GRR Tuban Luxury Campus Design by Rosneft Rusia

    

Grass Root Refinery Campus Tuban by Rosneft

    Secretary General of the Ministry of Energy and Mineral Resources (ESDM/EMR) Dadan Kusdiana met with representatives of Rosneft Singapore Pte Ltd in secret to discuss the follow-up to the final investment decision (FID) of the Grass Root Refinery (GRR) Tuban project which is still unclear when it will start or wait for Russia to win the dispute with Ukraine in 5 years in 2030.

Grass Root Refinery Campus Tuban by Rosneft

    Russia is still committed to providing funding of IDR 238.25 trillion, or around US$ 14,890,625,000 billion with an exchange rate of IDR 16,000/dollar, but is it capable of realizing this super expensive project, considering that Russia still needs a lot of funds to defeat Ukraine which has not been beaten for a long time until now which requires a cost of US$ 300 million per day to "fight" with Ukraine.

Grass Root Refinery Campus Tuban by Rosneft

    GRR Tuban was deliberately designed to be very-very-very Luxury and its design was inspired by the Seven Art Academy's Behance website, of course, it requires super Jumbo costs must be provided by Indonesia and Russia and it is impossible to complete in the next 10 years according to calculations. Not to mention 4 more years in 2029 the Presidential election in Indonesia again and there will definitely be political bargaining to slow down the super Jumbo and vital project to realize Indonesia's Energy security.

Seven Art Academy's

    The Indonesian government is still questioning Rosneft's FID promises from ancient times to continue the GRR project, the continuation of which is unclear after Russia's oil and gas business was sanctioned by Nato countries due to Russia's invasion of Ukraine in February 2022 until now has not shown any signs of ending soon, even the escalation has increased after Ukrainian President Zelensky quarreled with Donald Trump and Ukraine bombed the Russian oil refinery last night.

Seven Art Academy's

    The final investment decision (FID) for the Grass Root Refinery (GRR) Tuban project will not be completed by Rosneft within 10 years, even though this project was started in 2016 since President Jokowi was still in office until President Jokowi's 10-year leadership ended until the President changed again, there is still no certainty and 10 years were wasted due to the interference of political interests designed so that Indonesia continues to import crude oil forever so that it cannot realize National Energy Independence due to the interference of political elites, and the God Father of the rent-seeking oil mafia in Indonesia with a profit of IDR 300 billion per day or US$ 18,750,000/day that cannot be released just like that by people from political parties.

Oil Mafia Indonesian

    Rosneft Russia's FID decision on the GRR Tuban project was very slow to be recognized by PT Kilang Pertamina Internasional (KPI). The FID process did miss the finalization target set by the Ministry of Energy and Mineral Resources/EMR in November 2024. The FID process was indeed late or deliberately slowed down, the public also does not know for sure.

Grass Root Refinery Campus Tuban by Rosneft

    The GRR Tuban refinery has also been approved by the Indonesian government as one of the National Strategic Projects through Presidential Regulation Number 109 of 2020 concerning the Third Amendment to Presidential Regulation Number 3 of 2016 concerning the Acceleration of the Implementation of National Strategic Projects. 

Tecnicas Reunidas, Spain

    The GRR Tuban project phase by PRPP started in 2016, 9 years ago. In 2019, PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP) collaborated with Tecnicas Reunidas S.A (Tecnicas Reunidas) as the GED contractor based in Madrid, Spain, to start the General Engineering Design phase for PRPP. The GED work consists of 2 (two) stages, namely Basic Engineering Design (BED) and Front End Engineering Design (FEED).

    The BED stage was completed on March 31, 2021, and was immediately continued with the FEED stage which ended on May 31, 2022. However, after 9 years in vain, there are no signs of continuing, even though it has just started with the Pre-Bid Meeting for the GRR Tuban Procurement which has determined 25 prospective contractors who have registered to participate in a total of 7 EPC procurement tender packages for the GRR Tuban Project with the initial site development work being one of the 9 GRR Tuban Project work packages and is a critical job and the main objective of the project as a whole. 

