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Wednesday, March 10, 2021

Government Prepares 50 Oil and Gas Blocks for Auction

To increase national oil production, the government has prepared 50 oil and gas blocks to be auctioned in the period 2021-2024. This is because the national demand for crude oil will increase to 1.49 million barrels per day (BPD) in 2030.

Secretary-General of the National Energy Council (DEN) Djoko Siswanto said that an auction of oil and gas blocks is necessary to increase national oil production. This is because once all fuel oil (BBM) refinery projects are completed, the refinery's raw material requirement for crude oil will increase to 1.4 million BPD.

"So to increase oil production, the government will auction off new working areas in 2021 to 2024," he said.

In 2021, there will be 10 oil and gas blocks which are a diversion from the planned auction in 2020, and 10 oil and gas blocks resulting from a joint study that was completed last year as well. Furthermore, 10 oil and gas blocks each will be offered in 2022-2024.

"In 2024, there are also 10 working areas that can be auctioned off to increase oil production as raw material for refineries," he said.

Referring to DEN's Grand National Energy Strategy (GSEN), a total of 50 oil and gas blocks are prepared for auction. In 2021, the oil and gas blocks prepared are the West Palmerah, Rangkas, Liman, Bose, Maratua II, Merangin III, Sekayu, North Kangean, Mamberamo, and Cendrawasih VIII blocks.

In addition, there are also blocks from the joint study, namely the Arakundo Block, Offshore Northwest Aceh, Offshore Southwest Aceh, South CPP, Bertak Pijar Puyuh, Sumbagsel, Serunai, Deep Water Bali, Bali Strait, and Karaeng. In 2022, the blocks to be prepared are the Barakuda Block, Peri Mahakam, North Ketapang, East Gebang, Ranau, East Muriah, Buton, Off Pulau Moa Selatan, Ogar, and West Papua III.

Next, the blocks that will be auctioned off in 2023 are the South Barito, North West Ganal, Budong-Budong, Malunda, East Bula, Semai IV, Kei, Papeda, Warim, and Asmar blocks. The last 10 blocks planned to be offered in 2024 are East Gebang, Baronang, Sokang, Kuningan, South Matindok, Enrekang, Bukat, Bulungan, Bone, and East Sokang.

However, for 2021, the Ministry of Energy and Mineral Resources (ESDM) has only confirmed the auction of 10 oil and gas blocks, which is a diversion from the planned auction in 2020.

ESDM Ministry's Upstream Oil and Gas Business Development Director Mustafid Gunawan said five oil and gas blocks would be offered through regular auctions, namely Merangi III, Sekayu, North Kangean, Cendrawasih Offshore, and Mamberamo Blocks. Furthermore, five other blocks were auctioned through direct bidding, namely West Palmerah, Liman, Rangkas, Bose, and Maratua II.

"This work area is expected to be offered in the first quarter to the first semester of 2021. This offer is the first implementation of the contract scheme flexibility Permen, "he said.

With the flexibility of the contract scheme, he hopes that the auction will remain in demand even though the Covid-19 pandemic is still ongoing.

Still Import

Djoko explained that the government has targeted oil production to be increased to 1 million BPD in 2030 after the refinery needs raw materials. This is because, without any effort, crude oil imports will be huge in the future. In fact, with a target of 1 as well as BPD alone, crude oil imports still have to be done.

"If the oil production target of 1 million BPD is successful, we still need to import 324 thousand BPD later in 2026-2027, the peak of operational refineries, both existing and built refineries," explained Djoko.

Based on GSEN DEN data, domestic crude oil demand will increase from 909 thousand BPD in 2020 to 993 thousand in 2025, and reach 1.49 million BPD in 2030. While domestic oil production is projected to increase from a range of 742 thousand in 2020 to 2025 to 1 million BPD in 2030. However, oil imports of 338 thousand BPD are estimated to be needed in 2030 and 441 thousand BPD in 2040.

In fact, the increase in domestic oil production has already taken into account additional projects from enhanced oil recovery / EOR and exploration. Oil production from EOR activities are targeted at 18 thousand BPD in 2025, up to 106 thousand BPD in 2030, and reaching 261 thousand BPD in 2040. 

    Meanwhile, additional production from exploration is 109 thousand BPD in 2030 and 220 thousand BPD in 2040. Additional production is also derived from the acquisition of 122 thousand BPD in 2025, 150 thousand in 2030, and 170 thousand in 2040.

