Location of the Masela LNG Refinery Port on Nustual Island

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the port construction site for the Abadi liquefied natural gas / LNG project, the Masela Block has been established on Nustual Island, Tanimbar Islands.

This port serves to support the construction of the Abadi LNG Plant. In the official statement of SKK Migas, it was stated that the decision was made in Maluku Governor Decree # 96 of 2020 on February 14, 2020. 

Abadi Field natural gas

   The construction of the port at an area of ​​about 27 hectares was to support the development and production of Abadi Field natural gas and the provision of facilities and infrastructure, including facilitating the movement of goods including parts.

Nustual Island

SKK Migas Head Dwi Soetjipto said the location on Nustual Island was only for the port, not including for the LNG plant. However, the location of the refinery will probably not be far from Nustual Island.

Dwi Soetjipto

"This is for the port. "The refinery will be near there, right next to the island next to it," he said.

SKK Migas Business Support Deputy Sulistya Hastuti Wahyu said, after the determination of the location of SKK Migas and Inpex Masela Ltd as the Masela Block operator, will cooperate with the National Land Agency (BPN) for the land acquisition process.

"In this land acquisition process, there will be a process of measurement and payment of compensation, which is led by BPN. It is estimated to take around eight months, "he explained.

In the announcement of the Maluku Regional Secretariat, it was also mentioned that the overall land acquisition stage was estimated to take around eight months. Meanwhile, the construction period for the port of liquefied natural gas refineries is estimated to reach 58 months.

SKK Migas Deputy for Operations Julius Wiratno added, Nustual Island could not be the location of the Abadi LNG Refinery because of its very small size. This island can only be used for jetty or other functions in accordance with the details of the results of the front end engineering design / FEED later.

"For LNG refineries requires a very large land area of ​​almost one thousand hectares, if coupled with a buffer zone can be around 1,400 hectares," he explained.

Inpex Masela Ltd

In addition to land acquisition, currently, Inpex also conducts FEED auctions and makes guidelines for the auction plan for Engineering, Procurement, and Construction / EPC packages. Both will be used as parameters to determine the Final Investment Decision / FID.

According to Julius, FID is targeted to be carried out in the fourth quarter of 2022. If everything goes according to plan, the construction of the Masela LNG Project will be able to begin in the first quarter of 2023. The existence of the Corona Virus spread, he admitted, will have an impact on the ongoing process. However, this can still be anticipated.

"The consequence that appears is a matter of time management that is a little taken up. It takes about one month to clean survey equipment with disinfectants, especially equipment from countries exposed to Covid-19. This survey equipment is very important because it supports direct data for FEED purposes, "explained Julius.

Covid-19

Despite the time constraints, he stressed that SKK Migas remains committed to escorting the project to completion as planned to meet the oil production target of 1 million barrels per day (BPD) by 2030.

SKK Migas targets the Abadi Project to begin production in 2027. The project is projected to produce 9.5 million tons of gas per year in LNG and 150 million cubic feet per day / mmscfd for pipeline gas.

INPEX Corporate Communication Manager Masela Moch N Kurniawan said that his office was aware of them. For this reason, his party appreciates, thanks and supports the decision.

"As operators of the Abadi LNG Project, we will continue to coordinate and communicate with SKK Migas to continue the land acquisition process for the LNG refinery port based on the Governor's decree. So we can realize the stages of the Abadi LNG project in accordance with the POD approved by the Indonesian government, "he said.

Investor Daily, Page-9, Wednesday, March 18, 2020

Progressive Masela LNG Project

The planned development of the Abadi Liquefied natural gas / LNG field Masela Working Area shows progress. Special Work Unit Upstream Oil and Gas Business Activities (SKK Migas) and Inpex Corporation will work closely with the National Land Agency for the land acquisition process.

