113 Rokan Block Licensing Completion Needs Local Government Support

 

    PT Pertamina Hulu Rokan (PHR) must complete 113 permits as part of the transfer of management of the Rokan Block from PT Chevron Pacific Indonesia (CPI). Support from the local government is needed to complete this permit before the transfer of management occurs on August 9, 2021.

PT Chevron Pacific Indonesia

    Head of the Formality Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Didik Sasono Setyadi expects full support from the local government in the process of licensing over the management of the Rokan Block. 

Blogger Agus Purnomo in SKK Migas

    This is because if the transition to management and operation of this block goes well, it will have a positive impact, especially for state finances. He hopes that the management transfer permit process will run smoothly and operations will not be disrupted.

"The smooth operation of the Rokan is very beneficial for state finances. We all as government officials have the responsibility to carry out the interests of the state, "he said.

Temporary officials

Head of SKK Migas Representative of North Sumatra, Haryanto Syafri, added that all parties related to the transfer of management permit process must have the same perception. This is because operations in the Rokan Block cannot stop.

"And we will continue to comply with all rules and regulations," he said.

    Permits processing will begin to be processed by fulfilling all administrative requirements and are expected to take effect starting August 9, 2021. The permits currently managed by Chevon Pacific Indonesia can still be used until their expiry date before being renewed by Pertamina Hulu Rokan. 

    Head of the Riau Province Investment and One-Stop Integrated Service (DPMPTSP) Helmi D revealed that the Riau Provincial Government (Pemprov) strongly supports and appreciates PHR activities. On the other hand, PHR is asked to continue to communicate effectively in the context of harmonizing licensing.

"So we, together with the district and city governments, will accelerate how this function transfer and licensing changes can be carried out properly, so that later on August 9 there will be no obstacles," said Helmi.

    Meanwhile, Regional Secretary Kampar Yusri will carry out parallelization of licensing with the Riau Provincial Government.

"Because the Provincial Government and the Kampar Regency Government are one roof, if the province has given a sign, the regency will just follow suit," he said.

Investor Daily, Page-10, Monday,  March 8, 2021

Pertamina Imports LPG and Sulfur from UAE Oil and Gas Companies

 

    PT Pertamina Patra Niaga, the commercial and commercial subholding of PT Pertamina (Persero), has signed a purchase agreement for Liquefied Petroleum Gas / LPG and sulfur with the Abu Dhabi National Oil Company (ADNOC).

ADNOC

    The signing was carried out by Pertamina Vice President Trading and Other Business Patra Niaga Maya Kusmaya with ADNOC Senior President International Relations Salem Raheb Al Meheiri during the Indonesia-Emirates Amazing Week (IAEW) Business Forum last weekend. 

    The signing was witnessed directly by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan and the United Arab Emirates Minister of Energy and Infrastructure Suhail Al Mazroeui.

Suhail Al Mazroeui

    Suhail said that the LPG and sulfur supply contract to Pertamina is valid for four years. The contract value reaches US $ 500 million per year or a total of US $ 2-2.2 billion depending on the price. This contract can also be extended. In fact, the opportunity for other deals is also open.

"We will always be committed and support Indonesia and all its requirements. If we do have supplies, Indonesia will always be a priority, ”he stressed.

    Pertamina's Central Marketing and Commerce Director Patra Niaga Hasto Wibowo said this cooperation ensures the safety of the national LPG supply which is projected to continue to increase every year. In the next year, the national demand for LPG is estimated at 8.3 million tons and will increase to 9.12 million tons in 2023 and then reach 10.01 million tons in 2024.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. We hope that with this cooperation Pertamina can expand supply sources and maintain supply stability," he said.

    This agreement can be extended annually with still being evaluated before the agreement ends. This cooperation is one of the procurement strategies for bundling LPG and petrochemical products that are purchased directly from producers.

"It is hoped that this collaboration can create long-term collaboration opportunities for LPG and petrochemical products by of course still paying attention to developments in the petrochemical business and referring to the national energy mix policy as stated in the RUEN (National Energy General Plan)," added Hasto.

Investor Daily, Page-10, Monday,  March 8, 2021

Pertamina Partners with ADNOC to Ensure LPG Supply

 

    Pertamina signed the LPG and Sulfur Sales Confirmation Agreement which ensures Pertamina gets a supply of LPG and Sulfur from the Abu Dhabi National Oil Company (ADNOC). 