Investor Daily, Page-10, Tuesday, Jan 26, 2021

Pertamina Hulu Energi Completes KLD Project

 


PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), a subsidiary of PT Pertamina Hulu Energi (PHE), has completed the KLD Project in the ONWJ Block. This project provides an additional gas supply of 16 million standard cubic feet per day / MMscfd. 



    PHE Development and Production Director Taufik Aditiyawarman said the KLD project was successfully completed three months earlier than the set schedule and without any accidents (zero-incident). This is due to hard work and coordination with various parties, including the project contractor, PT Meindo Elang Indah.

"Gas production from the KLD Field will be used entirely for domestic interests so that it will drive the industrial economy around our working area," he said.

He explained, the KLD Field off the north coast of West Java began construction in April 2019. The KLD project has gone through several stages, including fabrication in the Handil Field, load out and sail away in mid-July 2020, off-monitoring installation, drilling activities, hook up, commissioning, and start-up. According to Taufik, the KLD Field has started distributing gas since December 2020. In early January, PHE ONWJ has completed a performance test period according to production operation parameters.

"From the KLD Field, it is targeted that gas production is 16 MMscfd in the peak production period," said Taufik.

Blogger Agus Purnomo in SKK Migas

Meanwhile, Julius Wiratno, Deputy for Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), appreciated PHE ONWJ for successfully completing the Project in the midst of difficult conditions. The reason is, last year was a very challenging year where world oil prices were relatively low and the Covid-19 pandemic had an impact on the dynamics of the upstream oil and gas industry and its supporting sectors.



His party will continue to strive to increase supervision and control of field development projects, as well as coordinate with oil and gas companies and other stakeholders to minimize the impact of the pandemic. The success in the KLD Project is expected to be able to encourage PHE to carry out various upstream activities so that it can have an impact on national oil and gas production, including having a chain effect on the economy and employment.

"And in the long term it will support efforts to achieve oil production of 1 million barrels per day and gas of 12 BSCFD (billion standard cubic feet per day) in 2030 to realize national energy security," said Julius.

Referring to SKK Migas data, the KLD Project is included in 12 projects that are planned to start operating this year. The entire project will provide additional oil production of 28,508 bpd and gas of 484.2 MMscfd. The 12 projects are expected to support the achievement of this year's oil production target of 705 thousand BPD and gas 5,638 MMscfd.

Investor Daily, Page-10, Monday, Jan 25, 2021

Government Assesses Continuation of Bontang Refinery Project

 


The Ministry of Energy and Mineral Resources (ESDM) said the project to build a new fuel oil (BBM) refinery in Bontang, East Kalimantan was being reviewed again. In fact, this refinery project is still listed in the list of National Strategic Projects in accordance with Presidential Regulation Number 109 of 2020.

Since PT Pertamina ended its contract with a partner in 2019, the Bontang Refinery is still being studied, "the Director of Development of the Oil and Gas Program as well as the Acting Director of Downstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources Soerjaningsih.



The contract in question is the frame work agreement / FWA agreement between Pertamina and its partner Overseas Oil and Gas LLC (OOG), an oil and gas company from Oman. Pertamina stated that it had not continued the agreement that became the basis for forming the joint venture company for the Bontang Refinery Project since February 2020.

 the Bontang Refinery Project

Soerjaningsih said that the continuation of the Bontang Refinery Project was also hampered by land problems. Originally the refinery would be built on government-owned land in Bontang.

"There is a problem that the location in Bontang which is owned by the government is insufficient and this is still a special study related to capital expenditure," he explained.

Nicke Widyawati

Pertamina has stated that it has not continued with the Bontang Refinery Project since the middle of last year. At that time, Pertamina's President Director Nicke Widyawati revealed that his party would re-evaluate the refinery projects being undertaken, namely the Bontang Refinery. This also means that the company will no longer continue the process of finding new partners for this refinery project.

"The Bontang refinery hasn't been built yet," said Nicke.

Nicke briefly explained that this step was taken after the demand for fuel oil decreased after the Covid-19 pandemic. The company sees that although it will still grow, the increase in fuel oil (BBM) consumption is not likely to be as high so far. Apart from that, the Company's partners in the Bontang Refinery Project declared their resignation.

