SKK Migas Accelerates Three Oil and Gas Projects

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) accelerated the operational schedule of the three national upstream oil and gas projects to this year at the time of mobility restrictions due to Covid-19. The three projects will increase oil production by 3,000 barrels per day and gas by 5 million cubic feet per day / MMSCFD.

SKK Migas Deputy for Operations Julius Wiratno said the three oil and gas projects were the development of the Big Bamboo Project and the construction of the Sembakung gas compressor facility by PT Pertamina EP, and the reactivation of the PHE-12 platform by PT Pertamina Hulu Energi West Madura Offshore (PHE-WMO). These three projects should only be completed next year.

Blogger Agus Purnomo in PHE-WMO

"But these projects can be completed by 2020," he said.

He explained the Big Bamboo Block Project would produce gas of 3 mmscfd. At present, the project is still in the stage of working on the engineering, procurement, and construction / EPC package and will go on stream in the third quarter of this year. While reactivation of the PHE-12 platform is an improvement activity that was skewed in 2017 ago.

This project is targeted to be realized later this year and can produce oil of 3,000 BPD. Furthermore, the Sembakung compressor project is also scheduled to be completed by the end of 2020 and will produce 2 MMSCFD of gas.

"The success in accelerating the realization of the upstream oil and gas project when the mobility restrictions in the context of Covid-19 mitigation shows the determination and enthusiasm of the upstream oil and gas people to be able to implement the program agreed in the Work Program and Budget (WP&B) 2020 optimally and efficiently," said Julius.

Julius also revealed that the Meliwis Block Project undertaken by Ophir Indonesia (Madura Offshore) will be completed and start operating this July. This project will produce a gas of 20 MMSCFD.

Dwi Soetjipto

The Head of SKK Migas, Dwi Soetjipto appreciated the innovations made by his ranks with the cooperation contract contractors (KKKS) so as to produce an acceleration of projects in the field. He continues to coordinate with KKKS to ensure that the upstream oil and gas project can run well according to schedule.

"During the Covid-19 outbreak, SKK Migas was able to accelerate the implementation of the completion of three projects," he said.

According to him, if the upstream oil and gas project can run well, there will be an increase in the production and production of oil and gas lifting. In addition, the oil and gas project is also able to move the regional economy and create jobs, especially the community around the project site.

"This is in line with the Government's focus on being able to encourage the economy to move during the Covid-19 outbreak," he added.

Dwi acknowledged the Covid-19 outbreak and the still low oil prices were a real test for efforts to realize the oil production target of 1 million BPD in 2030. One of the important keys to achieving the target was how to keep the project going well on schedule.

The success in accelerating the project was due to the successful implementation of the 2 pillars of the SKK Migas transformation, namely the Integrated Operation Center (IOC) and One Door Service Policy (ODSP).

Previously, four oil and gas projects were operating. First, the Grati Pressure Lowering Project in East Java was undertaken by Ophir Indonesia (Sampang) Pty and produced 30 MMSCFD of gas. Then, the development of the Randugunting Field by PT Pertamina Hulu Energi (PHE) Randugunting in Central Java provided additional production of 5 MMSCFD.

Furthermore, the Buntal-5 Field by Medco E&P Natuna Ltd provides additional gas production of 45 MMSCFD. Finally, Sembakung Power Plant by PT Pertamina EP with a capacity of 4 MW to support upstream oil and gas operations in the East Kalimantan region.

Blogger Agus Purnomo in Petronas Carigali Ketapang II Ltd.

In 2020, SKK Migas targets 11 upstream oil and gas projects to be onstream. Another project scheduled to operate this year is Bukit Tua Phase-3 with an estimated production of 31.5 MMSCFD by Petronas Carigali Ketapang II Ltd. planned to begin operations in the first quarter of last year.

Blogger Agus Purnomo in Petronas Carigali Ketapang II Ltd.

Furthermore, besides Meliwis, two projects will operate in the second quarter, namely the 15 MMSCFD Betung Compressor by PT Pertamina EP, Malacca Strait Phase-1 3,000 BPH by EMP Malacca Strait.

