Inpex completed the Pre-FEED Masela Block

Inpex Corporation has included the concept documents for the pre-front end engineering design (Pre-FEED) development of the Abadi Field, the Masela Block to the government. Referring to the 2018-2027 Indonesia Gas Balance, the Masela Block is targeted to start operating in 2027.

"The Masela project is now pre-FEED," said Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar in Jakarta. In this Pre-FEED he said there would be a new investment value from the Masela Block Project. Unfortunately, Arcandra is reluctant to specify how much the total project investment refers to Pre-FEED.

Originally, this Pre-FEED will be evaluated by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).

"After that it will be handed over to us," he added.

Once approved, then Inpex can work on a new plan of development (POD) for the Masela Block Project. Previously, in its official statement, Inpex explained that Pre-FEED was an important step to begin the development of the Eternal Field Project.

the Masela Block Project

Furthermore, Inpex will compile a POD revision referring to the Pre-FEED results and discussions with the Indonesian side so that the project becomes economically efficient and competitive.

"After the revision of the POD is approved by the government, various evaluations including detailed design (front end engineering design / FEED) will be done so that it is achieved "final investment decision (FID)," said the official statement.

As is known, initially there were two options for the liquefied natural gas / LNG plant capacity in the Masela Block, depending on the domestic gas needs. The two options are refineries with a capacity of 9.5 million tons per year (million tons per annum / MTPA) plus 150 million cubic feet per day (million standard cubic feet per day / mmscfd) and 7.5 MTPA plus 474 mmscfd.

Pre-FEED is done to determine the most appropriate option. Pre-FEED is done with one production capacity option and one island. This was in accordance with the decision after the ESDM Minister's visit to Japan on May 16, 2017. As for the warrant, it was stated that the LNG plant capacity was set at 9.5 million ton per year and pipeline gas production of 150 mmscfd. The pre-FEED covers offshore to land, offshore facilities and LNG refineries, as well as refinery location.

To guarantee the continuation of the project, the government will provide an extension of a production sharing contract (PSC) for Inpex Corporation in the Masela Block for 27 years. So the Masela Block contract will expire in 2055, instead of in 2028 like the initial contract. The decision was one of the results of a discussion between the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan and CEO of Inpex Corporation Toshiaki Kitamura in October last year.

IN INDONESIAN

Inpex Rampungkan Pre-FEED Blok Masela

    Inpex Corporation telah memasukkan dokumen konsep kelayakan keteknikan dan desain (pre front end engineering design/ Pre-FEED) pengembangan Lapangan Abadi, Blok Masela ke pemerintah. Mengacu Neraca Gas Bumi Indonesia 2018-2027, Blok Masela ditargetkan mulai beroperasi pada 2027.

“Proyek Masela sekarang sudah selesai Pre-FEED,” kata Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar di Jakarta. Dalam Pre-FEED ini dikatakannya akan ada nilai investasi baru dari Proyek Blok Masela. Sayangnya, Arcandra enggan merinci berapa total investasi proyek mengacu Pre-FEED.

Sedianya, Pre-FEED ini akan dievaluasi oleh Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas). 

“Setelah itu akan diserahkan kepada kami,” tambahnya. 

Setelah disetujui, selanjutnya Inpex dapat mengerjakan rencana pengembangan (plan of development/ POD) yang baru untuk Proyek Blok Masela.

   Sebelumnya, dalam keterangan resminya, Inpex menjelaskan bahwa Pre-FEED merupakan langkah penting untuk memulai pengembangan Proyek Lapangan Abadi. 

Selanjutnya, Inpex akan menyusun revisi POD mengacu pada hasil Pre-FEED dan diskusi dengan pihak Indonesia sehingga proyek menjadi efisien dan kompetitif keekonomiannya.

“Setelah revisi POD disetujui pemerintah, berbagai evaluasi termasuk desain rinci (front end engineering design / FEED) akan dikerjakan sehingga tercapai

keputusan investasi akhir (final investment decision/FID),” demikian ditulis dalam keterangan resmi tersebut.

Seperti diketahui, awalnya terdapat dua opsi kapasitas kilang gas alam cair/LNG Blok Masela, tergantung pada kebutuhan gas di dalam negeri. Dua opsi itu yaitu kilang berkapasitas 9,5 juta ton per tahun (million ton per annum/ MTPA) plus 150 juta kaki kubik per hari (million standard cubic feet per day/mmscfd) serta 7,5 MTPA plus 474 mmscfd.

Pre-FEED dilakukan untuk menetapkan opsi yang paling tepat. Pre-FEED dilakukan dengan satu opsi kapasitas produksi dan satu pulau. Hal ini sesuai keputusan usai kunjungan Menteri ESDM ke Jepang pada 16 Mei 2017. Adapun, pada surat perintah disebutkan bahwa kapasitas kilang LNG ditetapkan 9,5 juta

ton per tahun dan produksi gas pipa sebesar 150 mmscfd. Pre-FEED tersebut meliputi pipa offshore hingga darat, fasilitas offshore dan kilang LNG, serta lokasi kilang.

Untuk menjamin kelanjutan proyek, pemerintah akan memberikan perpanjangan kontrak kerja sama (production sharing contract/ PSC) bagi Inpex Corporation di Blok Masela selama 27 tahun. Sehingga kontrak Blok Masela akan berakhir pada 2055, alih-alih pada pada 2028 seperti kontrak awal. Keputusan tersebut merupakan salah satu hasil pembahasan antara Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan dan CEO Inpex Corporation Toshiaki Kitamura pada Oktober tahun lalu. 

