Pertamina Imports Crude Oil Directly from Nigeria

    PT Pertamina (Persero) through PT Refinery Pertamina Internasional (KPI), managed to get a contract to import crude oil directly from the Nigerian national oil and gas company, namely the Nigerian National Petroleum Corporation (NNPC). This direct contract makes the cost of procuring crude oil more efficient. 

the Nigerian National Petroleum Corporation (NNPC)

    In general, Nigerian crude oil is marketed in the international market by the International Oil Company (IOC) which has Participating Interest (PI) in the oil and gas blocks in the country, such as Exxon Mobil, Chevron, Shell, Total, and BP. The direct agreement between Pertamina and NNPC makes the procurement process more efficient.

"Of course, getting a direct contract will be more efficient which is in line with the refinery feedstock optimization plan in the future," said KPI's Director of Feedstock & Product Optimization Yoki Firnandi.

    The crude oil import contract with NNPC is valid from this year until 2023. The entire supply of oil is to meet the feedstock needs of Pertamina's refineries. Previously, for the 2017-2020 period, oil imports from Nigeria reached 30% of the company's total imports. This Nigerian oil belongs to the sweet crude category which is following Pertamina's refinery specifications.

Aramco

"Nigeria is Pertamina's second-largest source of crude oil imports, after Arabian Light Crude supply to the Cilacap Refinery from Saudi Arabia's NOC (national oil company/national oil company), Aramco," said Pertamina's Vice President of Feedstock & Inventory Management, Sani Dinar Saifuddin.

    To get the supply of Nigerian crude oil, Pertamina must compete with 500 companies that register. The direct contract with NNPC is Pertamina's first achievement. Pertamina International Marketing & Distribution Pte Ltd (PIMD) under PT Pertamina Patra Niaga as Subholding Commercial Marketing also supported KPI in getting the contract.

the Pertamina Prime VLCC

    Later, the transportation of crude oil from Nigeria will be carried out by PT Pertamina International Shipping (PIS). Moreover, PIS has completed the procurement of two very large crude carriers (VLCC), namely the Pertamina Prime and Pertamina Pride tankers.

Nicke Widyawati

    Previously, Pertamina President Director Nicke Widyawati said that after forming the sub-holding, subsidiaries were given the freedom to formulate types of crude oil that could produce good quality and better yields of valuable products. So, her party decided to use imported crude oil more. 

    Referring to Pertamina's data, imports of crude oil this year will reach 118.4 million barrels, up 39.7 million barrels or 50.44% from last year's imports of only 78.7 million barrels. Crude oil imports in 2021 are also much higher than imports in 2019 which amounted to 86.9 million barrels.

    This strategy can also reduce the trade balance deficit. This is because the price of imports is lower than the price of Indonesia's oil exports. The average purchase of crude oil imports this year is US$ 57.8 per barrel, while Indonesia's average oil exports reach US$ 59.8 per barrel. She estimates that there will still be a surplus of US$ 75 million.

Investor Daily, Page-10, Tuesday, July 13, 2021

PLN DOMINATES ROKAN'S ELECTRICITY SUPPLY

    PT PLN (Persero) is preparing to control the electricity supply for the Rokan Block after signing a share purchase agreement with PT Mandau Cipta Tenaga Nusantara MCTN), which has been supplying energy for the legendary oil and gas working area.

    PLN President Director Zulkifli Zaini said that with this signing, 100% of PT Mandau Cipta Tenaga Nusantara (MCTN) shares will be owned by PLN. Meanwhile, MCTN is an electricity company owned by Chevron Standard Limited (CSL).

    Through this acquisition, PLN will utilize the gas power plant (PLTG) North Duri Cogen with a capacity of 300 megawatts (MW) previously owned by MCTN to ensure the availability of electricity and steam supply to the Rokan Block during the transition period.

"We will supply electricity and steam to the Rokan Working Area from the PLN side in two stages," he said.

The Rokan Block Chevron

    First, short-term power supply. After the acquisition of MCTN shares, the company's operations will continue for a 3 year transition period. Second, the supply of electricity for the long term. PLN will interconnect the electricity system in the Rokan Block with the Sumatra electricity system.

    PLN's Director of Commerce and Customer Management Bob Sariel said the acquisition was very important for the operation of the Rokan Block. This is done to ensure that the electricity supply does not stop after the transfer of management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) to PT Pertamina Hulu Rokan on August 8, 2021.

