PLN Is Judged as Most Eligible to Manage Electricity Supply in the Rokan Block

 

    After the expiration of the PT Chevron Pacific Indonesia (CPI) contract in early August 2021, the electricity supply business in Rokan Block, Riau Province, is deemed to be carried out by PT PLN (Persero), as the state-owned electricity company as well as the mandate holder of the Decree of the Minister of Energy and Mineral Resources Number 634 12/20 / 600.3 / 201.

PT Chevron Pacific Indonesia (CPI)

"According to Ministerial Decree No. 634, no business entity other than PLN has the right or authority to carry out electricity supply business activities in the Rokan Block," said PLN Commercial and Customer Service Director Bob Sariel, while speaking at a webinar entitled Safeguarding State Assets and Sustainability of Electricity Supply. in the Rokan Block organized by the Energy and Mining Editor Society (E2S).

PT PLN (Persero)

    According to Bob, the provision of electricity is very important in supporting the efficiency and adequacy of electricity nationally, every business entity wishing to participate in the electricity supply business should always be based on cooperation with PLN as a provider of electricity throughout Indonesia.

"For PLN, electrifying the Rokan Block is not about profit but about carrying out national duties," he said.

    The majority of the electricity supply in the Rokan Block comes from the Gas and Steam Power Plant (PLTGU) managed by PT Mandau Cipta Tenaga Nusantara (MCTN) whose majority shares are owned by Chevron Standard Ltd (CSL).

    Chevron's electricity and steam agreement with MCTN, whose majority shares are owned by CSL as a Chevron Holding group, is embodied in the form of an Energy Service Agreement (ESA) with a return on investment in the form of a Capacity Fee. The contract period starts from 2000 to August 8, 2021, where the revenue is estimated to have exceeded the return on investment so that the interests of shareholders have been fulfilled so far.

the Rokan Block Chevron

    Bob explained, after the end of the Rokan Block management contract by CPI, the ESA between CPI and MCTN also ended. CSL, as the majority shareholder of MCTN, should not conduct an open bid for the sale of MCTN shares using the services of JP Morgan's financial consultant. Because the management of the Rokan Block by CPI ends in August 2021.

    CSL as the majority shareholder of MCTN whose agreement with CPI also ends in August 2021 should communicate conducive to electricity and steam providers appointed by Pertamina in providing reliable and efficient electricity and steam for the long term along with the management of the Rokan Block which switches to Pertamina starting August 9, 2021.

PT Pertamina Hulu Rokan (PHR) Working Area

    Bob said PLN is ready to carry out an important mandate to support the management of the Rokan Block by PT Pertamina Hulu Rokan (PHR), a subsidiary of PT Pertamina Hulu Energi, to produce and produce as much as possible for the country. PLN is also ready to conduct business-to-business negotiations with Chevron regarding the power plant in the Rokan Block.

"B2B problem, yes we do, of course, this must be based on fairness. What is being offered must be something that is reasonable, "said Bob.

    According to him, PLN is capable of managing the CSL generator in Rokan. Moreover, PLN is accustomed to using any technology for generators.

"Like the PLTGU in Tanjung Priok and Muara Karang, the engine is the same as in the Rokan block," he said.

    Fataryani Abdurahman, Deputy Head of SKK Migas, said that SKK Migas has sent a letter to Chevron regarding the power plant in Rokan.

"We said that the profits have been many, for 20 years you PT Chevron Pacific Indonesia (CPI) have got a lot of benefits. But sometimes we forget that they also maintain, "he said.

    According to Fatar, electricity is the backbone of operations in the Rokan Block. Because the PLTGU was designed in the 90s to implement Steamflood Enhanced Oil Recovery (EOR) technology which requires a large electricity supply.

Investor Daily, Page-10, Friday,  April 9, 2021

Chevron Electric Tenders Too High

 

    PT PLN (Persero) asked Chevron to conduct an open tender for the Rokan Block electric generator, including by not setting an auction value of US $ 300 million because it was considered too high.

the Rokan Block

    Director of Commerce and Customer Management of PLN, Bob Saril, said that the business to business process related to the auction of the 300 megawatt (MW) power plant must be based on justice. According to him, the price set by Chevron is too high, so the pricing for the assets must be based on a fair assessment.