Investor Daily, Page-9, Thursday, Oct 11, 2018

Chevron Requested Revision of IDD Costs

The development plan for the Indonesia Deepwater Development (IDD) Phase II project is still rolling. The latest news, the government asked PT Chevron Pacific Indonesia to reduce investment costs that had been submitted in the plan of development (POD) revision proposal. Chevron's management said that so far it has continued to reduce investment costs so that the project can be realized immediately.

"We confirm that Chevron and its joint venture partners continue to look for opportunities to reduce project costs and increase the economic value of IDD projects," said Yanto Sianipar, Chevron IndoAsia Business Unit's Senior VP of PGPA.

Only, Chevron is not willing to mention the total investment and potential reduction of IDD project costs. The US-based company also keeps information about its project development plan. What is certain is that the phase II project includes the Gendalo Field and Gehem Field.

According to records, the government estimates the amount of the Phase II IDD project costs to be between US $ 6 billion and US $ 10 billion. The investment is to build a number of new infrastructure. The development of new infrastructure is part of the first POD revision.

Some of the infrastructure development of Phase II IDD projects such as the construction of subsea wells, the creation of a flow pipe system that connects wells to production facilities and the establishment of production platforms at Gendalo and Gehem Hub locations. 

    There is also the construction of pipeline facilities to Santan Terminal and Senipah Terminal. Even though he did not want to be straightforward about the project development plan, Chevron ensured that it would continue to open coordination space with the government.

"We continue to work with the Indonesian government and determine the next steps to achieve the achievements of this important project," said Yanto.

For information, Chevron has developed the Bangka Field Phase 1 IDD project. The project entered the production stage since 2016. In the IDD project, Chevron Indonesia Company acted as operator. Chevron holds 63% aggregate shareholding together with joint venture partners, namely Eni, Tip Top, PHE and Muara Bakau partners.

IN INDONESIAN

Chevron Diminta Revisi Biaya IDD

Rencana pengembangan proyek Indonesia Deepwater Development (IDD) Tahap II masih bergulir. Kabar terbaru, pemerintah meminta PT Chevron Pacific Indonesia mengurangi biaya investasi yang telah diajukan dalam proposal revisi plan of development (POD). Manajemen Chevron mengatakan, sejauh ini terus berupaya menciutkan biaya investasi agar proyek segera bisa direalisasikan. 

“Kami mengonfirmasi bahwa Chevron bersama mitra joint venture terus mencari peluang untuk mengurangi biaya proyek dan meningkatkan nilai ekonomis proyek IDD," kata Yanto Sianipar, Senior VP PGPA Chevron IndoAsia Business Unit.

Hanya, Chevron belum bersedia menyebutkan total investasi dan potensi pengurangan biaya proyek IDD. Perusahaan asal Amerika Serikat tersebut juga masih menyimpan informasi mengenai rencana pengembangan proyeknya. Yang pasti, proyek tahap II tersebut meliputi Lapangan Gendalo dan Lapangan Gehem.

Menurut catatan, pemerintah memperkirakan besaran biaya proyek IDD Tahap II antara US$ 6 miliar-US$ 10 miliar. Investasi itu untuk membangun sejumlah infrastruktur baru. Pengembangan infrastruktur baru tersebut adalah bagian dari revisi POD pertama.

Beberapa pengembangan infrastruktur proyek IDD Tahap II seperti pembangunan sumur-sumur bawah laut alias subsea wells, pembuatan sistem pipa alir yang menghubungkan sumur-sumur ke fasilitas-fasilitas produksi dan pendirian anjungan produksi di lokasi-lokasi Hub Gendalo dan Gehem. Ada pula pembangunan fasilitas jaringan pipa ke Terminal Santan dan Terminal Senipah. Meski belum mau blak-blakan tentang rencana pengembangan proyek, Chevron memastikan akan terus membuka ruang koordinasi dengan pemerintah. 

“Kami terus bekerjasama dengan pemerintah Indonesia dan menentukan langkah selanjutnya untuk meraih pencapaian-pencapaian proyek penting ini," ungkap Yanto.

Sebagai informasi, Chevron telah mengembangkan proyek IDD Tahap 1 Lapangan Bangka. Proyek tersebut masuk tahap produksi sejak tahun 2016 lalu. Dalam proyek IDD, Chevron Indonesia Company bertindak sebagai operator. Chevron memegang 63% kepemilikan saham secara agregat bersama dengan mitra joint venture, yaitu Eni, Tip Top, PHE dan para mitra Muara Bakau.

Kontan, Page-14, Thursday, Oct 11, 2018

Plaju Refinery & Dumai Fixed Fuel Production

PT Pertamina (Persero) remains focused on producing gasoline in the Dumai and Plaju refineries even though the company will revitalize the two refineries to be able to produce 100% biodiesel (B100).

Syahrial Muchtar, Corporate Secretary of Pertamina, said that Dumai and Plaju refineries would still produce Solar and gasoline series. After collaborating with Eni S.p.A, the production of B100 from the two refineries is expected to not interfere with the production performance of fuel oil (BBM).

"It's the nature of expansion. So what we have now is not disturbed, we are still producing gasoline, "he said.

The cooperation between Pertamina and Eni will be signed at the Annual IMF-World Bank Group 2018 Meeting in Bali. On the occasion, Minister of State-Owned Enterprises Rini M. Soemarno said that Eni operates two oil refineries in Italy that are very old. However, Eni converted the refinery from Solar into production of biofuel or 100% biodiesel.

