Almost Complete Design, Construction Phase Next Year

Tuban Grass Root Refinery Project

    The oil and gas industry is increasing downstream development. Pertamina has also increased the progress of the Tuban Grass Root Refinery (GRR) refinery project.

Rosneft

    Director of Development of PT Pertamina Rosneft Processing and Petrochemical (PRPP) Eriyadi stated that his party had entered the finalization of the design details of the project.

    The stage called Front End Engineering Design (FEED) reached 90.99 percent at the end of last month. This figure is higher than the first quarter target, which is 87.84 percent. With this progress, he estimates that the project design can be completed in May.

"This design stage is very important. The completion of this stage is equivalent to 49 percent of the oil refinery construction process," he said.

Tecnicas Reunidas SA (TRSA)

    The FEED activity has been running since March 16. PRPP collaborated with Tecnicas Reunidas SA (TRSA), an engineering company from Spain, as a design contractor. In the FEED stage, TRSA develops the design of open-art units, off-site facilities, and utilities, as well as overall design oversight and integration.

    In parallel, it also cooperates with other partners. Among them, are PT. Perusahaan Listrik Negara (PLN) for the supply of electricity at the construction stage and Kris Energi for the supply of gas. Supporting infrastructure such as the Demak-Tuban toll road, reactivation of the Babat-Tuban city railway, as well receive support from other stakeholders.

"We have received other tax incentives to support the Tuban GRR refinery," he said.

    The land clearing process has also entered stage IV. In that phase, the target is an area of ​​221.17 hectares. The completion of stage IV land clearing as of March 31 has reached 49.01 percent. This figure is faster than the target, which is 45.3 percent.

    Eriyadi added, that after the FEED is completed, the company will enter the final investment decision (FID) process at the shareholder level.

"Furthermore, the engineering, engineering, procurement, construction/EPC phases are expected to start in the third quarter of 2023," he said.

Jawa Pos, Page-3, Wednesday, April 27, 2022

#Rosneft, #Tecnicas Reunidas SA (TRSA)

Phase II Oil and Gas Working Area Auction Brings US$ 14 Million Investment

    A total of four Working Areas (WA/WK) were offered in the Phase II Oil and Gas Block Auction which was held in 2021, all of which attracted investors, and resulted in an investment commitment of US$ 14.14 million and a Signature Bonus of US$ 1.2 million.

BP

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the working area auctioned, namely the North Ketapang Working Area, was won by Petronas Carigali Ketapang II Ltd., the Agung I Working Area was won by BP Exploration Indonesia Limited. 

Blogger Agus R Purnomo in Petronas Carigali Ketapang

    The Agung II Working Area was won by BP West Papua I Limited and the Bertak Pijar Quail Working Area was won by PT Mitra Multi Karya.

Auction For Oil and Gas Working Area Phase II 2022

    The investment details for the Firm Commitment and Signature Bonus are US$ 8.1 million and US$ 500 thousand for Petronas Carigali (PC) Ketapang. BP Exploration has a definite commitment of US$ 2.5 million and a Signature Bonus of US$ 100 thousand. Then the BP West Papua Definite Commitment investment is US$ 1.5 million and the Signature Bonus is US$ 100 thousand.

    Meanwhile, Mitra Multi's Fixed Commitment investment is US$ 2 million and the Signature Bonus is US$ 500 thousand. Tutuka said that he was very interested in the Working Area auction this time, giving a positive signal for Indonesia's upstream oil and gas investment at a time of challenging global conditions. 

    In the next stage after the announcement, the Government will send an official notification of the winner and the winner of the auction must submit this letter of intent within 14 working days of receiving the notification of the winner.

    In accordance with the Regulation of the Minister of Energy and Mineral Resources Number 35 of 2021, the signing of the Cooperation Contract is carried out no later than 60 calendar days from the announcement of the winner today.

"For this reason, we hope that the winning bidders can immediately prepare the required documents for signing the KKKS," he said.

