Pertamina Imports Crude Oil from Nigeria

    PT Pertamina (Persero) through PT Pertamina International Refinery (KPI) received a crude oil procurement contract from Nigeria. The import of crude oil was obtained by Pertamina from the Nigerian National Petroleum Corporation (NPCC).

NPCC

    Director of Feedstock and Product Optimization of KPI Yoki Firmandi said this is the first direct contract between Pertamina and NPCC, although Pertamina often buys Nigerian oil. So far, Pertamina has had to buy Nigerian crude oil through the international open market that has a Participating Interest, such as ExxonMobil, Chevron, Shell, Total, and BP.

Pertamina

"With Pertamina's direct deal with NPCC, the procurement process can take place more efficiently. Of course, getting a contract directly will be more efficient. This is in accordance with the refinery feedstock optimization plan in the future,” said Yoki.

    Pertamina was selected as an awardee from a total of 500 companies that registered. NNPC is a Nigerian National Oil Company, like Pertamina in Indonesia. The direct supply contract is very important for bilateral relations between the two countries. Yoki said that Nigerian crude oil is sweet crude.

    This direct contract has a duration from 2021 to 2023. Yoki explained that KPI was not alone in getting this direct contract. Purchasing crude oil directly to the NPCC is expected to increase the efficiency of purchasing crude oil directly to oil producers.

    KPI synergizes with Subholding Shipping PT Pertamina International Shipping (PIS) in terms of transportation. PIS has just launched two new Very Large Crude Oil Carrier (VLCC) vessels, namely MT Pertamina Prime and MT Pertamina Pride. Later the oil will be transported by a ship owned by PIS.

VLCC MT Pertamina Prime

    In addition, Pertamina International Marketing & Distribution, Pte Ltd (PIMD) under Subholding Commercial and Trading also played a role in supporting KPI in obtaining the contract. Vice President of Feedstock and Inventory Management KPI Sani Dinar Saifuddin said Nigerian oil has a large portion of Pertamina's oil import volume. In the 2017-2020 period, 30 percent of the volume of imported crude oil came from Nigeria. Pertamina's crude imports in 2019 amounted to 75.3 million barrels.

"Nigeria is Pertamina's second-largest source of crude oil imports, after Arabian Light Crude supply to FOC I RU IV Cilacap from NOC Saudi Arabia Aramco," said Sani.

 

Aramco

    Meanwhile, crude oil imports this year are projected to increase significantly compared to 2020. According to Pertamina's 2021 projection data, crude oil imports are targeted to reach 118.4 million barrels, an increase of about 50.4 percent compared to last year's crude oil imports which were only 78.7 percent. million barrels.

Nicke Widyawati

    Pertamina President Director Nicke Widyawati said Pertamina needed to maximize the refinery processing capabilities that needed to be supplied with oil. In addition, there was a decrease in GOI entitlement due to the still low Indonesian oil price (ICP).

"We have an increase in imports of 39.7 million barrels," said Nicke.

    Previously, Nicke projected that the volume of crude oil imports this year would increase to 118.4 million barrels. This projection is up 50.4 percent from the realization of crude oil imports throughout 2020 which reached 78.7 million barrels. The increase in crude oil imports is part of Pertamina's refinery optimization strategy.

Republika, Page-9, Wednesday, July 14, 2021

VLGC Pertamina Gas 2 Raises Red and White in the United States

    The very large gas carrier (VLGC) Pertamina Gas 2 (PG 2) operated by PT Pertamina International Shipping (PIS) has made a new history for being an Indonesian-flagged vessel that can be docked at the American LPG terminal. This ship made its maiden voyage to transport LPG cargo from the Americas with a FOB base at the LPG Export Terminal owned by Phillips 66 in Freeport, Texas.