PT Chevron Pacific Indonesia (CPI)

“If you want to build a network, it takes 2 years to replace the object or 1 year to relocate. If there is a 1.5-year time lag that causes electricity to be unable to flow to Rokan, of course, the oil Working Area in the Rokan Block will experience a decrease in production, "he said.

    In addition, the acquisition decision is also considered to be better than just entering into a power purchase contract with MCTN or renting the power plant. Moreover, MCTN is the only one that can supply electricity to the Rokan Block.

    After a 3-year transition period, the Rokan Block's electricity needs will be supplied from a more reliable Sumatran electricity system. According to Bob, Sumatra's electricity system has a very strong supply with supplies from a number of steam power plants (PLTU), hydroelectric power plants (PLTA), and geothermal power plants (PLTP) in the region. Currently, the company is building a 500 kV transmission network to strengthen Sumatra's electricity system.

    Regarding investment to support electricity supply to the Rokan Block, PLN has allocated around Rp11 trillion. However, Bob has not been able to reveal more details about the acquisition value of MCTN shares on the grounds that they are still bound by a non-disclosure agreement (NDA). 

    The contents of the MCTN share sale and purchase agreement can only be opened after the administrative and financial processes are completed approximately 1 month after the signing of the share purchase agreement. What is clear, the acquisition funds will come from internal PLN.

Jennifer Ferratt

    Regional Director of Chevron Standard Limited Jennifer Ferratt said that with the completion of the share sale and purchase process, the company is committed to creating a smooth transition in MCTN and in line with the transition of the Rokan Block to Pertamina Hulu Rokan (PHR).

"We would like to thank PLN for working with CSL to achieve fair and mutually beneficial results," said Jennifer.

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif added that the Rokan Block has huge potential for oil reserves. Therefore, to be able to provide maximum benefits for the country, a good strategy is needed.

"PLN must ensure a guarantee of electricity supply for the Rokan Block so that Pertamina is able to maintain the sustainability of the production of 25% of the national oil," he said.

    Meanwhile, Deputy Minister I of SOEs Pahala Nugraha Mansury hopes that the follow-up to this sale and purchase agreement will run smoothly and in tandem with the management transfer process which will take place soon.

“The Rokan Block is very strategic for Indonesia because it produces 25% of the national oil production. So far, the majority of electrical energy has been supplied by power plants owned by MCTN, so this agreement is very important to ensure the supply of electricity for the Rokan Block in the future," said Pahala.

    Meanwhile, the acquisition of MCTN shares is a follow-up to the cooperation agreement between PLN and Pertamina Hulu Rokan which was included in the memorandum of understanding for the cooperation in providing electricity and steam in the Rokan Working Area on December 30, 2020, and the sale and purchase agreement for electricity and steam on January 29. 2021.

Pertamina Hulu Rokan (PHR)

BUSINESS EFFICIENCY

    President Director of Pertamina Hulu Rokan (PHR) Jaffee A. Suardin said with this commitment, Pertamina's position would be even stronger because it had ensured the continuity of the Rokan Block's operational activities.

"The presence of PLN for electricity in the Oil Working Area in the Rokan Block is a form of good BUMN synergy, with the hope of increasing business efficiency, especially related to electricity and steam costs which can be more economical and efficient, so as to be able to support the development of Pertamina Hulu Rokan (PHR) oil wells." Pertamina Hulu Rokan (PHR) with better economies of scale," he said.

    Meanwhile, the demand for electricity and steam in the Rokan Block Oil Working Area is 400 MW and 335,000 barrels of steam per day (Mbspd). Most of these needs are supplied from the 270 MW and 265 Mbspd MCTN plants and the remaining needs are met from the Rokan Block Oil Working Area internal generator.

    The electricity and steam supply is to maintain the continuity of oil production in the Rokan Block Working Area which is expected to be maintained at around 160,000 thousand barrels per day this year with the addition of new wells being drilled. Currently, the Rokan Block production is recorded at 162,951 barrels per day, which is the second-largest production after the Cepu Block in East Java, Indonesia.

    Energy Watch Executive Director Mamit Setiawan explained that the process of signing a share purchase agreement between PLN and MCTN was a new step in the Rokan Block transition process. According to him, through this process, the problem of electricity and steam supply for the Rokan Block can be resolved in the future.