Regarding Offer privileges

    Participating Interest 15% PT Pertamina (Persero), Pertamina gets 15% Participating Interest Offering Shares in accordance with the provisions in the Bid Document in accordance with the ESDM Ministerial Regulation Number 35 of 2021, the Government will also submit this to Pertamina.

    In addition to the announcement of the Working Areas, there is currently a Regular Auction for the Oil and Gas Working Area Phase II 2021 which consists of four Working Areas, namely Karaeng, Maratua II, Pope, and West Palmerah. The schedule for access to Bidding Documents is still open until March 24, 2022, while the submission of Participation Documents is from March 24 to 25, 2022.

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the working area being auctioned, namely the North Ketapang Working Area was won by Petronas Carigali (PC) Ketapang II Ltd, and BP Exploration Indonesia Limited won the Agung I Working Area. The Great II Working Area was won by BP West Papua I Limited and the Pijar Puyuh Bertak Working Area was won by PT Mitra Multi Karya.

Investor Daily, Page-10, Monday, March 21, 2022

FRESH WIND FROM PETRONAS AND BP

 

    The national upstream oil and gas industry gets fresh air from the commitments of Petronas and BP in three of the four work areas offered by the government through the Ministry of Energy and Mineral Resources.

BP

    The inclusion of Petronas and BP in the Working Areas (WK) or oil and gas blocks North Ketapang, Agung I, and Agung II is considered as the success of the government is seeking to improve the investment climate in the country.

    Moshe Rizal, Executive Director of the Association of National Oil and Gas Companies (Aspermigas), said Petronas in the North Ketapang WK, and BP in the Agung I and Agung II WKs is a good thing. The reason is that the two companies are large National Oil Company (NOC) and International Oil Company (IOC).

Blogger Agus Purnomo in Petronas PC Ketapang 

"We hope like that, we will see the realization in the next three years," he said.

    Moshe also hopes that the government will continue to support oil and gas companies in realizing their investment in the country, especially when conducting exploration activities.

"The challenges that will be faced are both technical and non-technical, and the exploration stage is always the riskiest period."

    When announcing the winner of the direct bid bidding for the oil and gas Working Area phase II 2021, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji said that the terms and conditions offered by the government this time received a good response from the cooperation contract contractors or KKKS.

“We also received input from KKKS that the terms and conditions offered in this auction are very attractive, and their terms are solid. We can see that in Working Area with high risk, the split can be up to 50-50, and if the risk is reduced, the government's share will be bigger," he said.

    He said the government would seek to improve the investment climate in the national upstream oil and gas industry and offer 17 other Working Areas this year.

    To note, the government received a definite investment commitment of US$14.14 million from Petronas, BP, and Mitra Multi Karya in the auction. In addition, there is also a signature bonus of US $ 1.2 million obtained by the State.

Working Area Ketapang Block Petronas 

    In detail, Petronas through PC Ketapang II Ltd. will conduct a G&G study at WK North Ketapang with a budget of US$1 million, 3D seismic covering an area of ​​300 square kilometers worth US$6.39 million, multi-client uplift fee from 3D seismic covering an area of ​​​​262 square kilometers US$750,000, and a signature bonus of US$500,000

    In WK Agung I, BP through BP Exploration Indonesia Limited will conduct a G&G study with a budget of US$500,000, 2D seismic covering an area of ​​2,000 square kilometers worth US$2 million, and a signature bonus of US$100,000. As for WK Agung II, BP through BP West Papua I Limited is ready to conduct a G&G study worth US$500,000, 2D seismic covering an area of ​​2,000 square kilometers with a value of US$1 million, and a signature bonus of US$100,000.

    Then Mitra Multi Karya will do a workover of eight wells with a budget of US$2 million, and a signature bonus of US$500,000.

    Tutuka said that the investment commitments from the three companies were a positive signal for national upstream oil and gas investment in times of challenging global conditions.