    It has become a habit for officials in Indonesia to waste valuable time so that super-important projects do not start immediately before they get a large fee commitment for the personal interests of their families and their parties. 

The Tuban Gross Root Refinery (GRR) project is very slow because the refinery which was designed with a capacity of 300,000 barrels per day (BPD) started from the beginning of its construction process since 10 years ago, there has been no significant progress and it was in vain until the President changed. 10 years have passed and there have been "only" pre-bid meetings and no significant progress.

    The two companies involved in the joint venture (JV) scheme of PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP) have been still calculating for a very long time regarding the Engineering, Procurement, and Construction (EPC) contract. In business, each company has its own calculations to get super Jombo profits. The calculation of the EPC tender is very long and late because the officials are not experts in calculating the economic calculus of the project, and there is an oil, and gas mafia that plays a role that was deliberately filled by and was recently arrested by the "Supreme Court" for being involved in corruption and bribery worth IDR 193.7 trillion or US$ 12.106.250.000 billion.

    GRR Tuban will actually be made a National Strategic Project. Quoting the page of the Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), the project is designed to process crude oil up to 300,000 bpd and requires an investment of IDR 238.25 trillion, with Pertamina as the person in charge and the FID is planned to be completed this year, but it could also be delayed and late due to many interests. With such a large fund, is Russia able to complete this project, considering that this project will take another 10 years to be wasted, and again Russia gets Ukraine as a tough opponent supported by Western countries. 

    Let's just wait for the continuation of this project in the next 10 years in 2035 whether it is worth it or Zonk.

Ceremony Oil Flow ExxonMobil to FPSO in Tuban Refinery

 

Illustration of the First Shipment Ceremony to the FPSO

    The success of ExxonMobil Cepu Limited (EMCL), the operator of the Cepu Block, produced the first oil from drilling infill clastic wells in 2024 amounting to 13,300 Barrels of Oil Per Day (BOPD) and is a special gift for the 79th independence of the Republic of Indonesia this year. 

Illustration Crew of MonitoringOil.com

    This success is according to the Minister of Energy and Resources Minerals (ESDM) Arifin Tasrif raised optimism that oil and gas potential in Indonesia could still be relied on.

    Arifin Tasrif said "This is the second time I have stood on this stage. First, last March when we started drilling activities. There were six programs drilling here and at that time we said that we hoped it could be produced, it could bear fruit this year. Then President of ExxonMobil Indonesia Carole Gall said that at the end of August, I asked the Head of SKK Migas Dwi Setjipto and Carole Gall to coordinate to be able to complete it before Independent Day August-17, 2024,".

    Arifin Tasrif also expressed his appreciation for this success.  

"Congratulations. This first well can produce 13,300 barrels of oil per day and is ready to flow to FPSO at Tuban Harbor. We hope that in the future other oil wells will also be able to make a significant contribution while also having a big impact can encourage oil and gas business people in Indonesia that there is still potential to increase our oil and gas production, because currently in the sector

"Indonesia has an oil deficit," said Arifin Tasrif.

Blogger Agus Purnomo in SKK Migas

    The government together with SKK Migas continue to strive to increase production according to the target of 1 million Barrels of Oil Per Day so that the petroleum deficit can be reduced.

Illustration Crew of MonitoringOil.com

    The Minister of Energy and Mineral Resources asked for efforts to improve not only existing fields, but also new seismic activities and new exploration opportunities accelerate the detection of new oil wells. Indonesia still has a lot of oil potential. Like in the Cepu Block which is already producing today 630 million barrels and has the potential to produce 1 billion new.

Illustration Crew of MonitoringOil.com

    Arifin Tasrif also said "Exploration must be accelerated immediately so that there is immediate certainty. The Indonesian government  provides support to ExxonMobil to carry out new seismic and exploration activities in other areas,"

    Regarding achieving targets in the gas sector, Arifin is optimistic  that this can be achieved with the discovery of large gas reserves which are currently being pushed forward immediately produced. Moreover, oil production is a challenge in the upstream oil and gas industry.