"The purchase value alone was US $ 190 million 20 years ago. We want to sell US $ 300 million, ”he said in the webinar on Safeguarding State Assets and the Sustainability of Electricity Supply in the Rokan Block.

the Rokan Block Working Area

    Bob also regretted that Chevron's move to hold the tender in the United States had prevented the process from being open. PLN is working with a number of related institutions to calculate the fair value of the asset which Chevron owns 95% of its shares.

“The tender process must be carried out fairly, but it seems that the tender process is not open. Intentionally covered up to find the highest value "he said.

    According to him, in the authority to supply electricity in the Rokan Block, PLN refers to the Minister of Energy and Mineral Resources Regulation No. 28 of 2021 and the Minister of Energy and Mineral Resources Regulation No. 30 of 2018. The Rokan Block area is part of the PLN electricity sales business area. For this reason, the supply of electricity and steam in the Rokan Block must be handed over to PLN as the party responsible for generating electricity. Other business entities can support PLN for other supporting services in carrying out these national duties.

PT PLN (Persero)

"For PLN, electrifying the Rokan Block is not about profit but by carrying out national duties," he said.

    On the other hand, PT Pertamina (Persero) will also prepare options if the acquisition process for Chevron's power plant in the Rokan Block cannot be completed during the transition period of management transfer.

    Pertamina's Upstream Subholding Director of Strategic Planning and Business Development John Simamora said that his party had partnered with PLN by signing a memorandum of understanding between the two parties to ensure the supply of electricity in the Rokan Block. 

    However, if the process of acquiring Chevron's power plant which is operated by PT Mandau Cipta Tenaga Nusantara has not been completed by the time of transfer of management on August 9, 2021, Pertamina must take steps so that the production process is not disrupted.

"We prioritize production, so the best step is if the latest PLN data cannot be taken over on August 9, we will of course mirror the contract until PLN succeeds in completing the process that is currently happening," he said.

    With regard to the selling price of electricity, John said that the tariff that PLN will apply will not be much different from the current price. In fact, it is possible that PLN's price will be more competitive.

"Because it could be that the actual costs so far shouldn't have been that much."

Blogger Agus Purnomo in SKK Migas

    Seeing the problems in the Rokan Block, Deputy Head of SKK Migas Fatar Yani Abdurahman said the main priority during the transfer of management of the block was to maintain production. 

    According to him, the acquisition process takes a long time because it could be a year to two years. For this reason, there are a number of options so that the demand for electricity and steam in the Rokan Block can be guaranteed during the operator shift period.

    Several viable options include mirroring contracts or forming a consortium with the old operator. Apart from that, the state could also ask for these assets to be transferred to PT Pertamina Hulu Rokan (PHR) or a regionally owned business entity.

    Furthermore, Fatar added that as of March 2021, out of the target of drilling 192 wells included in Chevron's investment, the realization had reached 28 wells. Meanwhile, for the workover activities of the target of 10 activities, 3 workovers have been realized. Reflecting on the process of transferring management of the Mahakam Block, SKK Migas prepares anticipatory steps to maintain production rates in the Rokan Block.

    In this regard, SKK Migas Operations Deputy Julius Wiratno said that his party would be quicker to start drilling activities so that they could reduce the rate of decline in production when the confusion shifted to PT Pertamina Hulu Rokan (PHR). Development drilling is also ongoing in addition to the use of Enhanced Oil Recovery (EOR).

Bisnis Indonesia, Page-3, Friday,  April 9, 2021

Oil and Gas Glory Relay Burden

 

    Reflecting on the history of the Rokan Block, Indonesia may have to thank the four people sent by the Standard Oil Company of California (Socal) 97 years ago to undertake a geological expedition to the island of Sumatra. The expedition was led by E.M. Butterworth with the geological group of which R.N. Nelson, M.M. Orr, and E.R. Wall. Exploration was carried out in various areas, including Kalimantan, neighboring small islands, and Sumatra, particularly the Aceh region.