Blogger Agus Purnomo in SKK Migas

FULL SUPPORT

    Head of SKK Migas Dwi Soetjipto ensured that his party will provide full support so that the management of the North Ketapang Working Areas (WK) ​​can run smoothly until new reserves are found.

    According to him, the election of Petronas as the manager of North Ketapang shows that Indonesia's upstream oil and gas investment is still attractive to world-class investors.

“Petronas is one of the largest oil and gas companies in the world. With the additional investment in Indonesia, hopefully, this will be able to attract other world-class investors to follow Petronas' footsteps."

    Petronas Executive Vice President and Chief Executive Officer of Upstream Adif Zulkifli said his party was very happy with the results of the auction. Moreover, Working Areas (WK) North Ketapang is located close to where the company discovered oil reserves last year.

"We will continue to strengthen our upstream oil and gas business to provide value and contribute to the development of the energy industry in Indonesia. As a progressive energy and solutions partner, Petronas is committed to providing Indonesia with a safe and reliable energy supply," he said.

    Separately, BP through its official statement stated that Working Areas (WK) Agung I and II are unexplored areas. The two Working Areas (WK) with very significant gas sources are close to the increasing demand for gas.

"The addition of Agung I and Agung II Blocks to our portfolio reflects our ongoing commitment to invest and grow our business in Indonesia," said BP Regional President Asia Pacific Nader Zaki.

Bisnis Indonesia, Page-4, Monday, March 21, 2022

Strategic Nigeria-Morocco Gas Line

    The Ukraine war, which has escalated into an energy war, is not expected to contribute to the strategic value of the Nigeria-Morocco gas line project. Why is that? Europe, with 40 percent of its gas needs imported from Russia, must now immediately look for alternative gas sources after the United States and Europe maneuvered to impose sanctions on Russia after the military invasion of Ukraine.

Raja Maroko Muhammad VI

    One alternative source that is in high demand today is the Nigeria-Morocco gas line project. The Nigeria-Morocco gas line project, as reported by the Al Jazeera website, Tuesday (8/3), was launched in December 2016, when the King of Morocco, Muhammad VI, visited Abuja and met the Nigerian President Muhammadu Buhari.

Muhammadu Buhari

    At that time, Muhammad VI and Buhari agreed to conduct a study on the construction project of the Nigeria-Morocco gas line to Europe along 5,560 kilometers. The study began in May 2017. Furthermore, in June 2018, Nigeria and Morocco announced the construction of a Nigeria-Morocco gas line project to Europe which will pass through 13 countries in West Africa and North Africa. The project value reached 30 billion US dollars.

Gas line from Nigeria to Morocco

    In June 2021, the construction of the pipeline from Nigeria to Morocco began. Its construction will last 25 years. Saudi Arabia, Qatar, and the United Arab Emirates support the project and will principally invest in the project. The Jeddah-based Islamic Development Bank (IDB) on January 6 signed an agreement with Morocco and Nigeria. IDB will spend 15.45 billion US dollars for the construction of the gas pipeline.

ECOWAS

    The Nigeria-Morocco gas line megaproject will provide great benefits to the West African Region, North Africa, and Europe in the form of jobs, electricity supply in many areas of West Africa that are not yet electrified, and can help with fertilizer production. The project is considered to be strengthening the economic cooperation of the West African Economic Community (ECOWAS), which consists of 15 West African countries. The pipeline is said to pass through most of the ECOWAS member countries.

    Two Arab countries in North Africa, Morocco, and Mauritania have applied to join ECOWAS. Europe is also now paying attention to the project. Its existence is seen as part of the diversification of gas sources. So far, Europe is very dependent on Russia.

