Oil and Gas Law Revision Almost Completed

Revision of Law No. 22/2001 on Oil and Gas (Oil) that has been rolling in Parliament is targeted to be completed this year. The outline of the beleid revision emphasizes that strategic sector management should be shaded by specialized agencies outside the government.

The Oil and Gas Draft (RUU Migas) should have entered the latest revision. After that, submitted to the Legislature so that the middle of the year or the end of this year has been ratified, said members of Commission VII DPR.

So far, the management of the oil and gas sector is in the hands of the Special Unit for Upstream Oil and Gas Activities (SKK Migas) which is the representative of the government. However, by referring to the decision of the Constitutional Court (MK) which previously canceled the Oil and Gas Law, the provision must be changed. In this case, institutional SKK Migas should be converted into a special business entity (BUK) oil and gas outside the government.

He said that BUK will receive oil and gas concessions from the government to create cooperative contracts (KKS) with investors or contractors of cooperation contracts (KKKS). The direction of BUK Migas institution is focused as a business entity whose status is under the president. BUK Migas is like a company, but under the president directly. Not Again Government institutions such as SKK Migas.

According to him, if the old concept is maintained, the sovereignty of the state will be threatened. That's because the government position represented by SKK Migas parallel to the KKKS when contracting. Although all factions in Commission VII of the House of Representatives (DPR RI) almost agreed on the oil and gas BUK, it urged that the new institution not only include SKK Migas, but also PT Pertamina.

Separately, the Ministry of Energy and Mineral Resources (ESDM) inaugurated the Energy Efficient Furnace Testing Laboratory (TSHE), the result of cooperation with the World Bank in the Clean Stove Initiative program with a grant of US $ 300 thousand.

The inauguration of the TSHE Test Laboratory could be a solution for the community in encouraging the creation of a healthier and energy-efficient stove so that it is expected to be able to develop a healthy and energy-efficient stove market, "said Bioenergy Director of the Ministry of Energy and Mineral Resources Sudjoko Harsono Adi.

IN INDONESIAN

Revisi UU Minyak dan Gas Bumi Hampir Rampung

    Revisi Undang-Undang Nomor 22/2001 tentang Minyak dan Gas Bumi (Migas) yang sudah Iama bergulir di parlemen ditargetkan rampung tahun ini. Garis besar revisi beleid itu menitikberatkan pengelolaan sektor strategis harus dinaungi lembaga khusus di luar pemerintah. 

     Semestinya (RUU Migas) sudah masuk revisi terakhir. Setelah itu, diserahkan ke Badan Legislatif sehingga tengah tahun atau akhir tahun ini sudah disahkan, kata anggota Komisi VII DPR.

Selama ini, pengelolaan sektor migas ada di tangan Satuan Kerja Khusus Pelaksana Kegiatan Hulu Minyak dan Gas Bumi (SKK Migas) yang merupakan wakil pemerintah. Namun, dengan mengacu amar putusan Mahkamah Konstitusi (MK) yang sebelumnya membatalkan Undang-Undang  Migas, ketentuan tersebut harus diubah. Dalam hal ini, kelembagaan SKK Migas harus diubah menjadi Badan Usaha Khusus (BUK) migas yang berada di Iuar naungan pemerintah.

Ia mengatakan nantinya BUK menerima konsesi migas dari pemerintah untuk membuat kontrak kerja sama (KKS) dengan investor atau kontraktor kontrak kerja sama (KKKS). Arah dari kelembagaan BUK migas berfokus sebagai entitas bisnis yang statusnya ada di bawah presiden. BUK migas ini seperti perusahaan, tapi di bawah presiden Iangsung. Bukan Iagi Iembaga pemerintah seperti SKK Migas.

Menurut dia, jika konsep lama dipertahankan, kedaulatan negara akan terancam. Itu disebabkan posisi pemerintah yang diwakilkan SKK Migas sejajar dengan KKKS saat berkontrak. Meskipun semua fraksi di Komisi VII DPR RI hampir bersepakat soal BUK migas, pihaknya mendesak agar lembaga baru itu tidak hanya mencakup SKK Migas, tetapi juga PT Pertamina. 

Secara terpisah, Kementerian Energi dan Sumber Daya Mineral (ESDM) meresmikan Laboratorium Uji Tungku Sehat Hemat Energi (TSHE), hasil kerja sama dengan World Bank dalam program Clean Stove Initiative dengan dana hihah sebesar US$300 ribu.

Peresmian Laboratorium Uji TSHE ini bisa jadi solusi bagi masyarakat dalam mendorong terciptanya tungku Iebih sehat dan hemat energi sehingga diharapkan mampu mengembangkan pasar tungku sehat dan hemat energi secara berkelanjutan, kata Direktur Bioenergi Kementerian ESDM Sudjoko Harsono Adi.

Media Indonesia, Page-17, Thursday, April, 27, 2017

PGN Gas absorption PT Gresik Migas

Gas supply PT Gresik Migas finally get new customers namely PT Perusahaan Gas Negara (PGN). Later, gas owned by PT Gresik Migas will be absorbed by the state-owned company in the gas field.

President Director of PD Gresik Migas, Bukhari, said that the gas distribution contract to PT PGN is executed in early April. Meanwhile, the initial distribution will be conducted on April 21, 2017. Gas supplied to PGN in accordance with gas supply allocation is from PT Pertamina Hulu Energi West Madura offshore (PHE WMO). The amount is about 5 million feet cubic metric or MMSCFD.

Bukhari admitted, his side took profit margin of 0.5 / MMBTU per US dollar with purchase price from Pertamina of 7.99 / MMBtu per US dollar. PHE WMO sells gas at 7.99 / MMBtu per US dollar. We get a profit of only 0.5 / MMBtu per dollar AAS, so about 8.4 / MMBtu per US dollar. We are selling directly to end user.

