61 Oil and Gas Producing Regions Still Disappointed

 

    A total of 61 local governments still have to be disappointed because regulations are not strong enough to involve oil and gas producing regions in obtaining a 10% participating interest.

Blogger Agus Purnomo in SKK Migas

    Head of the Legal Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Didik Setyadi said that until November 2021 there were still 61 regions that were carrying out the 10% Participating Interest (PI) bidding process.

    According to Didik, one challenge that makes it difficult for regions to get a 10 percent PI is caused by regulations that do not explicitly regulate sanctions for contractors who do not meet the provisions of the Minister of Energy and Mineral Resources Regulation number 37 of 2016.

"This needs attention because the nature of the business to include a 10 percent PI is good faith is cooperation, so cooperation cannot be forced on each other but must be an agreement based on both parties," he said in the Northern Sumatra Forum webinar, Thursday ( 25/11/2021).

    Didik added that the difficulty of investing in regional shares of 10 percent was also caused by the reluctance of contractors who thought it would affect the economy.

    The reason is that the Minister of Energy and Mineral Resources Regulation number 37 of 2016 is interpreted by oil and gas contractors to provide 10 percent PI shares with a maximum value so that it will have an impact on the project's economy.

    The Coordinator of the Upstream Oil and Gas Business Development Assessment of the Ministry of Energy and Mineral Resources, Yulianto, said the government would immediately revise the Minister of Energy and Mineral Resources Regulation number 37 of 2016 to make it easier for regions to get a 10 percent PI.

    The plan to revise the regulation is necessary considering that since the enactment of the Ministerial Regulation, only two regions have received a 10 percent PI, namely West Java and East Kalimantan.

"We at the Ministry of Energy and Mineral Resources have then tried, in this case, trying to improve the Ministerial Regulation in order to improve the process of bidding and transferring PI more so that it is faster and more transparent, then it can really be accepted by fellow contractors and in producing areas," he explained.

    Meanwhile, the government will revise the definition of PI with a maximum percentage of 10 percent and regulate the distribution of shares of 10 percent for districts/cities and provinces. Improvements will also be made to the obligations of Regional Owned Enterprises (BUMD) in terms of the value of the transfer, the appointment of an independent institution.

    In addition, the government will regulate the timing of the 10 percent PI offer, the effective date for the 10 percent PI, and sanctions for Cooperation Contract Contractors (KKKS) who do not offer a 10 percent PI.

the Rokan Block

    Meanwhile, Riau Governor Syamsuar said the process to get a 10% PI in the Rokan Block had gone through 9 of the 10 stages specified in the Minister of Energy and Mineral Resources Regulation No. 37/2016.

    He said that his party had reached an agreement between the five regents who were included as oil and gas producing regions from the Rokan Block and had appointed Regional Owned Enterprises (BUMD) to be included in the 10% PI.

West Java Governor Ridwan Kamil

MINIMUM INVOLVEMENT

    Meanwhile, West Java Governor Ridwan Kamil explained that there are still many areas that have not been involved in managing oil and gas working areas. This is because there are still contractors who find it difficult to cooperate with regional companies.

    Ridwan Kamil, who also serves as Chairman of the Association of Regional Oil and Gas Producers and Renewable Energy (ADPMET) said that getting PI is not as easy as it is in the applicable legislation. According to him, special lobbying is needed by the regions together with contractors.

“Everywhere, it is difficult for people to share profits, so that's the nature. That is why the success of West Java Province and East Kalimantan Province because of incentive lobbying, should not be as complicated and not as tiring,” he said.

    Ridwan Kamil added that another obstacle that is often found in oil and gas producing areas to get a 10% PI is the non-transparent lifting data from contractors. For this reason, cooperation with the central government is needed so that the regulations provided can be easier and provide transparency of the potential generated from an oil and gas working area.

"Therefore, we offer our organization to provide lobbying for the central government to make it easier," he said.

    According to him, as an area that has managed to get a 10% PI, West Java has felt the direct benefits generated both in terms of income and the multiplier effect.

PHE-ONWJ

    Ridwan Kamil explained that West Java had succeeded in obtaining business income through the regionally owned company (BUMD) PT Migas Hulu Jabar which managed the 10% PI in the ONWJ Block worth Rp 232 billion during 2017-2018.