Illustration Crew of MonitoringOil.com

    Head of SKK Migas Dwi Soetjipto on the same occasion said that SKK Migas pays great attention to efforts to maintain production of the Banyu Urip Oil Field to remain optimal, considering that Banyu Urip is the second largest contributor with its contribution reaching around 25% of national oil and gas production. 

    Dwi Soetjipto said that Banyu Urip Field production had exceeded what was targeted in the plan of development (POD).

Illustration Crew of MonitoringOil.com

" Thanks to the various efforts, and innovations carried out by SKK Migas, and ExxonMobil Cepu Limited (EMCL) in maintaining field performance, namely improving production while still paying attention to the capacity and carrying capacity of the existing reservoir," he said.

    After the success of drilling the first well, it is hoped that in the 4th quarter of 2024 it is hoped that the second well will be drilled onstream and provide additional production of up to 9,300 BOPD. 

    Investment for the seven wells drilled reached USD 203.5 million or equivalent to IDR 3.25 trillion (exchange rate IDR 16,000 per USD), and is estimated to provide additional state revenue of USD 2 billion or around IDR 32 trillion, which is expected to provide additional oil amounting to 42.92 MMSTB.

    These efforts can bridge Indonesia's potential in achieving the target of 1 MMBOPD and 12 BSCFD this decade. We continue to explore these potentials, "of course in-order-to achieve long-term goals for energy independence," said Dwi Setjipto.

Illustration Crew of MonitoringOil.com

    ExxonMobil Indonesia President Carole Gall said "ExxonMobil is committed to meeting Indonesia's energy needs safely, reliably and efficiently. We are proud of the encouraging results from the Banyu Urip Infill Clastic (BUIC) drilling program and we thank the Ministry of Energy and Mineral Resources and SKK Oil and Gas for their extraordinary leadership and collaboration," said Carole Gall.

    BUIC's drilling activities use platforms and equipment which are all made in Indonesia, and operated by PT Pertamina Drilling Services Indonesia (PDSI) which is a subsidiary of PT Pertamina (Persero). 

    This drilling shows  PDSI's level of competence in the field of oil drilling, and natural gas, as well as support from the upstream oil and gas industry for the growth, and development of  national companies as well as the commitment of SKK Migas and KKKS in implementing discipline domestic component level (TKDN) in the upstream oil and gas industry.

    This success was marked by the First Shipment Ceremony to the FPSO at Tuban Harbor which was channeled via a 72 km long pipe from the Cepu Block field to the oil refinery in Tuban, East Java Province. BUIC's drilling also involves local contractors, and recruits more local workers. This involvement has added economic value to the communities around the ExxonMobil Cepu Limited (EMCL) operating area.

The Offshore Iron Rig Theft Tragedy is the most reckless in the world.

the Hull Rig Kodeco Energy #2

    It is suspected that a gang of steel rig thieves from Gresik City carrying two boats with 16 personnel were crushed by the Hull Rig, a former drilling rig belonging to Kodeco Energy Co. Ltd (KE#2) originating from South Korea, which is located in Klampis waters, Madura, East Java. This rig has not been operating since 2006, because it has been operating for 26 years since 1980, and now has no economic value because oil and gas reserves have run out in that well, and the 2nd Taurus Rig is only used as a lighthouse to guide fishermen go to and from the sea looking for fish around the Java Sea. After 2011, this drilling area became a concession for PT Pertamina Hulu Energi West Madura Offshore (PHE-WMO) which is now included in the Pertamina Zone-11 area.

Illustration of Coast Guard

    Pertamina Hulu Energi WMO is a subsidiary of PT. PHE has activities in the fields of exploration and production carried out in the western offshore area of ​​Madura. PHE WMO takes over the operations of Kodeco Energy Co's oil and gas fields. Ltd, from South Korea since 11 May 2011 after the block concession was previously owned by Kodeco Energy Co. Ltd, from South Korea. PHE WMO is a subsidiary of PT. Pertamina Hulu Energi which was formed specifically to manage the oil and gas fields off the west coast of Madura.

