Medco Explores Acquisition of Ophir Energy

PT Medco Energi International Tbk (MEDC) through Medco Energi Global Pte Ltd plans to acquire Ophir Energy PlC, an oil and gas exploration and production company based in London and listed on London's Borsa Securities. Ophir Energy has operating and non-operating assets in Africa, Asia and Mexico.

Medco Energi plans to cash in cash all shares that will be issued by Ophir Energy Medco Energi Director Anthony R Mathias in his official explanation stating that the plan is still under discussion.

"Therefore, there is no value for the bids submitted, the amount of funds, the amount of securities to be purchased, and the relationship between the parties who have not yet known," explained Anthony.

He only confirmed, Medco Energi Global had until 28 January 2019 to make an announcement for certainty of the offer to buy Ophir Energy's shares. This does not negatively affect the company's operations, law, financial condition and business continuity.

Meanwhile, Wood Mackenzie Angus Rodger's Research Director in a written statement said that the discussion about Medco Energi's planned takeover of Ophir Energy was a bold step. Although there is no specific value for the acquisition, because it is still waiting for certainty of bidding until January 28, 2019.

Ophir Energy's upstream sector includes assets in Thailand, Vietnam, Indonesia, Malaysia, Equatorial Guinea, and Tanzania. Ophir also has exploration in Mexico and Bangladesh.

"This is a bold step from Medco. If successful, this will create upstream sector power in Southeast Asia, "said Rodger.

At present, Ophir Energy's production is 25 thousand BOEPD. If combined with Medco's 2018 target of 85 thousand BOEPD, it will produce a total production of up to 110 thousand BOEPD. This step will make Medco Energi the seventh largest private oil and gas company in Southeast Asia, above Hess and BP and after Repsol and Total.

The acquisition also adds to non-Asian exposure by adding growth options in Tanzania and Equatorial Guinea to enhance existing positions in Libya, Oman, Yemen, Tunisia and the United States, and will offer exposure to global upstream hotspots off the coast of Mexico, where Ophir recently participated in three blocks.

After Ophir's acquisition of Asia Santos assets last year, according to Angus, the company's portfolio has moved closer to Asia's growth, given Fortuna's problematic FLNG project in Guinea because it is difficult to get funding.

Loan of US $ 500 Million

Previously, two subsidiaries of Medco Energi, namely PT Medco E & P Malaka and PT Medco E & P Tomori Sulawesi, won a loan of US $ 500 million from a syndicate of 15 banks. Medco Energi Corporate Secretary Siendy K Wisandana said, initially, loans came from ANZ, Societe Generale (Socgen), and ING Bank for US $ 500 million. Then the three banks transferred their exposure to 12 other banks.

"That way, as many as 12 of these banks participated. This is usually syndicated, "Siendy said to Investor Daily.

Meanwhile, as reported by Bloomberg, as many as 12 banks participating in the syndication were Bank Mandiri US $ 40.25 million, DBS amounting to US $ 40.25 million, BNP Paribas US $ 22.75 million, and Credit Agricole CIB (CA- CIB) US $ 22.75 million.

Subsequently, Natixis was US $ 22.75 million, Standard Chartered was US $ 22.75 million, and Sumitomo Mitsui Banking Corporation (SMBC) was US $ 22.75 million. The HSBC lead arranger is US $ 19.5 million, while arranger Mizuho is US $ 19.5 million, MUFG is worth US $ 17 million, and UOB is US $ 17 million. According to Siendy, the loan was intended for the purpose of developing and refinancing the Blok A Aceh and Senoro Sulawesi fields.

"Only for that, may not be used for other purposes," he said.

Medco Energi has also won shareholders' approval to cut the target of the capital increase without pre-emptive rights (non-HMETD) from Rp 2.31 trillion to Rp 1.54 trillion. The change in the fund target was due to the movement of the company's stock price, so the assumption of the implementation price was changed from Rp 1,306 to Rp 869 per share.

Medco Energy Managing Director Hilmi Panigoro said, the company has re-proposed a non-HMETD plan of a maximum of 10% at the extraordinary general meeting of shareholders (EGM) on November 15 2018. The company has two years to realize a plan to increase capital through non-HMETD .

Hilmi further said, he felt the need to be careful and be conservative in making choices in managing the company's capital structure.

"Responding to commodity markets, and world equities that are being unstable, we choose to be cautious, and conservative," he stressed.

Regarding the plan to hold non-HMETD, Medco's management was officially informed on October 8, 2018, claiming it was eyeing strategic investors. In detail, strategic investors who are targeted are financial investors (Financial investors).

IN INDONESIAN

Medco Jajaki Akuisisi Ophir Energy

PT Medco Energi lnternasional Tbk (MEDC) melalui Medco Energi Global Pte Ltd berencana mengakuisisi Ophir Energy PlC, perusahaan eksplorasi dan produksi migas berbasis di London dan tercatat di Borsa Efek London. Ophir Energy memiliki aset operasi dan non-operasi di Afrika, Asia, dan Meksiko.

Medco Energi berencana membeli secara tunai seluruh saham yang akan diterbitkan oleh Ophir Energy Direktur Medco Energi Anthony R Mathias dalam penjelasan resminya menyebutkan bahwa rencana tersebut masih dalam pembahasan.

“Karena itu, belum ada nilai tawaran yang diajukan, jumlah dana, jumlah efek yang akan dibeli, dan belum dapat diketahui hubungan antar pihak yang bertransaksi,” jelas Anthony.

