Pertamina's Plan to Release Oil and Gas Block Shares is Hampered by Regulations

    PT Pertamina (Persero) 's plan to release a majority share ownership (participating interest / PI) in several oil and gas blocks that it manages has not been implemented due to regulatory constraints. Referring to the prevailing regulations, the company is not allowed to release more than 41% shares.

PT Pertamina Hulu Energi (PHE)

    Director of Strategic Planning and Development of PT Pertamina Hulu Energi (PHE) John H Simamora said that his party has categorized all oil and gas blocks that it manages into several clusters. One of these clusters consists of oil and gas blocks that have the potential to release the majority of their share ownership to another company.

"Some of this needs to be divested, but the current law does not regulate this. We are still in discussion with the government to divest this oil and gas block, so it is still a long way to go, ”he said.

    He explained that in the current regulations, Pertamina can only release PI ownership of a maximum of 41%. In fact, it does not always need to hold such large shares or the operatorship share in all the blocks it manages. Some of the oil and gas blocks to be divested are actually minus for the company. On the other hand, his party has other priorities in developing upstream assets.

"We want to focus on exploration and field optimization, including the EOR (enhanced oil recovery) study," said John.

    Currently, his party is still discussing the PI divestment regulation issue with the government. The number of oil and gas blocks whose shares are released also has the potential to change depending on the development of oil prices. If the price of oil improves in the future, the number of oil and gas blocks to be divested will be smaller.

"Regarding this regulation, we discussed with the Ministry of Energy and Mineral Resources and BUMN, and this can be resolved," he said.

    Previously, Pertamina had divided all of its oil and gas blocks into four clusters based on the number of reserves and the remaining oil and gas block production period. The first cluster includes oil and gas blocks that have a remaining oil and gas production period of more than 10 years. 

    The second cluster is the oil and gas block which can still be produced in the next 5-10 years. The third cluster is an oil and gas block that Pertamina can cooperate with for the medium scale.

    Meanwhile, the last cluster is an oil and gas block, which is actually more suitable to be managed by an oil and gas company smaller than Pertamina. This last cluster is planned to be released by the company. 

    Energy Saver from Trisakti University Pri Agung Rakhmanto assessed that the PI divestment by Pertamina was a normal corporate action for oil and gas companies. This step is usually taken to optimize the investment portfolio.

"In order to focus on perspective and provide a high economy," he said.

    For the national upstream oil and gas industry, Pertamina's strategy also opens up opportunities for other oil and gas companies with different standards to take over the management of these oil and gas blocks. Although, whether the divestment will be attractive or not still depends on the current market.

"It remains the market which will determine later, whether it is considered attractive by other actors or not," explained Pri Agung.

    Currently, Pertamina manages as many as 91 oil and gas assets at home and abroad through several of its subsidiaries. There are 56 oil and gas blocks in the country that are worked on by PT Pertamina Hulu Energi to manage 50 oil and gas blocks, PT Pertamina EP 1 oil and gas block, PT Pertamina EP Cepu (PEPC) 1 block, PT Pertamina EP Cepu (PEPC) ADK 1 oil and gas block, PT Pertamina Hulu Indonesia 3 oil and gas blocks.

    While abroad, as many as 35 assets are managed by and PT Pertamina Internasional EP. Referring to PHE data, this year, the company's oil production is targeted at 412 thousand barrels per day (BPD) and gas 2,710 million cubic feet per day (million standard cubic feet per day / MMscfd). As of August, the realization of oil production was recorded at 414 thousand barrels per day (BPD) or exceeded the target and gas was 2,670 MMscfd or 98.5% of the target.

Investor Daily, Page-10, Saturday, Nov 21, 2020

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

SKK Migas Accelerates Three Oil and Gas Projects

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) accelerated the operational schedule of the three national upstream oil and gas projects to this year at the time of mobility restrictions due to Covid-19. The three projects will increase oil production by 3,000 barrels per day and gas by 5 million cubic feet per day / MMSCFD.

SKK Migas Deputy for Operations Julius Wiratno said the three oil and gas projects were the development of the Big Bamboo Project and the construction of the Sembakung gas compressor facility by PT Pertamina EP, and the reactivation of the PHE-12 platform by PT Pertamina Hulu Energi West Madura Offshore (PHE-WMO). These three projects should only be completed next year.

Blogger Agus Purnomo in PHE-WMO

"But these projects can be completed by 2020," he said.

