The Government will Facilitate the Acquisition of Oil and Gas Blocks Abroad

    The Ministry of Energy and Mineral Resources (ESDM) stated that it would facilitate the acquisition of oil and gas blocks overseas by oil and gas companies in Indonesia. The acquisition of oil and gas blocks in other countries is one of the government's strategies to pursue the oil production target of 1 million barrels per day (BPD) by 2030.

    Director of Oil and Gas Program Development at the Ministry of Energy and Mineral Resources Dwi Anggoro Ismu Kurnianto said the oil production target of 1 million BPD in 2030 has been included in the Grand National Energy Strategy (GSEN) where the National Energy Council (DEN) is finalized.  

    One solution to achieve this target is the acquisition of oil and gas fields abroad. This acquisition was carried out through PT Pertamina (Persero) as a State-Owned Enterprise (BUMN) engaged in the oil and gas sector of national oil and gas companies, such as PT Medco Energi Internasional.

"The government will facilitate through bilateral cooperation, starting with G to G (government to government)," he said.

    The acquisition plan was also conveyed at the 1st Meeting of the Joint Committee on Energy between the Ministry of Energy and Mineral Resources and the Moroccan Ministry of Energy, Mines, and Environment.

    

Blogger Agus Purnomo in SKK Migas

    In this event, representatives of Pertamina and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) were also present so that they could obtain opportunities for cooperation in the oil and gas sector. However, Dwi Anggoro added, that the government's support for the acquisition of this oil and gas block is not limited to Morocco.

"Not only in Morocco but also in other countries," he said.

    Both Pertamina and Medco Energi have also been expanding their upstream oil and gas business overseas. Pertamina has several oil and gas blocks in 12 countries. In Algeria, the company owns shares in the Menzel Lejmat North (MLN), El Merk (EMK), and Ourhoud (OHD) blocks. apart from Algeria. 

    In Iraq, Pertamina holds shares in West Qurna 1 Field. While in Malaysia, Pertamina holds shareholdings in Block K, Block Kikeh, Block SNP, Block SK-309, and Block SK-311.

    Furthermore, after the acquisition of the French oil and gas company, Maurel & Prom, the company has oil and gas assets spread across Gabon, Nigeria, Tanzania, Namibia, Colombia, Canada, Myanmar, Italy, and other countries. However, its main assets that are already producing are in Gabon, Nigeria, and Tanzania. These overseas oil and gas blocks have contributed to Pertamina's overall production which reached 861 thousand barrels of oil equivalent per day/BOEPD in the first quarter of 2021.

    President Director of PT Pertamina Hulu Energi (PHE) Budiman Parhusip had said, the contribution of the realization of this oil and gas production was 147 thousand BOEPD from international oil and gas fields and 713 thousand BOEPD from domestic. In detail, oil production from foreign assets was recorded at 97 thousand bpd and gas 291 MMScfd.

    Meanwhile, on its official website, Medco owns shares in 10 oil and gas blocks overseas. In detail, Blocks 10 and 12 in Mexico, Area 47 in Libya, Block 9 in Yemen, Karim Field in Oman, Blocks 1 and 4 in Tanzania, Bualuang, and Sinphuhorm Fields in Thailand, and Block 12W (Chim Sao and Dua) ​​in Vietnam.

    Some of Medco's oil and gas blocks are already in production. In the first quarter of 2021, Medco's total oil and gas production, both from within and outside the country, was recorded at 101 thousand BOEPD. Dwi Anggoro continued, based on the status at the end of 2020, Indonesia's oil reserves were recorded at 4.2 billion barrels and 62.4 trillion cubic feet of gas. 

    If there are no new discoveries, the age of this oil reserve is only about 9 years and gas about 18 years. To meet domestic demand which reaches 1.5 million bpd, Indonesia is forced to import oil because domestic production is only around 745 thousand bpd.

    However, he said the government would not only rely on additional production from abroad. Although oil production continues to decline, the government will continue to focus on achieving the production target of 1 million bpd with various efforts, including enhanced oil recovery (EOR), increasing exploration activities, utilizing new technology, as well as simplification and flexibility of the procurement process.

Infrastructure development

    In addition to increasing oil and gas production, the government also continues to build oil and gas infrastructure to strengthen national energy security. The government will increase the capacity of fuel oil refineries and build natural gas infrastructure.

“The government encourages the development of national oil and gas infrastructure, both LNG, gas, and refineries. Therefore, we are very open to collaborating with any partner countries in investing in the oil and gas sub-sector,” he said when giving a presentation at the 1st Meeting of the Joint Committee on Energy between the Ministry of Energy and Mineral Resources and the Moroccan Ministry of Energy, Mining and Environment.

