Pertamina Optimizes Transition Period for Rokan Block

 

PT Pertamina Hulu Rokan (PHR) continues to prepare to take over the operations of the Rokan Block working area (WK) which will start on August 9, 2021. During this transitional period, PHR made maximum efforts so that the operations of the Rokan WK would continue to run well, one of which was related to the procurement of goods and services.

Director of PHR RP Yudantoro said that until now PHR is mapping the existing contracts at PT Chevron Pacific Indonesia (CPI) and the post-transition PHR work plan.

The Rokan Block By Chevron

PHR is also in the middle of determining the needs for goods and services of all user function entities. To speed up the procurement process later, PHR has also started meeting with potential partners and socializing the procurement process and procedures at PHR. 

    This socialization was carried out online on September 3 yesterday to around 150 prospective partners who are CPI partners who have handled a number of goods and services needs at the Working Area of the Rokan Block.

"We realize that PHR cannot work alone to optimize and develop the Working Area of the Rokan Block. This requires the involvement of partners in the procurement of goods and services that we need for the operational needs and interests of the Working Area of the Rokan Block, "said Yudantoro.

With regard to data on work partners and contracts, Yudantoro said, assisted by SKK Migas, PHR continued to communicate intensively with CPI to accelerate the transition of documents or data from work partner contracts owned by CPI during the 2017-2021 period, including those whose contracts had expired but still needed for the operation of Working Area of the Rokan Block. 

    This contract document is necessary considering that the plan for the procurement of goods and services for routine operations will be based on the mapping of existing contracts in the current Working Area of the Rokan Block. Meanwhile, non-routine operations are carried out based on work plans and production targets determined by PHR.

"PHR will immediately prepare a contract for Working Area or the Rokan Block based on information from the existing operator, thus enabling PHR to prepare an adequate scope of work and technical specifications," he said.

The procurement of goods and services at PHR, added Yudantoro, will be carried out according to company needs by making efficiency in all fields. Coordination with work partners who will become PHR business partners can be done through the Business to the Business mechanism.

"PHR will synergize with Pertamina Group and BUMN in limited areas, for example, the procurement of helicopters with Pelita Air, the procurement of some onshore rigs with PDSI. So, we will also involve other local and national companies in operating activities at Working Area of the Rokan Block, "he said.

Investor Daily, Page-9, Saturday, Sept 12, 2020

Tangguh Project Increases Number of Workers

 

BP Berau Ltd as the operator of the Tangguh Field in West Papua will begin to increase the rate of construction of Tangguh Train 3 by increasing the number of workers in the field (the person onboard / PoB) from 6,300 PoB to 7,700 PoB. 

Tangguh Field West Papua

    This step is taken after the operator can keep Tangguh Field Covid-19 free and have emergency response readiness to maintain the progress of the project.

Blogger Agus Purnomo in SKK Migas

“SKK Migas received a report from BP Berau Ltd regarding the development of the Tangguh train-3 expansion project schedule. The success of the operator in keeping the project Covid-19 free is encouraging news. 

    This shows that the upstream oil and gas project can still be realized by implementing the Covid-19 health protocol and applying K3 standards at a high level, "said SKK Migas Head of Program and Communication Division Susana Kurniasih, Head of the Task Force.

Susana Kurniasih

The increase in the number of workers in the field was carried out after going through a series of evaluations. Due to this success, BP Berau Ltd as the operator plans to gradually increase the number of Tangguh train 3 project workers.

"We hope that this step is one of the efforts to accelerate the completion of the project, which was slowed down due to the Covid-19 pandemic," said Susana.

Previously, when the Covid-19 pandemic began to enter a number of regions in Indonesia at the end of February 2020, the upstream oil and gas industry significantly reduced activities in the field, as an effort to prevent the spread of the Covid-19 pandemic. 

    At that time the Tangguh project in West Papua had to reduce workers in the field, from 13,000 Person on Board (BOP) to around 6,300 BOP. The reduction of up to 50% of these workers is a medical recommendation so that a “keep your distance” scenario can be carried out in the field.