Plaju Refinery

Rini said, it was preparing Plaju Refinery in South Sumatra and Dumai Refinery in Riau to become more modern. This is in line with efforts to reduce import needs.

"We will convert these two places with raw materials for B100 biodiesel palm oil which are truly green energy," he said in Nusa Dua, Bali.

The reason for choosing Dumai and Plaju refineries is in line with the location adjacent to the source of raw materials for green energy, oil palm. For raw materials, Pertamina will establish cooperation with PT Perkebunan Nusantara (Persero).

Currently, Dumai's Refinery Unit (RU) II has a production capacity of 170,000 barrels per day (bpd) and RU III Plaju is 133,700 bpd. However, at the time of refinery revitalization efforts, the performance of the BBM processing facility was confronted with anticipation of damage to unplanned shutdown components.

Damage or malfunction of some oil refinery components causes refinery operations to stop. This can interfere production of fuel oil. Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar has coordinated with Pertamina regarding unplanned shutdowns at several refineries owned by the state-owned company.

Meanwhile, the government will change the tax policy related to the tax levy to the cooperation contract contractors who sell oil to Pertamina. Arcandra Tahar said, there was a revised regulation in the Directorate General of Taxes to ease the tax of contractors who sold crude oil to Pertamina.

"The regulation in the Directorate General of Taxes needs the division of profits obtained by the contractor and the difference in price used for costs incurred and transactions [with Pertamina], only the profits are taxed."

IN INDONESIAN

Kilang Plaju & Dumai Tetap Produksi BBM

PT Pertamina (Persero) tetap fokus memproduksi bensin di kilang Dumai dan Plaju meskipun perseroan akan merevitalisasi kedua kilang itu agar mampu memproduksi biodiesel 100% (B100).

Syahrial Muchtar, Sekretaris Perusahaan Pertamina, mengatakan bahwa Kilang Dumai dan Plaju tetap akan memproduksi Solar dan seri gasolin. Setelah bekerja sama dengan Eni S.p.A, produksi B100 dari kedua kilang tersebut diharapkan tidak mengganggu kinerja produksi bahan bakar minyak (BBM) .

“Kan sifatnya ekspansi. Jadi yang sudah ada sekarang tidak terganggu, kami masih memproduksi gasolin,” katanya.

Kerja sama Pertamina dan Eni itu akan ditandatangani dalam acara Pertemuan Tahunan IMF-World Bank Group 2018 di Bali. Dalam kesempatan tersebut, Menteri Badan Usaha Milik Negara Rini M. Soemarno mengatakan bahwa Eni mengoperasikan dua kilang minyak di Italia yang telah berumur sangat tua. Namun, Eni melakukan konversi kilang tersebut dari Solar menjadi produksi bahan bakar nabati atau biodisel 100%. 

Rini menuturkan, pihaknya sedang menyiapkan Kilang Plaju di Sumatra Selatan dan Kilang Dumai di Riau untuk menjadi lebih modern. Hal itu sejalan dengan upaya menurunkan kebutuhan impor. 

“Dua tempat ini akan kami konversi dengan bahan baku minyak kelapa sawit biodiesel B100 yang benar-benar energi hijau,” ujarnya di Nusa Dua, Bali.

Alasan pemilihan lokasi Kilang Dumai dan Plaju sejalan dengan lokasi yang berdekatan dengan sumber bahan baku energi hijau, kelapa sawit. Untuk bahan baku, Pertamina akan menjalin kerja sama dengan PT Perkebunan Nusantara (Persero).

Saat ini, Refinery Unit (RU) II Dumai berkapasitas produksi 170.000 barel per hari (bph) dan RU III Plaju sebanyak 133.700 bph. Namun, di saat upaya revitalisasi kilang, performa fasilitas pengolahan BBM dihadapkan dengan antisipasi kerusakan komponen fasilitas produksi bahan bakar minyak secara tiba-tiba (unplanned shutdown).

Kerusakan atau tidak berfungsinya beberapa komponen kilang minyak menyebabkan operasi kilang berhenti. Hal tersebut dapat mengganggu

produksi bahan bakar minyak. Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar telah melakukan koordinasi dengan pihak Pertamina terkait dengan unplanned shutdown di beberapa kilang milik perusahaan milik negara tersebut.

Sementara itu, pemerintah akan mengubah kebijakan perpajakan terkait pungutan pajak kepada kontraktor kontrak kerja sama yang menjual minyak ke Pertamina. Arcandra Tahar mengatakan, ada revisi regulasi di Ditjen Pajak untuk meringankan pajak kontraktor yang menjual minyak mentah ke Pertamina.

“Peraturan di Ditjen Pajak perlu divisi keuntungan yang diperoleh kontraktor dan selisih harga yang digunakan untuk biaya yang timbul dan transaksi [dengan Pertamina], hanya keuntungannya saja yang dikenakan pajak.”

Bisnis Indonesia, Page-24, Thursday, Oct 11, 2018

Oil Production Remains Under National Target

Five major contractors controlled 73.34% of Indonesia's total petroleum production.

At least five oil and gas contributors still dominate national oil production. The five contractors are Chevron Pacific Indonesia, ExxonMobil, Pertamina EP, Pertamina Hulu Mahakam and China National Offshore Oil Corporation (CNOOC) Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that the five contractors contributed to total oil production of 667,623 barrels per day (bpd).