    Regarding the development of natural gas infrastructure, Indonesia has prepared a national natural gas master plan, including building PLTMG, gas pipeline infrastructure, and natural gas networks for households. Especially for the gas network, by 2020 696,011 house gas connections (SR) have been built.

"The government targets that by 2024, the number of gas networks built will reach 4 million SR," added Dwi Anggoro.

Investor Daily, Page-10, Tuesday, June 29, 2021.

Caring for Production Increase expectations

 

    The national fuel consumption which is projected to continue to increase makes the target of oil production of 1 million barrels per day and gas of 12,000 MMscfd in 2030 to be crucial at a time when Indonesia's efforts to build energy independence.

    Meanwhile, Indonesia is still the country with the largest oil imports in Southeast Asia due to the increasing domestic consumption of oil and gas without a significant increase in production.

    In the last 2 decades, the discovery of new oil reserves has been classified as minimal and Indonesia still relies on old wells that have not been explored. As a result, the government must import oil and gas to meet domestic energy needs, which often creates a trade balance deficit.

    In the next 10 years, petroleum consumption in Indonesia is projected at 2.27 million barrels per day (BPD) and natural gas consumption of around 11,728 MMscfd. This number has almost doubled compared to last year's consumption of around 1.66 million BPD of oil and 6,557 MMscfd of gas.

    On the other hand, the government's efforts to increase oil production to 1 million BPD and gas to 12,000 MMscfd are still fraught with a number of challenges. One of them is the Covid-19 pandemic which has had a negative impact on the upstream oil and gas industry.

Blogger Agus Purnomo in SKK Migas

    Secretary of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Z. Yunus said Indonesia's upstream oil and gas industry was influenced by global conditions caused by the level of control of the Covid-19 pandemic, fluctuations in world oil prices, and global investment trends.

    According to him, a tough challenge for the upstream oil and gas industry is the massive impact of Covid-19 which has caused oil prices to fall. As a result, production has also decreased, because oil and gas companies tend to reduce their investment.

    Last year, a number of international oil and gas companies that cut their investment were ExxonMobil by 30%, Shell by 20%, Chevron 20%, BP 25%, and Eni 255.

"What they need is to compete with other countries from the IRR, then the future trend is to look at environmentally friendly energy because from a social point of view it will be easier," he said.

    Meanwhile, SKK Migas has prepared four strategies to increase national oil and gas production as well as towards the 2030 production target, namely by optimizing production in existing fields, transforming resources into production, accelerating chemical Enhanced Oil Recovery (EOR), and exploring major discoveries.

    The long-term strategy will go through two stages to curb the rate of decline in production and increase production.

"The first and second strategies are to hold down the rate of production, while the increase in production will result from the EOR and exploration strategies," he explained.

    Head of SKK Migas Dwi Soetjipto added that investment needs will continue to increase for the next 10 years in order to pursue the oil production target of 1 million BPD and gas of 12,000 MMscfd. The investment is set at the US $ 187 billion.

    Dwi said that besides being attractive to investors, the target could provide a multiplier effect in the form of the gross revenue of US $ 371 billion with state revenues of US $ 131 billion in 2030. In addition, with money circulating from upstream oil and gas projects and open job opportunities, it will have an impact. both for the national and regional economies.

    Nevertheless, there are several challenges that need to be resolved domestically, namely the complexity of licensing, overlapping regulations between the central and regional governments, an unattractive fiscal regime, data unavailability, constraints in the area of ​​operation, land acquisition constraints, the longer oil and gas monetization process. and fear of making decisions, in this case, the criminalization of policies.

    Meanwhile, Ronald Gunawan, President Director of PT Medco E&P Indonesia, said 2020 was a difficult year for the upstream oil and gas industry. The Covid-19 pandemic has suppressed the performance of cooperation contract contractors (KKKS).

    According to him, the world oil price dropped drastically in the last year and followed by low natural gas prices made the upstream oil and gas sector languish. However, with efforts escorted by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), operational activities can continue in the midst of a pandemic.

"SKK Migas support is very good. Hence, the operations of the KKKS are a little disrupted but not significant, ”he said.

Ronald said the vision to pursue the oil production target of 1 million BPD and 12,000 MMscfd of gas by 2030 has become a joint commitment of the government, SKK Migas, and KKKS.

    Meanwhile, since 2015 Medco has continued to increase its oil and gas production levels from the range of 56,000 barrels of oil equivalent per day (Mboepd) to reach the level of 100,000 Mboepd in 2020.