Susana added that starting to increase the number of project workers at Tangguh train 3 will be good news for the goods/service provider industry and the local community.

"The increase in the number of project workers will have a positive impact on the economy, create jobs and of course as a form of support for the upstream oil and gas industry to be able to maintain people's purchasing power during the Covid-19 outbreak," She said.

Tangguh train-3 is a national strategic project which when it is onstream will provide a significant additional national oil and gas production. This project will produce 3,000 BOPD of oil and 700 MMSCFD of gas. The investment value for the Tangguh train-3 project is estimated at the US $ 8.9 billion. 

    Meanwhile, until June 2020 the realization of the Tangguh train-3 project development for onshore was 83.27% of the target of 84.35% (rebaseline plan) and offshore development was 98.15% of the target of 99.39% (plan).

SKK Migas and KKKS continue to coordinate and seek innovations during the Covid-19 pandemic so that oil and gas production and lifting can remain optimal. The step in maintaining the Tangguh train-3 project and other upstream oil and gas projects is one way for SKK Migas to realize the production of 1 million barrels of oil and 12,000 MMSCFD of gas by 2030.

Investor Daily, Page-9, Saturday, Sept 12, 2020

World Oil and Gas Companies Interested in Checking Indonesia's Oil and Gas Potential

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that EOG Resources, one of the unconventional oil and gas companies from the United States, officially applied for membership in Indonesia's oil and gas data. By becoming a member, the company with its head office in Houston can see data on the national oil and gas potential.

Blogger Agus Purnomo in SKK Migas

"The success in attracting new investors to Indonesia shows that Indonesia's oil and gas potential is still considered very attractive," said SKK Migas Planning Deputy Jaffee Arizon Suardin.

He explained that SKK Migas' efforts to attract world-class potential investors to Indonesia began in 2019. At that time, his party held a roadshow to several countries to promote data on Indonesia's oil and gas potential, one of which was the United States.

"The results of the SKK Migas roadshow have been responded positively by EOG Resources, a company listed in the 186th rank of the Fortune 500 this year with a total oil production of 456 thousand barrels per day (bpd), NGL 134 thousand bpd, and gas 1,366 MMscfd," he explained. Jaffee.

Referring to the EOG page, last year, this oil and gas company recorded oil production of 166.6 million barrels, natural gas liquids (NGL), or liquefied petroleum gas (LPG) and the like 48.9 million barrels, and natural gas 499 billion cubic feet.

According to Jaffee, in July 2019, representatives of the EOG Resources team visited SKK Migas for two weeks to discuss in more detail the steps to be taken to decide on investment in Indonesia.

Until December, his party together with the Directorate General of Oil and Gas and the Center for Data and Information (Pusdatin) of the Ministry of Energy and Mineral Resources (ESDM) had conducted a brief regional review of non-conventional oil and gas.

"We found good initial indications regarding the potential for non-conventional oil and gas in Indonesia," he said.

Jaffee added EOG Resources' participation in Indonesia's oil and gas data membership is the next step in deciding investment in Indonesia.

"Of course, we hope that this good start will develop into future investment decisions. "With so many investors entering the upstream oil and gas sector, the opportunity for giant discoveries and development in order to increase production will be even greater," he said.

Indonesia has a total of 128 basins, of which only 19 basins have been produced and 109 other basins have not been explored. SKK Migas previously mapped ten potential giant discovery areas. 

    These ten areas are South Sumatra, North Sumatra, Central Sumatra, Tarakan Offshore, North East Java-Makassar Strait, Kutai Offshore, Buton Offshore, Northern Papua, Birds Body Papua, and Warim Papua.

Oil and gas exploration activities in Indonesia in recent years have been very quiet. Referring to data from the Ministry of Energy and Mineral Resources, investment realization for oil and gas exploration has not increased significantly. In 2013, investment realization for oil and gas exploration was recorded at the US $ 3.05 billion.