PHE-ONWJ Block in West Java

    President Director of PT Migas Hulu Jabar Begin Troys said that in 2019, his party began to enter the electricity business, integrated energy management, gas infrastructure, and construction services in the oil and gas sector.

    As a result, in 2019 West Java's Upstream Oil and Gas earned revenue of Rp 172 billion with income from non-PI 10% increasing to 16%. In 2020, West Java's upstream oil and gas will enter the Pertamina Group's DRUPS business, manufacturing oil and gas block rigs, and the Cirompang micro-hydropower plant.

Bisnis Indonesia, Page-4, Friday, Nov 26, 2021

Pertamina Accelerates Fuel and Petrochemical Refinery Projects

PT Pertamina (Persero) will accelerate the work on ongoing fuel oil (BBM) and petrochemical refinery projects. This is after President Joko Widodo complained about the slow progress of investment from the company's refinery project.

Pertamina Vice President Corporate Communication Fajriyah Usman said the company appreciates the President's attention and direction on the implementation of Pertamina projects, one of which is the refinery project. His party will follow up the direction of the Head of State.

"We will immediately follow up by accelerating the completion of the project," said Fajriyah Usman.

    The two projects that the President complained about were the development of the PT Trans-Pacific Petrochemical Indotama (TPPI) petrochemical refinery and the construction of an integrated petrochemical fuel refinery with Rosneft Oil Company. Regarding the TPPI refinery, Fajriyah explained, there are two major scopes of work that are carried out by his party.

Fajriyah Usman

    First, the TPPI aromatic revamping project is divided into two phases. The first phase includes the construction of five tank units to maximize paraxylene production with a total capacity of 600 thousand tons with a completion target of December 2021.

    The second phase is an increase in processing unit capacity from 600-kilo tonnes per year (kilo tonnes per annum/KTA) to 780 KTA which is scheduled to be completed in mid-2023.

    The second project is the development of olefin petrochemicals. TPPI is holding an auction for this project which includes basic engineering design (BED) and front-end engineering design (FEED). The project, which is targeted for completion in 2025, will produce polypropylene and polyethylene.

"The current investment absorption for revamping projects is around US$ 238 million, and for olefin projects, it is around US$ 3.9 billion," said Fajriyah.

    According to him, the Tuban Refinery Project is ongoing and scheduled for completion in 2027. Referring to Pertamina's data, the refinery project is planned to have a crude oil processing capacity of 300 thousand barrels per day (BPD). The refinery, which is integrated with the petrochemical complex, will produce fuel of 230 thousand BPD, as well as petrochemical and aromatic products reaching 4.1 million tons per year.

"The Tuban refinery is currently in the stage of making FEED with an actual progress of 49.16%," said Fajriyah.

    In addition to the two projects, the company also continues to work on repair and capacity building projects for other existing refinery projects, namely the Balikpapan and Balongan refineries. According to Fajriya, the Balikpapan Refinery Project is currently in the execution stage of the engineering, procurement, and construction (EPC) package with the progress of 43.9%. This project is targeted for completion in 2024.

"Then the Balongan Refinery is currently in the process of executing the EPC with an actual progress of 39.09%," said Fajriyah.

    The Balongan Refinery Phase I project is targeted for completion in April 2022. Previously, President Joko Widodo said, Rosneft as Pertamina's partner in working on the Tuban Refinery Project wants to be able to realize its investment as soon as possible. But in fact, the realization of the investment was only Rp. 5.8 trillion from the planned Rp. 168 trillion. In fact, if limited public infrastructure such as access to trains and toll roads becomes an obstacle, the government is ready to build it.

    The same thing he said also happened in the TPPI Refinery Project. The progress of the project with an investment value of up to US$ 3.8 billion is fairly slow even though it has been running for quite a while. In fact, the auction of this project has been repeated twice. Meanwhile, on the other hand, the completion of this project will reduce dependence on imports of petrochemical products and improve the national trade balance. 

“Imports will not be much if we can produce ourselves. We have a raw material industry but we import instead, that's what I'm sad about. Because there will be a lot of things that will be lost if these goods are imported, especially those related to petrochemicals, there will be a lot of them," said the President.