In the third quarter of 2020, there were three oil and gas projects scheduled to operate. These three projects are the 2.4 mmscfd Beauty Project by PT Sele Raya Belida, the LP-MP SKG-19 150 MMSCFD Compressor by PT Pertamina EP, and Peciko 8A 8 MMSCFD by PT Pertamina Hulu Mahakam.

Finally, the Merakes Project by ENI Indonesia is scheduled to begin production in the fourth quarter of 2020. The peak production of the Merakes Field is estimated to reach 60,305 barrels of oil equivalent per day / BOEPD. In 2020, national oil and gas lifting was set at 1.95 million BOEPD, up slightly from last year's 1.8 million boepd realization. 

the Merakes Project by ENI Indonesia

    Specifically, oil production rose to 755 thousand BPH from the realization of 746 thousand BPH, and gas to 1.19 million BOEPD from the realization of 1.06 million BOEPD.

Investor Daily, Page-10, Thursday, June 4, 2020

Masela Still Looking for LNG Buyers

The development of the Masela Block liquefied natural gas or LNG jumbo refinery project in Tanimbar Islands, Maluku Province is still long. Besides being hampered by land issues, Inpex Corporation and Shell Indonesia as the operator have not yet succeeded in finding potential buyers of the liquefied natural gas product. Deputy of Finance and Monetization of SKK Migas, Arief Setiawan Handoko said the process of finding buyers is still long.

So far, there have only been letters of intent (LOL) and memorandums of understanding (MoU) with several parties who have mentioned the purchase volume, some have not, he said.

Previously, Inpex Masela Ltd had conducted an MoU of buying and selling gas from the Masela LNG project with PT PLN (Persero) and PT Pupuk Indonesia (Persero) in February. 

    The memorandum of understanding was intended to start discussions on sales and purchases to supply LNG gas to a gas power plant operated by PLN and natural gas of 150 million standard cubic feet per day (mmscfd) for the co-production refinery to be built by PT Pupuk Indonesia.

But Arief said the MoU had not yet discussed the price scale or product price calculations. Nevertheless, he ensured that SKK Migas continued to record potential buyers, both from the domestic and international markets. 

    SKK Migas is targeting the buyer search process to be completed in 2021. Buyer certainty will also have a positive impact on project sustainability.

In addition to the problem of gas buyers, previously Maluku Governor Murad Ismail has submitted a Governor Decree regarding the determination of the location of the Masela liquefied natural gas refinery port on Nustual Island, Lermatang Village, Tanimbar Selatan District, Tanimbar Islands Regency, Maluku Province, to SKK Migas.

SKK Migas Deputy for Operations Julius Wiratno said the area of ​​the transferred land was still part of the required area.

"Much more is needed to fulfill the LNG refinery development project," he said.

Kontan, Page-12, Wednesday, June 3, 2020

Siemens Supplies Equipment and Generators for Balikpapan Refineries

Siemens Gas and Power were chosen to supply various compression equipment and power plants for the Balikpapan refinery located in East Kalimantan which is operated by PT Pertamina (Persero).

Siemens Gas and Power

"Siemens Gas and Power is proud to partner with Pertamina on this project," said Matthew China Executive Vice President of New Equipment Solutions for Siemens Energy Oil & Gas Division.

According to him, the good performance of his compressor fleet across the region and strong domestic service capability were the main factors of this strategic victory.

SGT-800 gas turbine

"These two factors, coupled with the performance, efficiency, and reliability of the SGT-800 gas turbine, allow for cost savings in the expansion of the Balikpapan refinery and also contribute to the success of Pertamina's RDMP, this certainly plays an important role in increasing Indonesia's energy security," he explained.

Siemens equipment will be installed as part of the Refinery Development Master Project (RDMP) program. The RDMP development involves the construction of a residual fluid catalytic cracker (RFCC) unit designed with a capacity of 90,000 barrels per day (BPSD), LPG sulfur removal unit (SRU), propylene recovery unit (PRU), and middle distillate hydrotreater 80,000 BPSD. Siemens Gas and Power will supply 17 reciprocating compressors, along with a single step hot gas expander.

Meanwhile, the specific compressor models to be supplied include eight HHE-VL compressors, two HHE-FB compressors, four HHE-VG compressors, and three HSE compressors. In addition, Siemens Gas and Power will also supply four SGT-800 industrial gas turbines and five SST-600 steam turbines for Balikpapan power plants.