He explained the Big Bamboo Block Project would produce gas of 3 mmscfd. At present, the project is still in the stage of working on the engineering, procurement, and construction / EPC package and will go on stream in the third quarter of this year. While reactivation of the PHE-12 platform is an improvement activity that was skewed in 2017 ago.

This project is targeted to be realized later this year and can produce oil of 3,000 BPD. Furthermore, the Sembakung compressor project is also scheduled to be completed by the end of 2020 and will produce 2 MMSCFD of gas.

"The success in accelerating the realization of the upstream oil and gas project when the mobility restrictions in the context of Covid-19 mitigation shows the determination and enthusiasm of the upstream oil and gas people to be able to implement the program agreed in the Work Program and Budget (WP&B) 2020 optimally and efficiently," said Julius.

Julius also revealed that the Meliwis Block Project undertaken by Ophir Indonesia (Madura Offshore) will be completed and start operating this July. This project will produce a gas of 20 MMSCFD.

Dwi Soetjipto

The Head of SKK Migas, Dwi Soetjipto appreciated the innovations made by his ranks with the cooperation contract contractors (KKKS) so as to produce an acceleration of projects in the field. He continues to coordinate with KKKS to ensure that the upstream oil and gas project can run well according to schedule.

"During the Covid-19 outbreak, SKK Migas was able to accelerate the implementation of the completion of three projects," he said.

According to him, if the upstream oil and gas project can run well, there will be an increase in the production and production of oil and gas lifting. In addition, the oil and gas project is also able to move the regional economy and create jobs, especially the community around the project site.

"This is in line with the Government's focus on being able to encourage the economy to move during the Covid-19 outbreak," he added.

Dwi acknowledged the Covid-19 outbreak and the still low oil prices were a real test for efforts to realize the oil production target of 1 million BPD in 2030. One of the important keys to achieving the target was how to keep the project going well on schedule.

The success in accelerating the project was due to the successful implementation of the 2 pillars of the SKK Migas transformation, namely the Integrated Operation Center (IOC) and One Door Service Policy (ODSP).

Previously, four oil and gas projects were operating. First, the Grati Pressure Lowering Project in East Java was undertaken by Ophir Indonesia (Sampang) Pty and produced 30 MMSCFD of gas. Then, the development of the Randugunting Field by PT Pertamina Hulu Energi (PHE) Randugunting in Central Java provided additional production of 5 MMSCFD.

Furthermore, the Buntal-5 Field by Medco E&P Natuna Ltd provides additional gas production of 45 MMSCFD. Finally, Sembakung Power Plant by PT Pertamina EP with a capacity of 4 MW to support upstream oil and gas operations in the East Kalimantan region.

Blogger Agus Purnomo in Petronas Carigali Ketapang II Ltd.

In 2020, SKK Migas targets 11 upstream oil and gas projects to be onstream. Another project scheduled to operate this year is Bukit Tua Phase-3 with an estimated production of 31.5 MMSCFD by Petronas Carigali Ketapang II Ltd. planned to begin operations in the first quarter of last year.

Blogger Agus Purnomo in Petronas Carigali Ketapang II Ltd.

Furthermore, besides Meliwis, two projects will operate in the second quarter, namely the 15 MMSCFD Betung Compressor by PT Pertamina EP, Malacca Strait Phase-1 3,000 BPH by EMP Malacca Strait.

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 LP-MP SKG-19 150 MMSCFD 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. The peak production of the Merakes Field is estimated to reach 60,305 barrels of oil equivalent per day / BOEPD. In 2020, national oil and gas lifting was set at 1.95 million BOEPD, up slightly from last year's 1.8 million boepd realization. 

the Merakes Project by ENI Indonesia

    Specifically, oil production rose to 755 thousand BPH from the realization of 746 thousand BPH, and gas to 1.19 million BOEPD from the realization of 1.06 million BOEPD.

Investor Daily, Page-10, Thursday, June 4, 2020

Exxon and Copi Expand Exploration

ExxonMobil don Conocohillips (Copi) plans to conduct exploration outside its operations area. This opens the contractor's opportunity to get additional new reserves.

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said the two cooperation contract contractors (KKKS) from the United States had stated the plan. According to him, the KKKS choice to conduct exploration outside its working area has considered the potential for additional oil and gas reserves. This is considered positive.

Dwi Soetjipto

 "That means a lot of potential for the country, rather than drilling in existing areas where additional production and reserves are not too large," he said.