Phillips 66 in Freeport, Texas

    The very large gas carrier (VLGC) Pertamina Gas 2 (PG 2) began sailing from Indonesia on 27 April 2021 and arrived in Houston, the United States on 5 June 2021. Transporting a total of 45,000 MT LPG belonging to Subholding Commercial and Trading, the PG 2 vessel was commanded by Capt. Dasuki with a crew of 27 people, of which 60% are under 40 years old.

 The very large gas carrier (VLGC) Pertamina Gas 2 (PG 2)

    This ship will travel more than 28,000 nautical miles with more than 80 round trip days, from Indonesia to the United States, then back to Indonesia. According to Capt. Dasuki, the journey through 3 continents and 2 oceans is a challenge in itself, considering that the PG 2 ship must pass US government certification. Certificate of Compliance Examination is a certificate of recognition from the US government for PG 2 Ships that have met the rules and requirements.

"I am certainly very happy because the issuance of this certificate shows that Pertamina Gas 2 can carry out all activities, especially in US waters," he said.

    PT Pertamina International Shipping (PIS), which is currently Pertamina's sub-holding shipping company, can manage Indonesian-flagged vessels docked at international ports. It is a matter of pride for PT Pertamina International Shipping (PIS) where the PG 2 ship's journey this time is manned by all Indonesian crew members and fulfills the requirements of the Classification Society / Indonesian Classification Board (BKI).

"Hopefully this achievement will be the first step and build confidence to spread its wings in the global shipping industry," said Capt. Dasuki.

    PG 2 was built under the Panamanian and LR class flags during the construction period, but over time, reflagging was carried out to the Indonesian flag to support Indonesian flag vessels from the gray list to the White list and now PG 2 is under the BV and BKI classes. The ship made by the Hyundai-South Korea company in 2014 made a voyage to carry LPG as a supply for Indonesia's national energy needs.

    The PG 2 ship is capable of sailing 20,000 nautical miles (1 NM = 1,852 Km) without refueling at a speed of 16.8 knots. The special design prepared by PIS is with a flexible cargo manifold arrangement cargo handling LVVL (Liquid-Vapor Vapor Liquid) or VLLV (Vapor Liquid Liquid-Vapor).

Investor Daily, Page-10, Wednesday, June 16, 2021

Pertamina Shipping is Targeted to Succeed in ASEAN

 

    One of the government's big agendas is to strengthen the logistics system. To strengthen Indonesia's domestic logistics system that can be seen at the global level is to develop State-Owned Enterprises (SOE/BUMN) in the shipping and logistics sectors. 

PT Pertamina (Persero)

    Through the sub-holding of PT Pertamina (Persero), namely PT Pertamina International Shipping (PIS), the government is trying to revive the world of shipping and logistics. PIS targets to become a global integrated logistic and marine solution company.

"PIS is expected to become an integrated and marine logistics solution company that is respected in the ASEAN (Southeast Asia) region," said Deputy Minister of BUMN I Pahala Mansury.

    Pahala said Pertamina had the strength in this matter because currently PIS had a large number of ships and had very reliable specifications. The government is targeting PIS to have a stronger infrastructure in Southeast Asia. 

    Pahala said that the government has an agenda to find investors to strengthen the PIS business in the future. He said the efforts that would be made were for example to cooperate with the Indonesia Investment Authority (INA) or other strategic partners.

"The government is targeting cooperation with INA or other strategic partners that can be obtained through INA and after that, the company will conduct an initial public offering (IPO)," said Pahala.

    After sailing since 9 February 2021 from JMU Ariake Shipyard, Japan, PIS's giant container ship or Very Large Crude Carrier (VLCC) has arrived in Indonesia and is ready to support the distribution of national energy supplies. This readiness was marked by the inauguration of BUMN Minister Erick Thohir on a ship that was berthed in Semangka Bay, Kota Agung, Tanggamus Regency, Lampung.

Erick Thohir

    Erick conveyed his appreciation for Pertamina's efforts in transforming and presenting value creation so that it could become a global company. He ensured that the government fully supports PIS's steps to become an integrated logistics and marine solution company that plays at the global level.