After that, the realization of this investment continued to fall to the US $ 2.6 billion in 2014, the US $ 970 million in 2015, US $ 916 million in 2016, and reached a low of US $ 567.55 in 2017. In 2018, investment realization for exploration oil and gas began to increase to the US $ 786.18 million.

Investor Daily, Page-8, Wednesday, Sept 9, 2020

Environmental Audit Completed, Rokan Block's Fate in the Hands of the Ministry of Energy and Mineral Resources

The fate of the continued development of the Rokan Block is now in the hands of the Ministry of Energy and Mineral Resources (ESDM) after the Environmental audit was completed in August 2020.

the Rokan Block by Chevron

Deputy for Maritime Sovereignty and Energy Coordination at the Coordinating Ministry for Maritime Affairs and Investment Purbaya Yudhi Sadewa said the recommendations given by the Environmental audit team had reached the Coordinating Ministry for Maritime Affairs and Investment.

"It is still in line with the plan so far. There are almost no obstacles," he said

Purbaya said, currently the finalization stage is in the hands of the Ministry of Energy and Mineral Resources, especially to ensure the implementation of the head of agreement (HoA). However, it is a bit difficult to ensure that the HoA can be signed this week. Although he did not specify, he said Chevron's drilling plan for next November had not changed.

Blogger Agus Purnomo in SKK Migas

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) confirmed that the Rokan Block Environmental audit process was completed in August this year. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said PT Chevron Pacific Indonesia (CPI) is considered to carry out management in accordance with environmental management laws and regulations.

"The results of the audit have been reported to the Coordinating Minister for Marves and then SKK Migas and Chevron will sign ahead of the agreement for the management of the Rokan Block during the transition period," said Susana.

The HoA that will be signed includes a commitment to drilling activities in November 2020 and drilling in 2021. Not only that, but HoA will also include the post-mining recovery fund reserve, whose activities will be carried out by Pertamina Hulu Rokan (PHR). Susana ensured that this would not interfere with PHR's operating costs.

"The finalization process is being carried out, all parties hope it will be completed this September," said Susana.

Kontan, Page-13, Monday, Sept 7, 2020

Inpex considers a targeted review of the Abadi LNG project's EIA

Inpex Corporation, the operator of the Masela Block, is considering a review of the schedule for completing the Environmental Impact Analysis (EIA/Amdal) for the Abadi Liquefied Natural Gas (LNG) Project. Even though it continued to roll, the work on the Amdal for this gas project was hampered by the Covid-19 pandemic.

Acting Corporate Communication Manager of Inpex Masela Ltd Moch N Kurniawan said that the EIA study plan for the Abadi LNG Project is carried out in accordance with the work plan schedule that has been approved by the government in the development plan / POD of the Abadi Field, Masela Block. However because it happened the Covid-19 pandemic, his party is considering reviewing the EIA work plan schedule with government approval.

Masela Block

"We are currently discussing with relevant government agencies to take the best steps in mitigating the EIA schedule due to the Covid-19 pandemic," he said.

Kurniawan explained that his party had completed several important activities related to the preparation of the EIA document for the Abadi LNG Project, namely announcements and public consultations, as well as government approval for the Environmental Impact Analysis Terms of Reference (KA ANDAL) document. 

    Currently, the EIA process is in the environmental baseline data collection stage, including environmental baseline surveys in the dry season which has been completed 100% and the wet season which still reaches 60%.

"This is in the framework of the environmental impact analysis and modeling process," said Kurniawan.

To complete the environmental baseline survey for the rainy season, his party will carry out several activities including taking surface water samples, measuring river discharge, and observing marine mammals. To complete the remaining 40% of the wet season environmental baseline, further sampling and/or other methodologies will be carried out which will be consulted with the relevant government authorities.

Kurniawan continued that the next important step was completing the preparation of the Environmental Impact Analysis (ANDAL) document, Environmental Management Plan (RKL), and Environmental Monitoring Plan (RPL).

"After that, the final stage is the assessment and approval of the ANDAL, RKL and RPL documents by the Central Amdal Assessment Commission," he said.