    The signing was carried out by Vice President Trading & Other Business Sub Holding Commercial & Trading (SH C&T) PT Pertamina (Persero), Maya Kusmaya with ADNOC Senior President International Relations, Salem Al Meheiri in the Indonesia Business Forum - Emirates Amazing Week (IAEW) activity and witnessed directly by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan and the Minister of Energy and Infrastructure of the United Arab Emirates (PEA), Suhail Al Mazroeui.

    National LPG demand in 2022 is estimated to reach 8.30 million tons, increasing to 9.12 million tons in 2023, and 10.01 million tons in 2024. Director of Central Marketing and Commerce PT Pertamina Patra Niaga, SH C and T PT Pertamina (Persero), On the same occasion, Hasto Wibowo said that this collaboration ensures the safety of the national LPG supply which is projected to continue to increase every year.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. We hope that with this cooperation Pertamina can expand supply sources and maintain supply stability," said Hasto.

    Hasto added, it is possible for this agreement to be extended every year, while still being evaluated before the agreement ends.

"This collaboration is one of the procurement strategies for bundling LPG and petrochemical products that are purchased directly from the producer. It is hoped that this collaboration can create long-term collaboration opportunities for LPG and petrochemical products by of course still paying attention to developments in the petrochemical business and referring to the national energy mix policy as stated in the RUEN, "added Hasto.

ADNOC

    Meanwhile, ADNOC Senior President International Relations, Salem Raheb Al Meheiri, welcomed the strategic partnership with Pertamina.

"As one of the largest producers of LPG, crude oil, and petrochemicals in the world, ADNOC guarantees that it will supply products reliably to Indonesia," he explained.

    The Indonesian Ambassador to PEA, Husin Bagis also positively welcomed the signing by Pertamina and ADNOC.

"From the Embassy of the Republic of Indonesia, we hope that the realization of this cooperation in the field of LPG and Sulfur supply can open up opportunities for other collaborations such as petrochemicals and other downstream industries in the future," he concluded.

Duta Masyarakat, Page-6, Monday,  March 8, 2021

Ensuring LPG Supply, Pertamina Collaborates with ADNOC

 

    Pertamina ensures that it gets LPG and Sulfur supplies from the Abu Dhabi National Oil Company (ADNOC) after Pertamina signs the LPG and Sulfur Sales Confirmation Agreement, the signing of the collaboration between the Vice President Trading & Other Business Sub Holding Commercial & Trading (SH C&T) PT Pertamina (Persero), Maya Kusmaya with ADNOC Senior President International Relations, Salem Al Meheiri in the Business Forum Indonesia - Emirates Amazing Week (IAEW), witnessed directly by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan and the United Arab Emirates (PEA) Minister of Energy and Infrastructure ), Suhail Al Mazroeui.

ADNOC

    Meanwhile, the national demand for LPG in 2022 is estimated to reach 8.30 million tons, increasing to 9.12 million tons in 2023 and 10.01 million tons in 2024. 

    Director of Central Marketing & Commerce PT Pertamina Patra Niaga, SH C&T PT Pertamina (Persero), Hasto Wibowo revealed that this collaboration ensures the safety of the national LPG supply which is projected to continue to increase every year.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. Hopefully, with this cooperation Pertamina can expand supply sources and maintain supply stability," said Hasto.

Bhirawa, Page-10, Monday, March 8, 2021

Pertamina is optimistic that the Rokan Block will boost Riau's economy

 

    PT Pertamina Hulu Rokan (PHR) is committed to maximizing the potential of the Rokan Block not only to supply national needs but also to boost economic development in Riau. After taking over management from PT Chevron Pacific Indonesia (CPI), PHR projects that the block's oil production will reach 1.5 billion barrels.

PT Chevron Pacific Indonesia (CPI)

    PHR Upstream Project Leader Feri Sri Wibowo said that his party has four commitments in working on the Rokan Block. First, contribute from the results of the Block Rokan to Regional Revenue Sharing. Second, regional-owned enterprises are entitled to a 10% participating interest (PI) in the Rokan Block based on the Decree of the Minister of Energy and Mineral Resources 1923 K / 10 / MEM / 2018.

the Rokan Block

    Third, the Rokan Block operational activities will involve the participation of local companies, both in the form of goods, services, and labor, so that it will drive the economy of the Riau people.

"Finally, corporate social responsibility activities will synergize with local governments so that they are right on target and according to needs," he said.

    The Rokan Block has a strategic role in the country's oil and gas industry by supporting oil production of 24% of national production. To that end, PHR has planned a number of new production programs, such as infill drilling, workover and well intervention, exploration, optimization of water injection (waterflood) and steam flood, and others.