This amount is equivalent to 73.34% of the total national oil lifting until the third quarter of 2018 which reached 773,923 bpd, while in the gas sector, five KKKS contributed a total production of 761,356 barrels of oil equivalent per day (boepd). This amount is equivalent to 66.50% of the total national production which reached 1.14 million boepd.

"The five largest oil palm contractors (KKKS) account for 73% of the total national oil lifting, while the five largest gas contractors contribute 66% of the total national gas lifting," said Head of Program and Communication Division of SKK Migawa Prabawa Taher.

However, SKK Migas noted that the achievement was still below the target of only 96%. Wisnu said there were several obstacles in the implementation of national oil and gas production. The constraints are experienced by PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ). This contractor encountered technical equipment production constraints. Then in the Rokan Block, Chevron Pacific still faces the impact of pipeline technical problems at the production facility some time ago.

The Medco Natuna faces a problem in the form of drilling results that have not met expectations. On the other hand, the company also rescheduled its drilling. Furthermore, Pertamina EP's drilling results are still below expectations. While the constraints of Pertamina Upstream Mahakam are drilling delays related to rig selection.

"The achievement is around 96%, slightly below the target. Indeed, there are still some constraints in production, but these obstacles are moderate and already handled," Wisnu explained.

If referring to the target in the 2018 State Budget (APBN), in the petroleum sector, there are still three KKKS which are below the annual lifting target. First, Chevron Pacific Indonesia is projected to be 213,551 bpd, but only 210,582 bpd is realized as of September 30, 2018. Second, Pertamina EP is targeted to produce 85,869 bpd of oil, but only 73,618 bpd. Third, Pertamina Hulu Mahakam was set at 48,271 hph, but lifting only reached 44,346 bpd.

CNOOC

While the other two contractors have exceeded the 2018 APBN target, ExxonMobil in the Cepu Block reaches 207,936 bpd, higher than the 2018 APBN target of 205,000 bpd. Another one is CNOOC with a production of 31,141 bpd, exceeding the estimated 2018 State Budget of 30,000 bpd.

In addition to oil and gas lifting, SKK Migas also noted that the achievement of cost recovery as of the end of September 2018 had reached US $ 8.7 billion. This amount is equivalent to 87% of the 2018 State Budget target of US $ 10.1 billion. SKK Migas projects that cost recovery until the end of 2018 will reach US $ 11.7 billion, or reach 116% of the 2018 APBN target.

On the other hand, the achievement of state revenues from upstream oil and gas until the third quarter of 2018 amounted to US $ 11.8 billion or 99% of the 2018 target of US $ 11.9 billion. Until the end of 2018, SKK Migas is optimistic that the state revenue from upstream oil and gas will be US $ 16.1 billion or 135% this year.

IN INDONESIAN

Produksi Minyak Tetap di Bawah Target Nasional

Lima kontraktor besar menguasai 73,34% dari total produksi minyak bumi Indonesia.

Sedikitnya lima kontraldior migas masih mendominasi produksi minyak nasional. Kelima kontraktor tersebut adalah Chevron Pacific Indonesia, ExxonMobil, Pertamina EP, Pertamina Hulu Mahakam dan China National Offshore Oil Corporation (CNOOC) Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mencatat, kelima kontraktor itu menyumbang total produksi minyak sebesar 667.623 barel per hari (bph).

Jumlah tersebut setara 73,34% dari total lifting minyak nasional hingga kuartal III 2018 yang mencapai 773.923 bph, sedangkan di sektor gas, lima KKKS menyumbang total produksi 761.356 barrel oil equivalent per day (boepd). Jumlah ini setara 66,50% dari total produksi nasional yang mencapai 1,14 juta boepd.

"Lima kontraktor Kontrak Kerja Sama (KKKS) terbesar minyak menyumbang 73% dari total lifting minyak nasional, sedangkan lima KKKS terbesar gas menyumbang 66% dari total lifting gas nasional,” kata Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher.

Meski demikian, SKK Migas mencatat pencapaian tersebut masih di bawah target yaitu hanya mencapai 96%. Wisnu mengemukakan ada beberapa kendala dalam implementasi produksi migas nasional. Kendala tersebut misalnya dialami oleh PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ). Kontraktor ini menemui kendala teknis peralatan produksi. Kemudian di Blok Rokan, Chevron Pacific masih menghadapi imbas dari masalah teknis pipa di fasilitas produksi beberapa waktu lalu.

Adapun Medco Natuna menghadapi masalah berupa hasil pengeboran yang belum sesuai ekspektasi. Di sisi lain, perusahaan ini juga menjadwal ulang pengeborannya. Selanjutnya, hasil pengeboran Pertamina EP masih di bawah ekspektasi. Sedangkan kendala Pertamina Hulu Mahakam adalah penundaan pengeboran terkait pemilihan rig. 

"Pencapaiannya sekitar 96%, sedikit di bawah target. Memang masih ada beberapa kendala dalam produksi, namun kendala ini ada yang sedang dan sudah tertangani," jelas Wisnu.

Jika mengacu target dalam Anggaran Pendapatan dan Belanja Negara (APBN) 2018, di sektor minyak bumi, masih ada tiga KKKS yang pencapaiannya di bawah target lifting tahunan. Pertama, Chevron Pacific Indonesia yang diproyeksikan 213.551 bph, namun hanya terealisasi 210.582 bph per 30 September 2018. Kedua, Pertamina EP yang ditargetkan memproduksi minyak 85.869 bph, namun hanya terwujud 73.618 bph. Ketiga, Pertamina Hulu Mahakam yang ditetapkan sebesar 48.271 hph, tapi lifting hanya mencapai 44,346 bph.