Dwi added that currently the funds collected from the defined work commitment (KKP) for exploration have reached US $ 2.5 billion. The funds are obtained from gross profit sharing contracts. One of the KKKS that have conducted exploration activities from the KKP fund is PT Penamina Hulu Energi Jambi Merang (PHE Jambi Merang) in the form of a 2D seismic survey with a track length of 30,000 kilometers. Cumulatively, an additional investment of the Jambi Merang MPA is up to US $ 239.3 million for exploration and exploitation activities.

"What the Jambi Merang PHE has done with its KKP does not have a better meaning if it is [only] done in Jambi Merang. So [they] were given the opportunity to use the KKP in other areas, "he added.

SKK Migas also encouraged Pertamina and Medco as a local oil and gas company to boost exploration to keep up with Repsol's success in the Top 10 Discovery 2019. Pertamina and Medco have the largest areas number 1 and 3 in the same basin. To encourage investors to explore, SKK Migas claims to have conducted a roadshow to introduce oil and gas basins in the country.

The reason is the success ratio of exploration well discovery in Indonesia is higher and the global average. Referring to the SKK Migas data, until the third quarter of 2019 exploration success ratio was 45%, while in the world in the last 2 years it was 35%. From the latest exploration findings, there are at least an additional 880 million barrel oil equivalent (MMboe) and 230 MMbo from 13 work areas.

Azi N. Alam

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

the Cepu Block in East Java Indonesia

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

At present, ExxonMobil is the largest oil-producing KKKS in Indonesia, passing Chevron Pacific Indonesia. As of September 2019, ExxonMobil Cepu Ltd recorded a production of ready to sell or lifting of 216,011 barrels per day (bpd) or exceeding the target set at 216,000 bpd. On the other hand, ConocoPhillips (Grissik) Ltd also recorded a brilliant performance in terms of lifting. The Corridor Block operator successfully recorded 833 MMscfd of gas lifting as of September 2019 or 102.8% of the target set by the 2019 APBN.

Meanwhile, Vice President of Commercial and Business Development at ConocoPhillips Taufik Ahmad said that his party always evaluates open areas as a routine part of the search for potential new oil and gas reserves. Moreover, with the extension of the Corridor Block, the activity will continue, "he said.

Meanwhile, the government gave ConocoPhillips the management of Corridor Block 46% (operator), PT Pertamina Hulu Energi Corridor 30%, and Talisman (Corridor) Ltd. 24%. The Corridor Block production sharing contract will be valid for 20 years, effective from December 20, 2023. The estimated investment value from the implementation of the first 5 year KKP is US $ 250 million and a signature bonus of US $ 250 million.

Participation rights owned by the contractor include a 10% participation right that will be offered to Regionally Owned Enterprises according to ESDM Regulation No. 37/2016. Existing work commitments are directed to work on six work packages that include Lower Palembang Paddles, Lower Palembang Suban, Telisa Well Suban Far East, and Suban Far East (continued prospects).

The Corridor Block is one of the oil and gas blocks of strategic value considering the amount of gas production around 1,100 MMscf or equivalent to 12% of the total national natural gas production at this time. In addition, oil and condensate production reached 6,600 bopd.

IDD PROJECT

In other developments, Chevron Pacific Indonesia needs partners to share the risk of developing a deep sea project or Indonesia Deepwater Development (IDD) phase II. Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Djoko Siswanto agrees that Chevron is looking for partners before submitting a revised phase II development plan (POD). They ask for time until 2020, "he said.

Previously, the approval of the development plan (POD) had the potential to be delayed due to the possibility of a change in the consortium of companies working on the IDD project. Deputy Head of SKK Migas Fatar Yani Abdurrahman said that he did not yet know Chevron's future in developing the IDD Project. However, there will be a change in the consortium and waiting for the entry of new partners.

"Still waiting. I don't know whether Chevron is coming out or not, but the consortium has changed. He [Chevron] did not say to leave, but he was definitely looking for [partners] to develop. ”

In the IDD Project, Chevron is recorded as a project operator with 62% participating rights. Based on SKK Migas's explanation, the IDD Gendalo-Gehem Project is targeted to start production in the first quarter of 2024. The project is now in the stage of drafting detailed design auction documents (FEED), contract awarding, and submission of expenditure approvals (AFE) for surveys.

     With the potential change in the consortium, continued Fatar, the preparation and approval of the IDD Project POD was delayed again. SKK Migas is waiting for a new consortium report before discussing POD.

"Maybe if he deals in January, after he reports to us. Well, partner or what is the point, this is our final [POD material] proposal, "he said.