Admittedly, during the last year PD Gresik Migas continue to lose. That's because the company he leads has to manipulate the gas costs that lately are quiet buyers. Our customers are currently only two, first PT Bahtera Abadi Gas and PGN. Why no one wants to take the gas to us, because the price of the upstream is already expensive.

Meanwhile, Manager of PT PGN SBU Distribution Region II Jatim, Krisdyan Widagdo Adhi confirmed that it has absorbed gas owned by PT Gresik Migas. Nevertheless, he was reluctant to comment further and submit this to the ranks of central management. It's the head office that has the authority to speak, we can not issue a statement said Krisdyan Widagdo

IN INDONESIAN

PGN Serap Gas PT Gresik Migas

Pasokan gas PT Gresik Migas akhirnya mendapatkan konsumen baru yakni PT Perusahaan Gas Negara (PGN). Nantinya gas milik PT Gresik Migas akan diserap oleh BUMN di bidang gas tersebut.

Direktur Utama PD Gresik Migas, Bukhari mengatakan, kontrak penyaluran gas ke PT PGN dilaksanakan awal April. Sementara penyaluran awal dilakukan pada 21 April 2017. Gas yang disalurkan ke PGN sesuai dengan alokasi suplai gas berasal dari PT Pertamina Hulu Energi West Madura offshore (PHE WMO). Jumlahnya sekitar 5 juta kaki metrik kubik atau MMSCFD.

Bukhari mengaku, pihaknya mengambil margin keuntungan sebesar 0,5/MMBTU per dollar AS dengan harga beli dari Pertamina sebesar 7,99/MMBtu per dollar AS. PHE WMO menjual gas sebesar 7,99/MMBtu per dollar AS. Kita mendapatkan keuntungan hanya 0,5/ MMBtu per dollar AAS, jadi sekitar 8,4/ MMBtu per dollar AS. Kita jual langsung ke end user.

Diakuinya, selama setahun terakhir PD Gresik Migas terus mengalami kerugian. Itu dikarenakan perusahaanyang dia pimpin harus menalangi biaya gas yang belakangan ini sepi pembeli. Konsumen kami saat ini hanya ada dua, pertama PT Bahtera Abadi Gas dan PGN. Mengapa tidak ada yang mau mengambil gas ke kita, karena harga dari hulunya sudah terlanjur mahal.

Sementara itu, Manager PT PGN SBU Wilayah Distribusi II Jatim, Krisdyan Widagdo Adhi membenarkan bahwa pihaknya telah menyerap gas milik PT Gresik Migas. Kendati demikian, dia enggan berkomentar lebih lanjut dan menyerahkan hal ini pada jajaran manajemen pusat. Itu kantor pusat yang mempunyai kewenangan berbicara, kami tidak bisa mengeluarkan statement kata Krisdyan Widagdo

Radar Gresik, Page-4, Thursday, April, 27, 2017

Gross Split Still Worries Industry

Oil and gas supporting entrepreneurs are eager for exploration work

The Indonesian Association of Oil, Gas and Geothermal Drilling Companies (APMI) is still concerned about the implementation of oil and gas revenue sharing with the gross split scheme. Until now enthusiasts from the block of oil and gas are auctioned is still minimal.

Chairman of the Association of Indonesian Oil, Gas and Geothermal (APMI) Drilling Company (APMI) Wargono Soenarko stated that currently the influence of the gross split scheme does not yet exist. After three years of signature gross split, then we are in the work order. Later can be seen whether we used or not used.

According to him, support services engaged in services will not be too afraid to compete with drilling companies from abroad. Because the supporting service companies are more aware of the working area of oil and gas in Indonesia and able to provide cheaper service prices.

However, for the oil and gas supporting services industries that move in the business of leasing goods, still will not be able to fight goods from outside, especially from China. Understandably, goods from China can be cheaper, because imported goods can not be taxable. Meanwhile, if the goods made in the country actually taxable.

In addition, Chinese companies can also get interest-free loans. So in split berries may still still use goods from the outside because it is cheaper. Currently the condition of supporting services business is not too good. Of the 80 drilling activities planned by SKK Migas Lahun, only 10 drilling activities are running.

Thus, more local support services companies go into maintenance activities, such as workovers to keep the company's business running. While exploration activities are still many that can not be worked on because the average is in the deep sea and in eastern Indonesia.

For that with the implementation of gross split, Wargono suggested for its members to continue to organize themselves in order to provide cheap services with good quality. In gross split, KKKS is demanded to be efficient in carrying out activities in upstream oil and gas.

He also hopes, with the implementation of gross split scheme many activities that can be done by oil and gas supporting industries in Indonesia. So far there are 18 oil and gas blocks offered by the government, but no investors are interested. We can not ask anything to the country, we just ask the country to do exploration. Make work in the existing work area.

Meanwhile, Adiatma Sardjito Vice President of Corporate Communication Pertamina, said it had not seen the origin of a good. We if you hire goods for upstream oil and gas, according to the specifications, so it must be good for example casing (pipe sheath) or rig.

As long as the goods can not be produced domestically it must be imported from abroad. The majority is still from the outside, but it's special that can not be produced domestically. While Executive Director of the Indonesian Petroleum Association, Marjoliin Wajong admitted, not involved in KKKS operational affairs.

IN INDONESIAN

Gross Split Masih Bikin Cemas Industri

Pengusaha penunjang migas ingin segera ada pekerjaan eksplorasi

Asosiasi Perusahaan Pemboran Minyak, Gas dan Panas Bumi Indonesia (APMI) masih harap-harap cemas dengan penerapan bagi hasil migas dengan skema gross split. Sampai saat ini peminat dari blok migas yang dilelang masih minim.