    In fact, if the project is executed quickly, Pertamina will also benefit. The President said that even though the investment decision is in the hands of the company, it must still be in line with the country's grand strategy. Therefore, the company is expected to be able to realize the investment plan that has been agreed to according to the schedule, aka not keep going backward. Moreover, the government has supported the acceleration of this investment by issuing the Job Creation Act.

Investor Daily, Page-9, Thursday, Nov 25, 2021

Subholding Upstream Pertamina Wins The 13th Annual Global CSR Summit & Awards 2021

Labuhan Beach CSR of PHE WMO

    Sub holding Upstream Pertamina won an international award at The 13th Annual Global CSR Summit & Awards 2021 for the implementation of the CSR Program, especially in the aspect of Community Involvement & Development (CID) which is innovative and sustainable and provides measurable benefits for the environment and the community, especially around the operational area on Tuesday (16/11/2021).

Tracking in Labuhan Beach by PHE WMO

    The Annual Global CSR Award event is one of the prestigious awards at the international level which is held every year, with a selective scoring system which this time was participated by companies from 7 countries in the Asia Pacific region.

Labuhan Beach Mangrove Park by PHE WMO

    Pertamina's Upstream Subholding received 6 awards in various categories that contributed to the achievement of the Sustainable Development Goals (SDGs) targets, including supporting Goal 2 Without Hunger, Goal 4 Quality Education, Goal 5 Gender Equality, Goal 8 Decent Work and Economic Growth, Goal 13 Addressing Climate Change, Goal 14 Ocean Ecosystems, and Goal 15 Land Ecosystems.

    In the category of Empowerment of Women Award, Subholding Upstream Pertamina won the Platinum award, which is the highest award, through CSR programs implemented in several work areas. These CSR programs involve and empower women in supporting the achievement of SDGs 5, namely Gender Equality, one of which is the implementation of CSR programs carried out by PHE West Madura Offshore (PHE WMO) and PHE Jambi Merang.

Blogger Agus Punomo in PHE WMO

''The CSR program carried out not only targets the economic value for the beneficiaries but also produces new values, namely, behavior that refers to women's gender equality in the community so that they are also able to become Agents of Change both in their families and communities,'' explained Arya. Dwi Paramita, Corporate Secretary of Pertamina's Upstream Subholding who was met separately.

Gazebo in Labuhan Beach by PHE WMO

    While in the Best Environmental Excellence Award category, Pertamina's Upstream Subholding won 2 awards, namely Gold through the Labuhan Mangrove & Coral Reef Ecotourism Program which is an innovation of PHE WMO, part of Zone 11 Regional East Indonesia, as well as a Silver award for the Footprint Program (Jerih Kerja Karawang, The Spirit of Healthy Farmers for Food Security Increases), which was initiated by PT Pertamina EP (PEP) Subang Field which is part of Zone 7 Regional Java Subholding Upstream Pertamina.

Touring boat in Labuhan Beach

"The Labuhan Mangrove & Coral Reef Ecotourism Program succeeded in planting a total of 76,050 mangroves and sea pine with a total accumulation of carbon sequestration until 2021 of 16,875.77 tons CO2 eq, which has supported Labuhan Village in obtaining the title of ProKlim Utama Village from the Indonesian Ministry of Environment and Forestry in 2021," Arya said.

    Pertamina's Upstream Subholding also received a Gold award for the category of Excellence in Provision for Literacy & Education Award through the 'PELITA' Program (Environmental Education for Children) and Waste for Education: One Stop Solution conducted by Pertamina EP Subang Field, part of Zone 7 Regional Java Pertamina Upstream Subholding.

    The other two awards were for the Best Community Program Award category, achieving a Gold rating through the Polyculture Program, Innovation for Optimization of Pond Products developed by Pertamina EP Tambun Field, part of Pertamina's Upstream Java Subholding Zone 7 Regional. 

    In the same category, Pertamina's Upstream Subholding also received a Bronze award for the implementation of the Desa Cinta Bumi Respons Api program, a program based on climate change mitigation and adaptation as an effort to prevent forest and land fires from PHE Jambi Merang, part of Zone 1 Regional Sumatra Subholding Upstream Pertamina.

“This achievement is a manifestation of Pertamina's Upstream Subholding commitment in implementing the CID Program as part of implementing Environmental, Social & Governance (ESG) performance aspects to contribute to the achievement of the SDGs. This award provides motivation for us to continue to innovate and strive to spread wider benefits to the community, especially around our operational areas throughout Indonesia,'' concluded Arya.