"So we will count the refinery project again. Previously there were six refinery projects, four refinery upgrading projects, and two building new refineries, we are correcting this. We only built one new refinery and upgraded four existing ones, ”explained Nicke Widyawati.

On the other hand, in Presidential Regulation number 109 of 2020, the Bontang Refinery Project is still included in the list of National Strategic Projects. Referring to this regulation, refinery projects that are included in the National Strategic Project are the Tuban Refinery Project, repair and upgrading of existing refineries in Central Java, East Kalimantan, Riau, and South Sumatra, upgrading and development of the petrochemical industry in Balongan, West Java, and construction of green refineries in Cilacap, Central Java and in Plaju, South Sumatra.

Soerjaningsih continued, the review of the Bontang Refinery Project would not interfere with the security of fuel supply in the future. For diesel, he said that almost all national needs can be met from domestic refinery production. In fact, for avtur, national production in 2020 can then be exported. The potential for avtur exports will be even greater with the completion of refinery projects.

"Meanwhile, imports of gasoline (gasoline) are still very high. However, with the onstream (operation) of the Balikpapan refinery in 2022 and several other refineries, it still imports [gasoline] but it is not too big, ”he explained.

The Bontang refinery, which was designed to have a capacity of 300 thousand barrels per day (BPD), was scheduled to operate in 2026. Now, without the Bontang Refinery, Pertamina projects that its processing capacity will increase from 1 million bpd to 1.8 million BPD. In addition, fuel production capacity will also increase from 600 thousand bpd to 1.5 million bpd and petrochemical products from 44 thousand bpd to 258 thousand bpd. All refineries will also be able to process crude oil with a sulfur content of up to 2% and produce Euro V quality fuel oil (BBM).

Investor Daily, Page-10, Thursday, Jan 21, 2021

Tuesday, March 9, 2021

Pertamina EP Adera Field Adds Production 751 BOPD


PT Pertamina EP, a cooperation contract contractor under the supervision of SKK Migas and a subsidiary of Pertamina Persero, has succeeded in increasing oil production by 751 barrels per day / BOPD from the BNG-A1 well at Adera Field. The amount of production is 500% of the initial target of 150 BOPD. The equivalent of oil and gas production from the BNG-A1 well reached 819 BOEPD or 145% of the target of 565 BOEPD, even though gas production reached 0.4 million standard cubic feet per day / MMSCFD.



General Manager of Pertamina EP (PEP) Asset 2 Astri Pujianto said the drilling program needed adjustments given the very strict health protocol for preventing the transmission of Covid-19. This requires regular health screenings to be carried out and of course limiting some activity.

"However, Alhamdulillah, the activities can be carried out, even faster than the specified target time," said Astri.

This drilling program using Rig PDSI D1500-E / 53 1500HP which was initially implemented with a target of 52 calendar days can be completed in 48 calendar days. This results in significant cost and time efficiencies.

Doctor Nirwan Abidin, Medical Supervisor of PEP Asset 2, said that adjustments to health protocols occurred with crew change and personnel operations while in the field. There are differences when carrying out drilling operations in normal times and during a pandemic, such as medical test screening when engineers and operators enter the location.

All personnel is obliged to carry out quarantine for four days and then carry out a PCR test, once the results are negative and they are declared fit to go to the location, after that the personnel is allowed to enter the work location.

"Conversely, if the results are positive and not fit, the person concerned are not allowed to enter the location or work," said Dr. Nirwan.

Nirwan added that although drilling activities were carried out with adjustments to health protocols during the COVID-19 pandemic, drilling activities could be carried out safely, smoothly, and safely. The Well drilling activity was successfully carried out after the completion of drilling in the K1 layer of the Talang Akar Formation (TAF) West Block Benuang Structure which has never been produced in the surrounding wells. As for the drilling in the West Block, the last Benuang Structure was carried out in 1986, so this success would certainly be a new potential and open up opportunities for increased production in the Adera Field.

PEP Asset 2 Exploitation Senior Manager Adang Sukmatiawan said that the success of drilling in BNG-A1 in early 2021 has encouraged the EPT Asset 2 Team to look for new oil reservoirs or reserves that have never been produced and to evaluate the potential for subsurface inter-field.

"We are also working with the Drilling and Workover team to mitigate the potential risks of drilling hazards that may be encountered," said Adang.