Inpex Corporation

This followed the stipulation of 27 hectares of Nustual Island (Ha) in the Petuan region of Lematang Village, South Tanimbar, Regency Tanimbar Islands, as the site of the construction of the Masela Blok LNG refinery port. 

the Masela Block

     The Abadi Field is the first Masela Block in the Maluku region which is being developed and operated by Inpex Masela Ltd.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said the island chosen between his party together with Inpex Masela and the Maluku regional government namely Nustual Island, which would later be used as infrastructure support for LNG logistics needs. 

     The overall land acquisition stage is estimated to take approximately 8 months, while the implementation time period for developing the LNG refinery port is estimated to be approximately

for 58 months.

"Yes, near Nustual Island," he said.

As for Nustual Island, there is Yamdena Island which has an area of ​​2,981 square kilometers. In addition to Yamdena Island, there is also Selaru Island, which has a relatively smaller area compared to Yamdena, which is 353.87 km square.

Previously, Maluku Governor Murad Ismail issued an announcement regarding the location of the construction of the Abadi Abadi LNG refinery port on Nustual Island on March 13, 2020. Deputy of Operations Julius Wiratno said the land requirement for the construction of the LNG terminal was at least 900 Ha. Coupled with a buffer zone that requires at least 1,000 hectares of land.

"The LNG plant is big, Nustual is a small island. Most meant for supporting ports, "he said.

Julius said if everything goes according to plan, construction of the Masela LNG Project can begin in the First Quarter of 2023.

Bisnis Indonesia, Page-23, Tuesday, March 17, 2020

Cepu Block Encouraged to Increase Production by 30 Thousand BPD

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets Cepu Block oil production to increase by 30 thousand barrels per day (BPD) in 2024. The Oil and Gas Block is the government's mainstay to increase national oil lifting.

Cepu Block 

Head of SKK Migas Dwi Soetjipto said, in order to pursue the target of producing 1 million BPD of oil by 2030, his office was trying to accelerate efforts to increase production. 

ExxonMobil Cepu Limited (EMCL) in Cepu Block

    Some of these strategic efforts were implemented in the Banyu Urip Field, the Cepu Block managed by ExxonMobil Cepu Limited (EMCL). Of the three strategies implemented in the block, it is targeted to have an additional production of more than 30 thousand BPD in 2024.

"We hope that this additional project will be completed on time so that additional production from the Banyu Urip field can be realized in 2022," Dwi said.

Dwi Soetjipto

This was the result of Dwi Soetjipto's meeting with EMCL President Louise McKenzie on Wednesday (March 11). From the results of the meeting, it was found that the potential of Banyu Urip could still be increased through three strategies to reduce the rate of natural production decline. The first strategy is to monetize associated gas to eliminate bottlenecks of oil production in the Banyu Urip Field.

Second, the addition of insert wells to produce oil from carbonate reservoir areas that have not been produced. Finally, in line with the transformation of SKK Migas in the Resource to Production (R to P) acceleration strategy, namely proving its upside potential in the Banyu Urip Field.

According to SKK Migas, there is the potential for additional reserves that are shallower than the reservoir currently produced. Therefore EMCL will conduct an evaluation to drill appraisal wells to add data on rock characteristics and reservoir productivity. Until now, various optimizations in the Banyu Urip Project have proven to contribute more to Indonesia.

One of them is an increase in reserves of the Banyu Urip Field which is more than doubled compared to the first field development plan or POD, from 375 million barrels to 940 million barrels. In addition, Cepu Block oil production was also successfully increased by 33% from previously 165 thousand BPD to 220 thousand BPD. Furthermore, efforts are currently underway to increase production to 235 thousand BPD.

Investor Daily, Page-9, Tuesday, March 17, 2020

Worker Innovations Generate Pertamina EP Efficiency

PT Pertamina EP recorded value creation consisting of efficiency (cost-saving) and additional revenue from the creativity and innovation of company workers over the past three years totaling the US $ 566 million or equivalent to Rp 7.8 trillion (average exchange rate of Rp13,925 per US dollar on last three years) of the target of US $ 87.5 million.