Strategic

    The outbreak of the Russo-Ukrainian war since February 24, followed by Western bloc sanctions, namely stopping European imports of Russian gas, has made the Nigeria-Morocco gas route project more strategic for Europe. Moreover, Germany has frozen the Nord Stream 2 project, namely the gas pipeline project from Russia to Europe via Germany, immediately after Russia attacked Ukraine.

the Nord Stream 2 project

    So far, the Nord Stream 2 project is the toughest rival of the Nigeria-Morocco gas pipeline project because the Nord Stream 2 project line is much shorter (about 1,230 kilometers) than the Nigeria-Morocco gas pipeline (5,560 kilometers). 

    However, Nord Stream 2's investment value is much lower so gas prices from the Nigeria-Moroccan pipeline are more expensive. However, Germany's action to freeze the Nord Stream 2 project left the Nigeria-Morocco gas line project without any more serious competitors.

    The only rival for the Nigeria-Morocco gas line will be the East Med gas route, which is a gas pipeline project in the Eastern Mediterranean Sea through Greek territory for gas exports to Europe. According to the US agency for geological studies, oil and gas reserves were found in an area of ​​83,000 square kilometers in the eastern Mediterranean Sea. 

    It is estimated that the mine has gas reserves of up to 287 trillion cubic meters and liquid oil of 1.7 billion barrels. Almost certain, path Nigeria-Moroccan gas, the East Med gas line plus gas from Qatar, can become the new backbone of gas supply to Europe, replacing Russia.

Saad Sherida-Al-Kaabi

    It is impossible to cover Europe's enormous gas demand from a single source. There must be a collaboration between several large gas sources to be able to meet the European market. Qatar's Minister of Energy Affairs, Saad Sherida-Al-Kaabi, at the summit of world gas exporters in Doha on February 22, emphasized that Qatar is willing to increase gas supplies to Europe, but on the other hand, Qatar is unable to meet Europe's gas needs alone.

    This is because Qatar has long-term contracts for gas exports with many other countries. Al-Kaabi's statement shows Qatar's need to collaborate with gas sources in other regions, such as the East Med and the Nigeria-Morocco axis. This cooperation is necessary to fulfill the European gas market.

Kompas, Page-4, Friday, March 11, 2022

Ukraine Crisis Turns Into Energy War

 

    The Ukrainian crisis, which was actually a cooperative relationship between the United States and Russia, turned into an energy war. After being subjected to a barrage of economic sanctions, Russia is now retaliating.

    The Ukrainian crisis that took place with dozens of economic sanctions from Western countries on Russia developed into an "energy war". The United States stops energy imports from Russia. In return, Russia will also retaliate for its energy exports to America and Europe.

    President of the United States (US) Joe Biden in Washington DC, Tuesday (8 March 2022) UTC time or Wednesday (9 March) West Indonesia time, announced the termination of all imports of oil, gas, and coal from Russia to his country. This he called as part of pressure for Russia to stop attacks on Ukraine. Similar moves are being planned by two UK-based oil giants, BP and Shell.

BP

“We banned all imports of Russian oil, gas, and energy. This means Russian oil is no longer welcome at US ports," Biden said.

sHell

    The move immediately responded to Russian President Vladimir Putin by banning the export and import of raw materials and a number of other goods. In Moscow, Putin issued a decree banning the export and import of raw materials to ensure the safety and sustainability of the industry in Russia. The policy is temporarily implemented until December 31, 2022.

Government and parliament

    Russia will soon decide on commodities that are on the banned list. Moscow ensures there will be no ban on private consumption. The prohibition only applies to industrial consumption. 

Alexander Novak

    Before the decree was announced, Russian Deputy Prime Minister Alexander Novak announced that Russia had the right to deliver gas to Europe. However, he said the termination would be detrimental to all parties.

    Previously, the Ukrainian crisis had raised oil prices above 100 US dollars per barrel. However, with the announcement from Washington and Moscow, world oil prices skyrocketed. The price of Brent crude oil had reached the price level of 130.38 US dollars per barrel.

    Meanwhile, West Texas Intermediate oil price reached 125.58 US dollars per barrel.

