Selling Oil and Gas Blocks, Owners Are Still Looking For Strategic Partners

    Sales of oil and gas blocks during the Covid-19 pandemic created challenges. Oil and gas investors who will leave continue to look for buyers who are currently still waiting and see.

    There are four oil and gas blocks that will be sold this year. Namely, Chevron's IDD Block, ConocoPhilips' Corridor Block, Inpex's Masela Block, and Pertamina's Rokan Block on August 9, 2021.

Blogger Agus Purnomo in SKK Migas 

    Head of Program and Communication of SKK Migas Susana Kurniasih revealed, the process of selling oil and gas blocks is still long. The latest update is a notification by ConocoPhilips for a permit request to the Directorate General of Oil and Gas, Ministry of Energy, and Mineral Resources (ESDM) to disclose data. So the process is still early, so far there has been no update on whether there is a follow-up process," said Susana.

    Although the process is ongoing, Susana ensures that activities in Field will continue as usual. Quoted from the official ConocoPhilips website, the participating shares in the Corridor Block are 54% owned by the USA company, the remaining 36% by Talisman, and 10% by Pertamina.

    In 2019, ConocoPhilips signed a gross split cooperation contract to continue the contract in the Corridor Block for 3 years from the end of the contract in 2023. This means that management will continue until 2026 before being continued by Pertamina.

Repsol

    In the new contract, there is a change in the number of participating shares with the composition of ConocoPhillips (Grissik) Ltd. (46%), Talisman Corridor Ltd. (Repsol) (24%), and PHE Corridor (30%). Participating Interest owned by the holders of interest includes 10% PI which will be offered to Regional Owned Enterprises.

    In addition to the Corridor Block, the oil and gas block divestment action is now taking place in two other blocks, namely Masela and Indonesia Deepwater Development. Of the three, only Block IDD will soon find a replacement partner. Chevron is said to be holding final point discussions with the Italian oil company, Eni.

Eni

    Meanwhile, the Rokan Block will also be sold. Pertamina is looking for a strategic partner. Executive Director of the National Oil and Gas Company Association (Aspermigas) Moshe Rizal said that the search for existing partners would likely affect operations. The current condition is not easy to find a replacement partner.

"Hopefully, after conditions improve, it can increase investment interest from outside, because I see that there are many incentives being prepared," said Moshe.

Kontan, Page-12, Thursday, July 22, 2021

Global Oil and Gas Investors Start Leaving Indonesia

    A number of cooperation contract contractors (KKKS) chose to leave after years of investing in Indonesia's oil and gas fields. After Royal Dutch Shell confirmed that it would leave the Masela Block (Maluku), now ConocoPhillips intends to leave the Corridor Block (South Sumatra).

Blogger Agus Purnomo in SKK Migas

    Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman revealed that ConocoPhillips' plan to release Participating Interest (PL) ownership shares in the Corridor Block had been submitted to SKK Migas.

"Verbally, it has been conveyed like that, releasing Participating Interest (Pl) shares," he said.

    Although it has stated its intention verbally, ConocoPhillips has not detailed further the reasons for releasing Participating Interest (PL) ownership shares in the Corridor Block. Fatar confirmed that there is no planned meeting with ConocoPhillips. SKK Migas is still waiting for ConocoPhillips' official proposal submission. ConocoPhillips Vice President Commercial and Business Development Taufik Ahmad declined to comment further on this news.

"Until now there has been no additional explanation apart from what was conveyed by SKK Migas," he said.

    Currently, ConocoPhillips is listed as the contractor for the Corridor Block with a 54% participating interest and Repsol Energy has a 36% interest. Meanwhile, Pertamina has a participating stake of 10%. The production sharing contract (PSC) in the Corridor Block will expire on December 20, 2023. 

    A new production sharing contract was signed in 2019, whereby the existing KKKS received a 20-year extension with a Gross Split PSC. In the period 2023-2026, there will be a transition period, in which ConocoPhillips will still be the operator. However, after this period, the operatorship will be transferred to Pertamina.

Repsol

    Later, in the latest production sharing contract, there will be a change in the amount of Pl, namely Pertamina Hulu Energi Corridor controlling 30%, ConocoPhillips 46%, and Repsol 24%. The planned departure of ConocoPhillips adds to the long list of global oil and gas companies leaving Indonesia. 

    In July 2020, Royal Dutch Shell plans to withdraw from the Masela Block Perpetual Gas Project. Shell, which holds a 35% participating stake, is still looking for a replacement candidate.

    Another investor who also intends to leave is PT Chevron Pacific Indonesia (CPI) which will release its participating stake in the Indonesia Deep Water Development (IDD) Block. After Shell left, SKK Migas Deputy Operations Julius Wiratno said the search for partners for the Masela Block is targeted to be completed by the end of this year.

"Shell is in the process of looking for a replacement until the end of this year. Chevron is the same way. This is common in the business world," he said.

    In this situation, Julius ensured that the government could not intervene in the ongoing business-to-business process. The Executive Director of the Reforminer Institute, Komaidi Notonegoro, believes that the government needs to evaluate the upstream oil and gas business regarding the plans of global investors who want to leave.