Of the 1,602 innovations produced by Pertamina EP (PEP) workers in the 2017-2019 period, 98 innovations have been replicated, even five of which were patented at the Directorate General of Intellectual Property at the Ministry of Law and Human Rights. 

    Five innovations of PEP workers who have obtained patents in the Ministry of Law and Human Rights are PEP Asset 3 Jatibarang Field PC Prove Work Over Well Services (WOWS) in Indramayu, West Java in the form of Tubing Test Plug, PC Prove is just like that of PEP Asset 1 Jambi Field in Jambi in the form of an electronic data recording buffer to measure underwater well pressure, and IP Centribike from PEP Asset 5 Sangasanga Field in Kutai Kartanegara, East Kalimantan in the form of portable oil well water content analysis tools.

Then RT Prove SPE from PEP Asset 4 Tanjung Field in Tabalong Regency, South Kalimantan took the form of a pressure gauge at oil well and Prove Super Cyclone PC from PEP Asset 5 Tarakan Field in Tarakan City, North Kalimantan in the form of a sand separator in the oil production well. 

    Thanks to the innovation support of these workers, the production of a subsidiary of PT Pertamina Persero as well as a cooperation contract contractor (KKKS) under the supervision of SKK Migas in the last three years has also increased.

In 2017 oil production was 77,154 barrels per day (BOPD), rising to 79,445 BOPD in 2018, and last year to 82,213 BOPD. While gas production was 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 2018, and 959 MMSCFD in 2019.

Tutuka Ariadji, Professor of Petroleum Engineering at the Bandung Institute of Technology, said that the innovation of the patented PEP workers was encouraging news. This will motivate institutions and workers to develop further and wider forms of innovation.

"These tools are part of the surveillance (monitoring) important parameters in oil production. Surveillance is the key to success in reservoir management, "he said.

According to Tutuka, innovation affects the increase in production, increase, and also budget savings.

"Innovation needs to be linked to increased oil and gas production, optimization of field development and digitalization," he said.

Beny Lubiantara, Chair of the Opinion and Study Division of the Indonesian Petroleum Engineering Association, said true innovation is not an option but a necessity. Especially in the era of low oil prices, breakthroughs through innovation are expected to not only make the process more simple and effective but also have an impact on cost efficiency and production optimization.

"Innovation is always triggered by colleagues in the field who run production operations every day and encounter problems in the field. Many problems are challenging and encourage simple innovations that fit the needs in the field or fit for purpose, "he said.

Beny said all PEP workers' innovations are useful to reduce costs, speed up data acquisition, and reduce wellness problems.

"RT Prove SPE and PC Prove Super Cyclone are indeed relative impacts are directly related to the optimization of production," he said.

According to him, even the simplest innovation works need to be patented. This is common in international upstream oil and gas industry practices. Innovations such as the five patents supported by PEP management will increasingly trigger the enthusiasm of colleagues in the field to think and find new ideas and innovations to anticipate challenges faced in the field which are increasingly complex.

"Workers in the upstream industry must be creative, many simple things can be improved in the field, IATMI strongly encourages innovations like this, one innovation will encourage new innovations again. The oil and gas industry is very dynamic, innovation is a must ! "he said.

Pri Agung Rakhmanto, the founder of the ReforMiner Institute, added that efficiency and innovation are a continuous process. This is very good and positive to increase production.

"However, this needs to be accompanied by efficiency and standardization in the procurement system," he said.

Investor Daily, Page-9, Tuesday, March 17, 2020

Saudi Arabia Increases Oil Production.

Saudi Arabia for the first time in the last decade announced a decision on increasing oil production capacity. The United Arab Emirates, its close partner at OPEC, followed a similar step.

Saudi Arabia, Wednesday, March 11, 2020, announced a decision to increase oil production capacity. This is the first time in more than a decade. This step was taken a day after Riyadh announced another step in the form of falling oil prices to be sent to the US. This action triggered the biggest oil price fall since the 1991 Gulf War.