He added that there was no specific deadline for determining new partners in the development of the IDD project. Fatar claimed that he could not force the development of the project without looking at the economics of the project considered by KKKS.

IN INDONESIA

Exxon dan Copi Perluas Eksplorasi

ExxonMobil don Conocohillips (Copi) berencana melakuakn eksplorasi di luar area operasinya. Hal tersebut membuka peluang kontraktor untuk mendapatkan tambahan cadangan baru.

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto mengatakan kedua kontraktor kontrak kerja sama (KKKS) asal Amerika Serikat itu telah menyatakan rencananya tersebut. Menurutnya, pilihan KKKS untuk melakukan eksplorasi di luar wilayah kerjanya telah mempertimbangkan potensi tambahan cadangan minyak dan gas bumi (migas). Hal tersebut dinilai positif.

 “Itu potensi berarti buat negara, daripada mereka ngebor di wilayah existing yang tambahan produksinya dan cadangannya gak terlalu besar," ujarnya.

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. Salah satu KKKS yang telah melakukan aktivitas eksplorasi dari dana KKP adalah PT Penamina Hulu Energi Jambi Merang (PHE Jambi Merang) berupa survei seismik 2D dengan panjang lintasan 30.000 kilometer. Secara kumulatif, tambahan investasi KKP Jambi Merang hingga 2024 senilai US$239,3 juta untuk kegiatan eksplorasi dan eksploitasi.

“Yang dilakukan PHE Jambi Merang dengan KKP-nya tidak memiliki arti yang lebih bagus kalau [hanya] dilakukan di Jambi Merang saja. Jadi [mereka] diberi kesempatan menggunakan KKP-nya di area lain,” tambahnya.

SKK Migas juga mendorong Pertamina dan Medco sebagai perusahaan migas lokal untuk menggenjot eksplorasi guna mengikuti kesuksesan Repsol yang masuk Top 10 Discovery 2019. Adapun Pertamina dan Medco memiliki area terluas nomor 1 dan 3 di cekungan yang sama. Untuk mendorong ketertarikan investor melakukan eksplorasi, SKK Migas mengklaim telah melakukan roadshow untuk memperkenalkan cekungan-cekungan migas yang ada di Tanah Air. 

Pasalnya, success ratio penemuan sumur eksplorasi di Indonesia lebih tinggi dan rata-rata global. Merujuk data SKK Migas, hingga kuartal III/2019 success ratio eksplorasi sebesar 45%, sementara di dunia dalam 2 tahun terakhir sebesar 35%. Dari sisi penemuan eksplorasi terkini, setidaknya sudah ada tambahan 880 million barrel oil equivalent (MMboe) dan 230 MMbo dari 13 area kerja.

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,” katanya.

Saat ini, ExxonMobil merupakan KKKS penghasil minyak terbesar di Indonesia melewati Chevron Pacific Indonesia. Per September 2019, ExxonMobil Cepu Ltd mencatatkan produksi siap jual atau lifting sebanyak 216.011 barel per hari (bph) atau melebihi target yang ditetapkan sebanyak 216.000 bph. Di sisi lain, ConocoPhillips (Grissik) Ltd pun mencatatkan kinerja cemerlang dalam segi lifting. Operator Blok Corridor ini berhasil mencatatkan lifting gas sebanyak 833 MMscfd per September 2019 atau 102,8% dari target yang ditetapkan APBN 2019.

Sementara itu, Vice President Commercial and Business Development ConocoPhillips Taufik Ahmad mengatakan pihaknya selalu melakukan evaluasi atas area terbuka sebagai bagian rutin pencarian potensi cadangan migas baru. Apalagi, dengan adanya perpanjangan Blok Corridor, kegiatan tersebut akan diteruskan,” katanya.

Adapun, pemerintah memberikan kewenangan pengelolaan Blok Corridor kepada ConocoPhillips sebesar 46% (operator), PT Pertamina Hulu Energi Corridor 30%, dan Talisman (Corridor) Ltd. 24%. Kontrak bagi hasil Blok Coridor akan berlaku untuk 20 tahun, efektif sejak 20 Desember 2023. Perkiraan nilai investasi dari pelaksanaan KKP 5 tahun pertama senilai US$250 juta dan bonus tanda tangan US$ 250 juta. 