"SOE synergy between Pertamina and PLN is a strategic step in developing and helping fellow SOEs considering the Rokan Block is the backbone of national oil production," said Mamit.

Bisnis Indonesia, Page-4, Wednesday, July 7, 2021

Premier Oil Continues Tuna Block Development

    Premiere Oil Tuna BV continues the development of the Tuna Block on the Indonesian border with Vietnam, by drilling the Lion Sea-2 exploration well. The drilling of this well ensures the volume of the block's oil and gas reserves located in the Natuna waters.

Premiere Oil

    Secretary of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Yunus appreciated Premiere Oil for continuing to develop the Tuna Block during the Covid-19 pandemic. He hopes that the drilling of exploration wells in the block can produce oil and gas reserves according to the target.

Blogger Agus Purnomo in SKK Migas

"The drilling has been carried out according to the planned schedule, and has started on Sunday (July, 3)," he said.

    He explained the target depth of the Sea Lion-2 drilling is 9,566 feet measure depth /FtMD. After that, Premier will continue drilling exploration wells at Kuda Laut-2 Field with a target depth of 10,452 feet from the seabed (true vertical depth subsea/TVDSS). The drilling of these two wells includes deep-sea drilling or 1,000 meters below sea level.

"From the two wells, it is hoped that there will be additional proven gas reserves of around 470 BCF (billion cubic feet / billion cubic feet)," said Taslim.

    Previously, Premier Oil had carried out 2D and 3D seismic acquisitions. The British oil and gas company has also drilled four exploration wells, namely the North Elephant Sea-1, North Sea Eel-1, Sea Horse-1, and Sea Lion-1. This activity is part of the implementation of definite commitments that must be fulfilled by Premiere Oil.

    In the Tuna Block, referring to the Premiere Oil website, there are two fields to be developed, namely the Sea Horse Field and the Sea Lion Field. Based on data from the Ministry of Energy and Mineral Resources, oil reserves in the Tuna Block reach 2,127 million barrels and gas at 12.36 billion cubic feet. 

    Meanwhile, the block area reaches 2,450.29 square kilometers. The Tuna Block has a strategic role in Indonesia's geopolitics because it is located on the border with Vietnam and close to the South China Sea.

"Utilizing the potential of oil and gas in the area is part of the support for the upstream oil and gas industry in an effort to assert Indonesia's sovereignty in border areas," said Taslim.

Investor Daily, Page-10, Wednesday, July 7, 2021

Electricity Supply for Rokan Block, PLN Officially Acquires MCTN Shares

    PT Perusahaan Listrik Negara (PLN) (Persero) officially acquired 100% shares of PT Mandau Cipta Tenaga Nusantara (MCTN) which is owned by Chevron Standard Limited. 

    This acquisition is proof of PLN's commitment to maintaining the continuity of the Rokan Block electricity supply, both during the transition period and in the long term. Moreover, the Rokan Block is the backbone of national oil production.

The Rokan Block Chevron

    The acquisition process was marked by the signing of a sales and purchase agreement (SPA) by the Director of Commerce and Customer Management of PLN, Bob Sariel, and Regional Director of Chevron Standard Limited, Jennifer Ferratt, online.

Director of Chevron Standard Limited, Jennifer Ferratt

    This agreement was also witnessed by Minister of Energy and Mineral Resources Arifin Tasrif, Deputy Minister I of BUMN Pahala Nugraha Mansury, Head of SKK Migas Dwi Soetjipto, President Commissioner of PLN Amien Sunaryadi, President Director of PLN Zulkifli Zaini, and the management of Chevron Standard Limited as the majority shareholder of MCTN.

Blogger Agus Purnomo in SKK Migas

    Zulkifli said that the acquisition of the MCTN shares is proof of PLN's commitment to maintaining the continuity of the Rokan Block electricity supply, both during the transition period and in the long term. Moreover, the Rokan Block is the backbone of national oil production.

the Rokan Block Chevron

    As is known, the management of the Rokan Block from August 9, 2021, will shift from PT Chevron Pacific Indonesia (CPI) to PT Pertamina Hulu Rokan (PHR). So far, the electricity and steam supply for the Rokan Block comes from the North Duri Cogen Gas Power Plant (PLTG) with a capacity of 300 Megawatts (MW) which was previously owned by MCTN, a subsidiary of Chevron Standard Limited (CSL).