The United Arab Emirates (UAE), a close partner of Saudi Arabia, took a similar step, namely to increase oil production capacity starting next April. Two The Gulf Arab state and members of the Organization of the Petroleum Exporting Countries have united against Russia, a non-OPEC oil producer, which rejects proposals for reducing world oil production.

The Saudi Arabian Energy Ministry has ordered oil-producing company Aramco to increase oil production capacity from 12 million barrels per day to 13 million barrels per day.

Saudi Aramco

"The company (Aramco) is exerting its utmost efforts to implement this directive as soon as possible," said Amin Nasser, CEO of Aramco.

There is no information about the time frame for implementing the policy. Increasing production capacity certainly requires billions of US dollars of investment. Aramco said the directives came from the Saudi Ministry of Energy. 

Prince Mohammed bin Salman (MBS)

    The energy policy of the royal state was generally controlled by the Crown Prince Mohammed bin Salman (MBS) and Energy Minister Prince Abdulaziz bin Salman who was still a blood relative of the MBS.

Currently, Saudi Arabia produces around 9.8 million barrels per day. This amount of production is an implementation of an agreement between OPEC and other oil-producing countries, including Russia, related to production cuts to reduce oil supply in the world market so that oil prices rise. 

    But since the end of last week, Saudi Arabia has taken dramatic steps that have triggered a collapse in oil prices. This was done after Russia refused to work together to reduce production. It is estimated, other OPEC member countries will follow the steps of Saudi Arabia.

By increasing oil production and lowering official prices for Asia, according to observers, Saudi Arabia wants to put pressure on Russia to dominate market supply and control prices. As a result of the oil price war caused by Saudi Arabia last Monday, crude oil prices dropped 25 percent, the biggest drop since the 1991 Gulf War. The price of Brent crude for May delivery fell 24 percent to 34.36 US dollars per barrel.

Selfie in Gulf War 1991

Moscow will raise the UAE, following Saudi Arabia's steps. The UAE national oil company announced Wednesday to increase supplies by more than 4 million barrels per day in April and increase production capacity to 5 million barrels per day.

The President Vladimir Putin

Moscow said Russian oil companies might also increase production to 300,000 BPD and could increase by 500,000 BPD. Russia indicated Tuesday it was ready to negotiate. However, Saudi Arabia insisted, there was little meaning if the negotiations would only confirm the inability to reach an agreement.

"Most likely the end of this crisis is the emergence of painful processes for several weeks or months until oil prices are low enough.

That way it can change the fundamental views of Moscow and Riyadh so that the two parties again reach a kind of compromise, "so the views of Eurasia Group, a political risk consulting company.

Stock market

Stock markets in Asia and Wall Street futures exchanges again depressed on Wednesday, March 11. Investors and market participants appear skeptical about Washington's stimulus package offer to fight the widespread Covid-19 outbreak, including in the United States, and the continued effects of the oil price war. 

   Many analysts say investors need to remain vigilant for further market volatility. This is because Covid-19 Wabab still raises risks to public health in many countries. If it drags on, the pressure on the global economy gets stronger.

Covid-19

The financial markets did seem to have recovered from a brutal global sell-off on Monday (March 9) triggered by a double shock, namely the collapse of oil prices and the worsening Covid-19 Plague. However, the increase appeared short-lived in early trading on Asian markets on Wednesday.

The stock market, US futures fell 1.54 percent and the MSCI index for Asia Pacific shares outside Japan dropped 0.04 percent. The Australian stock market is down 1.31 percent. Japan's Nikkei index erased earlier losses by rising 0.24 percent in early trade.

Earlier this week, US President Donald Trump said he would take "major steps" to defuse economic tensions caused by the spread of the coronavirus of the species. The headlines also focus on a discussion of the possibility of a payroll tax cut, a thing that helps lift market sentiment. However, the lack of continuation of talks on the topic has made some investors unimpressed and tend to be skeptical.