    In conjunction with the 2021 Global CSR Award, the 12th Annual Global CSR Awards 2020 was also held, which was delayed due to the Covid-19 pandemic. In the 2020 Global CSR Award, PHE, which is now Pertamina's Upstream Subholding, won several awards in a number of categories, including the Gold award for the Excellence in Provision for Literacy & Education Award category through the Minority Group Empowerment Program through Education at PHE Jambi Merang and JOB Pertamina- Medco E&P Tomori Sulawesi.

RIG PHE WMO near Labuhan Beach

    In the Best Community Category, PHE through the Community-Based Ecotourism Program from PHE WMO and PHE Siak also won a Bronze Award and a Bronze award in the Women Empowerment category by JOB Pertamina-Medco E&P Tomori Sulawesi with the Sinorang Herbal Village Program.

    The 2020 award was also won by Pertamina EP Tarakan Field from the Border School Program for Education Equity in Disadvantaged Areas in the Excellence in Provision for Literacy & Education Award Category with a Gold rating.

Monitoringoil.com, Thursday, Nov 18, 2021

SKK Migas Take Advantage of the Time Left

    Although less than 10 years are left, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that it would continue to strive for oil production of 1 million barrels per day and 12,000 MMscfd of gas by 2030. 

Blogger Agus Purnomo in SKK Migas

    Head of Program Coordinator for the 2nd International Convention on Indonesian Upstream Oil and Gas 2021 Rikky Rahmat Firdaus said that the 2030 target is a big challenge for the upstream oil and gas sector in the next 9 years.

"Nine years isn't that long actually. To obtain oil and gas, it requires survey activities to drill. This will take time, so we must carry out activities from now on to achieve these targets,” he said.

    SKK Migas and cooperation contract contractors (KKKS) have made a number of efforts to achieve this target. First, optimizing production from existing fields and maintaining existing production.

"The current state budget in 2021 will reach 705,000 barrels per day. This target alone is already a challenge," he added.

    Second, chemically enhanced oil recovery (EOR) to obtain new oil reserves. Most recently, SKK Migas approved the plan of development (POD) for the Ubadari Field and Vorwata Enhanced Gas Recovery (EGR) in the Berau, Muturi, and Wiriagar working areas operated by BP Berau Ltd. This agreement resulted in additional reserves of 1,523 Bscf of gas or equivalent to 271.96 million barrels of oil.

BP Berau Ltd

“Furthermore, third, increasing oil and gas exploration with planned and in-depth and efficient studies. Then the G&G survey that we are doing with KKKS is carried out," he explained.

Energy and Mineral Resources (ESDM)

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji stated that special steps were needed to achieve the oil and gas production target.

"If efforts are not made to prevent production from falling, by 2030, oil production could only be around 300,000 barrels per day. The strategy needs to be taken seriously," said Tutuka.

    Meanwhile, the government also stated that the development of oil and gas infrastructure will still be aggressive in the future. This is to support the increase in production that has been planned to meet domestic supply.

    Tutuka said there are 42 upstream oil and gas projects in Indonesia for the period 2021 to 2027 which are expected to produce 1.1 million barrels of oil equivalent per day with an investment of around US$43.3 billion.

Bisnis Indonesia, Page-4, Thursday, Nov 18, 2021

Jambaran-Tiung Biru Project Potentially Delayed to 2022

    The Jambaran Tiung Biru (JTB) project has the potential to be operational next year, from the initial target for completion by the end of 2021. However, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is still trying to get the project completed soon.

Blogger Agus Purnomo in SKK Migas

    SKK Migas Deputy Operations Julius Wiratno said his party was still pursuing the completion of three additional upstream oil and gas projects this year, one of which was the Jambaran-Tiung Biru (JTB) Field Unitization Project. However, the completion of the project worked on by PT Pertamina EP Cepu (PEPC) has the potential to be delayed to next year.

PT Pertamina EP Cepu (PEPC)

“JTB which seems very difficult to onstream (operations) this year. There is a possibility [of withdrawing]," he said.

the Jambaran-Tiung Biru Project

    Currently, the development of the Jambaran-Tiung Biru Project has reached 95%. However, even if the progress of this project can reach 98-99%, the possibility of starting operations this year is still very difficult.