The hot gas expander will recover waste heat from the RFCC reactor to produce around 20 megawatts (MW) of power, which will be used to drive a central air blower from the plant, along with a single stream turbine.

This unique arrangement will reduce overall steam consumption and result in significant operational cost savings for Pertamina. HHE piston compressors will be used in various refinery processing units which can help ensure stable operation of the plant. 

This compressor has a quality steel frame, so it can reduce vibrations transmitted to the connected pipes and provide maximum stability using internal ribbed walls and integral cross-member bearing saddle which is located between each crank throw.

Investor Daily, Page-10, Wednesday, June 3, 2020

Drilling according to Plan, JTB Project Starts Operating Next Year

PT Pertamina EP Cepu (PEPC) has completed the completion of four oil and gas wells in the Jambaran-Tiung Biru Field (JTB). This subsidiary of PT Pertamina (Persero) will complete drilling of two more wells so that the JTB Project can start operating in 2021.

the Jambaran-Tiung Biru Field (JTB)

Director of PT Pertamina EP Cepu (PEPC) Jamsaton Nababan said the completion phase was an important step in the development of the Jambaran-Tiung Biru Gas Field well. Because the well has entered the final phase before then producing gas.

"We hope that this continued operation can take place safely and smoothly, in accordance with our commitment to safety standards. We hope that the JTB project will run safely, safely and smoothly until the target on stream is achieved by 2021, "he said.

RIG PDSI

The completion of the four wells at Wellpad Jambaran East runs from 6 April to 25 May. At this stage, the production pipeline is installed and all its accessories, including the X-Mass Tree, are used to regulate the gas production flow.

RIG PDSI # 40

The four wells are JAM-3, JAM-4ST, JAM-5ST, and JAM-8. The perforation work will later be done without using a rig. Drilling Operations Manager Dhanar Eko Prasetyo added, his party then moved the rig to Jambaran Central Wellpad once the completion of four wells in Jambaran East was completed on May 25. Subsequently, drilling of two wells in Jambaran Central, namely JAM-6 and JAM-7, began this June.

"In carrying out the work, we ensure the safety of every worker involved. Safe working hours at the Drill Site have reached 934,830 as of May 8, 2020, "he said.

Safe working hours are an important part of the JTB Project operated by PEPC. In total, PEPC has reached 17,391,921 Safe Working Hours. Previously, Pertamina EP Cepu had successfully completed the installation of the Selexol Regenerator and Absorber. 

    In addition, the company has also completed detailed design work (front end engineering design / FEED), land acquisition, and early civil work. In addition to Well drilling, Pertamina EP Cepu is also still working on gas / GPF processing facilities construction and well drilling.

Investor Daily, Page-10, Tuesday, June 2, 2020

The Government Must Tidy Up to Improve the Investment Climate

The government must fix the management of national upstream oil and gas if it wants to increase oil and gas investment after the Covid-19 pandemic. The reason is that although oil prices have begun to rise after OPEC + cuts oil production, oil and gas companies will be more selective in choosing the locations where they invest.

Energy observer from Trisakti University, Pri Agung Rakhmanto said, the current oil price trend has not been able to stimulate national upstream oil and gas investment. This condition is likely to last until next year. To increase national upstream oil and gas investment, the government is judged to need to improve the competitiveness of the upstream oil and gas business.

"How to be able to attract large scale investment, because competition in the global market to attract investment will be very tight," he said.

The improvement needed is that the government solve the problems that have been around. Some of these include completing the revision of the Oil and Gas Law, ease of operation, and improving the quality of the work areas being auctioned and including the quality of the data. Current conditions make solving these problems even more important for national upstream oil and gas investment.

The same was expressed by the Former OPEC Governor for Indonesia Widhyawan Prawiraatmadja. According to him, oil and gas companies will not be aggressive in investing if crude oil prices have not exceeded the limit above US $ 50 per barrel. However, projects that have been committed by the company will continue, such as the development of the East Sepinggan Block which is postponed to next year.

"But for something new, especially exploration, will be delayed for a very long time until the price returns to a very good level in a sustained time," he explained.