    Adera Field currently produces oil of 1,933 bopd and gas of 9.9 mmscfd. Based on SKK Migas' Integrated Operating System (SOT) data at the end of January 2021 year-to-date, PEP Asset 2 crude oil production stood at 17,730 bopd, while natural gas production was around 335 mmscfd. Asset 2's oil and gas production comes from the Prabumulih, Limau, Adera and Pendopo fields.

Investor Daily, Page-9, Saturday, Jan 16, 2021

Aramco Trading Honors Nicke Widyawati Top CEO 2020

 


The Aramco Trading, a global energy company based in Saudi Arabia, named Pertamina President Director Nicke Widyawati as Top CEO 2020. In this award titled The Aramco Trading New Silk Road CEO of the Year in 2020, Nicke Widyawati was named the best CEO for the Energy Refining category.

Nicke Widyawati

Nicke's crowning as Top CEO 2020 is based on the assessment and performance of Nicke who has outstanding achievements in the national oil and gas processing industry at the time of the Covid-19 challenges that hit the world. Nicke is also considered to have an outstanding record in building the progress of the oil and gas industry and interconnecting energy from the Middle East to Asia.


Nicke Widyawati revealed that this award was the result of the hard work of all Pertamina employees. This year, Pertamina experienced triple shocks as a result of the Covid-19 pandemic, namely, the world crude oil price dropped dramatically, decreased demand for fuel oil, and depreciated the rupiah exchange rate against the dollar. However, all Pertamina's business lines will continue to meet the 2020 target.

“Our aspiration is to become a leading global energy company with a market value of US $ 100 billion. The existing refineries and development programs are our commitment to fulfill the tasks mandated by the Government and focus on encouraging the development of refineries that are integrated with petrochemicals, "said Nicke Widyawati.

According to Nicke Widyawati, Pertamina also focuses on developing green refineries and new and renewable energy in order to fully implement the environmental, social, and government framework (ESG Framework). This step is taken so that Pertamina is more agile, adaptive, and sustainable in facing the challenges of the energy transition era which is in line with Pertamina's vision to become a world-class oil and gas company with a market value of US $ 100 billion.

"Within the framework of developing renewable energy, Pertamina will continue to optimize the use of domestic energy sources. The construction of the RDMP (Refinery Development Master Plan) and NGRR (New Grass Root Refinery) megaprojects continues to be completed to achieve national energy independence and sovereignty, "said Nicke Widyawati.

Investor Daily, Page-10, Friday, Jan 15, 2021

Heavy Duty Runway Lifting

 


Improving the performance of upstream oil and gas is still homework that needs to be completed by industry players in the country, in line with the low lifting achievement by some contractors.

Blogger Agus Purnomo in SKK Migas

Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), out of 15 large cooperation contract (KKKS) contractors that produce oil and condensate, eight companies are unable to meet the production targets ready for a sale (lifting) in the work program and budget (work program and budget / WP & B) 2020.

PT Pertamina EP, for example, realized lifting reached 93.5% of the WP&B. A similar condition occurred in Conocophillips (Grissik) Ltd with a lifting achievement of 92.2% from WP&B. 

Blogger Agus Purnomo In Petronas Carigali Ketapang

    Meanwhile, Petronas Carigali (Ketapang) Ltd was only able to record a lifting of 76.8% of the target. On the other hand, the KKKS with the largest oil production and lifting, ExxonMobil Cepu Limited (EMCL), is still able to meet the target in 2020 with the realization of lifting reaching 217,637 barrels per day (bpd) from the Cepu Block.

the Cepu Block and Banyu urip Field

This achievement came from the Banyu Urip field production which had reached a peak production of 230,000 bpd. In gas lifting, out of 15 large KKKS, there are also eight companies that are unable to meet the target according to WP&B, namely Conocophillips (Grissik) Ltd, Pertamina EP, Eni Muara Bakau B.V, and Medco E&P Natuna. 


Blogger Agus Purnomo In PHE-WMO

    Then, other contractors who failed to reach the target were Pertamina Hulu Energi West Madura Offshore (PHE-WMO), PT Pertamina Hulu Energi Jambi Merang, Husky-CNOOC Madura Ltd (HCML), and Pearl Oil (Sebuku) Ltd.