PT Chevron Pacific Indonesia (CPI)

"We would like to thank Chevron Standard Limited (CSL) for the good cooperation and for the good electricity in the Rokan Work Area as long as it is managed by Chevron Pacific Indonesia," said Zulkifli virtually in Jakarta.

    The acquisition of MCTN shares is a follow-up to the cooperation agreement between PLN and PT Pertamina Hulu Rokan (PHR) which was included in the Memorandum of Understanding (MOU) for the Provision of Electricity and Steam for the Rokan Region on December 30, 2020, and the Sale and Purchase Agreement for Electricity and Steam on January 29, 2021.

    Zulkifli hopes that, through the signing of the sale and purchase of shares, a good partnership can be established as the first step in building partnerships and cooperation between PLN and Chevron Standard Limited (CSL) in the future. 

    In the future, this power plant will be used for three years to serve electricity needs in the Rokan Block. Both during the transition period together with PLTG Migas and Central Duri until finally it will be supplied from the Sumatra interconnection system.

“In the long term, reliable and competitive supply of 400 MW of electricity in the Rokan Block will be supplied from the Sumatra and 335 MBSPD Steam system using the New Steam Generator. Within 3 years the interconnection of the system and the New Steam Generator will be fully operational," he added.

    In addition, the provision of reliable electricity supply from the Sumatra System to the Rokan Block is carried out from three sources.

"PLN prioritizes aspects of safety, reliability, quality, and efficiency in meeting the energy needs of the upstream oil and gas industry," he said.

    PLN as a BUMN that is given the mandate in the electricity sector, has an obligation to meet electricity needs and provide the best service for all customers, including industrial customers, one of which is the oil and gas sector, both from upstream and downstream.

“PLN as the most experienced electricity provider in Indonesia has a special design and strategy in providing electricity for the oil and gas industry. Currently and in future plans, PLN's large systems such as Java, Sumatra, Kalimantan, and Sulawesi have a very large reserve margin (40-50%) to be able to serve the needs of the oil and gas industry," said Zulkifli.

    Regional Director of Chevron Standard Limited, Jennifer Ferratt said, with the completion of this process, it is hoped that the transition at MCTN can take place smoothly and in line with the transition of the Rokan Block to PT Pertamina Hulu Rokan (PHR).

    Minister of Energy and Mineral Resources Arifin Tasrif added that the Rokan Block has huge potential for oil reserves. Therefore, to be able to provide maximum benefits for the country, a good strategy is needed. With this agreement, PLN will continue to use the North Duri Cogen PLTG before the Rokan WKB electricity supply is supplied by the Sumatra system interconnection network.

“PLN must ensure a guaranteed electricity supply for the Rokan Block so that Pertamina is able to maintain the sustainability of the production of 25% of the national oil. Therefore, power plants must be reliable with more efficient costs, so that they can provide much better benefits for the nation and state," he said.

    The Deputy Minister of State-Owned Enterprises, Pahala Nugraha Mansury, also appreciated PLN and CSL for successfully completing the transfer of ownership of MCTN. He also hopes that the transition process in this one month can go hand in hand with the Rokan working area from Chevron to Pertamina smoothly.

“The Rokan Block is very strategic for Indonesia because it produces 25% of the national oil production. So far, the majority of electrical energy has been supplied by MCTN's power plants. So this agreement is very important to ensure the electricity supply for the Rokan Block in the future," he added.

Support Pertamina's Production

    Meanwhile, Pertamina expressed its appreciation for the signing of the SPA to fulfill the electricity needs of the Rokan Working Area (WK).

PT Pertamina Hulu Rokan (PHR)

"Pertamina appreciates the agreement process between Chevron Standard Limited and PLN related to efforts to meet the electricity needs for Rokan WK," said PT Pertamina Hulu Rokan (PHR) President Director Jaffee A. Suardi.

    Furthermore, Jaffee added that this commitment will certainly strengthen Pertamina's position, in this case through PT Pertamina Hulu Rokan (PHR), to ensure the continuity of production of the Rokan Oil and Gas Block Working Area, which of course contributes significantly to national oil and gas production.

Investor Daily, Page-10, Wednesday, July 7, 2021

Increase Investment, Ministry of ESDM Continues to Improve Oil and Gas Data

    The Ministry of Energy and Mineral Resources (ESDM/EMR) continues to improve the subsurface data for oil and gas blocks to attract investment. The reason is that the completeness of the data will increase Indonesia's competitiveness in attracting oil and gas companies to invest in Indonesia.