Dia hanya menegaskan, Medco Energi Global memiliki waktu hingga 28 januari 2019 untuk melakukan pengumuman untuk kepastian dari penawaran untuk membeli saham Ophir Energy. Hal ini tidak berdampak secara negatif terhadap kegiatan operasional, hukum, kondisi keuangan, dan kelangsungan usaha perseroan. 

Sementara itu, Direktur Penelitian Wood Mackenzie Angus Rodger dalam keterangan tertulis, menilai bahwa pembicaraan mengenai rencana pengambilalihan Ophir Energy oleh Medco Energi merupakan langkah berani. Meski belum ada nilai spesifik untuk akuisisi tersebut, karena masih menunggu kepastian penawaran hingga 28 Januari 2019. 

Sektor hulu yang dimiliki Ophir Energy meliputi aset di Thailand, Vietnam, Indonesia, Malaysia, Guinea Khatulistiwa, dan Tanzania. Ophir juga memiliki eksplorasi di Meksiko dan Bangladesh.

“Ini langkah berani dari Medco. Jika berhasil, ini akan menciptakan kekuatan sektor hulu di Asia Tenggara,” ungkap Rodger.

Saat ini, produksi Ophir Energy sebesar 25 ribu BOEPD. Jika dikombinasikan dengan target 2018 Medco yang sebanyak 85 ribu BOEPD, akan menghasilkan total produksi hingga 110 ribu BOEPD. Langkah ini akan menjadikan Medco Energi sebagai perusahaan migas swasta terbesar ketujuh di Asia Tenggara, di atas Hess dan BP dan setelah Repsol dan Total.

Akuisisi ini juga menambah eksposur non-Asia dengan menambahkan opsi pertumbuhan di Tanzania dan Guinea Khatulistiwa untuk meningkatkan posisi yang ada di Libya, Oman, Yaman, Tunisia, dan Amerika Serikat, serta akan menawarkan eksposur ke hotspot hulu global di lepas pantai Meksiko, di mana Ophir baru-baru ini berpartisipasi di tiga blok. 

Setelah akuisisi Ophir atas aset-aset Asia Santos tahun lalu, menurut Angus, telah mendekatkan poros portofolio perusahaan menuju pertumbuhan Asia, mengingat proyek FLNG Fortuna yang bermasalah di Guinea karena sulit mendapatkan pendanaan.

Pinjaman US$ 500 Juta

Sebelumnya, dua anak usaha Medco Energi, yaitu PT Medco E&P Malaka dan PT Medco E&P Tomori Sulawesi, meraih pinjaman sebesar US$ 500 juta dari sindikasi 15 bank. Sekretaris Perusahaan Medco Energi Siendy K Wisandana mengatakan, pada awalnya, pinjaman berasal dari ANZ, Societe Generale (Socgen), dan ING Bank sebesar US$ 500 juta. Kemudian ketiga bank tersebut mengalihkan eksposurnya ke 12 bank lainnya.

“Dengan begitu, sebanyak 12 bank ini ikut berpartisipasi. Ini kan biasa sindikasi,” kata Siendy kepada Investor Daily.

Sementara itu, seperti dilansir Bloomberg, sebanyak 12 bank yang berpartisipasi dalam sindikasi tersebut adalah Bank Mandiri US$ 40,25 juta, DBS sebesar US$ 40,25 juta, BNP Paribas US$ 22,75 juta, dan Credit Agricole CIB (CA-CIB) US$ 22,75 juta.

Selanjutnya Natixis sebesar US$ 22,75 juta, Standard Chartered US$ 22,75 juta, dan Sumitomo Mitsui Banking Corporation (SMBC) US$ 22,75 juta. Adapun lead arranger HSBC sebesar US$ 19,5 juta, sedangkan arranger Mizuho US$ 19,5 juta, MUFG senilai US$ 17 juta, dan UOB sebesar US$ 17 juta. Menurut Siendy, pinjaman tersebut ditujukan untuk keperluan pengembangan dan refinancing lapangan Blok A Aceh dan Senoro Sulawesi. 

“Hanya untuk itu, tidak boleh digunakan untuk tujuan lainnya,” ujar dia. 

Medco Energijuga telah meraih persetujuan pemegang saham untuk memangkas target dana penambahan modal tanpa hak memesan efek terlebih dahulu (non-HMETD) dari Rp 2,31 triliun menjadi Rp 1,54 triliun. Perubahan target dana tersebut disebabkan pergerakan harga saham perseroan, sehingga asumsi harga pelaksanaan diubah dari Rp 1.306 menjadi Rp 869 per saham.

Direktur Utama Medco Energi Hilmi Panigoro mengatakan, perseroan telah mengajukan kembali rencana non-HMETD maksimum 10% dalam rapat umum pemegang saham luar biasa (RUPSLB) pada 15 November 2018. Adapun perseroan memiliki waktu selama dua tahun untuk merealisasikan rencana penambahan modal melalui non-HMETD.

Lebih lanjut Hilmi menuturkan, pihaknya merasa perlu berhati-hari dan bersikap konservatif dalam menentukan pilihan dalam mengelola struktur permodalan perusahaan.

“Menanggapi pasar komoditas, dan ekuitas dunia yang sedang tidak stabil, kami memilih berhati-hati, dan konservatif,” tegas dia.

Terkait rencana menyelenggarakan non-HMETD, manajemen Medco dalam keterangan resmi pada 8 Oktober 2018, mengaku sedang mengincar investor strategis. Secara rinci, investor strategis yang diincar merupakan investor keuangan (Financial investor).

Investor Daily, Page-13, Thursday, Jan 3, 2019

During 2019 Pertamina EP Drill Target 94 Wells

PT Pertamina EP, a subsidiary of PT Pertamina (Persero) as well as Cooperation Contract Contractors (KKKS) under the coordination of SKK Migas, is committed to pursuing oil and gas production in 2019. One strategy is drilling 94 wells and 243 Workover wells throughout Indonesia.