Deputy for Operations of SKK Migas, Julius Wiratno explained that his party was preparing a warning or warning for KKKS that did not reach the target in accordance with the deal.

"For the 2020 performance, a 'love letter' is currently being drafted, this week it is [sent]," he said.

He emphasized that the KKKS could get sanctions for not being able to achieve the target. Sanctions can be in the form of tightening KKKS spending until the KKKS work plans and budgets are not approved.

"There are also those whose cost recovery is not approved if it is not in accordance with the initial agreement," he said.

He also highlighted a number of subsidiaries of PT Pertamina (Persero) that have not been able to meet the lifting target last year. Julius assessed that this was due to economic problems in the field. However, SKK Migas and Pertamina have made an agreement to improve performance this year. 

    Previously, the President Director of PT Pertamina Hulu Energi, Budiman Parhusip, said that Pertamina has challenges with a high decline rate due to managing old fields. However, his party has prepared a number of contracts related to the drilling program to optimize lifting.

"We hope that the full cooperation will run smoothly," he said.

Meanwhile, Pertamina is planned to manage around 60% of the oil and gas fields in Indonesia. Currently, about 40% are still managed by this state-owned company. With this projection, the government also has high hopes for Pertamina in achieving the oil lifting target of 1 million BPD. Meanwhile, the government is deemed necessary to intervene in the decline in Pertamina's performance in the national upstream oil and gas sector.

Trisakti University lecturer Pri Agung Rakhmanto explained that the main factor for Pertamina's decline in production last year was due to the economy in the field plus the pressure of the Covid-19 pandemic. According to him, old fields have an effect on the decline in investment and Pertamina's business activities. Meanwhile, the Covid-19 pandemic has resulted in limited operational activities.

"Pertamina is now the backbone of national production with more and more blocks being transferred to it by mistake. The government should be able to provide more support, "he said.

He suggested that the cooperation contract should include fiscal aspects affected by the latest economic conditions. Meanwhile, Executive Director of the National Oil and Gas Companies Association (Aspermigas) Moshe Rizal said that the fall in oil prices coupled with a decrease in demand due to the Covid-19 pandemic has indeed put heavy pressure on KKKS financially. 

    In addition, operational activities are hampered by large-scale social restrictions (PSBB) even though the budget is available. As a result, project execution is hampered, including maintenance operations, workovers, and other activities that can help maintain production levels.

"For this year, everything depends on how fast we recover economically and how fast the distribution of vaccines is so that it can reduce the infection rate," he said.

The President Joko Widodo

PRICE OF POWER PLANT GAS

President Joko Widodo has set the price of natural gas for power plants at a maximum of US $ 6 per MMBtu. The regulation is in Presidential Regulation Number 121 of 2020 concerning Amendments to Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing which was promulgated on December 29, 2020. In Article 4 Paragraph 3 it is stated that the determination of certain natural gas prices can be given to natural gas users. engaged in the supply of electricity for the public interest. 

This Presidential Regulation is in line with the Minister of Energy and Mineral Resources Regulation Number 10 of 2020 concerning Amendments to the Regulation of the Minister of Energy and Mineral Resources Number 45 of 2017 concerning Utilization of Natural Gas for Power Plants. This regulation confirms the adjustment of the gas price for PT PLN (Persero) 's needs to be the US $ 6 per MMBtu.

Bisnis Indonesia, Page-4, Thursday, Jan 7, 2021

Hard Work in the Upstream Oil and Gas Industry

 


Although the oil and gas industry is still challenging, the Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas still targets 14 upstream projects to start operating this year.

SKK Migas Operations Deputy Julius Wiratno said that this year, there were 12 upstream oil and gas non-PSN (National Strategic Projects) projects that were targeted to start operating or onstream. The number is an increase of one project compared to last year's target.


Blogger Agus Purnomo in SKK Migas

"There will be 12 non-PSN projects on stream with a project value of US $ 354 million and the potential for additional oil production of 27,000 bpd and 492 MMscfd of gas," he said.



Meanwhile, the two PSN projects that will be onstream in 2021 are the Jambaran Tiung Biru project by PT Pertamina EP Cepu (PEPC) and the Tangguh Train-3 project by BP

    The Jambaran Tiung Biru project is projected to be onstream in the fourth quarter of 2021. The project work as of the third quarter of 2020 still reached 74.28% of the target of 88.28%. 