    The expedition is Socal's first attempt to acquire land to be used for oil exploration in the eastern hemisphere of the world. During the reign of the Dutch East Indies, to be precise in 1930, Socal together with the Netherlands formed the Nederlandsche Pacific Petroleum Maatschappij (NPPM) which was the forerunner of PT Chevron Pacific Indonesia (CPI). At that time, seismic exploration was still in its early stages. NPPM geologists and local workers walk along forest streams looking for exposed bedrock.

PT Chevron Pacific Indonesia (CPI)

    Six years later, to be precise, in 1936 Socal together with the Texas Oil Company (Texaco) founded the California Texas Petroleum Corporation or commonly known as Caltex. 

the Rokan Block by Chevron

    However, finding petroleum resources in the Rokan Block is not easy. It took 15 years from 1924 to 1941 to find the area of ​​crude oil reserves in the Duri Field. With billions of barrels of oil below ground level, Duri Field was the largest oil-deposited field in Southeast Asia until the discovery of the Minas Field in Southeast Asia in late 1944.

    The discovery also made Indonesia the largest crude oil producer in Southeast Asia at that time. The Pacific oil company Caltex or Caltex Pacific Oil Company (CPOC) then developed the giant Minas Field to reach 15,000 barrels of oil a day at the start of its production until 1952, the first shipment of oil from the Minas Field was made. After more than half a century, Chevron has produced more than 12 billion barrels of oil from onshore fields in Riau Province and offshore fields in East Kalimantan Province.

Chevron

PERTAMINA ERA

    Chevron's heyday in Indonesia by becoming the operator of the Rokan Block is coming to an end. In 2018, the government decided to provide management of the Rokan Block to PT Pertamina (Persero) starting in August 2021. The decision was taken after Pertamina's proposal was more attractive than the proposal Chevron offered to the government. 

    However, the government also emphasized that the transition period could be carried out as soon as possible. At that time, the Head of the Communication Bureau, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources (EMR/ESDM), Agung Pribadi said that after learning from the experience of the Mahakam Block transition, discussions and preparations for the transition to the Rokan Block were carried out earlier, but were still effective.

"Collaboration will be intensified starting 2019," he said.

    In the approved proposal, it was stated that Pertamina would give a signature bonus to the government worth the US $ 784 million. In addition, there is a firm work commitment of US $ 500 million. Pertamina also promised state revenue from the management of the Rokan Block to reach Rp. 850 trillion over the next 20 years.

    President Director of Pertamina Hulu Rokan R. P. Yudantoro said that his party had prepared a long-term program to maintain production and curb the rate of decline in oil. At least 44 development wells will be drilled in 2021 after the block is transferred to Pertamina. In addition, another 40 additional development wells are planned in accordance with discussions with SKK Migas.

    Chevron is still being asked by the government to play an active role in the transition process. As a result, the company agreed to continue investing in the Rokan Block during the transfer of management. 

the Rokan Block Working Area

    In December 2020, Chevron also started the first drilling in the Rokan Block after 2 years. In the latest development, Chevron Pacific Indonesia Corporate Communication Manager Sonitha Poernomo stated that he had started sharing Rokan Block data with Pertamina. 

Sonitha Poernomo

    Sonitha added that Chevron shared the data with PT Pertamina Hulu Rokan (PHR) as the next Rokan Block operator so that the transition process would run smoothly.

"We hope that the process of transferring the management of the Rokan Block can become one of the points of reference for the transfer of other oil and gas working areas in Indonesia," said Sonitha.

    From August 2020 to March 2021, Chevron has submitted all data included in the termination checklist to SKK Migas. The data includes those related to geology and geophysics, licensing, standard operating procedures (SOP), production facilities, land, goods and services contracts, human resources, and community development programs. 