"We were promised something substantive from the Trump administration. If it hasn't come at this hour, there is a possibility of a delay, "said Michael Mc Carthy, chief market strategist at CMC Markets in Sydney Australia. "That's why the market has a negative tone.

From the perspective of global investors, there is still a lot of downside risk. " On Wall Street, the three major indices increased by almost 5 percent on Tuesday, one day after the US equity market suffered its biggest daily loss since the 2008 financial crisis.

Kompas, Page-5, Thursday, March 12, 2020

PHE is Ready to Boost YYA-1 Well

Pertamina Hulu Energi (PHE) plans to reuse the relief well of the North West Java (ONWJ) Offshore Block used to cover gas leaks in the Karawang Sea in the middle of last year. PHE's Managing Director, Meidawati said, the process of reuse is still ongoing if it goes well, then the impact on new products will be felt starting next year.

"The re-development of YYA-1 production is planned for 2021," Meidawati said.

Meidawati explained, her party was still continuing to study the estimated production at the well. Based on preliminary calculations, production is estimated to be in the range of 1,000 to 1,500 Barrels Per Day (BPD). 

     Previously Director of Operations at Pertamina Hulu Energi (PHE) Taufik Aditiyawarman said that the drilling was planned for three wells. So far they have conducted a number of studies such as studies of subsurface, drilling and platform cutting. The estimated investment for the plan to recover the well is around the US $ 30 million to the US $ 40 million.

"I don't know for sure, recovery, fixing, installing again, maybe the US $ 30 million-USS 40 million," said Taufik.

Director of Engineering and Environment of the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources Adhi Wibowo revealed that the results of the gas leak investigation will be announced in the near future. Until now there is no clarity about the YYA-1 gas leak that caused oil spills and impacted on a number of areas.

"Soon it will be finished, not exceeding this month. It is being finalized," Adhi said.

The investigation effort is indeed in conjunction with the plan to re-use the YYA-1 Well. This is according to the development plan proposed by PHE. The investigation involved a number of experts, both from the Ministry of Energy and Mineral Resources and an independent team. Adhi said that after the investigation, the report would be directly conveyed to the Minister of Energy and Mineral Resources Arifin Tasrif.

For your information, this oil and gas well leak occurred on July 12, 2019, around 01:30 West Indonesia Time at the time of re-entry at the YYA-1 well in the re-perforation activity. Then a gas bubble emerged at the YYA Pavilion from the Ensco-67 rig located in the ONWJ offshore operational area. The YYA-1 well is a former YYA-4 exploration well that was drilled in 2011. This well is the leak.

Kontan, Page-14, Thursday, March 12, 2020

Ensco 67 Rig Blow Out in PHE ONWJ

Government Seriousness Awaited

The government has decided to take over management of the Rokan Working Area in Riau Province, after 50 Years of being controlled by PT Chevron Pacific Indonesia.

PT Chevron Pacific Indonesia

The government also appointed PT Pertamina (Persero) to become the new contractor in the giant oil and gas block starting on 9 August 2021. The decision was taken on the basis of business and economic considerations after evaluating Pertamina's proposal submission. Unfortunately, the transition process and Chevron to Pertamina are still hampered.

Facilities echoed by the government through the Ministry of Energy and Mineral Resources (ESDM) and SKK Migas were, in fact, unable to smooth Pertamina's steps. In the cooperation contract or the transition to managing the Rokan Block, there is indeed no policy that regulates a smooth transition process. On the side other, every contractor of a cooperation contract (KKKS) certainly only refers to the contract.

The Rokan Block

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

Chevron last drilled 91 wells in 2018. In 2019-2021, the company will no longer drill Rokan. This is considered reasonable, considering that the US oil and gas company would leave the legendary oil and gas block.