    According to him, the Covid-19 pandemic provides new lessons for running operations more efficiently. With a 20% reduction in capital expenditure or capital expenditure, Medco is still able to record an increase in production amid the pandemic.

INCENTIVE

    An energy observer who once served as Governor of Indonesia for OPEC, Widhyawan Prawiraatmadja, said that there needs to be an incentive provided by the government to be able to pursue the target of increasing oil and gas production.

    He said that it is possible to increase oil and gas production again in Indonesia. He gave an example that other countries, such as the United States and Mexico, had successfully implemented reliable technology, improved fiscal policy, and improved the business climate in an integrated manner.

"We have to do something drastic, the fiscal term must be the same as in other places. "The higher the spend, the higher the chances of getting the giant, this has been proven in Mexico," he said.

    Meanwhile, a Member of the National Energy Council, Satya Widya Yudha, said that in the context of energy security, the government needs to pay attention to affordability.

    Therefore, fossil energy will still be very dominant in the future, but still paying attention to environmental factors that will be supported by technology.

"So if our renewable energy is still less affordable, as a whole people will go to fossils, the world will go to fossils," he said.

Bisnis Indonesia, Page-4, Thursday, April 29, 2021.

SKK Migas Records EOR Commitment of US $ 446 Million

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted a commitment to implementing Enhanced Oil Recovery (EOR) activities of up to the US $ 446 million. 

Blogger Agus Purnomo in SKK Migas

    EOR activities, especially in the Rokan Block, will support the achievement of the oil production target of 1 million barrels per day (BPD) by 2030.

    EOR is an advanced oil recovery method by adding energy in the form of special material or fluid that is not contained in an oil reservoir. Generally, EOR is applied to fields that have long been produced (mature fields) with the aim of extracting remaining oil that cannot be produced by primary and secondary recovery methods (water flooding).

    Some of the most widely known EOR techniques today are injection steam flooding, chemical flooding, and gas flooding. 

Dwi Soetjipto

    Head of SKK Migas Dwi Soetjipto said the EOR activities to be carried out were water injection and chemical injection. To date, his party has recorded 23 EOR projects using polymers or surfactants which will operate until 2030.

"The firm work commitment (KKP) for EOR to date totals the US $ 466 million," he said.

    Of the 23 EOR projects, his party will focus on its implementation in the Rokan Block. 

the Rokan Block Chevron

    In blocks whose management will shift to Pertamina in August 2021, his party will re-evaluate the existing plan of development / POD and steam injection projects such as in North Duri Development (NDD) 14, Duri Ring, and others. In addition, his party will encourage the completion of Chemical EOR Phase-1 at Minas Field in early 2022.

"The Minas field is the main support for the EOR strategy with an additional production of around 52 thousand BPD in 2030," said Dwi.

    Regarding the progress of EOR implementation, 23 fields are still in the study stage. Meanwhile, one field is currently working on field trials and one field is being discussed on POD. Of the 23 EOR projects, most of them were Pertamina Group projects.

    In details, PT Pertamina Hulu Rokan (PHR) will carry out 7 EOR projects, PT Pertamina EP 2 projects, PT Pertamina Ogan Komering 2 projects, PT Pertamina Hulu Energi Noth West Java (ONWJ) 2 projects, PT Pertamina Hulu Offshore South East Sumatra (OSES) 2 projects , PT Pertamina Hulu Energi Siak 1 project, PT Pertamina Hulu Mahakam 1 project, and PT Pertamina Hulu Energi Tuban 1 project. In addition, BOB Bumi Siak Pusako will work on 1 EOR project, PT Energi Mega Persada (EMP) 1 project, Medco EP Indonesia 1 project, and 1 Petrogas project.

    Referring to SKK Migas data, the schedule for implementing one field (full field) for these EOR projects is Minas and Batang in 2024, Bekasap and E-main in 2025, Zulu in 2026, Tanjung, Rama, and Handil in 2027, Pedada, Sukowati, Gemah, Melibur, and Walio in 2028, Duri Ring, Bekasap, Kulin, Balam South, Bangko, and Kaji Harapan in 2029, as well as Air Serdang, Guruh, Krisna, and Mudi in 2030.

    Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), Tutuka Ariadji, said that the application of EOR technology is not easy. In order for this EOR project to run smoothly in the long term, a strong research and development institution is needed to support it.

"Backing up research and development is absolute. If there are strong research and development, we can monitor oil and gas production. The oil and gas industry needs technology and competent people. There is no compromise on that, "he said.

