The Jambaran-Tiung Biru Project Must Be Completed This Year

 

    The government is encouraging the development of the Jambaran-Tiung Biru (JTB) Project to operate by the end of this year. This is because the project with an estimated production of 192 million standard cubic feet per day / MMscfd is already awaiting its gas supply. 

ESDM

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the Covid-19 pandemic caused obstacles in the completion of the JTB Project. However, given the importance of this project, his party hopes that this project can still be completed this year.

the JTB Project

"We have asked the management to catch up again so that this project can produce gas at the end of the year. We really hope that gas from JTB can be produced immediately, "he said.

    As scheduled, the projects that are included in the list of National Strategic Projects (PSN) are supposed to start operating in the third quarter of this year. However, the pandemic hindered the completion of the project.

PT Pertamina EP Cepu (PEPC)

    President Director of PT Pertamina EP Cepu (PEPC) Awang Lazuardi explained, even though the pandemic is still ongoing, his party continues to catch up with certain sectors by achieving more progress in other sectors. This is so that the overall project is still on target. Until now, the work on the JTB Project has reached more than 89%.

"Overall we still have a significant difference in progress, although there are some parts that have not arrived. However, we are optimistic that the on stream target will be achieved according to schedule, "he said.

    Currently, several production facilities at the JTB Project are increasingly complete. Some of them include the installation of high-tech processing pipes and tubes, to other supporting facilities such as dormitory buildings. There were obstacles to the process of fabricating tools and sending them from abroad.

    To overcome this, Pertamina EP Cepu (PEPC) increases the number of workers to complete jobs whose components are already available in the country. Previously, Deputy for Finance and Monetization of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Arief S Handoko said the JTB Project is one of three projects that will provide additional gas supply, mainly in East Java. This project is even the project that will generate the largest additional supply, reaching 192 MMscfd.

Blogger Agus Purnomo in SKK Migas

"The largest additional supply will be obtained from the JTB Project which we estimate will be on stream in the fourth quarter of 2021. This project can supply gas amounting to 192 MMscfd, which will be supplied not only to East Java but also to Central Java, "said Arief.

    The JTB project includes the construction of a gas processing facility / GPF and its supporting facilities, as well as the drilling of six development wells and one plug and abandonment well. With the optimization of the GPF design, the salable gas production from this project can be increased from 172 MMscfd to 192 MMscfd.

    This gas production will be channeled through the Gresik-Semarang transmission pipe owned by PT Pertamina Gas (Pertagas). Pertamina has signed the Jambaran-Tiung Biru gas sale and purchases agreement (PJBG) with PT PLN (Persero). Gas from the Jambaran-Tiung Biru project will be supplied to PLN by 100 MMscfd and the remaining 72 MMscfd for industries in Central and East Java.

    To date, the costs incurred to build the GPF are recorded at the US $ 974.44 million or 73.4% of the total approved budget (authorization for expenditure / AFE) of US $ 1.32 billion. Meanwhile, the number of workers involved in working on this project was 7,842 people.

Investor Daily, Page-10, Saturday, April 24, 2021

Pertamina Shipping is Targeted to Succeed in ASEAN

 

    One of the government's big agendas is to strengthen the logistics system. To strengthen Indonesia's domestic logistics system that can be seen at the global level is to develop State-Owned Enterprises (SOE/BUMN) in the shipping and logistics sectors. 

PT Pertamina (Persero)

    Through the sub-holding of PT Pertamina (Persero), namely PT Pertamina International Shipping (PIS), the government is trying to revive the world of shipping and logistics. PIS targets to become a global integrated logistic and marine solution company.

"PIS is expected to become an integrated and marine logistics solution company that is respected in the ASEAN (Southeast Asia) region," said Deputy Minister of BUMN I Pahala Mansury.

    Pahala said Pertamina had the strength in this matter because currently PIS had a large number of ships and had very reliable specifications. The government is targeting PIS to have a stronger infrastructure in Southeast Asia. 

    Pahala said that the government has an agenda to find investors to strengthen the PIS business in the future. He said the efforts that would be made were for example to cooperate with the Indonesia Investment Authority (INA) or other strategic partners.

"The government is targeting cooperation with INA or other strategic partners that can be obtained through INA and after that, the company will conduct an initial public offering (IPO)," said Pahala.

    After sailing since 9 February 2021 from JMU Ariake Shipyard, Japan, PIS's giant container ship or Very Large Crude Carrier (VLCC) has arrived in Indonesia and is ready to support the distribution of national energy supplies. This readiness was marked by the inauguration of BUMN Minister Erick Thohir on a ship that was berthed in Semangka Bay, Kota Agung, Tanggamus Regency, Lampung.