Hak partisipasi yang dimiliki oleh kontraktor tersebut termasuk hak partisipasi 10% yang akan ditawarkan kepada Badan Usaha Milik Daerah sesuai Permen ESDM No. 37/2016. Komitmen kerja pasti yang ada diarahkan untuk mengerjakan enam paket pekerjaan yang mencakup Dayung Lower Palembang, Suban Lower Palembang, Telisa Well Suban Far East, Serta Suban Far East (prospek lanjutan).

Adapun Blok Corridor merupakan salah satu blok migas yang bernilai strategis mengingat besarnya produksi gas sekitar 1.100 MMscf atau setara dengan 12% dari total produksi gas bumi nasional saat ini. Selain itu, produksi minyak dan kondensat mencapai 6.600 bopd.

PROYEK IDD

Pada perkembangan lain, Chevron Pacific lndonesia membutuhkan mitra untuk berbagi risiko pengembangan proyek laut dalam atau Indonesia Deepwater Development (IDD) tahap II. Pelaksana Tugas Direktur Jenderal Migas Kementerian ESDM Djoko Siswanto mengamini bahwa Chevron sedang mencari mitra sebelum mengajukan revisi rencana pengembangan (POD) IDD tahap II. Mereka minta waktu sampai 2020,” tuturnya.

Sebelummya, pengesahan rencana pengembangan (POD) berpotensi molor akibat kemungkinan perubahan konsorsium perusahaan yang menggarap proyek IDD muncul. Wakil Kepala SKK Migas Fatar Yani Abdurrahman mengatakan belum mengetahui masa depan Chevron dalam pengembangan Proyek IDD. Hanya saja, akan ada perubahan konsorsium dan menunggu masuknya mitra baru.

“Masih menunggu. Saya enggak tahu Chevron keluar atau tidak, tapi konsorsium berubah. Dia [Chevron] tidak bilang keluar, tapi yang jelas Iagi cari [mitra] agar bisa dikembangkan.”

Di Proyek IDD, Chevron tercatat sebagai operator proyek dengan hak partisipasi sebesar 62%. Berdasarkan paparan SKK Migas, Proyek IDD Gendalo-Gehem ditargetkan mulai produksi pada kuartal I/2024. Proyek ini kini masuk tahap penyusunan dokumen lelang desain rinci (FEED), contract awarding, dan pengajuan persetujuan pengeluaran (AFE) untuk survei. 

     Dengan adanya potensi perubahan konsorsium itu, lanjut Fatar, maka penyusunan dan persetujuan POD Proyek IDD kembali tertunda. SKK Migas menunggu laporan konsorsium baru terlebih dahulu sebelum melakukan pembahasan POD.

“Mungkin kalau dia deal pada Januari, setelah dia laporkan ke kami. Nah, mitra atau apa pokoknya ini proposal [bahan POD] terakhir kami,” tuturnya.

Dia menambahkan tidak ada tenggat waktu tertentu untuk menentukan mitra baru dalam pengembangan proyek IDD. Fatar mengaku tidak bisa memaksakan pengembangan proyek tanpa melihat keekonomian proyek yang dipertimbangkan KKKS. 

Bisnis Indonesia, Page-24, Thursday, Nov 14, 2019

Planned subsidiary to run oil, gas block

State energy holding firm Pertamina is looking to set up a new subsidiary that will manage the Rokan Block, one of the country’s biggest oil and gas blocks, after it was awarded the tender ahead of former operator Chevron Pacific Indonesia (CPI).

Chevron Pacific Indonesia (CPI)

This was revealed by the senior vice president for upstream strategic planning, portfolio and evaluation at Pertamina, Meidawati, at an oil and gas seminar in Jakarta recently.

"We have a plan [to set up a new subsidiary] for the block. It is in the pipeline and we are still assessing the option,” she said, adding that a new unit would help the company speed up the adaptation process of managing the block.

CPI, a subsidiary of United States-based oil and gas giant Chevron, is still operating the block, which will be managed by Pertamina from 2021 to 2041. CPI is operating it under the old Production Sharing Contract (PSC) based on a cost recovery scheme, which will be replaced by a new method called a gross split. 

the Mahakam Block

Pertamina’s plan to establish a new subsidiary is based on its experience with one of its upstream units, Pertamina Hulu Mahakam (PHM), which took over the Mahakam Block in East Kalimantan from France’s Total E&P Indonesie.

Total E&P Indonesie

Meidawati said Pertamina was also assessing the option of managing the Rokan Block with a partner as investors have shown an interest to jointly manage the block The governnients decision to Choose Pertamina to operate the block in July Caused a stir, leading to some alleging that rising nationalistic sentiment in the energy sector was behind it.