The Hull Rig Kodeco Energy Co. Ltd KE#2

    Before the iron rig thief tragedy occurred, a local security guard who guarded the rig for a Community-Based Security member of PT Pertamina Hulu Energi West Madura Offshore, said that he saw 2 suspect fishermen from Gresik on Saturday, June 8, 2024, afternoon. 17.00 PM, so the sun has not yet set. 

The Hull Rig Kodeco Energy Co. Ltd KE#2

    It is suspected that the two masterminds of this biggest theft, were already on the rig, pacing back and forth monitoring the situation on the Taurus Rig belonging to Kodeco Energy (KE-2). Meanwhile, 2 other suspect were waiting on the boat. 

Pirate Ship

    Some of the fishermen had actually been warned not to approach Rig Taurus KE#2, namely on May 29, 2024, even though their homes in the Gresik City area in Kroman village were around 50 nautical miles from where the Rig Taurus was located. The Taurus Rig is a National Vital Object, where at a distance of 500 meters from the Rig no fishermen are allowed to fishing, because it is very dangerous.

 Iron Rig Theft Tragedy

    After the four suspected suspects disembarked after surveying the rig they were going to steal, local beach security officers took this suspected gang of thieves to the Sepulu Sub-District police sector for questioning. This is because the rig is a vital national object. 

Illustration of Coast Guard

    After an inspection at the police station, they promised not to ride on the Taurus rig again. The agreement is stamped, so it has legal force if it is violated again. And they were not arrested, because no iron rig was stolen. 

 Iron Rig Theft Tragedy

    If detention is carried out, the costs of detention are very large, because the state will bear the costs of a suspect amounting to 50 million per year per person for food and drink, water, electricity, etc, And suspects who are already professionals can buy a judge to lighten their sentence, as happened in Jakarta, Official of the Indonesian Supreme Court HC. Dr. Zarof Ricar, received a bribe of Rp. 1 trillion or US$ 62.500.000, because several regional judges in Indonesia easy to buy, unlike in Japan, a judge cannot be bought.

Illustration Of Rig Workers 

    During the examination process, the four suspects made false statements claiming to be Bangkalan residents, but they did not carry Indonesian National Identity Cards. After being pressed to convey the true purpose of why they were on the Taurus Rig, they finally admitted to being residents of Gresik Regency which is about 50 nautical miles from Bangkalan Regency. 

Kroman Village

    Because there was no evidence of the iron rig being taken in the sea area when June 8, 2024, fell under the legal authority of the Water Police Unit, the four people were then released after promising not to repeat their actions when they boarded the Taurus Rig. It turns out they reneged on the deal. 

Illustration Of Rig Workers 

    Not only that once did they break that promise, before Saturday, June 8, 2024, security caught the same fishermen approaching the rig and pacing around the rig to re-survey and plan a safe escape route from the pursuit of the local coast guard.

Illustration Of Worker Rig

    But on Monday, June 10, 2024, Monday afternoon at 17:00 PM, they left again bringing 2 boats complete with welding and iron cutting equipment, and 50 kg oxygen cylinders, along with more personnel, namely 16 peoples, and arrived at the Taurus Rig around 01:00. AM WIB. 

Kroman Village Gresik City to Rig Taurus Bangkalan City 

    Then they carried out their action of cutting the rig's very valuable iron until Tuesday, June 11, 2024, until 23:00 PM, they didn't realize that they had cut all 3 of the rig's leg locks so that in a split second, on a cold, dark night pitch black, the Hull rig fell down onto 2 boats that were standing by under the rig which held the rig iron which had been cut into pieces. 

Illustration Of Rig Workers 

    Meanwhile, the 8 suspects who were on the rig to unload the stolen iron survived, because they were not crushed by the Hull Rig, they only fell into the sea but did not drown, because they could all swim.

Illustration Of Rig Workers 

    As a result, both ships sank into the sea along with their iron cargo, and the 8 suspects, including the 2 ship owners who were on board at the time of the incident, disappeared into the darkness of the night after a split second the Hull Rig ship collapsed to the bottom of the sea and killed the 8 suspects, while the 8 suspects who were on the boat managed to save themselves and swam towards the shore.