Nanang Abdul Manaf, President Director of PT Pertamina EP, said that the company targets 82,500 BOPD of oil and 768 MMSCFD of gas in 2019. The company's strategy is to pursue the lifting by making production earlier.

"We believe that maximizing the use of time can provide better results," he said.

PT Pertamina EP has a very wide working area in Indonesia and is supported by reliable human resources. The area of ​​work is a challenge and an opportunity for Pertamina EP to be able to maximize production according to the agreed work plan.

"We continue to remind you to run operations with excellence and zero accident. For us, safety is priority. All workers and partners "must work by paying attention to work safety rules," he explained.

Director of Operation and Production of PT Pertamina EP, Chalid Said Salim, said that for the strategy to achieve employment in 2019, his party focuses on executing the drilling work program. They also synergize the functions of both core business functions and their support.

"We continue to monitor integrated procurement processes, monitor physical progress and costs regularly, as well as cost effectiveness," Chalid added.

IN INDONESIAN

Selama 2019 Pertamina EP Target Bor 94 Sumur

PT Pertamina EP, anak usaha PT Pertamina (Persero) sekaligus Kontraktor Kontrak Kerja Sama (KKKS) di bawah koordinasi SKK Migas berkomitmen mengejar produksi migas di tahun 2019. Salah satu strategi melakukan pengeboran 94 sumur dan 243 sumur Workover seluruh Indonesia.

Presiden Direktur PT Pertamina EP Nanang Abdul Manaf mengatakan pihaknya mentargetkan minyak sebesar 82.500 BOPD dan gas 768 MMSCFD di tahun 2019 ini. Adapun strategi perusahaan untuk mengejar lifting tersebut dengan melakukan produksi lebih dini.

“Kami percaya dengan memaksimalkan penggunaan waktu dapat memberikan hasil yang lebih baik,” ujarnya. 

PT Pertamina EP mempunyai wilayah kerja yang sangat luas di Indonesia dan didukung dengan sumber daya manusia handal. Luas wilayah kerja menjadi tantangan dan peluang tersendiri bagi Pertamina EP agar mampu memaksimalkan hasil produksi sesuai rencana kerja yang disepakati.

“Kami terus mengingatkan untuk menjalankan operasional dengan excellent serta zero accident. Bagi kami, safety is priority. Seluruh pekerja dan mitra

wajib bekerja dengan memperhatikan kaidah keselamatan kerja,” jelasnya.

Direktur Operasi dan Produksi PT Pertamina EP, Chalid Said Salim mengatakan untuk strategi pencapaian kerja di 2019, pihaknya fokus mengeksekusi program kerja pemboran. Mereka juga melakukan sinergi antar fungsi baik fungsi core business maupun supportnya.

“Kami terus melakukan monitoring terintegrasi proses pengadaan, monitoring progress fisik dan biaya secara rutin, serta cost effectiveness,” imbuh Chalid.

Radar Gresik, Page-5, Thursday, Jan 3, 2019

Pertamina EP Pumps Oil and Gas Production in the Milk Base

PT Pertamina EP is committed to increasing oil and gas reserves. The subsidiary of PT Pertamina has just held a Radiatus Madu (RDM) well exploration 1 in the working area of ​​Pertamina EP Asset 1 Pangkalan Susu Field in Lubuk Kasih Village, West Brandan District, Langkat Regency, North Sumatra.

President Director of PT Pertamina EP, Nanang Abdul Manaf, said that the drilling of RDM-1 exploration wells was an attempt to find new oil and gas reserves. With this activity, production from the Pangkalan Susu Field is predicted to rise.

Currently, oil production from Pangkalan Susu Field is around 450 barrels of oil per day (bopd) and is projected to increase to the level of 1,000 bopd in mid-January this year. These estimates are in line with the increase in Batumandi-1 onshore well production volume of 350 bopd. The oil and gas well is in Paya Tusam Village, Wampu District, Langkat.

"In the RUM-1 well drilling, Pertamina EP collaborates with PT Pertamina Drilling Services Indonesia, which is also a Pertamina subsidiary in the upstream sector," Nanang said on the sidelines of the RDM-1 well drilling in Lubuk Kasih, Langkat North Sumatra.

Pertamina EP's management projects that RDM-1 well reserves will reach around 22 million barrels of oil equivalent (mmboe). The capacity projection consists of 10.8 million barrels of oil and 62.8 billion cubic feet of gas (BCFG).

Drilling of RDM-1 exploration wells uses a PDSI N110 / 59 Rig with a power of 1,500 horsepower (HP).

"The total investment for this drilling activity is around the US $ 13 million or equivalent to Rp. 188.5 billion (exchange rate of Rp. 14,500 per US dollar)," Nanang said.

Director of Exploration and Discovery of New Reserves of PT Pertamina EP, Achmad Alfian Husen, said that the exploration drilling of RDM-1 wells was carried out to a depth of 2,125 meters.

Pertamina EP management expects drilling activities to penetrate several reservoir layers of new oil reserves to increase the life cycle of the Pangkalan Susu Field.

"If the results are positive, production activities can be carried out in the next three years, because there must be preparation for POD (the plan of development) and others," Alfian said.

President Director of PT Pertamina Drilling Services Indonesia (PDSI), Budi Nugraha Pangaribuan, explained that his party supports the activities of the wells conducted by PT Pertamina EP with operations other than 24 hours. He stated the drilling equipment was ready 100% and ready to be operated.

