, the company hopes to secure contract extension for the dredging vessels over the next three years in the Mahakam Block. Sofwan admitted that the contract extension of dredging ship contract with PT Pertamina Hulu Mahakam is almost complete.

"We were supposed to get a contract extension of the dredging, last Tuesday was the last negotiation," he said.

In addition to targeting projects in Mahakam, RUIS targets to get contract ship dredging in power projects owned by the State Electricity Company (PLN).

"We are trying to get a similar project at PLN power plant, we see that there is more sustain, electricity is needed," he said.

In addition to these two projects, PT Radiant Utama lnterinsco Tbk tries to target geothermal projects. One of them is a geothermal project in Sulawesi. However, RUIS's business development in geothermal projects is still constrained by low geothermal electricity tariffs. Though investing in geothermal projects requires large funds with a high enough risk level.

"The geothermal project in Sulawesi, but there are still obstacles in the rate of how much geothermal, geothermal investment is very expensive, there is a failure, but if successful will not end," he explained.

In addition to the new geothermal project, PT Radiant Utama Interinsco Tbk actually has a geothermal project that already operates, the Sorik Marapi Geothermal (SMGP) project. RUIS holds a 5% stake in the project.

The project is projected to produce geothermal 240 megawatts (MW). So far there have been five wells that have been drilled and confirmed there is a geothermal equivalent of 50 MW. He revealed, this year there are those who can enter the PLN system.

"Our target of delivery is 20 MW this year,". Currently it is conducting trials and has already generated about 2 MW of electricity. Electricity is given free to the public. In the near future there is the approval of PLN. "A total of 20 MW, it is expected to be implemented July-August," he added.

In addition to targeting to generate electricity this year, Sofwan also explained that his company targets to be able to get construction work in this Sorik Marapi geothermal project. The company's target work includes the construction of foundations, substations, and transmission of 20 kilovolts.

IN INDONESIA

PT. Radian Utama Mengincar Kontrak Blok Mahakam

PT Radiant Utama lnterinsco Tbk akan  masuk ke bisnis pembangkit energi baru dan terbarukan.

Harga minyak yang menurun sejak tahun 2015 hingga 2016 memicu PT Radiant Utama Interinsco Tbk berupaya mencari kontrak-kontrak baru. Tidak hanya di sektor migas, emiten berkode saham RUIS di Bursa Efek Indonesia tersebut juga mentarget pekerjaan di sub sektor lainnya seperti pembangkit listrik dan energi baru terbarukan (EBT).

Presiden Direktur RUIS Sofwan Farisyi menyatakan, pihaknya memperluas bisnis dari sektor minyak dan gas menjadi perusahaan yang bergerak di sektor energi. Dengan begitu, perseroan ini berharap bisa mendapat kontrak juga di proyek listrik dan energi baru terbarukan.

Dengan strategi tersebut, Sofwan menargetkan bisa mendapatkan kontrak on hand sebesar Rp 2,2 triliun hingga akhir tahun. Saat ini RUIS- sudah membukukan kontrak on hand sebesar Rp 2 Triliun, alias masih tersisa Rp 200 juta lagi. Agar mencapai target, RUIS sedang mengincar kontrak besar di Proyek Blok Mahakam yang saat ini ada PT Pertamina Hulu Mahakam sebagai operator. Kontrak baru di Mahakam ini menjadi angin segar bagi perusahaan jasa seperti RUIS.

Total EP lndonesie yang merupakan kontraktor Blok Mahakam sebelumnya telah menurunkan investasi di blok tersebut saat akhir kontrak. Penyebabnya, mereka tidak mendapatkan kepastian perpanjangan kontrak dari pemerintah.

Namun sejak pemerintah memutuskan Pertamina sebagai operator baru Blok Mahakam per Januari 2018, pekerjaan jasa migas di Blok Mahakam mulai bergerak kembali. Sofwan menyebut tahun ini PT Pertamina Hulu Mahakam mengadakan 10 tender. Nilainya mencapai Rp 1 triliun.

“Kami menargetkan mendapat dua sampai tiga kontrak, tendernya launch bulan Juli- Agustus," kata nya dalam paparan publik.