    Meanwhile, Ronald Gunawan, Director of the Indonesia Petroleum Association (IPA), said that EOR activities are difficult to carry out under current conditions. This is because, with the current oil price conditions, the project is not economical when referring to the current fiscal scheme in Indonesia. If it is economical, oil and gas companies will certainly do it and boost oil production as much as possible.

Investor Daily, Page-9, Saturday, Feb 6, 2021

The Government Needs to Provide Fiscal Flexibility to Boost Oil and Gas Production

Indonesia is considered to still have the potential for oil and gas to realize the national oil production target of 1 million barrels per day (BPD) and 12 billion cubic feet of gas per day by 2030. However, to achieve that, the government needs to change the fiscal aspects of current oil and gas contracts to be more flexible. according to the conditions of the oil and gas block.

Bij Agarwal

Acting President of the Indonesia Petroleum Association (IPA), Bij Agarwal, said that currently the global oil and gas industry has been hit by the oil price war and the Covid-19 pandemic. This condition forces global oil and gas companies to cut their investment budgets, one of which is to prioritize projects with a high Internal Rate of Return/IRR. 

    As a result, oil and gas investment funds that enter Southeast Asia, including Indonesia, are getting smaller. So that Indonesia must be competing to attract these funds. On the other hand, he added, Indonesia is less attractive than other countries.

Referring to Wood Mc. Kenzie who saw how attractive the fiscal prerequisites for oil and gas in certain countries were related to the potential for oil and gas, fiscal and policy stability, and project costs, Indonesia got 2.35 points. This is despite the fact that the average level of global fiscal attractiveness is at the level of 3.3. In fact, Indonesia still has oil and gas potential that can be developed to realize the oil production target of 1 million BPD in 2030.

"For that, we have to find a way so that this limited investment fund can be allocated in Indonesia by oil and gas companies. One of them is by increasing the economic level of oil and gas projects in Indonesia, "said Bij in an online discussion entitled The Role of Internal Audit to Safeguard 1 Million Barrel Oil Production Target.

IPA, he explained, noted three things that must be improved to achieve the target of 1 million BPD. First, the government establishes a globally competitive fiscal aspect, which includes flexibility in the types of oil and gas contracts, better split, gas prices, the principle of Assume and Discharge, taxation, and Tax Holiday.

Second, the government must be able to provide sanctity of contracts, including preventing criminalization attempts. Finally, the ease of doing business, including more efficient licensing and approval.

"The target of 1 million BPD is impressive, but this can be achieved if these three things are met. The resources are there, we have to make it economically attractive, ”said Bij.

Hilmi Panigoro

The President Director of Medco Energi Hilmi Panigoro also shared the same opinion. According to him, the oil production target of 1 million BPD is not impossible to achieve as long as the fiscal aspects offered are very attractive.

According to him, Oman has succeeded in increasing its oil production from below 700 thousand BPD to more than 1 million BPD in this way. He said that Oman's additional oil production was mostly obtained from enhanced oil recovery (EOR) activities. 

    To encourage oil and gas companies to strive to increase the production of block oil under its management, Oman provides special contracts according to the conditions of each oil and gas block. Medco, which manages one of the blocks in the country, is given a service contract.

"We are not given any risk, all costs are reimbursed, we are only asked to increase production and get a reward of 5% of the resulting production. So there is an incentive for investors to be enthusiastic about doing various technically and financially ways to increase production, "Hilmi explained.

According to Hilmi, this strategy can be emulated in Indonesia. Moreover, one of the strategies to achieve 1 million BPD oil production is to implement EOR. The government he said that he could form a team that identified several fields that could be candidates for EOR and drafted special contracts tailored to the conditions of each field.

"The fiscal term for each field must be different. That's the key to success. So far, EOR is the willingness to create a flexible fiscal term in accordance with the field. Today there are 1-2 field candidates, but they cannot be EOR due to fiscal term constraints, "he explained.

Dwi Soetjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said there are four strategies to pursue the production of 1 million BPD in 2030. The details are maintaining existing production, accelerating the transformation of resources to reserves, EOR, and exploration. 

Blogger Agus Purnomo in SKK Migas

    To maintain existing production, his company has realized an additional 18,300 BPD of oil production and 17 million standard cubic feet per day / MMscfd of gas this year. SKK Migas has also succeeded in encouraging initial investment in the Rokan Block to drill wells during the management transition period.

Sakakemang Block

Furthermore, to accelerate the addition of reserves, his party has accelerated the operation of PB Field, Mahato Block, and KBD Field, Sakakemang Block. In addition, his party also has a Massive Development Plan (MDP) program and delineation well drilling to accelerate the development of undeveloped findings.