"Hopefully the RDM-1 well exploration drilling activities will produce oil and gas reserves that are in line with the projections and expectations of Pertamina EP," he said.

Kontan, Page-14, Thursday, Jan 3, 2019

Pertamina Will Buy Oil and Gas Contractor Oil

11 oil and gas contractors have reportedly agreed to sell crude oil to Pertamina

The state-owned oil company, PT Pertamina, has the opportunity to suppress crude oil imports. This is because the oil and gas company has obtained a contract to purchase crude oil from a private oil and gas contractor (KKKS).

PT Chevron Pacific Indonesia

Purchased commodities are domestic oil production (DMO). One of the crude oil purchased is oil produced by PT Chevron Pacific Indonesia, totaling 90,000 barrels per day (bpd). Even 11 other oil contractors have also agreed to buy crude oil by Pertamina.

The Director General of Oil and Gas (Director General of Oil and Gas) of the Ministry of Energy and Mineral Resources (ESDM), Djoko Siswanto confirmed this. He said, Chevron had approved the production of crude oil sold to Pertamina as much as 90,000 bpd.

However, Djoko is still reluctant to disclose the taxation issue which has been a problem. He only said that the tax issue was no longer a problem.

"The tax is normal. Try asking, I have not received a written report. Ask directly to Pertamina or Chevron," he said

In addition to Chevron, Pertamina has obtained a contract to purchase crude oil from other contractors. The number is about 11 KKKS with the target of adding 225,000 bpd of crude oil.

"It has been dozens of contractors who deal with Pertamina. If possible, the total volume is 225,000 bpd," he said.

The obligation of the KKKS to sell crude oil to the domestic market, especially Pertamina, is contained in the ESDM Minister of Energy and Mineral Resources Regulation Number 42/2018 concerning the Priority for Utilizing Petroleum for Fulfilling Domestic Needs.

The regulation was issued as an attempt by the government to suppress crude oil imports, Article 3 of the regulation states, contractors or affiliates are obliged to offer petroleum contractor parts to Pertamina and or business entities holding petroleum processing business licenses.

The offer obligation is carried out no later than three months before the commencement of the export recommendation period for all volumes of petroleum in the contractor's part by conducting purchasing negotiations in the normal manner of the business.

Regarding the results of the negotiations, Pertamina can directly appoint contractors to purchase petroleum contractors and Pertamina can hold long-term contracts for 12 months.

Previously Pertamina wanted the purchase of crude oil from contractors using rupiah. But Djoko said that the purchase should be made in business to business (B to B) and not the obligation of the KKKS to sell using rupiah.

Mutual benefit

Previously, PT Pertamina's Retail Marketing Director, Mas'ud Khamid, said that dozens of oil produced in Indonesia could be processed at Pertamina's refineries. That way, Pertamina is ready to buy all the oil produced by the KKKS.

Petronas

The progress is still negotiating oil purchases using the rupiah. Mas'ud said, one of the contractors who agreed to transact using rupiah was Petronas. He reasoned, the purchase of crude oil from the KKKS could suppress Pertamina's imports. On the other hand, transactions with the rupiah are expected to increase the strengthening of the rupiah.

Fahmy Radhi

Energy and Economics Observer at Gadjah Mada University (UGM), Fahmy Radhi assessed that the sale of crude oil from contractors to Pertamina provides mutual benefits for both. For example, the KKKS does not need to export crude oil, in the sense of reducing transportation, export and logistics costs. As for Pertamina, there is no need to import the oil needed, so that it can reduce the volume of imports of oil needed.

"This will be able to reduce the oil balance deficit, which has so far been higher than exports," he said.

Most importantly, said Fahmy, the price of selling KKKS oil to Pertamina cannot be determined by the government, because it will harm the KKKS.

IN INDONESIAN

Pertamina Akan Membeli Minyak Kontraktor Migas

Sebanyak 11 kontraktor migas kabarnya sudah setuju menjual minyak mentah ke Pertamina

Perusahaan minyak milik negara, PT Pertamina, berpeluang menekan impor minyak mentah. Sebab, perusahaan migas ini telah mendapatkan kontrak pembelian minyak mentah dari kontraktor migas swasta (KKKS).

Komoditas yang dibeli merupakan produksi minyak dalam negeri atau domestic market obligation (DMO). Salah satu minyak mentah yang dibeli adalah minyak produksi PT Chevron Pacific Indonesia, sebanyak 90.000 barel per hari (bph). Bahkan 11 kontraktor minyak lainnya kabarnya juga sudah menyepakati pembelian minyak mentah oleh Pertamina.

Direktur Jenderal Minyak dan Gas Bumi (Dirjen Migas) Kementerian Energi dan Sumber Daya Mineral (ESDM), Djoko Siswanto membenarkan hal tersebut. Dia bilang, Chevron sudah merestui minyak mentah hasil produksinya dijual kepada Pertamina sebanyak 90,000 bph.

Namun Djoko masih enggan mengungkapkan perihal perpajakan yang selama ini menjadi kendala. Dia hanya bilang soal perpajakan sudah tidak ada masalah lagi. 

"Pajaknya normal saja. Coba saja tanya, saya belum dapat laporan tertulis. Tanya langsung ke Pertamina atau Chevron," ujar dia

Selain Chevron, Pertamina sudah memperoleh kontrak pembelian minyak mentah kepada kontraktor lainnya. Jumlahnya sekitar 11 KKKS dengan target penambahan minyak mentah sebanyak 225.000 bph. 

"Sudah belasan kontraktor yang deal dengan Pertamina. Kalau bisa semuanya, total volumenya 225.000 bph," ungkap dia.