Erick Thohir

    Erick conveyed his appreciation for Pertamina's efforts in transforming and presenting value creation so that it could become a global company. He ensured that the government fully supports PIS's steps to become an integrated logistics and marine solution company that plays at the global level.

"Pertamina must return to its heyday in the 70s, become a global player and be ready to compete based on good corporate governance," said Erick.

Nicke Widyawati

    Pertamina President Director Nicke Widyawati said the investment made by presenting two ships, namely Pertamina Pride and Pertamina Prime, is in line with shareholders' directions to go global. Nicke explained that the two ships would serve foreign markets and transport crude from Aramco to Indonesia.

Saudi Aramco

"With our own ships, we have more flexibility because Pertamina has foreign reserves and production of 110 thousand barrels per day," said Nicke.

    PIS President Director Erry Widiastono explained that PIS continues to strive to meet energy needs by continuously creating various innovations as a consumer-oriented shipping company. One of them is presenting the giant tanker VLCC PERTAMINA PRIDE with a capacity of 2 million barrels and has been built at the Japan Marine United (JMU) Shipyard since 2018.

"The PERTAMINA PRIDE VLCC aims to simplify the flow of energy distribution and secure the supply of captive crude needs to Pertamina's refineries on a FOB Ras Tanura-Cilacap basis more efficiently so that it is ready to become the lifeblood of energy distribution for the country," said Ery.

Republika, Page-16, Monday, April 19, 2021

East Java Potentially Excess Gas Supply

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that East Java will have an excess gas supply of up to 200 million standard cubic feet per day / MMscfd in 2022-2025. This is after the completion of a number of gas projects in the region at the end of this year.

Blogger Agus Purnomo in SKK Migas

    Deputy of Finance and Monetization of SKK Migas, Arief S Handoko, said that at least three oil and gas projects in East Java will be completed by the end of this year, namely the Jambaran-Tiung Biru (JTB) Project, Sidayu and Bukit Tua Phase 2B owned by Petronas. 

Blogger Agus Purnomo in Petronas PC Ketapang II

    The three of them will increase the gas supply in East Java. With this potential gas supply, SKK Migas hopes that the gas user industry can optimize business deals fairly and stick to the provisions in the Minister of Energy and Mineral Resources Regulation Number 8 of 2020 and Minister of Energy and Mineral Resources Decree Number 89 of 2020 which regulates gas prices for certain industries.

"While gas prices from upstream are very economical, we hope that the government can encourage the growth of the gas user industry in East Java and Central Java so that this gas potential can be purchased so that it can drive the regional economy and create a bigger multiplier effect," said Arief.

    Referring to SKK Migas data, the additional supply from the JambaranTiung Biru, Sidayu, and Bukit Tua Phase 2B projects is estimated at 226.2 MMscfd. The Jambaran-Tiung Biru Field Unitization Project undertaken by PT Pertamina EP Cepu (PEPC) will produce gas up to 192 MMscfd. 

The Jambaran-Tiung Biru Field

    Meanwhile, the additional supply from the Sidayu Project is 4.2 MMscfd for gas and 7 thousand barrels per day (bpd) for oil, and Bukit Tua Phase 2B 30 MMscfd for gas and 12,500 bpd for oil.

"The largest additional supply will be obtained from the JTB Project which we estimate will be on stream in the fourth quarter of 2021. This project can supply gas amounting to 192 MMscfd, which will be supplied not only to East Java but also to Central Java, "said Arief.

    He explained that the Jambaran-Tiung Biru Project, which was included in the list of National Strategic Projects (PSN), was scheduled to start production last year. However, the Covid-19 pandemic last year caused delays in completing this project this year. Apart from the three projects, previously there was a West Pangkah Project operating.

"At the beginning of the year there was also the West Pangkah Petronas Project which increased gas supply from the Pangkah Block, so it can be said that the amount of gas supply in East Java for 2021 will be fulfilled," he explained.

    The West Pangkah project produced 23 MMscfd of gas and 2,200 bpd of oil. To increase the utilization of this gas supply, Arief continued, his party is also encouraging the completion of the Cirebon-Semarang pipeline in order to develop the gas market in Central Java. The reason is, currently, a Gresik-Semarang pipeline has been built that can carry gas from East Java to Central Java.

"In the future, we hope that the Cirebon-Semarang transmission pipeline can be built, so that with this gas pipeline, the excess gas supply in East Java will be channeled to support the fulfillment of gas needs for industries in Central Java," said Arief.

