Government Give Ultimatum to Inpex

If pre-FEED is not completed soon, the FEED process is feared to be hampered.

The government gives ultimatum to Inpex Corporation which is considered slow to work on Masela Block, especially related to the completion of pre-front end engineering (FEED) study. In fact, after selecting a scheme for the development of an onshore liquefied natural gas (LNG) refinery, the government hopes that the gas field located in Arafuru Sea will soon be in production. I was six months in the Ministry of Energy and Mineral Resources (ESDM), but (pre-FEED study) did not start immediately, said ESDM Minister Ignasius Jonan

The government as indicated by Jonan seems to have been unable to wait any longer. Please to write, Inpex if too long pre-FEED, I cancel (cooperation contract / KKS). Do not let me lose patience, said the former Minister of the Commonwealth. However, he was reluctant to reveal how long the limit of patience the government has.

The pre-FEED phase includes location determination, refinery capacity, and development plans related to the petrochemical industry. If pre-FEED is not finalized soon, the FEED process until final Final Investment Decision (FID) is scheduled for completion in 2019 is feared to be hampered. It will also threaten the realization of the first gas production (on stream) is targeted in 2026.

Two scenarios

On pre-FEED issues, Inpex was asked to prepare a review of two scenarios. The investor version of the scenario scenario is the increase of refinery capacity from 7.5 million tons per year (mtpa) to 9.5 mtpa plus 150 million cubic feet per day (mmscfd) of gas production. The government version of the scenario is 5 mtpa capacity plus gas production of 474 mmscfd. Broadly speaking, both scenarios have the same total value of LNG production as it comes from the same wellhead.

Regarding the certainty of the scenario to be taken, Jonan said it refers to the study proposed investors. "If pre-FEED is not finished yet, how can it be decided. Let's wait for the pre-FEED stage one.

The change in the scheme for the development of an LNG refinery facility from offshore to onshore has in fact resulted in additional capital expenditures and project work periods suspected to be delayed.

In this regard, Inpex has submitted a request for incentives for the project development to remain economically viable. Among these include compensation of contractual time lost for 10 years (2007-2017) from oil and gas field development with proven reserves of 10.73 tcf. Regarding to that, the government offers a seven-year compensation option.

When asked for confirmation on the same occasion, Senior Communication Manager of Inpex Corporation Usman Slamet stated there are still some things that need to be negotiated with the government before starting pre-FEED.

Meanwhile, Jonan on the sidelines of the National Gas Gas Forum revealed that domestic gas utilization has recorded a positive trend with an average increase of 9% since 2003. We want more domestic gas usage so that there is added value. Surely the price must also be competitive with good quality.

IN INDONESIAN

Pemerintah Ultimatum Inpex

Apabila pre-FEED tidak segera dirampungkan, proses FEED dikhawatirkan terhambat.

Pemerintah memberikan ultimatum kepada Inpex Corporation yang dianggap lamban menggarap Blok Masela, khususnya terkait dengan penyelesaian kajian pre-front end engineering design (FEED). Padahal, setelah memilih opsi skema pengembangan kilang gas alam cair berbasis darat (on shore liquefied natural gas), pemerintah berharap lapangan gas yang terletak di Laut Arafuru itu segera berproduksi. Saya sudah enam bulan di Kementerian Energi dan Sumber Daya Mineral (ESDM), tapi (kajian pre-FEED) tidak segera dimulai, kata Menteri ESDM Ignasius Jonan

Pemerintah sebagaimana di isyaratkan Jonan tampaknya sudah tidak bisa menunggu lebih lama. Tolong untuk di tulis, Inpex kalau terlalu lama pre-FEED, saya batalkan (kontrak kerja sama/KKS). Jangan sampai saya hilang kesabaran, kata mantan Menteri Perhuhungan tersebut. Namun, dia enggan mengungkapkan berapa lama batas kesabaran yang dimiliki pemerintah.

Fase pre-FEED mencakup penentuan lokasi, kapasitas kilang, berikut rencana pengembangan yang menyangkut industri petrokimia. Apabila pre-FEED tidak segera dirampungkan, proses FEED hingga penyampaian keputusan akhir Final Investasi (final investment decision/FID) yang dijadwalkan selesai di 2019 dikhawatirkan terhambat. Hal itu nantinya turut mengancam realisasi produksi gas pertama (on stream) yang ditargetkan pada 2026.

Dua skenario

Soal pre-FEED, Inpex diminta menyiapkan kajian atas dua skenario. Dengan perincian skenario versi investor ialah peningkatan kapasitas kilang dari 7,5 juta ton pertahun (mtpa) menjadi 9,5 mtpa ditambah produksi gas 150 juta kaki kubik per hari (mmscfd). Adapun skenario versi pemerintah ialah kapasitas 5 mtpa ditambah produksi gas 474 mmscfd. Secara garis besar, kedua skenario itu memiliki nilai total produksi LNG serupa karena bersumber dari mulut sumur (well head) yang sama.

Mengenai kepastian skenario yang akan diambil, Jonan menuturkan hal itu mengacu pada kajian yang diajukan investor. “Kalau pre-FEED belum selesai, bagaimana bisa diputuskan. Kita tunggu saja hasil pre-FEED tahap satu.

Perubahan skema pengembangan fasilitas kilang LNG berubah dari berbasis laut (off shore) ke darat (on shore) nyatanya berdampak terhadap penambahan belanja modal perusahaan dan masa pengerjaan proyek yang ditengarai molor. 

Terkait dengan itu, Inpex telah mengajukan permohonan insentif agar pengembangan proyek tetap ekonomis. Di antaranya termasuk kompensasi waktu kontrak yang hilang selama 10 tahun (2007-2017) dari pengembangan lapangan migas dengan cadangan terbukti 10,73 tcf. Mengenai hal itu, pemerintah menawarkan opsi kompensasi tujuh tahun.

Saat dimintai konfirmasi pada kesempatan yang sama, Senior Communication Manager Inpex Corporation Usman Slamet menyatakan masih ada beberapa hal yang perlu dirundingkan dengan pemerintah sebelum memulai pre-FEED. 

Sementara itu, Jonan di sela-sela Forum Gas Bumi Nasional mengungkapkan pemanfaatan gas bumi domestik tercatat menunjukkan tren positif dengan kenaikan rata-rata 9% sejak 2003. Kita ingin penggunaan gas di dalam negeri semakin banyak sehingga ada nilai tambah. Tentunya harganya juga harus kompetitif dengan kualitas yang bagus.

Media Indonesia, Page-18, Thursday, May, 4, 2017