The Jambaran Tiung Biru Oil Field

    Similar to the Tiung Biru Jambaran Project, the Tangguh Train-3 project is projected onstream in the fourth quarter of 2021. As of September 2020, the progress of Tangguh Train-3 onshore work has reached 88.27%, and offshore has reached 98.27%.

the Tiung Biru Jambaran Project

"Apart from the difficulties of the Covid-19 pandemic, we are still targeting onstream at the end of 2021," he said.

Although SKK Migas is optimistic that the work plan in the upstream oil and gas sector will proceed as planned, a number of challenges, particularly those affecting the project's economy, are still looming. The government is also considered to have to be more active so that a number of oil and gas projects whose work is constrained can be realized immediately. 

    So far, there are two upstream oil and gas projects that are still unclear because the company plans to release its participation, namely Shell in the Masela Block Abadi field project and Chevron in the Indonesia Deepwater Development (IDD) project.

Trisakti University teaching staff Pri Agung Rakhmanto explained that in the case of the Masela Block project, the government needs to be more active to play a role in obtaining gas buyers. Meanwhile, in the IDD project, middle ground and a compromise must be found in terms of project economics. 

    An observer of the energy economy from Gadjah Mada University Fahmy Radhi is of the opinion that the government should step in so that the Masela Block construction can be completed on time, including in land acquisition to build a pipeline network. This is an important part needed to distribute the gas produced from the Abadi field.

"The challenge is completing the construction and pipeline infrastructure for gas distribution from the Masela Block to consumers. With great prospects, it is not difficult for Inpex to find investors to replace Shell, "he said.

The Executive Director of the National Oil and Gas Companies Association (Aspermigas), Moshe Rizal Husin, assessed that the homework that the government still has to do is to revive the investment climate in the upstream oil and gas sector. Meanwhile, based on SKK Migas data, the realization of upstream oil and gas investment in 2020 only reached the US $ 10.21 billion, lower than the target of US $ 12.1 billion. For this year, SKK Migas is targeting upstream oil and gas investment of US $ 12.3 billion.

"There must be a significant breakthrough and commitment from the government that creates certainty. The oil and gas business is long-term and has a very large multiplier effect, ”said Moshe.

Moshe hopes that the condition of the upstream oil and gas industry this year can run better with stable oil prices at a level above the US $ 50 per barrel or even could improve to the level of US $ 60 per barrel in the third quarter of 2021.

KEEP PRODUCTION

In other developments, the development program in the Mahakam Block will run more aggressively in order to reduce the rate of natural production decline. SKK Migas has approved the work plan of PT Pertamina Hulu Mahakam (PHM) in 2021 with more drilling activities compared to 2020. Thus, production in the Mahakam Block in 2021 is expected to increase with more massive and aggressive optimization.

Deputy of Finance and Monetization of SKK Migas Arief S. Handoko said that if production from the Mahakam Block drops, domestic LNG production will also decline. However, PHM will get incentive approval so that production is maintained.

Merakes Field By ENI Italy

"The possibility of production stays, even increases. In addition, there is a new Merakes field that will contribute so that LNG production will increase, ”he explained.

Agus Amperianto

Likewise, General Manager of PHM Agus Amperianto said that his party is optimistic that it can maintain production in the Mahakam Block by optimizing work in the field development operations that have been approved by SKK Migas.

"Currently, what is possible for Mahakam to do is how to survive in times of crisis," he said.

He added that this year there are a number of efficiency programs, including reducing the operating costs of the Mahakam Block effectively and efficiently. In addition, PHM will also strengthen operational activities through collaboration, strengthening knowledge management, and organizational transformation. 

    Based on the 2021 work program and budget (WP&B), PHE will carry out 73 development well drilling activities and two exploration wells drilling. Meanwhile, as of December 31, 2020, the realization of PHE's oil and gas production was still above the target.

Oil and condensate production was recorded at 26,363 bpd or 102% of the revised WP&B of 25,722 bpd. Meanwhile, gas production reached 606 MMscfd or 103% compared to the revised WP&B of 588 MMscfd.

Bisnis Indonesia, Page-4, Tuesday, Jan 5, 2021

HCML guarantees Availability of Gas Supply During Pandemic

 


Husky-CNOOC Madura Limited (HCML) ensures the availability of gas supplies during the pandemic. Production continues under strict health protocol standards. In carrying out field projects, HCML applies the same health protocol and understanding to all workers and contractor workers. They always coordinate with the Health, Safety, Security and Environment (HSSE) Department team to get medical attention.