Sedangkan dua kontraktor lainnya sudah melampaui target APBN 2018, yakni ExxonMobil di Blok Cepu mencapai 207.936 bph, lebih tinggi dari target APBN 2018 sebesar 205.000 bph. Satu lagi adalah CNOOC dengan produksi 31.141 bph, melampaui estimasi APBN 2018 sebesar 30.000 bph.

Selain lifting migas, SKK Migas juga mencatat pencapaian pengembalian biaya operasi (cost recovery) per akhir September 2018 sudah mencapai US$ 8,7 miliar. Jumlah ini setara 87% dari target APBN 2018 sebesar US$ 10,1 miliar. SKK Migas memproyeksikan cost  recovevy hingga akhir 2018 mencapai US$ 11,7 miliar, atau mencapai 116% dari target APBN 2018.

Di sisi lain, pencapaian penerimaan negara dari hulu migas hingga kuartal III 2018 sebesar US$ 11,8 miliar atau 99% target 2018 yang mencapai US$ 11,9 miliar. Hingga akhir 2018, SKK Migas optimistis penerimaan negara dari hulu migas US$ 16,1 miliar atau 135% target tahun ini.

Kontan, Page-14, Wednesday, Oct 10, 2018

Pertamina & Eni Work on Plaju & Dumai Refineries

PT Pertamina (Persero) will partner with Italian oil and gas company Eni S.p .A to revitalize the Plaju and Dumai refineries to produce 100% biodiesel (B100). The Pertamina and Eni cooperation will be signed at the IMF-World Bank Group 2018 Annual Meeting in Bali.

Minister of State-Owned Enterprises Rini M. Soemarno said that Eni operates two oil refineries in Italy that are very old. However, Eni converted the refinery and Solar into 100% biodiesel or B100 production. The refinery which previously processed crude oil into Solar will be converted to process 100% biodiesel.

Rini said, it was preparing Plaju Refinery in South Sumatra and Dumai Refinery in Riau to become more modern. This is in line with efforts to reduce import needs.

"We will convert these two places with raw materials for B100 biodiesel palm oil which are truly green energy," he said in Nusa Dua, Bali.

Pertamina and Eni will sign a memorandum of understanding on Thursday (11/10), in the midst of the 2018 Indonesia Investment Forum ‘71 New Paradigm In Infrastructure Financing "in Nusa Dua, Bali.

Nicke Widyawati

Previously, Pertamina President Director Nicke Widyawati explained that the collaboration was part of the company's commitment to providing environmentally friendly fuels while optimizing domestic natural resources to create national energy security, independence and sovereignty. According to him, Eni was made a partner because of its success in converting conventional refineries into a biorefinery in Porto Maghera in 2014.

The reason for choosing Dumai and Plaju refineries is in line with the location adjacent to the source of raw materials for green energy, oil palm. For raw materials, Pertamina will establish cooperation with PT Perkebunan Nusantara (Persero). Meanwhile, Pertamina needs to change the operational monitoring method for oil refineries to anticipate the damage to unplanned shutdown components.

Damage or malfunction of some oil refinery components causes the refinery operation to stop. This can disrupt the production of fuel oil (EBM). Deputy Minister of Energy and Mineral Resources Arcandra Tahar has coordinated with Pertamina regarding unplanned shutdowns at several refineries owned by the state-owned company.

According to him, several times operational Pertamina refineries suddenly died producing without plan. This has caused Pertamina's oil product imports to be greater than crude oil imports.

IN INDONESIAN

Pertamina & Eni Garap Kilang Plaju & Dumai

PT Pertamina (Persero) akan menggandeng perusahaan minyak dan gas bumi asal Italia Eni S.p .A untuk merevitalisasi Kilang Plaju dan Dumai agar dapat memproduksi biodiesel 100 % (B100). Kerja sama Pertamina dan Eni itu akan ditandatangani dalam acara Annual Meeting IMF-World Bank Group 2018 di Bali.

Menteri Badan Usaha Milik Negara Rini M. Soemarno mengatakan bahwa Eni mengoperasikan dua kilang minyak di Italia yang telah berumur sangat tua. Namun, Eni melakukan konversi kilang tersebut dan Solar menjadi produksi biodisel 100% atau B100. Kilang yang sebelumnya mengolah minyak mentah menjadi Solar akan diubah mengolah 100% biodiesel.

Rini menuturkan, pihaknya sedang menyiapkan Kilang Plaju di Sumatra Selatan dan Kilang Dumai di Riau untuk menjadi lebih modern. Hal itu sejalan dengan upaya menurunkan kebutuhan impor.

“Dua tempat ini akan kami konversi dengan bahan baku minyak kelapa sawit biodiesel B100 yang benar-benar energi hijau,” ujarnya di Nusa Dua, Bali.

Pertamina dan Eni akan meneken nota kesepahaman pada Kamis (11/10) , di tengah-tengah Indonesia Investment Forum 2018 ‘71 New Paradigm In Infrastructure Financing” di Nusa Dua, Bali.

Sebelumnya, Direktur Utama Pertamina Nicke Widyawati menjelaskan kerja sama itu merupakan bagian dari komitmen perseroan dalam menyediakan bahan bakar ramah lingkungan sekaligus mengoptimalkan Sumber daya alam dalam negeri untuk menciptakan ketahanan, kemandirian, dan kedaulatan energi nasional. Menurutnya, Eni dijadikan sebagai mitra karena keberhasilannya dalam melakukan konversi kilang konvensional menjadi biorefinery di Porto Maghera pada 2014.

