SKK Migas Appreciates Pertamina EP Production Increase

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) appreciates the operation and production performance of PT Pertamina EP as a Cooperation Contract Contractor (KKKS). In the last three years, Pertamina EP (PEP) has succeeded in increasing production at a time when global oil prices are likely to fall.

SKK Migas

"That's right for PEP in 2017, 2018,2019 we challenge and fully support them, they dare to raise production targets from what was planned. And the results are indeed production inclined from the previous year, "said SKK Migas Deputy for Operations Julius Wiratno in Jakarta.

Based on data, Pertamina EP oil production throughout 2017-2019 or under the leadership of President Director Nanang Abdul Manaf continued to increase. In 2017 oil production reached 77,154 barrels per day (BOPD), rising again to 79,445 BOPD in 2018, and last year to 82,213 BOPD. 

   Whereas gas production was recorded at 1,018 BOPD in 2017, an increase compared to 2016 which recorded 989 million standard cubic feet per day (MMSCFD), then 1,017 MMSCFD in 2019, and 959 MMSCFD in 2019 because buyers did not buy gas produced by Pertamina EP.

Julius Wiratno

Julius encouraged PEP to try to reduce the natural decline rate that was natural by identifying additional resources during development and drilling on time and paying attention to work safety. SKK Migas also plays a role in approving work plans and budgets (WP and B).

"When I coordinated the WP and B discussion to carry out the main tasks and functions as the head of the work program division, I was directly involved in the technical and economic discussions of each work program and encouraged more aggressively. With PEP KKKS we help and encourage identification of development wells candidates to be drilled and increase production directly, "he said.

Julius encouraged PEP and other KKKS to be more aggressive and facilitate facilitation in approving budgets and accelerating the implementation of work programs, especially development wells. In 2017, total PEP development wells reached 58 wells, increasing again in 2018 to 92 wells and in 2019 to 106 wells. 

     While work over wells was recorded in 194 in 2017, 175 in 2018, and 215 in 2019. He assessed the constraints of PEP operations because the scattered assets and working areas from West to East of Indonesia became very complex. Not to mention the added production facilities that are old so that they need maintenance efforts that require costs as well.

"Therefore, PEP management must be more daring to implement advanced technology to increase production and conduct debottlenecking businesses and to conduct good preventive and predictive maintenance," he said.

According to Julius, in the future PEP is more willing to take risks with the implementation of technology that is already available in the market, dare to be more persistent for innovation, and operational improvisation to be more efficient. Of course, you also have to be brave enough to take risks to make massive explorations. For some old fields that still exist, it might be possible to collaborate with technology provider contractors.

"Hopefully PEP is more advanced and victorious because I see a high commitment from the PEP leadership team," he said.

Djoko Siswanto

Secretary-General of the National Energy Council (DEN) Djoko Siswanto, assesses that Pertamina must continue to work to increase oil production in its own way. It would be nice if all the suggestions and input from all stakeholders to increase oil production were also considered to be implemented.

"In the last three years, PEP production has increased from year to year. In terms of cost, I see that there is actually something that can be saved so that profits can be greater, "he said.

Investor Daily, Page-9, Monday, March 9, 2020

The US $ 1.53 Billion JTB Project is Targeted to Be Completed on Time

SKK Migas states that it will oversee national strategic projects to be completed on time. One of them is the Jambaran Tiung Biru (JTB) project in Bojonegoro, East Java, which has an investment of US $ 1.53 billion targeted for onstream in August 2021.

Dwi Soetjipto

"The realization of upstream oil and gas projects that will support increased production, received special attention from the President of the Republic of Indonesia," said SKK Migas Head Dwi Soetjipto during a working visit to the Management Work Through (MWT) activity on Saturday (March 7).

Julius Wiratno

During the working visit, the SKK Migas Head was accompanied by Deputy Operations Julius Wiratno, Expert Advisor Satya W Yudha, Head of the Waras JTB Project Acceleration Unit Budi Santosa and SKK Migas Representative Chief Jabanusa Nurwahidi.