"All of this is a form of HCML's commitment to contribute in securing the national gas supply during this difficult time," said Hamim Tohari, Manager of the HCML Regional Office.

Not only does it continue to produce with strict health standards, but HCML also continues to distribute CSR (Corporate Social Responsibility) to a number of villages around the HCML working area in the Sampang Madura Regency area. These community programs cover areas that are basic needs of society, namely economy, education, health, and infrastructure.

Hamim said HCML is committed to being a partner of the local government in developing the community. "We will always support regional progress. Especially on the momentum of the 397th anniversary of Sampang Regency," he said.

The HCML participation fund is a form of that care and concern. It is hoped that it can help the Sampang government in improving the welfare of residents in the village.

"For this reason, HCML hopes that the support of all stakeholders can help smooth the production of HCML natural gas in the waters of the Madura Strait," he said.

As is well known, in certain seasons there are often misunderstandings between fishermen and companies. In certain months, there are some fishermen who keep their activities within a limited and forbidden radius in the oil and gas field. In fact, this is very dangerous for operations and fishermen if there is a sudden increase in gas pressure.

"For that, in the future, we really hope for the support of all stakeholders to be able to provide understanding to fishermen regarding this matter," said Hamim.

Duta Masyarakat, Page-16, Monday, Jan 4, 2021

SKK Migas Wait for Eni

 


The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas awaits Eni as a potential replacement partner for Chevron in the Indonesia Deepwater Development (IDD) project in East Kalimantan. Meanwhile, PT Chevron Pacific Indonesia is said to be releasing the management of the IDD project in the near future and the strategic partner who is said to have the most potential to replace him is Eni.


"Eni is still discussing the commercial. The hope is that January 2021 will have an answer. This is what we will wait for, "said Fatar.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto said that Eni was one of the potential partners who could replace Chevron in the IDD project considering Eni's facilities in Muara Bakau and Merakes could be integrated. In the IDD project, Chevron acts as 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.


Blogger Agus Purnomo in SKK Migas

This project will combine four fields, namely Bangka, Gehem, Gendalo, and Gandang Fields. The Gehem, Gendalo, and Gandang fields are included in the Ganal Block. In another development, the process of releasing Shell Upstream Overseas Ltd.'s participating interest (PI) The Masela Block Abadi Field project is projected to be completed by the end of 2021. The PI to be released is already in demand by a number of parties although it has not been specifically mentioned by SKK Migas. Meanwhile, the Abadi Masela Field project is a large project with an estimated investment of US $ 19.8 billion. Therefore, the PI release process may not proceed quickly.

In its development, Inpex Masela Ltd. as the operator has submitted a document of environmental impact analysis (amdal) for the Abadi Masela LNG project to the Ministry of Environment and Forestry. Act. Inpex Masela Corporate Communication Manager Moch N. Kurniawan said that SKK Migas and Inpex had submitted the EIA documents for the Abadi LNG project on December 18, 2020. This is in accordance with SKK Migas directives for the acceleration of the Abadi LNG National Strategic Project. SKK Migas Wait Eni

The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas awaits Eni as a potential replacement partner for Chevron in the Indonesia Deepwater Development (IDD) project in East Kalimantan. Meanwhile, PT Chevron Pacific Indonesia is said to be releasing the management of the IDD project in the near future and the strategic partner who is said to have the most potential to replace him is Eni.

"Eni is still discussing the commercial. The hope is that January 2021 will have an answer. This is what we will wait for, "said Fatar.

Head of SKK Migas Dwi Soetjipto said that Eni was one of the potential partners who could replace Chevron in the IDD project considering Eni's facilities in Muara Bakau and Merakes could be integrated. In the IDD project, Chevron acts as 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.

This project will combine four fields, namely Bangka, Gehem, Gendalo, and Gandang Fields. The Gehem, Gendalo, and Gandang fields are included in the Ganal Block. In another development, the process of releasing Shell Upstream Overseas Ltd.'s participating interest (PI) The Masela Block Abadi Field project is projected to be completed by the end of 2021. The PI to be released is already in demand by a number of parties although it has not been specifically mentioned by SKK Migas. Meanwhile, the Abadi Masela Field project is a large project with an estimated investment of US $ 19.8 billion. Therefore, the PI release process may not proceed quickly.