"There are 3 MDPs with potential reserves of 88 MMBOE (million barrel oil equivalent) that have been approved, 3 MDPs of 450 MMBOE were submitted to the Minister of Energy and Mineral Resources, and 3 MDPs of more than 200 MMBOE in the evaluation," Dwi said.

For EOR activities, his party is currently evaluating the EOR chemical substance EOR pre-plan in Minas Field, Rokan Block with an operation target in 2024. PT Pertamina EP has also conducted EOR polymer field trials in Tanjung Field. Regarding exploration activities, PT Pertamina Hulu Energi has conducted 2D seismic data acquisition in an open area of ​​32,200 km.

"This data will be open in the next year," he said.

Next, there are also plans to drill large wells, namely 6 giant wells and 2 discovered wells. The success ratio of exploration drilling in Indonesia in 2020 is recorded at 55%. Furthermore, to accelerate the addition of reserves, his party has accelerated the operation of PB Field, Mahato Block, and KBD Field, Sakakemang Block. In addition, his party also has a Massive Development Plan (MDP) program and delineation well drilling to accelerate the development of undeveloped findings.

"There are 3 MDPs with potential reserves of 88 MMBOE (million barrel oil equivalent) that have been approved, 3 MDPs of 450 MMBOE were submitted to the Minister of Energy and Mineral Resources, and 3 MDPs of more than 200 MMBOE in the evaluation," Dwi said.

PT Pertamina EP

For EOR activities, his party is currently evaluating the EOR chemical substance EOR pre-plan in Minas Field, Rokan Block with an operation target in 2024. PT Pertamina EP has also conducted EOR polymer field trials in Tanjung Field. Regarding exploration activities, PT Pertamina Hulu Energi has conducted 2D seismic data acquisition in an open area of ​​32,200 km.

PT Pertamina Hulu Energi

"This data will be open in the next year," he said.

Next, there are also plans to drill large wells, namely 6 giant wells and 2 discovered wells. The success ratio of exploration drilling in Indonesia in 2020 is recorded at 55%.

Investor Daily, Page-10, Tuesday, Nov 3, 2020

Medco West Eel Exploration Well Drill-1

 

Medco E&P Natuna Ltd (Medco) began drilling the West Belut-1 exploration well in Block B South Natuna Sea, Riau Islands. The West Belut-1 well is the fourth exploration well drilled by Medco in Block B South Natuna Sea this year.

Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman appreciated Medco's aggressive move to drill exploration wells amid the Covid-19 pandemic. 

Blogger Agus Purnomo in SKK Migas

    Prior to West Belut-1, Medco had also drilled exploration wells for Bronang-2, Kaci-2, and Terubuk-5 in Block B South Natuna Sea.

"This is an endeavor in the midst of the situation we face. We hope that this drilling will also succeed in adding to the national oil and gas resources following the success of previous wells, "he said.

From previous drilling activities, the Kaci-2 Well succeeded in delivering high-quality dry gas with test results of 13 million cubic feet per day (million standard cubic feet per day / MMscfd) from 2 DST zones. Meanwhile, the flow test results from the Bronang-2 exploration well were recorded at 45 MMscfd from 4 DST zones.

    Furthermore, Medco also succeeded in finding additional oil and gas resources through the Terubuk-5 well drilling. From the three results of the well testing interval, this well is proven to flow 33 MMscfd of gas and 3,300 barrels of oil and condensate per day (bpd) from 3 DST zones.

Fatar Yani hopes that drilling activities and the like will always get support from various related parties. Thus, efforts to increase national oil and gas resources can be carried out smoothly.

"Hopefully in the future, we will get significant additions, so that the goal of 1 million barrels of oil per day in 2030 can be realized," he added.

Investor Daily, Page-10, Monday, Oct 5, 2020.

Upstream Oil and Gas Preparing to Go

Upstream oil and gas industry players are gearing up to spur operational performance when the new normal order is implemented. 

Dwi Soetjipto

    The Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that with world oil prices that have passed the level of US $ 40 per barrel became a positive sentiment for investment in upstream oil and gas activities in the country.

"With the improving oil price, investment in upstream oil and gas will also improve," he said.

Dwi added, his party would review upstream oil and gas activities to be more optimal.

"Next, we will wait for how to optimize activities in Hulu Migas in the new-normal era," he said.

Meanwhile, SKK Migas Deputy for Operations Julius Wiratno said that with the implementation of the new normal period it is expected that upstream oil and gas operational activities would be more productive.