"However, domestic business actors such as Pertamina need partners," said Komaidi Notonegoro.

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects that this year's oil and gas lifting will reach 97.3% of the target in the 2021 State Budget (APBN). Head of SKK Migas Dwi Soetjipto projects that this year's oil and gas lifting reached 1.6 million barrels of oil equivalent per day (MBOEPD) or lower than the target in the 2021 State Budget of 1,711.78 MBOEPD.

    Referring to the realization in the first quarter of 2021, according to Dwi, there is still pressure on oil and gas production. On the other hand, there was also an unplanned shutdown and a delay in drilling execution. 

"There is also a delay in the onstream schedule of several oil and gas fields so that the total is reduced by 25,000 barrels per day and gas by 99 mmscfd from the target that has been set," he said.

    Dwi added, in order to cover the existing production gap, SKK Migas targets additional drilling activities this year. They predict drilling activities can increase to 700 activities.

Kontan, Page-13, Wednesday, June 2, 2021

Heavy Duty Runway Lifting

 

Improving the performance of upstream oil and gas is still homework that needs to be completed by industry players in the country, in line with the low lifting achievement by some contractors.

Blogger Agus Purnomo in SKK Migas

Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), out of 15 large cooperation contract (KKKS) contractors that produce oil and condensate, eight companies are unable to meet the production targets ready for a sale (lifting) in the work program and budget (work program and budget / WP & B) 2020.

PT Pertamina EP

PT Pertamina EP, for example, realized lifting reached 93.5% of the WP&B. A similar condition occurred in Conocophillips (Grissik) Ltd with a lifting achievement of 92.2% from WP&B. 

Blogger Agus Purnomo In Petronas Carigali Ketapang

    Meanwhile, Petronas Carigali (Ketapang) Ltd was only able to record a lifting of 76.8% of the target. On the other hand, the KKKS with the largest oil production and lifting, ExxonMobil Cepu Limited (EMCL), is still able to meet the target in 2020 with the realization of lifting reaching 217,637 barrels per day (bpd) from the Cepu Block.

the Cepu Block and Banyu urip Field

This achievement came from the Banyu Urip field production which had reached a peak production of 230,000 bpd. In gas lifting, out of 15 large KKKS, there are also eight companies that are unable to meet the target according to WP&B, namely Conocophillips (Grissik) Ltd, Pertamina EP, Eni Muara Bakau B.V, and Medco E&P Natuna. 

Blogger Agus Purnomo In PHE-WMO

    Then, other contractors who failed to reach the target were Pertamina Hulu Energi West Madura Offshore (PHE-WMO), PT Pertamina Hulu Energi Jambi Merang, Husky-CNOOC Madura Ltd (HCML), and Pearl Oil (Sebuku) Ltd.

Deputy for Operations of SKK Migas, Julius Wiratno explained that his party was preparing a warning or warning for KKKS that did not reach the target in accordance with the deal.

"For the 2020 performance, a 'love letter' is currently being drafted, this week it is [sent]," he said.

He emphasized that the KKKS could get sanctions for not being able to achieve the target. Sanctions can be in the form of tightening KKKS spending until the KKKS work plans and budgets are not approved.

"There are also those whose cost recovery is not approved if it is not in accordance with the initial agreement," he said.

He also highlighted a number of subsidiaries of PT Pertamina (Persero) that have not been able to meet the lifting target last year. Julius assessed that this was due to economic problems in the field. However, SKK Migas and Pertamina have made an agreement to improve performance this year. 

    Previously, the President Director of PT Pertamina Hulu Energi, Budiman Parhusip, said that Pertamina has challenges with a high decline rate due to managing old fields. However, his party has prepared a number of contracts related to the drilling program to optimize lifting.

"We hope that the full cooperation will run smoothly," he said.

Meanwhile, Pertamina is planned to manage around 60% of the oil and gas fields in Indonesia. Currently, about 40% are still managed by this state-owned company. With this projection, the government also has high hopes for Pertamina in achieving the oil lifting target of 1 million BPD. Meanwhile, the government is deemed necessary to intervene in the decline in Pertamina's performance in the national upstream oil and gas sector.

Trisakti University lecturer Pri Agung Rakhmanto explained that the main factor for Pertamina's decline in production last year was due to the economy in the field plus the pressure of the Covid-19 pandemic. According to him, old fields have an effect on the decline in investment and Pertamina's business activities. Meanwhile, the Covid-19 pandemic has resulted in limited operational activities.

"Pertamina is now the backbone of national production with more and more blocks being transferred to it by mistake. The government should be able to provide more support, "he said.

He suggested that the cooperation contract should include fiscal aspects affected by the latest economic conditions. Meanwhile, Executive Director of the National Oil and Gas Companies Association (Aspermigas) Moshe Rizal said that the fall in oil prices coupled with a decrease in demand due to the Covid-19 pandemic has indeed put heavy pressure on KKKS financially. 

    In addition, operational activities are hampered by large-scale social restrictions (PSBB) even though the budget is available. As a result, project execution is hampered, including maintenance operations, workovers, and other activities that can help maintain production levels.

"For this year, everything depends on how fast we recover economically and how fast the distribution of vaccines is so that it can reduce the infection rate," he said.