Dwi Soetjipto

Previously, the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that the completion of the Amdal was a requirement so that the Abadi LNG Project could continue to the next stage, including land acquisition. He said that the Amdal survey had stopped due to the Covid-19 pandemic, but is now taking place again.

Meanwhile, regarding land acquisition, Maluku Governor Murad Ismail is committed to facilitating it. The Abadi LNG project is a major project whose development plan was directly witnessed by President Joko Widodo so that the local government will fully support the completion of this project. Moreover, this project is related to the interests of the Maluku people.

Based on SKK Migas data, in addition to Amdal, Inpex is still processing auctions for the work on the front end engineering design / FEED of the LNG plant land facilities, floating production, storage, and offloading / FPSO facilities, gas pipelines, as well as subsea umbilical, riser, and flowline (SURF) facilities

Investor Daily, Page-10, Monday, August 24, 2020

The fate of the tuna block is unclear

The news about the departure of oil and gas contractors continues to emerge. It is a partner of Premier Oil Tuna BV in the Tuna Block, namely Vietnam Oil and Gas Group (Petrovietnam), which is reportedly out. In exchange, a Russian company is exploring the block.

Petrovietnam

Acting Head of Program and Communication Division of SKK Migas, Susana Kurniasih, revealed that his party is still waiting for the assurance of Premier Oil, especially regarding the planned drilling agenda for this year.

Premier Oil

"Premier Oil already has a proposal for drilling two wells in 2020, but Premier said he would look for a partner before drilling," said Susana Kurniasih.

the Tuna Block by Premier Oil

The continuation of the Tuna Block depends on the seriousness of Premier Oil to complete its commitments. Susana explained that the exploration period for cooperation contract contractors (KKKS) is given for six years. An extension of the exploration period can be granted for a maximum of three years. The Tuna Working Area (WK) has received an extension period twice since it was first signed on March 21, 2007.

"The government has given two extension periods of exploration time and now this is the last year of the second extension," Susana explained.

Deputy Head of SKK Migas, Fatar Yani Abdurrahman, stated that it was true that there was news about the plans of foreign companies to become Premier Oil partners in the Tuna Block.

"So far there is no official information from Premier Oil, we are still waiting. It's just that the partner's plan has just arrived," said Susana Kurniasih.

It is an oil and Rosneft gas company from Russia that plans to join Premier Oil after news of the departure of one of the partners in the block. However, Fatar has not specified the participation rights that will be acquired by the new Russian partner.

The operator of the Tuna Block is Premier Oil Tuna BV with a participating interest of 65%. Fatar said that the Covid-19 pandemic had an impact on the drilling plan by Premier Oil, even though drilling was needed to ensure the Tuna Block Plan of Development (PoD). Not only that, but this is also considered to have an impact on the certainty of partners in the block.

As a flashback, in 2014 Premier Oil discovered potential reserves of 100 million barrels of oil equivalent (mmboe). Even Premier Oil said that currently, the potential for the Tuna Block could reach 100 million cubic feet to 150 million standard cubic feet per day (mmscfd). In 2017, Premier Oil and Petrovietnam signed a memorandum of understanding (MoU) for the sale of gas from the Tuna Block in the North Natuna Sea to Vietnam.

The signing of the MoU was carried out on the sidelines of the 2017 Asia Pacific Economic Cooperation Summit (APEC Summit) in Da Nang, Vietnam. The government has also provided guarantees for investment certainty in Natuna waters, especially the location of the Tuna Block which is directly adjacent to Vietnam.

Kontan, Page-12, Friday, August 14, 2020

Change of ownership of IDD projects must be completed this year

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the change in ownership of Participating Shares (participating interest / PI) for the Indonesia Deepwater Development (IDD) project must be completed this year. Otherwise, the deep-sea gas project will not start immediately.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said that Chevron Indonesia as the operator of the IDD Project is still looking for an oil and gas company to work on the project. If indeed there will be a change in PI ownership, his party emphasizes that it can be completed this year. Because if it takes too long the IDD project may not be developed immediately.