However, experts say setting up anew subsidiary to operate the block is a move in the right direction as long as the decision making process emanates from Pertamina’s head office, adding that it would help it to simplify the operating process. 

Pri Agung Rakhmanto, a researcher at Jakarta based energy research group the ReforMiner Institute, said setting up a second tier company was an usual thing for Pertamina to do in light of its upstream strategy, adding that the move would not create problems due to it being directly controlled from head office.

Toto Pranoto, a state-owned enterprises expert at the University of Indonesia, said he believed that creating a new subsidiary was due to Pertamina’s need to ease its performance calculation and its PSC With the government. Based on Pertamina’s previous experience with its upstream subsidiaries, Toto projected that the prospective Rokan subsidiary would likely produce less oil and gas compared to the block’s previous operator, Chevron, due to a long adaptation process in terms of technology use.

Blogger Agus Purnomo in PT. PHE West Madura Offshore (WMO)

A case in point, he said, was the weak performance of Pertamina’s upstream subsidiary Pertamina Hulu Energy (PHE), which operates the West Madura Offshore (PHE-WMO) in Gresik, because the unit failed to maintain block oil production in 2011.

the Rokan Block

Several reports at the time stated that production fell from an average of 14,000 barrels of oil per day (bopd) to only 1,200 bopd. Meidawati acknowledged that it would be a challenge to maintain production at Rokan over the next three years as it had matured, or Was entering a phase of decline.

the Rokan Block

“There is something that We could learn there [in the Rokan Block] because it will be a test for us to manage this big block, of which oil production now has declined by 20,000 bopd in less than a year,” the Pertamina’s senior vice president said.

Pertamina is in the process of paying its US$ 784 million signature bonus to the government as one of the requirements in the Rokan Block deal, and the funds will be considered as non-tax revenue (PNBP).

It has vowed that the transaction would be finalized no later than this year. Once the bonus has been transferred to the government, the official contract for Pertamina to take over the block will be signed.

Jakarta Post, Page-13, Friday, Nov 9, 2018

2019, Pertamina's Upstream Oil and Gas Investment Reaches US $ 3 Billion

PT Pertamina (Persero) plans to invest in its upstream oil and gas sector in 2019, around US $ 2.5-3 billion. This value increased compared to investment this year which reached US $ 2.4 billion. The increase in investment is in line with the increase in oil production to 414 thousand barrels per day (bpd).

Pertamina's Senior Vice President Strategic Planning and Operation Evaluation Meidawati said that the upstream oil and gas up to US $ 3 billion investment target in the next year is still limited to the company's internal plans. This number must be discussed again with shareholders, namely the Ministry of BUMN.

"As a whole, up to US $ 2.5-3 billion as a whole, but this is still internal, because we have to ask for BUMN approval," said Meidawati in Jakarta.

Meidawati said, the investment value depends on the production target to be achieved next year. Next year, his party set a target for higher oil production compared to this year. Next year's oil production is targeted to reach 414 thousand bpd, increased 3.5% from this year 400 thousand bpd. 

    However, the gas production in 2019 is actually only set at 2,069 million cubic feet per day (million standard cubic feel per day / mmscfd), lower by 32.5 percent from this year's 3,069 mmscfd.

He explained that the cause of the decline in gas production was affected by the decline in deposits in Musi and a decline in production in the Mahakam Block.

"If the oil rises because there is Banyu Urip. PHE (Pertamina Hulu Energi) rose, from the international up, then from PHI (Pertamina Hulu Indonesia) also rose "he said.

Banyu Urip Field; The Cepu block

Banyu Urip Field; The Cepu block is managed by a subsidiary of Pertamina, PT Pertamina EP Cepu as the 45% participating interest holder in the Cepu Block. According to SKK Migas data, next year, the Cepu Block oil production is estimated to reach 220 thousand bpd, up from July's 205,643 bpd.

Furthermore, still referring to the same data, PT Pertamina Hulu Indonesia through PT Pertamina Hulu Mahakam which manages the Mahakam Block is targeted to produce 48 thousand bpd of oil. PHI also manages the Sanga-Sanga and East Kalimantan-Attaka Blocks, two termination blocks handed over to Pertamina.

East Kalimantan-Attaka Blocks

While Pertamina EP's oil production is targeted at 82 thousand bpd, up from this year's target of 77,934 bpd. Internationally, Pertamina has oil and gas blocks in several countries. In Iraq, the company has shares in West Qurna-1 Field. In Algeria, this state-owned oil and gas company controls 65% of the shares in the MLN Field and 16.9% in the EMK Field.