The President Joko Widodo

PRICE OF POWER PLANT GAS

President Joko Widodo has set the price of natural gas for power plants at a maximum of US $ 6 per MMBtu. The regulation is in Presidential Regulation Number 121 of 2020 concerning Amendments to Presidential Regulation Number 40 of 2016 concerning Natural Gas Pricing which was promulgated on December 29, 2020. In Article 4 Paragraph 3 it is stated that the determination of certain natural gas prices can be given to natural gas users. engaged in the supply of electricity for the public interest. 

This Presidential Regulation is in line with the Minister of Energy and Mineral Resources Regulation Number 10 of 2020 concerning Amendments to the Regulation of the Minister of Energy and Mineral Resources Number 45 of 2017 concerning Utilization of Natural Gas for Power Plants. This regulation confirms the adjustment of the gas price for PT PLN (Persero) 's needs to be the US $ 6 per MMBtu.

Bisnis Indonesia, Page-4, Thursday, Jan 7, 2021

The Government Must Tidy Up to Improve the Investment Climate

The government must fix the management of national upstream oil and gas if it wants to increase oil and gas investment after the Covid-19 pandemic. The reason is that although oil prices have begun to rise after OPEC + cuts oil production, oil and gas companies will be more selective in choosing the locations where they invest.

Energy observer from Trisakti University, Pri Agung Rakhmanto said, the current oil price trend has not been able to stimulate national upstream oil and gas investment. This condition is likely to last until next year. To increase national upstream oil and gas investment, the government is judged to need to improve the competitiveness of the upstream oil and gas business.

"How to be able to attract large scale investment, because competition in the global market to attract investment will be very tight," he said.

The improvement needed is that the government solve the problems that have been around. Some of these include completing the revision of the Oil and Gas Law, ease of operation, and improving the quality of the work areas being auctioned and including the quality of the data. Current conditions make solving these problems even more important for national upstream oil and gas investment.

The same was expressed by the Former OPEC Governor for Indonesia Widhyawan Prawiraatmadja. According to him, oil and gas companies will not be aggressive in investing if crude oil prices have not exceeded the limit above US $ 50 per barrel. However, projects that have been committed by the company will continue, such as the development of the East Sepinggan Block which is postponed to next year.

"But for something new, especially exploration, will be delayed for a very long time until the price returns to a very good level in a sustained time," he explained.

In this condition, he advised the government to provide incentives for the upstream oil and gas sector and gas infrastructure. According to him, the incentives in the gas infrastructure sector will provide consumers access to enjoy liquefied natural gas / LNG whose prices are down.

"Instead of LNG we are exported at low prices, it is better to be used domestically so that it helps the industrial sector. LNG is currently cheaper than gas pipelines. The key is the existence of gas infrastructure, specifically for LNG regasification, "Widhyawan said.

While Former Deputy Minister of Energy and Mineral Resources (ESDM) Rudi Rubiandini suggested the government to change the way of managing national upstream oil and gas so that oil and gas investment is attractive again. One of them is by not giving up the management of all completed oil and gas blocks to PT Pertamina (Persero).

Chevron

Granting management rights to Pertamina must be accompanied by an evaluation related to block oil and gas production. According to him, maintaining world-class oil and gas companies such as Chevron and Conoco-Philips is a way to maintain current oil and gas production so as not to decrease significantly. Furthermore, if these companies do not leave, the government can offer a new scheme that encourages exploration activities.

Conoco-Philips

"Then the company can be asked to explore with a scheme that makes them not afraid as before after there will be a discovery of new reserves. So that there is hope for the future, "explained Rudi.

Previously, he said oil and gas companies were reluctant to explore because of concerns that management rights would not be continued.

Fluctuating Potential

Related to the movement of world crude oil prices, Widhyawan revealed, it had started to move up. This is because OPEC + and non-OPEC + countries cut their oil production very drastically. In addition to the agreement between OPEC + countries, this production reduction is also assessed because some fields are not economical to produce, where most of the production costs are higher than prices.

This is supported by the easing of mobility restrictions (lockdown) which increases oil demand. For example, in the United States, sales of gasoline and aviation fuel have risen again after briefly reaching their lowest levels as people move. Oil prices will improve in line with increased demand at the time of reduced production.

"In my opinion, this will continue until the end of the year and beyond unless there is a phase two pandemic that makes some countries forced

restriction, "explained Widhyawan.

Pri Agung also expressed the same thing. According to him, easing lockdown, reducing oil production by OPEC +, and cutting shale oil production are factors driving improving oil prices.

"With the 'new normal' scenario which is rather optimistic, oil prices will be the US $ 30-40 per barrel or more. This is more likely to happen, "he said.

Rudi also predicts that oil prices will still be in the range of US $ 30-40 per barrel because production cuts by OPEC + have not had a maximum impact. This is because oil stocks have not decreased significantly because oil demand is still low due to Covid-19.

"Maybe the end of the year or early next year will be able to reach above the US $ 40 per barrel like a number that makes producers start producing," he said.

This condition, according to Rudi, will still be very difficult for the national upstream oil and gas industry. He explained that for oil and gas companies that have managed oil and gas blocks in Indonesia, oil prices of US $ 30 per barrel can only make the company alive.