    The increase in oil prices always raises the prices of other global commodities. This is also what is currently happening. For example, nickel and tin are widely owned by Indonesia the price rose more than 4 percent. The metal price increase was also noted in palladium, very important in the semiconductor industry. As much as 40 percent of the world's supply comes from Russia.

Fatih Birol

    Oil prices were discussed at an energy conference in Paris. Executive Director of the Energy Agency (IEA) Fatih Birol said the IEA could release more international sugar oil stocks creating fuel prices. The IEA represents 31 industrialized countries. Russia is not included.

    The Executive Director of the Reforminer Institute, Komaidi Notonegoro, said the increase in oil prices would further depress the balance of the national oil and gas trade. This is because Indonesia is an importer of clean oil and national energy consumption for oil and gas reaches 51 percent. 

    In the end, the oil and gas trade balance deficit will get bigger. In fact, additional foreign exchange earnings from rising commodity prices. Komaidi is worried that he will not be able to cover the need for additional foreign exchange to finance oil and gas imports.

    As an illustration, the need for foreign exchange for imports of oil and gas can reach around 49.27 billion US dollars assuming an oil price of 120 US dollars per barrel. The needs consist of imports of oil and fuel products worth 44.04 billion US dollars and LPG imports worth 5.23 billion US dollars.

"With such an illustration, foreign exchange needs for oil and gas imports could reach almost 35 percent of Indonesia's current foreign exchange reserves, which are recorded at around US$ 141 billion," he said.

    In fiscal matters, Komaidi is of the opinion that every increase in the oil price of 1 US dollar per barrel will increase oil and gas revenues in the 2022 State Budget (APBN) by around Rp. 3 trillion. However, when the price of oil increases, it will also increase the need for additional subsidies and compensation for oil and gas in larger amounts.

    Furthermore, he added, rising prices triggered by geopolitical conflicts and wars now confirm that even in a transition era, energy, security of oil and gas supply are major issues that cannot be ignored.

    Separately, the Institute for Essential Service Reform (IESR) Transformation Program Manager, Deon Arinaldo, said that when gas supplies from Russia were hampered, European countries would start thinking about not focusing on energy commodities. Indonesia can make an energy transition. However, the challenge for Indonesia is to attract new and renewable energy investments into the country.

“There are many business/industry players who are willing to invest in renewable energy, they just need how the government can facilitate it. It is time for the energy transition to be seen as a strategy for development and economic growth," he said.

Kompas, Page-1, Thursday, March 10, 2022

SKK Migas Expects Onstream Schedule to Match POD

    The Abadi gas field project in the Masela Block is delayed in production in 2030. Meanwhile, the Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas still hopes that the onstream schedule will match the development plan.

Inpex Masela Ltd and Shell

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) asked Inpex Masela Ltd and Shell as the operator of the Masela Block to carry out the Masela Block Liquefied Natural Gas (LNG) investment in accordance with the approved Plant of Development (PoD). The Masela Block LNG project is agreed to be completed and start production by the end of 2027.

Blogger Agus Purnomo in SKK Migas

    The Deputy of Operations for the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas), Julius Wiratno stated that his party continues to push for the project to be completed in accordance with the approved PoD. SKK Migas also said that it had not yet received a revision proposal from Inpex.

Inpex

"SKK Migas to this day continues to push for implementation according to the approved PoD, for immediate production as soon as possible. We have not received a revision proposal from Inpex at all and we are still fighting for acceleration efforts," said Julius.

    Julius emphasized that the government through SKK Migas is still encouraging Inpex's investment in Masela, this must be realized immediately. Because some preparatory work has been and is being started, such as the approval of the Environmental and Impact Analysis (AMDAL), metocean surveys, and land acquisition.

Takayuki Ueda

    Previously, Inpex CEO, Takayuki Ueda explained, that Inpex is conducting comprehensive size studies such as the introduction of carbon capture, utilization, and storage facilities, known as CCUS.

the Masela Block LNG

    The CCUS installation is intended to make the Masela Block LNG project more environmentally friendly, but the project could be delayed until 2030.