Kewajiban KKKS menjual rninyak mentah ke pasar dalam negeri khususnya Pertamina ada didalam dalam Peraturan Menteri Energi dan Sumber Daya Mineral ESDM Nomor 42/2018 tentang Prioritas Pemanfaatan Minyak Bumi untuk Pemenuhan Kebutuhan Dalam Negeri. 

Regulasi tersebut dikeluarkan sebagai upaya pemerintah menekan impor minyak mentah, Pasal 3 regulasi itu menyebutkan, kontraktor atau afiliasinya wajib menawarkan minyak bumi bagian kontraktor ke Pertamina dan atau badan usaha pemegang izin usaha pengolahan minyak bumi.

Kewajiban penawaran tersebut dilaksanakan paling lambat tiga bulan sebelum dimulainya periode rekomendasi ekspor untuk seluruh volume minyak bumi bagian kontraktor dengan melakukan negosiasi pembelian secara kelaziman bisnis.

Terhadap hasil negosiasi itu, Pertamina bisa melakukan penunjukan langsung kontraktor untuk pembelian minyak bumi bagian kontraktor dan Pertamina dapat mangadakan kontrak jangka panjang selama 12 bulan.

Sebelumnya Pertamina menginginkan pembelian minyak mentah dari kontraktor menggunakan rupiah. Tapi Djoko mengatakan seharusnya pembelian itu dilakukan secara business to business (B to B) dan bukan menjadi kewajiban KKKS menjual memakai rupiah.

Saling untung

Sebelumnya Direktur Pemasaran Retail PT Pertamina, Mas'ud Khamid mengatakan, seluluh minyak hasil produksi di Indonesia bisa diolah di kilang milik Pertamina. Dengan begitu, Pertamina siap membeli semua minyak yang dihasilkan KKKS.

Adapun progresnya masih negosiasi pembelian minyak menggunakan rupiah. Mas'ud bilang, salah satu kontraktor yang setuju bertransaksi memakai rupiah adalah Petronas. Dia beralasan, pembelian minyak mentah dari KKKS bisa menekan impor Pertamina. Di sisi lain, transaksi dengan rupiah diharapkan bisa meningkatkan penguatan rupiah.

Pengamat Energi dan Ekonomi Universitas Gadjah Mada (UGM), Fahmy Radhi menilai, penjualan minyak mentah dari kontraktor ke Pertamina memberikan mutual benefit bagi keduanya. Misalnya, KKKS tidak perlu mengekspor minyak mentah, dalam arti mengurangi biaya transport, ekspor, logistik. Sedangkan bagi Pertamina, tidak perlu harus impor minyak yang dibutuhkan, sehingga bisa mengurangi volume impor dari minyak yang dibutuhkan. 

"Ini akan dapat mengurangi defisit neraca minyak yang selama ini impornya lebih tinggi daripada ekspor," ungkap dia.

Yang terpenting, kata Fahmy, harga penjualan minyak KKKS kepada Pertamina tidak bisa ditentukan pemerintah, karena akan merugikan KKKS.

Kontan, Page-14, Thursday, Jan 3, 2019

Medco is Ready to Acquire Ophir Energy

Medco Energi Global Pte Ltd (MEG), a subsidiary of PT Medco Energi Internasional Tbk (MEDC), is exploring the acquisition of Ophir Energy Ltd's shares engaged in upstream oil and gas exploration and production. The acquisition will make seven private companies with the largest oil and gas production in ASEAN defeat Hess and BP.

BP Oil adn Gas

Medco Energy International Director Anthony R. Mathias said his party was still discussing Ophir Energy's offer to buy in cash all shares that had been and will be issued.

Ophir Energy's

"There has been no value submitted, the amount of funds provided, the amount of securities to be purchased, and the relationship between the parties that will transact, and not yet known," he said.

The corporate action was carried out for the development of the MEG business. If the acquisition is successful, Medco's oil and gas production will increase to 110 thousand boepd (barrel of oil equivalent per day). Medco's oil and gas production in 2018 is around 85 thousand boepd, while the oil and gas production of listed companies listed on the London stock exchange reaches 25 thousand boepd.

Ophir has upstream oil and gas assets in Thailand, Vietnam, Indonesia, Malaysia, and in the equator of Guinea and Tanzania. In addition, Ophir has exploration areas in Mexico and Bangladesh.

"For Medco, successful acquisitions will substantially strengthen the company's footprint in the region and diversify its experienced portfolio in Indonesia," added Wood Mackenzie Angus Rodger, Research Director.

The move will also increase oil and gas development in Tanzania and Guinea. In Indonesia, Ophir has 67.5 per cent of management rights in PSC Madura, 45 per cent of management rights in the Sampang PSC, and three PSCs in Bangkanai, Central Kalimantan, which have been producing. In addition, Ophir has two deep-sea exploration licenses in the West Papua Block IV and the Aru Block.

IN INDONESIAN

Medco Siap Akuisisi Ophir Energy

Medco Energi Global Pte Ltd (MEG), anak usaha PT Medco Energi Internasional Tbk (MEDC), sedang menjajaki akuisisi saham Ophir Energy Ltd yang bergerak di bidang eksplorasi dan produksi hulu migas. Akuisisi tersebut akan membuat tujuh perusahaan swasta dengan produksi migas terbesar di ASEAN mengalahkan Hess dan BP.

Direktur Medco Energi Internasional Anthony R. Mathias mengatakan, pihaknya masih membahas tawaran Ophir Energy untuk membeli secara tunai seluruh saham yang telah dan akan dikeluarkan.

