Luhut Opens New Option for Cilacap Refinery Development

Maritime and Investment Coordinating Minister Luhut Binsar Panjaitan said there were other options for the development of the Cilacap Refinery if PT Pertamina (Persero) and Saudi Aramco did not reach an agreement. This is because both of them are still negotiating about the size of the asset valuation of the Cilacap Refinery.

Luhut Binsar Panjaitan

Pertamina has cooperated with Saudi Aramco to work on this project since 2014. In 2016, both of them even signed a joint venture development agreement (JVDA) agreement. However, until now, the two have not yet formed this joint venture because there is no asset valusi agreement yet.

Saudi Aramco

According to Luhut, Pertamina and Saudi Aramco are still conducting valuations and have not yet finished. The government will evaluate this project because there are still differences in the results of valuations conducted by each oil and gas company around US $ 1.5 billion.

"If it remains that much [the difference in asset valuations], we see other options, there are already other choices," he said in Jakarta.

This asset valuation is needed to fulfill one of the requests of the Saudi Arabian oil and gas company, namely Spin Off Assets to be subsequently included in a joint venture. However, the problem of asset valuation differences in the Cilacap Refinery has dragged on. 

     Director of Processing and Petrochemical Megaproject Ignatius Tallulembang said, this was the umpteenth evaluation done by his side. However, different from before, this valuation was carried out by an international finance advisory firm (international financial advisor) who was jointly appointed by the two companies. The results of this valuation have not yet come out.

"[With Saudi Aramco] already started, move forward," he said after a meeting with Minister Luhut.

He said the results of the asset valuation of the Cilacap Refinery will be released and will be agreed soon at the end of this year. Luhut said, the first valuation was carried out for other purposes, so that it was only used as an estimated project, which was around US $ 2.8 billion. Furthermore, with the approval of Saudi Aramco, Pertamina conducts valuations in accordance with the Financial Services Authority (OJK) standards.

Unfortunately, Saudi Aramco did not agree on the figures resulting from this valuation due to differences in parameters and assumptions. Next, he said, Pertamina conducted a valuation by appointing the best consultant in the international world, namely Price Water House Cooper (PWC). The appointment of the PWC was as required by Saudi Aramco, who asked to appoint one of the world's four major consultants.

Price Waterhouse Coopers (PWC)

However, the results of the PWC valuation, after negotiations, there was still no agreement from Saudi Aramco. Previously, Pertamina had expressed its ability to work on the Cilacap Refinery with or without Saudi Aramco. In fact, Tallulembang mentioned that it had prepared a new scheme. 

     In this new scheme offered, among others, Saudi Aramco began to be involved after Pertamina completed the development of the Cilacap Refinery. Thus, Pertamina will bear the development costs by itself. But it does not rule out the possibility of the company looking for funding partners in completing the refinery project.

In fact, parallel with valuation, it is ready to execute land acquisition for the Cilacap Refinery Project. In addition, the company is also holding an auction to find a contractor working on early work or site development. The signing of the early work contract is targeted to be carried out in December. The Cilacap refinery is targeted to start operating in 2025. 

      After upgrading, the crude oil processing capacity of the Cilacap Refinery will increase from 348 thousand barrels per day (bpd) to 400 thousand bpd. Furthermore, there will be additional production of gasoline (gasoline) 80 thousand bpd, diesel 60 thousand bpd, and aviation fuel of 40 thousand bpd. Fuel production increased significantly because the ability of refineries to process crude oil into finished products (NCI) rose from 74% to 92-98%.

Accelerated

At the same time, Luhut also asked Pertamina to accelerate the work on refinery projects. He requested that the company work on all refinery projects in parallel.

"So it's parallel, so that we can speed up the time maybe biennial, now we are evaluating one by one. "I have already identified, next week Pertamina will report me again about the time table," he said.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif also expressed the same thing. To accelerate the construction of the refinery, he will try to overcome the obstacles of this project, such as regulations, permits, and domestic problems.

"The Coordinating Minister for Maritime Affairs Luhut hopes that soon it will be possible. "In the next five years," he said.

Previously, Tallulembang had conveyed the progress of the refinery projects, where an important stage would be reached by the company in December this year.

"All projects are moving, everything is underway. So we accelerated and everything went according to the target, nothing was left behind, "he said.

Referring to the Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), the investment value of all Pertamina refinery projects reached Rp 643.11 trillion. The entire refinery project is targeted to be completed in 2027. 

     With the construction of the refinery, the company's processing capacity will increase to 2 million bpd with a fuel production rate of 1.7 million bpd, from the current 1 million bpd. Thus, Pertamina will be able to meet the fuel needs in the next five years amounting to 1.7 million bpd, assuming growth in fuel needs is 3-4% per year and current needs are 1.5 million bpd.

IN INDONESIA

Luhut Buka Opsi Baru Pengembangan Kilang Cilacap

Menteri Koordinator Kemaritiman dan Investasi Luhut Binsar Panjaitan menyatakan ada opsi lain untuk pengembangan Kilang Cilacap jika PT Pertamina (Persero) dan Saudi Aramco tidak mencapai kesepakatan. Hal ini mengingat keduanya masih negosiasi soal besaran valuasi aset Kilang Cilacap.

Pertamina telah menggandeng Saudi Aramco untuk menggarap proyek ini sejak 2014 silam. Pada 2016, keduanya bahkan telah meneken perjanjian pembentukan perusahaan patungan (join venture development agreement/JVDA). Namun, hingga kini, keduanya belum juga membentuk perusahaan patungan ini lantaran belum ada kesepakatan valusi aset. 

Menurut Luhut, Pertamina dan Saudi Aramco masih melakukan valuasi dan belum selesai. Pemerintah akan mengevaluasi proyek ini mengingat masih ada perbedaan hasil valuasi yang dilakukan oleh masing-masing perusahaan migas sekitar US$ 1,5 miliar. 

“Kalau masih tetap segitu [selisih valuasi aset], kami melihat pilihan lain, sudah ada pilihan lain,” kata dia di Jakarta.

