VLGC Pertamina Gas 2 Raises Red and White in the United States

    The very large gas carrier (VLGC) Pertamina Gas 2 (PG 2) operated by PT Pertamina International Shipping (PIS) has made a new history for being an Indonesian-flagged vessel that can be docked at the American LPG terminal. This ship made its maiden voyage to transport LPG cargo from the Americas with a FOB base at the LPG Export Terminal owned by Phillips 66 in Freeport, Texas.

Phillips 66 in Freeport, Texas

    The very large gas carrier (VLGC) Pertamina Gas 2 (PG 2) began sailing from Indonesia on 27 April 2021 and arrived in Houston, the United States on 5 June 2021. Transporting a total of 45,000 MT LPG belonging to Subholding Commercial and Trading, the PG 2 vessel was commanded by Capt. Dasuki with a crew of 27 people, of which 60% are under 40 years old.

 The very large gas carrier (VLGC) Pertamina Gas 2 (PG 2)

    This ship will travel more than 28,000 nautical miles with more than 80 round trip days, from Indonesia to the United States, then back to Indonesia. According to Capt. Dasuki, the journey through 3 continents and 2 oceans is a challenge in itself, considering that the PG 2 ship must pass US government certification. Certificate of Compliance Examination is a certificate of recognition from the US government for PG 2 Ships that have met the rules and requirements.

"I am certainly very happy because the issuance of this certificate shows that Pertamina Gas 2 can carry out all activities, especially in US waters," he said.

    PT Pertamina International Shipping (PIS), which is currently Pertamina's sub-holding shipping company, can manage Indonesian-flagged vessels docked at international ports. It is a matter of pride for PT Pertamina International Shipping (PIS) where the PG 2 ship's journey this time is manned by all Indonesian crew members and fulfills the requirements of the Classification Society / Indonesian Classification Board (BKI).

"Hopefully this achievement will be the first step and build confidence to spread its wings in the global shipping industry," said Capt. Dasuki.

    PG 2 was built under the Panamanian and LR class flags during the construction period, but over time, reflagging was carried out to the Indonesian flag to support Indonesian flag vessels from the gray list to the White list and now PG 2 is under the BV and BKI classes. The ship made by the Hyundai-South Korea company in 2014 made a voyage to carry LPG as a supply for Indonesia's national energy needs.

    The PG 2 ship is capable of sailing 20,000 nautical miles (1 NM = 1,852 Km) without refueling at a speed of 16.8 knots. The special design prepared by PIS is with a flexible cargo manifold arrangement cargo handling LVVL (Liquid-Vapor Vapor Liquid) or VLLV (Vapor Liquid Liquid-Vapor).

Investor Daily, Page-10, Wednesday, June 16, 2021

Cepu Block Oil Production Reaches 475 Million Barrels

    Cepu Block production managed by Exxon Mobil Cepu Limited (EMCL)  has reached 475 million barrels, exceeding the target in the plan of development/POD of 450 million barrels. The government encourages the development of oil and gas potential in this block so that production does not decrease significantly.

Exxon Mobil Cepu Limited (EMCL)

    The achievement of cumulative production of 475 million barrels is marked by the 700th shipment of oil lifting from the Cepu Block at the floating storage and offloading/FSO tanker ship Gagak Rimang. The volume of oil lifted is 1 million barrels, namely 850 thousand barrels belonging to the government and 150 thousand belonging to the Cepu Block Participating Interest Cooperation Agency (BKS PI). The shipment was led and witnessed directly by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

Exxon Mobil Cepu Limited (EMCL)

    Arifin said that Exxon Mobil Cepu Limited (EMCL) had previously succeeded in increasing the Cepu Block reserves from the initial 450 million barrels to 940 thousand million barrels. Even from the production level, the oil and gas company originating from the United States was also able to reach more than 200 thousand barrels per day (BPD) from the initial around 160 thousand BPD in 2016. He hopes that Exxon Mobil Cepu Limited (EMCL) can maintain its performance.