Ketua Umum Asosiasi Perusahaan Pemboran Minyak, Gas dan Panas Bumi Indonesia (APMI) Wargono Soenarko menyatakan, saat ini pengaruh dari skema gross split belum ada. Setelah tiga tahun tandatangan gross split, lalu kami di suruh kerja. Nanti bisa dilihat apakah kami dipakai atau tidak dipakai.

Menurutnya, jasa penunjang yang bergerak di bidang jasa tidak akan terlalu takut bersaing dengan perusahaan pemboran dari luar negeri. Pasalnya, perusahaan jasa penunjang sudah lebih mengetahui wilayah kerja migas di Indonesia dan mampu memberikan harga jasa lebih murah.

Namun bagi industri jasa penunjang migas yang bargerak di bisnis penyewaan barang, tetap tidak akan bisa melawan barang-barang dari luar, terutama dari China. Maklum, barang dari Tiongkok bisa lebih murah, karena barang impor bisa tidak terkena pajak. Sedangkan jika barang dibuat di dalam negeri justru terkena pajak.

Selain itu, perusahaan China juga bisa mendapatkan pinjaman bebas bunga. Jadi di beri split berapapun mungkin masih memakai barang dari luar karena lebih murah. Saat ini kondisi bisnis jasa penunjang memang tidak terlalu baik. Dari 80 kegiatan pemboran yang direncanakan SKK Migas Lahun lalu, hanya 10 kegiatan pemboran yang berjalan.

Maka, perusahaan jasa penunjang lokal lebih banyak masuk ke kegiatan pemeliharaan, seperti workover agar bisnis perusahaan bisa tetap berjalan. Sementara kegiatan eksplorasi masih banyak yang belum bisa digarap karena rata-rata berada di laut dalam dan di timur Indonesia.

Untuk itu dengan adanya penerapan gross split, Wargono menyarankan bagi anggotanya agar terus menata diri agar bisa memberikan jasa murah dengan kualitas bagus. Di gross split, KKKS dituntut efisien dalam melakukan kegiatan di hulu migas. 

Dia juga berharap, dengan penerapan skema gross split banyak kegiatan yang bisa dikerjakan industri penunjang migas di Indonesia. Sejauh ini sudah ada 18 blok migas yang ditawarkan pemerintah, tapi tidak ada investor yang berminat. Kami tidak bisa minta apa-apa ke negara, kami minta cuma negara lakukan eksplorasi. Bikin kerjaan di wilayah kerja yang ada.

Sementara itu, Adiatma Sardjito Vice President Corporate Communication Pertamina, mengatakan, pihaknya selama ini tidak melihat asal suatu barang. Kami kalau menyewa barang untuk hulu migas, sesuai spesifikasinya, jadi harus yang baik yang misalnya casing (pipa selubung) atau rig.

Selama barang itu tidak bisa diproduksi di dalam negeri maka harus didatangkan dari luar negeri. Mayoritas memang masih dari luar, tetapi itu khusus yang tidak bisa diproduksi di dalam negeri. Sementara Direktur Eksekutif Indonesian Petroleum Association, Marjoliin Wajong mengaku, tidak terlibat urusan operasional KKKS.

Kontan, Page-14, Thursday, April, 27, 2017

Without Oil and Gas Industry

The discussion organized by the Indonesian Petroleum Association on Wednesday (26/4), in Jakarta, took an interesting theme. "Portrait of Indonesia Without Oil and Gas Industry" is the chosen theme of the organizer. Is it possible? The theme seemed to respond to the statement of Energy and Mineral Resources Minister Ignatius Jonan in an energy discussion late last month. According to him, when the price of oil and gas is low, the import of such commodities is wide open.

Import is very possible if the cost is much cheaper than producing from home. According to Professor of Petroleum Engineering Department of Bandung Institute of Technology Tutuka Ariadji, ignoring the upstream oil and gas industry in the country is not possible. Besides Indonesia still has reserves of about 3 billion barrels of crude oil and 100 trillion cubic feet of natural gas, domestic consumption needs of oil and gas continue to rise from year to year.

The electrification ratio improvement program through the 35,000 megawatt megaproject is difficult to achieve without the contribution of natural gas as fuel for the plant. Electricity becomes the pulse of the economy. Without electricity, economic activity is paralyzed. Back again, gas (and fuel oil) is also needed to power the plant.

If relying on imports, according to Executive Director of ReforMiner Institute Komaidi Notonegoro, Indonesia's foreign exchange reserves could be threatened. Oil and gas imports require about 50 billion US dollars per year. That does not include imports of LPG and other derivative products of oil and gas.

In the oil and gas supporting business sector, this sector will also be hit if the spirit of oil and gas imports is greater than producing from within the country. At the moment of sluggish oil and gas investment lately due to falling oil prices, they lost 40 percent of the value of their business. So said Chairman of the Association of Oil, Gas and Geothermal Drilling Company Indonesia Wargono Soenarko.

The government listened to what Jonan said above, it will not necessarily shut down the upstream oil and gas industry in the country and choose oil and gas import channels. Natural resources in the form of oil and gas will still be utilized optimally with certain rules.

