Secure Energy Supply, Pertamina Continues Strategic Projects

 

PT Pertamina (Persero) ensures that investment in strategic projects carried out in all business lines will continue even during the Covid-19 pandemic. This is to secure the resilience and independence of national energy in the future. 

Fajriyah Usman

    Pertamina Vice President for Corporate Communication, Fajriyah Usman, said that despite the pressure from low oil prices, exchange rates and a decline in energy demand, Pertamina remains committed to carrying out its strategic projects.

"Primarily, projects that will have an impact on national oil and gas production and energy in the next few years," said Fajriyah Usman.

the Jambaran-Tiung Biru Project

In Upstream, the company is working on the Jambaran-Tiung Biru Project through its affiliate, PT Pertamina EP Cepu (PEPC). In this project, Pertamina has completed drilling two wells at Wellpad Jambaran Central and perforating wells without using a rig using the Smart Coiled Tubing Unit in Jambaran East.

"This project will produce an average of 192 MMscfd (million standard cubic feet per day) gas with a target of gas on stream in 2021," said Fajriyah.

In addition, the company is also working on the KLD Project through PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ). After the KLD-1 well drilling has been completed, the project is currently entering the KLD-3 well drilling stage. This project is targeted to increase reserves and production by December 2020.

In other business sectors, Pertamina also continues with refinery development and construction projects through PT Kilang Pertamina Internasional (KPI). One of them is the Balikpapan upgrade and capacity building project and the Lawe-Lawe Terminal, which is one of the company's largest projects worth US $ 6.5 billion. This project will increase refinery capacity, improve product quality, and reduce the cost of production of fuel oil (BBM).

"The Balikpapan Refinery project has reached 22.26% as of October 22, 2020, running with strict health protocols, in addition to supporting the economic recovery program because it absorbs more than 5,000 workers," She explained.

In addition, the company continues to improve the reliability of its fuel storage and distribution facilities. Pertamina is running a number of storage tank infrastructure projects at the BBM Terminal, LPG Terminal, and the DPPU, as well as carrying out maintenance on 280 vessels. 

    This year, Pertamina has budgeted an investment fund of US $ 7.8 billion. Most of this investment fund was allocated for the upstream oil and gas sector amounting to the US $ 3.7 billion. In addition, the investment budget for refinery projects is the US $ 1.9 billion, downstream infrastructure is the US $ 1.2 billion, gas sub-holding investment is the US $ 800 million, and others US $ 300 million.

Fajriyah added, his party also ensures that the work of these projects is in accordance with the provisions for using the Domestic Component Level (TKDN). This is to strengthen the national industry, create jobs, and reduce dependence on imported products so that they can move the wheels of the national economy. Until the first semester of this year, Pertamina's TKDN average reached 54%.

"As a state-owned oil and gas company, Pertamina continues to carry out business and projects according to the direction of the Government, in this case, the Ministry of BUMN and the Ministry of Energy and Mineral Resources striving for the future of energy as well as driving the national economy by optimizing the use of domestic resources, "explained Fajriyah.

Investor Daily, Page-10, Monday, Nov 2, 2020

Support 70% of National Oil Production, Pertamina Must Be More Aggressive

 

With the transfer of management of the Rokan Block next year, PT Pertamina (Persero) will control 70% of the total national oil production. For this reason, Pertamina must be more aggressive in developing its oil and gas blocks in order to keep national oil production from falling significantly. Referring to Pertamina's data, as of last August, the realization of oil production from domestic assets was recorded at 314 thousand barrels per day (BPD). 

the Rokan Block

When compared to the realization of national oil production in the same period of 706.9 thousand BPD, Pertamina's oil production portion is around 44.41%. With reference to the current Rokan Block oil production at 176,398 BPD, the company's oil production will increase to the level of 490 thousand BPD or about 70% of the national oil production of 706 thousand BPD.

Trisakti University Energy Observer Pri Agung Rakhmanto said, with the increasing number of national oil and gas blocks controlled, the number of operational activities that Pertamina is working on must be more massive. This needs to be done so that national oil production does not continue to decline.

"We have to allocate a lot of investment for the upstream business, both for exploration, development, EOR (enhanced oil recovery)," said Pri Agung.