"We hope that this capability can continue to be developed to optimize oil and gas production in Indonesia," said Arifin Tasrif. One of them, Exxon Mobil Cepu Limited (EMCL), and partners are expected to continue to develop the oil and gas potentials around the Cepu Block area.

"We hope that the existing potentials can be developed immediately so that they can be used as reserves so that the production process can then be carried out," he said.

Bloger Agus Purnomo in SKK Migas

    Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto added that the Cepu Block had reached a plateau production level with a volume of more than 220 thousand BPD for five years. This realization far exceeds POD with an estimated average production of 165 thousand BPD over two years. 

the Cepu Block by ExxonMobil

    However, as is normal for other oil and gas reservoirs, the Cepu Block production is now starting to decline. However, his party together with Exxon Mobil Cepu Limited (EMCL) continues to strive to maintain Cepu Block's oil production so that it does not drop drastically. 

"Currently SKK Migas continues to oversee Exxon Mobil Cepu Limited (EMCL) with Cepu Block partners to discuss various initiatives to manage the production decline that has begun to occur, including exploring new opportunities in the Cepu Block," said Dwi.

    According to him, there are additional reserves that are ready to be produced of up to 40 million barrels. "In the near term the potential that can be monetized is 40 million barrels, but infill drilling must first be carried out," he said.

    In addition, there is an opportunity to increase the production of the Kedung Keris Field from 10 thousand BPD to 11 thousand BPD. However, exploration drilling is needed to ensure the potential in Kedung Keris. Not only oil, but his party also encourages the monetization of gas potential in the Cepu Block area. 

    This is because the potential for gas reserves in the Cendana and Alas Tua fields is recorded to be very large, around 200 billion cubic feet/BCF with an estimated production of 83 million standard cubic feet per day/MMscfd. Then there is gas potential from several field structures in the Cepu Block, such as Giyanti and Pilang, the amount of which can reach 500 BCF. 

“Gas potential in the future. We hope that Mobil Cepu Limited (EMCL) and Pertamina can optimize this opportunity," he said.

Irtiza Sayyed

    ExxonMobil Indonesia President Irtiza Sayyed said that discussions on opportunities to monetize the potential that still existed in the Cepu block had been carried out intensively. One of the discussions is to ensure the potential reserves of 40 million barrels of oil that are ready to be produced.

"We will do whatever it takes to maximize production and curb production declines," he said.

Nicke Widyawati

    As a partner, President Director of PT Pertamina (Persero) Nicke Widyawati stated that she would fully support efforts to keep Cepu Block production stable.

PT Pertamina (Persero)

"We hope that in the future, the good and solid cooperation that has been carried out so far can be maintained and even increased, given the production level which is estimated to be stable at the level of 200 thousand BPD, so that it can support national energy security," She said.

    Referring to SKK Migas data, this year, the Cepu Block is targeted to produce 219 thousand BPD of oil. Meanwhile, the realization of production as of March 31, was still at 213,251 BPD or 97.4% of the target. 

    In 2020, the realization of Cepu Block production was recorded at 218,194 BPD. Oil production activities at the Banyu Urip Field, Cepu Block have been carried out since 2008 and the main production facilities began operating in the fourth quarter of 2015.

Investor Daily, Page-10, Thursday, June 10, 2021

Merakes Project Ready to Supply Domestic Gas

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif inaugurated the Merakes Field oil and gas development project in the East Sepinggan Working Area, East Kalimantan. The investment value of the project reaches US$ 1.3 billion or Rp 18.5 trillion. The project, which is operated by ENI East Sepinggan Ltd, has started onstream in April 2021 and will deliver gas of 368 million standard cubic feet per day (MMSCFD) at peak production.

ENI

"With the completion of one of the major oil and gas projects, namely the development of the Merakes field, it is hoped that the production and utilization of natural gas in Indonesia" will increase," said Arifin.

the Merakes Field by ENI

    Production from the Merakes Field will contribute to the extension of the operating life of the PT Badak Natural Gas Liquefaction (NGL) gas refinery in Bontang, East Kalimantan. Near the Merakes Field location, the Floating Production Unit/FPU is also distributed through gas pipelines for domestic needs of 117 MMSCFD from 2022 - 2025.