Alasan pemilihan lokasi Kilang Dumai dan Plaju sejalan dengan lokasi yang berdekatan dengan Sumber bahan baku energi hijau, kelapa sawit. Untuk bahan baku, Pertamina akan menjalin kerja sama dengan PT Perkebunan Nusantara (Persero). Sementara itu, Pertamina perlu mengubah metode pemantauan operasional terhadap kilang minyak untuk mengantisipasi kerusakan komponen fasilitas produksi bahan bakar minyak secara tiba-tiba (unplanned shutdown).

Kerusakan atau tidak berfungsinya beberapa komponen kilang minyak menyebakan operasi kilang berhenti. Hal tersebut dapat mengganggu produksi bahan bakar minyak (EBM) . Wakil Menteri Energi dan Sumber Daya Mineral Arcandra Tahar telah melakukan koordinasi dengan pihak Pertamina terkait unplanned shutdown di beberapa kilang milik perusahaan milik negara tersebut.

Menurutnya, beberapa kali operasional kilang Pertamina tiba-tiba mati berproduksi tanpa direncanakan. Hal itu mengakibatkan impor produk minyak Pertamina lebih besar daripada impor minyak mentah. 

Bisnis Indonesia, Page-24, Wednesday, Oct 10, 2018

5 Large Contractors Don't Reach the Target

Not achieving the target of oil lifting of five contractors The big cooperation contract (KKKS) has also been holding back the achievement of national oil lifting which is still below the 2018 National Budget (APBN) target.

Until September 2018, the realization of petroleum lifting in the third quarter of 2018 recorded 774,000 bopd (barrels of oil per day) or 97% of the target of 800,000 bopd. From the national lifting realization, five large contractors of cooperation contracts (KKKS) contributed 73% of total production.

The five KKKS are PT Chevron Pacific Indonesia, PT ExxonMobil Cepu Ltd. (EMCL), PT Pertamina EP, PT Pertamina Hulu Mahakam and PHE OSES in the Southeast Sumatra Block (SES). Head of SKK Migas Program and Communication Division Wisnu Prabawa Taher said there were still some obstacles in oil production.

Especially for the Rokan Block with PT CPI operators, it is known that there are still technical effects and obstacles to the pipeline in the production facilities. And the 2018 APBN target is 213,551 barrels per day, PT CPI produces 210,582 barrels per day (bpd).

"But this obstacle has been addressed. Regarding monitoring, SKK Migas is always carried out, including supervision of KKKS operations, "he said, Monday (8/10).

Production constraints were also experienced by Medco E & P Natuna whose drilling results had not met expectations and drilling needed to be rescheduled. PT Pertamina EP as well. The drilling results are still below expectations, while Pertamina Hulu Mahakam (PHM) is experiencing drilling delays due to rig problems. Until the end of the year the average oil and gas lifting performance is estimated to only reach 95% or 1.91 million barrels of oil equivalent per day (BOEPD).

"In the upstream oil and gas sector, it is common, the drilling results can be different from the target, because what is taken is deep in the bowels of the earth," Wisnu said

He stressed the difficulty of achieving the target can be understood considering the main upstream oil and gas field has been operating on average since 1970-1980 with high water cut content. 

     In addition, the pressure is not as good as at the beginning of the production period, so it becomes a challenge in production operations while keeping reserves optimally taken to the surface. According to SKK Migas data as of September 30, 2018, the realization of oil and gas lifting amounted to 1.92 million BOEPD. This achievement is only 96% of the 2018 State Budget target set at 2 million BOEPD.

Separately, ESDM Deputy Minister Arcandra Tahar acknowledged that the realization of oil and gas lifting had not reached the target, particularly the oil sector. Unfortunately, Arcandra is reluctant to accept the government's efforts to encourage increased oil lifting. On the other hand, not achieving the national oil lifting target can be triggered by the KKKS's consideration in measuring production prices or economic level.

TECHNICAL CONSIDERATIONS

Executive Director of Reforminer Institute Komaidi Notonegoro said technical considerations could also affect the natural decline of an oil well. According to him, technical constraints not only refer to production equipment, but also natural factors from oil fields that are mostly in Indonesia.

"There is no other way, besides finding new reserves."

According to him, the KKKS's steps to encourage production according to the 2018 State Budget target may be achieved, but at the expense of production costs. Naturally, then the contractor's choice does not maximize production due to economic affairs.

This includes also what PT Chevron Pacific Indonesia did when it did not increase investment to boost production quantity. "Psychologically everything will be like that, if it still fulfills their economy. If CPI only optimizes its business, "Komaidi said.

IN INDONESIAN

5 Kontraktor Besar Tidak Capai Target

Tidak tercapainya target lifting minyak lima kontraktor Kontrak kerja sama (KKKS) besar ikut menahan pencapaian lifting minyak nasional yang masih dibawah target Anggaran Pendapatan Belanja Nasional (APBN) 2018.

Hingga September 2018, realisasi lifting minyak bumi pada kuartal III/2018 tercatat 774.000 bopd (barrels of oil per day) atau 97% dari target 800.000 bopd. Dari realisasi lifting nasional tersebut, lima kontraktor kontrak kerja sama (KKKS) besar berkontribusi 73% total produksi.

Lima KKKS tersebut yakni PT Chevron Pasific Indonesia, PT ExxonMobil Cepu Ltd., PT Pertamina EP, PT Pertamina Hulu Mahakam dan PHE OSES di Blok Southeast Sumatra (SES). Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher mengatakan masih ada beberapa kendala dalam produksi minyak.