Investor Daily, Page-10, Tuesday, June 2, 2020

The government is advised to invite oil and gas junior companies

The government is advised to invite junior companies (small companies) that focus on oil and gas exploration activities. This is because the discovery of significant oil and gas reserves is the key to achieving the target of producing 1 million barrels of oil per day (BPD) by 2030. 

       Practitioners of Oil and Gas Tumbur Parlindungan revealed that large oil and gas companies rarely voluntarily disburse large funds for large-scale exploration activities. This can be seen from the lack of large oil and gas companies participating in the management of new oil and gas blocks through auctions held by the government.

For this reason, he advised the government to invite junior companies to look for potential oil and gas reserves in the country. This is because, in the world, junior companies usually focus on finding oil and gas reserves to be sold to large oil and gas companies. He gave an example, the discovery of large gas at Tangguh was actually carried out by Arco. However, BP, which is now the operator there, acquired the company.

"We need to invite small companies but want to take exploration risks. We need pioneers who want to drill, we need players who want to play exploration, big companies focus above 100 million barrels and above, "said Tumbur.

According to him, data on oil and gas reserves owned by Indonesia are currently difficult to compete with other regions. At present, large oil and gas companies are actually targeting Africa, which has proven oil and gas reserves in large quantities. This will only happen in Indonesia if there are 11 proven huge oil and gas reserves.

"The company will come if the reserves are proven large," said Tumbur.

Tumbur explained, large companies such as Shell, Chevron, Exxon, and Total would not be interested in oil and gas reserves whose volumes were less than 100 million barrels of oil equivalent. 

Furthermore, companies such as HESS, ConocoPhillips, and National Oil Company (NOC) such as Petronas, PTTEP Thailand, Repsol, will only glance at one area if the reserves are more than 50 million barrels of oil equivalent. 

In fact, he continued, the flow of foreign investment funds is very important so that exploration activities can run massively in Indonesia.

Blogger Agus Purnomo in Petronas PC Ketapang

"We see that our oil and gas block auction is not very large, so it will not be in demand by large companies," he said.

Repsol

On the other hand, the success of finding oil and gas reserves (success ratio) in Indonesia is still less than 50%. This could also be an obstacle to achieving the 1 million BPD oil production target. He gave an example, the findings of oil and gas in Ande-Ande Lumut could be one of the big findings, but the problem of monetization and the use of technology could hamper its development.

Referring to the data of the Ministry of Energy and Mineral Resources (ESDM), the number of the signing of production sharing contracts (PSCs) from oil and gas block auction results has been relatively low since 2015. In 2015, the government signed 8 PSCs. But afterward, although the auction was still held, in 2016-2017, not a single PSC was signed. Furthermore, as many as 11 PSCs were signed in 2018 and 6 PSCs last year. In fact, the signing of the PSC in Indonesia touched 26 contracts in 2011.

Inline, the realization of national oil and gas exploration investment has also been relatively low since 2015. In 2015, the realization of exploration investment was recorded to still reach the US $ 970 million. However, this exploration investment continues to decline to the US $ 916.2 million in 2016, US $ 576.55 million in 2017, and rose to the US $ 786.18 million in 2018. In fact, exploration investment in Indonesia once touched the US $ 3, 05 billion in 2013.

Must be planned

Another strategy from the government to reach the target of 1 million BPD is through enhanced oil recovery (EOR) activities. According to Tumbur, this EOR activity must be planned from the beginning in the development of an oil and gas block. The reason is that EOR activities will not be effective and will require large costs if they are only carried out when the oil and gas reserves of an oil and gas block are almost gone.

"During the decline, the energy strategy has been lost. If it was only EOR at that time, the cost was more expensive. EOR continues improvement, there are pilots from the start. If it's already [production] road it's difficult to run, "said Tumbur.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) once made an additional projection of oil production from EOR activities. Referring to the projection, the newly initiated EOR activities can significantly increase oil production starting in 2025. Referring to the data, national oil production is projected to only be 281 thousand BPD by 2030 if no EOR activities are carried out. However, if the EOR is successfully implemented, oil production can be bent to 520 thousand BPD that year.

However, at present, the EOR activities are still in the pilot phase. PT Pertamina (Persero) through Pertamina EP has implemented EOR in Tanjung Field. The company has also signed the points of understanding between Pertamina and Repsol for full-scale management, including the implementation of surfactant-polymer EOR. In the Jirak and Rantau Fields, Pertamina is conducting a study of the application of surfactant chemicals for the implementation of EOR in both fields.

Furthermore, related to CO2 flooding, Pertamina is currently conducting studies in several fields, namely Jatibarang, Sukowati, and Ramba. Pertamina also expanded this EOR activity to the oil and gas block managed by PT Pertamina Hulu Energi (PHE), namely in the North West Java Offshore Block, precisely in the Zulu Field and E-Main. In addition, in the near future the Batang field, which is operated by PHE Siak, will be an EOR steam flooding pilot project.

Investor Daily, Page-9, Thursday, May 9, 2020

Domestic Gas Optimization Requires Infrastructure

The diversion of gas which has so far been exported to Singapore requires infrastructure development to be optimally used domestically. Commission VII of the House of Representatives (DPR) of the Republic of Indonesia asked the government to conduct a study so that the gas supply would be diverted domestically.