"The government continues to encourage efforts to increase reserves, oil and gas production, and optimize the use of natural gas for domestic needs, which currently stands at 63.9%," said Arifin.

    The share of natural gas in the current national energy mix should be 19%. Based on Government Regulation No. 79 of 2014 concerning National Energy Policy, this portion is targeted to be 22% by 2025.

"To achieve this target, there are obstacles such as the decline in oil and gas production caused by old oil and gas fields, no new large reserves being found, and the lack of exploration. Therefore, we will continue to boost the fulfillment of domestic gas," said the Minister of Energy and Mineral Resources.

Blogger Agus Purnomo in SKK Migas

    On the same occasion, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that this project was previously targeted to be onstream in the third quarter of 2020. However, due to the COVID-19 pandemic, it was postponed to April 27, 2021. 

    He said the Merakes natural gas project will help meet the supply of piped gas needs in East Kalimantan as well as the need for liquefied natural ga domestic and export. The Merakes Field was developed with an investment of US$ 1.6 billion.

Media Indonesia, Page-10, Wednesday, June 9, 2021

Cepu Block Backup Optimized

    The government is targeting the potential reserves that are still available in the Cepu Block to prevent a natural decline in production in the working area which is the buffer for national oil production. The Cepu working area, which is operated by ExxonMobil Cepu Limited (EMCL), has recorded crude oil production of 475 million barrels.

ExxonMobil Cepu Limited (EMCL)

    Meanwhile, this production is higher than the estimated total volume of oil reserves produced based on the initial plan of development/POD of 450 million barrels.

the Cepu Block East Java by ExxonMobil Cepu Limited (EMCL)

    Minister of Energy and Mineral Resources Arifin Tasrif said the contribution from the Cepu Block was very large to the achievement of ready-to-sale production or national lifting reaching 30-40 percent. Unfortunately, the water content in the Cepu Block drilling has now increased which indicates a decline in production from the Cepu Block.

"There is another potential of 40 million barrels that must be exploited from around Cepu," he said.

    Arifin hopes that ExxonMobil can optimize oil and gas resources in the Cepu Block and immediately develop existing reserves to be processed into production. According to him, with the total production of the Cepu Block which has reached 475 million barrels, there are still almost half of them, namely 940 million barrels.

"ExxonMobil will take steps, among others optimizing the work in the well to be maintained, then subsurface works will be carried out, more intense programs and also prevent downtime," he said.

Blogger Agus Purnomo in SKK Migas

    Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said the decline in production in the Cepu Block was indeed due to an increase in the portion of water that came out of oil drilling and an increase in the gas ratio. 

    On the other hand, the Banyu Urip Field is currently at a stable production level at around 220,000 barrels per day. However, with production levels higher than the initial estimate, the Banyu Urip Field also experienced a scientific decline in production.

"Currently SKK Migas continues to oversee ExxonMobil Cepu Limited (EMCL) together with partners to discuss various initiatives to manage the decline in production that has begun to occur," he said.

Nicke Widyawati

    Meanwhile, PT Pertamina (Persero) said it would take part in increasing production in the Cepu Block. Pertamina President Director Nicke Widyawati said the increase in production in the Cepu Block would be pursued through the completion of the Jambaran-Tiung Biru (JTB) project which is being worked on by PT Pertamina EP Cepu (PEPC).

the Jambaran-Tiung Biru (JTB)

"Pertamina is committed to increasing additional production in the block because we realize that in the energy transition plan, the use of gas will be a transition from fuel to NRE," said Nicke Widyawati.

    The project with a total investment value of US$ 1.53 billion is projected to have a peak gas production of 192 MMscfd. The JTB project is said to provide a multiplier effect in providing gas supply for various industrial sectors in Central and East Java. 

    Based on SKK Migas data, in the first quarter of 2021 the progress of project work has reached 88.77%. The realization was still below the target of 98.22%.