Selain mentarget kontrak dari tender baru di Blok Mahakam tahun ini, perseroan ini berharap bisa mendapatkan kepastian perpanjangan kontrak untuk kapal dredging selama tiga tahun ke depan di Blok Mahakam. Sofwan mengaku pembicaraan perpanjangan kontrak kapal dredging dengan PT Pertamina Hulu Mahakam hampir selesai. 

"Seharusnya kami mendapat perpanjangan kontrak dredging tersebut. Selasa kemarin adalah negosiasi terakhir," ungkapnya.

Selain mengincar proyek di Mahakam, RUIS menargetkan bisa mendapatkan kontrak kapal dredging di proyek-proyek pembangkit listrik milik Perusahaan Listrik Negara (PLN). 

"Kami coba mendapatkan proyek sejenis di pembangkit PLN. Kami melihat di sana lebih sustain, listrik terus dibutuhkan," katanya.

Selain kedua proyek tersebut, PT Radiant Utama lnterinsco Tbk mencoba mengincar proyek panas bumi. Salah satunya proyek panas bumi yang ada di Sulawesi. Namun pengembangan bisnis RUIS di proyek panas bumi masih terkendala tarif listrik panas bumi yang masih rendah. Padahal berinvestasi di proyek panas bumi membutuhkan dana besar dengan tingkat risiko yang cukup tinggi. 

"Proyek panas bumi di Sulawesi tersebut tapi masih ada hambatan di rate berapa geotermal. Investasi panas bumi sangat mahal, ada yang berhasil ada gagal. Tapi kalau berhasil tidak akan habis-habis," jelasnya.

Selain proyek baru di bidang panas bumi, PT Radiant Utama Interinsco Tbk sebenarnya juga telah memiliki proyek panas bumi yang telah beroperasi, yaitu proyek Sorik Marapi Geothermal (SMGP). RUIS memegang 5% saham di proyek tersebut.

Proyek ini diproyeksi bisa menghasilkan panas bumi 240 megawatt (MW). Sejauh ini sudah ada lima sumur yang dibor dan telah terkonfirmasi ada panas bumi yang setara 50 MW. Dia mengungkapkan, tahun ini ada yang bisa masuk ke sistem PLN. 

"Target kami delivery sebanyak 20 MW tahun ini,". Saat ini pihaknya sedang melakukan ujicoba dan dan sudah menghasilkan listrik sekitar 2 MW.

Listrik tersebut diberikan gratis kepada masyarakat. Dalam waktu dekat ada persetujuan PLN. " Sebanyak 20 MW itu, diperkirakan Juli-Agustus bisa terlaksana," tambahnya.

Selain menargetkan bisa menghasilkan listrik pada tahun ini, Sofwan juga memaparkan pihaknya menargetkan tetap bisa mendapatkan pekerjaan konstruksi di proyek panas bumi Sorik Marapi ini. Pekerjaan incaran perseroan ini di antaranya pembangunan pondasi, gardu induk, dan transmisi 20 kilovolt.

Kontan, Page-14, Friday, June 29, 2018

Waiting for the fate of Chevron & Pertamina in the Rokan Block

Upstream Director of PT Pertamina (Persero) once said that the assignment of oil and gas blocks to Pertamina is the authority of the government. If assigned to manage oil and gas blocks, Pertamina is ready to carry out the assignment. One of the oil and gas working areas that will expire in 2021 is the Rokan Block in Riau operated by PT Chevron Pacific Indonesia.

However, this government-owned company has not given up yet, options will be made to get into Indonesia's largest oil and gas block, albeit in a non-optimistic tone. The Ministry of Energy and Mineral Resources (ESDM) will establish the terms and conditions of the new Rokan Block contract in July 2018.

the Rokan Block Sumatra

The ESDM Ministry will award Rokan Block's new contract with a gross profit sharing scheme (gloss split). If Chevron is interested, it will be the benchmark for the new oil and gas contract scheme that will remain attractive to investors. Signal interest was wide open after the Ministry of Energy and Mineral had noted there are some parties who are interested in the Rokan Block, one of them Pertamina.