Dwi Soetjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said, even now South Sumatra is an area with excess gas supply. If the gas exported to Singapore is diverted domestically, the gas supply in the region will be even greater.

"So the solution is for the domestic industry to be built in South Sumatra or the gas will be channeled to other places, for example in West Java," he said.

For gas exports, referring to SKK Migas data, it was recorded at 714.26 million cubic feet per day / MMSCFD) until the end of September. This realization was lower than the contract of 814.43 mmscfd. Gas exports through this pipeline are to Singapore and Malaysia.

For information, gas exports to Singapore so far have been through a pipeline managed by PT Transportasi Gas Indonesia (TGI) which runs from the Corridor Block to Duri Field, North Sumatra, and Singapore. 

the Corridor Block

    In Sumatra, besides the TGI pipeline, there is also the Duri-Dumai Gas pipeline. Currently, the Duri-Dumai pipeline supplies gas from the Corridor, Bentu, and Jambi Merang Blocks. Dwi suggested that there is infrastructure development so that the export residual gas can be more widely utilized.

"I think we can point some infrastructure improvements to it," he said.

Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Djoko Siswanto added, the government would not necessarily divert all gas exported to Singapore for the domestic market. The reason is, if domestic gas needs are minimal, this gas should be marketed to other buyers.

"So it is examined, seen the needs and supply. Then, Singapore also still needs gas, "he said.

Previously, ESDM Minister Arifin Tasrif planned to divert the exported gas because the government was also intensively building gas transmission pipelines in Sumatra, Java, and Kalimantan, to increase domestic gas distribution. The plan is for the government to connect the gas pipeline from the northern tip of Sumatra Island to the east end of Java Island. 

    Later, the gas supply which has been exported to Singapore will be diverted to the Duri-Dumai pipeline. Furthermore, the transmission pipeline in Sumatra will also be connected to the gas pipeline in Java. Thus, the existing gas supply can also be channeled to Java.

"We will connect Belawan-Aceh, Sumatra-Java, and then later there will be Cirebon-Gresik. So that the ConocoPhilips, Sakakemang, and Jambaran-Tiung Biru gas fields can be connected, "he explained.

Jambaran-Tiung Biru gas fields

South Sumatra and West Java are now connected to the South Sumatra West Java (SSWJ) Pipe. Furthermore, Pertagas is building the Gresik-Semarang Pipe which is targeted to start operating next year. So that the pipe sections that have not yet been worked are from Semarang to Cirebon, to West Java. The government prioritizes gas production to meet domestic needs.

Referring to SKK Migas data, domestic gas purchases continue to increase every year. In 2003, domestic gas uptake was recorded at only 1,480 BBTUD. Since 2009, the use of gas in the country has increased to reach 3,323 BBTUD and continues to increase. Now until September 2019, domestic gas purchases reached 4,013.67 BBTUD or 65.76% of the total lifting gas of 6,103.26 BBTUD.

IN INDONESIA

Optimasi Gas Domestik Butuh Infrastruktur

Pengalihan gas yang selama ini diekspor ke Singapura membutuhkan pembangunan infrastruktur agar optimal digunakan di dalam negeri. Komisi VII Dewan Perwakilan Rakyat (DPR) Republik Indonesia meminta pemerintah melakukan kajian agar pasokan gas tersebut dialihkan ke dalam negeri. 

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto mengatakan, saat ini pun Sumatera Selatan merupakan daerah yang kelebihan pasokan gas. Jika gas yang diekspor ke Singapura ini dialihkan ke domestik, maka pasokan gas di wilayah itu akan semakin besar.

“Makanya solusinya untuk dalam negeri, industri dibangun di Sumatera Selatan atau gas itu dialirkan ke tempat lain, misal di Jawa Barat,” katanya.

Untuk ekspor gas, mengacu data SKK Migas, tercatat sebesar 714,26 juta kaki kubik per hari/MMSCFD) hingga akhir September lalu. Realisasi ini lebih rendah dari kontrak yang sebesar 814,43 mmscfd. Ekspor gas melalui pipa ini yakni ke Singapura dan Malaysia. 

Sebagai informasi, ekspor gas ke Singapura selama ini melalui pipa yang dikelola oleh PT Transportasi Gas Indonesia (TGI) yang terbentang dari Blok Corridor ke Lapangan Duri, Sumatera Utara dan Singapura. Di Sumatera, selain pipa TGI, juga terdapat pipa Gas Duri-Dumai. Saat ini, Pipa Duri-Dumai mengalirkan gas dari Blok Corridor, Bentu, dan Jambi Merang. Dwi menyarankan, ada pembangunan infrastruktur agar gas sisa ekspor ini bisa lebih luas pemanfaatannya.

“Saya kira beberapa improvement infrastruktur bisa kita arahkan ke sana,” ujar dia.

Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto menambahkan, pemerintah tidak akan serta merta mengalihkan seluruh gas yang diekspor ke Singapura untuk pasar dalam negeri. Pasalnya, jika kebutuhan gas domestik minim, sebaiknya gas ini dipasarkan ke pembeli lain.