"Pertamina must return to its heyday in the 70s, become a global player and be ready to compete based on good corporate governance," said Erick.

Nicke Widyawati

    Pertamina President Director Nicke Widyawati said the investment made by presenting two ships, namely Pertamina Pride and Pertamina Prime, is in line with shareholders' directions to go global. Nicke explained that the two ships would serve foreign markets and transport crude from Aramco to Indonesia.

Saudi Aramco

"With our own ships, we have more flexibility because Pertamina has foreign reserves and production of 110 thousand barrels per day," said Nicke.

    PIS President Director Erry Widiastono explained that PIS continues to strive to meet energy needs by continuously creating various innovations as a consumer-oriented shipping company. One of them is presenting the giant tanker VLCC PERTAMINA PRIDE with a capacity of 2 million barrels and has been built at the Japan Marine United (JMU) Shipyard since 2018.

"The PERTAMINA PRIDE VLCC aims to simplify the flow of energy distribution and secure the supply of captive crude needs to Pertamina's refineries on a FOB Ras Tanura-Cilacap basis more efficiently so that it is ready to become the lifeblood of energy distribution for the country," said Ery.

Republika, Page-16, Monday, April 19, 2021

First, the Restructuring of the Business Is Running Smoothly

PT Pertamina (Persero) ensures that the restructuring process of the company is carried out according to what is customary in the business world. Currently, the restructuring process is still in a transition period to ensure Pertamina and the entire group business are ready for the next process. 

Blogger Agus Purnomo in SKK Migas

    SVP Corporate Communication & Investor Relations of Pertamina Agus Suprijanto said Pertamina restructuring is a mandate for shareholders that must be realized. In the process, management always considers strategic aspects, procedures, and handling of all company assets, including employees, in accordance with applicable legal regulations.

"The company restructuring carried out by Pertamina currently has common practices in efforts to improve company performance and efficiency, as has happened in various other global energy companies. When restructuring, the company also goes through a transition period, "said Agus.

Agus said the legal position or legal standing regarding the formation of a holding and group business is clear. Regarding assets, Agus confirmed that until now there has been no transfer of Pertamina's assets to other group businesses or subsidiaries. 

    The status of the management of the work area of ​​the upstream subsidiary that has contracted with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) remains the same. Agus said regionalization was carried out to coordinate and ensure that upstream oil and gas operations were integrated so that operations would be more efficient.

Agus denied accusations that Pertamina's restructuring had hampered operations and strategic projects. According to him, so far all business processes and operations from upstream to downstream have been running well.

"This shows that Pertamina's business processes are fine, not messy. In terms of work procedures, management has also issued regulations governing workflow and authority during the transition period, ”said Agus.

Regarding refinery revitalization and construction, Agus said, until now the refinery development master plan and grass-root refinery (RDMP / GRR) projects are still ongoing according to predetermined stages. In general, all projects showed clear progress and went well with management monitoring.

"The restructuring process is carried out in stages. In the current transitional period, we ensure that all restructuring preparations are complete, ”said Agus.

The Ministry of State-Owned Enterprises (BUMN) stated that Pertamina's restructuring was carried out to answer the needs of the oil and gas industry. Special Staff to the Minister of BUMN, Arya Sinulingga, said that the energy sector continues to undergo transformation or change, which demands that Pertamina be able to adjust. There are five sub holdings that have been formed, including the upstream sub-holding whose operations are held by PT Pertamina Hulu Energi (PHE).

Then, there is PT Perusahaan Gas Negara (Persero) Tbk as a gas sub-holding and refinery and petrochemical sub-holding run by PT Kilang Pertamina Internasional. Power and NRE sub-holding (PT Pertamina Power Indonesia) and commercial and trading sub-holding (PT Patra Niaga). The shipping company operation is held by PT Pertamina International Shipping.