This is because Pertamina's restructuring or company reorganization does not guarantee the improvement in the company's upstream operation performance. However, this restructuring should be used by Pertamina as an instrument to achieve corporate targets and maintain national oil production.

"In the context of maintaining national production, it means that it must be used as an instrument to facilitate the execution of more massive and aggressive upstream programs and investments," explained Pri Agung.

Dwi Soetjipto

Dwi Soetjipto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), also expressed a similar sentiment. The establishment of an upstream sub-holding by Pertamina should be able to improve the company's performance, especially in increasing national oil and gas production.

Blogger Agus Purnomo in SKK Migas

"We hope Pertamina will conduct a very aggressive and massive exploration in the future because the potential is still large," he said.

Pertamina's contribution to national oil production can be seen from at least six of the company's oil and gas blocks which are still on the list of the 10 largest oil producers in Indonesia. Even some of them, such as assets under PT Pertamina EP and the Mahakam Block, are the cornerstone of national oil production. Not to mention the Rokan Block as the second-largest oil producer whose management will shift to Pertamina next year.

"So we can see how we really hope that Pertamina plays a better role in the future," said Dwi.

In maintaining national oil production, Pri Agung added, it is not unlawful for the government to provide incentives for Pertamina, such as improvements to production sharing (split), tax relief, investment credit, accelerated depreciation, and others. However, this incentive must be balanced with strict requirements, for example, the determination of targets for drilling exploration and development wells, implementing EOR, the amount of oil and gas production, and adding oil and gas reserves.

"Any incentives should be given to Pertamina, as long as they are comparable to performance achievements. So, incentives or rewards are conditional and based on the achievement of measurable performance targets, "he explained.

Investor Daily, Page-10, Monday, Nov 2, 2020

Strategic Project Investments are ongoing

 

PT Pertamina (Persero) ensures that strategic project investment in all of the company's business lines will continue during the pandemic. 

Fajriyah Usman

    VP of Corporate Communication of Pertamina, Fajriyah Usman, said that the company is committed to maintaining national energy production in the next few years.

"Even though we were hit by a triple shock during the pandemic and it caused obstacles in the field," said Fajriyah.

the Jambaran-Tiung Biru unitization field

She said several strategic projects in the upstream area, such as Jambaran-Tiung Biru managed by PT Pertamina EP Cepu (PEPC), are currently continuing and have successfully carried out rigless perforation with smart coiled tubing units.

This project will produce gas from the Jambaran-Tiung Biru unitization field with an average production of 192 MMscfd with a target gas on stream in 2021. In addition, activities off the north coast of West Java carried out by PHE ONWJ are continuing. After completing the KLD-1 well drilling, the KLD ONWJ development project is currently entering the KLD-3 well drilling stage.

This project is targeted to increase reserves and production by December 2020. In other business sectors, Pertamina continues the development of the PT Pertamina International Refinery. One of them is the Balikpapan and Lawe-lawe RDMP project, which is worth the US $ 6.5 billion. 

Nicke Widyawati

    Pertamina President Director Nicke Widyawati revealed the triple shock that Pertamina experienced during the pandemic.

First, a decrease in sales of 25% nationally. Second, the company's cash flow is affected by rupiah fluctuations. Nicke admitted that he had created a tough and very tough scenario to anticipate the effect of the exchange rate on the company's revenue. Third, the company's cash flow is affected by fluctuations in world oil prices. Currently, global crude oil prices are very volatile due to falling demand amid Covid-19.

Bisnis Indonesia, Page-5, Monday, Nov 2, 2020

SKK Migas targets the end of November

 

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets that drilling in the Rokan Block will begin next month. SKK Migas Operations Deputy Julius Wiratno said that currently, PT Chevron Pacific Indonesia (CPI) is still converting two units of rigs to be used for drilling.

Blogger Agus Purnomo in SKK Migas

In addition, CPI has procured several service jobs that support drilling activities. Julius said SKK Migas and CPI continued to make efforts so that the drilling activity could begin in November according to the agreement.

PT Chevron Pacific Indonesia (CPI)

"The target is the end of November," he said.