Valuasi aset ini dibutuhkan untuk memenuhi salah satu permintaan perusahaan migas Arab Saudi itu, yakni Spin Off Aset untuk selanjutnya dimasukkan dalam perusahaan patungan (joint venture). Namun, permasalahan perbedaan valuasi aset Kilang Cilacap ini sudah berlarut-larut. 

     Direktur Megaproyek Pengolahan dan Petrokimia Ignatius Tallulembang menuturkan, ini valuasi yang kesekian kali dilakukan pihaknya. Namun, berbeda dengan sebelumnya, valuasi ini dilakukan oleh perusahaan konsultan pembiayaan internasional (internasional financial advisor) yang ditunjuk bersama oleh kedua perusahaan. Hasil valuasi ini belum keluar.

“[Dengan Saudi Aramco] sudah dimulai, bergerak maju lah,” ujar dia usai rapat dengan Menteri Luhut. 

Hasil valuasi aset Kilang Cilacap disebutnya akan keluar dan segera disepakati akhir tahun ini. Luhut menceritakan, Valuasi yang pertama dilakukan untuk keperluan lain, sehingga hanya digunakan sebagai perkiraan proyek saja, yakni sekitar US$ 2,8 miliar. Selanjutnya, atas persetujuan Saudi Aramco, Pertamina melakukan valuasi sesuai dengan standar Otoritas Jasa Keuangan (OJK). 

Sayangnya, Saudi Aramco tidak menyepakati angka yang dihasilkan dari valuasi ini lantaran adanya perbedaan parameter dan asumsi. Berikutnya, Pertamina disebutnya melakukan valuasi dengan menunjuk konsultan terbaik di dunia internasional, yakni Price Water House Cooper (PWC). Penunjukkan PWC sesuai yang disyaratkan Saudi Aramco yang meminta untuk menunjuk salah satu empat konsultan besar dunia.

Namun, hasil valuasi PWC ini, setelah dilakukan negosiasi, tetap tidak ada kata sepakat dari Saudi Aramco. Sebelumnya, Pertamina pernah mengungkapkan mampu menggarap Kilang Cilacap dengan atau tanpa Saudi Aramco. Bahkan, Tallulembang sempat menyebut telah menyiapkan skema baru. 

      Dalam skema baru ini yang ditawarkan antara lain Saudi Aramco mulai terlibat setelah Pertamina menyelesaikan pengembangan Kilang Cilacap. Sehingga, Pertamina menanggung sendiri biaya pengembangan yang dilakukannya. Namun tidak menutup kemungkinan perseroan mencari mitra pendanaan dalam penyelesaian proyek kilang.

Bahkan, paralel dengan dilakukannya valuasi, pihaknya siap mengeksekusi pengadaan lahan untuk Proyek Kilang Cilacap. Selain itu, perseroan juga sedang menggelar lelang untuk mencari kontraktor yang mengerjakan early work atau penyiapan lokasi (site development). Penandatanganan kontrak pekerjaan early work ini ditargetkan dilakukan pada Desember nanti. 

     Kilang Cilacap ditargetkan mulai beroperasi pada 2025. Pasca upgrading, kapasitas pengolahan minyak mentah Kilang Cilacap akan naik dari 348 ribu barel per hari (bph) menjadi 400 ribu bph. Selanjutnya, akan ada tambahan produksi bensin (gasoline) 80 ribu bph, solar 60 ribu bph, dan avtur 40 ribu bph. Produksi bahan bakar meningkat signifikan lantaran kemampuan kilang mengolah minyak mentah menjadi produk jadi (NCI) naik dari 74% menjadi 92-98%.

Dipercepat

Pada saat yang sama, Luhut juga meminta Pertamina untuk mempercepat pengerjaan proyek-proyek kilang bahan bakar minyak (BBM). Pihaknya meminta agar perseroan menggarap seluruh proyek kilang secara paralel.

“Jadi paralel, sehingga kami bisa percepat waktunya mungkin dua tahunan, sekarang kami evaluasi satu per satu. Tadi sudah di identifikasi, minggu depan Pertamina lapor saya lagi bagaimana time table-nya,” tutur dia.

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif juga mengungkapkan hal yang sama. Untuk mempercepat pembangunan kilang, pihaknya akan berupaya mengatasi hambatan proyek ini, seperti peraturan, perizinan, dan masalah dalam negeri. 

“Pak Menko Maritim Luhut berharap bisa segera mungkin. Dalam lima tahun ke depan lah,” ujarnya.

Sebelumnya, Tallulembang telah menyampaikan progres proyek-proyek kilang ini, di mana tahapan penting akan dicapai perseroan pada Desember tahun ini. 

“Semua proyek sudah bergerak, sudah berlangsung semua. Jadi kami lakukan percepatan dan semua berjalan sesuai target, tidak ada yang tertinggal,” kata dia.

Mengacu data Komite Percepatan Penyediaan Infrastruktur Prioritas (KPPIP), nilai investasi seluruh proyek kilang Pertamina ini mencapai Rp 643,11 triliun. Seluruh proyek kilang perseroan ini ditargetkan selesai pada 2027. Dengan adanya pembangunan kilang maka kapasitas pengolahan perseroan akan naik menjadi 2 juta bph dengan tingkat produksi BBM 1,7 juta bph, dari saat ini 1 juta bph. Sehingga, Pertamina akan mampu memenuhi kebutuhan BBM dalam lima tahun mendatang sebesar 1,7 juta bph, dengan asumsi pertumbuhan kebutuhan BBM 3-4% per tahun dan kebutuhan saat ini 1,5 juta bph.

Investor Daily, Page-9, Tuesday, Nov 12, 2019

The Government Asks for Corridor Block Production Not to Decline

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif urged that oil and gas Corridor Block production be maintained or even increased. This follows that a Corridor Block (2023-2043) production cooperation contract (PSC) has been signed. 