"But we still try as much as possible," said Julius.

the Jambaran-Tiung Biru Project

    Previously, the work on the Jambaran-Tiung Biru Project was affected by the Covid-19 pandemic. However, as of last June, SKK Migas is still optimistic that the gas project with a production of 192 million standard cubic feet per day/MMscfd will start operating this month. 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.

    The JTB project includes the construction of a gas processing facility/GPF and its supporting facilities, as well as drilling six development wells and one plug and abandonment well. By optimizing 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 pipeline 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 channeled to PLN of 100 MMscfd and the remaining 72 MMscfd for the industry in Central Java and East Java.

    Besides JTB, two other projects targeted for completion this year are the SP Bambu Besar (Asso) Project by PT Pertamina EP and Bukit Tua Phase 3 by Petronas Carigali Ketapang II Ltd. The SP Bambu Besar project is estimated to provide additional gas production of 7 MMscfd and Bukit Tua Phase 3 to produce 14 thousand BPD of oil and 30 MMscfd of gas. Including JTB, these three projects will provide additional oil production of 14 thousand bpd and gas of 367 MMscfd.

Investor Daily, Page-9, Saturday, Nov 13, 2021

The Rokan Oil Block Deposit Rp. 2.7 T

 

Only 2 Months Managed by Pertamina.

    The Rokan Block contributed Rp 2.7 trillion to state revenue after 2 months of being managed by PT Pertamina Hulu Rokan (PHR), a subsidiary of PT Pertamina (Persero). The details. The Rokan Block paid Rp 2.1 trillion to the state and paid taxes of around Rp 607.5 billion through the sale of the state's share of crude oil.

    Minister of State-Owned Enterprises (BUMN) Erick Thohir asked for this performance to continue to be improved in order to build Indonesia's energy resilience, independence, and sovereignty.

Erick Thohir

"So in addition to meeting national energy needs, it must support job creation, business opportunities for local entrepreneurs, as well as improving people's welfare," he said.

The Rokan Block (PHR)

    Erick added that his party appreciated Pertamina's ability to respond to the challenges of managing the largest oil field in Indonesia by providing direct benefits for the country. He said that the performance of the Rokan Block was proof of the ability of state-owned companies to manage their own oil resources, not relying on foreign operators, and at the same time being able to work efficiently.

PHR

"In addition to maintaining the success of WK Rokan as one of the main producers of national oil, PHR also provides a multiplier effect on the national economy, in the form of direct benefits for the country and the region," said Erick.

Massive-Aggressive

Nicke Widyawati

    Pertamina President Director Nicke Widyawati said Rokan Block operations currently involve more than 25,000 workers. Most of these workers are local Riau residents. Therefore, according to him, this national strategic asset requires maximum support from all stakeholders for smooth operations.

"The work program for the Rokan Block is massive and aggressive. This will have an impact on opening up business and job opportunities for local communities, as well as increasing the value of an investment in Riau," She said.

"We have discussed and coordinated with the Riau Regional Government regarding the potential for additional taxes for the region so that our contribution will be more real," Nicke Said.

    For information, the Rokan Block is the main producer of national oil with a contribution of 25 percent. The block, which was discovered in 1941 and started production in 1951, plays an important role in meeting the national target of producing 1 million barrels of crude oil per day (BPD) and 12 billion cubic feet of gas per day (BSCFD) by 2030.

    Since Pertamina took over on August 9, 2021, the intensity of operating activities in the Rokan Block has increased in line with the target of drilling 161 new wells by year. In the last two months, Pertamina has drilled more than 79 wells by operating 16 rigs. 

    Meanwhile, in 2022, Pertamina targets to drill 500 new wells. So it is hoped that the increase in activity in the Rokan Block will be able to encourage economic activity in Riau.

Surya, Page-5, Monday, Nov 8, 2021

Pertamina Rokan Deposits IDR 2.7 Trillion to the State

    The Rokan Block is the main producer of national oil with a contribution of 25 percent.

    The operating activities of the Rokan Working Area (WK) provide direct benefits to the state, region, and the surrounding community. PT Pertamina Hulu Rokan (PHR) remitted to the state through operations in the Rokan Work Area (WK), Riau. 