"Belum ada nilai yang diajukan, jumlah dana yang disediakan, jumlah efek yang akan dibeli, dan belum diketahui hubungan pihak-pihak yang akan bertransaksi," ujarnya.

Aksi korporasi itu dilakukan untuk pengembangan usaha MEG. Jika akuisisi tersebut sukses, produksi migas Medco akan meningkat menjadi 110 ribu boepd (barel oil equivalen per day). Produksi migas Medco pada 2018 sekitar 85 ribu boepd, sedangkan produksi migas emiten yang terlisting di bursa saham London tersebut mencapai 25 ribu boepd.

Ophir memiliki aset hulu migas di Thailand, Vietnam, Indonesia, Malaysia, serta di ekuator Guinea dan Tanzania. Selain itu, Ophir memiliki wilayah eksplorasi di Meksiko dan Bangladesh. 

”Bagi Medco, akuisisi yang berhasil akan secara substansial memantapkan jejak perusahaan di kawasan dan mendiversifikasikan portofolio yang berpengalaman di Indonesia," imbuh Direktur Penelitian Wood Mackenzie Angus Rodger. 

Langkah tersebut juga akan menambah pengembangan migas di Tanzania dan Guinea. Di Indonesia, Ophir memiliki 67,5 persen hak kelola di PSC Madura, 45 persen hak kelola di PSC Sampang, dan tiga PSC di Bangkanai, Kalimantan Tengah, yang telah berproduksi. Selain itu, Ophir memiliki dua lisensi eksplorasi laut dalam di Blok Papua Barat IV dan Blok Aru.

Jawa pos, Page-5, Thursday, Jan 3, 2019

BP Focuses on Completing Tangguh LNG Train 3

BP, the oil and gas giant based in London, through its subsidiary in Indonesia, BP Berau Ltd. still focusing on completing the Tangguh LNG Train 3 Refinery natural gas processing facility project in Bintuni Bay, West Papua.

BP Oil and Gas

BP Indonesia Head of Country Moektianto Soeryowibowo claimed that the construction of a train unit of 3 liquefied natural gas (LNG) units was in accordance with the plan.

According to him, until the end of 2018, the construction of onshore gas facilities has reached more than 50%. Construction of offshore gas facilities has reached more than 80%.

"In 2019 we are still focused on Train 3. We finish, we focus first. It is still in the construction phase and is still on schedule, "he said.

Train Tangguh Block

The Tangguh LNG Plant is a natural gas processing facility into liquefied natural gas. Natural gas from several oil and gas blocks around Bintuni Bay is supplied to the Tangguh LNG Plant operated by BP Berau Ltd. Some oil and gas working areas that supply natural gas to the LNG plant include Blok Berau, Wiriagar and Muturi.

Moektianto explained, two offshore platforms were installed. BP is completing the installation of pipelines to transport gas from the offshore platform to the Train 3 facility on land. In relation to the activities of working on gas facilities offshore, BP Indonesia is only drilling production wells. However, Moektianto has not been able to confirm when the well drilling is completed.

"We don't know yet, but it's part of the progress and offshore. On-land facilities, namely train facilities, we pursue, "he said.

Natural gas is processed into liquefied natural gas to facilitate the process of transporting cargo to other regions. For example, LNG and Tangguh, West Papua are transported to a regasification facility in Arun, Aceh to supply generator and industrial fuel. The British oil and gas company targets the Tangguh Train-3 Refinery to start producing liquefied natural gas by 2020.

The US $ 8 billion gas project will have an LNG production capacity of 3.8 million tons per year, equivalent to 700 million cubic feet per day (MMscfd) and 3,200 barrels per day of natural gas. With an additional capacity of 3.8 million tons and Train 3; the total production capacity of the Tangguh LNG refinery plus Train 1 and 2 will reach 11.4 million tons per year. The current capacity of Train 1 and LNG Train 2 is 7.6 million tons per year.

SUPPLY OF PLN

A total of 2.85 mtpa of LNG from the Tangguh Train 3 Train Station will be allocated to a power plant owned by the State Electricity Company (Persero) with a total capacity of 3,000 megawatts (MW). Arcandra Tahar, Deputy Minister of Energy and Mineral Resources, previously said that according to the final investment decision signed in 2016, 75% of liquefied natural gas or 2.85 mtpa of Tangguh LNG Train 3 will be allocated as supply for PLN.

BP Berau Ltd. has allocated LNG from Train 1 and Train 2 for power plants and industry since 2013 with the possibility of additional supply to the country. When unit 3's natural gas processing facility operates, Arcandra said, BP will also involve the local community working in that location.

"With the commencement of Train 3, there will be around 5,000 workers who can be absorbed with most of them from local communities."

CNOOC

The Tangguh refinery is operated by BP Indonesia with a stake of around 37.16%. Other BP partners include MI Berau BM (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau) Ltd. (12.23%), KG Berau / KG Wiriagar (10%), Indonesia Natural Gas Resources Muturi Inc. (7.35%), and Talisman (3.06%).

The gas supply for the Java 1 Gas and Steam Power Plant (PLTGU) will be brought in from LNG Kilang Tangguh. The integrated Java 1 PLTGU and gas infrastructure project began to enter the construction phase since the end of 2018. The 1,776 MW gas-fired power plant is targeted to start commercial operations in December 2021. PT Pertamina (Persero) as the owner of the Java 1 PLTGU project also built a floating storage regacification unit (FSRU) around the plant.

IN INDONESIAN

BP Fokus Selesaikan Train 3 LNG Tangguh

BP raksasa minyak dan gas bumi yang bermarkas di London, melalui anak usahanya di Indonesia BP Berau Ltd. masih fokus menyelesaikan proyek fasilitas pemrosesan gas alam Train 3 Kilang LNG Tangguh di Teluk Bintuni, Papua Barat.