Arifin Tasrif

     Arifin said, after the current contract expired at the Corridor Block was again managed by the existing contractor namely ConocoPhilip (Grissik) Ltd, Talisman Corridor LTd (Repsol), and PT Pertamina Hulu Energi Corridor.

ConocoPhilip

Because the government considers that the existing contractor has good technical and financial skills to continue managing this block. He hopes the existing contractor can make a positive contribution to state revenue and national oil and gas production. 

the Corridor Block

      Especially considering the Corridor Block is one of the largest natural gas producer blocks in Indonesia with gas production of 1,100 million cubic feet per day (million standard cubic feet per day / mmscfd) or 12% of total national production, and oil and condensate 6,600 barrels per day ( bph).

"With the contract extension being signed, so that [the contractor] not only maintains, but also increases the rate of oil and gas production in the Corridor Block, and seeks to discover new oil and gas reserves through exploration activities," he said in Jakarta.

Based on ESDM Ministry data, the new PSC Corridor Block will use a gross split scheme. Regarding the profit sharing (split), for base split and variable split, KKKS received a 48.5% allocation for oil and 53.5% for gas. Furthermore, progressive splits will be adjusted to developments in oil prices and cumulative oil and gas production. 

     Furthermore, the portion of participating interest rights (participating interest / PI) in the Corridor Block will also change after 2023. At present, ConocoPhilips holds a PI of 54%, Repsol 36%, and Pertamina 10%. After the existing PSC ends, ConocoPhilips has a 46% stake, Pertamina 30%, and 24% Repsol.

Repsol Girls

According to Arifin, before the contract was signed, the existing cooperation contract contractor (KKKS) had deposited a signature bonus of US $ 250 million. In addition, the contractor also promised a five-year fixed work commitment (KKP) of US $ 250 million. This number is the second largest since the signing of the contract in Indonesia.

"Hopefully with the signing of the Corridor Block gross split contract, it will hopefully arouse investors' enthusiasm for investment in Indonesia's upstream oil and gas," he said.

Referring to the Ministry of Energy and Mineral Resources data, KKKS has proposed a number of activities that will be carried out using KKP funds. In the first year, the contractor will work on drilling one well in Rowung Lower Palembang-1 worth US $ 2.4 million and 3D seismic acquisition of US $ 23.93 million. In the second year, activities that will be carried out are drilling one well in Suban Lower Palembang-1 US $ 11.6 million and 3D seismic acquisition of US $ 31.53 million.

Following this, activities planned for the third year included the work of Telisa Well with two wells valued at US $ 20 million, 3D seismic acquisition of US $ 25 million, and the development of Suban Far East at US $ 33.04 million. 

     In the fourth year, the contractor will work on Telisa Well one well worth US $ 18.04 million, another prospect of US $ 28.2 million, and 3D seismic acquisition of US $ 20 million. Finally, in the fifth year, the activities that will be carried out are the development of Suban Far East of US $ 8.26 million and other prospects of US $ 28 million.

Although still managed by the existing contractor, the holder of the Corridor Block operator will change. Currently the operator of this block is ConocoPhilips. For three years, after 19 December 2023 to 19 December 2026, ConocoPililip remained the Corridor Block operator. After that, this block will enter the operatorhip transition period, where Pertamina will then switch to the operator. 

     The government did not specify how long this transition period would be. PT Pertamina Hulu Energi Corridor (PHE Corridor) President Director Taufik Aditiyawarman said, based on current data, the Corridor Block has an area of ​​2,095.25 kilometers square (km2) which is mostly located in South Sumatra Province. Pertamina also has four active work areas in the South Sumatra area, namely Pertamina EP Asset 1, Jambi Merang PHE, Ogan Komering PHE, and Raja Tempirai PHE.

IN INDONESIA

Pemerintah Minta Produksi Blok Corridor Tidak Turun

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif mendorong agar produksi migas Blok Corridor bisa dipertahankan atau bahkan dinaikkan. Hal ini menyusul telah ditandatangani kontrak kerja sama atau (production sharing contract/PSC) Blok Corridor untuk 2023-2043. 

     Arifin menuturkan, setelah kontrak yang berlaku saat ini berakhir pada Blok Corridor kembali dikelola oleh kontraktor eksisting yakni ConocoPhilip (Grissik) Ltd, Talisman Corridor LTd (Repsol), dan PT Pertamina Hulu Energi Corridor. 

Pasalnya, pemerintah menilai bahwa kontraktor eksisting memiliki kemampuan teknis dan keuangan yang baik untuk melanjutkan pengelolan blok ini. Pihaknya berharap kontraktor eksisting dapat memberikan kontribusi positif bagi penerimaan negara dan produksi migas nasional. 

     Apalagi mengingat Blok Corridor merupakan salah satu blok produsen gas bumi terbesar di Indonesia dengan produksi gas 1.100 juta kaki kubik per hari (million standard cubic feet per day/ mmscfd) atau 12% dari total produksi nasional, dan minyak dan kondensat 6.600 barel per hari (bph).

“Dengan ditandatanganinya perpanjangan kontrak, agar [kontraktor] tidak hanya mempertahankan, tetapi juga meningkatkan laju produksi migas di Blok Corridor, dan mengupayakan penemuan cadangan migas baru melalui kegiatan eksplorasi,” kata dia di Jakarta.

Berdasarkan data Kementerian ESDM, PSC baru Blok Corridor akan menggunakan skema bagi hasil kotor (gross split). Terkait besaran bagi hasil (split), untuk base split dan variable split, KKKS memperoleh jatah 48,5% untuk minyak dan 53,5% untuk gas. 

     Selanjutnya, progressif split akan disesuaikan dengan perkembangan harga minyak dan kumulatif produksi migas. Selanjutnya, porsi kepemilikan hak partisipasi (participating interest/PI) di Blok Corridor juga akan berubah setelah 2023. Saat ini, ConocoPhilips memegang PI sebesar 54%, Repsol 36%, dan Pertamina 10%. Setelah PSC yang ada berakhir, ConocoPhilips memiliki saham 46%, Pertamina 30%, dan Repsol 24%.