Then, what is the solution for upstream oil and gas investment in the country can be passionate and compete with other countries? Incentives are either tax or fiscal, and the simplification of the bureaucracy. The government has been working to improve the upstream oil and gas investment climate through a number of new regulations, including the simplification of bureaucracy. Again, let time prove whether incentives are more efficacious than importing oil and gas

IN INDONESIAN

Tanpa Industri Migas

Diskusi yang diselenggarakan Asosiasi Perminyakan Indonesia, Rabu (26/4), di Jakarta, mengambil tema menarik. ”Potret Indonesia Tanpa Industri Minyak dan Gas Bumi” adalah tema yang dipilih penyelenggara. Mungkinkah? Tema tersebut seolah merespons pernyataan Menteri Energi dan Sumber Daya Mineral Ignasius Jonan dalam sebuah diskusi energi akhir bulan lalu. Menurut dia, di saat harga minyak dan gas rendah, impor komoditas jenis tersebut terbuka lebar. 

lmpor sangat memungkinkan jika ongkosnya jauh lebih murah daripada memproduksi dari dalam negeri. Menurut Guru Besar Bidang Keahlian Teknik Perminyakan Institut Teknologi Bandung Tutuka Ariadji, mengabaikan industri hulu migas di dalam negeri adalah tidak mungkin. Selain Indonesia masih memiliki cadangan sekitar 3 miliar barrel minyak mentah dan 100 triliun kaki kubik gas bumi, kebutuhan konsumsi minyak dan gas domestik terus naik dari tahun ke tahun.

Program peningkatan rasio elektrifikasi lewat megaproyek 35.000 megawatt sulit terwujud tanpa kontribusi gas bumi sebagai bahan bakar pembangkit. Listrik menjadi urat nadi penggerak perekonomian. Tanpa listrik, aktivitas ekonomi lumpuh. Kembali lagi, gas (dan bahan bakar minyak) juga diperlukan untuk menggerakkan pembangkit listrik.

Jika mengandalkan impor, menurut Direktur Eksekutif ReforMiner Institute Komaidi Notonegoro, cadangan devisa Indonesia bisa terancam. Impor migas membutuhkan sekitar 50 miliar dollar AS per tahun. Itu belum termasuk impor elpiji dan produk turunan migas lainnya.

Di sektor bisnis penunjang migas, sektor ini juga bakal terpukul apabila semangat impor migas lebih besar daripada memproduksi dari dalam negeri. Di saat lesunya investasi migas akhir-akhir ini akibat harga minyak anjlok, mereka kehilangan 40 persen nilai bisnisnya. Demikian kata Ketua Umum Asosiasi Perusahaan Pemboran Minyak, Gas, dan Panas Bumi Indonesia Wargono Soenarko.

Pemerintah menyimak apa yang diucapkan Jonan di atas, memang tidak akan serta-merta mematikan industri hulu migas dalam negeri dan memilih jalur impor migas. Sumber daya alam berupa migas tetap akan dimanfaatkan seoptimal mungkin dengan kaidah-kaidah tertentu.

Lalu, apa solusi agar investasi hulu migas di dalam negeri bisa bergairah dan bersaing dengan negara lain? Insentif adalah salah satunya, baik soal pajak atau fiskal, serta penyederhanaan birokrasi. Pemerintah sudah berupaya memperbaiki iklim investasi hulu migas lewat sejumlah aturan baru, termasuk penyederhanaan birokrasi. Sekali lagi, biar waktu yang membuktikan apakah insentif lebih mujarab daripada mengimpor migas

Kompas, Page-17, Thursday, April, 27, 2017

Hundreds of Business Licenses Block Business Oil and Gas

The Ministry of Energy and Mineral Resources (ESDM) is seeking to deregulate licensing in the oil and gas sub-sectors. In the past, oil and gas business activities required 104 permits. Currently the number of oil and gas business licenses is only six.

Director General of Oil and Gas at IGN Wiratmaja Puja explained that the cutting of permits at the central level is expected to encourage the oil and gas industry to move faster. Permission pruning is also supported online licensing arrangements.

The six permits cover two upstream permits and four downstream clearances. Upstream permits relate to general surveys and utilization of oil and gas basis. Meanwhile, four downstream licenses cover processing, storage, transportation, and commercial operations.

The cuts in the oil and gas business permit continue to simplify the licenses cut to 42 permits last year. Licensing is also not done in the Ministry of ESDM because it has been delegated to the Investment Coordinating Board (BKPM).

Although permits at the central level have been cut, Wiratmaja acknowledges that oil and gas business is still full of regulations. The reason is that oil and gas business still needs 200 permits from other institutions.

IN INDONESIAN

Ratusan Izin Usaha Hambat Bisnis Migas

Kementerian Energi dan Sumber Daya, Mineral (ESDM) berupaya melakukan deregulasi perizinan di sub-sektor minyak dan migas. Dulu kegiatan usaha bidang migas membutuhkan 104 izin. Saat ini jumlah izin usaha bidang migas hanya enam. 

Direktur Jenderal Migas IGN Wiratmaja Puja menjelaskan, pemangkasan izin di tingkat pusat diharapkan mendorong industri migas bergerak lebih cepat. Pemangkasan izin juga didukung pengurusan perizinan secara online.

Enam izin itu melingkupi dua izin di bagian hulu dan empat izin di bagian hilir. Izin di bidang hulu berkaitan dengan survei umum dan pemanfaatan dasar migas. Sementara itu, empat izin di hilir mencakup pengolahan, penyimpanan, pengangkutan, dan usaha niaga.

Pemangkasan izin usaha migas tersebut melanjutkan penyederhanaan izin yang dipangkas menjadi 42 izin pada tahun lalu. Pemberian izin juga tidak dilakukan di Kementerian ESDM karena telah didelegasikan ke Badan Koordinasi Penanaman Modal (BKPM).

Meski izin di tingkat pusat sudah dipangkas, Wiratmaja mengakui bahwa bisnis migas masih penuh dengan regulasi. Alasannya, usaha migas masih membutuhkan 200 izin dari institusi lain. 

Jawa Pos, Page-5, Thursday, April, 27, 2017

PGN Not Import LNG

PT Perusahaan Gas Negara (Persero) Tbk. Relying on domestic production to support the auction of a liquefied natural gas supply project to supply PT PLN's power plants.