    In the end, Chevron's trail in the Rokan Block, which is full of history, is only 4 months away. Furthermore, will Pertamina be able to continue the baton that has been held by Chevron for almost a century and keep the promises made previously? Only time will tell.

Bisnis Indonesia, Page-4, Monday,  March 29, 2021

The Rokan Block Work Area Use Electricity Supply from PLN

 

    PT Pertamina (Persero) through its subsidiary PT Pertamina Hulu Rokan (PHR) uses electricity supply from PT Perusahaan Listrik Negara (PLN) for oil and gas production operations in the Rokan Block Work Area. 

the Rokan Block Work Area

    Based on data, with average production in the range of 161 thousand barrels per day, currently, Working Area Rokan requires an electricity supply of up to 400 Megawatts (MW) and steam of 335 thousand standard barrels per day (MBSPD).

    To ensure the supply of electricity and steam in the operation of the Rokan Block Work Area, PLN and PHR have agreed and signed the Electricity and Steam Sale and Purchase Agreement (PJBTLU) on February 1, 2021. 

PT Pertamina Hulu Rokan (PHR)

    From the agreement, PLN will carry out two stages to ensure that the electricity supply in the operation of the Rokan Block Working Area is available safely. The first stage, the transition period by utilizing the existing power plant which will last for 3 years, starting on August 9, 2021. As for the second stage, the permanent service period will rely on PLN's generators and network which will start in 2024.

PT Perusahaan Listrik Negara (PLN)

"The synergy of the National Electricity BUMN/SOE will create more efficient operations because Pertamina believes that electricity supply from PLN is more reliable by building an interconnection network of systems and substations and can be backed up from other power plants, so as to increase the electricity supply capacity for the operational activities of the Rokan Block Work Area," said Pertamina's Senior Vice President for Corporate Communication & Investor Relations, Agus Suprijanto.

the Rokan Block Work Area By Chevron

    Agus Suprijanto added that Pertamina as the holding company will oversee the performance of PHR to ensure that the management transfer process of the Rokan WK runs well in order to maintain national oil and gas production, which is about 25% contributed from the production of the Rokan block Working Area. The production is obtained from five large fields, namely Duri, Minas, Bangko, Balam South, and Petapahan, which are spread across five districts in Riau Province.

"Considering that the Rokan block working area is considered mature, Pertamina will utilize the latest technology and has prepared a long-term program to curb the decline in oil production in the Rokan block working area," he said.

    Agus said several efforts were made to maintain the production of the Rokan block, including preparing and completing the licensing process, transferring workers, ensuring that the transfer of goods and services contracts and data transfer from existing operators went smoothly.

"Pertamina continues to build communication with the Government to ensure the smooth running of the PHR drilling program in the Rokan block working area throughout 2021, namely 84 wells consisting of 44 development wells and 40 additional wells," said Agus.

    Apart from drilling development wells, in the long term, other programs are also prepared in the form of Infill Drilling, exploration well drilling, workover/well intervention, optimization of waterflood and steam flood programs, and other programs to increase reserves.

"As a State-Owned Enterprise (BUMN) that carries the mandate of managing national oil and gas, Pertamina hopes for the support of the Government and, all stakeholders to ensure that the future of the Rokan block Works Area is more beneficial for the nation and state," said Agus.

Investor Daily, Page-10, Monday,  March 23, 2021

To Boost Oil and Gas Reserves, BP Adds Investment of US $ 4 Billion

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that BP Indonesia will increase its investment by the US $ 4 billion. One of these funds will be used to increase the oil and gas reserves of the Tangguh Liquefied Natural Gas / LNG) project.

Blogger Agus Purnomo in SKK Migas

    Head of SKK Migas Dwi Soetjipto said BP conveyed this additional investment plan when meeting SKK Migas management last week. BP plans to develop the Ubadari Field in the Tangguh LNG Project and work on the Carbon Capture, Utilization, and Storage (CCUS) Project.

BP

"We are happy because it means that the efforts made by SKK Migas and the government to increase investment have yielded results," he said.