PHR

    Two months after managing WK ​​Rokan, PHR was noted to have contributed state revenues through the sale of state crude oil of around Rp. 2.1 trillion and tax payments of around Rp. 607.5 billion, including taxes to the regions.

"This contribution is one concrete proof of how the presence of upstream oil and gas business activities in this case PHR operations provide direct benefits to the state and region. WK Rokan is a national strategic asset that must be supported by smooth operations. Finally by all stakeholders,” said PHR President Director Jaffee A Suardin.

    Jaffee said the operation of WK Rokan is currently supported by more than 25 thousand workers, most of whom are local Riau residents. According to him, business and job opportunities for local communities are becoming more open, the investment value in Riau is also increasing.

    Jaffee said that recently, PHR had discussed and coordinated with the Riau Provincial Government regarding the potential for additional taxes for the region. One of them was triggered by the change in the production sharing contract scheme from previously using a cost recovery scheme to a gross split.

"WK Rokan is one of the backbones of efforts to achieve the national production target of one million barrels of oil per day (BPD) and 12 billion cubic feet of gas per day (BSCFD) in 2030. Production of WK Rokan contributes almost 25 percent of national oil production," said Jaffee.

Erick Thohir

    Minister of State-Owned Enterprises (BUMN) Erick Thohir appreciated Pertamina Hulu Rokan's ability to respond to challenges in managing oil fields in WK Rokan. He emphasized that this was a testament to the ability of state-owned companies to manage their own oil resources, not to depend on foreign operators, and to work efficiently.

"I appreciate Pertamina Hulu Rokan's ability to answer the challenge in managing the largest oil field in Indonesia. In addition to maintaining the success of WK Rokan as one of the main national oil producers, PHR also provides a multiplier effect on the national economy, in the form of direct benefits for the country and the region," said Eric.

The Rokan Block (PHR)

    It is noted that starting August 9, 2021, the Rokan Block, which has been managed for 97 years by PT Chevron Pacific Indonesia (CPI), was taken over by PHR. WK Rokan is the main producer of national oil with a contribution of 25 percent, the Rokan Block which was discovered in 1941 and started production in 1951 plays an important role in meeting the national target of national crude oil production. Erick hopes that PHR's success in managing the Rokan Block will continue to be improved.

Nicke Widyawati

    President Director of PT Pertamina (Persero) Nicke Widyawati said the work program for WK Rokan was massive and aggressive. Since PHR was taken over, the intensity of Operational activities at the Rokan WK has increased in line with the target of 161 drilling wells until the end of 2021.

    In the last two months, PHR has drilled more than 79 wells operating 16 rigs. Next year, PHR targets drilling 500 wells so that increased activity in WK Rokan will be able to increase economic activity in Riau.

    The Rokan block has an area of ​​6,453 square kilometers (km) with 10 main fields, namely Minas, Duri, Bangko, Bekasap, Balam South, Kotabatak, Farmers, Pematang, Petapahan, and Pager. Based on the Decree of the Minister of Energy and Mineral Resources Number 1923 K/10/MEM/2018 dated August 6, 2018, the government decided PT Pertamina (Persero) through its affiliate PHR as the manager of Rokan after August 8, 2021, with 100 percent participating interest/PI ownership, including 10 percent which will be offered to Regional Owned Enterprises (BUMD).

Republika, Page9, Monday, Nov 8, 2021

Rokan Block Oil Working Area Contributes to State Revenue of Rp 2.7 T

    Minister of State-Owned Enterprises (BUMN) Erick Thohir appreciated the performance of PT Pertamina Hulu Rokan (PHR) in managing the Rokan Block. In the two months since taking over, PHR has contributed to state revenues of Rp 2.7 trillion. 

Erick Thohir

    Erick detailed that the Rokan Working Area (WK) had paid Rp 2.1 trillion to the state and paid taxes of around Rp 607.5 billion through the sale of the state's share of crude oil. In addition, it provides a multiplier effect on the national economy.

"This shows that SOEs are capable, not dependent on foreign operators, and can work efficiently," he said.

    Erick hopes that this achievement can continue to be improved. Because the benefits are very large for the nation and state.

"In addition to meeting national energy needs, it must support job creation, business opportunities for local entrepreneurs, as well as improving community welfare," he said.