Director of Strategy and Business Development PGN Wahid Sutopo said it would develop a non-pipeline gas business through its involvement in the auction of natural gas / LNG supply projects. PGN through its subsidiary PT PGN LNG will participate in LNG procurement auction for PLN's gas power plant.

Wahid explained that PGN's participation in the auction is to contribute to the increase of gas consumption for power plants and while exploiting the liquefied natural gas market opportunity in the country.

In the auction, potential investors should ensure gas supply, provide infrastructure and transport. Such schemes are chosen because the installed capacity of power plants in the central and eastern regions of Indonesia tends to be small and scattered.

The auction winner must also provide an LNG hub as a gas reservoir as well as a vessel and regasification facility close to the plant site.

IN INDONESIAN

PGN Tidak lmpor LNG

PT Perusahaan Gas Negara (Persero) Tbk. mengandalkan produksi dalam negeri untuk mendukung lelang proyek penyediaan gas alam cair untuk memasok bahan bakar pembangkit listrik milik PT PLN.  

Direktur Strategi dan Pengembangan Bisnis PGN Wahid Sutopo mengatakan, pihaknya akan mengembangkan bisnis gas non pipa melalui keterlibatannya dalam lelang proyek penyediaan gas alam /LNG. PGN melalui anak usahanya PT PGN LNG akan mengikuti lelang pengadaan LNG untuk pembangkit listrik tenaga gas milik PLN.

Wahid menjelaskan, partisipasi PGN dalam lelang tersebut untuk ikut berkontribusi dalam peningkatan konsumsi gas untuk pembangkit dan sambil memanfaatkan peluang pasar gas alam cair di dalam negeri.

Dalam lelang tersebut, calon investor harus menjamin pasokan gas, menyediakan infrastruktur, dan transportasinya. Skema seperti ini dipilih karena kapasitas terpasang pembangkit listrik di wilayah tengah dan timur Indonesia cenderung kecil dan tersebar.

Pemenang lelang juga harus menyediakan hub LNG sebagai penampung gas serta kapal dan fasilitas regasifikasi yang dekat dengan lokasi pembangkit. 

Bisnis Indonesia, Page-30, Thursday, April, 27, 2017

RI bets on $200b investment to boost energy output

Indonesia plans to overhaul its energy policy to attract investment of as much as $200 billion over the next decade as the former OPEC member seeks to reverse a decline in its crude oil production.

The amendments to the energy policy, once approved by President Joko “Jokowi” Widodo, will allow explorers various financial incentives including tax-free import of drilling equipment and technology and easier cost-recovery  Energy and Mineral Resources Minister Ignasius Jonan said in an interview in Jakarta on April 22.

The nation is offering 14 unexplored oil and gas blocks, mostly offshore fields, to investors and expect both foreign and domestic companies to actively participate, he said.

Southeast Asia’s biggest economy is seeking to lift production of oil and gas as a supply deficit widens, deepening the nation’s reliance on importslIndonesia suspended its membership of the Organization of Petroleum Exporting Countries (OPEC) in November after just one year of rejoining the group as it struggled to stem a decline in crude and gas production caused by aging fields and alack of investment in exploration for years.

While the development of a much-delayed Masela gas project may cost as much as US$16 billion, the East Natuna block with an estimated reserves of 48 trillion cubic feet of gas may require investment of $30 billion to $40 billion, Jonan said. More than a dozen oil, gas and coal-bed methane fields being offered for development next month may need explorers to pump in $20 billion to $30 billion, he said.

Pertamina, the state-owned oil behemoth, is spending billions of dollars to boost output at its oil and gas fields and expanding refining capacities in partnership with Russia’s Rosneft OAO and Saudi Arabian Oil Co. Indonesia’s crude output is seen topping 1 million barrels per day by 2019 from about 800,000 barrels now through a revamp of explorations of existing fields and the so-called enhanced oil recovery program, Jonan said.

“When people talk about oil and gas, from a business perspective, people tend to focus on upstream, production, exploration and so on, but for the government it’s all of these,” Jonan said.

“If we focus on the upstream, the question is how many reserves, how many oil and gas fields that have not been explored, that’s the issue.”

Indonesia may need to import half of its annual fuel needs even after increasing its refining capacity by 500,000 barrels a day in the next seven years, according to BMI Research. The nation’s processing capacity may grow 2 percent by 2025 while consumption surges 31 percent in the same period, according to BMI.

“For the next ten years we will continue to import,” Jonan said. “The president has said if we continue the import, it should be more of crude oil and not fuel. That’s why the president keeps pushing Pertamina to build refinery locally”

Indonesia currently produces about 800,000 barrels of crude oil a day and imports about 500,000 barrels of crude and about 800,000 barrels of' refined products, Jonan said.

Jakarta Post, Page-13, Wednesday, April, 26, 2017

Government Set Gas Quota for 100 Plant

Domestic gas supply is still lacking.

Minister of Energy and Mineral Resources Ignasius Jonan has allocated gas for 100 power plants across Indonesia until 2026. The gas quota is arranged based on the proposed PT PLN as stated in the Electricity Supply Business Plan (RUPTL) 2017-2026.

The Java-Bali generation system generates the most gas this year, which is 1,188 billion British thermal units per day (BBTUD). As for next year, the amount of gas is reduced to 1.170 BBTUD.

Gas demand for Java-Bali is actually larger than the supply of 1,193 BBTUD this year. The shortage will widen next year, as an estimated increase in demand to 1231 BBTUD. The deficit is closed from the gas potential to be obtained

While the system of Sumatra received gas supply of 243.8 BBTUD this year and 298.1 BBTUD next year. Around 432 generators in this system also require more gas than the available supply.