“Makanya dikaji, dilihat kebutuhan dan pasokannya. Kemudian, Singapura juga masih perlu gas,” tutur dia.

Sebelumnya, Menteri ESDM Arifin Tasrif berencana mengalihkan gas yang diekspor ini karena pemerintah juga tengah gencar membangun pipa transmisi gas di Sumatera, Jawa, dan Kalimantan, untuk meningkatkan penyaluran gas domestik. 

    Rencananya, pemerintah akan menyambungkan pipa gas dari ujung utara Pulau Sumatera hingga ujung timur Pulau Jawa. Nantinya, pasokan gas yang selama ini diekspor ke Singapura akan dialihkan ke pipa Duri-Dumai. Selanjutnya, pipa transmisi di Sumatera ini juga akan disambungkan dengan pipa gas di Pulau Jawa. Sehingga, pasokan gas yang ada juga dapat dialirkan hingga ke Jawa. 

“Kami akan sambungkan Belawan-Aceh, Sumatera-Jawa, setelah itu nanti ada ke Cirebon-Gresik. Sehingga lapangan gas ConocoPhilips, Sakakemang, dan Jambaran-Tiung Biru bisa tersambung,” jelasnya.

Sumatera Selatan dan Jawa Barat saat ini sudah tersambung dengan Pipa South Sumatera West Java (SSWJ). Selanjutnya, Pertagas sedang membangun Pipa Gresik-Semarang yang ditargetkan mulai beroperasi pada tahun depan. Sehingga ruas pipa yang belum dikerjakan adalah dari Semarang ke Cirebon, hingga Jawa Barat. Pemerintah memprioritaskan produksi gas untuk memenuhi kebutuhan dalam negeri. 

Mengacu data SKK Migas, pembelian gas domestik terus meningkat setiap tahunnya. Pada 2003, serapan gas dalam negeri tercatat hanya 1.480 BBTUD. Sejak 2009, pemanfaatan gas di dalam negeri ini meningkat hingga mencapai 3.323 BBTUD dan terus meningkat. Kini hingga September 2019 lalu, pembelian  gas domestik mencapai 4.013,67 BBTUD atau 65,76% dari total lifting gas 6.103,26 BBTUD.

Investor Daily, Page-9, Saturday, 7 Dec 2019

BPH Migas Agrees to Export Gas to Singapore Stopped

The gas supply contract to Singapore from the Suban Corridor Block managed by ConocoPhillips will expire in 2023. Head of the Downstream Oil and Gas Regulatory Agency (BPH Migas) Fanshurullah Asa supports the government's plan to stop the export of Conoco-Phillips gas to Singapore after the contract expires.

BPH Migas

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, revealed that gas supply from the Conocophillips Suban Field would be diverted to the domestic market to meet domestic gas needs.

Arifin Tasrif

"I support 100% of the gas for domestic interests rather than being exported. For added value and reducing deficits," he said.

To distribute gas from the Corridor Block to the local market, the Duri Dumai, Riau and Sumatra pipelines can be utilized. This gas distribution channel can also flow into Java so that it can be fully utilized to meet local needs. Responding to the plan, ConocoPhillips Vice President Commercial and Business Development Taufik Ahmad said that his party needed to discuss in advance to ensure the government's plan.

ConocoPhillips

"Yes, he said so. We will try to clarify so we understand the context," he said.

Taufik added, in accordance with the current gas purchase and sale agreement, the gas supply contract to Singapore will indeed expire in 2023. However, Taufik said he did not know for certain about the volume of gas currently being distributed. Nevertheless, Taufik stated that ConocoPhillips had not yet sought out potential buyers in the country.

IN INDONESIA

BPH Migas Setuju Ekspor Gas ke Singapura Disetop

Kontrak pasokan gas ke Singapura dari Lapangan Suban Blok Corridor yang dikelola Conocophillips akan berakhir tahun 2023. Kepala Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) Fanshurullah Asa mendukung rencana pemerintah menghentikan ekspor gas Conoco-phillips ke Singapura setelah kontrak berakhir. 

Sebelumnya Menteri Energi dan Suinber Daya Mineral (ESDM) Arifin Tasrif, mengungkapkan pasokan gas dari Lapangan Suban milik Conocophillips akan dialihkan ke pasar domestik untuk memenuhi kebutuhan gas dalam negeri. 

"Saya mendukung 100% gas untuk kepentingan dalam negeri bukan diekspor. Untuk nilai tambah dan mengurangi defisit," katanya.

Untuk menyalurkan gas dari Blok Corridor ke pasar lokal bisa memanfaatkan jalur pipa distribusi gas Duri Dumai, Riau, dan pipa Sumatera. Jalur distribusi gas ini juga bisa bisa mengalir menuju Jawa sehingga bisa dimanfaatkan sepenuhnya untuk pemenuhan kebutuhan lokal. Menanggapi rencana tersebut, Vice President Commercial and Business Development ConocoPhillips Taufik Ahmad menyatakan pihaknya perlu berdiskusi terlebih dahulu demi memastikan rencana pemerintah tersebut.

"Iya, katanya begitu. Kami akan mencoba mengklarifikasi agar kami memahami konteksnya," katanya.