In this condition, he advised the government to provide incentives for the upstream oil and gas sector and gas infrastructure. According to him, the incentives in the gas infrastructure sector will provide consumers access to enjoy liquefied natural gas / LNG whose prices are down.

"Instead of LNG we are exported at low prices, it is better to be used domestically so that it helps the industrial sector. LNG is currently cheaper than gas pipelines. The key is the existence of gas infrastructure, specifically for LNG regasification, "Widhyawan said.

While Former Deputy Minister of Energy and Mineral Resources (ESDM) Rudi Rubiandini suggested the government to change the way of managing national upstream oil and gas so that oil and gas investment is attractive again. One of them is by not giving up the management of all completed oil and gas blocks to PT Pertamina (Persero).

Chevron

Granting management rights to Pertamina must be accompanied by an evaluation related to block oil and gas production. According to him, maintaining world-class oil and gas companies such as Chevron and Conoco-Philips is a way to maintain current oil and gas production so as not to decrease significantly. Furthermore, if these companies do not leave, the government can offer a new scheme that encourages exploration activities.

Conoco-Philips

"Then the company can be asked to explore with a scheme that makes them not afraid as before after there will be a discovery of new reserves. So that there is hope for the future, "explained Rudi.

Previously, he said oil and gas companies were reluctant to explore because of concerns that management rights would not be continued.

Fluctuating Potential

Related to the movement of world crude oil prices, Widhyawan revealed, it had started to move up. This is because OPEC + and non-OPEC + countries cut their oil production very drastically. In addition to the agreement between OPEC + countries, this production reduction is also assessed because some fields are not economical to produce, where most of the production costs are higher than prices.

This is supported by the easing of mobility restrictions (lockdown) which increases oil demand. For example, in the United States, sales of gasoline and aviation fuel have risen again after briefly reaching their lowest levels as people move. Oil prices will improve in line with increased demand at the time of reduced production.

"In my opinion, this will continue until the end of the year and beyond unless there is a phase two pandemic that makes some countries forced

restriction, "explained Widhyawan.

Pri Agung also expressed the same thing. According to him, easing lockdown, reducing oil production by OPEC +, and cutting shale oil production are factors driving improving oil prices.

"With the 'new normal' scenario which is rather optimistic, oil prices will be the US $ 30-40 per barrel or more. This is more likely to happen, "he said.

Rudi also predicts that oil prices will still be in the range of US $ 30-40 per barrel because production cuts by OPEC + have not had a maximum impact. This is because oil stocks have not decreased significantly because oil demand is still low due to Covid-19.

"Maybe the end of the year or early next year will be able to reach above the US $ 40 per barrel like a number that makes producers start producing," he said.

This condition, according to Rudi, will still be very difficult for the national upstream oil and gas industry. He explained that for oil and gas companies that have managed oil and gas blocks in Indonesia, oil prices of US $ 30 per barrel can only make the company alive.

Investor Daily, Page-10, Tuesday, June 2, 2020

Procurement of the Abadi Port Project Land Begins

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that it has received a Decree (Maluku) Governor of Maluku regarding the determination of the location of land acquisition for the port of the Abadi LNG Project. Next, land acquisition for this port can be done immediately.

The intended letter is Governor's Decree No. 96 of 2020 which establishes the location of the Abadi Project port on Nustual Island, Lermatang Village, South Tanimbar District, Tanimbar Islands Regency, Maluku. The handover was carried out online by Maluku Governor Murad Ismail in Ambon and SKK Migas Head Dwi Soetjipto in Jakarta.

Dwi Soetjipto

According to Dwi, the submission of the decree was a tangible form of support for the completion of the Abadi Project. Prior to this, the Maluku Provincial Government also quickly issued a Governor's recommendation on a Borrowing and Use of Forest Areas Permit for the Abadi LNG Plant to support the project. This shows the coordination between SKK Migas, Inpex Masela Ltd as the operator, and the regional government is going well.

the Abadi LNG Plant

"Furthermore, with this decree, the land acquisition process can proceed to the next stage, namely the implementation stage in accordance with applicable laws and regulations. "This stage will be held by the National Land Agency (BPN) based on a request from SKK Migas," Dwi Soetjipto said.

For this reason, SKK Migas expects support from all stakeholders at the Maluku Province level, Tanimbar Islands Regency, and the local village government so that land acquisition takes place properly.