    Meanwhile, ExxonMobil Cepu Limited (EMCL) crude oil production in the first three months of this year was recorded at 213,251 barrels per day or only 97.4% of the APBN target of 219,000 bopd.

GOVERNMENT APPRECIATION

    Meanwhile, the government will provide awards for upstream oil and gas contractors who have good performance. Arifin said the Ministry of Energy and Mineral Resources has sent a letter to the Ministry of Finance regarding the plan to provide incentives for existing upstream oil and gas contracts.

    According to Arifin, the provision of incentives is to increase the interest of the cooperation contract contractors to increase their production, especially for old wells.

"Those who work hard and produce good results will be rewarded in the form of incentives," he said.

    Arifin continued that wells that had been exploited for a long time had reduced reserves. It takes a lot of effort to at least maintain production levels and maintain the economy of the field.

"If production can increase, the government's share will also increase," he said.

    In addition to incentives for existing contractors, the government will also provide incentives to attract new investors. The challenge is that international oil and gas companies have a tendency to shift their investment costs to NRE.

    The government seeks to attract investors by providing attractive fiscal policies supported by the provision of data and simplification of licensing.

“Indonesia is one of the most attractive locations in the world for investment in the upstream oil and gas sector. For that, we must be able to open an attractive 'showroom' to be visited," said Arifin.

    Dwi Soetjipto assessed that the incentives to be given would depend on the economic value of the business in the field. In addition, incentives also need to refer to the applicable regulations. Dwi Soetjipto said SKK Migas would review a number of aspects to be able to provide these incentives.

"We'll see which one is the best for the country to increase investment," he said.

    On another development, the government is encouraging the development of methane hydrate as an alternative energy source with low emissions. Methane hydrate gas is believed to be one of the unconventional energy innovations that can substitute the use of conventional oil and natural gas.

    Based on research in 2004, it has been found potential reserves of methane hydrate as much as 850 trillion cubic feet in the offshore area of ​​southern Sumatra to the northwest of Java and in the Makassar Strait, Sulawesi.

    This amount is about eight times the current natural gas reserves so that it can support national energy security for up to 800 years. With the support of further research, the volume of methane hydrate gas reserves in Indonesia is estimated to reach 3,000 TCF.

Bisnis Indonesia, Page-4, Thursday, June 10, 2021

Chevron Workers Immediately Change Status to Pertamina Officers

 

    Ahead of the transfer of management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina Hulu Rokan (PHR) on August 9, 2021, Pertamina welcomes CPI workers who will change status to Pertamina employees or commonly called Pertamina Officers.

PT Chevron Pacific Indonesia (CPI)

"I welcome the 2,757 employees of Chevron Pacific Indonesia, prospective Pertamina Group employees," said PT Pertamina (Persero) President Director Nicke Widyawati in an online discussion in the form of a Townhall Meeting with all CPI employees.

“The proverb says 'You don't know it, you don't love it, for that today there was a brief introduction from Pertamina regarding Corporate Overview, Subholding Upstream Overview, PHR Overview, and Human Capital Aspects so that fellow workers who will become the Pertamina Group's extended family will get to know Pertamina closer,” said Nicke Widyawati.

Nicke Widyawati

    According to Nicke, the transfer of management to Pertamina as a national company will provide wider benefits for the state both in terms of management and management state revenue and strengthen Pertamina's position as one of the locomotives of development and the national economy.

"We also have a mandate and a noble task where we have a target to be able to produce 1 million barrels of oil and gas by 2030, for that we need commitment and dedication from all elements of workers, especially the Upstream Subholding to be able to realize this goal," concluded Nicke.

    President Director of PT Pertamina Hulu Energi as Upstream Subholding Budiman Parhusip explained that later the Rokan Block will be managed by PHR under the auspices of PT Pertamina Hulu Energi as Upstream Subholding. Currently, PHR manages Upstream Work Areas and Assets in the Sumatra Region, known as Regional 1 - Sumatra Subholding Upstream.