Pertamina as an Indonesian national oil and gas company was eager to hunt down the big block. If able to take Rokan, the parent of BUMN oil and gas can contribute close to 50% of total oil and gas production of Indonesia.

However, the plan is very difficult, especially if Pertamina wants to be the operator or the majority in Rokan. The reason, Chevron offers the full use of oil production technology (Enhanced Oil Recovery / EOR) in the Rokan Block. The application of EOR could increase oil and gas production in Rokan more significantly. In fact, the technology could increase Rokan's production from about 210,000 barrels per day (bpd) to 500,000 bpd. Deputy Minister of EMR Arcandra Tahar also said that full EOR technology has never been implemented on a large scale.

"So far the EOR has been fully utilized for pilot projects. So, can not be called if it will be able to reach that number, "he said.

Arcandra said the Rokan Block discussion will start in July 2018.

"Maybe the longest process can be completed in August 2018," he said.

He noted, Pertamina has also proposed to open the data room owned by Chevron.

"Later, will be seen Iebih pas given to Chevron or Pertamina. Surely, we will choose the most profitable country, "he said.

Arcandra is reluctant to respond further related opportunities Chevron and Pertamina will manage jointly.

"That will be the government's strategy. Just wait for the results, "he said.

On the other hand, Pertamina did not respond optimistically to the competition for the Rokan Block with one of the US oil and gas giants. Upstream Director of Pertamina Syamsu Alam said, if you look at the Minister of Energy and Mineral Resources Regulation no. 23/2018 on Management of Oil and Gas Working Areas that Will End the Contract of Work Samanya described operators exist also given the opportunity. The Company did not give an optimistic tone to capture the Rokan Block.

"The Rokan Block is terminated in 2021 and the written Ministerial Regulation also exists to continue," he said.

Although operators are given the opportunity, Pertamina as a national oil and gas company also has the opportunity to obtain management contract in Rokan. Syamsu said it was also communicating with Chevron. Like many expressions to Rome, the company notes that there are several options to get into the Rokan Block.

"All options are open, including as non-operators and have ownership."

Although Pertamina did not give an optimistic tone to get the Rokan Block, the government-owned company is currently evaluating the block's data.

"We are evaluating the data already requested to SKK Migas. The data will be used to make a proposal for the Rokan Block to the ESDM Ministry. "

Currently, Pertamina notes the contribution of oil and gas production to national production continues to increase. In 2018, Pertamina's oil and gas production contribution is estimated to rise 55.54 percent to 774.048 barrels of oil equivalent per day compared to 2017. This contributes to Pertamina's 36 percent oil production contribution to national production.

The state-owned company estimates that its contribution to national production could rise by 39% to 2020. Well, if Pertamina can Block Rokan by 2021 it is not impossible to approach 50%.

IN INDONESIA

Menunggu Nasib Chevron & Pertamina di Blok Rokan

Direktur Hulu PT Pertamina (Persero) pernah menyampaikan bahwa penugasan blok minyak dan gas bumi kepada Pertamina merupakan kewenangan pemerintah. Jika ditugaskan untuk mengelola blok migas, Pertamina siap menjalankan penugasan itu. Salah satu wilayah kerja migas yang akan habis kontrak pada 2021 adalah Blok Rokan di Riau yang dioperasikan oleh PT Chevron Pacific Indonesia.

Namun, perusahaan milik pemerintah ini belum menyerah, berbagai opsi akan dilakukan untuk bisa masuk ke blok migas terbesar Indonesia itu, walaupun dengan nada yang tidak optimistis. Kementerian Energi dan Sumber Daya Mineral (ESDM) akan menetapkan syarat dan ketentuan kontrak baru Blok Rokan pada Juli 2018.

Kementerian ESDM akan memberikan kontrak baru Blok Rokan dengan skema bagi hasil kotor (gloss split). Jika Chevron berminat akan menjadi tolak ukur skema kontrak baru pengelolaan migas itu tetap menarik bagi investor. Sinyal ketertarikan itu pun terbuka lebar setelah Kementerian ESDM sempat mencatat ada beberapa pihak yang tertarik dengan Blok Rokan, salah satunya Pertamina.