West Qurna-1 Iraq

While in Malaysia, the company holds shares in BlokK, Kikeh Block, SNR Block sK3o9 Block and SK311 Block. Pertamina also controls the French oil and gas company Maurel & Prom which has oil and gas blocks in a number of countries.

Kikeh Block - Malaysia

"For PIEP (PT Pertamina" International EP) production increases from assets in Algeria. PIEP oil production rose from 108 thousand bpd to 112 thousand bph, "said Meidawati.

Pertamina's data shows that the oil production of this state-owned oil and gas company has continued to rise since 2014. At that time, Pertamina's oil production was still 270 thousand bpd. The realization of this oil production continued to increase to 278 thousand bpd in 2015, 3.12 thousand bpd in 2016, 342 thousand in 2017, and reached 383 thousand bpd until the end of September 2018.

Rely on Sukowati

Meanwhile, Pertamina EP President Director Nanang Abdul Manaf revealed that most of the oil and gas fields that he manages are more than 40 years old or known as the old field. Therefore, the biggest challenge faced by his party is to reduce the rate of decline in production. 

    In general in 2017, the rate of production decline was only 2.5%. So, hopefully this year there will be an increase in production. Until last July, he noted that there was an increase in oil and gas production of around 5%.

"This is his hope from the new field and new assets, namely Sukowati. This is a detailed strategy, how we make efforts to increase Pertamina EP production, "he said.

He said, there are a number of steps to optimize the old oil and gas field with injection technology, such as the use of Electrical Submersible Pump (ESP) to Enhanced Oil Recovery (EOR). Sukowati Field for example, it will boost production to reach 10 thousand bpd. Although it is still far from the initial production of Sukowati Field which amounted to 40 thousand bpd, this field production had dropped dramatically to 6 thousand bpd.

"We will start at 9 thousand bpd. Our hope is how we can execute the program that we have planned, so that this can happen and the peak will be able to reach 12 thousand bpd, "he said.

One strategy that will be carried out at Sukowati Field is carbon dioxide injection. Aside from being the most suitable technology for this field, Pertamina also has a large source of carbon dioxide from the Jambaran-Tiung Biru Project that was worked on by Pertamina EP Cepu (PEPC).

Pertamina targets its oil and gas production to reach 1.9 million barrels of oil equivalent per day by 2025. In particular, oil production is targeted to reach 822 thousand bpd and gas 5.71 billion cubic feet per day.

IN INDONESIAN

2019, Investasi Hulu Migas Pertamina Capai US$ 3 Miliar

PT Pertamina (Persero) merencanakan investasi untuk sektor hulu migasnya pada 2019 sekitar US$ 2,5-3 miliar. Nilai tersebut naik dibandingkan investasi di tahun ini yang mencapai US$ 2,4 miliar. Peningkatan investasi sejalan dengan kenaikan produksi minyak menjadi 414 ribu barel per hari (bph).

Senior Vice President Strategic Planning and Operation Evaluation Pertamina Meidawati mengatakan, target investasi hulu migas hingga US$ 3 miliar di tahun depan itu masih sebatas rencana internal perusahaan. Angka tersebut masih harus dibicarakan lagi dengan pemegang saham, yakni Kementerian BUMN.

“Untuk hulu secara keseluruhan sebesar US$ 2,5-3 miliar, tapi ini masih internal, karena harus minta persetujuan BUMN,” kata Meidawati di Jakarta.

Meidawati mengungkapkan, nilai investasi tergantung dari target produksi yang hendak dicapai pada tahun depan. Pada tahun depan, pihaknya menetapkan target produksi minyak lebih tinggi dibandingkan dengan tahun ini. Produksi minyak tahun depan ditargetkan mencapai 414 ribu bph, meningkat 3,5% dari tahun ini 400 ribu bph. 

    Namun, produksi gas 2019 justru hanya ditetapkan 2.069 juta kaki kubik per hari hari (million standard cubic feel per day/ mmscfd), lebih rendah 32,5% dari tahun ini 3.069 mmscfd.

Dia menerangkan penyebab menurunnya produksi gas itu dipengaruhi oleh penurunan resevoar di Musi serta penurunan produksi di Blok Mahakam. 

“Kalau minyaknya naik karena ada Banyu Urip. PHE (Pertamina Hulu Energi) naik, dari internasional naik, kemudian dari PHI (Pertamina Hulu Indonesia) juga naik" ujarnya.