"Because the mobilization of people and goods is not disrupted," he said.

SKK Migas has sent a circular to the Cooperation Contract Contractor (KKKS) related to the preparation and implementation of new normal operations. He revealed the preparation and implementation of new normal operations while adhering to existing health protocols and applicable in the area of ​​oil and gas operations. 

     There are no specific directives, which are important according to the existing protocol. "We're trying if we can quarantine before crew change for one week instead of 2 weeks," he explained.

Sonitha Poernomo

Chevron Pacific lndonesia Corporate Communication Manager Sonitha Poernomo said that the company continues to monitor the current Covid-19 pandemic situation. She said it had used guidelines from international and domestic health authorities.

"Our main concern is employee health and safety and we take precautions to reduce the risk of exposure by ensuring safeguards are available and functioning properly," She said.

Similarly, PT Medco Energi International Tbk. ensuring the sustainability of the company's operations during the Covid-19 pandemic. 

Hilmi Panigoro

     President Director of Medco Energi Hilmi Panigoro said that the company is committed to safeguarding the safety of workers in the work area and maintaining business continuity by complying with the Covid-19 health and safety protocols regulated by the government.

He said that his party was facing a period full of challenges. The rapid decline in energy demand in the face of increasing oil production is a challenge for the industry.

"However, Medco Energi is optimistic that it will succeed in facing challenges caused by the Covid-19 pandemic," he said.

Previously, Medco targeted the company's oil and gas production this year to reach 110,000 barrels of oil equivalent per day. In another development, PT Pertamina Hulu Energi said it would recalculate the economic value of the project in line with the upward trend in oil price movements.

Director of Pertamina Hulu Energi (PHE) Meidawati said that all projects undertaken would recalculate their economic value. The calculation was carried out on several exploration and development drilling projects that can maintain and increase the company's oil and gas reserves and production.

Bisnis Indonesia, Page-4, Thursday, June 11, 2020.

SKK Migas Seeks 12 Oil and Gas Projects This Year is Not Delayed

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) seeks to prevent 12 oil and gas projects scheduled to start production this year due to the widespread of the Corona Virus.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said that the Covid-19 pandemic, which was followed by a call for the community to remain at home, made the oil and gas operational schedule for the project shifted from the plan. From his observation, there is one oil and gas project which has the potential to be delayed from this year's operation to next year.

"But we are trying to minimize the shift. We will inform you more fully in mid-April, "he said.

SKK Migas

SKK Migas Deputy for Operations Julius Wiratno added that the oil and gas project development has the potential to be disrupted due to a change in crew and logistics supply. Nevertheless, he will continue to conduct intensive coordination to mitigate and carry out recovery plans for the oil and gas project. In fact, several projects he said had been operating.

Blogger Agus Purnomo in SKK Migas

"Of the 12 projects in 2020, there are already four projects that are on stream (starting operations), all according to schedule. Hopefully, everything can run smoothly, "he said.

Of these four projects, three are scheduled to be operational in the first quarter of 2020, namely the Grati Pressure Lowering Project with a capacity of 30 million cubic feet per day / mmscfd by Ophir Indonesia (Sampang) Pty Ltd, Buntal-5 45 mmscfd by Medco E&P Natuna Ltd, and Sembakung Power Plant by PT Pertamina EP.

While one more project was completed earlier than planned in the second quarter, the Randu Scissors Project with an estimated production of 3 mmscfd by PT Pertamina Hulu Energi Randu Gunting. In addition, there are eight other projects planned to operate this year.

Blogger Agus Purnomo in Petronas Carigali Ketapang

In the first quarter, Bukit Tua Phase-3 with an estimated production of 31.5 mmscfd by Petronas Carigali Ketapang II Ltd is planned to start operations. Furthermore, three projects will operate in the second quarter, namely 15 mmscfd Betung Compressors by PT Pertamina EP, Malacca Strait Phase-1 3,000 bpd by EMP Malacca Strait, and Meliwis 20 mmscfd by Ophir Indonesia (Madura Offshore) Pty Ltd.

In the third quarter of 2020, there were three oil and gas projects scheduled to operate. These three projects are the 2.4 mmscfd Beauty Project by PT Sele Raya Belida, the 150 mmscfd LP-MP Compressor by PT Pertamina EP, and Peciko 8A 8 mmscfd by PT Pertamina Hulu Mahakam. Finally, the Merakes Project by ENI Indonesia is scheduled to begin production in the fourth quarter of 2020. 