"With this Regionalization system, between Work Areas and Assets that are close to each other, especially Sumatra in this case, field optimization and operational development effectiveness can be carried out. So that the joining of CPI Workers will also open up more career development opportunities,” explained Budiman.

    PHR President Director Jaffee Arizon Suardin added an explanation regarding PHR, which is also Regional 1 – Sumatra in Pertamina's Upstream Subholding that PHR manages the Rokan block and manages all Pertamina blocks or work areas in Sumatra.

“The focus is that we want to grow significantly and sustainably by focusing on all the potentials that can still be developed. Business Continuity to maintain and even increase production as well as safety and reliability remain the main priority in carrying out the work. Pertamina through PHR will also ensure that the operatorship transfer runs smoothly so that we can complete the program in 2021 and grow significantly in the following years," said Jaffee.

    Regarding Human Resources, Oto Gurnita, Director of Human Resources & Business Support for Upstream Subholding, explained the basic principles of managing workers towards management transfer, especially those related to the organization, employee development transfer, and employee development, and other industrial relations related matters. 

    Managing Director of Chevron IndoAsia Business Unit and President Director of PT Chevron Pacific Indonesia (CPI) Albert Simanjuntak said that this opportunity for open discussion is a positive step for both parties.

"Through this event, we hope that CPI workers can gain a comprehensive insight into PT Pertamina (Persero), Subholding Upstream, and also specifically PT Pertamina Hulu Rokan (PHR). Human Resources is the most important asset in any company and PT Chevron Pacific Indonesia (CPI) is no exception. Integrity, professionalism, and dedication are values ​​that are proven to bring success to us. Hard work and these values ​​will continue to bring success to workers wherever they are. For that, he hopes that PT Chevron Pacific Indonesia (CPI) workers who will join PHR can make their best contribution, even during this COVID-19 pandemic, with the hope that the production of the Rokan block will achieve maximum results," said Albert.

Investor Daily, Page-10, Monday, June 7, 2021

Chevron Gives License to Use IT Applications to Pertamina

    In order to support the smooth transition of the Rokan Block, PT. Chevron Pacific Indonesia (PT CPI) has agreed to license the use of 123 information technology (IT) applications to Pertamina Hulu Rokan (PHR) as the next operator. These applications have been very important in supporting the digitization of oil and gas operations and production activities in the Rokan Block to run efficiently.

PT. Chevron Pacific Indonesia (PT CPI)

“Information and data technology is one of the main components in the Rokan Block transition process. Therefore, the transfer of management to the next operator must be carried out carefully and systematically so that the operation of the Rokan Block continues without technical problems when it is transferred on August 9," said Managing Director of Chevron IndoAsia Business Unit & President Director of PT CPI Albert Simanjuntak.

    Almost all IT applications that have been used by PT CPI will be granted a user license to PHR. These applications, among others, are used for monitoring oil production and transportation in real-time, monitoring the condition of wells and drilling rig activities, regulating the Duri field steam injection, managing partners, managing the procurement of goods and services, and others.

    Last April, PT CPI, and PHR signed an agreement to activate the Rokan Transition Network (RTN), which is an intermediary network used to transfer PT CPI's applications. PHR will be able to access the RTN to install and test commercial applications. PT CPI supports the preparation of all applications that are licensed to use the PHR so that they can operate properly before the process of transferring the management of the Rokan Block. 

    To date, more than 80 applications have been completed in the RTN. In addition, PT CPI also cooperates intensively with PHR to transfer data into IT systems/applications that will be needed after the transfer of management of the Rokan Block.

Blogger Agus Purnomo in SKK Migas

"The parties involved, namely SKK Migas, PT CPI, and PHR, have the same passion and commitment to realize a safe, smooth, and reliable management transfer so that coordination takes place well," said Albert.

the Rokan Block by Chevron

    Joint Utilization The success of the drilling program is an important part of efforts to maintain production levels in the Rokan Block after the transfer of management. To ensure the availability of material supplies to support the drilling program, PT CPI and PHR have signed a joint utilization agreement of state-owned warehouse facilities in the Rokan Block on April 21. 