    In fact, referring to the Gas Balance, which was compiled in 2018, East Java is one of the areas projected to have a gas supply deficit. This projection refers to the second scenario in the balance sheet which estimates gas demand based on the previous year's consumption realization and economic growth targets. The gas deficit of 563.23 MMscfd in East Java-based on this scenario will occur in 2027.

Investor Daily, Page-10, Friday,  April 16, 2021

Ahok asks JTB to be on time

 

    The President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama paid a working visit to the Jambaran - Tiung Biru (JTB) gas unitization field development project operated by PT Pertamina EP Cepu (PEPC) in Bojonegoro.

PT Pertamina EP Cepu (PEPC)

    Arriving at the project location in Bandungrejo Village, Ngasem District, Bojonegoro, Ahok, as he is often called, he inspected several locations in the project. He hopes that the JTB Project activities can be on stream soon in November 2021.

"Overall the JTB Project is on the track. We hope to be on stream soon in November 2021. Especially for JTB Project workers, work safely and come home safely," said the man who is familiarly called Ahok.

Basuki Tjahaja Purnama AKA Ahok

    With the on stream target, it is hoped that the energy needs in the East Java region, especially from the gas sector, can be accommodated immediately. Pertamina is developing the JTB Project to meet national energy needs. The JTB project can support gas energy of 192 MMSCFD during the production period. 

The Jambaran Tiung Biru (JTB) project

    The JTB project will provide a multiplier effect in providing gas supplies to various industrial sectors in Central and East Java. In addition, in partnership with ExxonMobil Cepu Limited (EMCL), Pertamina is involved in a 45 percent share ownership in the Banyu Urip Oil Field.

ExxonMobil Cepu Limited (EMCL)

    Ahok went to JTB Field accompanied by CEO of Subholding Upstream Pertamina Budiman Parhusip, President Commissioner of PT Pertamina EP Cepu (PEPC) Gandhi Sriwidodo, as well as other Pertamina Management. The group arrived and was greeted by the President Director of PT Pertamina EP Cepu (PEPC), Awang Lazuardi, and his staff. 

the Banyu Urip Oil and Gas Field ExxonMobil

    In addition to the JTB Field, Ahok also visited the Banyu Urip Oil and Gas Field in the Cepu Block in Gayam District. Ahok appreciated the oil and gas operators who have helped the government in fulfilling oil and gas energy.

Republika, Page-9, Friday,  April 9, 2021

Instead of Manage Challenging Rokan Blocks

    The transfer of management of the Rokan Block from PT Chevron Pacific Indonesia to PT Pertamina (Persero) left a problem with the electricity supply. With crude oil production of 160,000 barrels per day, the Rokan Block requires an electricity supply of up to 400 megawatts and steam of 335,000 standard barrels per day. It is feared that the problem will affect oil production when the block in Riau was managed by Pertamina.

Blogger Agus Purnomo in SKK Migas

    According to Fatar Yani Abdurrahman, Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the electricity supply in the Rokan Block is the backbone of the block's production operations. 

    So far, the supply of electricity and steam has been managed by PT Mandau Cipta Tenaga Nusantara (MCTN), which has a contract with Chevron. The company operates a Gas and Steam Power Plant (PLTGU) with a capacity of 300 MW.

"SKK Migas knows that the plant is being tendered and sold to the highest bidder. We have also discussed with Chevron that the most reliable electricity manager in Indonesia is only PT Perusahaan Listrik Negara (Persero). We'll just wait for the solution, "said Fatar in the webinar" Safeguarding State Assets and Sustainability of Electricity Supply in the Rokan Block ".

the Rokan Block by Chevron

    The PLTGU in the Rokan Block has become a polemic, regarding its status as a state asset or not a state asset, in a cooperation contract scheme based on cost recovery.

    John Simamora, Director of Strategic Planning and Business Development at PT Pertamina Hulu Energi (PHE), said that his party had agreed to hand over the electricity supply in the Rokan Block to PLN. 

PT Perusahaan Listrik Negara (Persero)

    However, if PLN is not ready to supply electricity until the limit of handing over management of the Rokan Block to Pertamina, another option is to extend the power supply contract with MCTN.

    Executive Vice President of Corporate Communications and PLN CSR Agung Murdifi, through an official statement, stated that PLN is very ready to meet the electricity needs of the Rokan Block. The Sumatra electricity system has a power reserve of 2,800 MW.

Kompas, Page-10, Friday,  April 9, 2021

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