“Actually, the real timeline [change of PI owner] depends on the deal. But I want to be this year. If it doesn't start immediately, the project won't take place, ”he said.

the IDD project  by Chevron

According to him, the urgency of completing the change in shareholders in the IDD Project is different from the Abadi LNG Project, the Masela Block. 

the Masela Block.

    This is because until now, the revised Plan of Development / PoD for the IDD project has not yet been completed. So that if the change of PI owner is not completed immediately, the project cannot operate.

ENI

Regarding the opportunity for ENI to replace Chevron, Dwi explained that the Italian oil and gas company currently also holds shares in the IDD Project. Not only that, but ENI also manages two oil and gas projects which are located adjacent to the Chevron project. Even ENI already has production facilities because the project has been operating since 2017.

Chevron

"Apart from the agreement between the two parties, ENI has a good positioning to be able to develop the IDD project. ENI has facilities and can be integrated, and if possible, the investment can be reduced so that the economy is better, "he explained.

However, the government is not in a position to suggest who will replace Chevron in the IDD Project. The government will look at who will enter and consider the experiences of oil and gas companies wishing to enter the gas project in the Makassar Strait.

"So our consideration is for this project to start, be able to produce, and become the supporting capacity to achieve the target of 1 million barrels per day (bpd)," said Dwi.

On the other hand, he said the government supports the extension of the Production Sharing Contract / PSC block of oil and gas that is included in the IDD Project, namely the Meeting oil and gas block and the Ganal oil and gas block. 

    This is because the Rapak oil and gas block contract will expire in 2027 and the Ganal oil and gas block will be completed in 2028. Without the extension, he admits that oil and gas companies will find it difficult to develop the IDD project.

"Although later asking for approval from the government regarding the extension of the PSC. But the government will support the extension if the contractor is serious about carrying out the project, "he said.

In the IDD Project, Chevron is the operator and majority shareholder of 63%. Chevron is working on this deep-sea oil and gas project with other joint venture partners, namely Eni, Tip Top, PT Pertamina Hulu Energi (PHE), and partners in Muara Bakau.

Referring to SKK Migas data, until last June, the IDD Project was still in the process of evaluating the approval of the POD revision. In addition, this project is still in the process of evaluating the proposed extension of the Rapak and Ganal Block PSCs.

The IDD project combines two oil and gas fields, namely Gendalo Field, Ganal Block, and Gehem, Rapak Block. Still based on SKK Migas data, this project is targeted to reach a peak gas production of 844 million standard cubic feet per day / MMscfd and 27 thousand BPD of oil. The US $ 6.98 billion projects is planned to start operating in the fourth quarter of 2025.

Investor Daily, Page-10, Tuesday, August 11, 2020

Pertamina EP Receives Additional Production

PT Pertamina EP as a subsidiary of PT Pertamina (Persero) as well as a Cooperation Contract Contractor under the supervision of SKK Migas, has succeeded in obtaining additional oil and gas production. 

Pertamina EP Asset 2

    The production was obtained from two of its business units, namely in the work area of ​​Pertamina EP Asset 2 and Pertamina EP Asset 3. Through Pertamina EP Asset 2 Prabumulih Field in Sumatra has succeeded in drilling the LBK-INF-2 or LBK-15 well in the Lembak Structure, which is drilled on 24 June 2020 and conducted a Well Intervention on the PMB-33 well.

Pertamina EP Asset 3

The drilling of the LBK-15 well reached a depth at the end of 1630 mMD with a production test result of 1186 barrels of oil per day (BOPD, having successfully exceeded the target of 400% from the initial plan of 250 BOPD.

This well has been successfully produced in the Talang Akar Formation (TAF) -E layer, which is a virgin layer, in addition to exceeding the target production, it will also increase Asset 2 oil and gas reserves and open new opportunities for TAF layer development wells in the soft structure. 

    Astri Pujianto, General Manager of Asset 2, said that the success of the LBK-15 drilling was the result of good cooperation between functions implementing operational excellence.