Nicke Widyawati

    President Director of PT Pertamina Nicke Widyawati added that the operation of the Rokan WK is supported by more than 25 thousand workers. The majority are local Riau residents. Therefore, these national strategic assets require maximum support from all stakeholders for smooth operations so that they have an impact on opening up business and job opportunities for local communities.

"We have discussed and coordinated with the Riau Regional Government regarding the potential for additional taxes for the region so that the contribution we make is more real," said Nicke Wiyawati.

    Since PHR was taken over, the intensity of WK Rokan's operations has increased. In line with the target of 161 wells being drilled by the end of this year. In the last two months, his party has drilled more than 79 wells by operating 16 rigs.

"Next year, it is targeted to drill 500 wells so that increased activity in the Rokan WK will be able to increase economic activity in Riau," She said.

Jawa Pos, Page-3, Monday, Nov 8, 2021

Pertamina Synergizes with ExxonMobil

 

    Erick Thohir wants SOEs to follow the principles of a green economy in transforming their business.

Erick Thohir

    PT Pertamina Holding synergizes with ExxonMobil in the development of carbon capture and utilization and storage (CCUS) technology. The cooperation was carried out by Pertamina in line with the business transformation steps towards a green economy.

“The application of CCUS technology is part of Pertamina's energy transition to clean energy agenda.

Nicke Widyawati

    This low-carbon technology will support Pertamina's business sustainability in the future," said Pertamina President Director Nicke Widyawati.

    Nicke and ExxonMobil Indonesia President Irtiza H Sayyed have signed a memorandum of understanding at the United Nations Climate Change (PEB) Summit in Glasgow, Scotland, Monday (Nov 1, 2021).

    Nicke said the challenge in developing CCUS lies in the large investment value and the economic value that is not yet ideal. In responding to this challenge, Pertamina continues to synergize and cooperate with various world oil and gas companies so that it can accelerate the implementation of CCUS through technology transfer, joint development, and increased capacity building. Together with ExxonMobil, Nicke added, Pertamina will also develop the application of low-carbon technology to achieve net-zero emissions in promoting global climate goals.

    Nicke explained that the CCUS technology was applied through the application of a carbon dioxide (CO2) injection process into the subsurface layer to be applied in depleted reservoirs in Pertamina's working area, as well as assessing the potential for hubs and cluster schemes. Nicke said Pertamina had initiated several CCUS projects in the oil and gas field with the potential to reduce carbon dioxide up to 18 million tons in relation to reducing emissions in the upstream sector.

    One of the CCUS technology developments was carried out in the Gundih Field, Cepu, Central Java, which is integrated with Enhanced Gas Recovery (EGR) technology and has the potential to reduce around 3 million tons of CO2 in 10 years, including increasing oil and gas production. Nicke said the project is planned to be operational in 2026.

ExxonMobil

    Nicke added that Pertamina and ExxonMobil will also study the sharing of technical subsurface data needed for the assessment of subsurface formation as a place to store CO2 and its characteristics at certain locations in Indonesia. The two companies will also review the sharing of infrastructure data including data on pipelines, facilities, and wells to evaluate the reuse of existing infrastructure for transportation. 

    Nicke said the government has set a roadmap for the transition of energy from fossil to new and renewable energy that is in line with the principles of energy security, accessibility, and affordability.

"From that perspective, Pertamina will continue to strive for a balance between the climate change agenda and energy security in Indonesia and also for the company's sustainability," said Nicke.

State-Owned Enterprises (BUMN)

    The Ministry of State-Owned Enterprises (BUMN) continues to encourage Pertamina to synergize with various parties, including global companies in the development of CCUS technology.

"This CCUS collaboration is a step to make it happen. This partnership is very important to reduce the effect of greenhouse gases and increase the national oil gas production capacity," said SOE Minister Erick Thohir.

    The Ministry of SOEs has also introduced a sustainable policy, namely an environmentally friendly lifestyle (eco-lifestyle). Erick said the policy was aimed at creating a better place for the future generation of Indonesia through green energy initiatives.