    He explained that the Ubadari Field development was intended to increase the proven reserves of the Tangguh LNG Project. Gas production from this field will then be used to support the operations of the Tangguh Train 1, 2, and 3 LNG Train. If this additional gas production is realized, BP can expand its LNG market.

"The Ubadari field was discovered in 1997, and exploration drilling began in 2017," said Dwi.

    According to him, BP will also work on the CCUS project at Tangguh. CCUS is a technology that can capture carbon dioxide (CO2) which is released into the atmosphere so that it can reduce carbon emissions. The implementation of CCUS in the Tangguh Project will support Indonesia's efforts to reduce carbon emissions by 29% to 41% by 2030 under the Paris Agreement. Implementing CCUS will cut carbon emissions by around 45%.

the Tangguh Project Papua

"Apart from making a major contribution to the government's commitment to protecting the environment, [CCUS Project] will also increase production. Another advantage, this activity will also keep the Tangguh LNG Plant competitive, especially in dealing with buyer countries that are sensitive to environmental issues, "Dwi explained.

    To realize the investment plan, BP will immediately discuss with his party the technical and economic issues of the project. This discussion is expected to immediately agree on the preparation of the second Plan of Development / POD which will be used as the basis for the Ubadari Fieldwork.

    Dwi hopes that BP's steps to increase this investment will soon be followed by other contractors. Moreover, entering March 2021, world oil prices will improve at the level of US $ 60-70 per barrel. The increase in global oil prices was faster than analysts had predicted.

"The world oil price situation is recovering faster and in March 2021 it has even exceeded the average world oil price in 2019, it is hoped that this will encourage KKKS (cooperation contract contractors) to increase exploration activities outside of the agreed program in the work plan and budget ( work, program, and budget / WP & B) 2021, "said Dwi.

    Currently, BP is also working on Train-3 at the Tangguh LNG Plant, worth US $ 8.9 billion. Referring to SKK Migas data, up to the third quarter of last year, work on the project's onshore facilities had reached 88.27% and offshore facilities 98.27%. 

    The Tangguh Train-3 project is targeted to start operating in the last quarter of this year with an estimated peak gas production of 700 million standard cubic feet per day / MMscfd and 3 thousand barrels of oil per day (BPD). The completion of Train-3 will increase the capacity of the Tangguh LNG Plant to 11.4 million tons per year.

    Last year, BP managed to record gas production of 1,074 MMscfd and is targeted to increase to 1,200 MMscfd this year. BP holds a 37.16% stake in the Tangguh Project. Other Tangguh contract partners are MI Berau B.V. (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau / KG Wiriagar (10.00%), Indonesia Natural Gas Resources Muturi Inc. (7.35%), and Talisman Wiriagar Overseas Ltd. (3.06%).

Investor Daily, Page-10, Monday,  March 22, 2021

Kepodang Field supplies gas again

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the Kepodang Field, Muriah Block, returned to flow gas since last February. This gas supply is around 20 million standard cubic feet per day / Mmscfd. 

Blogger Agus Purnomo in SKK Migas

    SKK Migas Operations Deputy Julius Wiratno said that the gas supply from the Kepodang Field has been flowing since some time ago to PLTGU Tambaklorok owned by PT PLN (Persero).

Kepodang Field

"We have returned gas from the Kepodang Field some time ago at a rate of around 15-20 MMscfd," he said.

    This was also confirmed by the Regional Business Director for Java, Madura, and Bali PLN Haryanto WS.

"It is true, the gas from the Kepodang Field has been flowing again," he said.

    Kepodang Field, Blok Muriah started producing 56 MMscfd of gas for the first time at the end of August 2015. This gas supply is supplied by the Kalimantan-Java (Kalija) I pipeline managed by PT Kalimantan Jawa Gas (KJG) to the Tambak Lorok in Semarang Center Java Steam Gas Power Plant (PLTGU) belongs to PLN. 

Blogger Agus Purnomo In Petronas PC Ketapang II

    However, in July 2017, Petronas stated that the Kepodang Field was in force majeure because reserves did not match predictions.