"Thank God, even though the pandemic is not over yet, the spirit of transformation and cooperation among Asset 2 workers is maintained. By implementing operation excellence, drilling will be completed with zero fatality, ”said Astri.

In addition to the success of the LBK-15 drilling, the Well Intervention program applied to the PMB-33 well located in Sukaraja Village, Prambumulih City also succeeded in providing additional reserves of 314.79 BOPD from the initial target of 50 BOPD.

Meanwhile, Ndirga Andri Sisworo, Prabumulih Field Manager, explained that with the addition of the two wells, Prabumulih Field's current production is around 8,200 BOPD or 102% of the target. The success of drilling the LBK-15 well provided an additional 1186 bopd and the PMB-33 well intervention added 314.79 BOPD. Prabumulih Field's current production is in the range of 9514 BOPD.

Furthermore, in the work areas of Pertamina EP Asset 3 Jatibarang Field and Subang Field, West Java, they succeeded in trying to increase production through the Well Intervention program at ABG-02 and BBS-04 wells. Sumur ABG-02 which is the working area of ​​Pertamina EP Aset 3 Jatibarang Field in Jatimunggul Village, Trisi District, Indramayu Regency, provides an additional oil production of 346 BOPD.

In addition, Jatibarang Field also drilled CMT-20 wells in Muntur Village, Losarang District, Indramayu Regency in early 2020 which succeeded in achieving 582 BOPD production.

Hari Widodo, FM Jatibarang Field, said that at a time of high production declination, Jatibarang Field tried hard to maintain and increase production, one of which was through a Well Intervention and drilling program. This was evident from the Well intervention carried out in the ABG-02 well which succeeded in achieving the oil production of 346 BOPD.

"Meanwhile, for drilling in CMT-20, the production reached 582 BOPD for oil and 2 MMSCFD for gas. With the above successes, in the future we will conduct more massive well intervention and drilling, "he said.

Meanwhile, the Well intervention program carried out at BBS-04 well, which is the Pertamina EP Asset 3 Subang Field working area in Tegalsawah Village, Karawang Timur District, Karawang Regency, West Java, also succeeded in adding production of 700 BOPD and gas of 1 MMSCFD.

Investor Daily, Page-10, Tuesday, August 11, 2020

ENI has the potential to replace Chevron in working on the IDD project

 

The Ministry of Energy and Mineral Resources (ESDM) said Chevron Indonesia would withdraw from the Indonesia Deepwater Development (IDD) Project. The oil and gas company from the United States is offering management rights to ENI.

the Indonesia Deepwater Development (IDD) By Chevron

The Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Ego Syahrial, said that Chevron is interested in working on the IDD project because it is still managing the Rokan Block. Once the management rights were transferred after the production sharing contract / PSC for the Rokan Block ended, Chevron also intended to withdraw from the IDD project.

"Chevron is an IDD package with Rokan. If Chevron leaves the Rokan block, that means Chevron is also out of the IDD project, ”he said.

Chevron is currently still looking for a replacement who will work on the IDD project. One of the candidates being offered by Chevron is an Italian oil and gas company, ENI.

"Now offered by ENI, I think so. The point is they are offering themselves to each other, which I know Chevron is offering. We'll just wait, "explained Ego.

Regarding Eni, the oil and gas company recently signed a contract with the government for the West Ganal Block. This block was previously part of the Makassar Strait Block, which contains the West Seno Field which has been developed by Chevron. Eni also manages the Muara Bakau and East Sepinggan Blocks which are located near the IDD Project.

the Muara Bakau and East Sepinggan Blocks

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that his party is still waiting for a report from Chevron regarding the follow-up of the IDD Project. His party has even been chasing the oil and gas company from the United States to immediately make a decision whether to continue this project or not.

Dwi Soetjipto

"The letter from SKK Migas has not been replied to. We are still discussing it. We'll just wait, "he said.