Pertamina sebagai perusahaan migas nasional Indonesia pun bersemangat memburu blok besar tersebut. Jika mampu mengambilalih Rokan, induk usaha BUMN migas itu bisa berkontribusi mendekati 50% dari total produksi migas Indonesia.

Namun, rencana itu sangat sulit, terutama bila Pertamina ingin menjadi operator maupun mayoritas di Rokan. Pasalnya, Chevron menawarkan penggunaan teknologi produksi minyak lanjutan (Enhanced Oil Recovery/EOR) secara penuh di Blok Rokan. Pengaplikasian EOR itu bisa meningkatkan produksi migas di Rokan lebih signifikan. Bahkan, teknologi itu dapat meningkatkan produksi Rokan dari sekitar 210.000 barel per hari (bph) menjadi 500.000 bph. Wakil Menteri ESDM Arcandra Tahar pun mengatakan, teknologi EOR secara penuh belum pernah di implementasikan dalam skala besar.

“Sejauh ini EOR secara penuh hanyadigunakan untuk proyek percontohan. Jadi, belum bisa disebut kalau pasti akan bisa mencapai angka tersebut,” ujarnya.

Arcandra menyebutkan, pembahasan Blok Rokan akan mulai pada Juli 2018. 

“Mungkin paling lama prosesnya bisa selesai pada Agustus 2018,” ujarnya.

Dia mencatat, Pertamina juga sudah mengajukan membuka data room yang dimiliki Chevron.

“Nanti, akan dilihat Iebih pas diberikan kepada Chevron atau Pertamina. Pastinya, kami akan memilih yang paling menguntungkan negara," ujarnya.

Arcandra enggan merespons lebih jauh terkait peluang Chevron dan Pertamina akan mengelola secara bersama-sama. 

“Itu nanti strategi pemerintah. Tunggu saja hasilnya," ujarnya.

Di sisi lain, Pertamina pun tidak merespons secara optimistis terkait dengan persaingan memperebutkan Blok Rokan dengan salah satu raksasa migas AS tersebut. Direktur Hulu Pertamina Syamsu Alam mengatakan, jika melihat Peraturan Menteri ESDM No. 23/2018 tentang Pengelolaan Wilayah Kerja Migas yang Akan Berakhir Kontrak Kerja Samanya dijelaskan operator eksis juga diberikan kesempatan. Perseroan pun tidak memberikan nada optimistis untuk bisa merebut Blok Rokan.

“ Blok Rokan habis kontrak juga pada 2021 dan dalam Peraturan Menteri tertulis eksis pun berkesempatan untuk melanjutkan,” ujarnya.

Walaupun operator eksis diberikan kesempatan, Pertamina selaku perusahaan migas nasional juga memiliki peluang untuk mendapatkan kontrak pengelolaan di Rokan. Syamsu mengatakan, pihaknya pun sedang berkomunikasi dengan Chevron. Seperti ungkapan banyak jalan menuju Roma, perseroan mencatat ada beberapa opsi agar bisa masuk ke Blok Rokan tersebut. 

“Semua opsi terbuka, termasuk sebagai non-operator dan memiliki kepemilikan.”

Kendati Pertamina tidak memberikan nada optimistis untuk bisa mendapatkan Blok Rokan, tetapi perusahaan milik pemerintah itu sedang mengevaluasi data blok tersebut.

“Kami sedang evaluasi dari data yang sudah diminta kepada SKK Migas. Data itu akan digunakan untuk membuat proposal untuk Blok Rokan ke Kementerian ESDM.”

Saat ini, Pertamina mencatat kontribusi produksi migas kepada produksi nasional terus meningkat. Pada 2018, kontribusi produksi migas Pertamina diperkirakan naik 55,54% menjadi 774,048 barel setara minyak per hari dibandingkan dengan 2017. Hal itu membuat kontribusi produksi migas Pertamina sebesar 36% terhadap produksi nasional.

Perusahaan miliknegara ini memperkirakan bahwa kontribusi terhadap produksi nasional bisa naik hingga 39% sampai 2020. Nah, kalau Pertamina dapat Blok Rokan pada tahun 2021 bukan tidak mungkin bisa mendekati 50%.

Bisnis Indonesia, Page-26, Friday, June 29, 2018