Additional gas opportunities could be obtained by PLN by 67.2 BBTUD. The gas supply deficit also occurred in Sulawesi and Nusa Tenggara system this year at 30.8 BBTUD. The gas shortage will increase next year by 39.9 BBTUD. So is the Kalimantan system, which requires additional gas of 2.1 BBTUD this year and 30.9 BBTUD next year.

In the Maluku and Papua system, 34 power plants have not received clarity of gas supply until next year. Whereas the gas requirement reached 44.4 BBTUD until 2018. Actually, the Ministry of Energy has planned gas allocation for Papua from Tangguh refinery managed by BP Berau Ltd. Later, gas from Tangguh refinery units I and II will be transported using LNG mini boats.

The ship sends gas to the nearest pier, then flows to the power plant. This scheme is called a virtual pipeline. The gas distribution through the sea will also be used to illuminate other areas in eastern Indonesia, such as Maluku and East Nusa Tenggara

To meet gas demand, Jonan asked PLN to accelerate the maximum gas sale agreement early next year. Within 12 months after the issuance, PLN must complete the natural gas purchase agreement. If domestic gas supply is insufficient, Jonan invites PLN to buy from outside the country. Provided, the price does not exceed 11.5 percent of Indonesia Crude Price (ICP).

Regarding the Papua gas distribution channel, the Ministry of Energy will hold a tender in the second half of 2017. Our open offer coordinates with PLN, said Director General of Oil and Gas, I Gusti Nyoman Wiratmaja.

IN INDONESIAN

Pemerintah Tetapkan Kuota Gas 100 Pembangkit

Pasokan gas domestik masih kurang.

Menteri Energi dan Sumber Daya Mineral Ignasius Jonan telah mengalokasikan gas untuk 100 pembangkit listrik di seluruh Indonesia hingga 2026 mendatang. Kuota gas diatur berdasarkan usul PT PLN yang tertera dalam Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2017-2026. 

Sistem pembangkitan Jawa-Bali paling banyak memperoleh gas tahun ini, yakni sebesar 1.188 billion British thermal unit per day (BBTUD). Adapun tahun depan, jumlah gasnya berkurang menjadi 1.170 BBTUD.

Permintaan gas untuk Jawa-Bali sebenarnya lebih besar dibanding pasokan, yakni 1.193 BBTUD pada tahun ini. Kekurangan akan melebar tahun depan, karena diperkirakan terjadi peningkatan permintaan menjadi 1.231 BBTUD. Defisit ditutup dari potensi gas yang akan diperoleh

Sedangkan sistem Sumatera memperoleh pasokan gas 243,8 BBTUD pada tahun ini dan 298,1 BBTUD pada tahun depan. Sekitar 432 pembangkit di sistem ini juga membutuhkan gas Iebih banyak daripada pasokan yang tersedia. 

Peluang gas tambahan bisa diperoleh PLN sebesar 67,2 BBTUD. Defisit pasokan gas juga terjadi di sistem Sulawesi dan Nusa Tenggara pada tahun ini sebesar 30,8 BBTUD. Kekurangan gas akan meningkat pada tahun depan sebesar 39,9 BBTUD. Begitu juga di sistem Kalimantan, yang membutuhkan gas tambahan sebesar 2,1 BBTUD pada tahun ini dan 30,9 BBTUD tahun depan.

Di sistem Maluku dan Papua, 34 pembangkit juga belum mendapat kejelasan pasokan gas hingga tahun depan. Padahal kebutuhan gasnya mencapai 44,4 BBTUD hingga 2018. Sebenarnya Kementerian Energi sudah merencanakan alokasi gas untuk wilayah Papua dari kilang Tangguh yang dikelola BP Berau Ltd. Nantinya, gas yang berasal dari kilang Tangguh unit I dan II akan diangkut menggunakan kapal mini LNG. 

Kapal mengirim gas ke dermaga terdekat, kemudian dialirkan ke pembangkit listrik. Skema ini disebut virtual pipeline. Jalur distribusi gas melalui laut juga akan dipakai menerangi daerah lain di Indonesia timur, seperti Maluku dan Nusa Tenggara Timur

Untuk memenuhi kebutuhan gas, Jonan meminta PLN mempercepat perjanjian jual-beli gas maksimal awal tahun depan. Dalam jangka waktu 12 bulan setelah ditetapkan, PLN harus menyelesaikan perjanjian jual-beli gas bumi. Jika pasokan gas domestik tidak mencukupi, Jonan mempersilakan PLN membeli dari luar negeri. Asalkan, harganya tidak melebihi 11,5 persen dari Indonesia Crude Price (ICP).

Mengenai jalur distribusi gas Papua, Kementerian Energi akan menggelar tender pada paruh kedua 2017. Penawaran terbuka kami koordinasikan dengan PLN, kata Direktur Jenderal Minyak dan Gas Bumi, I Gusti Nyoman Wiratmaja.

Koran Tempo, Page-20, Wednesday, April, 26, 2017

Government Stop Mini Refinery Auction

The government suspended the auction of small-scale petroleum refineries in the Molucas region. Though the auction has been running and five companies have been declared qualified.

This is in accordance with the direction of the Minister of Energy and Mineral Resources Ignatius Jonan to commission the construction of this refinery to Pertamina. Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM) I Gusti Nyoman Wiratmaja said the construction of small-scale refineries will be discussed further with PT Pertamina

In an announcement dated January 24, the ESDM Ministry announced five companies passed small-scale auction of petroleum refineries for Cluster 8 or Maluku region. The five companies are PT Alam Bersami Sentosa, PT Tri Wahana Universal, KSO PT Remaja Bangun Kencana Contractor-Changling Petrochemical engineering Design Co Ltd, PT Alliance Lintas Teknologi, and KSO PT Harmoni Drilling Services-Oceanus Co. Ltd.