Governor Murad revealed, his party was given the authority to issue a decree to determine the location of land acquisition for development in the public interest, including oil and gas infrastructure. It supports the development of the Abadi Project which is expected to have a multiplier effect on the economy and other positive impacts on the people of Maluku.

"This decree is one form of our support for SKK Migas and Inpex as operators of the development of the Abadi Gas Field, the Masela Block which is a National Strategic Project so that the gas project in Maluku Province takes place quickly and smoothly," Murad said.

Before the decree was issued, the Land Procurement Preparation Team formed by the Governor of Maluku had carried out the preparatory stage based on Law Number 2 of 2012 concerning Land Procurement for Development in the Public Interest and Presidential Regulation Number 71 of 2012 concerning Implementation of Land Procurement for Development in the Public Interest and regulations the changes.

These activities include notification, preliminary data collection of locations, and public consultation on development plans, site designation, and the announcement of the location of the development. Meanwhile, President Director of Indonesia Inpex Masela Ltd Akihiro Watanabe appreciated the support of the Maluku Provincial Government and SKK Migas so that the port location decree could be submitted.

"This decree is one of the most important points in the process of land acquisition for the construction of the Abadi LNG refinery port," he said.

Investor Daily, Page-10, Tuesday, June 2, 2020

After Completion, PEPC Prepares to Move the Rig

Another achievement step was achieved by PT Pertamina EP Cepu (PEPC) in the Jambaran-Tiung Biru (JTB) Gas Project, successfully completing the completion stage in the Wellpad Jambaran East drilling activity, which was carried out from April 6 to May 25, 2020.

the Jambaran-Tiung Biru (JTB) Gas Project

This completion stage is the process of installing tubing and all its accessories, including the X-Mass Tree to regulate the flow or flow of gas production later.

RIG PDSI

The wells that have been completed and are ready for perforation of the production zone include 4 wells in Wellpad Jambaran East, namely JAM-3, JAM-4ST, JAM-5ST, and JAM-8. The perforation work will later be carried out by Rigless Operation (not using a rig).

"This completion is an important stage in developing the Jambaran-Tiung Biru Gas Field well because the well has entered its final phase before producing gas. We hope that this continued operation can take place safely and smoothly in accordance with our commitment to safety standards. For this reason, we pray for the JTB Project to proceed safely, safely and smoothly until the on-stream target is reached by 2021, "said Jamsaton, President Director of PT Pertamina EP Cepu.

This was confirmed by Drilling Operations Manager Dhanar Eko Prasetyo, who explained that in carrying out this activity, PEPC remained Compliant and Concerned with applicable safety standards.

RIG PDSI # 40

"After this completion, we will carry out the Rig Move activities or move the rig from Jambaran East to Jambaran Central, starting on May 25, 2020, with the target to be able to start drilling operations at the JAM-6 and JAM-7 wells in June 2020. In the implementation of work, we chose to work safely, by ensuring the safety of every worker involved. Alhamdulillah, safe working hours at the Drill Site have reached 934,830 as of May 28, 2020. " he said.

Bhirawa, Page-5, Tuesday, June 2, 2020

Pertamina is looking for new partners in the Cilacap Refinery Project

PT Pertamina (Persero) is looking for new partners to develop the Cilacap Refinery upgrading and capacity building project. This is after the project economics agreement was not reached with Saudi Aramco, which has had cooperation with Pertamina since 2016.

Fajriyah Usman

     Pertamina Corporate Communication Vice President Fajriyah Usman said Pertamina did not become a partner with Saudi Aramco in building the Cilacap Refinery Project because there was no agreement. Therefore, for the time being, he will work on this project independently while exploring other strategic partners.

"The assessment of [new strategic partners] is underway. However, we cannot convey [the candidates], "said Fajriyah Usman.

Fajriyah Usman explained, Pertamina and Saudi Aramco did not agree on the economic price of the Cilacap Refinery Project. Pertamina offers a rental scheme for the project, the same as the scheme used by the company in Balikpapan Refinery. Under this scheme, Pertamina will pay the rental fees for the joint venture with Saudi Aramco which is building a new refinery unit at the Cilacap Refinery Complex.

