The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) requests that the upstream oil and gas industry continue to maintain operations and avoid termination of employment (PHK), in order to maintain the continuity of the industry in the following years, despite being affected by the Covid pandemic. 19 and low world oil prices.
The Head of SKK Migas Dwi Soetjipto said that the achievement of the APBN target in the first quarter was very good, but in the future what was prioritized was how to prevent activities being stopped and no layoffs.
He added, by maintaining upstream oil and gas operations, including in various drilling, maintenance, and other operational programs, the sector was expected to continue to drive the national economy, create a multiplier effect for the regional economy and supporting industries, and maintain the availability of employment.
"Like the blood that continues to flow, the upstream oil and gas industry is expected to continue to drive the pulse of the Indonesian economy," Dwi said.
Meanwhile, SKK Migas Deputy for Operations Julius Wiratno said that until now the commitment of the Cooperation Contract Contractors (KKKS) to achieve the production target is still maintained. From the 1st quarter of 2020 data shows that, for oil production, 7 KKS Contractors exceeded the National Budget target and 8 KKKS exceeded the technical targets in the 2020 Work Plan and Budget. Whereas for gas distribution 5 KKS Contractors were able to exceed the National Budget target and 12 KKS Contractors exceeded the technical target Work Plan and Budget 2020.
SKK Migas has sent a letter of appreciation for KKKS who achieved the target in 2019 and the first quarter of 2020, as well as a warning letter for KKKS that did not reach the target in the first quarter of 2020. In that letter, SKK Migas also submitted input and recommendations for each KKS Contractor based on monitoring the implementation of the Work Plan and Budget and other monitoring so that in the second quarter of 2020 until the end of the year, KKKS who have not yet reached the target can implement the SKK Migas recommendations and those who achieve the target can look for operational ways and innovations so that the achievements obtained can be further improved.
In addition to the operational aspects, SKK Migas through the letter reminded the PSC Contractors to implement the principles of work safety and environmental protection so that the incident rate in the second quarter and until the end of 2020 can be maintained at the specified level.
On Target
Meanwhile, SKK Migas also seeks to prevent the four strategic upstream oil and gas projects from being late in operation despite the Covid-19 pandemic. All projects are targeted to be completed in stages until 2027. SKK Migas Head Dwi Soetjipto said, although the Covid-19 pandemic affected the progress of upstream oil and gas work, the oil and gas contractor working on the four national strategic projects was still committed to completing the project on time.
Jambaran-Tiung Biru Field (JTB)
These four projects are the development of the Train-3 Tangguh Refinery, Jambaran-Tiung Biru Field (JTB), the Masela Block, and the Indonesia Deepwater Development (IDD) Project. One project that is quite constrained by Covid-19 is the development of the Abadi Field, the Masela Block.
Inpex Corporation
"But we are still discussing with Inpex so that onstream (operations) will not retreat from 2027," Dwi Soetjipto said.
Dwi Soetjipto explained the existence of a pandemic hampered the work on the gas project field survey. In order to prevent the spread of Covid-19 from mobility restrictions, a field survey for the Abadi project could not be carried out.
"Maybe there will be a speedup in the coming year," he said.
In addition, a pandemic that suppressed energy demand and global oil prices, Dwi said also made marketing gas that would later be produced from the Abadi Project difficult.
"First of all, what is still constrained is that prospective buyers are still waiting and seeing," he said.
In fact, a commitment to purchase gas is needed so that the Abadi Project can reach the final investment decision / FID stage which is targeted by the end of 2021. So far, Inpex has just obtained a commitment to purchase gas by PT PLN (Persero) 2-3 million tons per year and PT Pupuk Indonesia (Persero) 150 million standard cubic feet per day / mmscfd. At least, around 80% of the 9.5 million tons per year gas production must have a purchase commitment so that FID can be achieved. Constraints due to the Covid-19 pandemic, also experienced by the Train-3 and Jambaran-Tiung Biru Refinery Project.
"But the Train-3 Tangguh Refinery Project will still be on stream (operation) in 2021. Then, JTB is still committed to onstream in 2021," he said.
While the Jambaran-Tiung Biru Project works until the end of March, still referring to SKK Migas data, it still reached 57.91% of the target of 58.17%. So that the project's operating schedule is expected to be slightly delayed from initially the third quarter of 2021 to the fourth quarter of the same year.
The US $ 1.53 billion projects will produce 190 million cubic feet of gas per day / mmscfd. Pertamina EP Cepu President Director Jamsaton Nababan once revealed that the JTB Project was a little late compared to the schedule. However, this delay range is still fairly reasonable and can still be pursued.
It has prepared a number of strategies to pursue this delay. In April-May, he was optimistic that he could return the JTB Project's progress according to plan. The investment value of these four national strategic projects reaches the US $ 37.21 billion. While the additional oil production is 65 thousand BPD and 3,484 mmscfd of gas.
Investor Daily, Page-9, Monday, May 4, 2020
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