Nurwahidi

The JTB project is one of the four national strategic projects in the oil and gas sector determined by President Joko Widodo through Presidential Decree number 56 of 2018. The completion of the JTB project will also contribute significantly to the addition of national oil and gas production. The JTB project as a whole is valued at the US $ 1.53 billion and is expected to be streamed in August 2021.

the Jambaran Tiung Biru (JTB) project

"At the Limited Meeting on March 4, 2020, with one of the agenda of increasing national oil and gas production, President Joko Widodo has requested that the national strategic projects can be completed immediately. For this reason, SKK Migas will increase supervision so that the national strategic oil and gas sector projects can be completed at the designated time, even if they can be accelerated, "Dwi Soetjipto said.

Dwi added, the increase in supervision will be demonstrated by SKK Migas through field visits by SKK Migas management every weekend.

"This step is to ensure that the project can be completed on schedule and cost-efficient."

The JTB project is operated by Pertamina EP Cepu (PEPC). The JTB project in addition to making a large contribution to the addition of national gas, during project implementation has had a positive impact on the Regional Government and local communities. Based on SKK Migas data, as of February 2020, the number of workers absorbed in the JTB project was around 4,470 people.

In order to support the regional economy and increase the capacity of local entrepreneurs, SKK Migas has required the procurement of goods and services worth up to Rp 10 billion to be carried out by regional entrepreneurs, so that local entrepreneurs have the opportunity to develop and create jobs.

PEPC President Director, Jamsaton Nababan said during his presentation that the JTB project had a very big challenge because previously the contractor who built the EPC resigned, so the project activity had been stopped for several months.

"Thank you to SKK Migas for helping to overcome this difficult time, so that in the end the construction of the EPC JTB can be continued by a new contractor namely Industrial Engineering," he said.

To oversee the project to run smoothly, Pertamina intensified coordination with the EPC Contractor and placed supervisor inspectors in the vendor-owned workshop. This mechanism is to catch up with the target, and the project can still be built with the best quality and support the reliability of the JTB refinery operation when producing later.

Director of REKIN, Jakub Tarigan, in his report, said that since being appointed as an EPC contractor, his side had worked hard and intensive coordination with SKK Migas and Pertamina so that the project delays by February 2020 could be shortened by only 0.66%, or there had been an acceleration of 19, 3%.

"This achievement is extraordinary when the rain challenge is very extreme right now. We have prepared 9 pumps to ensure a maximum of 2 hours the project site is dry so that work activities will be normal ".

During a visit to the project site, the rain poured heavily, all contractors and subcontractors showed their readiness by making changes to the system so that work could continue to be carried out and all project human resources could be utilized.

Investor Daily, Page-9, Monday, March 9, 2020

SKK Migas Appreciates PEP Performance

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) gives appreciation to PT Pertamina EP as the Contractor Cooperation Contract (KKKS). Appreciation was given because PT Pertamina EP dared to raise its performance target when global oil conditions tended to decline.

SKK Migas

SKK Migas Deputy for Operations Julius Wiratno said Pertamina EP in the three years ended was challenged to raise production targets from what had been planned. Challenges answered by PEP with satisfying work results.

"In 2017, 2018, 2019 we provide challenges and full support to those who dare to raise production targets from what is planned. And the results are indeed very satisfying there tends to increase from the previous year, "he said.

Pertamina EP

Based on Pertamina EP's performance records, Pertamina EP's oil production during 2017-2019 showed an increasing trend. For example, in 2017, oil production reached 77,154 barrel oil per day (BOPD), rising to 79,445 BOPD in 2018, and last year it was 82,213 BOPD. 

    On the other hand, gas production was recorded at 1,018 barrels of oil per day (BOPD) in 2017, an increase compared to 2016 which recorded 989 million standard cubic feet per day (MMSCFD), then 1,017 MMSCFD in 2019, and 959 MMSCFD in 2019 because buyers were unable to buy gas produced by PEP.

An increase also occurred in the development of the number of wells. In 2017 the total PEP development wells reached 58 wells, then rose to 92 wells in 2018. Furthermore, it became 106 wells in 2019. For work, wells recorded 194 in 2017, 175 in 2018, and 215 in 2019, Julius also expects KKKS to try to reduce natural numbers declined naturally by identifying additional development wells and drilled on time and paying attention to work safety.