"SKK Migas has asked Inpex to immediately revise the POD, if that is what is desired, for us the planning team, in particular, can immediately conduct a review and evaluation," explained Julius.

    As is known, currently Inpex Masela Ltd and Shell as the operator of the Masela Block are revising the PoD of the oil and gas working area that is included in the National Strategic Project (PSN). The PoD revision relates to the inclusion of CCUS. This is done so that the assets of the Masela Block in this case the Masela LNG can be said to be competitive because it has green energy requirements.

    The majority of Masela Block's participating shares are 65 percent owned by Inpex Masela. The rest is owned by Shell. But Shell has said it will leave the block. However, the plan failed to materialize because there were no investors who wanted to buy Shell shares.

    In addition to the Masela Block, SKK Migas also hopes that the Indonesia Deepwater Development (IDD) project located in the Kutai Basin, East Kalimantan, can be completed immediately and start production in the fourth quarter of 2025. The IDD project is a development project for five deep-sea gas fields that are carried out in an integrated manner to meet the gas needs of the domestic market and the Bontang LNG Plant. The IDD project has production reaching 844 MMscfd for natural gas and 27,000 barrels of oil per day (BOPD).

the IDD project Chevron

    In the IDD project, Chevron acts as the operator. The company controls 62% of the participating interest or interest (PI). The rest is controlled by ENI with a 20% stake and Sinopec Group 18%. However, the continuation of this mega project is still uncertain. Because, since 2020, Chevron declares to discontinue the IDD project.

ENI

"For this IDD project, the update now is that the operator Chevron Pacific Indonesia (CPI) is still looking for a replacement operator," said Julius.

DIFFICULT MISSION

    On the other hand, the government has targeted oil lifting of 1 million BOPD and gas of 12 BSCFD by 2030. However, this target is impossible to achieve without new large-scale oil and gas projects. Previously, the government through the Directorate General of Oil and Gas together with SKK Migas and cooperation contract contractors [KKKS] had identified the planned production profile of each KKKS and it was known that total oil production would reach 1 million BOPD in 2030.

    The government has also prepared several strategies to increase production, namely routine work programs such as infill drilling/step out in existing fields, and workover/well service. In addition, acceleration of the transformation of resources into production is also carried out, by accelerating new PoDs and pending PODs.

    An energy and oil economist from Trisakti University Pri Agung Rakhmanto said that without a new large-scale oil and gas project the oil lifting target of 1 million bopd would not be possible to achieve.

"To achieve the oil and gas production target of 12 MMscfd and 1 million BOPD, there needs to be a new project on a large scale," said Pri Agung.

    According to him, efforts to increase the production of existing oil and gas fields are not sufficient to achieve the government's ambitious targets.

“If it's EOR, we need EOR on a large-scale oil and gas field. The current EOR has just been done on a small scale. EOR and other efforts can only stop the rate of decline in production in existing fields so that it doesn't decline further," he explained.

    Pri Agung is of the view that this 1 million BOPD is not worthy of being called a target because there is no clarity on the details of the work program. For example, from which field the production target was produced.

    The Executive Director of the Reforminer Institute Komaidi Notonegoro also said the same thing. According to him, without finding large reserves, the target of 1 million BOPD is just wishful thinking.

"To be able to reach 1 million BOPD, it is calculated that additional production from large-scale oil and gas fields or the majority is generated from large-scale investments made by major International Oil Companies [IOCs]," said Komaidi.

Jambaran Tiung Biru in Central Java

    Currently, Indonesia has four giant oil and gas projects, namely, Jambaran Tiung Biru in Central Java, the Abadi Field in the Masela Block in the Arafura Sea, IDD in the Kutai Basin in East Kalimantan, and Tangguh Train 3 in Papua. Unfortunately, these projects are expected to be completed longer than the target set. The reason is, recently, the foreign oil and gas giant that manages this mega project has stated that it will leave Indonesia.