ESDM

    Head of the Center for Data and Information Technology at the Ministry of Energy and Mineral Resources (EMR/ESDM), Agus Cahyono, said that the ministry has opened access to oil and gas data for potential investors to attract investment. 

    Completeness of data is also the focus of the ministry. One of them is that the data's completeness can make it easier for potential investors to process 2D seismic data into 3D as strong.

"With more complete data, it provides convenience and completeness for potential investors to conduct regional studies," he said during an online discussion on Ease of Investment and Information Services in the Energy and Mineral Resources Sector held by the Ministry of Energy and Mineral Resources (ESDM/EMR).

    Currently, his party continues to collect seismic data from oil and gas blocks throughout Indonesia. However, he admits that there are indeed obstacles related to data processing, especially those that are still stored in round tape form. The success of reading data on the media is fairly low.

“Really have to be careful and have to go back and forth to retrieve data. And this is a lot of round tape data,” said Agus.

    In addition, he said that data improvement could be pursued from the realization of definite Work Commitments (KKP) promised by oil and gas companies when signing the Production Sharing Contract (PSC). KKP funds can now be used to conduct exploration in open areas, not limited to oil and gas blocks operated by oil and gas companies.

    Pertamina Hulu Energi (PHE) has completed a 2D seismic survey along a length of 32,200 kilometers (km). Currently, the resulting data is being processed through Pseudo-3D Seismic Reprocessing. 

Blogger Agus Purnomo in SKK Migas

    SKK Migas noted that there is exploration potential for Deltaic Deepwater Play in the South Makassar Strait Basin, Pre-Tertiary Play in the North East Java-Makassar Strait Basin, and others. This data will also be open to the public in the future.

ENI

    Not long ago SKK Migas also signed an upstream oil and gas exploration cooperation with ENI. With this technology collaboration, SKK Migas hopes to has new oil and gas prospects.

    Regulatory Affairs Committee Indonesian Petroleum Association (IPA) Prana Raditya said oil and gas companies were greatly helped by the government's policy of opening up national oil and gas data. He hopes that the subsurface data on oil and gas blocks can be improved in quality and quantity so that it will increase oil and gas business actors to invest in Indonesia.

“In terms of data, Indonesia is currently competing with other countries. So, the more, complete, and good quality data that can be provided for business actors review, the more attractive Indonesia will be for business actors at home and abroad," he said.

    Thus, the completeness of the data also helps to achieve the target of oil production of 1 million barrels per day (BPD) and gas of 12 billion cubic feet per day by 2030. These data on oil and gas blocks are summarized in the Oil and Gas Data Repository (MDR). 

    Not only data related to oil and gas potential in one area but the MDR is also equipped with supporting data, such as area boundaries, availability of age infrastructure, geological vulnerability, to whether it is included in forest land. Investors can access all the data for free by registering to become a member.

Investor Daily, Page-10, Wednesday, July 7, 2021

Pertagas Optimistic Rokan Pipe Completed On Time

    PT Pertamina Gas (Pertagas), a subsidiary of PT Perusahaan Gas Negara (PGN) Tbk, is optimistic that it will be able to complete the oil pipeline project in the Rokan Block on time in early 2022. This pipeline is needed to keep the Rokan Block oil production stable when its management is transferred to PT Pertamina (Persero) in August.

The Rokan Block Chevron

    Pertagas Communication, Relations & CSR Manager Elok Riani Ariza said, according to government directives, strategic project construction activities must continue, including the construction of the Rokan Oil Pipeline block. His party strives for this national strategic project to be completed on time.

"As of the end of June, the construction progress has reached 71.33%," said Elok.

The Rokan Block Chevron

    The Rokan Block Oil Pipeline has the potential to flow around 200-265 thousand barrels of oil per day (BPD). The project is targeted for commercial operation in stages until it is fully completed in early 2022.

    The North Block, which includes the Balam-Bangko-Dumai Corridor, is targeted to operate in the third quarter of 2021. Then the South Block, namely Minas-Duri, is targeted to operate in the 1st Quarter of 2022. The Rokan Block Pipe Project has a diameter of 4-24 inches. The pipeline consists of 12 segments and three stations, namely Duri Station, Dumai, and Manifold Batang.