Republika, Page-9, Monday, Oct 26, 2020

See Pertamina's New Structure

Friday, June 12, 2020, became a special day for PT Pertamina (Persero), because at that time through the General Meeting of Shareholders (GMS) held virtually during the Covid-19 pandemic, the structure of this oil and gas BUMN changed.

Although there have been many speculations circulating before, starting from the very hot one, namely the issue of replacing the President Director to the changes in the composition of the directors, the results gave many surprises. The government decided to keep Nicke Widyawati as President Director. For this, the government has its own reasons.

Nicke Widyawati

"So far, Nicke Widyawati is still the best as Pertamina's Managing Director, because it is able to carry out the tasks assigned," said SOE Minister Erick Thohir.

SOE Minister Erick Thohir

The government has also streamlined the number of directors from 11 to six, and the nomenclature of the position of directors of the state-owned oil and gas company has also been changed namely the finance director, director of logistics and infrastructure, director of human resources, director of business support and director of the portfolio strategy and new ventures.

What made the public ask was when the AGM abolished the positions of upstream director, corporate marketing director, retail marketing director, processing director, and director of processing and petrochemical megaprojects.

No wonder, considering that this position is very strategic for Pertamina which incidentally has a core business in the oil and gas sector. In addition, Pertamina also has a 'big project' which is building a number of oil refineries. However, it turns out the government wants the special business to be handled by a subsidiary (sub-holding).

"The establishment of this sub-holding is to integrate Pertamina's business which is handled by a number of its subsidiaries to become one focus," said Erick.

Fajriyah Usman

Pertamina Corporate Communication Vice President Fajriyah Usman explained, as holding Pertamina's duties would be directed at managing portfolios and business synergies throughout the Pertamina Group, accelerating the development of new businesses and running national programs.

Whereas the sub-holding will play a role to encourage operational excellence through the development of scale and synergy of each business, accelerate the development of existing business and business capabilities as well as increase the ability and flexibility in partnership and funding that is more profitable for the company.

Through this new structure, Pertamina is expected to become more agile, focused, and faster in developing world-class capabilities in its business. This is expected to accelerate the growth of the business scale to become a leading global energy company with a market value of US $ 100 billion and to be a driver of social development in 2024. 

    Energy Watch Executive Director Mamit Setiawan assesses the change in nomenclature within the new organization in Pertamina, as the efforts of the Ministry of SOEs in making Pertamina more efficient and better.

Sub Holdings

The five sub-holding companies are upstream sub-holding whose operations are handed over by PT Pertamina Hulu Energi (PHE), gas sub-holding by PT Perusahaan Gas Negara (PGN) Tbk, processing and petrochemical sub-holding by PT Kilang Pertamina International, electricity holding sub-companies and renewable energy by PT Pertamina Power Indonesia, PT Patra Niaga's commercial and marketing sub-holding, and shipping sub-holding by PT Pertamina International Shipping.

     Pertamina President Director Nicke Widyawati said that the transformation was carried out to prepare Pertamina's business lines to develop and be independent. Because at present Pertamina's business scope is very broad with different challenges and competitions and has specific risks of each.

"Therefore, with this sub-holding, every business can move faster and agile to develop world-class capabilities and business scale growth that will support Pertamina to become a leading global energy company with a market value of US $ 100 billion," said Nicke.

If you pay attention, the composition of Pertamina's sub-holding is not much different compared to that of other foreign oil and gas companies such as Petronas Malaysia and PTT Thailand. 

   In Petronas for example, there are 5 sub-holding companies including Upstream namely Petronas Carigali, International Business namely Petronas International Corporation, Downstream Business namely Petronas Chemical Group Berhad, Marketing, and Trading Business by Petronas Trading Corporation, and Power Business by Petronas Power. Regarding this matter, Mamit considers that there are indeed similarities with Petronas.

"Yes, I see it almost the same concept," he said.

He also agreed if one of the sub-holding conducted an IPO.

"Petronas has a shipping sub-holding named MISC Berhad and has an IPO and has now traveled everywhere," he said.