Escape Route from Rig Accident to Dr. Soetomo Hospital

    The distance from the beach was about 2 km, they contacted the team that was already on standby on land and did not ask for help from local residents, because it could raise suspicion, so that as soon as possible they could return to their home area which was very far away and take their injured colleague to the hospital in Surabaya, even though they could take their colleague to a Syam Rato Ebu Hospital in Bangkalan which is 32 KM closer, they still took their injured colleague to a hospital in the Surabaya area which is 60 km away from the tragedy area, so as not to be suspected by local police officers. Until now, 1 fisherman victim was found dead, while the bodies of 7 other suspects were still missing under the rubble of the hull rig and are unknown until now.

the rubble of the hull rig

Pertamina Will Import Oil From Russia

Illustration Crew MonitoringOil.com

    PT Pertamina strives to maintain the resilience of oil supplies in Indonesia. Pertamina will buy crude oil from Russia in September 2024. 

Pertamina will import Russian Urals oil along with Kirkuk, Jubilee, Al-Shakheen sour quality crude oil to meet the needs of the Cilacap Refinery. In addition, Pertamina will import Russian Sokol which will arrive in Cilacap on 18-20 September 2024.

Illustration Crew MonitoringOil.com

    Corporate Secretary of PT Kilang Pertamina Internasional (KPI) Hermansyah Y Nasroen said Pertamina always purchases crude oil according to the specifications of each refinery and in accordance with applicable regulations. Including purchasing conditions using the price cap mechanism.

Illustration Crew MonitoringOil.com

    Referring to the Pertamina website, the fulfillment of raw material needs for refineries comes from domestic crude oil which is the result of Pertamina's domestic upstream sector production, the Government of Indonesia's share of crude oil, entitlement, and crude oil purchases from domestic Cooperation Contract Contractors (KKKS). 

Illustration Crew MonitoringOil.com

    This oil and gas company owned by the Indonesian government also imports oil from Pertamina's upstream business lines overseas. Apart from that, Pertamina buys conditionally and spot from suppliers consisting of national oil companies, producers, and trading companies.

Illustration Crew MonitoringOil.com

    According to records, Pertamina last bought Russian crude oil from Espo Blend and Sokol 10 years ago. Pertamina's agenda to resume importing crude oil from Russia has been planned since 2022. At that time the plan was proposed taking into account price suitability. 

Illustration Crew MonitoringOil.com

    However, the plan was ultimately canceled. Recently, this plan has been brought up again because of the cheaper Russian oil prices, especially after the conflict between Russia and Ukraine.

PT Armada Gema Nusantara sell 35% of its FPSO shares to Pertamina

Karapan Armada Sterling III

    PT Armada Gema Nusantara is a company that operates and owns the Floating Production Storage and Offloading tanker Karapan Armada Sterling III (FPSO KAS III) Floating Storage/Production with IMO number: 9213179, MMSI: 525100350, Call sign: YBQW2, AIS transponder Class A, FPSO KAS III operates in the BD Field in the Madura Strait based on a contract leased with Husky-CNOOC Madura Limited (HCML).

Karapan Armada Sterling III

    The operational area of the KAS III FPSO is quite strategic and has an important role in supplying gas to the industry in East Java Province. It is hoped that the KAS III FPSO can contribute to the sustainability of gas supplies, especially for domestic industry, so that it can support industrial and electricity activities, which will directly support national economic growth.

Girls on the FPSO

    Currently, the FPSO (Floating Production Storage and Offloading) Karapan Armada Sterling III is a floating vessel used to produce, store, and distribute crude oil and natural gas in the offshore mining industry. 

    FPSO KAS III has an important role in the exploration of oil fields in the world's first waters to have a very large sulfur processing plant. Its capacity is around 25 tons of molten sulfur, 7,500 barrels of crude oil condensate, and 110 MMSCFD of gas.

    Reportedly, PT Armada Gema Nusantara (AGN) will sell 35% of its FPSO shares to Pertamina.

The Tuna Block Super Jumbo gas shares are controlled by Zarubezhneft Rusia

 

    Indonesia's upstream oil and gas authorities no longer have to worry about replacing ZN Asia Ltd, a subsidiary of Russia's Zarubezhneft (ZN). 