Sonita Purnomo

When confirmed, the CPI was still reluctant to explain the details of drilling preparations that will begin next month. CPI Corporate Communication Sonita Purnomo said that her agency continues to have intensive discussions with SKK Migas before starting the drilling.

"PT CPI continues to have intensive discussions with SKK Migas to finalize the detailed implementation of the heads of agreement to support the commencement of drilling activities," She said.

the Rokan block by Chevron

SKK Migas and CPI have agreed on ahead of agreement (HoA) on September 28, 2020, for investment in the transition period for the Rokan work area (WK). CPI will remain investing in 2020-2021. This investment is an effort to increase production in the Rokan block working area during the transition period before being transferred to the management of PT Pertamina (Persero) in August 2021.

Bisnis Indonesia, Page-5, Saturday, Oct 31, 2020

Drilling of the Rokan Block well has the potential to be delayed to December

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the drilling of wells in the Rokan Block will be carried out in late November or early December. Currently, rig procurement is underway.

Blogger Agus Purnomo In SKK Migas

    Deputy for Operations of SKK Migas Julius Wiratno said that the government and PT Chevron Pacific Indonesia (CPI) had signed the main agreement for the implementation of operations during the transition period of the Rokan Block. Currently, Chevron is preparing a rig that will be used to drill this well, along with its supporting service contracts.

the Rokan Block

"At the end of November or early December, drilling will be carried out in the Rokan Block," he said.

PT Chevron Pacific Indonesia (CPI)

    According to Julus Wiratno, the rigs that are currently available are rigs that are usually used to workover wells. As a result, Chevron needed time to convert the rig to be used for infill well drilling. However, as planned, 11 wells will be drilled in 2020.

"After that in 2021, about 6 rigs will be added to carry out drilling. After that, PT Pertamina (Persero) will continue in August 2021, "added Julius.

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto explained that the total investment for drilling wells in the Rokan Block in 2020-2021 is around the US $ 154 million. In detail, Chevron will drill 11 wells in 2020 and 107 wells in 2021. This year, the annual average additional oil production from this drilling is only 500 barrels per day (BPD).

"But in 2021, additional production will reach an average of 5 thousand bpd," he said.

    He emphasized that his party is focused on overseeing the implementation of the transfer of management of the Rokan Block from Chevron Indonesia to Pertamina as well as possible. One of them is the process of procuring goods and services, in which out of the 19 procurement packages needed, 10 packages have been contracted.

"SKK Migas will conduct supervision," said Dwi.

    Regarding Pertamina's potential partners in managing the Rokan Block after August 8, 2021, Dwi did not answer because it was Pertamina's authority. However, until now, he admitted that he had not received a report from Pertamina regarding his potential partner.

"We focus on securing the stage when Pertamina enters, with a better level from the production side," he said.

Arifin Tasrif 

    Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reminded Chevron and SKK Migas to realize the provisions agreed upon in the HoA. This is because the implementation of this provision will have an impact on efforts to achieve the national oil and gas production target next year according to the 2021 APBN macro agreement.

"We will continue to monitor its implementation periodically to ensure the commitment of all parties goes according to the agreement, especially the certainty of the implementation of drilling activities which will start in November 2020," said Arifin.

    This year, the Rokan Block is targeted to produce 170,000 bpd of oil. Until the end of last June, the realization of this block's oil production was recorded to have exceeded the target, reaching 176,298 bpd. However, this realization fell when compared to production in 2019 which reached 190,131 thousand bpd. The Rokan Block is the second-largest oil producer in Indonesia.

Investor Daily, Page-10, Friday, Oct 30, 2020

Pertamina is considering PLN's electricity offer for the Rokan Block

    PT Pertamina (Persero) is building communication with various parties for the operational preparation of the Rokan block working area, including the provision of electricity and steam which are indispensable in supporting the continuity of oil production activities. One of them is the State Electricity Company (PLN).

the State Electricity Company (PLN)

    Pertamina SVP Corporate Communication & Investor Relations Agus Suprijanto said that oil production currently reaches 170,000 barrels of oil per day (around 25% of national oil production). He revealed that PLN had submitted an initial offer to Pertamina regarding the provision of electricity and steam.