Another innovation made by the government and Pertamina is to place a number of young workers in strategic sub-holding positions. One of them, Mars Ega as Director of Business Planning and Development in the Commercial and Trading sub-holding. This 41-year-old young man said that this was a big challenge.

"But it must be realized that sooner or later a company needs regeneration, so what is more important is that every young worker must prepare well to become a successor to the company's management," he said.

He felt the benefits of Pertamina's talent development programs, especially in developing business and leadership competencies.

"This also shows that the company does not only look at the seniority side in the process of determining the position, hopefully, but this can also be an encouragement for other friends to make more achievements," he explained.

Investor Daily,  Page-12, Wednesday, June 17, 2020

Strengthening Shipping Business, Pertamina Teams Up with Japanese Companies

PT Pertamina (Persero) is working with the oldest and largest shipping company in the world from Japan, namely Nippon Yusen Kaisha (NYK), to strengthen its international oil shipping business. 

Nippon Yusen Kaisha (NYK)

    PT Pertamina International Shipping (PIS), a subsidiary of Pertamina, and NYK have signed a memorandum of understanding (memonradum of understanding / MoU). The cooperation agreement covers the ownership and management of the ship.

PT Pertamina International Shipping (PIS)

Pertamina Logistics, Supply Chain and Infrastructure Director Gandhi Sriwidodo said the collaboration with NYK was related to ship management. Because the shipping business in question is for oil transportation abroad. This is because NYK has large size vessels, around 17,500-120 thousand metric tons.

"If we have a need, and they have it too, can work together. This is just as needed, "he said in Jakarta. This international oil trading can be from Saudi Arabia to the Philippines or Singapore, and other destinations.

Gandhi added that this collaboration was the beginning of the independence of PT PIS as a subsidiary of Pertamina engaged in the energy transportation business. According to him in the future PT PIS must have good ship management and its own shipping fleet to support Pertamina's overall business activities.

"This collaboration can also be a place to share knowledge and experience on how to have professional ship management," he said.

In his official statement, President Director of PT PIS Tafkir explained, this collaboration was carried out with the main consideration to increase added value creation for the company so as to increase the capabilities and capabilities of PT PIS in ship management.

"We consider NYK to be a suitable partner and meet the requirements for our needs. This is a shortcut for us. "The partnership strategy will make us a world-class company as expected by Pertamina's stakeholders and top management," said Tafkir.

Not only in terms of ship management, PT PIS and NYK will also collaborate in the field of liquefied natural gas / LNG projects, such as the Floating Storage and Regasification Unit / FSRU facility and other projects. Meanwhile, Chief Executive of Energy of the Japanese NYK Division Akira Kono said the signing of the MoU would strengthen the fabric of cooperation and become a trigger for other cooperation in the future, particularly in the field of energy transportation.

"We believe, we can provide a reliable shipping service for Pertamina's growth," he said.

At present, explained Gandhi, vessels owned by Pertamina are still around 30% of the total fleet. The ownership of this ship is in accordance with developments to meet the needs of fuel oil (BBM) and domestic crude oil. With the company began to buy crude oil owned by oil and gas companies operating in Indonesia, the needs of the company's vessels are also increasing.

"If crude (crude oil) must be transported, ship needs will automatically increase. Previously, domestic crude was exported, now it is bought, "said Gandhi.

It targets, in 2026, ownership of this ship will rise to 50% and adjusted to budget requirements. According to him, the vessels used for transportation of fuel and crude oil do not have to be entirely owned by the company.

"The 50% target is Pertamina's control, whether equity or cooperation with the concept of BOT (Built, Operate, Transfer)," he added.

IN INDONESIA

Perkuat Bisnis Pengapalan, Pertamina Gandeng Perusahaan Jepang

PT Pertamina (Persero) bekerja sama dengan perusahaan pengapalan tertua dan terbesar di dunia asal Jepang, yakni Nippon Yusen Kaisha (NYK), untuk memperkuat bisnis pengapalan minyak internasionalnya. PT Pertamina International Shipping (PIS), anak usaha Pertamina, dan NYK telah menandatangani nota kesepahaman (memonradum of understanding/MoU). Penjanjian kerja sama meliputi kepemilikan sekaligus pengelolaan kapal. 