As a subsidiary of the Russian state-owned enterprise Zarubezhneft (ZN) currently holds 50% of the participation shares in the Tuna Block. 

The Tuna Block Super Jumbo gas

    The number of foreign investors' Interest in this work area makes the Indonesian government optimistic that it can spur further development.

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that the process of transferring participation shareholders of ZN Asia Ltd. in The Tuna Block could be completed this year. Because of the potential for large amounts of hydrocarbons in it, it can be produced immediately and put into lifting Indonesia.

Blogger Agus Purnomo in SKK Migas

    The development of the Tuna Block faced obstacles after several European Union countries and the UK imposed sanctions on Russia as a result of geopolitical tensions in Ukraine. In the Tuna Block, ZN Asia Ltd. partnered with Premier Oil Tuna BV which is part of the Harbor Energy Group, a British oil and gas company.

BP

    In the Tuna Block, Premier Oil Tuna BV also holds 50% participating shares, as well as being the operator carrying out exploration and exploitation activities of oil and gas reserves.

    Nanang Abdul Manaf, Deputy Head of SKK Migas said that up to now his company has gathered many companies that stated his interest in replacing ZN Asia Ltd. in the Tuna Block. Several companies that have expressed interest are Petroliam Indonesia Berhad Petronas Malaysia and Mubadala Energy.

    The hope is that the process of transferring ZN Asia Ltd's participation shares will be successful. can be decided immediately so that the development of the work area is estimated to be capable Flowing gas up to 150 million standard cubic feet per day (MMscfd) can be done.

    The polemic that occurred in the Tuna Block made the Harbor Energy project that the final Investment Decision (FID) for its development would take place in 2025. In fact, approval for the first Plan of Development (PoD) for the field was given on December 23, 2022. 

    Zarubezhneft (ZN) received assurance of replacing ZN Asia Ltd. Harbor Energy Chief Executive Officer Linda Z. Cook once emphasized that the company's oil and gas portfolio in Indonesia, including the Tuna Block, is still a priority for corporate investment abroad. 

    This commitment was proven by the company by drilling four exploration wells in the Andaman Sea, another oil and gas working area in Indonesia managed by the company.

    The Indonesian oil and gas authority projects a state revenue of IDR 18.4 trillion from the management of the Tuna Block. This figure is higher than the potential The income that Premier Oil Tuna BV can obtain as a cooperation contract contractor is worth IDR 11.4 trillion.

    The Tuna Block is actually one of the Indonesian Government's hopes for increasing Indonesia's natural gas production. Minister of Energy and Resources Minerals (ESDM) Arifin Tasrif said that gas originating from the working area will be exported to Vietnam in 2026.

    Gas exports to Vietnam are considered more profitable because the geographical location of the Tuna Block is closer to Vietnam, making development possible Undersea pipelines such as the Nord Stream gas pipeline can directly distribute gas to mainland Vietnam.

    In terms of investment, the development of the Tuna Block up to the operational stage is estimated to reach US$ 3.07 billion. The estimate includes investments beyond sunk costs of US$1.05 billion, investments related to operating costs up to the economic limit of US$2.02 billion, and abandonment and site restoration costs (ASR) of US$147.59 million.

    Chairman of the Investment Committee of the Association of Oil and Gas Companies, Moshe Rizal, believes that European Union and British sanctions could have a serious impact on plan Tuna Block development. Premier Oil and ZN Asia Ltd. need to immediately take strategic steps so as not to hinder the continuity of its business in Indonesia.

    Moshe said that the government together with SKK Migas must also immediately provide a way out of the deadlock on cooperation commitments. The reason is that the sanctions imposed by the European Union and the UK have the potential to delay the development of the super jumbo oil and gas field.

    The desire to immediately resolve the problems in the Tuna Block also came from the Ministry of Energy and Mineral Resources, which hopes that Premier Oil Tuna BV's partners will be replaced soon.

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that data regarding the investment potential and details of the Tuna Block had been opened. Several International companies have expressed interest in investing in the Tuna block, but the government still needs to carry out further studies.