"Pertamina welcomes PLN's desire to provide electricity and steam supply for the Rokan block working area starting August 9, 2021. By cooperating with BUMN in the electricity sector, we hope that the preparation of post-management transfer of electricity and steam supply will remain safe. PLN together with PHR will conduct intensive discussions regarding this matter in the near future, "said Agus.

the Rokan Block Work Area By Chevron

    Currently, the Rokan Block Work Area receives electricity and steam supply from an integrated power system which includes 3 main power generation facilities, namely Minas Gas Turbine, Central Duri Gas, and North Duri Cogen (NDC). 

    Regarding PLN's offer to provide electricity and steam in the Rokan block Work Area, Agus said that currently Pertamina has submitted a response and is waiting for a further proposal from the power company and hopes that the discussion of the Electricity and Steam Sale and Purchase Agreement with PLN will go well and signed in November 2020.

"Synergy among energy SOEs do not only increase portfolios that mutually reinforce operational performance in each business sector, but also hopefully encourage the government's strategic development projects to run well according to the expected target," said Agus.

Investor Daily, Page-10, Friday, Oct 30, 2020

As of September, the National Oil Lifting Exceeds the Target

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that the realization of ready-to-sell oil production (lifting) until last September reached 706 thousand barrels per day (BPD) or exceeded the Revised State Budget target of 705 thousand BPD. 

Blogger Agus Purnomo in SKK Migas

    Until the end of the year, SKK Migas is optimistic that it will be able to keep oil lifting from falling below the target.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said that the realization of national oil and gas lifting until the end of last September was very good, namely, 1.68 million barrels of oil equivalent per day / BOEPD or 99.6% compared to the APBN target of 1.69 million BOEPD. This achievement was supported by oil lifting which exceeded the target even though gas lifting was still under pressure from the decline in gas demand due to the Covid-19 pandemic.

"Oil lifting reaches 706 thousand BPD or 100.17% of the APBN-P. Meanwhile, gas is 5.502 million standard cubic feet per day / MMScfd or 99.03% of the target of 5,506 MMScfd, "he said.

As a result of the Covid-19 pandemic, he admitted, the implementation of oil and gas operations was not as expected. As of September, the realization of new development wells was 188 wells or only 48 percent compared to the target of 395 wells. By the end of the year, the number of development wells drilled is estimated to be only 252 wells, lower than the realization in 2019 of 322 wells.

Meanwhile, the realization of the workover activities was very good. As of September, the realization of workover activities was recorded at 444 wells or 53% of the target of 837 wells and is projected to reach 603 wells by the end of the year. Likewise with well maintained, which realized 18,746 activities or 67% of the target of 28,151 activities and is projected to reach 25,184 activities by the end of the year.

"Workover and well service are still very good because they involve current oil and gas production," Dwi explained.

He added that the main impact of the pandemic on exploration activities. As of September, his party noted that the realization of 3D seismic activities only reached 918 square kilometers (km2) or 27% of the target of 3,421 km2 and the realization of exploration wells was only 19 wells or 51% of the target of 37 wells. Only 2D seismic activities were very good, namely, 26,929 km realized from the target of 28,324 km.

Dwi admitted efforts to optimize oil and condensate production was not easy. From the start of the proposed cooperation contract (KKKS) for this year's oil production of 673 thousand BPD, his party managed to secure a commitment at the level of 707.2 thousand BPD.

However, due to the impact of the Covid-19 pandemic, there was a decline in the production of 32 thousand BPD so that oil production remained at 704 thousand BPD. His party then sought an additional 2.9 thousand BPD. Furthermore, for gas, his party managed to obtain additional production from the absorption optimization of 70 MMScfd. 

    Additional absorption comes from the East Kalimantan System of 21 MMScfd, West Natuna Transportation System (WNTS) 17 MMscfd, Grissik-Singapore 29 MMscfd, and Medco Malaka 3 MMscfd. So that, until the end of the year, his party is still projecting oil and gas lifting on target.

"The outlook until the end of the year with various problems remains 705 thousand BPD for oil and 5,502 MMScfd for gas," Dwi said.

Maintain Investment

Dwi continued, globally, the Covid-19 pandemic and the fall in crude oil prices had an impact on reducing investment by oil and gas companies. Until the end of September, his side recorded that the realization of upstream oil and gas investment was US $ 6.9 billion, or only 50 percent of the US $ 13.8 billion targets. However, at the end of the year, he is optimistic that upstream oil and gas investment could reach the US $ 11.1 billion or 80.44% of the target.