Head of Country BP Indonesia Moektianto Soeryowibowo mengklaim bahwa pengerjaan fasilitas pengolahan (train) unit 3 gas alam cair (liquefied natural gas/LNG) itu masih sesuai dengan rencana.

Menurutnya, sampai dengan akhir 2018, konstruksi fasilitas gas di darat (onshore) telah mencapai lebih dari 50%. Kontruksi fasilitas gas lepas pantai (offshore), telah mencapai lebih dari 80%.

“Pada 2019 kami masih fokus di Train 3. Kami selesaikan, kami fokus itu dulu. Sekarang masih tahap konstruksi dan masih sesuai dengan jadwal," katanya.

Kilang LNG Tangguh merupakan fasilitas pemrosesan gas alam menjadi gas alam cair. Gas alam dari beberapa blok migas di sekitar Teluk Bintuni disuplai ke Kilang LNG Tangguh yang dioperatori oleh BP Berau Ltd. Beberapa wilayah kerja migas yang memasok gas alam ke kilang LNG itu antara lain Blok Berau, Wiriagar, dan Muturi.

Moektianto memaparkan, dua anjungan lepas pantai telah terpasang. BP sedang menyelesaikan pemasangan pipa untuk mengalirkan gas dari anjungan lepas pantai ke fasilitas Train 3 yang berada di darat. Terkait dengan kegiatan pengerjaan fasilitas gas di lepas pantai, BP Indonesia hanya melakukan pengeboran sumur produksi. Namun, Moektianto belum bisa memastikan kapan pengeboran sumur tersebut selesai. 

“Persisnya belum tahu, tetapi itu bagian dan progres offshore. Fasilitas di darat, yaitu fasilitas train, kami kejar,” katanya.

Gas alam diolah menjadi gas alam cair untuk memudahkan proses pengangkutan dengan kargo ke wilayah lain. Misalnya, LNG dan Tangguh, Papua Barat diangkut ke fasilitas regasifikasi di Arun, Aceh untuk menyuplai bahan bakar pembangkit dan industri. Perusahaan migas dari Inggris itu menargetkan Kilang Tangguh Train-3 bisa mulai memproduksi gas alam cair pada 2020.

Proyek gas senilai US$8 miliar ini akan memiliki kapasitas produksi LNG sebesar 3,8 juta ton per tahun setara dengan gas alam 700 juta kaki kubik per hari (MMscfd) dan kondesat sebanyak 3.200 barel per hari. Dengan tambahan kapasitas 3,8 juta ton dan Train 3; total kapasitas produksi kilang LNG Tangguh ditambah Train 1 dan 2 akan mencapai 11,4 juta ton per tahun. Kapasitas Train 1 dan Train 2 LNG Tangguh saat ini sebesar 7,6 juta ton per tahun.

SUPLAI PLN

Sebanyak 2,85 mtpa LNG dari Kilang Tangguh Train 3 akan dialokasikan ke pembangkit listrik milik PT Perusahaan Listrik Negara (Persero) dengan total kapasitas 3.000 megawatt (MW). Wakil Menteri Energi dan Sumber Daya Mineral Arcandra Tahar sebelumnya mengatakan, sesuai dengan keputusan final investasi yang sudah ditandatangani pada 2016, gas alam cair sebanyak 75% atau 2,85 mtpa dari Train 3 LNG Tangguh akan dialokasikan sebagai pasokan untuk PLN.

BP Berau Ltd. telah mengalokasikan LNG dari Train 1 dan Train 2 untuk pembangkit listrik dan industri sejak 2013 dengan kemungkinan tambahan suplai ke dalam negeri. Saat fasilitas pemrosesan gas alam unit 3 beroperasi, Arcandra menuturkan, pihak BP juga akan melibatkan masyarakat setempat bekerja di lokasi tersebut.

“Dengan mulainya Train 3 itu ada sekitar 5.000 tenaga kerja nantinya yang dapat diserap dengan sebagian besar akan diambil dari masyarakat lokal setempat.”

Kilang Tangguh dioperasikan oleh BP Indonesia dengan kepemilikan saham sekitar 37,16%. Mitra BP lainnya antara lain, MI Berau BM (16,30%), CNOOC Muturi Ltd. (13,90%), Nippon Oil Exploration (Berau) Ltd. (12.23%), KG Berau/ KG Wiriagar (10%), Indonesia Natural Gas Resources Muturi Inc. (7,35%), dan Talisman (3,06%).

Suplai gas untuk Pembangkit Listrik Tenaga Gas dan Uap (PLTGU) Jawa 1 akan didatangkan dari LNG Kilang Tangguh. Proyek terintegrasi PLTGU Jawa 1 dan infrastruktur gas itu mulai memasuki tahap kontruksi sejak akhir 2018. Pembangkit listrik berbahan bakar gas dengan kapasitas 1.776 MW itu ditargetkan mulai beroperasi secara komersial pada Desember 2021.

PT Pertamina (Persero) sebagai pemilik proyek PLTGU Jawa 1 juga membangun fasilitas penyimpanan dan regasifikasi terapung [floating storage regacification unit/FSRU) di sekitar pembangkit.

Bisnis Indonesia, Page-22, Thursday, Jan 3, 2019

3 Oil and Gas Blocks Auction Again

The Ministry of Energy and Mineral Resources (ESDM) will auction off three oil and gas blocks that were not sold in 2018. The three blocks are the Selat Panjang (WK) Working Area, Makassar Strait, and West Kampar.