Taufik menambahkan, sesuai dengan perjanjian jual beli gas yang berlaku selama ini, kontrak pemasokan gas ke Singapura memang akan berakhir pada tahun 2023. Namun, Taufik dia mengaku tidak mengetahui secara pasti mengenai volume gas yang disalurkan saat ini. Meski demikian Taufik menyatakan bahwa Conocophillips belum mencari potential buyer di dalam negeri.

Kontan, Page-14, Friday, 6 Dec 2019

New Investment and Reserve is the Key

Business actors assess that large investment and discovery of new reserves are the main keys to pursue the target of producing 1 million barrels of oil per day (BPD) by 2030 amid the downward trend in the production of existing blocks.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) previously set a target of oil production of 1 million BPD in 2030. In order to achieve this target, SKK Migas began to introduce the potential of oil and gas blocks that can be explored by investors. Indonesia 2020 Petroleum Association (IPA) President Louise McKenzie said the government and SKK oil and gas targets to get 1 million BPD of oil production, would be difficult to come from existing oil and gas fields.

"This target requires new projects and discoveries. We know that the government is doing a lot to create opportunities there [target of 1 million bpd], "he said, at the 48th Annual IPA Annual General Meeting press conference.

Mckenzie added that amid declining oil production, additional oil production is needed which is also expected to cover the decline in production and the oil and gas block that is already operating. At present oil production is around 750,000 BPD. 

    On the other hand, to increase the passion of the oil and gas sector, IPA Vice President Ronald Gunawan said the government needs to continue to ensure certainty because this sector is a capital-intensive investment with a long-term orientation.

"If there is no certainty, it is rather difficult to achieve. So we hope that the contract rules must be maintained during the investment process. That is important because it is an attractive factor for investors to invest, "he said.

Ronald admitted during the last 3 years, there have been improvements in the quality of oil and gas licensing in the country. He hopes that the government will continue to simplify licensing and regulations so that the government's target related to oil and gas production is achieved. 

    Petroleum production over the past 10 years has shown a downward trend from 346 million barrels or 949,000 BPD in 2009 to 283 million barrels or 778,000 BPD in 2018. The decline in production was caused by primary oil production wells that are generally old. Meanwhile, the production of new wells is still relatively limited.

The opportunity for the national oil and gas industry is still large because of a total of 128 sedimentary basins in Indonesia, there are still 54 basins that have been explored and which have produced as many as 19 basins. Thus there are still 74 basins waiting to be explored and 35 basins that have been explored are expected to find oil and gas reserves through continuous exploration and investment in the basin.

Dwi Soetjipto

The Head of SKK Migas Dwi Soetjipto said that in carrying out the upstream oil and gas project, SKK Migas prioritized the national capacity building carried out by upstream oil and gas. Dwi also hopes that investment in upstream oil and gas continues to increase. Until 2027, there are 42 main projects with a total investment of US $ 43.3 billion and gross revenue projections of US $ 20 billion.

Later, the total production and 42 projects are 1.1 million boepd which includes oil production of 92,200 BPD and gas of 6.1 billion cubic feet per day (mmscfd). Four of them are national upstream oil and gas strategic projects which are priorities to increase oil and gas production to meet the increasing domestic oil and gas consumption.

"From here [to encourage investment] SKK Migas is making changes so that it is fast, progress is accelerating all arrangements. We will also identify potentials, "he said.

  

OUTSIDE AREA

Expectations of increased production also come from the successful search for new sources of oil reserves. For example, ExxonMobil and ConocoPhillip plan to explore outside their operations to find oil and gas reserves. Dwi said the two Cooperation Contract Contractors (KKKS) from the United States planned to explore open areas.

"They have obligations," he said.

According to him, the choice of KKKS to explore outside its working area, also considers the potential for additional oil and gas reserves. Dwi added that currently, the funds collected from the defined work commitment (KKP) for exploration have reached the US $ 2.5 billion. The funds are obtained from gross profit-sharing contracts.

Azi N. Alam

Regarding exploration plans in open areas, ExxonMobil agrees to the possibility. Vice President of Public and Government Affairs, ExxonMobil Indonesia Azi N. Alam said that the company remained committed to Indonesia and continued to look for other opportunities.

"Both in the Cepu Block and throughout Indonesia, as part of our long-term commitment in Indonesia."

At present, ExxonMobil is the largest oil-producing KKKS in Indonesia. As of September 2019, ExxonMobil Cepu Ltd recorded a ready-to-sell production of 216,011 BPD or exceeding the set target of 216,000 bpd.

IN INDONESIA

Investasi dan Cadangan Baru Menjadi Kunci

Pelaku usaha menilai investasi besar dan penemuan cadangan baru menjadi kunci utama untuk mengejar target produksi minyak 1 juta barel per Hari (bph) pada 2030 di tengah tren penurunan produksi blok eksisting.

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) sebelumnya mencanangkan target produksi minyak sebesar 1 juta bph pada 2030. Demi mencapai target tersebut, SKK Migas mulai memperkenalkan potensi-potensi blok migas yang dapat dieksplorasi investor. Presiden Indonesia Petroleum Association (IPA) periode 2020 Louise McKenzie mengatakan target pemerintah dan SKK migas mendapatkan produksi minyak 1 juta bph, akan sulit datang dari lapangan migas yang sudah ada.