Direktur Logistik, Supply Chain dan Infrastruktur Pertamina Gandhi Sriwidodo mengatakan, kerja sama dengan NYK ini terkait manajemen kapal. Pasalnya, bisnis pengapalan yang dimaksud yakni untuk pengangkutan minyak di luar negeri. Hal ini mengingat NYK memiliki kapal ukuran besar, sekitar 17.500-120 ribu metrik ton.

“Kalau kami ada kebutuhan, dan mereka punya juga, bisa kerja sama. Ini sesuai kebutuhan saja,” kata dia di Jakarta. Trading minyak internasional ini bisa dari Arab saudi ke Filipina atau Singapura, dan tujuan lain.

Gandhi menambahkan kerja sama ini merupakan awal dari kemandirian PT PIS sebagai anak perusahaan Pertamina yang bergerak dalam bisnis transportasi energi. Menurutnya ke depannya PT PIS harus memiliki manajemen kapal yang baik serta armada perkapalan sendiri untuk mendukung aktivitas bisnis Pertamina secara keseluruhan.

“Kolaborasi ini juga bisa menjadi tempat untuk berbagi pengetahuan dan pengalaman tentang bagaimana memiliki ship management yang profesional,” ujarnya. 

Dalam keterangan resminya, Presiden Direktur PT PIS Tafkir menjelaskan, kolaborasi ini dilakukan dengan pertimbangan utama untuk meningkatkan added value creation bagi perusahaan sehingga dapat meningkatkan kapabilitas serta kemampuan PT PIS dalam pengelolaan kapal. 

“Kami menilai NYK merupakan calon partner yang cocok dan memenuhi persyaratan untuk kebutuhan kami. Ini adalah shortcut bagi kami. Strategi partnership akan menjadikan kami sebagai salah satu world class company seperti yang diharapkan stakeholders dan top management Pertamina,” jelas Tafkir.

Tidak hanya dalam hal pengelolaan kapal, PT PIS dan NYK juga akan melakukan kerja sama di bidang proyek gas alam cair/LNG, seperti fasilitas Floating Storage and Regasification Unit/FSRU maupun proyek lainnya. Sementara itu, Chief Executive of Energy Divisi NYK Jepang Akira Kono mengatakan, penandatanganan MoU tersebut akan memperkuat jalinan kerja sama serta menjadi pemacu untuk kerja sama lainnya di masa mendatang, khususnya di bidang transportasi energi. 

“Kami percaya, kami dapat memberikan shipping service yang reliable untuk pertumbuhan Pertamina,” ujarnya. 

Saat ini, jelas Gandhi, kapal yang dimiliki Pertamina masih sekitar 30% dari total armada. Kepemilikan kapal ini sesuai dengan perkembangan untuk memenuhi kebutuhan bahan bakar minyak (BBM) dan minyak mentah dalam negeri. Dengan perseroan mulai membeli  minyak mentah milik perusahaan migas yang beroperasi di Indonesia, kebutuhan kapal perseroan juga meningkat.

“Kalau crude (minyak mentah) kan harus diangkut, otomatis kebutuhan kapalnya naik. Kalau dulu crude domestik diekspor, sekarang kan dibeli,” kata Gandhi. 

Pihaknya menargetkan, pada 2026, kepemilikan kapal ini akan naik menjadi 50% dan disesuaikan dengan kebutuhan anggaran. Menurutnya, kapal yang digunakan untuk transpor tasi BBM dan minyak mentah tidak harus seluruhnya dimiliki perusahaan. 

“Target 50% itu itu penguasaan Pertamina, apakah equity atau kerja sama dengan konsep BOT (Built, Operate, Transfer),” tambahnya.

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