Menurut Arifin, sebelum kontrak diteken, kontraktor kontrak kerja sama (KKKS) eksisting telah menyetorkan bonus tanda tangan sebesar US$ 250 juta. Selain itu, kontraktor juga menjanjikan komitmen kerja pasti (KKP) untuk lima tahun sebesar US$ 250 juta. Jumlah ini merupakan terbesar kedua sejak penandatanganan kontrak di Indonesia.

“Semoga dengan ditandatanganinya kontrak gross split Blok Corridor ini semoga semakin membangkitkan gairah investor untuk investasi di hulu migas Indonesia,” ujar dia. 

Mengacu data Kementerian ESDM, KKKS telah mengajukan sejumlah kegiatan yang akan dikerjakan menggunakan dana KKP. Pada tahun pertama, kontraktor akan menggarap pengeboran satu sumur di Dayung Lower Palembang-1 senilai US$ 2,4 juta dan akuisisi seismik 3D US$ 23,93 juta. Di tahun kedua, kegiatan yang akan dilakukan adalah pengeboran satu sumur di Suban Lower Palembang-1 US$ 11,6 juta dan akuisisi seismik 3D US$ 31,53 juta. 

Berikutanya, kegiatan yang direncanakan di tahun ketiga mencakup pengerjaan Telisa Well sebanyak dua sumur senilai US$ 20 juta, akuisisi seismik 3D US$ 25 juta, dan pengembangan Suban Far East US$ 33,04 juta. Pada tahun keempat, kontraktor akan mengerjakan Telisa Well satu sumur senilai US$ 18,04 juta, prospek lain US$ 28,2 juta, dan akuisisi seismik 3D US$ 20 juta. Terakhir, di tahun kelima, kegiatan yang akan dikerjakan adalah pengembangan Suban Far East US$ 8,26 juta dan prospek lain US$ 28 juta.

Meski tetap dikelola kontraktor eksisting, pemegang operator Blok Corridor akan berubah. Saat ini operator blok ini adalah ConocoPhilips. Selama tiga tahun, setelah 19 Desember 2023 hingga 19 Desember 2026, ConocoPhilip tetap menjadi operator Blok Corridor. 

     Setelah itu, blok ini akan memasuki masa transisi operatorship, di mana kemudian Pertamina akan beralih menjadi operator. Pemerintah tidak menentukan berapa lama masa transisi ini. 

     Direktur Utama PT Pertamina Hulu Energi Corridor (PHE Corridor) Taufik Aditiyawarman mengatakan, berdasarkan data saat ini, Blok Corridor memiliki luas 2.095,25 kilometer persegi (km2) yang sebagian besar berada di Provinsi Sumatera Selatan. Pertamina juga memiliki empat wilayah kerja aktif di area Sumatera Selatan, yaitu Pertamina EP Aset 1, PHE Jambi Merang, PHE Ogan Komering, dan PHE Raja Tempirai. 

Investor Daily, Page-9, Tuesday, Nov 12, 2019

Indonesia Starts LNG Exports to China

PT Perusahaan Gas Negara (PGN) Tbk and Sinopec signed an agreement to sell bell LNG in China for 2020. This agreement marks an important milestone for PGN to play its role globally as a sub-holding of Indonesian gas.

Sinopec

"We have reviewed the opportunity to take a role and develop the gas and LNG infrastructure along the value chain, ranging from ownership of liquefaction, regasification, ships, energy regeneration or transmission infrastructure, pipelines and city gas facilities," said PGN Syahrial's Director of Business Strategy and Development Muktar.

Syahrial said that China is a country with great potential with a variety of business opportunities that can be explored. Based on energy needs to support economic growth in China, energy imports are inevitable. 

     China needs global energy sources to fill the gap between energy production and increasing consumption. This condition is the right thing where PGN can help.

"The sale of the LNG portfolio owned by Pertamina and PGN's role as sub-holding gas. "We are very enthusiastic to build cooperation between Sinopec and PGN. Sinopec is one of the biggest energy companies in China. We believe that our goal to sign an LNG purchase agreement is the beginning of what we can collaborate going forward.

The hope is that we can explore the potential of LNG sales and further develop LNG infrastructure with this opportunity, from the terminals, small-scale, bunkers, and so on, "said Syahrial.

In mid-2019, PGN was tasked with Pertamina to manage the end-to-end LNG business in full. Starting with the initiative and development of new LNG business both domestically and globally. 

    PGN also received a mandate from the government and shareholders to manage and integrating LNG business and gas in Indonesia from midstream to downstream to achieve the most optimal value to all stakeholders.

IN INDONESIA

Indonesia Mulai Ekspor LNG ke China

PT Perusahaan Gas Negara (PGN) Tbk dan Sinopec menandatangani perjanjian jual bell LNG di China untuk tahun 2020. Perjanjian ini menandai milestone penting bagi PGN memainkan perannya secara global sebagai sub holding gas Indonesia. 

“Kami sudah meninjau kesempatan untuk mengambil peran dan mengembangkan infrastruktur gas dan LNG sepanjang rantai nilai, mulai dari kepemilikan bidang likuifaksi, regasifikasi, kapal, regenerasi energi atau transmisi infrastruktur, saluran pipa dan fasilitas gas kota,” ujar Direktur Strategi dan Pengembangan Bisnis PGN Syahrial Muktar.

Syahrial mengatakan bahwa China merupakan negara dengan potensi besar dengan beragam peluang bisnis yang bisa dijelajahi. Berdasarkan kebutuhan energi untuk mendukung pertumbuhan ekonomi di China, impor energi tidak dapat terelakkan. 

     China membutuhkan sumber energi global untuk mengisi kesenjangan antara produksi energi dengan konsumsi yang meningkat. Kondisi ini menjadi hal yang tepat di mana PGN dapat membantu.