"We continue to encourage other KKKS to be more aggressive and accelerate the implementation of work programs, especially development wells. The activity of developing development wells at Pertamina EP also showed an increase, "he said.

The Secretary-General of the National Energy Board, Djoko Siswanto, assesses that Pertamina must continue its efforts to increase oil production in its own way in addition to focusing on maintaining production trends.

"I hope that PEP can work on marginal fields by involving incentives from the government. Because, in terms of cost, I see that there is actually something that can be saved so that the profit can be greater, "said Joko.

Radar Gresik, Page-6, Monday, March 9, 2020

The Rokan Block Transition is tiring

The Rokan Block transition process from PT Chevron Pacific Indonesia to PT Pertamina (Persero) will again be delayed, after Chevron refused the Join Drilling Agreement (JDA) option offered, Pertamina. JDA was one of the first options offered to concessionaires, in which Chevron drilling during the transition period at Pertamina's expense. This option was not accepted by Chevron due to economic considerations that were not attractive.

Nicke Widyawati

In a meeting with a number of chief editors of the mass media on Friday (6/3) night, Pertamina President Director Nicke Widyawati revealed that the transition period for the Rokan Block was a particular concern for Pertamina given the impending deadline for managing the block.

The Rokan Working Area (WK)

The Rokan Working Area (WK) management contract by Chevron Pacific Indonesia will end on August 8, 2021. In accordance with the results of the auction, the management of the WK will be carried out by Pertamina, effective from August 9, 2021 for the next 20 years, with a gross split scheme. 

Chevron Pacific Indonesia

    Nicke said it had made an effort in the transition period since last year through a number of options after Chevron adopted a policy of not allocating new investment funds.

The Rokan Block by Chevron

"We have offered joint drilling. So, we did the drilling with funding from Pertamina. However, that effort cannot be accepted, because as a concession holder certainly does not want anyone to enter, "said Nicke.

So far there have been great concerns from Pertamina regarding the Rokan Block transition. One of them is related to oil and gas production from the Rokan Block. Like the Mahakam Block which experienced a decline in production during the transition period, the same situation is predicted to occur in the Rokan Block.

The Mahakam Block

"The Mahakam Block is a problem in the transition period. Now if you look at the Rokan block, more or less the same thing will happen, "said Nicke.

Based on data on oil production profiles and the Rokan Block, a downward trend has been seen that has continued from 2012 to 2019. In 2012, oil and gas production from the Rokan Block was recorded at 338,500 barrels per day (BPD). The amount is produced from 615 wells for a year. Meanwhile, in 2019, oil and gas production from the block will only be 186,000 bpd, and there will be no drilling activity at all.

"It dropped dramatically," Nicke said.

Looking at the declining production profile, Pertamina estimates that without drilling activity at all until next year when the block is transferred to Pertamina, production is estimated to only have 140,000 BPD left. If this is the case, Pertamina claims that it will be difficult to restrain the decline rate.

"It's an old well that has been sucked up for 92 years. Surely the decline rate is extraordinary. This is happening. Reflecting on the Mahakam Block, in the last year, drilling in the block only occurred in six wells, out of which 60 should have been. "

Bisnis Indonesia, Page-23, Monday, March 9, 2020

Pertamina Chases Target

Unfortunately, the progress of refinery construction megaprojects is still slow due to various problems, especially the amount of investment needed. Not to mention, the margin of difference between production costs and selling prices is also relatively small. 

     Various efforts have been made by the government, ranging from providing incentives, tax breaks, ease of licensing, to providing locations. However, it was not also able to accelerate the completion of the construction of refineries in this country.

President Joko Widodo in TPPI Tuban East Java

President Joko Widodo also expressed his frustration several times. Until finally in December last year directly checked the Grass Roof Refinery / GRR Tuban construction project, East Java, which was integrated with PT Trans-Pacific Petrochemical Indotama (PT. TPPI). 