In the IDD Project, Chevron is the operator and majority shareholder of 63%. Chevron is working on this deep-sea oil and gas project with other joint venture partners, namely Eni, Tip Top, PT Pertamina Hulu Energi (PHE), and partners in Muara Bakau. 

SKK MIGAS

      Referring to SKK Migas data, until last June, the IDD Project was still in the process of evaluating the approval of the plan of development / POD revision. In addition, this project is still in the process of evaluating the proposed extension of the Rapak and Ganal Block PSCs.

The IDD project combines two oil and gas fields, namely Gendalo Field, Ganal Block, and Gehem, Rapak Block. Still based on SKK Migas data, this project is targeted to reach a peak gas production of 844 million cubic feet per day (million standard cubic feet per day / MMscfd) and 27 thousand barrels of oil per day (bpd).

     The US $ 6.98 billion projects are planned to start operating in the fourth quarter of 2025. If Chevron releases the IDD project, there will be no more oil and gas projects in Indonesia that the oil and gas company will undertake. 

        The reason is, the management of the Rokan Block has been decided to be transferred to PT Pertamina (Persero) starting in 2021. However, Ego said, this does not mean Chevron will leave Indonesia.

"We don't know, later in the middle, there could be a project," he said.

PT Chevron Pacific Indonesia (CPI)

PT Chevron Pacific Indonesia (CPI) Corporate Communication Manager Sonitha Poernomo said, although the Kutei Basin is an attractive hydrocarbon area, the IDD Project cannot compete for capital in Chevron's global portfolio.

Sonitha Poernomo

Chevron Rapak Ltd (CRL) opened a data room to facilitate discussions on identifying potential partners for the project earlier this year. According to company policy, it was unable to provide detailed information on commercial negotiations. However, his party will continue to work with SKK Migas and potential partners to help realize the potential development of the IDD Project.

"We believe this project will have value for other operators and the Kutei Basin can continue to be developed safely," said Sonitha Poernomo.

 Investor Daily, Page-10, Friday, August 7, 2020

Uncertainty of Sakakemang Gas Price

Repsol's continued development of the Sakakemang Block is constrained by the gas price which has not been agreed upon. The government and the oil and gas company from Spain still have not agreed on the price that Repsol from Iapangan will sell, which has gas reserves of up to 1 trillion cubic feet or trillion cubic feet (TCF).

Repsol

Deputy for Finance and Monetization of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Arief Setiawan Handoko, admitted that currently discussing gas prices from the Sakakemang Block is somewhat difficult. To date, Repsol has set gas prices above the US $ 7 per MMBtu. The price is claimed to be in accordance with the economics of the project.

the Sakakemang Block Sumatera Selatan

"Currently there are still difficult discussions about the sustainability of Repsol. Currently, we from the Commercial Division are involved in determining whether to continue or not because the economic price of Repsol is different from the price we are trying to sell in Indonesia, "said Arief.

He continued, referring to the latest regulation regarding gas prices, namely Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing for the industrial sector at a maximum of US $ 6 per MMBtu. With this regulation, SKK Migas also cannot simply emphasize the investment rate return (IRR) of Cooperation Contract Contractors (KKKS). The reason is, this will have an impact on state revenues from oil and gas.

SKK Migas.

"So we have to balance the economy and state revenues not to change," said Arief.

Blogger Agus Purnomo in SKK Migas

Sakakemang Block is one of the largest oil and gas discoveries in the world during the 2018-2019 period. With proven natural gas reserves of up to 2 trillion cubic feet, this Repsol finding is the largest in Indonesia for the last 18 years.

Dwi Soetjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said, in the initial certification, the amount of reserves included was only 1 TCF of the potential proven reserves of around 2 TCF.

Repsol also has the opportunity to submit a plan of development (PoD) this year with the hope of carrying out the production of the Sakakemang Block in 2021. Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Ego Syahrial said there are still many fields that have not yet entered the POD stage. Therefore, continuous activities are needed in order to accelerate the development of the oil and gas field.

Kontan, Page-12, Friday, August 7, 2020