"The target is that the Rokan Block can produce a total of 1.5 billion barrels in two decades," said Feri.

    PHR signed a production sharing contract / PSC Block Rokan and approved by the Minister of Energy and Mineral Resources (ESDM) on May 9, 2019. The term of this production sharing contract is 20 years in 2021-2041. The contract will be effective starting August 9, 2021, using a gross split scheme. 

    Currently, the process of transferring management of the Rokan Block from CPI to PHR is taking place according to its stages. This transition will take up to 23 weeks. General Manager General Affairs and Operations Support of PT CPI Sukamto Tamrin said the transition process had been carried out since 2019.

"We really want the transition process to take place smoothly, orderly, and safely," said Sukamto.

    PHR has a transition program in nine main areas to ensure the continuity of all operations and routine activities of the Rokan Block when it becomes an operator. In addition, during the transition period, CPI and PHR have planned and compiled a Well drilling program this year. This step is one of the efforts to prevent the decline in Rokan Block oil production.

    Pertamina has the potential to drill 84 wells during the August-December period this year. For this reason, discussions are currently underway between PHR and CPI regarding the drilling execution by the CPI until August 8 and the PHR drilling program starting from August 9. 

    In addition to drilling, PHR and Chevron also discussed electricity and steam supply, contracts and SCM, information technology and Petrotechnics, data transfer, human capital, standard operating procedures (SOP) and, licensing chemical Enhanced Oil Recovery/chemical EOR, and environment and abandonment restoration/ASR. 

    To support the transfer of the management process, PHR and CPI also coordinated with the Head of Riau Regional Police, Inspector General Agung Setya Imam Effendi. Setya asked all parties not to get caught up in issues that could harm the state.

"The things that arise from this transfer of management process should be examined first. Hopefully, oil production will be maintained, theft of production facilities will decrease, and illegal tapping will be 0%, ”he said.

    The Rokan Block has five large fields, namely Duri, Minas, Bangko, Balam South, and Petapahan, which are spread across five districts in Riau Province. To note, during its heyday in 1973, the Rokan Block oil production almost reached 1 million barrels per day (BPD). However, the production of this oil and gas block continues to decline over time.

Blogger Agus Purnomo in SKK Migas

    In 2011, the Rokan Block still produced around 356.98 thousand BPD of oil or contributed 39.56% of the total national oil production at that time of 902.35 BPD. However, referring to SKK Migas data, last year, oil lifting in this block was only 174,424 BPD or 24.62% of the total national oil lifting of 708,488 BPD. In 2021, the Rokan Block is targeted to produce oil of 165,002 BPD.

Investor Daily, Page-10, Thursday, March 4, 2021

Again, Oil Reserves Found in Madura

 

       Petronas, through its company, PC North Madura II, managed to find oil reserves through the Hidayah-1 Exploration well in the North Madura II Working Area, which is located off the coast of East Java, Indonesia. The discovery was a result of the Hidayah-1 Exploration well drilling started on January 7, 2021, and has reached a depth of 2,739 meters.

Emeliana Rice-Oxley

    Vice President of Exploration, Upstream Petronas Emeliana Rice-Oxley said, Hidayah-1 well managed to find a reservoir layer containing good quality oil in the Ngimbang Carbonate Formation and had a flow test result of 2,100 barrels of oil per day (BOPD) with high quality also good.

"The discovery of the Hidayah-1 Exploration well is a major historical landmark for the North Madura II Work Area as evidenced by the potential for an oil-filled reservoir layer in the area," said Emeliana Rice-Oxley.

"This also encourages the development of the large promising potential of Exploration in Indonesia," said Emeliana Rice-Oxley.

Blogger Agus Purnomo In SKK Migas

    According to the plan, the results of the Hidayah-1 Exploration well drilling will be further evaluated to determine the potential size of these reserves. Meanwhile, Deputy for Planning of SKK Migas Jaffee A Suardin said that currently, his party is conducting a final analysis related to determining the number of resources.

"Of course, this discovery in the future will provide benefits for local governments and local communities after the potential for oil can be produced," he said.

Surya, Page-7, Friday, Feb 26, 2021

PGN Ready to Supply Gas for Kendal Industrial Estate

 

    PT Perusahaan Gas Negara Tbk (PGN) is ready to develop gas infrastructure and services to meet the needs of the Kendal Industrial Estate (KIK) in Central Java. This step is to foster economic activity through new industries in the region.