    At that time Jokowi even gave PT Pertamina (Persero) an ultimatum by giving 3 months to confirm the position and strategy of the Tuban Refinery development.

Pertamina was asked to accelerate the completion of the refinery project before the end of 2023. Based on Pertamina's data, from a number of projects accelerating the modernization of the existing refineries (Refinery Development Master Plan / RDMP) as well as the construction of new refineries (Grass Roof Refinery / GRR) with a total investment of the US $ 40-US $ 50 billion.

The Balikpapan refinery has progress of more than 13% and this year it is targeted to reach 40%. Furthermore, the development targets for the Balongan and Cilacap Refineries in Central Java are still 10% each. For the Cilacap Refinery, Pertamina in 2012 has actually cooperated with Saudi Aramco. However, as of March 2020, there was still no clarity about the cooperation plan.

Saudi Aramco

"We are still waiting for their offer [Saudi Aramco] as to what for this new scheme," said Pertamina President Director Nicke Widyawati.

Nicke Widyawati

The cooperation scheme has changed, bearing in mind that in nearly 3 years the agreement to form a joint venture between Pertamina and Aramco in the Cilacap Refinery project did not immediately meet an agreement related to asset valuation. 

    However, the cooperation options are certainly similar to the development of the Balikpapan Refinery. Overall Nicke is optimistic that the target of lifting 1 million barrels of oil per day (BPD) can be achieved 4 years faster than the original plan of 2030. Moreover, Pertamina continues to accelerate the construction of refineries, day and night, so that it can be completed faster and targeted.

"This optimism is because in 2026 most of the new refineries we have built are already in production."

Pertamina continues to explore various opportunities to acquire oil and gas blocks abroad and is targeting to drill 411 wells by 2020, an increase of 17% compared to the 2019 target of 351 wells. The company even allocated an investment of US $ 7.8 billion, up 84% compared to 2019 valued at the US $ 4.2 billion.

Fajriyah Usman

Pertamina Corporate Communication Vice President Fajriyah Usman added that by accelerating the construction of the refinery, the refinery capacity is targeted to be 2 million barrels so that it can meet domestic fuel needs from its own refineries.

"The target is for all RDMP and GRR megaprojects to be completed in 2026, and gradually refinery capacity increases starting in 2022," Institute for Essential Services Reform (IESR) Executive Director Fabby Tumiwa believes that the slow agreement with potential Pertamina partner investors is an obstacle to refinery development in addition to funding problems.

"What needs to be done immediately is the acceleration of agreements with partners for other refineries. In addition, EPC contracts for upgrading refineries, for example, Balongan West Java, and Dumai refineries in Riau Sumatra. " 

     However, he is optimistic that the RDMP project will start to look successful in 2022-2024, provided the agreement with Pertamina's partners does not back down. "The SOE and Pertamina ministries are trying on track, especially as the project is monitored by the President."

Various efforts have been made to realize the dream of building a new refinery. If the realization is still slow, maybe because it is indeed "not all happy with the project".

Bisnis Indonesia, Page-23, Monday, March 9, 2020

YYA Well Operations in 2021

PT Pertamina Hulu Energi targets the YYA well in the Offshore North West Java (ONWJ) Block to resume operations in 2021. 

Ifki Sukarya

Ifki Sukarya, Vice President Relations of PHE, explained that as of December 2019, the YYA Well had been carried out by plug and abandon and platform lifting.

However, until now it is still waiting for approval of the document on the Recovery of Life Functions in the affected area. Meanwhile, the Environmental Function Recovery Plan document is a series of activities handling contaminated land which includes planning, implementing, evaluating and monitoring activities to restore environmental functions caused by environmental pollution and/or environmental damage.

"It is hoped that by the end of 2021 it will be onstream," he said.

Meanwhile, Ifky said it was trying to complete the process of compensation payments for residents affected by oil and gas leaks. As for now, there is still a lot of citizen data that is not in accordance with the Population and Civil Registry Office data. 

     In addition, there are still two districts that have not yet implemented data collection for the second wave, namely Bekasi Regency and Karawang Regency.