"Not agreeing about economic prices which may make calculations not right at this time, when oil and gas conditions are down," Fajriyah explained.

Previously, with the initial scheme, Pertamina and Saudi Aramco also did not immediately reach an agreement related to the valuation of the Cilacap Refinery which caused the project to be delayed.

Nicke Widyawati

Pertamina President Director Nicke Widyawati briefly explained, the difference between the valuations calculated by Pertamina and Saudi Aramco is still very large. The Saudi Aramco count is very low, while Pertamina has a book value as a minimum limit to spin off assets.

Pertamina appointed Saudi Aramco as a partner in 2014. After two years, both of them signed a joint venture development agreement (JVDA) agreement in December 2016. This agreement became the basis for both of them forming a joint venture that will work on the Cilacap Refinery Project.

This JVDA should end in December 2018 but then be extended by six months until June 2019. Then the JVDA will be extended to September, then extended for the third time until October, and lastly extended until December 2019. This agreement is then extended until the first quarter of 2020 but again extended until the end of April.

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 370 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%.

On Target

Meanwhile, Pertamina said that the construction of the Balikpapan Refinery Project has now reached 16.32%, ahead of the last quarter of this year which recorded 15.02%. The details, until May 17, engineering activities have reached 6.05%, procurement 5.85%, construction 4.38%, and commissioning 0.03%.

"The development of this project is still in accordance with the plan, although in the process it must implement strict health protocols," said Fajriyah.

The Balikpapan Refinery Project will increase refinery processing capacity from 260 thousand BPD to 360 thousand BPD and improve the quality of fuel products from Euro II equivalent to Euro V. The Balikpapan Refinery Project is also synergized with the construction of the New Crude Lawe-Lawe Tankage Facility with a storage capacity of 2 million barrel.

Fajriyah asserted Pertamina remained committed to completing all national strategic projects including the Cilacap and Balikpapan Refinery Projects. Pertamina will maximize and optimize the completion of the refinery development master plan (RDMP) and construction of a new refinery (grass root refinery / GRR) so that it can be completed according to the specified time target.

"The RDMP and GRR megaprojects are national strategic projects that have been set to continue during the co-19 pandemic and fluctuations in crude oil prices and the rupiah exchange rate against the dollar. This project is important to ensure that national energy security and independence can be realized immediately, "said Fajriyah.

The entire refinery project is targeted to be completed in 2026. He added, if the project is completed, the refinery's total capacity, which at the moment of 1 million barrels per day (BPD), will increase to 2 million BPD so that fuel needs can be met without the need for imports.

"Hopefully, in 2026, we will be independent by no longer importing BBM," said Fajriyah Usman.

Investor Daily, Page-9, Saturday, May 30, 2020

The Jambi Merang PHE 2D Seismic Survey Is Targeted To Be Completed Mid-July

2D seismic sea survey in open areas carried out by Jambi Merang Cooperation Contract (KKKS) of Pertamina Merang since November 2019 has reached 76.4% or around 22,943 Km.

"We are grateful to the Government for giving us the trust to carry out this work mandate, although full of challenges we are optimistic that survey work will be completed by mid-July 2020," said Pertamina Upstream Director Dharmawan H Samsu while carrying out the Management Walkthrough (MWT) virtual with the Head of the Special Task Force for Upstream Oil and Gas Activities (SKK Migas) on the ELSA Regent Ship which is currently in eastern Indonesian waters on Tuesday (26/5).

This 2D seismic survey is one part of the Jambi Merang PHE KKKS Definite Work Commitment which was carried out until 2024 with an investment of US $ 239.3 million. This 2D seismic survey area consists of 47 basins stretching from Bangka waters in western Indonesia to Papua waters in eastern Indonesia.

The length of the track is around 30,000 Km which is the largest seismic survey activity in the Asia Pacific and Australia in the last 10 years. SKK Migas Head Dwi Soetjipto said this 2D seismic survey was carried out 100% by Indonesia's best sons and daughters using the latest technology with parameters designed to accommodate the deepest exploration targets in the history of seismic surveys in Indonesia.

"The quality of results and accuracy in completing work will be important for this survey, which is expected to be able to create new work areas that can improve the upstream oil and gas exploration or investment climate in Indonesia going forward," he said.