    This field gas production was then stopped on September 23, 2019. PT Saka Energi Indonesia then received permission from SKK Migas to restart gas production in the Kepodang Field.

    In the future, his party cannot confirm whether the gas production at Kepodang Field can be increased. The reason is that the field development plan is still being discussed by Saka Energi.

"Regarding the next development plan, we are still evaluating it by considering Saka's potential," he said.

    Director of Strategy and Business Development, Syahrial Mukhtar, once revealed that the Kepodang Field has the potential to produce natural gas on average around 15 billion British thermal units per day / BBTUD for 37 months since the first gas flow (gas in).

    This supply is planned to be channeled to PLTGU Tambak Lorok in Semarang and industrial customers in Central Java with a total volume of around 10-20 Mmscfd. PGN has been involved in managing the Kepodang Field, Muriah Block from the start through Saka Energi Muriah Limited (SEML) with a 20% PI ownership.

Blogger Agus Purnomo in PGN Saka Energi Muriah Limited

    However, Petronas Carigali Muriah Limited (PCML) and SEML have signed a legal document for the transfer of Petronas' participating interest or Deed of Assignment (DoA) participating interest shares at the end of January. Thus, now SEML holds 100% participating rights in the Muriah Block.

Investor Daily, Page-9, Saturday,  March 20, 2021

Two Upstream Oil and Gas Projects Will Soon Onstream

    The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas stated that two projects will start producing in March and April 2021.

    Deputy for Operations of SKK Migas Julius Wiratno said that at the end of March 2021 there would be additional projects to complement domestic crude oil production and the Belato field.

Blogger Agus Purnomo In SKK Migas

    The project is being carried out by the cooperation contract contractor Belida Sele Raya Merangin Dua in Jambi, South Sumatra.

“One well added and a simple tie-in with a flowline. The production is around 500-800 barrels of oil per day, ”he said.

    He emphasized that there are projects that will increase domestic production very large. At the end of April 2021, SKK Migas targets the East Sepinggan Merakes project to be onstream. The project operated by Eni East Sepinggan ltd. It is targeted to increase domestic gas production by around 350 MMscfd-400 MMscfd. The project started in 2019 with an investment of US $ 1.3 billion.

Eni

    The project was delayed last year due to the Covid-19 pandemic. The main obstacle to working on the project was restrictions on the movement of goods and human resources. Later, the gas produced from the Merakes field will be flowed to the Bontang LNG refinery to fulfill existing market commitments.

the Merakes field

    Throughout 2021, SKK Migas targets as many as 12 upstream oil and gas projects to operate. That number is an increase of one project compared to last year's target of 11 projects.

"The project value is the US $ 354 million and the potential for additional oil production is 27,000 barrels of oil per day and gas 492 MMscfd," said Julius.

    PT Perusahaan Gas Negara Tbk. (PGN) will build a pipeline interconnection connecting the South Sumatra West Java transmission pipeline with a length of 1,000 km to the West Java Area transmission pipeline with a length of 525 km.

    PGN's Director of Infrastructure and Technology Redy Ferryanto said that through the integration of the transmission pipe, gas from the Sumbagtengsel gas field in the SSJW I-Bojonegara-Cikande-Bitung pipeline will be connected to Bitung Station on a WJA pipe with a pipe size of 24 inches.

    Work on the interconnection of the 1.4 km pipeline will start in March 2021 and is targeted to be completed in the fourth quarter of 2021.

"Bitung Station will supply gas from SSWJ with a maximum capacity of approximately 165 BBtud for the gas needs of Pupuk Kujang Cikampek [PKC] and the Balongan Refinery Unit, as well as a source of supply to anticipate the natural decline in gas supply in the western Java production field," he said.

 Bisnis Indonesia, Page-4, Friday,  March 19, 2021

Tangguh LNG Operators are 85% from Papua

 

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reiterated the Government's commitment that in 2029, as many as 85% of the operator workforce at Tangguh LNG will come from Papua. This was conveyed by the Minister of Energy and Mineral Resources while attending the Graduation Ceremony of the BP Berau Papuan Technician Apprentice Program, which was held virtually.