    With this agreement, PHR can begin to import and store materials to support the drilling program in warehouses managed by PT CPI in Duri and Dumai. These materials include pipes, conductors, casings, tubing, wellheads, valves, cables, and pumps. Currently, a number of PHR materials have arrived at PT CPI's warehouse in Dumai. The arrival of other materials will follow.

"Hopefully, after the date of the transfer of management later, the drilling program can continue without any disruption to material supply because PHR's materials are already available in the field," said Albert.

Working Area the Rokan Block

    PT CPI is a Cooperation Contract Contractor (KKKS) from the Government of Indonesia that operates the Rokan Block in Riau. In operating the Rokan block, PT CPI works under the supervision and control of SKK Migas.

Investor Daily, Page-10, Thursday, June 3, 2021

Riau Governor Supports Transfer of Management of Rokan Block from Chevron to Pertamina

    The Riau Provincial Government is ready to support the process of transitioning the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina. By being managed directly by Pertamina, it is hoped that in the future the Rokan Block will make an increasingly significant contribution to meeting the national oil and gas energy needs.

PT Chevron Pacific Indonesia (CPI)

"We hope that after the transition process is complete, and the Rokan Block is managed by Pertamina, the part of the regional government to manage the PI (Participating Interest) of 10% can also take place. We have prepared Regional Owned Enterprises (BUMD) to participate in the management of this PI," said Syamsuar when receiving a visit from Jaffee Arizon Suardin, President Director of PT Pertamina Hulu Rokan (PHR) - Sumatra Region, at the Riau Governor's Office House.

Blogger Agus Purnomo in SKK Migas

    Also attending the working visit was the Head of SKK Migas Representative for North Sumatra (Sumbagut) Rikky Rahmat Firdaus, Head of the Operations Department of SKK Migas Sumbagut Representative Haryanto Syafrie, and Head of the Riau Energy and Mineral Resources Office Indra Agus Lukman. 

    Syamsuar explained, after going through the bidding process and evaluating all BUMDs in Riau Province, finally two Regional Owned Enterprises (BUMD) were selected that met the criteria to participate in the PI in the Rokan Block, namely PT Riau Petroleum and PT Bumi Siak Pusako.

    The Governor of Riau also hopes that PHR can empower BUMD, local contractors, and local workers for operational support activities for the Rokan Block.

“The most important thing is the status of former CPI workers and their subcontractors. The rights of workers must be a concern for Pertamina," he said.

Jaffe Arizon's working visit to the Governor of Riau to prepare for the transfer of management of the Rokan Block. During this visit, Jaffee wanted to ensure that the transition process went smoothly and that the Riau Provincial Government supported the process of transitioning the management of the Rokan Block to Pertamina. 

the Rokan Block by Chevron

    Regarding the status of former CPI workers, Pertamina's Human Capital (HC) team has prepared all the things needed for the transition process for CPI workers to become part of Pertamina. The management of the Rokan Block by CPI will end on August 8, 2021, and on August 9, 2021, the Rokan Block will be officially managed by PT Pertamina Hulu Rokan (PHR) under the Gross Split Production Sharing Contract (PSC) scheme and the local government has 10% PI rights, based on the Minister of Energy and Mineral Resources Regulation No. 37 of 2016.

Working Area the Rokan Block Chevron

    The Rokan Block is located in Riau Province, with working areas in five regencies, namely Rokan Hulu, Rokan Hilir, Bengkali, Siak and Kampar, as well as two cities, namely Pekanbaru and Dumai. With a working area of ​​6,300 KM2, the Rokan Block has 80 production fields with more than 12,000 wells.

Investor Daily, Page-10, Thursday, June 3, 2021

Global Oil and Gas Investors Start Leaving Indonesia

    A number of cooperation contract contractors (KKKS) chose to leave after years of investing in Indonesia's oil and gas fields. After Royal Dutch Shell confirmed that it would leave the Masela Block (Maluku), now ConocoPhillips intends to leave the Corridor Block (South Sumatra).