Investor Daily, Page-10, Monday, Oct 26, 2020

Banyu Urip Crude Oil Will Be Exported

The Special Task Force for Upstream Oil and Gas Implementation (SKK Migas) plans to export crude oil produced by the Banyu Urip oil and gas field. 

ExxonMobil Cepu Limited's (EMCL) in Banyuurip Field

    This plan emerged because PT Pertamina (Persero) as the buyer of ExxonMobil Cepu Limited's (EMCL) field crude oil was no longer able to fully purchase it. Pertamina has excess crude oil stocks due to reduced refinery demand as a result of the Covid-19 pandemic.

Blogger Agus Purnomoin SKK Migas

Deputy of Finance and Monetization of SKK Migas, Arief S. Handoko, said that currently, the Banyu Urip Field has the potential to experience a reduction in production as a result of Pertamina not being purchased. Referring to SKK Migas records, until August 2020, Banyu Urip Field oil production reached 220,000 barrels of oil per day (BPD).

Banyu Urip Field

"Why can't it be done? Because Pertamina has a lot of stock and demand for refineries has decreased due to Covid-1 9, "said Arief.

The plan for exports and reducing production is of course contrary to the fact that domestic oil imports are high. Arief also admitted that so far Pertamina has been importing crude oil and importing fuel oil (BBM) products. As a result of falling demand, the domestic market oil purchases from Banyu Urip have stalled.

"If the export option is carried out, we have met the KPK for permission or asked for opinions if we export prices below the ICP. We involve several parties in order to maintain compliance or issues that may come later, "said Arief.

VP of Corporate Communication of PT Pertamina, Fajriyah Usman, said that his party was still buying the state's share from the Banyu Urip field, although it was decreasing due to lower demand.

"The decline in purchases of crude for processing at refineries is around 20 percent in line with the drop in demand for fuel oil (BBM)," he said.

Encouraging Upstream Incentives

    SKK Migas strives to provide incentives for the upstream oil and gas sector to be implemented. Head of SKK Migas Dwi Soetjipto said the provision of incentives was an effort to restrain the decline in upstream oil and gas investment as a result of the corona outbreak (Covid-19).

Dwi Soetjipto

"We are taking steps to avoid a bigger decline. There are nine stimuli that have been and are being processed," Dwi said.

    Of the nine types of incentives proposed, only one has been approved, namely post-abandonment and site restoration (ASR) activities. There are 30 oil and gas contractors who have enjoyed relaxation from the delay in depositing ASR funds this year. Then there are a number of incentives included in the proposed fiscal improvement, namely the elimination of upstream oil and gas rental fees for state property (BMN).

Kontan, Page-12, Monday, Oct 26, 2020

First, the Restructuring of the Business Is Running Smoothly

PT Pertamina (Persero) ensures that the restructuring process of the company is carried out according to what is customary in the business world. Currently, the restructuring process is still in a transition period to ensure Pertamina and the entire group business are ready for the next process. 

Blogger Agus Purnomo in SKK Migas

    SVP Corporate Communication & Investor Relations of Pertamina Agus Suprijanto said Pertamina restructuring is a mandate for shareholders that must be realized. In the process, management always considers strategic aspects, procedures, and handling of all company assets, including employees, in accordance with applicable legal regulations.

"The company restructuring carried out by Pertamina currently has common practices in efforts to improve company performance and efficiency, as has happened in various other global energy companies. When restructuring, the company also goes through a transition period, "said Agus.

Agus said the legal position or legal standing regarding the formation of a holding and group business is clear. Regarding assets, Agus confirmed that until now there has been no transfer of Pertamina's assets to other group businesses or subsidiaries. 

    The status of the management of the work area of ​​the upstream subsidiary that has contracted with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) remains the same. Agus said regionalization was carried out to coordinate and ensure that upstream oil and gas operations were integrated so that operations would be more efficient.

Agus denied accusations that Pertamina's restructuring had hampered operations and strategic projects. According to him, so far all business processes and operations from upstream to downstream have been running well.