“penjualan portofolio LNG yang dimiliki Pertamina dan menjalankan peran PGN sebagai sub holding gas. “Kami sangat antusias untuk membangun kerja sama antara Sinopec dan PGN. Sinopec adalah salah satu perusahaan energi terbesar di China. Kami percaya bahwa tujuan kita untuk menandatangangi perjanjian kerja sama jual Beli LNG merupakan awal dari apa bisa kita kolaborasikan ke depan.

Harapannya, kami bisa mengeksplorasi potensi penjualan LNG dan pengembangan infrastruktur LNG secara lebih jauh dengan kesempatan ini, dari mulai terminal, skala-skala kecil, bungker, dan sebagainya,” ungkap Syahrial.

Pada pertengahan 2019, PGN mendapat tugas dari Pertamina untuk mengelola bisnis LNG end to-end secara penuh. Di mulai dengan inisiatif dan pengembangan bisnis baru bisnis LNG baik domestik maupun global. 

     PGN juga menerima mandat dari pemerintah dan pemegang saham untuk mengelola dan mengintergrasi bisnis dan gas LNG  di Indonesia dari midstream ke downstream untuk mencapai nilai paling optimal kepada seluruh pemangku kepentingan.

Harian Bangsa, Page-4, Tuesday, Nov 12, 2019

Corridor Block Contract Signed

The Ministry of Energy and Mineral Resources (ESDM) has officially handed over management of the Corridor Block to ConocoPhillips, Peitamina and Repsol for a period of 20 years starting from December 20, 2023 with a gross split profit sharing scheme. 

     

ESDM Minister Arifin Tasrif

     ESDM Minister Arifin Tasrif said the government was trying to speed up the decision-making process for further management of the oil and gas Working Area (WK), which would end its cooperation contracts so that production could be maintained or even increased, as well as maintaining investment continuity.

"I advised the contractor not only to maintain, but also increase the rate of oil and gas production from WK Corridor, as well as to seek discovery of new oil and gas reserves through exploration activities," he said.

ConocoPhillips

The WK Corridor revenue sharing contract is an extension contract with the participating rights holder ConocoPhillips (Giissik) Ltd. by 46%, PT Pertamina Hulu Energi (PHE) Corridor 30%, and Talisman (Corridor) Ltd. by 24%. The estimated investment value from implementing the first 5 year fixed work commitment (KKP) is US $ 250 million and a signature bonus of US $ 250 million. 

     The participating rights included by the contractor include a 10% participation right that will be offered to Regionally Owned Enterprises (BUMD) in accordance with Minister of Energy and Mineral Resources Regulation No. 37/2016.

Arifin added that the WK or Corridor Block is one of the oil and gas blocks of strategic value given the amount of gas production which reached 1,100 MMScfd or equivalent to 12% of the total national natural gas production at this time. Meanwhile, oil and condensate production is around 6,600 barrels per day (bopd).

PHE President Director Corridor Taufik Aditiyawarman said there was an increase in the composition of participation rights in the cooperation contract agreement. Initially, Pertamina only had 10%. After a new management period in 2023, ConocoPhillips will remain an operator for 3 years. After that, the transition period will enter before the operator is submitted to the PHE Corridor.

Regarding the transition to operator shift, ConocoPhillips Vice President Commercial and Business Development Taufik Ahmad claimed there would be a joint operation agreement (JOA) with Pertamina after a new cooperation contract was signed. However, for a detailed discussion, the JOA conducted with Pertamina has not yet been carried out.

"Anyway, we follow it as the Minister of Energy and Mineral Resources reads the letter. What kind of mechanism, what kind of transition, we talk for 2024-2025. Now the focus is on the PSC [production sharing contract] and the rest of the contract, "he added.

the Corridor Block

ConocoPhillips projects gas production from the Corridor Block in accordance with the 2019 State Budget (APBN) target of 810 MMscfd. Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), until the end of September, the realization of ConocoPhillips gas production reached 833 MMscfd. The realization was 2.8% higher than the target set.

IN INDONESIA

Kontrak Blok Corridor Ditandatangani

Kementerian Energi dan Sumber Daya Mineral (ESDM) resmi menyerahkan pengelolaan Blok Corridor ke ConocoPhillips, Peitamina, dan Repsol untuk jangka waktu 20 tahun mulai dari 20 Desember 2023 dengan skema bagi hasil kotor atau gross split. Menteri ESDM Arifin Tasrif mengatakan pemerintah berupaya mempercepat proses pengambilan keputusan untuk pengelolaan lanjut Wilayah Kerja (WK) migas yang akan berakhir kontrak kerja samanya agar produksi dapat dipertahankan atau bahkan ditingkatkan, serta menjaga kelangsungan investasi.

“Saya berpesan kepada kontraktor agar tidak hanya dapat mempertahankan, namun juga meningkatkan laju produksi migas dari WK Corridor, serta mengupayakan penemuan cadangan migas baru melalui kegiatan eksplorasi,” katanya.

Kontrak bagi hasil WK Corridor merupakan kontrak perpanjangan dengan pemegang hak partisipasi ConocoPhillips (Giissik) Ltd. sebesar 46%, PT Pertamina Hulu Energi (PHE) Corridor 30%, dan Talisman (Corridor) Ltd. sebesar 24%. Perkiraan nilai investasi dari pelaksanaan komitmen kerja pasti (KKP) 5 tahun pertama sebesar US$250 juta dan bonus tanda tangan senilai US$250 juta. Hak partisipasi yang oleh kontraktor tersebut termasuk hak partisipasi 10% yang akan ditawarkan kepada Badan Usaha Milik Daerah (BUMD) sesuai Peraturan Menteri ESDM Nomor 37/2016.

Arifin menambahkan WK atau Blok Corridor merupakan salah satu blok migas yang bernilai strategis mengingat besarnya produksi gas yang mencapai 1.100 MMScfd atau setara dengan 12 % dari total produksi gas bumi nasional saat ini. Adapun, produksi minyak dan kondensat sekitar 6.600 barel per hari (bopd).