    PGN's Director of Infrastructure and Technology Redy Ferryanto explained, since 2016, he has been studying gas demand in the KIK area. Referring to the latest developments, it is known that the demand for gas in the region is quite large. PGN continues to coordinate intensively with KIK regarding the total potential gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

PT Pertamina EP Cepu (PEPC)

    The completion of the Gresik-Semarang transmission pipeline being worked on by PT Pertamina Gas (Pertagas) will provide certainty for gas supply in Central Java. This 267 kilometer (km) pipeline has a capacity of up to 400 million standard cubic feet per day / MMScfd. The gas supply will come from the Jambaran-Tiung Biru Project which is managed by PT Pertamina EP Cepu (PEPC). Later, his party will supply gas to KIK with the distribution network that is owned by the company.

the Jambaran-Tiung Biru Project

"As for the natural gas trade besides pipelines, such as CNG (compressed natural gas) and LNG (liquefied natural gas) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas)," he said. Redy.

    He hopes that the optimization of gas distribution infrastructure to meet industrial energy needs can have a positive impact on the growth of KIK and the surrounding community for the progress of the economy of Central Java.

"The KIK that the government has built is one of the potential areas that can grow faster with the availability of natural gas energy to accelerate regional economic development," said Redy.

    KIK has been designated as a Special Economic Zone (KEK). This area is being worked on by a joint venture company between PT Jababeka Tbk and Sembawang Corporation. Until now, there have been 64 companies from 8 countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia. The growth of the industrial center in KIK is expected to be able to generate Micro, Small, and Medium Enterprises (MSMEs) and open new jobs for the surrounding community.

Investor Daily, Page-10, Friday, Feb 26, 2021

Petronas Finds New Oil Reserves in Madura

 

    Petronas' subsidiary, PC North Madura II Ltd., managed to find oil reserves through the Hidayah-1 Exploration well in the North Madura II Working Area, which is located off the coast of East Java, Indonesia. 

Blogger Agus Purnomo in Petronas PC Ketapang II

    PC North Madura II Ltd. is the sole operator with a participating interest of 100 percent in the North Madura II Working Area. The drilling of the Hidayah-1 exploration well began on January 7, 2021, and has reached a depth of 2,739 meters.

    The Hidayah-1 well succeeded in finding a reservoir layer containing oil with good reservoir quality in the Ngimbang carbonate formation and having a flow test result of 2,100 barrels of oil per day (BOPD) with good oil quality.

"The results of the Hidayah-1 exploration well drilling will be further evaluated to determine the potential size of these reserves," said Emeliana Rice-Oxley, Petronas Vice President of Exploration, Upstream.

Emeliana Rice-Oxley

    She emphasized that the discovery of the Hidayah-1 Exploration well is a major proof of success for the North Madura II Work Area, which is proven by the potential for a reservoir layer containing oil in the area.

"This also encourages the development of promising exploration potential in Indonesia. We will always collaborate with the Indonesian government to realize clean and sustainable energy for Indonesia," She said.

                                Blogger Agus Purnomo in SKK Migas

"We are grateful for the great support provided by SKK Migas and the Sampang district government in the successful drilling of the Hidayah-1 exploration well. This discovery is evidence of Petronas' commitment to continuing the development of the upstream oil and gas business in Indonesia," added the President of PC North Madura II Ltd. Mohd Nazlee Rasol.

    Petronas is also the operator of the Bukit Tua Iapangan off the coast of East Java and is a partner of six other Cooperation Contractors located on the mainland and off the coast of Sumatra, Natuna, East Java, and Kalimantan.

Harian Bangsa, Page-4, Friday, Feb 26, 2021

Chevron Drills 12 Wells in the Rokan Block

 

    PT Chevron Pacific Indonesia has only drilled 12 wells in the Rokan Block, even though the transfer of management to PT Pertamina (Persero) only has 6 months left. Julius Wiratno, Deputy for Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), said that the number of wells drilled was an activity undertaken by Chevron since last year. He revealed that the drilling of the Rokan Block well had several problems.

the Rokan Block

“The condition of the field after the rain is very challenging and we haven't drilled in the Rokan block for several years. "Procurement of goods and materials for the time being that is running out is also a challenge in itself," he said.

Blogger Agus Purnomo in SKK Migas

    Meanwhile, SKK Migas has prepared steps so that drilling activities in the Rokan Block to hold down the rate of decline in production during the transition period can continue. Julius said that his party will soon be aggressive in looking for materials for drilling the well. According to Julius, his party will try to drill the Rokan Block as much as possible with the target of still being able to drill more than 100 wells by August 2021.

"In the process, well the hard looks are a bit difficult to find," he said.