"This shows that Pertamina's business processes are fine, not messy. In terms of work procedures, management has also issued regulations governing workflow and authority during the transition period, ”said Agus.

Regarding refinery revitalization and construction, Agus said, until now the refinery development master plan and grass-root refinery (RDMP / GRR) projects are still ongoing according to predetermined stages. In general, all projects showed clear progress and went well with management monitoring.

"The restructuring process is carried out in stages. In the current transitional period, we ensure that all restructuring preparations are complete, ”said Agus.

The Ministry of State-Owned Enterprises (BUMN) stated that Pertamina's restructuring was carried out to answer the needs of the oil and gas industry. Special Staff to the Minister of BUMN, Arya Sinulingga, said that the energy sector continues to undergo transformation or change, which demands that Pertamina be able to adjust. There are five sub holdings that have been formed, including the upstream sub-holding whose operations are held by PT Pertamina Hulu Energi (PHE).

Then, there is PT Perusahaan Gas Negara (Persero) Tbk as a gas sub-holding and refinery and petrochemical sub-holding run by PT Kilang Pertamina Internasional. Power and NRE sub-holding (PT Pertamina Power Indonesia) and commercial and trading sub-holding (PT Patra Niaga). The shipping company operation is held by PT Pertamina International Shipping.

Republika, Page-9, Monday, Oct 26, 2020

Nominations for Seven CSR Programs PEP Asset 4 CSR Award 2020

 

PT Pertamina EP (PEP) Asset 4 has again successfully submitted 7 Corporate Social Responsibility (CSR) programs in the prestigious Nusantara CSR Award 2020 event initiated by La Tofi School of Corporate Social Responsibility (CSR).

Ramayana Terrace Hotel Indonesia Kempinski Jakarta

    This event was held differently from the previous year due to the impact of the CoVid-19 Outbreak, so this award was held online and offline which coincided at Ramayana Terrace Hotel Indonesia Kempinski Jakarta.

La Tofi School of Corporate Social Responsibility (CSR)

La Tofi explained that this award event is an appreciation of the work programs that have been carried out by companies both government, state-owned or private institutions that have a commitment and contribution to environmental sustainability and community empowerment.

This award will motivate the public relations function at Pertamina EP (PEP) Asset 4 to be able to always deliver quality CSR programs and have a direct impact on the people in need.

Duta Masyarakat, Page-6, Monday, Oct 26, 2020

Additional Pertamina Split Awaits the Approval of the Minister of EMR

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that PT Pertamina (Persero) 's split changes in several of its oil and gas blocks are still waiting for the approval of the Minister of Energy and Mineral Resources (ESDM).

Blogger Agus Purnomo in SKK Migas

However, this additional split has the potential to increase oil reserves by 120 million barrels and gas by 1.7 trillion cubic feet. Deputy of Planning for SKK Migas, Jaffee Suardin said that discussions regarding the proposed additional split of Pertamina in several of its oil and gas blocks have now reached the final stage. Furthermore, to realize the additional split, his party needs approval from the Ministry of Energy and Mineral Resources.

"It needs approval from ESDM because there will indeed need to be something approved by the Minister of EMR," he said.

Jaffee revealed that the proposed additional split was through long discussions with his party. The reason is that this proposal was initiated by his party's efforts to seek oil and gas potential that could be developed but had not yet been included in Pertamina's long-term plan. Furthermore, his party issued a recommendation to the Ministry ESDM.

"We want to try it in the future, for 1-2 months, so that we can finish it," he said.

According to him, this additional split has the potential to generate oil and gas reserves for Indonesia without having to wait for exploration activities to be carried out. Not only that, but this step will also increase the economy of the oil and gas block for up to 10 years.

"What is being discussed now is to add approximately 120 million barrels of oil reserves and 1.7 trillion cubic feet of gas," said Jaffee.

He said the additional split proposal did not end only for Pertamina. His party will continue to look for oil and gas potentials in other working areas that can be developed in the future.

"The point is, the more aggressive and efficient," he added.

Previously, Director of Development and Production of PT Pertamina Hulu Energi (PHE) Taufik Aditiyawarman said that his party had proposed an additional split for the Mahakam Block and the Sanga-Sanga Block. In addition, his party is still reviewing the proposed changes to the results of the East Kalimantan Block, Offshore North West Java (ONWJ), and Offshore Southeast Sumatra (OSES). These five blocks are termination blocks managed by the company.