Direktur Utama PHE Corridor Taufik Aditiyawarman mengatakan ada kenaikan komposisi hak partisipasi pada perjanjian kontrak kerja sama ini. Semula, pertamina hanya memiliki 10%. Setelah masa pengelolaan baru pada 2023, ConocoPhillips akan tetap menjadi operator selama 3 tahun. Setelah itu, akan masuk masa transisi sebelum operator diserahkan kepada PHE Corridor.

Terkait transisi perpindahan operator, Vice President Commercial and Business Development ConocoPhillips Taufik Ahmad mengaku akan ada kesepakatan operasi bersama (Joint Operation Agreement/JOA) dengan Pertamina setelah kontrak kerja sama baru ditandatangani. Hanya saja, untuk pembahasan rinci, JOA yang dilakukan dengan Pertamina belum dilakukan.

“Pokoknya kami ikuti seperti yang dibunyikan surat Menteri [ESDM]. Mekanisme seperti apa, transisi seperti apa, kita bicara untuk 2024-2025. Sekarang fokus ke PSC [kontrak bagi hasil] dan sisa kontrak,” tambahnya.

ConocoPhillips memproyeksikan produksi gas dari Blok Corridor sesuai dengan target Anggaran  Pendapatan dan Belanja Negara (APBN) 2019 sebanyak 810 MMscfd. Berdasarkan data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), hingga akhir September lalu, realisasi produksi gas ConocoPhillips mencapai 833 MMscfd. Realisasi tersebut 2,8% lebih tinggi dari target yang ditetapkan.

Bisnis Indonesia, Page-24, Tuesday, Nov 12, 2019

Repsol Can Extend Exploration of Andaman Block III

The Aceh Oil and Gas Management Agency (BPMA) said Repsol had obtained approval from the Ministry of Energy and Mineral Resources (ESDM) for the extension of the Andaman III Block exploration period. BPMA Deputy of Operations and Planning Teuku Muhammad Faisal said the extension was given for two years.

"The obligation to make a joint account and performance bond has been carried out, now all that remains is to prepare the drilling plan," said Faisal.

The drilling plan by Repsol will include drilling one well. Faisal said, Repsol submitted an extension request for one year, but for maximum results, BPMA recommended two years to the Ministry of Energy and Mineral Resources. Previously, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, revealed that the Ministry of Energy and Mineral Resources was indeed waiting for a recommendation by BPMA.

"Just waiting for the BPMA recommendations for extensions," said Djoko.

According to Faisal, Repsol has the opportunity to open options to engage partners in a new exploration period.

"It's still a process, one of which is Petronas, but it still cannot be confirmed," said Faisal.

the Andaman III 

For information, currently Repsol has 100% participation rights in the Andaman III Block. KONTAN Note, BPMA discovered the potential of oil and gas reserves in the Andaman III Block after a seismic survey was carried out by Repsol as manager of the block. Acting Head of BPMA Azhari Idris said, it still needed drilling to prove the potential reserves in Andaman III Block.

IN INDONESIA

Repsol Dapat Perpanjangan Eksplorasi Blok Andaman III

Badan Pengelola Minyak dan Gas Aceh (BPMA) menyatakan Repsol telah mengantongi persetujuan dari Kementerian Energi dan Sumber Daya Mineral (ESDM) untuk perpanjangan masa eksplorasi Blok Andaman III. Deputi Operasi dan Perencanaan BPMA Teuku Muhammad Faisal mengatakan, perpanjangan tersebut diberikan selama dua tahun. 

"Kewajiban membuat joint account dan performance bond sudah dilakukan, sekarang tinggal mempersiapkan rencana pengeboran," kata Faisal.

Adapun rencana pengeboran oleh Repsol akan meliputi pengeboran satu sumur. Faisal menuturkan, Repsol mengajukan permintaan perpanjangan selama satu tahun, namun demi hasil yang maksimal, BPMA merekomendasikan dua tahun kepada Kementerian ESDM. Sebelumnya, Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto mengungkapkan, Kementerian ESDM memang menantikan rekomendasi oleh BPMA. 

“Tinggal menunggu rekomendasi BPMA untuk extension," kata Djoko.

Menurut Faisal, Repsol berpeluang membuka opsi untuk menggandeng mitra dalam masa eksplorasi yang baru.

"Masih proses, salah satunya Petronas, namun masih belum bisa dikonfimasi," kata Faisal. 

Sebagai informasi, saat ini Repsol memiliki hak partisipasi sebesar 100% pada Blok Andaman III. Catatan KONTAN, BPMA menemukan potensi cadangan migas di Blok Andaman III setelah dilakukan survei seismik oleh Repsol selaku pengelola blok tersebut. Plt Kepala BPMA Azhari Idris bilang, masih perlu dilakukan pengeboran demi membuktikan potensi temuan cadangan di Blok Andaman III.

Kontan, Page-14, Thursday, Nov 7, 2019

Repsol Find Partners in Andaman Block III

The Aceh Oil and Gas Management Agency (BPMA) said Repsol Indonesia was looking for partners to work on the Andaman III Block. Repsol is currently still exploring in the oil and gas block which is estimated to have a gas potential of 3-4 trillion cubic feet (Trillion Cubic Feet / TCF). 

     BPMA Deputy of Operations and Planning Teuku Muhammad Faisal said Repsol saw that they could not work on the Andaman III Block themselves. Therefore, the Spanish oil and gas company plans to release part of its Participating Interest (PI) ownership in the block to find partners.

Blogger Agus Purnomo in Petronas PC Ketapang

"Actually there is more that they are working on, namely partners to share PI, they are proposing. One of the candidates is Petronas, "he said. Currently, Repsol holds 100% PI in the Andaman III Block.

 the Andaman III Block

Repsol is still carrying out exploration activities in the Andaman III Block. Referring to BPMA data, in 2017-2018, Repsol has conducted several exploration activities, namely acquisition, and processing of 3D seismic data covering 3,670 square kilometers (km2). In addition, Repsol has also procured long-lead items needed for operations.