    The drilling of the Rokan Block well is a commitment in the Head Of Agreement (HoA) on September 28, 2020, for investment during the transition period in the Rokan Block. Chevron will invest the US $ 154 million for drilling activities. 

    In 2021, Chevron will drill 101 wells with an estimated investment of US $ 143 million to increase production by 5,000 barrels of oil per day. If Chevron is unable to complete the Well drilling according to the target, then the work will be continued by Pertamina with an investment from Chevron.

    The teaching staff of Trisaksi University, Pro Agung Rakhmanto, is of the opinion that the realization of drilling 12 wells can be said to be very good progress during the transition period. This is because, based on experience with transitions in other oil and gas blocks, the transition process often does not take place smoothly. 

    As a result, activities, and efforts to maintain production only started when the transfer of management was actually in a new contract position. According to him, SKK Migas, Chevron, and Pertamina just need to continue the transition process, which is already progressing well.

"Do not have too many expectations that are not well-founded, because after all there is a consequence of slowing down operating activities and then a decline in production from a decision to transfer the management of an already operating oil and gas block to a new operator," he said.

    Meanwhile, the investment required to achieve and maintain production of 1 million barrels of oil per day and 12,000 MMscfd of gas is estimated to reach the US $ 2S0 billion in the next 10 years. Head of the SKK Migas Goods and Services Procurement Management Division Erwin Suryadi said this year, the list of procurement of goods and services that had been set was 1,482 packages with a total project value of US $ 6.05 billion.

"Based on this investment, it requires a system of procurement of goods and services that is effective, efficient, and capable of being a strong leverage to move the upstream oil and gas industry," he said.

    He said SKK Migas is working with the Indonesian Petroleum Association (IPA) to accelerate the completion of the tender process and strengthen synergy and collaboration with all stakeholders.

"The IPA Supply Chain Management Committee is expected to be able to bridge operational activities and fulfillment of the Domestic Component Level (DCL/TKDN)," he explained.

Bisnis Indonesia, Page-20, Friday, Feb 26, 2021

PGN Builds Gas Infrastructure in Kendal

 

    PT Perusahaan Gas Negara (Persero) Tbk is the sub-holding gas of PT Pertamina (Persero) supports the provision of infrastructure and natural gas distribution services in an effort to grow economic activity through new industries in the Central Java region. 

    One of the areas served by PGN is the Kendal Industrial Estate (KIK). KIK is a new industrial area that is the readiest in Indonesia with all the facilities. However, KIK is still having problems with certainty about the availability of natural gas which has made investors delay investing in this area.

    PGN's Director of Infrastructure and Technology, Redy Ferryanto, said that PGN has conducted a study on KIK, especially regarding gas demand since 2016. The latest developments show that gas demand in the region is very large. PGN continues to coordinate intensively with KIK regarding the potential total gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

    Redy said, PGN will strive to serve the natural gas trade through PGN's pipeline distribution network infrastructure in the Sales & Operation Region III (SOR III), which includes Central Java, East Java, and East Indonesia. Meanwhile, natural gas trading other than pipelines (CNG and LNG) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas).

    In line with the completion of the construction of the Gresik-Semarang gas transmission pipeline by PT Pertamina Gas (Pertagas), Redy continued, PGN is targeting to be able to realize the certainty of distribution of natural gas supply in Central Java. 

    The 267 kilometers (km) long transmission pipeline network has a maximum gas flow capacity of around 400 million standard cubic feet per day (MMSCFD). The potential source of supply that will be supplied by the Gresik-Semarang Pipe comes from Jambaran Tiung Biru (JTB) owned by PT Pertamina EP Cepu (PEPC).

Jambaran Tiung Biru (JTB)

"Optimizing natural gas distribution infrastructure to meet energy needs for the industry is expected to have a positive impact on the growth of KIK and the surrounding community for the progress of the Central Java economy," said Redy.

    KIK has been designated as a special economic zone (KEK) as a result of a joint venture scheme collaboration between PT Jababeka Tbk and Sembawang Corporation. KIK was inaugurated by President Joko Widodo and Singaporean Prime Minister Lee Hsien Loong. To date, there are 64 companies from eight countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia in this ABTB product.

    The development of the industrial center in KIK is expected to be able to generate micro, small and medium enterprises (MSMEs) as well as open new jobs for the surrounding community. 

    According to Redy, the development of natural gas distribution infrastructure in Central Java is very challenging for PGN. Therefore, cooperation and support from the local government and various stakeholders are also very important for the development of natural gas infrastructure in Central Java.

Republika, Page-9, Thusday, Feb 25, 2021