In its development, Inpex Masela Ltd. as the operator has submitted a document of environmental impact analysis (amdal) for the Abadi Masela LNG project to the Ministry of Environment and Forestry. Act. Inpex Masela Corporate Communication Manager Moch N. Kurniawan said that SKK Migas and Inpex had submitted the EIA documents for the Abadi LNG project on December 18, 2020. This is in accordance with SKK Migas directives for the acceleration of the Abadi LNG Abadi National Strategic Project.

Bisnis Indonesia, Page-4, Monday, Jan 4, 2021

Upstream Oil and Gas Successfully Recorded Excellent Performance


The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has managed to record brilliant performance throughout 2020 by achieving several targets set by the government.

Blogger Agus Purnomo in SKK Migas

It is recorded that the national upstream oil and gas sector produced five impressive achievements in the aspects of the Reserve Replacement Ratio (RRR), oil and gas lifting, cost recovery control, state revenues, and completion of upstream oil and gas projects.

At the end of 2020, oil lifting was recorded at 706 thousand barrels of oil per day (BOPD) or 100.2 percent exceeding the target of the Revised State Budget (APBN-P) which was set at 705 thousand BOPD.

Meanwhile, gas lifting was 5,461 million standard cubic feet per day (MMSCFD), slightly below the APBN-P target of 5,556 MMSCFD or reached 98.3 percent. As for state revenues, the figure achieved was US $ 8.4 billion, or 141 percent of the target set at the US $ 5.86 billion.

Dwi Soetjipto

"2020 is a difficult year for all business actors, especially in the upstream oil and gas sector, apart from being affected by the Covid-19 pandemic, we are also overshadowed by low world oil prices. However, thanks to hard work with KKKS (Cooperation Contract Contractors), in the end, the upstream oil and gas industry succeeded in exceeding several targets set by the government. The contribution of this industry is expected to help the national economy which is also affected by the pandemic, ”said the head of SKK Migas, Dwi Soetjipto.

Dwi added that another achievement was that SKK Migas was able to complete 15 onstream projects out of the 11 targeted onstream projects or 136 percent. Of these 15 projects, the potential for additional oil production is 9,182 BOPD and gas of 111 MMSCFD. The upstream oil and gas investment reached the US $ 10.21 billion and cost recovery control was US $ 8.12 billion according to the government's target.

According to the Deputy Head of SKK Migas, Fatar Yani Abdurrahman, during the 2020 period, there were several important milestones that were achieved including the completion of 24 PSC Side Letters and 61 LoAs and Amendments to the Natural Gas Sale and Purchase Agreement (PJBG) related to gas price adjustments in accordance with the Regulation of the Minister of Energy and Mineral Resources No. 89K / 2020 and 91K / 2020.

"The total adjusted gas reaches 2,601 British thermal units per day (BBTUD), consisting of 1,205 BBTUD for the downstream industry and 1,396 BBTUD for the State Electricity Company (PLN). This gas price adjustment aims to have an economic impact on the country through growing downstream industrial activities and reducing the burden of electricity subsidies, "he explained.

In addition, SKK Migas also successfully completed the Heads of Agreement (HoA) for the transition to the Rokan Block on September 28, 2020.

"With the implementation of the HoA, PT CPI (Chevron Pacific Indonesia) can conduct drilling to maintain Rokan production until the end of the contract," explained Fatar.

Sakakemang Block

Fatar added that the first Plan of Development (POD) for the Kaliberau Field, Sakakemang Block was also approved by the government on December 29, 2020. With this approval, the realization of the Reserve Replacement Ratio (RRR) stands at 101.6 percent with additional reserves of 705.16 MMBOE.

Meanwhile, based on this brilliant record, Fatar said SKK Migas was optimistic in welcoming 2021. He said that his party had finished compiling work programs and budgets with KKKS to achieve government targets.

"We know that the oil lifting target that has been set has not changed from this year, which is 705 thousand BOPD. To ensure there is no decline in production, SKK Migas is trying to carry out massive, aggressive and efficient activities. We are also determined, in 2021 there is no decline in national oil and gas production, "he concluded.

Bhirawa, Page-10, Monday, Jan 4, 2021