Repsol

Now, Repsol is making preparations for drilling the Rencong IX Well. BPMA, continued Faisal, has given a recommendation for an extension of the exploration period of the Andaman III Block for two years. However, he said, the extension of this exploration period still had to wait for approval from the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

According to him, the additional exploration period was given so that Repsol can continue drilling wells. The extension was even longer than Repsol's request, which was only around one year. Because the regulator has an interest so that exploration activities in the Andaman III Block can be completed.

"Repsol can be a maximum of two years, seeing their preparations in the past year and this year. They are optimistic indeed, asking for a year is enough, [but] instead of not completing the regulator also a hassle, "explained Faisal.

The reason is, it also needs time regarding the correspondence with the Minister of Energy and Mineral Resources. Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that his party was still waiting for a recommendation from BPMA regarding the extension of the Andaman III Block exploration period.

"Still waiting for the BPMA recommendation for the extension. We wait 1-2 days, "he said.

The Andaman III Block covers an area of ​​8,440 square kilometers off the coast of Aceh. This block is located in a water depth of 1,300 meters in the North Sumatra basin area. Based on the results of a seismic survey that has been carried out, the Acting Task Force of the Aceh Oil and Gas Management Agency (BPMA) Azhari Idris said, the prospects are predicted to have 3-4 TCF potential.

The Well drilling by Repsol is planned to be carried out in the first half of 2020. The Andaman III Block is an exploration block that was won by Talisman at an auction of work areas in 2009. However, Repsol acquired Talisman in 2015 so that the block is managed by Repsol. The Andaman III production sharing contract was signed on September 11, 2009, and is valid for 30 years or until 2039.

Investor Daily, Page-9, Wednesday, November 6, 2019

Pertamina and Marubeni Continue to Share in Java-1

The Java-1 PLTGU consortium may not change until the project operates commercially

PT Perusahaan Listrik Negara (PLN) is also monitoring the chaos in the consortium of PT Pertamina Power Indonesia (PPI) and Marubeni Corporation. PLN asks the consortium to immediately resolve the issue. 

      The consortium is working on a Java-1 gas-fired power plant (PLTGU) project with a capacity of 1,760 megawatts (MW). In building the Java-1 PLTGU, PPI and Marubeni obtained 40% ownership shares. As for one more member, Sojitz Corporation has a 20% stake.

Sojitz Corporation

PT PLN's Strategic Procurement Director 2, Djoko Rahardjo Aburhanan, said the relevant parties in the consortium must be able to show a solution to the problem. Because, the consortium may not change ownership of shares, let alone disband. 

     After the consortium is appointed and the power purchase agreement (PPA) is signed, the contract with the consortium may not change until the electric power plant project is commercially operational or commercial operation date (COD).

"Change of directors is okay. But it can't change the consortium. Unless the COD has become an item and the debts with landed banks have been completed," said Djoko.

Cilamaya Port

That is, like a contract with another private electricity producer (IPP), the consortium is responsible for completing the Java-1 PLTGU project according to the agreed schedule. At present, the progress of the Java-1 PLTGU has reached 30% and is targeted to be completed in 2021. The power plant, which was built in Cilamaya, Karawang regency, West Java, requires an investment budget of around US $ 1.8 billion.

The PLTGU, which will be integrated with the Floating Storage and Regasification Unit (FSRU), has spent US $ 275 million. PLN and the PPI consortium, Marubeni and Sojitz Corporation have signed the PPA since January 31, 2017. 

    Not only at the Java-1 PLTGU, the fracture of Pertamina and Marubeni's relationship also affected other projects, namely power plants to be built in Bangladesh. In the 1,200 MW power plant project, Marubeni has been a partner of Pertamina since August 2017. PT Pertamina's President Director Nicke Widyawati refused to respond.

Nicke Widyawati

While Pertamina's Director of Investment Planning and Risk Management, Heru Setiawan, said the partnership with Marubeni was still ongoing. The chaos between Pertamina and Marubeni began when there was friction and differences of opinion between PPI and Marubeni in the Java-1 PLTGU project. 

     There was even news that the President Director of PPI, Ginanjar Sofyan, was dismissed from his position due to this chaos. Pertamina Corporate Communication Vice President Fajriyah Usman denied the news.

Fajriyah Usman

"Until now he is still in office," he told KONTAN. He also said that Pertamina had also asked PPI to resolve the issue with Marubeni, in accordance with the contract, said Fajriyah.

IN INDONESIA

Pertamina dan Marubeni Tetap Berkongsi di Jawa-1

Konsorsium PLTGU Jawa-1 tidak boleh berganti hingga proyek beroperasi secara komersial

PT Perusahaan Listrik Negara (PLN) ikut memantau kisruh di konsorsium PT Pertamina Power Indonesia (PPI) dan Marubeni Corporation. PLN minta konsorsium segera menyelesaikan masalah tersebut. Konsorsium tersebut menggarap proyek pembangkit listrik tenaga gas uap (PLTGU) Jawa-1 berkapasitas 1.760 megawatt (MW). Dalam membangun PLTGU Jawa-1, PPI dan Marubeni memperoleh saham kepemilikan masing-masing sebesar 40%. Adapun satu anggota Iagi, Sojitz Corporation memiliki 20% saham.

Direktur Pengadaan Strategis 2 PT PLN, Djoko Rahardjo Aburhanan, mengatakan, para pihak terkait di konsorsium tersebut harus bisa menunjukkan jalan keluar terhadap masalah tersebut. Sebab, konsorsium tidak boleh berganti kepemilikan saham, apalagi bubar. Setelah konsorsium ditunjuk dan perjanjian jual beli listrik alias power purchase agreement (PPA) ditanda tangani, kontrak dengan konsorsium tidak boleh berganti hingga proyek pembangkit Iistrik beroperasi secara komersial atau commercil operation date (COD). 

"Ganti direksi tidak apa-apa. Tapi tidak boleh ganti konsorsium. Kecuali sudah COD, sudah menjadi barangnya dan utang piutang dengan bank landed selesai," kata Djoko.