BP

    Arifin also expressed his appreciation to the Cooperation Contract Contractor (KKKS) BP Berau for the dedication given to carrying out the apprenticeship program, especially for these children from West Papua.

"It is hoped that the graduates will succeed in becoming part of the Tangguh LNG operation so that it will have an impact on the welfare of the family and also the communities around Tangguh LNG operations in particular and the people of West Papua in general," said Arifin.

Blogger Agus Purnomo in SKK Migas

    Also attending the event were Director General of Oil and Gas Tutuka Ariadji, Deputy Head of SKK Migas Fatar Yani, Deputy Governor of West Papua Mohamad Lakotani, Regent of Teluk Bintuni Petrus Kasihiw, and BP Regional President of Asia Pacific Nader Zaki. 

    With the increasing number of domestic children taking part in the oil and gas industry, the Minister hopes that it can have a real impact on improving the performance of the local oil and gas industry.

    Since this apprenticeship program began in 2016, to date, 71 participants have completed the apprenticeship program, of which 68 have worked at Tangguh LNG. The graduates in this third period have gone through a three-year training period. The knowledge and skills learned are not only beneficial in operating the Tangguh LNG plant, but also for various refineries in Indonesia and abroad.

"Through a three-year apprenticeship program, I hope that the participants will be able to meet the high standards required of a professional in the oil and gas industry," he added.

    The Minister of Energy and Mineral Resources also asked the graduates not to become complacent. On the other hand, they must continue to improve their respective abilities so that one day they will not only become operators but also become one of the leadership ranks or even become experts in various domestic and foreign oil and gas companies.

Investor Daily, Page-9, Thursday,  March 18, 2021

Gas Supply from Kepodang Field Has Been Flowing

 

    Gas distribution from Saka Energi Muriah Ltd (SEML) 's Kepodang Field to meet the gas needs of the Tambak Lorok Power Plant in Central Java Province has started in February 2021. Acting Head of Program and Communication Division of SKK Oil and Gas (SKK Migas) Susana Kurniasih revealed the distribution gas that was previously delayed has been resumed.

Blogger Agus Purnomo in SKK Migas

"The flow has started since February, to be precise February 19, 2021," said Susana.

    Susana continued that the gas distribution volume for the Tambak Lorok Semarang Gas Power Plant (PLTG) is around 8 billion British Thermal Units per Day (BBTUD) to 10 BBTUD. SKK Migas Operations Deputy Julius Wiratno confirmed that the distribution of gas from the Kepodang Field has been carried out.

"Everything is channeled to PLN according to production which is only about 20 MMSCFD," explained Julius Wiratno.

Blogger Agus Purnomo in Petronas Carigali 

    The Muriah Operatorship has shifted from Petronas Carigali Muriah Ltd (PCML) to Saka Energi Muriah Limited (SEML). After the legal document for the transfer of the participating interest or Deed of Assignment (DoA) was signed by the two contractors at the end of January last year. 

Kepodang Field

    Kepodang Field is part of the Muriah Work Area, which is located off the coast of East Java. This field started producing natural gas for the first time of 56 million cubic feet per day (MMSCFD) at the end of August 2015.

Kontan, Page-13, Wednesday,  March 17, 2021

Pertamina Remains Resilient

 

    PT Pertamina (Persero) became one of the few global oil and gas companies that were able to score a net profit throughout 2020. Last year, Pertamina was able to reverse its loss position in the first semester of 2020. Profits from the Indonesian government-owned oil company are said to reach Rp. 14 trillion at the end of the year.

Nicke Widyawati

"Efforts are being made to increase the productivity of upstream oil and gas and refineries, as well as efficiency in all fields, namely cutting the Opex by 30% and prioritizing the investment budget," said Pertamina President Director Nicke Widyawati.