“Target ini membutuhkan proyek dan penemuan yang baru. Kami tahu, pemerintah banyak melakukan hal untuk menciptakan peluang kesana [target 1 juta bph],” tuturnya, dalam konferensi pers Annual General Meeting IPA ke-48.

Mckenzie menambahkan di tengah produksi minyak yang menurun, diperlukan tambahan produksi minyak yang juga diharapkan menutup penurunan produksi dan blok migas yang sudah beroperasi. Saat ini produksi minyak berkisar 750.000 bph. Di sisi lain, untuk meningkatkan gairah sektor migas, Wakil Presiden IPA Ronald Gunawan mengatakan pemerintah perlu terus menjamin kepastian, karena sektor ini merupakan investasi padat modal yang berorientasi jangka panjang.

“Kalau tidak ada kepastian agak susah tercapai. Makanya kami berharap aturan kontrak itu harus terjaga selama investasi berlangsung. Itu penting, karena menjadi faktor menarik para investor untuk berinvestasi,” katanya.

Ronald mengakui selama 3 tahun terakhir, sudah ada perbaikan kualitas perizinan migas di Tanah Air. Dia berharap, pemerintah terus menyederhanakan perizinan dan peraturan agar target pemerintah terkait produksi migas tercapai. Produksi minyak bumi selama 10 tahun terakhir menunjukkan kecenderungan penurunan dari 346 juta barel atau 949.000 bph pada 2009 menjadi 283 juta barel atau 778.000 bph pada 2018. Penurunan produksi tersebut disebabkan oleh sumur-sumur produksi utama minyak bumi yang umumnya sudah tua. Sementara itu, produksi sumur baru relatif masih terbatas.

Peluang industri migas nasional masih besar karena dari total sebanyak 128 cekungan sedimen yang ada di Indonesia, masih 54 cekungan yang telah dieksplorasi dan yang berproduksi sebanyak 19 cekungan. Dengan demikian masih ada 74 cekungan yang menunggu untuk dieksplorasi serta 35 cekungan yang telah dieksplorasi diharapkan dapat ditemukan cadangan migas melalui eksplorasi dan investasi yang terus menerus di cekungan tersebut. 

Kepala SKK Migas Dwi Soetjipto mengatakan dalam menjalankan proyek hulu migas, SKK Migas mengutamakan peningkatan kapasitas nasional yang dilakukan hulu migas. Dwi pun berharap investasi hulu migas terus meningkat. Tercatat hingga 2027 terdapat 42 proyek utama dengan total investasi US$43,3 miliar dan proyeksi pendapatan kotor (gross revenue) sebesar US$20 miliar. 

Nantinya, total produksi dan 42 proyek tersebut 1,1 juta boepd yang mencakup produksi minyak sebesar 92.200 bph dan gas sebesar 6,1 miliar kaki kubik per hari (mmscfd). Empat di antaranya merupakan proyek strategis nasional hulu migas yang menjadi prioritas untuk meningkatkan produksi migas demi memenuhi konsumsi migas domestik yang semakin meningkat. 

“Dari sini [untuk mendorong investasi] SKK Migas melakukan perubahan-perubahan supaya cepat, kemajuan percepatan segala pengurusan. Kami juga akan melakukan identifikasi potensi,” tuturnya.

  

LUAR AREA

Harapan peningkatan produksi juga datang dari keberhasilan pencarian sumber cadangan minyak baru. Sebut saja, ExxonMobil dan ConocoPhillip berencana melakukan eksplorasi di luar area operasinya untuk mencari cadangan migas. Dwi mengatakan kedua Kontraktor Kontrak Kerja Sama (KKKS) asal Amerika Serikat itu berencana melakukan eksplorasi di area terbuka. 

“Mereka kan ada kewajiban,” tuturnya.

Menurutnya, pilihan KKKS untuk melakukan eksplorasi di luar wilayah kerjanya, juga mempertimbangkan potensi tambahan cadangan migas. Dwi menambahkan saat ini dana yang dihimpun dari komitmen kerja pasti (KKP) untuk eksplorasi sudah mencapai US$2,5 miliar. Dana tersebut didapatkan dari kontrak bagi hasil kotor atau gross split. 

Terkait rencana eksplorasi di area terbuka, ExxonMobil mengamini adanya kemungkinan tersebut. Vice President Public and Government Affairs, ExxonMobil Indonesia Azi N. Alam mengatakan pihaknya tetap berkomitmen kepada Indonesia dan terus mencari peluang lain. 

“Baik di Blok Cepu maupun di seluruh Indonesia, sebagai bagian dari komitmen jangka panjang kami di Indonesia.”

Saat ini, ExxonMobil merupakan KKKS penghasil minyak terbesar di Indonesia. Per September 2019, ExxonMobil Cepu Ltd mencatatkan produksi siap jual sebesar 216.011 bph atau melebihi target yang ditetapkan sebesar 216.000 bph.

Bisnis Indonesia, Page-24, Thursday, Dec 5,  2019