After the auction is stopped, Pertamina will conduct partner selection in the construction of this mini refinery. The government's consideration assigned Pertamina because the state-owned oil and gas company understands the processing business and is the sole buyer of refinery products.

It has not been able to determine whether the entire construction of a mini refinery will be assigned to Pertamina. Because his side and Pertamina still have to discuss more about the mechanism of assignment of the construction of this mini refinery. For the number of refineries built, it can be reduced or increased depending on Pertamina.

Previously, the government targeted a small scale oil refinery built in eight clusters at once. The ongoing auction is for Cluster VII or Maluku which will process crude oil at 3,700 barrels per day (bpd) from Oseil and Bula Fields. In addition to the Moluccas, a mini refinery will also be built in seven other clusters. For Cluster I, a mini refinery will be built near the Rantau and Pangkalan Susu Block in Sumatra.

Furthermore, Klaster II in Emo Malacca Strait and Petroselat Blocks in Malacca Strait and Klaters III in Tonga Block, Shelters, Pendalian, Langgak, and West Area in Riau. Then, the location of mini refinery in Klaster IV that is in Palmerah Block, Mengoepeh Lemang, and Karang Agung in Jambi. Meanwhile, Klaster V in Merangin III and Ariodamar Block in South Sumatera, Klaster VI in Tanjung Block in Kalimantan Selarang and Klaster VII in Bunyu Block, Sembakung, Mamburungun and Pamusian Juwata in North Kalimantan.

The construction of a refinery refers to Minister of Energy and Mineral Resources Regulation No. 22 of 2016 on Implementation of Small-Scale Oil Refinery Establishment in the Country. In accordance with the regulation, small scale oil development can be done in clusters or outside clusters established by the Director General of Oil and Gas. The construction of small-scale refineries in clusters can be carried out by the Government or business entities.

In order to improve economic feasibility, the implementation of small-scale oil refinery development may obtain fiscal and non-fiscal incentive facilities in accordance with the provisions of legislation and / or integrate the production of petrochemical products.

As for the price of petroleum this mini refinery will be set formula by the Minister of Energy and Mineral Resources. Formulation of the formula shall be carried out by considering the specifications of petroleum and / or condensate, calculating the efficiency of upstream and downstream business activities or refinery economies based on the delivery point. The ESDM Minister may assign different price formulas to a different type of petroleum or condensate at each different handling point.

IN INDONESIAN

Pemerintah Hentikan Lelang Kilang Mini

Pemerintah menghentikan lelang pembangunan kilang minyak bumi skala kecil di wilayah Maluku. Padahal Ielang sudah berjalan dan lima perusahaan telah dinyatakan lolos kualifikasi.

Hal ini sesuai dengan arahan Menteri ESDM Ignasius Jonan untuk menugaskan pembangunan kilang ini kepada Pertamina. Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) I Gusti Nyoman Wiratmaja mengatakan, pembangunan kilang minyak skala kecil akan dibahas lebih lanjut dengan PT Pertamina 

Dalam pengumuman tertanggal 24 Januari, Kementerian ESDM mengumumkan lima perusahaan lolos lelang kilang minyak skala kecil untuk Klaster 8 atau wilayah Maluku. Kelima perusahaan ini adalah PT Alam Bersami Sentosa, PT Tri Wahana Universal, KSO PT Remaja Bangun Kencana Kontraktor-Changling Petrochemical engineering Design Co Ltd, PT Aliansi Lintas Teknologi, dan KSO PT Harmoni Drilling Services-Oceanus Co Ltd.

Pasca lelang disetop, Pertamina yang akan melakukan pemilihan mitra dalam pembangunan kilang mini ini. Pertimbangan pemerintah menugaskan Pertamina karena perusahaan migas milik pemerintah itu lebih memahami bisnis pengolahan dan merupakan satu-satunya pembeli bahan bakar produk kilang ini. 

Pihaknya belum dapat memastikan apakah seluruh pembangunan kilang mini akan ditugaskan kepada Pertamina. Pasalnya pihaknya dan Pertamina masih harus membahas lebih lanjut soal mekanisme penugasan pembangunan kilang mini ini. Untuk jumlah kilang yang dibangun, disebutnya bisa berkurang maupun bertambah tergantung Pertamina.

Sebelumnya, pemerintah menargetkan kilang minyak skala kecil dibangun di delapan klaster sekaligus. Lelang yang sudah berjalan yakni untuk Klaster VII atau Maluku yang akan mengolah minyak mentah sebesar 3.700 barel per hari (bph) dari Lapangan Oseil dan Bula. Selain di Maluku, kilang mini juga akan dibangun di tujuh klaster lain. Untuk Klaster I, kilang mini akan dibangun di dekat Blok Rantau dan Pangkalan Susu di Sumatera. 

Selanjutnya, Klaster II di Blok Emo Malacca Strait dan Petroselat di Selat Malaka Panjang dan Klaters III di Blok Tonga, Sial, Pendalian, Langgak, dan West Area di Riau. Kemudian, lokasi kilang mini di Klaster IV yakni di Blok Palmerah, Mengoepeh Lemang, dan Karang Agung di Jambi. Sementara Klaster V di Blok Merangin III dan Ariodamar di Sumatera Selatan, Klaster VI di Blok Tanjung di Kalimantan Selarang, serta Klaster VII di Blok Bunyu, Sembakung, Mamburungun, dan Pamusian Juwata di Kalimantan Utara.