Deputy of Monetization and Finance of SKK Migas, Arief S Handoko, revealed the potential for increased gas production from oil and gas blocks in East Kalimantan or the East Kalimantan System. This is after the incentives being proposed by Pertamina for the Mahakam, Sanga-Sanga, and East Kalimantan blocks. The existence of incentives will encourage more massive operations and well drilling activities.

the Mahakam Block

"In 2021, the Mahakam Block could reach more than 500 million standard cubic feet per day / MMScfd, not yet from the others," he said.

Taufik had said that if the profit-sharing was improved, his party was committed to increasing the production of the oil and gas block.

"Of course, with a better economy, it will maximize the monetization of the potential in the oil and gas block, increase reserves and future production," he said.

Pertamina signed a production sharing contract / PSC) for the Sanga-Sanga Block, East Kalimantan, and the OSES Block with a gross split scheme in 2018. Likewise, the amendment to the Mahakam Block PSC uses a cost recovery investment scheme. The ONWJ Block contract was signed in 2017.

Referring to the contract, Pertamina's profit-sharing in the SangaSanga Block is set at 49% for oil and 54% for gas. Meanwhile, in the East Kalimantan-Attaka Block, the company gets 61 percent for oil and 66 percent for gas. Furthermore, Pertamina's profit-sharing in the OSES Block is set at 68.5% for oil and 73.5% for gas.

In the ONWJ Block, Pertamina previously obtained additional splits through ministerial discretion and changes to the gross split scheme. Initially, Pertamina's profit-sharing in this block was 57.5% for oil and 62.5% for gas. At the end of 2017, this revenue-sharing amount increased to 73.5% for oil and 81% for gas. The five termination blocks worked by Pertamina are included in the list of 10 largest oil and gas producers in Indonesia. 

    Referring to SKK Migas data, the realization of oil lifting in the Mahakam Block was recorded at 29,361 barrels per day (BPD) from the Revised State Budget (APBN-Amendment) target of 25 thousand BPD and 558 MMScfd of gas from the target of 510 Mmscfd.

Furthermore, the oil lifting of the ONWJ Block was 28,893 BPD from the target of 27,500 BPD and gas 71 MMScfd of the target of 58 MMScfd. Following are the achievements of OSES Block oil lifting of 26,542 BPD from the target of 24,010 BPD, East Kalimantan 9,862 BPD from the target of 11,380 BPD, and Sanga-Sanga 12,515 BPD from the target of 12,030 BPD.

Investor Daily, Page-9, Saturday, Oct 24, 2020

Nicke Widyawati is in the rank of the 16 most influential women in the world

 

Global business media, Fortune named Pertamina's President Director Nicke Widyawati as the Most Powerful Woman in the World 2020. Nicke was ranked 16 out of 50 women in the world who were considered to have the ability to control the company they lead. Fortune assessed that Nicke was able to handle a state-owned company with annual revenue of more than US $ 54.6 billion and 32,000 workers worldwide.

Nicke Widyawati

Nicke's ability to control the company was strengthened by the government's trust to re-elect him to lead the company's transformation into a holding company in the oil and gas sector. In response to this, Nicke was grateful and received positively for Fortune's coronation as one of the most influential women in the world by Fortune. Nicke considered that Fortune's ranking was an appreciation not only for herself but also for the entire Pertamina team.

Pertamina 

According to Nicke, as the top level of leadership at the national state-owned oil and gas company, he has the responsibility to ensure Pertamina continues to provide energy for the nation and state and to bring Pertamina as a global energy company that is the driving force for national economic growth.

"The challenges of the future of energy are in sight, and we still prioritize service to the nation, community service, and respond to global energy challenges. This position is the result of the hard work of all elements in Pertamina and also the support of all stakeholders and the Indonesian nation, ”said Nicke.

Fortune also considered Nicke Widyawati as the President Director of Pertamina very worthy of being ranked 16 because he was able to innovate in controlling the company during the Covid-19 pandemic so that Pertamina's losses could be suppressed, far better than other global oil and gas companies.