Bisnis Indonesia, Page-4, Wednesday, February 23, 2022

SKK Migas - KUFPEC Discovers New Oil and Gas Reserves in Natuna

 

    SKK Migas KUFPEC monitoringoil.com - Kuwaiti oil exploration company K.S.C.C. (KUFPEC) through a company operating in Indonesia, the Cooperation Contract Contractor (KKKS) KUFPEC Indonesia (Anambas) BV (KUFFPEC Indonesia) which has a contract with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), has discovered oil and gas reserves new. 

Blogger Agus Purnomo in SKK Migas

    This is based on the results of drill stem tests conducted at the Anambas-2X exploration well in the Anambas Block, Natuna Sea, off the coast of Indonesia.

    The block is operated by KUFPEC Indonesia (Anambas) B.V. (KUFPEC Indonesia), with KUFPEC Indonesia holding all 100% of participating rights. As part of the drilling program, KUFPEC Indonesia conducted five drill stem tests in Gabus Bawah, Intra Keras, and Arang Formation. 

KUFPEC

    This test resulted in a stable combined flow rate of 40 million cubic feet of natural gas (MMscfd) and 1,240 stb/d of condensate. The results of the well-deepening program also reflect the positive side of the well's original purpose and identify potential opportunities for further exploration in the deeper formations.

    This exciting discovery marks the first operational offshore exploration discovery for KUFPEC and demonstrates KUFPEC's growth and potential as an operator of offshore oil and gas projects in accordance with the KUFPEC 2040 strategy. 

    The well was drilled at a depth of 288 feet, using a jack-up rig to reach a total depth of 10,509 feet. SKK Migas Deputy for Planning Benny Lubiantara expressed his appreciation for the discovery of the Anambas-2X exploration drilling well operated by KUFFEC Indonesia.

“This discovery shows that the oil and gas potential in Indonesia is still promising. The discovery of oil and gas reserves by KUFFEC Indonesia is the second discovery of drilling results in 2022, after previously in January 2022, new oil and gas reserves were also found in the Mahakam block by other KKKS," said Benny in a release in Jakarta.

“The discovery of exploration wells by foreign companies from Kuwait shows that Indonesia's oil and gas potential is still attractive in the eyes of international investors. We hope that this discovery will encourage international oil companies (IOCs) to invest in Indonesia,” said Benny

Investor Daily, Page-9, Saturday, Feb 12, 2022

Pertamina Hulu East Kalimantan Gets Incentives from the Government

    PT Pertamina Hulu Kalimantan Timur (PHKT), a Cooperation Contract Contractor under the supervision of SKK Migas as well as part of the Pertamina Subholding Upstream Regional Kalimantan Zone 10, officially received fiscal incentive approval from the Government of Indonesia, through the Ministry of Energy and Mineral Resources (ESDM) on January 12, 2022.

Blogger Agus Purnomo in SKK Migas

    The provision of incentives to PHKT is part of the Government's strategy in order to achieve the national oil and gas production target of 1 million barrels of oil per day and 12 billion standard cubic feet of gas per day by 2030. 

    This incentive approval is given to the incentive proposal initiated by PHKT since 2020 which refers to the Minister of Energy and Mineral Resources No. 52 of 2017 concerning Gross Split Production Sharing Contracts taking into account the economics of the field in accordance with applicable regulations.

    Based on the approval letter from the Minister of Energy and Mineral Resources No. T-24/MG.04/MEM.M/2022 dated January 12, 2022, regarding the Approval of Addition of Split to the Cooperation Contract for the East Kalimantan & Attaka Working Area, PHKT gets incentives in the form of additional profit sharing/split.

    President Director of PT Pertamina Hulu Indonesia (PHI)-Regional Kalimantan, Chalid Said Salim, said that the provision of incentives is very important to encourage the continuity of oil and gas operations and the investment needed to increase the recovery of oil and gas reserves and resources in the East Kalimantan & Attaka WK.