However, the impact of production decreased dramatically. After that, Pertamina offered alternative investment activities during the transition period, namely the Joint Drilling Agreement (options 1, 2, and 3 JDA). The JDA option is one of the options offered by Pertamina, in which Chevron drills during the transition period at Pertamina's expense.

Chevron

However, the option was rejected by Chevron because it was considered not in accordance with the economy. If so, Chevron has its own standards in drilling activities, while Pertamina also has its own counts. 

Nicke Widyawati

   Pertamina's President Director Nicke Widyawati expressed his concern, given the deadline for the transfer of management of the Rokan Block that is getting closer.

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

Pertamina considers Chevron's policy not to issue new investments during a transition period that is unwarranted. If referring to the Minister of Energy and Mineral Resources Regulation No. 24 of 2018 concerning the Mechanism of Returning Investment Costs in Upstream Oil and Gas Business Activities, the operator is obliged to invest in his Work Area and maintain the level of production until the end of the contract period.

The regulation issued on April 20, 2018 is the second revision of Ministerial Regulation Number 26 of 2017. It's just that, in Article 8 of the Minister of Energy and Mineral Resources Regulation No. 24 of 2018 it is explained that in the non-renewed cooperation contract, the contractor is required to settle the investment cost return . Obligations to settle the value of the return on investment costs included in the letter of determination of management of the new work area and new cooperation contract.

Drilling Certainty

With the rejection of the JDA Option by Chevron, Pertamina's Upstream Director Dharmawan H. Samsu assesses that the possibility of his fate will not be much different from the Mahakam Block. Moreover, Pertamina has not been able to ascertain whether drilling can be carried out this year or not.

"We are still talking about it and of course I cannot put the government first. Of course, the government is also trying to be able to do drilling, but the most important thing is to ensure that when the transfer is managed the drilling team is ready to go to the field. So there is no delay, "he said.

Sonitha Poernomo

When confirmed, Chevron's Corporate Communication Manager Sonitha Poernomo confirmed a number of things were being discussed, including the option to optimize production from this strategic asset.

"However, according to company policy, we cannot provide this information in detail," She said.

SKK Migas Deputy for Operations Julius Wiratno instead asked Chevron to drill in the Rokan Block, later with a cost recovery scheme.

"We will try to conduct drilling as soon as possible to support the achievement of production or lifting targets," he said

Teaching Staff of the Faculty of Earth Technology and Energy, Trisakti University, Pri Agung Rachmanto, said there was no party to be blamed in the transition process that was not smooth. He considered the JDA option offered by Pertamina would be difficult to achieve because the existing production sharing contract (PSC) does not regulate the smooth transition process.

According to. he, both parties must refer to the existing contract, so it would be natural if no agreement was found.

"The decline in production, due to a decline in investment and a smooth transition, may instead be said to be an inevitable consequence," he said

The founder of the Reforminer Institute highlights the regulations issued by the government regarding the transition period and the termination of oil and gas blocks. In practice, the policy is not easy to implement because each party refers to the existing contact clause.

"When the Ministerial Regulation is tried to be applied with the B to B approach, it will not necessarily take place unless the B to B agreement is reached," he explained.

With these conditions, it should be questioned again the seriousness of the government to take over management of the Rokan Block. The most important thing is whether the government is willing if the scheme also offers yields and investment opportunities for other portfolios. If there is an agreement there, it is possible that the Rokan Block transition process will run smoothly.

Bisnis Indonesia, Page-23, Wednesday, March 11, 2020

HCML Supports SKK Migas Apply e-CHSEMS Application

The application of the Electronic Contractor Health Safety Environment Management System (e-CHSEMS) received full support from Husky-CNOOC Madura Limited (HCML) as one of the cooperation contract contractors working under the control of SKK Migas.

The HCML HSSE Manager, Rockyanto Sasabone, revealed that the application of e-CHSEMS is an application of the information technology function and HCML supports the efforts to strengthen the data bank that shortens the procurement process of goods and services while maintaining the performance of Health, Safety and Environmental Protection (K3LL) of Work Partners.