ESDM Ministry's Director General of Oil and Gas Djoko Siswanto said the auction for the working area in 2019 still refers to the experience of last year which was divided into three stages. According to him, the government's desire to continue auctioning the WK that failed to be auctioned was considered reasonable.

"Now there are still three stages, which I remember that must have been auctioned [this year] that Makassar Strait is not yet, then the Long Strait, and West Kampar," he said.

For the Kampar Riau Block, the ESDM Ministry actually auctioned it on September 19 to October 22, 201. Unfortunately, investors have not been interested in the block which has an estimated reserve of 8.3 MMSTB (oil and condensate). Initially the block was managed by PT Sumatera Persada Energi (SPE). Then on December 28, 2008, Oilex Ltd purchased management rights of 45% of PSE. On the way, at the end of December 2016, PSE was in bankruptcy.

The production contract for the Kampar Riau West Block was signed in October 2005 with a contract period of 50 years. Termination of the SPE contract as manager of the Kampar Block is realized through a letter from the Minister of Energy and Mineral Resources with Number 2974/2018 signed on August 15 2018. Similar to West Kampar; The Long Strait Block, located in Riau, will be terminated on September 5, 2021 and attempted to be auctioned again.

Because, Petroselat Ltd, which is a subsidiary of PT Sugih Energy Tbk., As the operator, was declared bankrupt on July 5, 2017, so the government again auctioned off the oil and gas block.

Especially for the Makassar Strait Block, there are actually investors who are interested in managing this working area. In the conventional oil and gas working area Phase II 2018, Eni Muara Bakau B.V has submitted a proposal. 

ENI from Italy

    

  Then, the Ministry of Energy and Mineral Resources rejected the proposal because the KKKS (contractor of cooperation contract) ENI from Italy did not meet the requirements provided by the government.

ENI from Italy

At that time, the ESDM Ministry thought the Italian ENI investor proposal contained strategic requirements that made Eni's offer fail. But from the commercial side, such as cooperation bonuses and definite work commitments, Eni's proposal was deemed feasible. 

ENI from Italy

   Djoko ensured that the three blocks would be re-auctioned, considering the government had conducted an evaluation, specifically related to the Makassar Strait Block. The government has successfully auctioned 36 oil and gas blocks using gross split schemes.

IN INDONESIAN

3 Blok Migas Dilelang Lagi

Kementerian Energi dan Sumber Daya Mineral (ESDM) kembali akan melelang tiga blok minyak dan gas yang tidak laku pada 2018. Ketiga blok tersebut adalah Wilayah Kerja (WK) Selat Panjang, Makassar Strait, dan West Kampar.

Dirjen Migas Kementerian ESDM Djoko Siswanto mengatakan, lelang wilayah kerja pada 2019 tetap mengacu seperti pengalaman tahun lalu yang dibagi menjadi tiga tahap. Menurutnya, keinginan pemerintah untuk tetap melelang WK yang gagal dilelang dianggap wajar.

“Sekarang tetap tiga tahap, yang saya ingat yang pasti dilelang [tahun ini] itu Makassar Strait kan belum, kemudian Selat Panjang, dan West Kampar,” tuturnya.

Untuk Blok Kampar Riau , sebenarnya Kementerian ESDM telah melelangnya pada 19 September - 22 Oktober 2018. Sayangnya, investor belum tertarik pada blok yang memiliki estimasi cadangan sebesar 8,3 MMSTB (minyak berikut kondensat) tersebut. Awalnya blok tersebut dikelola oleh PT Sumatera Persada Energi (SPE). Kemudian pada 28 Desember 2008, Oilex Ltd membeli hak kelola sebesar 45% dari PSE. Dalam perjalanannya, pada akhir Desember 2016, PSE dalam kondisi pailit.

Kontrak bagi hasil Blok West Kampar Riau ditandatangani pada Oktober 2005 dengan jangka waktu kontraknya selama 50 tahun. Pemutusan kontrak SPE sebagai pengelola Blok Kampar diwujudkan melaui surat Menteri ESDM dengan Nomor 2974/2018 yang ditandatangani pada 15 Agustus 2018. Serupa dengan West Kampar; Blok Selat Panjang, yang berlokasi di Riau, akan terminasi pada 5 September 2021 dan berupaya kembali dilelang. 

Pasalnya, Petroselat Ltd yang merupakan anak usaha dari PT Sugih Energy Tbk., sebagai operator telah dinyatakan pailit pada 5 Juli 2017, sehingga pemerintah kembali melelang blok migas tersebut.

Khusus untuk Blok Makassar Strait, sebenarnya ada investor yang tertarik untuk mengelola wilayah kerja ini. Dalam wilayah kerja migas konvensional Tahap ll 2018, Eni Muara Bakau B.V telah memasukkan proposal. Kemudian, Kementerian ESDM menolak proposal karena KKKS (kontraktor kontrak kerja sama) ENI dari Italia tersebut tidak memenuhi persyaratan yang diberikan pemerintah.

Saat itu, Kementerian ESDM beranggapan proposal investor ENI Italia tersebut mengandung persyaratan strategis yang membuat penawaran Eni gagal. Namun dari sisi komersial, seperti bonus kerja sama dan komitmen kerja pasti, proposal Eni sudah dianggap layak. 

   Djoko memastikan bahwa tiga blok tersebut akan dilelang ulang, mengingat pemerintah sudah melakukan evaluasi, khususnya terkait dengan Blok Makassar Strait. Pemerintah telah berhasil melelang 36 blok migas dengan menggunakan skema gross split. 

Bisnis Indonesia, Page-3, Thursday, Jan 3, 2019