"We hope to finish as soon as possible, depending on the Regency Government," he explained.

Previously, PHE through its subsidiary PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), had completed the initial compensation payment for residents affected by oil spills in Karawang Regency and Bekasi Regency, West Java.

Bisnis Indonesia, Page-23, Friday, March 6, 2020

Pertamina Hulu Energi Booked US $ 590 Million in Profit

PT Pertamina Hulu Energi (PHE) managed to book a profit of US $ 590 million last year, up 23.68% from the realization of 2018 of US $ 477 million. The increase in profits was supported by the high realization of the company's oil and gas production.

PT Pertamina Hulu Energi (PHE)

PHE's President Director Meidawati said last year's profit realization of US $ 590 million was higher than the 2018 achievement of US $ 477 million. While revenue realization was US $ 2.67 billion, up by 5.81% from the realization in 2018 of US $ 2.53 billion. The increase in financial performance was when the price of oil dropped from US $ 68 per barrel in 2018 to US $ 62 per barrel in 2019.

The company's profit could be higher if last year's oil price reached US $ 68 per barrel. Last year, the company's oil production reached 78,002 barrels per day (BPD). This realization increased by 13.05% from 2018 production achievements of 68,996 bpd. The company's gas production realization also increased slightly from 794 million standard cubic feet per day / mmscfd in 2018 to 803 mmscfd in 2019.

According to him, the achievement of this production performance was due to an increase in oil and gas production from the Jambi Merang and Tomori Blocks. In addition, additional production oil and gas also comes from optimizing planned shutdowns on the Offshore North West Java Block (ONWJ), West Madura Offshore (WMO), and Offshore South East Sumatra (OSES).

"In addition, this production achievement is also due to the success of PHE in reducing production decline from an average of 35% to 20%," Meidawati said.

Blogger Agus Purnomo in PT. PHE West Madura Offshore (WMO)

Meidawati added that ONWJ Block oil and gas production was recorded to increase despite an oil spill from one of its fields, the YY Project. This is because the acquisition of oil and gas production from reworking wells in other fields is very good so that it can cover the lost production from Project YY.

 "Because we work a lot on the ONWJ Block too. So the incidence of oil spills is not very influential. We got a lot of oil and gas production coming in, gas sales also went up, "Meidawati said.

This year, Meidawati hopes that some of the subsidiaries that were the mainstay in the past year will still be able to contribute maximally. This is because his party has set a higher oil and gas production target this year, namely 84 thousand bpd of oil and 822 mmscfd of gas. To pursue the target, he plans to do more massive activities.

"We will carry out drilling for the development of 51 wells and exploration of 6 wells, as well as the reworking of 50 wells," he said.

One of them, he plans to drill two exploration wells in the Nunukan Block. Because, according to the approved plan of development / POD, this block must start producing oil and gas next year.

"If there is no oil and gas flowing, we must return it to the government. Even though we have the privilege to have management rights, "Meidawati said.

Investor Daily, Page-9, Friday, March 6, 2020

Pertamina Assesses Transfer of Bontang Refinery Location

PT Pertamina (Persero) is reviewing the transfer of the location of the Bontang Refinery Project with a capacity of 300 thousand barrels per day (BPD) to Arun, Aceh or Kuala Tanjung, North Sumatra. The relocation of the refinery location because the company is targeting the international market.

Heru Setyawan, Director of Investment Planning and Risk Management, said that there were several locations considered by her to be the location of the construction of this new grass root refinery / NGRR. However, his party has not confirmed the chosen location because it is still conducting studies.

"We have plans to move the Bontang refinery, one of the locations from Bontang, Kuala Tanjung and Arun. So there is another study, "said Heru Setyawan.

Heru Setyawan explained, the consideration of moving the location of the Bontang refinery was because the existing infrastructure at the current location in Bontang, East Kalimantan was also used by other companies. On the other hand, the company is trying to optimize the use of existing assets. In addition, relocation also takes into account the availability of land and markets.

"Because Kuala Tanjung is close to the market, there is land. Because there is near the international market, then in Sumatra there is also a market, "said Heru.