Pembangunan kilang mini mengacu pada Peraturan Menteri ESDM Nomor 22 Tahun 2016 tentang Pelaksanaan Pembangunan Kilang Minyak Skala Kecil di Dalam Negeri. Sesuai dengan aturan tersebut, pembangunan minyak skala kecil dapat dilakukan di dalam klaster atau di luar klaster yang ditetapkan oleh Dirjen Migas. Pembangunan kilang minyak skala kecil di dalam klaster, dapat dilakukan oleh Pemerintah atau badan usaha.

Dalam rangka meningkatkan kelayakan keekonomian, pelaksanaan pembangunan kilang minyak skala kecil bisa memperoleh fasilitas insentif fiskal maupun non Fiskal sesuai dengan ketentuan peraturan perundang-undangan dan atau mengintegrasikan produksi produk petrokimia.

Sementara untuk harga minyak bumi kilang mini ini akan ditetapkan formulanya oleh Menteri ESDM. Penetapan formula dilakukan dengan mempertimbangkan spesifikasi minyak bumi dan/ atau kondensat, perhitungan efisiensi kegiatan usaha hulu maupun hilir atau keekonomian kilang berdasarkan titik serah. Menteri ESDM dapat menetapkan formula harga yang berbeda terhadap suatu jenis minyak bumi atau kondensat pada setiap titik serah yang berbeda.

Investor Daily, Page-9, Wednesday, April, 26, 2017

HK and EMCL Have Not Pay Local Contractor Rp. 1.5 Billion

Polres Bojonegoro mediated between local contractors with PT Hutama Karya (HK) and ExxonMobil Cepu Limited (EMCL) related to the unpaid bills of unpaid bills of the oil and gas field project of Banyu Urip, Cepu Block. Mediation is done in Parama Satwika Police Resort Bojonegoro.

However, during the meeting, PT Hutama Karya (HK), the main contractor in the Banyu Urip field project, was absent. Kapolres Bojonegoro AKBP Wahyu Sri Bintoro then asked local contractors to complete the data as the next meeting material.

Revelation Sri Bintoro hopes, nine local contractors convey in detail the facts on the ground so that the police have a complete picture of how the value of unpaid project arrears. He asked the local contractor to make a detailed and complete report on billing documentation and supporting documents as material to convey to PT HK and EMCL.

Do not let the issue of local contractor issues become a disturbance of security and public order. Check the outside contractor whether it has empowered local contractors. Hopefully the meeting as a good starting point of communication so that no party is harmed.

One of the contractor representatives, Hadi from PT Java Exspress, said that the unpaid arrears by HK parties to his company amounted to Rp 1.5 billion.

He said that during this time his side has sent letters several times, but never responded. Last meeting in Surabaya, the PT HK explained can not pay because EMCL has not agreed.

While EMCL representative Rexy Mawardi Jaya said the contract for the Banyu Urip oil field project, Cepu Block, is between EMCL and Rekin-Hutama Karya (RH).

EMCL is not involved in the contract between Rekin-PT HK and its subcontractors. In principle, EMCL and Rekin-HK have agreed to make payments on the value and costs contained in the contract.

IN INDONESIAN

HK dan EMCL Belum Bayar Kontraktor Lokal Rp. 1,5 Miliar

Polres Bojonegoro melakukan mediasi antara kontraktor lokal dengan pihak PT Hutama Karya (HK) dan ExxonMobil Cepu Limited (EMCL) terkait belum dibayarnya sejumlah tunggakan tagihan pembayaran pengerjaan proyek lapangan minyak dan gas bumi (migas) Banyu Urip, Blok Cepu. Mediasi dilakukan di ruang Parama Satwika Polres Bojonegoro.

Namun, dalam pertemuan itu, pihak PT Hutama Karya (HK) selaku kontraktor utama dalam proyek lapangan Banyu Urip, tidak hadir. Kapolres Bojonegoro AKBP Wahyu Sri Bintoro lalu meminta para kontraktor lokal melengkapi data sebagai bahan pertemuan selanjutnya. 

Wahyu Sri Bintoro berharap, sembilan kontraktor lokal menyampaikan secara detail fakta di lapangan sehingga pihak kepolisian mempunyai gambaran lengkap berapa nilai tunggakan proyek yang belum dibayar. Dia meminta kontraktor lokal membuat laporan secara terperinci dan lengkap mengenai dokuman tagihan dan dokumen pendukung sebagai bahan untuk menyampaikan pada pihak PT HK dan EMCL.

Jangan sampai masalah isu kontraktor lokal ini menjadi gangguan keamanan dan ketertiban masyarakat. Periksa kembali kontraktor luar apakah sudah memberdayakan kontraktor lokal. Semoga pertemuan sebagai titik awal komunikasi yang baik sehingga tidak ada pihak yang dirugikan.

Salah satu perwakilan kontraktor, Hadi dari PT Jawa Exspress, mengatakan bahwa tunggakan yang belum dibayar oleh pihak HK kepada perusahaan miliknya sebesar Rp 1,5 miliar.

Dia mengatakan, selama ini pihaknya sudah mengirim surat beberapa kali, tapi tidak pernah ditanggapi. Terakhir rapat di Surabaya, pihak PT HK menjelaskan belum bisa membayar karena EMCL belum menyetujui.

Sementara perwakilan EMCL Rexy Mawardi Jaya mengatakan, kontrak pengerjaan proyek lapangan migas Banyu Urip, Blok Cepu, adalah antara EMCL dan Rekin-Hutama Karya (RH).

EMCL tidak terlibat dalam kontrak antara Rekin-PT HK dengan para subkontraktornya. Secara prinsip EMCL dan Rekin-HK telah sepakat melakukan pembayaran atas nilai dan biaya yang ada dalam kontrak.

Koran Sindo, Page-18, Wednesday, April, 26, 2017