ENI

At the Merakes Field, ENI plans to drill six subsea wells and build an underwater pipeline system that will be connected to the floating cricket production facilities / Jangkrik FPU in Muara Bakau Block. The peak production of the Merakes Field is estimated to reach 60,305 barrels of oil equivalent per day / boepd.

the Merakes Field

In 2020, the national oil and gas lifting is set at 1.95 million barrels of oil equivalent per day / boepd, up slightly from last year's realization of 1.8 million boepd. Specifically, oil production rose to 755 thousand BPD from the realization of 746 thousand BPD, and gas to 1.19 million boepd from the realization of 1.06 million boepd.

Investor Daily, Page-9, Friday, March 27, 2020

Medco E&P Continues to Work on Increasing Oil and Gas Production

PT Medco E&P Indonesia Continues to strive to boost production. This subsidiary of PT Medco Energi Internasional Tbk (MEDC) increases oil and gas exploration and exploitation activities in all work areas.

PT Medco E&P Indonesia's Vice President Relations & Security, Drajat Panjawi, said that currently he and SKK Migas have managed 14 oil and gas working areas. From that working area, Medco E&P was able to record total production with an average of 86,000 barrels of oil equivalent per day (boepd).

       Drajat said Medco E&P was able to maintain and even increase production in line with the integration of Ophir's operations. In May 2019, the Medco Group officially acquired Ophir Energy Plc, a UK-based energy company.

"This integration can confirm Medco E&P's position as a leading energy company in Southeast Asia," Drajat said.

Medco continues to increase oil and gas production to help sustain national energy security. Currently, Medco is working on two oil and gas production projects which will soon be completed. Both are Temelat projects with a projected production of 10 mmscfd and Buntal-5 with an estimated production of 45 mmscfd. 

     Medco targets the Temelat Field in the South Sumatra Block to produce in December 2019. For the Buntal-5 Field, Medco targets its construction to be completed in the first quarter of 2020.

IN INDONESIA

Medco E&P Terus Berupaya Menggenjct Produksi Migas

PT Medco E&P Indonesia Terus berupaya menggenjot produksi. Anak usaha PT Medco Energi Internasional Tbk (MEDC) ini meningkatkan aktivitas eksplorasi dan eksploitasi minyak dan gas bumi di semua Wilayah kerja. 

Vice President Relations & Security PT Medco E&P Indonesia, Drajat Panjawi, mengungkapkan saat ini pihaknya bersama SKK Migas telah mengelola 14 Wilayah kerja migas. Dari Wilayah kerja itu, Medco E&P mampu mencatatkan total produksi dengan rata-rata sebesar 86.000 barel setara minyak per hari (boepd). 

Drajat bilang, Medco E&P mampu mempertahankan, bahkan meningkatkan produksi seiring dengan terintegrasinya operasi Ophir. Pada Mei 2019, Grup Medco resmi mengakuisisi Ophir Energy Plc, perusahaan energi yang berbasis di Inggris. 

"Integrasi ini dapat menegaskan posisi Medco E&P sebagai perusahaan energi terkemuka di Asia Tenggara," kata Drajat.

Medco terus berupaya meningkatkan produksi migas untuk ikut menopang ketahanan energi nasional. Saat ini, Medco sedang menggarap dua proyek produksi migas yang akan segera rampung. Keduanya adalah proyek Temelat dengan proyeksi produksi 10 mmscfd dan Buntal-5 dengan estimasi produksi 45 mmscfd. 

     Medco menargetkan Lapangan Temelat di Blok South Sumatra bisa berproduksi pada Desember 2019. Untuk Lapangan Buntal-5, Medco menargetkan pembangunannya selesai pada kuartal I 2020.

Kontan, Page-14, Tuesday, Dec 3,  2019

Medco committed to Increase Oil and Gas Production

PT Medco E&P Indonesia continues to increase production, through various oil and gas exploration and exploitation activities in all work areas. This effort is a company's commitment in supporting the government to maintain national energy security. 

    

    Medco noted that oil and gas production in the first semester reached 86 thousand barrels of oil equivalent per day (BOEPD). The realization increased compared to the same period last year which was around 82,400 boepd.

Medco E&P Vice President of Relations and Security Drajat Panjawi said the realization of oil and gas production in the first half of this year came from 14 work areas spread across Indonesia. He emphasized that the production results were Medco's commitment in maintaining national energy security.

"The company is able to maintain, even increase total production in line with the integration of Ophir operations," Drajad said at a media gathering in Jakarta.

Ophir Energy plc

The integration of Ophir's operations is in line with the completion of the acquisition of Ophir Energy plc in May. Ophir's assets greatly complement MedcoEnergi's existing portfolio and this business combination makes the company a leading regional oil and gas business operator in Southeast Asia. 