Blogger Agus Purnomo in SKK Migas

    Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman revealed that ConocoPhillips' plan to release Participating Interest (PL) ownership shares in the Corridor Block had been submitted to SKK Migas.

"Verbally, it has been conveyed like that, releasing Participating Interest (Pl) shares," he said.

    Although it has stated its intention verbally, ConocoPhillips has not detailed further the reasons for releasing Participating Interest (PL) ownership shares in the Corridor Block. Fatar confirmed that there is no planned meeting with ConocoPhillips. SKK Migas is still waiting for ConocoPhillips' official proposal submission. ConocoPhillips Vice President Commercial and Business Development Taufik Ahmad declined to comment further on this news.

"Until now there has been no additional explanation apart from what was conveyed by SKK Migas," he said.

    Currently, ConocoPhillips is listed as the contractor for the Corridor Block with a 54% participating interest and Repsol Energy has a 36% interest. Meanwhile, Pertamina has a participating stake of 10%. The production sharing contract (PSC) in the Corridor Block will expire on December 20, 2023. 

    A new production sharing contract was signed in 2019, whereby the existing KKKS received a 20-year extension with a Gross Split PSC. In the period 2023-2026, there will be a transition period, in which ConocoPhillips will still be the operator. However, after this period, the operatorship will be transferred to Pertamina.

Repsol

    Later, in the latest production sharing contract, there will be a change in the amount of Pl, namely Pertamina Hulu Energi Corridor controlling 30%, ConocoPhillips 46%, and Repsol 24%. The planned departure of ConocoPhillips adds to the long list of global oil and gas companies leaving Indonesia. 

    In July 2020, Royal Dutch Shell plans to withdraw from the Masela Block Perpetual Gas Project. Shell, which holds a 35% participating stake, is still looking for a replacement candidate.

    Another investor who also intends to leave is PT Chevron Pacific Indonesia (CPI) which will release its participating stake in the Indonesia Deep Water Development (IDD) Block. After Shell left, SKK Migas Deputy Operations Julius Wiratno said the search for partners for the Masela Block is targeted to be completed by the end of this year.

"Shell is in the process of looking for a replacement until the end of this year. Chevron is the same way. This is common in the business world," he said.

    In this situation, Julius ensured that the government could not intervene in the ongoing business-to-business process. The Executive Director of the Reforminer Institute, Komaidi Notonegoro, believes that the government needs to evaluate the upstream oil and gas business regarding the plans of global investors who want to leave.

"However, domestic business actors such as Pertamina need partners," said Komaidi Notonegoro.

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects that this year's oil and gas lifting will reach 97.3% of the target in the 2021 State Budget (APBN). Head of SKK Migas Dwi Soetjipto projects that this year's oil and gas lifting reached 1.6 million barrels of oil equivalent per day (MBOEPD) or lower than the target in the 2021 State Budget of 1,711.78 MBOEPD.

    Referring to the realization in the first quarter of 2021, according to Dwi, there is still pressure on oil and gas production. On the other hand, there was also an unplanned shutdown and a delay in drilling execution. 

"There is also a delay in the onstream schedule of several oil and gas fields so that the total is reduced by 25,000 barrels per day and gas by 99 mmscfd from the target that has been set," he said.

    Dwi added, in order to cover the existing production gap, SKK Migas targets additional drilling activities this year. They predict drilling activities can increase to 700 activities.

Kontan, Page-13, Wednesday, June 2, 2021

Train-3 Tangguh Refinery Project Potentially Moved Back to 2022

    The Tangguh Train-3 Refinery Project is estimated to be delayed until mid-2022 due to the impact of the Covid-19 pandemic. Project work was stopped due to an increase in positive cases of Covid-19, which had an impact on construction progress.