    In each pipe segment, there is a pig launcher and receiver including accessories. The pipeline also has a Sectional Break Valve (SBV) in 24 locations, Horizontal Direct Drilling (HDD) in 12 locations, as well as a Leak Detection System for all sections and an Oil Transport & Management System. The pipe is approximately 367 kilometers (km) long and passes through 5 regencies and cities, 14 sub-districts, and 38 villages and sub-districts. Apart from pursuing construction targets, the safety aspect remains Pertagas' main concern.

"The project, which started with first welding on September 10, 2020, has successfully passed 2.18 million safe working hours until June 25, 2021," said Elok.

    To date, the Rokan Oil Pipeline project has recruited 76% of the local workforce of a total of 2,404 workers. This is in accordance with the direction of the Regent of Rokan Hilir Afrizal Sintong when receiving a visit from the Director of Infrastructure and Technology of PGN Achmad Muchtasyar and the Director of Engineering and Operations of Pertagas Rosa Permata Sari at the office of the Regent of Rokan Hilir, City of Bagansiapiapi.

"We hope that this project will have a positive impact on the development of the Riau region in general and be able to contribute significantly to increasing human resource capacity, and transferring knowledge in areas that are passed by the pipeline in particular," said Elok.

    She also hopes that this project can support energy security and contribute positively to improving the national economy. At the same time, the process of managing the Rokan Block continues. Previously, PT Pertamina Hulu Rokan (PHR) stated that the mirroring process for existing contracts has now reached 95% or 276 contracts out of a total of 290 contracts. 

    On the other hand, PT Chevron Pacific Indonesia has completed the PSC termination checklist provisional document on February 25, 2021. In addition, as of May, asset reporting has reached 81%, of which around 109 thousand assets have been physically inspected and reported. While the closing of project reports reached 70% or around 2,940 reports that have been completed.

    Pertamina Hulu President Director Rokan (PHR) Jaffee A Suardin had said that his party was trying to make the transfer of management process run smoothly according to the timeline.

"So that on August 8 and 9, 2021, there will be a seamless management transfer process, without pause, both in terms of operations and support," said Jaffee.

Investor Daily, Page-10, Wednesday, July 6, 2021

PHR Ensures Rokan Block Worker's Transition Runs Smoothly

    PT Pertamina Hulu Rokan (PHR) ensured that the process of transferring the management of the Rokan Block from PT Chevron Pacific Indonesia (CPI) went smoothly. One of the priority aspects is the worker transfer process. PHR has sent an acceptance letter and an employment agreement to all CPI employees.

PT Chevron Pacific Indonesia (CPI)

    As a result, of the 2,700 workers, as many as 98.5% have returned and signed the Work Agreement, and only 1.5% of the workers who did not return it with reasons including because they are nearing retirement age and want to retire early, continue their studies to a higher level of education. height, and other reasons. PHR President Director Jaffee Arizon Suardin welcomed the progress of returning the Acceptance Letter and Employment Agreement by CPI workers.

“Thank you for the positive response given. By joining CPI employees into the Pertamina family, they will have wider career opportunities in the Pertamina Group. I believe, together we can become a solid team, collaborate and synergize to develop the company's business today and in the future to maintain national energy security," said Jaffee.

    Meanwhile, Senior Vice President Rokan Transition CPI Wahyu Budiarto expressed his appreciation to Pertamina and all parties who have supported this process so that the transition went very well.

the Rokan Block Chevron

“The transition in the field of human resources is very important and the most critical in supporting the transfer of management of the Rokan Block. Therefore all steps are prepared together perfectly to achieve a safe, reliable, and smooth transition. Appreciation to Pertamina and all parties who have supported this process so that the transition went very well.” said Revelation.

    PHR has opened a channel of communication for all CPI workers so that all questions can be answered. The channels consist of the Town Hall Meeting which was held online on June 3, 2021 (attended by more than 2000 participants) and June 7, 2021 (attended by more than 2300 participants), Manager Forum on June 9, 2021, which was attended by management levels at CPI. The HC (Human Capital) Corner is an online live event program held every day from June 10, 2021, to June 18, 2021. In addition to these channels, a contact center has also been opened via email to submit personal questions.