Lapangan Banyu Urip; Blok Cepu dikelola oleh anak usaha Pertamina, PT Pertamina EP Cepu sebagai pemegang hak partisipasi sebesar 45% di Blok Cepu. Sesuai data SKK Migas, pada tahun depan, produksi minyak Blok Cepu diperkirakan bisa mencapai 220 ribu bph, naik dari posisi Juli sebesar 205.643 bph.

Selanjutnya, masih mengacu data yang sama, PT Pertamina Hulu Indonesia melalui PT Pertamina Hulu Mahakam yang mengelola Blok Mahakam ditargetkan menghasilkan minyak 48 ribu bph. PHI juga mengelola Blok Sanga-Sanga dan East Kalimantan-Attaka, dua blok terminasi yang diserahkan ke Pertamina. 

Sementara produksi minyak Pertamina EP ditargetkan sebesar 82 ribu bph, naik dari target tahun ini 77.934 bph. Di internasional, Pertamina telah memiliki blok migas di beberapa negara. Di Irak, perseroan memiliki saham di Lapangan West Qurna-1. Di Aljazair, persahaan migas milik negara ini menguasai 65% saham di Lapangan MLN dan 16,9% di Lapangan EMK. 

Sementara di Malaysia, perseroan memegang kepemilikan saham di BlokK, Blok Kikeh, Blok SNR Blok sK3o9 dan Blok SK311. Pertamina juga menguasai perusahaan migas Perancis, Maurel&Prom yang memiliki blok migas di sejumlah negara.

“Untuk PIEP (PT Pertamina “International EP) kenaikan produksi dari aset di Aljazair. Produksi minyak PIEP naik dari 108 ribu bph menjadi 112 ribu bph,” kata Meidawati.

Data Pertamina menunjukkan bahwa produksi minyak perusahaan migas milik negara ini terus naik sejak 2014 lalu. Pada saat itu, produksi minyak Pertamina masih sebesar 270 ribu bph. Realisasi produksi minyak ini terus meningkat menjadi 278 ribu bph pada 2015, 3.12 ribu bph pada 2016, 342 ribu pada 2017, dan mencapai 383 ribu bph sampai akhir September 2018.

Andalkan Sukowati

Sementara itu, Presiden Direktur Pertamina EP Nanang Abdul Manaf mengungkapkan, sebagian besar lapangan migas yang dikelolanya umurnya lebih dari 40 tahun atau yang dikenal dengan lapangan tua. Karenanya, tantangan terbesar yang dihadapi pihaknya yakni menekan laju penurunan produksi. Secara umum di 2017 lalu, tingkat penurunan produksi hanya 2,5%. Sehingga, harapannya di tahun ini ada peningkatan produksi. Hingga Juli kemarin, pihaknya mencatat ada kenaikan produksi migas sekitar 5%. 

“Ini harapannya dari lapangan baru dan aset baru, yaitu Sukowati. Ini strategi detailnya, bagaimana kami melakukan upaya peningkatan produksi Pertamina EP” ujarnya. 

Dikatakannya, ada sejumlah langkah untuk optimalisasi lapangan migas tua dengan teknologi injeksi, seperti penggunaan Electrical Submersible Pump (ESP) hingga Enhanced Oil Recovery (EOR). Lapangan Sukowati misalnya, pihaknya bakal menggenjot produksinya hingga mencapai 10 ribu bph. Meski masih jauh dari produksi awal Lapangan Sukowati yang sebesar 40 ribu bph, produksi lapangan ini sempat turun drastis menjadi 6 ribu bph.

“Kami akan starting di 9 ribu bph. Harapan kami bagaimana bisa eksekusi program yang kami rencanakan ini, supaya ini bisa terjadi dan puncaknya itu akan bisa mencapai 12 ribu bph,” ujarnya.

Salah satu strategi yang akan dilakukan di Lapangan Sukowati, yakni injeksi karbondioksida. Selain merupakan teknologi yang paling cocok untuk lapangan ini, Pertamina juga memiliki sumber karbondioksida cukup besar dari Proyek Jambaran-Tiung Biru yang dikerjakan Pertamina EP Cepu.

Pertamina menargetkan produksi migasnya bisa mencapai 1,9 juta barel setara minyak per hari pada 2025. Rincinya, produksi minyak ditargetkan mencapai 822 ribu bph dan gas 5,71 miliar kaki kubik per hari.

Investor Daily, Page-9, Friday, Nov 9, 2018