Overseas Oil and Gas LLC (OOG)

Before deciding on the relocation of the Bontang Refinery, it still has to complete several agreements with its previous partners namely Overseas Oil and Gas LLC (OOG). He said he decided not to continue working with the oil and gas company from Oman.

"We propose to be revoked, terminated, but this must be an agreement between the two parties," he explained.

Therefore it will look for new partners to build this refinery project. While selecting partners, the Bontang Refinery work will continue. The selection of partners has already begun by Pertamina right now.

Previously, Pertamina Corporate Communication Vice President Fajriyah Usman revealed, his party no longer partnered with OOG in the Bontang Refinery Project because the framework agreement signed by the two companies had ended in December 2019. The Company no longer continued cooperation because OOG's performance was not in accordance with its commitments.

The operation of the refinery is still ongoing. This year it will complete the Bontang Refinery study location, feasibility study / FS, and search for partners.

The company also plans to start the general engineering design / GED engineering work in 2020. The latest development, OOG has signed a memorandum of understanding on the construction of the Bontang Refinery facility with PT Meta Epsi and PT Sanurhasta Mitra Tbk (MINA).

The two companies will build supporting facilities (outside battery limit / OSBL), such as pipes, water treatment facilities, and fabrication. In addition, OOG has conducted open bidding in Singapore to engineering companies with a good reputation for conducting a financial feasibility study on 30 April.

Pertamina plans to accelerate the Bontang Refinery Project by combining the front end engineering design / FEED package auction and engineering, procurement, and construction / EPC. On the other hand, the company monitors OOG's efforts in seeking project funding.

Luhut Binsar Pandjaitan

Because this project's investment of US $ 1015 billion will all be borne by partners. Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan had encouraged Pertamina to partner with oil and gas companies from the United Arab Emirates for the construction of the Bontang Refinery.

    At that time Luhut said that Pertamina's partners could have been replaced if the performance was not good. The reason is, even though the project was agreed upon several years ago, this project has not yet been completed.

ADNOC

"We want to replace the company from Oman, maybe with Abu Dhabi, ADNOC or other companies," said Ruhut Binsar Pandjaitan.

Investor Daily, Page-9, Thursday, March 5, 2020

2030, Indonesia Gas Production Reaches 12,300 MMSCFD

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) will increase national gas production to 12,300 million standard cubic feet per day / mmscfd. This will make Indonesia one of the world's major gas producers. 

SKK Migas

    Based on the national energy general plan (RUEN), gas production in Indonesia is expected to continue to decline due to a natural decline in the production rate of 20% per year.

However, during 2015-2019, SKK Migas was able to maintain gas production above the RUEN target. Last year, gas production was recorded at 7,254 mmscfd and lifting 5,923 mmscfd.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto is optimistic that national gas production will continue to rise going forward. This is after the discovery of spare parts of gas in the Sakakemang Block and the completion of the Masela Block revised plan of development / POD last year. Along with achieving the target of 1 million barrels per day (BPD) of oil production in 2030, gas production will also increase to 12,300 mmscfd.

"The completion of the Masela Refinery Project and the main upstream oil and gas project, as well as the discovery of other new oil and gas fields, will make Indonesia again one of the world's major gas producers," Dwi Soetjipto said.

SKK Migas has four strategies to increase national oil and gas production. In particular, SKK Migas will maintain the high level of existing production, the transformation of resources into production, accelerate enhanced oil recovery / EOR, and exploration to find large oil and gas reserves. At present, SKK Migas has identified 12 areas that have the potential to contain large amounts of oil and gas.

"With the details of 6 areas in western Indonesia, 4 areas in eastern Indonesia, and 2 areas in the deep sea," Dwi said.

Meanwhile, referring to data from the Ministry of Energy and Mineral Resources (ESDM), there will be an additional gas supply of 3,806 mmscfd in 20212017, namely pipeline gas 1,898 mmscfd and liquefied natural gas (LNG) 1,907 mmscfd. This gas supply comes from the 192 mmscfd JambaranTiung Blue Project in 2021 and the 400 mmscfd Corridor and Jabung Block in 2022.