Investor Daily, Page-9, Saturday, July 3, 2021

Seven Upstream Oil and Gas Projects Worth US$ 1.45 B in Operation

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that as many as seven upstream oil and gas projects from the target of 12 projects this year have been operating (on stream). The investment value of these seven projects reaches US$ 1.45 billion or equivalent to Rp. 21.12 trillion.

    The seven upstream oil and gas projects are the Belato-2 Early Production Facility (EPF) project by PT Seleraya Merangin II, Enhanced Oil Recovery (EOR) for the Jirak Field by PT Pertamina EP, and gas supply to the Balikpapan Refinery by PT Pertamina Hulu Mahakam (PHM).

    Next are the development of the KLD Field by PT Pertamina Hulu Energi Offshore North West Java (ONWJ), the West Pangkah Field by PT Saka Energi Indonesia, the Merakes Field by Eni East Sepinggan, and the North Area Field by Jindi South Jambi Block B.

Eni

    The seven projects produce oil production of 9,850 barrels per day (BPD) and gas of 474.5 million standard cubic feet per day/MMscfd. Thus, the successful completion of these seven projects can reduce the rate of natural production decline that occurs.

Blogger Agus Purnomo in SKK Migas

“The activities carried out have successfully completed 58.3% of the target. We are optimistic that all of the upstream oil and gas projects targeted by 2021 can be completed because the other five projects are in process and are still in accordance with the plan," said SKK Migas Deputy Operations Julius Wiratno.

    In the midst of the economic situation that has not yet recovered due to the Covid-19 pandemic, the realization of these upstream oil and gas projects is able to create new jobs and support the movement of the regional economy. 

    In addition, this project also supports national and regional companies to be able to continue to survive and maintain business continuity. For this reason, his party together with the cooperation contract contractors (KKKS) are trying to accelerate the work on the project which is scheduled for 2022.

"Hopefully something can be accelerated this year, so hopefully the number of onstream projects can exceed this year's target and support an increase in production next year," said Julius.

    This has been facilitated by the development of the Integrated Operation Center (IOC) facility. With the IOC, it can improve supervision and facilitate operational flexibility to achieve national oil and gas production targets. This is because the IOC allows SKK Migas to carry out 24-hour real-time surveillance.

    His party also anticipates the movement of people and goods in the midst of tightening mobility policies to prevent the spread of the Covid-19 pandemic. This is to ensure the availability of goods or services to support production operations in the field according to the timetable.

"To maintain the smooth mobility of upstream oil and gas goods and workers, we continue to coordinate with related parties so that production operations continue normally," said Julius.

    Acceleration of the vaccination program must also be carried out in line with government programs.

"So, we hope to keep the confirmed cases of Covid-19 under control in upstream oil and gas. SKK Migas also continuously coordinates with KKKS (cooperation contract contractors) to ensure that the health protocols have been implemented as well as possible so that production stops do not occur due to the increasing number of Covid-19 cases," said Julius.

    In the upstream oil and gas environment itself, the rate of increase in confirmed cases of Covid-19 actually tends to be sloping compared to the end of 2020 to the first quarter of 2021. However, his party still anticipates the potential for an increase in cases due to social interactions during Eid al-Fitr yesterday. 

Jambaran Tiung Biru (JTB) gas Project

    Julius added that this year, one of the upstream oil and gas projects included in the national strategic project (PSN), namely Jambaran Tiung Biru (JTB), is scheduled to start operating. 

    He is optimistic that this target can be achieved. Moreover, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif and the Head of SKK Migas Dwi Soetjipto have directly reviewed the work on this project.

Investor Daily, Page-10, Thursday, July 1, 2021

RESET ONSTREAM SCHEDULE

    The operating schedules of a number of upstream oil and gas projects were forced to be postponed due to the Covid-19 pandemic which still creates uncertainty in the sector. It is hoped that the fulfillment of the needs for the downstream sector will not be disrupted. One of the delays in the operation schedule was the Tangguh Train-3 National Strategic Project (PSN).

Blogger Agus Purnomo in SKK Migas

    Deputy for Special Task Force Operations (SKK Migas) Julius Wiratno said the completion of the project would miss the target in the fourth quarter of 2021 to next year.

    According to him, at the beginning of this year, the project had been suspended for 3 months due to the spread of Covid-19. To resume the project, it will take longer.

“Probably around mid-2022. We are currently doing a schedule and risk analysis. We'll see if it can be fixed," he said.