Dwi is optimistic that the results of this survey will provide a giant discovery for Indonesia, which will make the Indonesian oil and gas industry enter the second golden era that can produce 1 million barrels of oil per day in 2030.

"SKK Migas gives the highest appreciation to Pertamina and Elnusa as the implementers of seismic work who continue to be committed to carrying out the work even though in the condition of the Covid-19 pandemic, we will be there and always support the efforts of all parties involved," he said.

Investor Daily, Page-9, Saturday, May 30, 2020

Pertamina Refinery Project Continues

Pertamina built a national strategic project at the time of the Covid-19 pandemic, the Investment Coordinating Board (BKPM) said the development of land acquisition for the oil refinery and petrochemical complex in Tuban, East Java, had reached 92 percent of the total 841 hectares.

The progress of neglected investment settlement is good news during the Covid-19 pandemic in Indonesia. The investment project in Tuban is included in the list of Rp. 708 trillion in neglected investment recorded by BKPM. Since the collaboration between PT Pertamina (Persero) and Rosneft was formed in 2017, development projects have been delayed for a long time, one of which is due to land acquisition constraints.

The value of the abandoned project is very large, amounting to Rp 211.9 trillion. The Tuban oil refinery project is owned by PT Pertamina Rosneft Processing and Petrochemical, which is a joint venture between Pertamina at 55 percent and Rosneft PJSC (Russia) at 45 percent.

This project is part of the New Grass Root Refinery (NGRR) that Pertamina built to meet domestic energy needs and produce high-quality petrochemicals.

The construction of oil refineries has been included in priority infrastructure projects since President Jokowi's first cabinet in the form of new refineries (NGRR) and the development of existing refineries (refinery development master projects / RDMP). However, various obstacles confront, such as land acquisition, licensing, until the completion of the contract.

Joko Widodo

President of the Republic of Indonesia Joko Widodo in a limited meeting on April 18, 2019, even gave strict directions to facilitate investors in the petrochemical sector to be given tax holiday investment incentives.

This indicates the government's seriousness in realizing the dream of building its own oil refinery. BKPM Sectoral Promotion Director Imam Soejoedi said that BKPM responded to this matter very seriously. BKPM has taken steps to resolve the issue of land acquisition in Tuban District intensively since last year and the licenses that have hampered the project have been neglected.

There are still a few small homework related to several permits namely environmental permits and are currently in the process of accelerating cooperation with the Ministry of Environment and Forestry (KLHK).

"Completion of this project is the government's priority to build downstream industries in the country so that Indonesia can reduce the deficit in the import balance, dependence on oil imports, and can build national industry resilience," Imam said.

The Head of BKPM forms a special team within BKPM to accelerate problem-solving in Tuban. In early February 2020, the head of BKPM visited the project site to complete negotiations with the surrounding community. This was done because this project would have a direct positive impact, including requiring up to 20 thousand workers at the time of construction and 2,500 workers in the operational phase.

Pertamina's Director of Processing and Petrochemicals (MP2) Ignatius Tallulembang stated that the Tuban GRR is one of the priority projects to be completed immediately. Pertamina and Rosneft have even signed a Tuban Refinery design contract with selected contractors last October 2019.

At present, Basic Engineering Design (BED) and Front End Engineering Design (FEED) are ongoing. The construction of the Refinery Development Masterplan Program or Balikpapan RDMP also continues.

Fajriyah Usman

At present, the progress has reached 16.32 percent, up from the first quarter of 2020 recorded 15.02 percent. Pertamina Corporate Communication Vice President Fajriyah Usman stated that the progress of the Balikpapan RDMP is currently on track, even though in the implementation process it must implement strict health protocols.

"The RDMP and GRR megaprojects are national strategic projects that have been set to continue to be built during the Covid-19 pandemic and fluctuations in crude oil prices and the rupiah exchange rate against the dollar. This project is important to ensure that national energy security and independence can be realized immediately, "said Fajriyah.

Fajriyah added, the progress of Balikpapan RDMP as of May 17, 2020, included four jobs, namely engineering (6.05 percent), procurement (5.85 percent), construction (4.38 percent), and commissioning (0.03 percent) so overall reached 16.32 percent.

Republika, Page-5, Friday, May 29, 2020