Khusus untuk Blok Rokan dengan operator PT CPI diketahui masih ada efek dan kendala teknis pipa di fasilitas produksi. Dan target APBN 2018 sebesar 213.551 barel per hari, PT CPI memproduksi 210.582 barel per hari (bph). 

“Tapi kendala ini sudah tertangani. Terkait monitoring, selalu dilakukan oleh SKK Migas, termasuk pengawasan ke operasi KKKS,” ujarnya, Senin (8/10).

Kendala produksi juga dialami oleh Medco E&P Natuna yang hasil pengeborannya belum sesuai ekspektasi dan pemboran perlu dijadwal ulang. PT Pertamina EP demikian pula. Hasil pengeborannya masih dibawah ekspektasi, sementara Pertamina Hulu Mahakam (PHM) mengalami penundaan pengeboran karena masalah rig. Hingga akhir tahun rata-rata capaian lifting migas diperkirakan hanya mencapai 95% atau 1,91 juta barel setara minyak per hari (BOEPD).

“Dalam hulu migas, sudah lazim, hasil pemboran bisa berbeda dengan target, karena yang diambil berada jauh di dalam perut bumi,” ujar Wisnu.

Dia menekankan sulitnya mencapai target dapat dipahami mengingat lapangan hulu migas yang utama rata-rata sudah beroperasi sejak 1970-1980 dengan kandungan water cut yang  tinggi. 

     Selain itu, tekanannya sudah tidak sebaik di awal periode produksi, sehingga menjadi tantangan tersendiri dalam operasi produksi sekaligus menjaga agar cadangan dapat optimal diambil ke permukaan. Menurut data SKK Migas per 30 September 2018, realisasi lifting migas sebesar 1,92 juta BOEPD. Capaian ini baru 96% dari target APBN 2018 yang ditetapkan sebesar 2 juta BOEPD.

Terpisah, Wakil Menteri ESDM Arcandra Tahar mengakui realisasi lifting migas belum mencapai target, khususnya dan sektor minyak. Sayangnya, Arcandra enggan mennci upaya pemerintah untuk mendorong peningkatan lifting minyak. Disisi lain, tidak tercapainya target lifting minyak nasional dapat dipicu oleh pertimbangan KKKS dalam mengukur harga produksi atau tingkat keekonomian.

PERTIMBANGAN TEKNIS

Direktur Eksekutif Reforminer Institute Komaidi Notonegoro mengatakan pertimbangan teknis juga dapat mempengaruhi penurunan alamiah dari sebuah sumur minyak. Menurutnya, kendala teknis tidak hanya mengacu pada peralatan produksi, tetapi juga faktor alami dari lapangan minyak yang sebagian tua di Indonesia. 

“Memang tidak ada cara lain, selain mencari cadangan baru.”

Menurut dia, langkah KKKS untuk mendorong produksi sesuai target APBN 2018 mungkin dapat tercapai, tetapi dengan mengorbankan biaya produksi. Wajar bila kemudian pilihan kontraktor tidak memaksimalkan produksi karena urusan keekonomian.

Hal ini termasuk juga yang dilakukan oleh PT Chevron Pasific Indonesia ketika tidak meningkatkan investasi untuk mendorong kuantitas produksi. “Secara psikologis semua akan begitu, sekiranya masih memenuhi keekonomian mereka. Kalau CPI hanya mengoptimalkan bisnisnya,” kata Komaidi. 

Bisnis Indonesia, Page-3, Wednesday, Oct 10, 2018

Government Accelerates Gas Projects

The government will accelerate the construction of gas field projects which are the mainstay of supply in the next 10 years. Based on Indonesia's 2018-2017 Natural Gas Balance, gas lifting is projected at 7,452 million standard cubic feet per day / mmscfd. Furthermore, gas lifting is expected to reach a peak of 8,661 mmsfd in 2022, then again down to 8,048 mmscfd in 2027.

To achieve the gas lifting projection, there is a mainstay gas project that is a source of supply. In particular, two fields are projected operating this year, namely Siwah, Rambong, and Julu Rayeu Fields, which were carried out by Medco E & P Indonesie, and the MDA-MBH and MDK Fields. by Husky CNOOC Madura Limited (HCML).

Furthermore, next year, there is the Jambaran-Tiung Biru Project by PT Pertamina EP Cepu (PEPC), as well as the Badik and West Badik Fields by PT Pertamina Hulu Energi Nunukan.

The Train-3 Tangguh Refinery Project by BP Berau Limited is targeted to begin increasing domestic gas supply by 2020.

Next, in 2021, the Merakes Field by ENI East Sepinggan and the Kido Merah Smoke Field by Genting Oil will begin production.

The Indonesia Deepwater Development (IDD) project consisting of Gendalo, Gandang and Gehem Fields by Chevron Indonesia Company began operations in 2022.

Finally, in 2027, the Abadi Field by Inpex Masela and East Natuna by PT Pertamina (Persero) are projected to begin production.

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said the development of these projects would be accelerated.

"Want as fast as POD (plan of development / development plans) are forced to enter quickly," he said in Jakarta

the Abadi Field, the Masela Block

This includes the development of the Abadi Field, the Masela Block, which has not been included in the development plan. Inpex as the operator of this block should have completed the concept of pre-front end engineering design (Pre-FEED) in September.

"This is again forced (POD). We will call later, "said Arcandra.