    Based on SKK Migas records as of March 26, 2021, the progress of the Tangguh Train-3 onshore project in Papua still reached 89.58% or lower than the target, which was 96.21%. Meanwhile, the offshore project work on Tangguh Train-3 has reached 99.19% of the target that should have been 100%.

the Jambaran-Tiung Biru (JTB) gas project

    In addition to the Tangguh Train-3 project, a scheduled shift has also occurred in the Jambaran-Tiung Biru (JTB) gas project. Julius said the ongoing Covid-19 pandemic coupled with the second wave which worsened conditions at home made the project. SKK Migas will oversee these projects so that they can be completed by the end of the year.

“The JTB project has been pushed back from August to November or December 2021 onstream. There is still uncertainty because of this Covid," he said.

    Overall, to date, SKK Migas has successfully completed seven upstream oil and gas projects from the target of 12 onstream projects in 2021.

    Investments in the seven projects were recorded at US$ 1.45 billion and provided additional production of 9,850 barrels of oil per day (bopd) and 474.5 million cubic feet of gas per day (MMscfd).

    The seven upstream oil and gas projects that are already onstream are EPF Belato2 Seleraya Merangin Dua, EOR Jirak Pertamina EP, KLD PHE ONWJ, Gas Supply to RU-V Pertamina Hulu Mahakam, West Pangkah Saka Indonesia Pangkah Ltd, Merakes Eni East Sepinggan, and North Area Jindi. South Jambi Block B.

Eni

    Meanwhile, in line with upstream oil and gas activities and the tightening of government policies to implement efforts to prevent the Covid-19 pandemic, the upstream oil and gas business is also taking anticipatory steps in order to continue to achieve the target. One of the anticipatory measures taken is the acceleration of the vaccination program which is carried out together with government programs.

"SKK Migas also continuously coordinates with KKKS to ensure that the health protocols are implemented as well as possible so that production does not stop due to the Covid-19 case," he said.

    Julius added that the movement of people and goods needs to be added to ensure the availability of goods or services to support production operations on time.

"We are working on accelerating projects launched in 2022. Hopefully, something can be accelerated this year, so hopefully, the number of projects that can onstream can exceed this year's target and support an increase in production next year," he explained.

    Energy Director Watching Mamit Setiawan assessed that the delay in the streaming schedule for oil and gas projects was not entirely the fault of the contractor.

"The contractors must have made changes to their plans from last year with the hope that the pandemic can subside this year and fabrication activities can operate normally in manufacturing companies, but it seems that it failed to meet the target," said Mamit.

    However, he hopes that the preparation of the goods will not take too long, especially if the project is a PSN. Especially for JTB, it doesn't really matter if the project is planned. Surprisingly, the demand for gas for the industry in East Java currently tends to below.

    Executive Director of the National Oil and Gas Company Association (Aspermigas) Moshe Rizal assessed that the Covid-19 pandemic had indeed caused a lot of uncertainty. Moreover, there is a policy to make it difficult for KKKS to achieve the required productivity.

“It's really difficult because of the number of personnel in the field and travel restrictions. This all hampers productivity. Although the goods are available but not optimal, "he said.

OIL AND GAS INVESTMENT

    Meanwhile, the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources stated that investment in the upstream oil and gas sector is still below the target.

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said the Covid-19 pandemic had a major impact on the domestic oil and gas industry. This causes oil and gas investment to be slow. Meanwhile, this year's investment in the upstream oil and gas sector is targeted at US$12.4 billion. He said that until June 2021, the realization of the investment was less than half of the target.

"In this month or May-June 2021, upstream oil and gas investment is 25.52 percent of the 2021 target," he said.

    Tutuka said the government continues to strive to improve services and ease of doing business in the domestic upstream oil and gas sector. He said the government had issued a number of regulations that would support this facility.

    He explained that the government had made a policy to increase the use of domestic products in upstream oil and gas activities, namely the Minister of Energy and Mineral Resources Regulation No. 15 of 2013, and the Minister of Energy and Mineral Resources Regulation No. 14 of 2019, as well as the Minister of Energy and Mineral Resources Regulation No. 17 of 2018.

"The oil and gas sector is one of the natural resources that is multifunctional and plays a major role in the country and contributes to the growth of national income," said Tutuka.

Bisnis Indonesia, Page-4, Thursday, July 1, 2021