     Ophir's acquisition will increase the company's production performance this year by 29% or 110 thousand BOEPD. Not only that, the combined magnitude of 2P reserves and 2C resources rose by 86% to 1.44 billion barrels of oil equivalent.

"This integration can confirm Medco E&P's position as a leading energy company in Southeast Asia," said Drajad.

In the same place, Head of the Program and Communication Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Wisnu Prabawa Taher said, national oil production is currently around 750 thousand barrels of oil per day (BPD). However, SKK Migas targets to increase production to 1 million BPD by 2030. 

     He revealed, there are four strategies to achieve this target. In particular, it will maintain existing production, convert resources into production, intensify advanced oil recovery (EOR) drilling techniques, and continue to explore.

"Exploration is important because when we increase production it is through exploration," he said.

Wisnu revealed that around the US $ 1.7 billion in exploration funds came from the Certain Work Commitments (KKP) in the Cooperation Contract. Exploration activities are carried out not only within the oil and gas Working Area (WK) but also in open areas to encourage more new oil and gas fields to be discovered.

"When we talk about the exploration of how to fund investment, we have a KKP," said Wisnu.

IN INDONESIA

Medco Berkomitme Tingkatkan Produksi Migas

PT Medco E&P Indonesia terus berupaya meningkatkan produksi, melalui berbagai aktivitas eksplorasi dan eksploitasi minyak dan gas bumi di semua wilayah kerja. Upaya ini merupakan komitmen perusahaan dalam mendukung pemerintah menjaga ketahanan energi nasional. 

      Medco mencatat produksi migasnya pada semester pertama lalu mencapai rata-rata 86 ribu barel setara minyak per hari (barrel oil equivalent per day/BOEPD). Realisasi tersebut meningkat dibandingkan periode yang sama tahun lalu sekitar 82.400 boepd.

Vice President Relations and Security Medco E&P Drajat Panjawi mengatakan, realisasi produksi migas di semester pertama tahun ini tersebut berasal dari 14 wilayah kerja yang tersebar di seluruh Indonesia. Dia menegaskan hasil produksi itu merupakan komitmen Medco dalam menjaga ketahanan energi nasional.

“Perusahaan mampu mempertahankan, bahkan meningkatkan total produksi seiring dengan terintegrasinya operasi Ophir,” kata Drajad dalam acara media gathering di Jakarta.

Integrasi operasi Ophir seiring dengan rampungnya akuisisi Ophir Energy plc pada Mei kemarin. Aset Ophir sangat melengkapi portofolio MedcoEnergi yang ada dan gabungan bisnis ini menjadikan perusahaan sebagai pelaku usaha minyak dan gas regional yang terkemuka di Asia Tenggara. 

     Akuisisi Ophir ini akan meningkatkan kinerja produksi perusahaan tahun ini sebesar 29% atau menjadi 110 ribu boepd. Tidak hanya itu, besaran gabungan cadangan 2P dan sumber daya 2C naik sebesar 86% menjadi 1,44 miliar barel setara minyak.

“Integrasi ini dapat menegaskan posisi Medco E&P sebagai perusahaan energi terkemuka di Asia Tenggara,” tutur Drajad.

Di tempat yang sama, Kepala Divisi Program dan Komunikasi Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Wisnu Prabawa Taher menuturkan, produksi minyak nasional saat ini sekitar 750 ribu barel minyak per hari (bph). Namun, SKK Migas menargetkan peningkatan produksi menjadi 1 juta bph pada 2030. 

     Dia mengungkap, ada empat strategi untuk mencapai target tersebut. Rincinya, pihaknya akan mempertahankan eksisting produksi, mengubah sumber daya menjadi produksi, menggencarkan teknik lanjutan pengeboran (enhanced oil recovery/EOR), serta terus melakukan eksplorasi.

“Eksplorasi penting, karena ketika kita menaikan produksi itu adalah melalui eksplorasi,” ujarnya.

Wisnu mengungkapkan, dana eksplorasi tersedia sekitar US$ 1,7 miliar yang berasal dari Komitmen Kerja Pasti (KKP) dalam Kontrak Kerja Sama. Kegiatan eksplorasi yang dilakukan bukan hanya di dalam area Wilayah Kerja (WK) migas, tetapi juga di area terbuka untuk mendorong ditemukan lebih banyak lapangan migas baru. 

“Kalau kita bicara eksplorasi bagaimana mendanai investasi, kita punya KKP,” kata Wisnu.

Investor Daily, Page-9, Monday, Dec 2,  2019