Blogger Agus Purnomo in SKK Migas

    Deputy Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Julius Wiratno said the target for the Tangguh Train-3 Papua Refinery operation by the end of this year's quarter would be difficult to achieve. The reason is, from November 2020 to February 2021, the project work was stopped completely due to an increase in Covid-19 cases.

"In the fourth quarter, Tangguh Train-3 will not be able to start operating. My estimate is around mid-2022," he said.

    He explained that it was quite difficult to catch up on the progress of project work caused by the Covid-19 pandemic. This is because there is still uncertainty regarding the number of workers (personnel onboard/POB) who can work in the field. This condition may change if the vaccination program takes place.

“Perhaps if vaccination is implemented for all workers it can speed up progress. We are working on this,” explained Julius. At the end of June, a special session will be held to conduct a scheduled risk analysis of the progress of the Tangguh Train-3 Refinery Project.

"We'll see the results later," he added.

    Since the beginning of the pandemic, the Tangguh Train-3 Refinery Project has been affected. At that time, the number of workers had to be reduced from 13,000 POB to 6,300 POB to prevent the spread of Covid-19. Then to catch up with delays, the number of personnel was increased to 7,700 workers in September last year. 

    Unfortunately, then there was an outbreak of Covid-19 cases. The delay in the operation schedule, Julius asserted, will not have an impact on the project's production volume.

"It's only shifted back a few months because the train capacity has been fixed," he said.

    The Tangguh Train-3 Papua Refinery Project is estimated to reach peak gas production of up to 700 million standard cubic feet per day/MMscfd and 3,000 barrels of oil per day (BPD). The project with an investment of US$ 8.9 billion was originally scheduled to operate in the last quarter of this year. 

    However, until March 26, the progress of this project was still below the target. The construction of land facilities for this project still reached 89.58% of the target of 96.21%. Meanwhile, the progress of work on offshore facilities is better, which is 99.19% of the 100% target.

Investor Daily, Page-10, Wednesday, June 2, 2021

Rokan Block Switching Staggered

    The process of transitioning the Rokan Block from PT Chevron Pacific Indonesia (PT CPI) to PT Pertamina (Persero) is still ongoing. The PT Pertamina Hulu Rokan (PHR) process was hampered by the spread of the SARS-CoV-2 virus. Director of State Receivables and Other State Assets, Ministry of Finance (Kemenkeu), Lukman Efendi confirmed that the process will continue. Until now, the transition is still reaching 10 percent.

PT Chevron Pacific Indonesia (PT CPI)

“There is a transition of 10 percent of the total land area of ​​around 64 thousand hectares. Will become BMN (State-Owned Goods). We have done a physical check," said Lukman.

    In addition to the inspection of land assets which reached 10 percent, there was an inspection of capital assets which had reached 83 percent. Now, inspections related to inventory assets have reached 60 percent. So far, only the inventory material inspection has been completed 100 percent. Lukman hopes that the entire management transfer process can be completed before August 8, 2021.

    The government continues to try to go through the process before the termination or expiration of the cooperation contract. The value of the Rokan Block BMN was recorded at Rp. 197.78 trillion. This amount reaches 20 percent of the total value of the National Cooperation Contract Contractors (KKKS) BMN which is Rp 497.62 trillion as of 2019.

"Wealth in the form of land, inventory assets, and capital assets," he added.

the Rokan Block

    Previously, Riau Governor Syamsuar voiced his hope that oil and gas production from the Rokan Block could be maximized. This is because regional revenues are highly dependent on oil and gas revenue sharing. 

    The Riau Regional Government is committed to supporting the smooth transfer of management of the Rokan Block and facilitating it. Syamsuar also stated the readiness of Regional Owned Enterprises and local companies to cooperate business-to-business.

"The Riau Regional Government is ready to help facilitate licensing in this transitional period of management," he added.

the Rokan Block

    The Rokan Block is the largest oil block in Indonesia. It covers an area of ​​6,220 square kilometers and covers five districts in Riau. Namely, Bengkalis, Siak, Kampar Rokan Hulu, and Rokan Hilir.

Jawa Pos, Page-3, Monday, May 31, 2021