Fajriyah Usman

VP of Corporate Communication of Pertamina, Fajriyah Usman, said that this list was an annual ranking that specifically highlighted the most influential women in international-based business. Mrs. Nicke Widyawati is the only Indonesian woman on the list of 50 Most Influential Women iN Fortune's 2020 world.

Fortune also placed Pertamina's Managing Director ahead of the CEOs of various well-known companies in the global arena, such as Temasek, which is the largest state-owned company in Singapore, Shell, a Dutch multinational oil and gas company, and other leading CEOs such as Unilever, PepsiCo, Novartis, Puma Energy, Starbucks, Morgan Stanley , etc.

"This achievement makes Pertamina and Indonesia proud. Mrs. Nicke has represented all women in Indonesia in world recognition, "said Fajriyah.

Fajriyah believes this recognition will be an inspiration and role model for all Pertamina employees to continue to work hard to provide energy and bring Pertamina as a global oil and gas company. The concern of Pertamina's Board of Directors, the Board of Commissioners, and all levels of Pertamina's management is how to manage a company that can produce the best performance that can contribute to the nation and state.

"We hope that international trust will continue to increase in Pertamina, which carries a vision as a world-class national energy company and is able to face the global energy challenges going forward," said Fajriyah.

Investor Daily, Page-10, Friday, Oct 23, 2020

The Efficiency of the Rokan Block Oil Pipeline Project

    PT Perusahaan Gas Negara Tbk (PGN) has made the efficiency of the oil pipeline project in the Rokan Block a new standard for infrastructure projects it undertakes, especially in implementing National Strategic Projects (PSN). 

    President Director of PGN Suko Hartono stated that the PGN Group is committed to striving for the best support for PT Pertamina's Oil and Gas Holding so that the transition process for the management of the Rokan Block runs smoothly and can increase the achievement of financing efficiency.

The Rokan Block

    In principle, the Rokan oil pipeline project is an effort to boost efficiency in Indonesia's energy budget, in line with the government's efforts to reduce oil imports. In addition, the Rokan Pipe project is an effort to support the Government's program in increasing the lifting and effectiveness of oil distribution from the Rokan Block, which is the backbone of national petroleum production, as well as one of the largest oil blocks in Indonesia.

    With competence in developing oil and gas infrastructure and distributing energy both natural gas to all sectors, PGN seeks to improve the effectiveness and efficiency of energy distribution. The Rokan oil pipeline is one of the biggest energy projects this year which has successfully implemented a budget efficiency of Rp 2.1 trillion.

    This is in line with pandemic conditions that require a high level of efficiency in the implementation of investment and operation activities. In addition, the Rokan oil pipeline project also involves 60% of local workers, so that it can provide great benefits to the surrounding community for economic recovery during the pandemic. The estuary of this investment operation is also aimed at driving the wheels of the regional and national economy.

"Regarding the selection of partners and partner schemes for the Rokan Oil Pipe Construction Project, the process is still under internal review by Pertagas as a subsidiary of PGN. PGN as the parent and Subholding Gas is committed to the implementation and completion will be on time. As for project implementation, it is adjusted to the ongoing process, and in accordance with project implementation rules. We appreciate the attention of many parties regarding this national strategic project to take place immediately and we ensure that the project preparation process is nearing its final stage so that it can be implemented immediately, "said Suko Hartono.

    Suko explained that the financing scheme for the Rokan Pipe construction project had been carried out in accordance with a study of the economic principles of a project. The review process is carried out in accordance with internal procedures that have involved elements of the Board of Directors and Board of Commissioners by prioritizing GCG principles.

    PGN is open to safe reporting through a whistleblower mechanism if there are things that are not in accordance with the principles of GCG in the company. With this mechanism, the reporter is guaranteed protection if he finds or suspects non-transparent activity at PGN. 

    Reporting obtained from the Whistle Blowing System (WBS) mechanism will receive attention and follow-up, including the imposition of appropriate penalties or sanctions in order to provide a deterrent effect for perpetrators of violations and for those who intend to do so. PGN opens access to reporting on actions that are detrimental to the company/environment/community through https://wbs.pgn.co.id

Investor Daily, Page-10, Thursday, Oct 22, 2020