Artinya, seperti kontrak dengan produsen Iistrik swasta (IPP) lainnya, konsorsium bertanggung jawab merampungkan proyek PLTGU Jawa-1 sesuai jadwal yang telah disepakati. Saat ini, progres PLTGU Jawa-1 mencapai 30% dan ditargetkan rampung pada 2021. Pembangkit yang dibangun di Cilamaya, Kabupaten Karawang-Jawa Barat ini membutuhkan anggaran investasi sekitar US$ 1,8 miliar.

PLTGU yang akan terintegrasi dengan Floating Storage and Regasification Unit (FSRU) itu telah mengeluarkan dana US$ 275 juta. PLN dan konsorsium PPI, Marubeni dan Sojitz Corporation sudah menandatangani PPA sejak 31 Januari 2017. Tidak hanya di PLTGU Jawa-1, keretakan hubungan Pertamina dan Marubeni juga berdampak proyek lainnya, yakni pembangkit listrik yang akan dibangun di Bangladesh. Pada proyek pembangkit berkapasitas 1.200 MW, Marubeni menjadi salah satu mitra Pertamina sejak Agustus 2017. Direktur Utama PT Pertamina Nicke Widyawati menoIak memberikan tanggapan.

Sementara Direktur Perencanaan Investasi dan Manajemen Risiko Pertamina, Heru Setiawan, menyatakan, kongsi dengan Marubeni masih terus berlangsung. Kisruh Pertamina dan Marubeni bermula saat terjadi gesekan dan perbedaan pandangan antara PPI dan Marubeni di proyek PLTGU Jawa-1. Bahkan ada kabar Direktur Utama PPI, Ginanjar Sofyan, diberhentikan dari jabatannya akibat kisruh ini. Vice President Corporate communication Pertamina Fajriyah Usman membantah kabar itu. 

“Sampai saat ini beliau masih menjabat," kata dia kepada KONTAN. Ia juga bilang, Pertamina juga telah meminta PPI untuk menyelesaikan masalah dengan Marubeni, sesuai dengan kontrak, kata Fajriyah.

Kontan, Page-14, Wednesday, November 6, 2019

Repsol Andaman Exploration until 2021

The Aceh Oil and Gas Management Agency (BPMA) gave a recommendation for an extension of 2 years to Repsol to continue exploration in the Andaman III Block until 2021. BPMA Acting Officer Azhari Idris said Repsol was given a recommendation for an extension of the next 2 years.

the Andaman III Block

"Yes, we gave 2 years for Repsol," he said.

So far, Repsol is still exploring oil and gas blocks which are estimated to have 3-4 trillion cubic feet (TCF) gas potential. Referring to BPMA data, in 2017-2018, Repsol has conducted several exploration activities, namely acquisition and processing of 3D seismic data covering 3,670 square kilometers (km2). The Repsol exploration permit in the Andaman Block should expire this year.

The Repsol party had applied for a permit extension for about 1 year. BPMA Deputy of Operations and Planning Teuku Muhammad Faisal the extension of this exploration period still has to wait for approval from the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

Arifin Tasrif

According to him, the additional exploration period was given so that Repsol could continue drilling Rencon IX wells. In addition, Repsol is also preparing shorebase, long lead item preparation and drill ship procurement. The extension granted is even longer compared Repsol's request is only around one year.

"Repsol can be maximum in 2 years, seeing their preparations in the past year and this year. They are optimistic indeed, asking for a year is enough, [but] rather than not finished, regulators also bother, "he added.

Previously, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that his party was still waiting for a recommendation from BPMA regarding the extension of the Andaman III Block exploration period.

"Still waiting for the BPMA recommendation for the extension. We wait 1-2 days, "he said.

IN INDONESIA

Repsol Eksplorasi Andaman hingga 2021

Badan Pengelola Migas Aceh (BPMA) memberikan rekomendasi perpanjangan selama 2 tahun kepada Repsol untuk melanjutkan eksplorasi di Blok Andaman III hingga 2021. Pelaksana Tugas BPMA Azhari Idris mengatakan Repsol diberikan rekomendasi perpanjangan waktu 2 tahun ke depan. 

“Ya, kami beri 2 tahun untuk Repsol,” katanya.

Sejauh ini, Repsol masih melakukan eksplorasi di blok migas yang diperkirakan memiliki potensi gas 3-4 triliun kaki kubik (TCF). Mengacu data BPMA, pada 2017-2018, Repsol telah melakukan beberapa kegiatan eksplorasi yakni akuisisi dan pemrosesan data seismik 3D seluas 3.670 kilometer persegi (km2). Izin eksplorasi Repsol di Blok Andaman seharusnya berakhir tahun ini. 

Pihak Repsol sempat mengajukan permohonan perpanjangan izin itu sekitar 1 tahun. Deputi Operasi dan Perencanaan BPMA Teuku Muhammad Faisal perpanjangan masa eksplorasi ini masih harus menunggu persetujuan Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif.

Menurutnya, tambahan masa eksplorasi ini diberikan agar Repsol dapat melanjutkan kegiatan pengeboran sumur Rencon IX. Selain itu, Repsol juga sedang melakukan persiapan shorebase, penyiapan long lead item dan pengadaan drill ship. Perpanjangan yang diberikan bahkan lebih lama dibandingkan permintaan Repsol yang hanya sekitar satu tahun.

“Repsol bisa maksimum di 2 tahun, melihat persiapan mereka di tahun kemarin dan tahun ini. Mereka optimistis memang, mintanya setahun cukup, [tetapi] daripada tidak selesai kan regulator juga yang repot,” tambahnya.

Sebelumnya, Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto mengatakan pihaknya masih menunggu rekomendasi dari BPMA terkait perpanjangan masa eksplorasi Blok Andaman III.

“Masih menunggu rekomendasi BPMA untuk extension. 1-2 hari ini kami tunggu,” ujarnya.

Bisnis Indonesia, Page-24, Wednesday, November 6, 2019