Blogger Agus Purnomo in SKK Migas

The e-CHSEMS application was launched by SKK Migas Surabaya in early March. "General Manager and the highest leadership of the procurement and K3LL functions from around 42 KKKS agreed and committed to supporting the application of the e-CHSEMS Application," he explained.

Bhirawa, Page-10, Wednesday, March 11, 2020

Maluku Governor Supports the Acceleration of the Abadi LNG Project

Maluku Governor Murad Ismail supports the plan of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to accelerate the construction of the Abadi LNG Project, Masela Block in 2021. The government encourages the integrated liquefied natural gas (LNG) project to be integrated. it could start operating in 2026, sooner than originally planned in 2027.

the Masela Block

In its official statement, SKK Migas stated that the Maluku Governor's support was conveyed when he met with the Head of SKK Migas Dwi Soetjipto on Sunday (March 8). The meeting discussed a number of strategic plans for the development of the Abadi LNG Project, the Masela Block.

"In the meeting, at the same time, we discussed the acceleration of land acquisition and the readiness of the local workforce, because the planned infrastructure development for the Masela Block has begun in 2021," Maluku Governor Murad Ismail said in an official statement from SKK Migas, Monday (March 9).

He added, his party would not complicate the licensing process and would be involved in land acquisition efforts. Currently, he has also given permission to use forestry land that will be used for the construction of the Abadi Project production facility, the Masela Block, which is in the form of an LNG refinery.

At present, the Provincial Government through the Governor of Maluku has issued recommendations for 900 to 1,000 hectares of land. The land is expected to accommodate the construction of a gas processing facility of 9.5 million tons per year / MTPA.

"The interests of Maluku so that this national strategic project can take place because it will provide a multiplier effect (double impact) for the regional economy, as well as creating jobs. We must be optimistic that the Masela Block Project will have a positive impact on the people and the Maluku region, "Murad stressed.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto revealed that the process of land acquisition and licensing is usually an obstacle in investment. However, the support of the Governor of Maluku and the acceleration of the development of the Abadi Masela Project will have a positive impact on the upstream oil and gas industry as a whole. This gives a signal that licensing and land acquisition are no longer an investment problem.

"So what is happening in the Abadi Project is expected to convince investors, especially world-class oil and gas companies to invest in technology and technology in Indonesia. Efforts to realize the production target of 1 million barrels per day (BPD) must be supported by a good investment climate, "he said.

At present, Inpex is still carrying out an environmental impact analysis (EIA) survey for onshore LNG refineries and Floating Production Storage and Offloading (FPSO) facilities. The EIA survey process has been carried out by Inpex since November 2019 and is targeted to be completed within the next year, after going through a survey in the dry and rainy season.

During the construction phase, Inpex must undertake a number of activities, including the construction and operation of underwater gas wells and the construction of the Subsea Umbilicals, Risers and Flowlines (SURF) facilities off the Arafura coast. Furthermore, Inpex also built a production facility, FPSO, underwater gas pipeline from the FPSO to a gas receiving facility (GRF) on land, and an LNG plant on land.

The Abadi project is projected to produce 9.5 million tons of gas per year in LNG and 150 million standard cubic feet per day / mmscfd for pipeline gas. Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the Abadi LNG Project was still targeted to operate in 2027.

However, his party encourages this gas project to operate faster in 2026, if it is indeed possible to do so. This is so that the country will immediately receive revenue from this project. To be able to speed up the operating schedule in 2026, Dwi explained that the final investment / FID decision must be completed by the end of 2021. 

     While project construction is targeted to begin in 2021 from the plan in 2022. In addition to working on Amdal, Inpex is holding an auction to carry out front end engineering design work. / FEED and FEED are targeted to be completed by the end of 2021.

Investor Daily, Page-9, Wednesday, March 11, 2020