Credit Photo by Christopher Furlong / POOL / AFP

President Joko Widodo - PM Boris Johnson

    In a bilateral meeting between President Joko Widodo (Jokowi) and British Prime Minister (PM) Boris Johnson on the sidelines of the COP26 World Leaders Summit, at the Scottish Event Campus, Glasgow, Scotland, Monday (1 Nov 2021), Erick said, international trust The positive projection of Indonesia's economic growth in the future must be responded with full responsibility.

    According to Erick, the plans of several countries to invest to develop and accelerate the green economy in Indonesia will be a challenge for SOEs. Erick said that if President Jokowi emphasized green investment and technology as the key to the green economy transition, Johnson conveyed the UK's interest in investing in the form of export credits that could be used for the green economy transition.

    Erick sees this as an opportunity that must be implemented so that the transformation carried out by SOEs must uphold the principles of clean energy transformation while accelerating the green economy.

"I hope that our energy SOEs, such as PLN, Pertamina, and the mineral and coal industries can respond and carry out the transformation of clean energy and reduce carbon emissions. After all, this is a shared responsibility for the sustainability of our environment," said Erick.

    Erick added that SOEs' intensive efforts to transform by carrying out various programs and business model innovations must view the responsibility to reduce emissions not as a burden, but also as an opportunity to carry out a low-carbon economic transformation.

Republika, Page-9, Thursday, Nov 4, 2021

Three Upstream Oil and Gas Projects Ready to Onstream

    The Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas stated that as many as three upstream oil and gas projects are projected to start operating or onstream in the remaining time of this year.

Blogger Agus Purnomo in SKK Migas

    SKK Migas Deputy Operations Julius Wiratno said that of the 12 projects that have been onstream until the third quarter of 2021, there are still 3 more projects that are being prepared to increase production by around 3,000 barrels of oil per day/BOPD.

    Julius said Pertamina EP's SP Bambu Besar (Asso) project is estimated to provide additional gas production of 7 MMscfd, the Bukit Tua Project Phase 3 Petronas Carigali Ketapang II Ltd. with the potential for additional production of 14,000 BOPD and 30 MMscfd of gas. Then, one of the National Strategic Projects (PSN) for upstream oil and gas, namely Jambaran Tiung Biru Pertamina EP Cepu with a gas production potential of 330 MMscfd.

Blogger Agus Purnomo in Petronas Carigali Ketapang

"SP Bambu Besar Pertamina EP is about to be completed, the plan is to onstream this November. Bukit Tua Phase 2B will stream in December," he said.

    Meanwhile, as many as 12 oil and gas projects have successfully streamed, making the 2021 target 100% realized. The project provides additional national oil and gas production of 14,486 BOPD and 489 MMscfd of gas, with a total investment of US$1.5 billion, or equivalent to Rp21.75 trillion.

    Julius said, if all these projects can be realized, the investment figure will increase to US$ 2.92 billion or equivalent to Rp. 42.34 trillion. According to him, the acceleration of completion of upstream oil and gas projects cannot be separated from the impact of the high increase in world oil prices, above US$80 per barrel.

"World oil prices that continue to increase throughout 2021 encourage KKKS to accelerate the completion of upstream oil and gas projects so that in the third quarter of 2021 the target has been achieved 100 percent. The performance of the completion of upstream oil and gas projects will have a positive impact on accelerating the realization of upstream oil and gas investment until the end of 2023," he said.

    Referring to the results, said Julius, SKK Migas is optimistic that the entry rate at the beginning of next year will be at an optimal level.

    Regarding the JTB project, Julius said there is still a construction stage, pre-commissioning. According to him, the Covid-19 pandemic has had an impact on the progress of the project.

    Julius said the Covid-19 pandemic also had an impact on the limited workforce that could be deployed to the field. Weather constraints are one of the inhibiting factors for the current construction completion.

    Progress is about 94% more. We are still trying to get gas in at the end of 2021," he said.

PEPC

    Previously, PEPC President Director Awang Blueuardi said that the synergy between SOEs in the construction of the JTB gas unitization field development project belonging to Pertamina EP Cepu (PEPC) Zone 12 Eastern Indonesia Subholding Upstream Pertamina was expected to remain solid even though it was carried out in the midst of the Covid-19 pandemic.

    He said there were many challenges faced by this project during the pandemic, but his party continued to strive to develop innovations and coordinate so that they could continue to solve them.

Bisnis Indonesia, Page-4, Thursday, Nov 4, 2021