    According to him, the replacement of ZN Asia Ltd. in the Tuna Block is very urgent because Premier Oil cannot continue to invest all of its investment in developing the work area itself. After all, it could disrupt the company's cash flow and could go bankrupt.

    The Tuna Block does have a strategic role because it is located in the North Natuna Sea which directly borders Vietnam, a world geopolitical hot spot. In 2021, it was widely reported that the Chinese government was protesting the Indonesian government over oil and gas drilling activities in the sea of Natuna, even though The Jumbo oil and gas block is still Indonesian territory, and mainland China is too far from the Tuna block.

    In fact, in the Tuna Block, 2D and 3D seismic acquisition activities have been carried out, drilling of four exploration wells, namely the Gajali gas well, North Sea-1 gas well, and Belut Laut-1 gas well in 2011, as well as Sea Horse-1 gas well and Sea Lion-1 gas well in 2014.

    The discovery of hydrocarbon reserves in the Kuda Laut-1 and Sea Lion-1 wells, which are structurally adjacent, was later named the Tuna field, with resources of 104 million barrels of oil equivalent (MMBOE).

    These resources are dominated by natural gas reserves with high condensate content, with a CO2 content of less than 2%. Then, in 2021, potential reserves in the Tuna Block were confirmed again through drilling activities for two Delineation wells Sea Lion (SL)-2 and  Sea Horse (KL)-2.

Inpex Starts Drilling on Masela Block in 2024

    The Ministry of Energy and Mineral Resources (ESDM) has approved further drilling at the Masela Block Abadi LNG project to begin next year after the second revision of the development plan was approved.

    The second revision of the development plan or Plan of Development (PoD) I of the Masela Block Abadi LNG project itself has been approved by the Minister of Energy and Mineral Resources, Arifin Tasrif.

    In addition to drilling plans, the ministry is targeting a final investment decision (FID) for projects with a current estimated value of around US$19.8 billion will also be completed next year.

    Several crucial points in the PoD include a commitment to commercial operations by the end of 2029, and initial plans to install exhaust gas capture facilities or Carbon Capture and Storage (CCS).

Drilling Girl

    In the new development proposal, SKK Migas reported that additional investment for CSS is estimated to be in the range of US$ 1 billion or equivalent to IDR 15.52 trillion at an exchange rate of IDR 15,520 per US dollar. For other investments in upstream oil and gas activities, there has not been much change.

    Masela Block Operator, Inpex Masela Ltd. currently negotiating with the Indonesian government regarding the need to re-amend the production sharing contract or PSC for the Masela Block Abadi LNG project.

    It is hoped that the contract amendment will make the economics of the national strategic project (PSN) more attractive at the time of Inpex's commitment to include CCS facilities in the development plan that was sent in April 2023. 

    Inpex targets development costs to be reduced optimally with an Internal Rate of Return (IRR) in the range of 10%.

    Inpex proposed that CCS installation and operation costs could be charged to the production-sharing contract that is currently being amended. The plan is that operating costs will be paid directly through the sale of gas and condensate from future field projects.

    The Masela Block development project will use a combined land and sea system to ensure that the investment value of the existing field development plan does not change much.

Drilling Girl

    Through this combination system, seabed drilling will be carried out at a depth of 600 meters, and the well depth will be 4,000 meters. The gas obtained will be processed in a floating building, namely floating production, storage, and offloading (FPSO) to be purified from other substances.

    After being purified at the FPSO, the gas will be channeled to the liquefied natural gas (LNG) refinery on land via the gas export pipeline (CEP) which is 175 kilometers away and through sea trenches. The Masela Block is one of the largest oil and gas field prospects in Indonesia. 

    Production is estimated to reach 1,600 million cubic feet per day (MMscfd) of gas or the equivalent of 9.5 million MTPA and 150 MMscfd of piped gas, as well as 35,000 barrels of condensate per day 4 (BCPD).

    The project, which was originally estimated to require investment costs of up to US$ 19.8 billion, is Inpex's second largest gas management asset, after the Ichthys LNG Project in Australia.