Indonesia's average natural gas production over the past five years was recorded at 7,997 mmscfd. The trend of production over the past five years is lower than the previous period which reached 8,130 mmscfd in 2013 and to 7,620 mmscfd in 2017. From the production of natural gas, there are 8% losses that are implicit, gas flaring, and own use so that the lifting realization in 2017 amounting to 6,607.65 mmscfd. Of the natural gas lifting, 58.59% was used for domestic use and 41.41% was exported.

IDD Project

Regarding the IDD Project, Arcandra said Chevron Indonesia had included a proposal revision.

"A proposal that at that time had additional information already entered and was being reviewed by the Oil and Gas-SKKK," he said in Jakarta.

Chevron must re-submit the proposal due to changes in the IDD Project. From the beginning there were three blocks in this project, it was agreed that only the Ganal and Rapak Blocs would still enter this project. While the Makassar Strait Block was excluded from the project and has been auctioned by the government. 

    With the issuance of the Makassar Strait Block, the Chevron IDD Project will later combine four fields, namely the Bangka, Gehem, Gendalo and Gandang Fields. Bangka Field has been in production since August 2016 and produces eight liquefied natural gas (LNG) cargoes shipped from the Bontang LNG Terminal.

IN INDONESIAN

Pemerintah Percepat Proyek Gas

Pemerintah akan mempercepat pengerjaan proyek lapangan gas yang menjadi andalan pasokan dalam 10 tahun mendatang. Berdasarkan Neraca Gas Bumi Indonesia 2018-2017, lifting gas diproyeksikan sebesar 7.452 million standard cubic feet perday/mmscfd. Selanjutnya, lifting gas diperkirakan akan mencapai puncaknya 8.661 mmsfd pada 2022, kemudian kembali turun menjadi 8.048 mmscfd pada 2027.

Untuk mencapai proyeksi lifting gas tersebut, terdapat proyek gas andalan yang menjadi sumber pasokan. Rincinya, dua lapangan diproyeksikan

beroperasi tahun ini, yakni Lapangan Alur Siwah, Rambong, dan Julu Rayeu yang dikerjakan Medco E&P Indonesie, serta Lapangan MDA-MBH dan MDK

oleh Husky CNOOC Madura Limited (HCML).

Selanjutnya, pada tahun depan, terdapat Proyek Jambaran-Tiung Biru oleh PT Pertamina EP Cepu, serta Lapangan Badik dan West Badik oleh PT Pertamina Hulu Energi Nunukan. 

Proyek Kilang Tangguh Train-3 oleh BP Berau Limited ditargetkan mulai menambah pasokan gas domestik pada 2020. 

Berikutnya, di 2021, Lapangan Merakes oleh ENI East Sepinggan dan Lapangan Asap Kido Merah oleh Genting Oil akan mulai produksi. 

Proyek Indonesia Deepwater Development (IDD) yang terdiri dari Lapangan Gendalo, Gandang, dan Gehem oleh Chevron Indonesia Company mulai beroperasi pada 2022. 

Terakhir, pada 2027, Lapangan Abadi oleh lnpex Masela dan East Natuna oleh PT Pertamina (Persero) diproyeksikan mulai berproduksi.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, pengembangan proyek-proyek tersebut akan dipercepat. 

“Mau secepat cepat POD (plan of development/rencana pengembangan) dipaksa cepat masuk,” katanya di Jakarta

Hal ini termasuk untuk pengembangan Lapangan Abadi, Blok Masela yang belum juga dimasukkan rencana pengembangannya. Inpex sebagai operator blok ini seharusnya telah merampungkan konsep kelayakan keteknikan dan desain (pre front end engineering design/ Pre-FEED) pada September lalu.

“Ini lagi dipaksa (POD). Nanti kami panggil,” ujar Arcandra.

Rata-rata produksi gas bumi Indonesia selama lima tahun terakhir tercatat sebesar 7.997 mmscfd. Trend produksi selama lima tahun terakhir ini, lebih rendah dari periode sebelumnya yang mencapai 8.130 mmscfd di 2013 dan menjadi 7.620 mmscfd di 2017. Dari produksi gas bumi tersebut, terdapat 8% losses yang bertipa impuritis, gas suar bakar, dan pengunaan sendiri sehingga realisasi lifting pada 2017 sebesar 6.607,65 mmscfd. Dari lifting gas bumi tersebut, sebanyak 58,59% dimanfaatkan untuk domestik dan 41,41% diekspor.

Proyek IDD 

Terkait Proyek IDD, Arcandra menuturkan Chevron Indonesia telah memasukkan revisi proposalnya. 

“Proposal yang waktu itu ada tambahan informasi sudah masuk dan sedang di review oleh -SKK Migas,” kata dia di Jakarta.

Chevron harus mengajukan kembali proposal karena adanya perubahan dalam Proyek IDD. Dari awalnya terdapat tiga blok dalam proyek ini, telah disepakati bahwa hanya Blok Ganal dan Rapak yang tetap masuk proyek ini. Sementara Blok Makassar Strait dikeluarkan dari proyek dan telah dilelang pemerintah. 

    Dengan dikeluarkannya Blok Makassar Strait, maka Proyek IDD Chevron nantinya menggabungkan empat lapangan, yakni Lapangan Bangka, Gehem, Gendalo, dan Gandang. Lapangan Bangka telah berproduksi sejak Agustus 2016 dan menghasilkan delapan kargo gas alam cair (liquefied natural gas/LNG) yang dikapalkan dari Terminal LNG Bontang.

Investor Daily, Page-9, Tuesday, Oct 9, 2018