In 2023, additional gas will come from the 300 mmscfd Sakakemang Block of Cendana and Alas Tua 60 mmscfd, the Kasuri Block 197 mmscfd, and the 100 mmscfd Indonesia Deepwater Development (IDD) Project. 

the Nunukan Block

   Furthermore, other projects contributing to boost Indonesia's gas production are the Nunukan Block 90 mmscfd in 2024, the Natuna Block 230 mmscfd in 2025 and 2028, the Tangguh Refinery Train3 725 mmscfd in 2022 and 2026, and the Masela Block 1,512 mmscfd in 2027. 

the Natuna Block

    According to Dwi, project completion main upstream oil and gas and Mega Masela Project will make Indonesia again become one of the world's major LNG producers.

"This can increase the contribution of upstream oil and gas to the increase in supply for the national industry and to supply world LNG needs so that it will further increase the country's foreign exchange," he explained.

He added, Indonesia had the opportunity to become a major supplier of global LNG again. For information, Indonesia has been the largest LNG exporter in the world since 1977. 

    However, along with the decline in national gas production and the government's policy to prioritize domestic gas utilization, Indonesia's contribution to the LNG market continues to decrease. However, this national gas production will not be entirely exported after increasing drastically.

"This supports the Government in increasing the competitiveness of domestic industries with the availability of gas supply," Dwi said.

Separately, Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources Ego Syahrial stated that the current government policy is to transform energy from oil dominant to gas dominant.

"In the future, gas will become the future of green energy along with renewable energy. The transition from fossil fuels to gas is a solution for today's global challenges, "he said.

In addition to encouraging increased gas production, his party is also increasing the development of gas infrastructure to meet the growing domestic gas demand.

"We also want to ensure and maintain that upstream gas activities remain attractive to investors," Close Ego.

Investor Daily, Page-9, Thursday, March 5, 2020

PT Pertamina Records the Best Achievement

During the year 2019, PT Pertamina EP Cepu (PEPC) recorded its best achievement. Starting with PEPC, which again contributed to the largest profit in the Pertamina subsidiary with a value of USD 849.5 million from total revenue of USD 1,803.96 million. Achievement of PEPC's profit in 2019 increased by 0.75% from the achievement of its profit in 2018 with a value of USD 843.1 million.

In addition to recording the largest profit from PEPC's production realization in 2019, the Banyu Urip Field was recorded to be able to achieve a lifting realization of up to 102% of the target. The Banyu Urip field, which contributes more than 25% of national oil production, has exceeded the 2019 production target with an average production of 217.6 MBOPD.

The Kedung Keris Field, which was already on stream on November 22, 2019, contributed to an additional 5,000 BOPD of national oil production which could be increased to 10,000 BOPD at peak production. While the progress of the JTB project itself as a whole at the end of 2019 has reached 50.05% (from the aspects of Land Acquisition, Early Civil Works, EPC Gas Processing Facilities and Drilling).

Achievement of the Health Safety Security Environment (HSSE) Performance in 2019 with the acquisition of 7,082,275 working hours of congratulations has led PEPC to win the Zero Accident Health and Safety (K3) award from the Governor of East Java and Champion HSSE Performance in the SKK Migas K3LL Award.

JTB (Jambaran Tiung Biru) Field

This achievement shows the commitment of PT Pertamina EP Cepu (PEPC) to always prioritize HSSE Excellence aspects in completing the JTB project as always delivered by the President Director of PT Pertamina EP Cepu (PEPC), Jamsaton Nababan, that the left hand is HSSE and the right hand is risk management. Jamsaton stated that PEPC was optimistic that it would be able to complete this national strategic project in a timely and appropriate manner.

"I am very happy with the achievements of PEPC in the 2019 performance," said Jamsaton. This proves the sincerity and hard work and high commitment of the entire Team in making a tangible contribution to the project and the company. I really appreciate the performance given by PEPC workers and also the stakeholders who have been there to support PEPC. " said Jamsaton Nababan.

Bhirawa, Page-10, Wednesday, March 4, 2020