Exxonmobil

    A number of global oil and gas companies have experienced different conditions. Over the past year, Shell recorded a loss of US $ 21.68 billion or around Rp 303 trillion, Exxonmobil US $ 22.44 billion or around Rp 314 trillion, Chevron US $ 5.5 billion or around Rp 77 trillion, BP US $ 20, 3 billion or around Rp. 284 trillion, and Petronas 21 billion ringgit or around Rp. 73.5 trillion.

BP

    Meanwhile, Petrobras earned a profit of US $ 1.1 billion or around Rp 15 trillion, while Pertamina is claimed to have earned a profit of US $ 1 billion or around Rp 14 trillion over the past year. 

    ExxonMobil CEO Darren Woods said last year, the company was facing market conditions that were more challenging than they had experienced before. The effects of the Covid-19 pandemic will significantly affect performance results in 2020.

"We are responding decisively to fixing our fee structure permanently," he said.

Chevron

    Chevron CEO Mike Wirth said that when market conditions deteriorated last year, his side quickly cut capital spending by 35% from 2019 and lowered operating costs. In 2020, Chevron will also increase renewable energy production and increase investment in low-carbon technology. 

    Energy Watch Executive Director Mamit Setiawan assessed that last year was a grim period for the global oil and gas industry, including at home, due to pressure from the Covid-19 pandemic.

Bisnis Indonesia, Page-4, Wednesday,  March 17, 2021

Chevron Delivers Rokan Block Data to the Government

 

    Ahead of the transfer of management, PT Chevron Pacific Indonesia (CPI) as the current operator of the Rokan Block has completed a large number of asset data collection and submitted production, exploration, and operational activity support data to the Government of Indonesia through the Special Task Force for Upstream Oil and Gas Business Activities. (SKK Migas). Chevron has also started sharing this data with PT Pertamina Hulu Rokan (PHR) as the next Rokan Block operator.

PT Chevron Pacific Indonesia (CPI)

"Our company is committed to carrying out the transition process of the Rokan Block in a safe, reliable, and smooth manner so that this block continues to provide optimal benefits for the country and the people of Indonesia. 

    In the future, we hope that the process of transferring the management of the Rokan Block can become one of the points of reference for the transfer of other oil and gas working areas in Indonesia, "said PT CPI's Corporate Communication Manager Sonitha Poernomo.

Sonitha Poernomo

    From August 2020 until now, PT CPI has submitted all data included in the termination checklist to SKK Migas. The data includes those related to geology and geophysics, licensing, standard operating procedures (SOP), production facilities, land, goods and services contracts, human resources, and community development programs. 

Blogger Agus Purnomo in SKK Migas

    Chevron has completed submitting the data ahead of schedule to support a smooth transition process. Chevron also coordinates intensively with SKK Migas and PHR to discuss various technical aspects of the transition process. Chevron is also trying to maintain the Rokan Block oil and gas production.

"Last year we were still able to meet the production target set by the Government," said Sonitha.

    In addition, Chevron has also started an incremental drilling program at the end of December 2020 in accordance with the Heads of Agreement (HoA) with SKK Migas which was signed in September last year.

the Rokan Block

"The HOA is critical to slowing down the rate of decline in natural production before the end of the Rokan Block management transfer period and will continue to meet Indonesia's energy needs," said Sonitha.

    President Director of PT Pertamina Hulu Energi (PHE) Budiman Parhusip is committed to transferring employment to Chevron workers in the Rokan Block with conditions that have been mutually agreed upon with related parties. In addition, his party has also collaborated with several universities in Riau, including for Social and Environmental Responsibility (TJSL) activities.

    The TJSL program will be prioritized to improve the independence of the Riau people in the fields of education, health, economy, and environmental preservation. Planning for the TJSL program also involves local governments.

"As for the Local Business Development (LBD) program which is currently being built and implemented by the CPI, it will first be discussed further.

    Coordination with CPI is needed to obtain 260 LDB contract schemes and data before the socialization is carried out, "said Budiman.

Investor Daily, Page-10, Tuesday,  March 16, 2021