“With this incentive, the existing and new field development plans can be continued. This incentive can support increasing reserves and maintaining PHKT production levels so that PHKT can continue to contribute to energy supply for Indonesia," he said.

    In 2021, PHKT recorded an oil production figure of 9.3 thousand barrels of oil per day (MBOPD) and gas production of 40.2 million standard cubic feet per day (MMSCFD). PHKT will continue to strive to improve performance, especially after receiving government incentives, in order to support the investment climate and national energy security.

Investor Daily, Page-9, Saturday, Feb 12, 2022

After Selling the Land, and Now I Haven't Income

 

Surya Daily

    After Selling the Land, and Now I Haven't Income - The story of a billionaire village resident in Jenu District, Tuban, East Java, Indonesia has not yet been completed. After receiving compensation from the sale of land for the Pertamina Grass Root Refinery (GRR) oil refinery project in a local sub-district, now the bad news is coming.

Rosneft Oil Company

    This was discovered during a demonstration by residents of six villages around the joint venture company Pertamina and Rosneft from Russia, Monday (24 January). The six villages are Wadung Village, Mentoso, Rawasan, Sumurgeneng, Beji and Kaliuntu, Jenu District.

    An old man, named Musanam, a resident of Wadung Village, admitted that he regretted selling his land and house to PT Pertamina Rosneft Processing and Petrokimia (PT PRPP) a year ago. Now the 60-year-old grandfather no longer has a steady income like every harvest season. To meet the needs of daily life, he was forced to sell his cattle.

"I have sold three cows to eat and now there are three cows left," he said on the sidelines of the demonstration.

    Another resident named Mugi, aged 60 years, is another billionaire village resident. After selling his 2.4-hectare land to the state-owned company, he is now having a hard time getting an income every harvest. If you usually can get Rp 40 million at harvest, now you no longer get that result.

"In the past, I planted corn and chilies, each time I harvested Rp 40 million. Now I no longer have income, after selling the land," he said.

    He also said that his land was sold for Rp. 2.5 billion and then the money was used for daily needs, the rest he saved. Mugi remembers that Pertamina used to often visit him when he was in the fields to sell the land. All persuasion was offered, including a job offer for his son. But until now, the offer has never been realized.

"In the past, I was visited by Pertamina to want to sell the land, they promised to give jobs to my children but nothing has been realized until now," he said.

    Previously, an alliance of residents of six villages was demonstrated at the Pertamina GRR oil refinery. Around 100 people involved the Youth Association of six villages in the company's ring area, regarding PT PRPP which was considered uncooperative. The field coordinator for the demonstration, Suwarno, said that there were five demands from the community. 

    First, prioritizing affected residents regarding security recruitment. Second, all vendors at Pertamina in the recruitment of workers must coordinate with the village. Third, in accordance with the promise and development goals, Pertamina must provide opportunities and education for affected residents.

    Fourth, if Pertamina is able to employ pensioners who in fact are elderly, why are affected people who should be empowered even made it difficult to work under the pretext of age restrictions. Fifth, remove vendors and individuals within the Pertamina project scope who are not pro to the affected people.

"This action is the result of Pertamina's lack of transparency in the villages around the company. We urge the demands to be realized," he told reporters.

    Company representatives who met the protesters said they would convey the residents' demands to the leadership.

"We will convey it to the leadership," said Solikin, who is the company's representative at the location.

    Meanwhile, PT PRPP Yuli Wahyu Witranta's Corporate Affairs, when confirmed regarding the actions of residents around the company, did not provide a detailed response. From the confirmation efforts made, he replied that there would be a release. But until late at night when it was reconfirmed, Yuli replied that she couldn't approval from the International Pertamina Refinery (KPI).

Surya, Page-1, Tuesday, Jan 25, 2022

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