Jonan resorts to bullying major foreign oil companies

     For Japan’s lnpex Corp. and Royal Dutch Shell, Indonesia’s abrupt policy change to make them rewrite their multi-billion-dollar business plan last year may not be their last hurdle, even after more than six years of negotiations aimed at getting the project running.

     The companies, at risk of losing the US$l.6 billion they already sank into gas exploration in the Masela block in Maluku, were forced by President Joko “Jokowi” Widodo in March last year to alter their plan to extract gas from the block using offshore facilities. They must now use onshore facilities instead. 

     While the companies have finally agreed to move forward with the $19 billion onshore project, the biggest ever in Indonesia, a recent deadlock in the negotiations with the authorities over preliminary facility design have made them the apparent victims of bullying-like tactics. 

      Energy and Mineral Resources Minister Ignasius Jonan has threatened to cancel a production-sharing contract (PSC) involving the gas-rich block if the contractors do not get the ball rolling on the field’s development. The government has asked Inpex and Shell, which hold' 65 and 35 percent stakes in the block, respectively, to immediately agree to the Energy and Mineral Resources Ministry’s terms for the design during the so-called preliminary front-end engineering design (pre-FEED) phase.

     This phase will determine the production capacity of the onshore liquefied natural gas (LNG) plant, the length of pipes, the allocation of gas for local use and the islands where the facilities will be located, among other things. “If Inpex takes too long to conduct the pre-FEED then I will cancel the contract. My patience is wearing thin,” Jonan said . “I have been the energy and mineral resources minister for six months and they still haven’t started.”

    Unilaterally terminating the PSC, which will not expire until 2028, will be legally time consuming and the government will be at risk of being pulled into international arbitration if the companies cannot fully accept the termination rationale.

     During the pre-FEED negotiations, the ministry has given Inpex and Shell two options for the LNG plant capacity 7.5 mtpa with 474 million standard cubic feet of gas per day (mmscfd) or 9.5 mtpa and 160 mmscfd. The piped gas will be sold to local petrochemical companies.

     The Masela block is estimated to be able to produce 1,200 mmscfd and 24,000 barrels of condensate per day for 24 years. However, the ministry has demanded the companies explore other options for onshore designs that will cost them more than $75 million in additional investment with no benefits at all as the options are already estimated to yield less than initially expected.

     Exploring other design options will only delay the pre-FEED completion, which normally takes one and a half years. Pre-FEED is an early stage after resource discovery. After the phase, the companies and the ministry are required to negotiate a plan of development (POD), which usually also takes one and a half years at most.

     Once the POD is approved, the companies and the ministry proceed to negotiate the final FEED, which includes talks about incentives and taxes. This process can take two to three years before the project construction is offered for open bidding, which takes less than one year. Construction takes four to five years.”  Given the complexity of the negotiations, the chances for the block to start producing by 2023, as the government hopes, may diminish.

     Inpex spokesman Usman Slamet said the company would continue to work with the government to find a way to expedite the project. “We continue to work together with the government to continue the project as soon as possible. The gas field project needs hard work and large investments in the long term so it needs support from all stakeholders,” he said.

     Indonesian Chamber of Commerce and Industry (Kadin) head of energy oil and gas regulations Firlie Ganinduto said Jonan’s comment would only spook investors and he said he hoped the former banker would not harm their business. “The government must honor any agreements already made,” he said

     ReforMiner Institute researcher Pri Agung Rakhmanto said that although Jonan’s statement might have been merely “emotional,” it only highlighted the government’s increasing lack of attention toward the upstream energy sector.

“The policies the government has utilized only demonstrated its distrust toward the industry. This may be even more apparent since the sector’s contribution to state revenues has continued to decline,” he said. 

     Moreover, Pri Agung noted that the government cannot revoke a PSC unilaterally, as any cancellation of a contract must be agreed to by all parties. The Masela morass has drawn the attention of both Japanese Prime Minister Shinzo Abe and Dutch Prime Minister Mark Rutte who recently demanded Jokowi help resolve the project’s bottlenecks.

Jakarta Post, Page-13, Thursday, May, 4, 2017

Government Give Ultimatum to Inpex

If pre-FEED is not completed soon, the FEED process is feared to be hampered.

The government gives ultimatum to Inpex Corporation which is considered slow to work on Masela Block, especially related to the completion of pre-front end engineering (FEED) study. In fact, after selecting a scheme for the development of an onshore liquefied natural gas (LNG) refinery, the government hopes that the gas field located in Arafuru Sea will soon be in production. I was six months in the Ministry of Energy and Mineral Resources (ESDM), but (pre-FEED study) did not start immediately, said ESDM Minister Ignasius Jonan

The government as indicated by Jonan seems to have been unable to wait any longer. Please to write, Inpex if too long pre-FEED, I cancel (cooperation contract / KKS). Do not let me lose patience, said the former Minister of the Commonwealth. However, he was reluctant to reveal how long the limit of patience the government has.

The pre-FEED phase includes location determination, refinery capacity, and development plans related to the petrochemical industry. If pre-FEED is not finalized soon, the FEED process until final Final Investment Decision (FID) is scheduled for completion in 2019 is feared to be hampered. It will also threaten the realization of the first gas production (on stream) is targeted in 2026.

Two scenarios

On pre-FEED issues, Inpex was asked to prepare a review of two scenarios. The investor version of the scenario scenario is the increase of refinery capacity from 7.5 million tons per year (mtpa) to 9.5 mtpa plus 150 million cubic feet per day (mmscfd) of gas production. The government version of the scenario is 5 mtpa capacity plus gas production of 474 mmscfd. Broadly speaking, both scenarios have the same total value of LNG production as it comes from the same wellhead.

Regarding the certainty of the scenario to be taken, Jonan said it refers to the study proposed investors. "If pre-FEED is not finished yet, how can it be decided. Let's wait for the pre-FEED stage one.

The change in the scheme for the development of an LNG refinery facility from offshore to onshore has in fact resulted in additional capital expenditures and project work periods suspected to be delayed.

In this regard, Inpex has submitted a request for incentives for the project development to remain economically viable. Among these include compensation of contractual time lost for 10 years (2007-2017) from oil and gas field development with proven reserves of 10.73 tcf. Regarding to that, the government offers a seven-year compensation option.

When asked for confirmation on the same occasion, Senior Communication Manager of Inpex Corporation Usman Slamet stated there are still some things that need to be negotiated with the government before starting pre-FEED.

Meanwhile, Jonan on the sidelines of the National Gas Gas Forum revealed that domestic gas utilization has recorded a positive trend with an average increase of 9% since 2003. We want more domestic gas usage so that there is added value. Surely the price must also be competitive with good quality.

IN INDONESIAN

Pemerintah Ultimatum Inpex

Apabila pre-FEED tidak segera dirampungkan, proses FEED dikhawatirkan terhambat.

Pemerintah memberikan ultimatum kepada Inpex Corporation yang dianggap lamban menggarap Blok Masela, khususnya terkait dengan penyelesaian kajian pre-front end engineering design (FEED). Padahal, setelah memilih opsi skema pengembangan kilang gas alam cair berbasis darat (on shore liquefied natural gas), pemerintah berharap lapangan gas yang terletak di Laut Arafuru itu segera berproduksi. Saya sudah enam bulan di Kementerian Energi dan Sumber Daya Mineral (ESDM), tapi (kajian pre-FEED) tidak segera dimulai, kata Menteri ESDM Ignasius Jonan

Pemerintah sebagaimana di isyaratkan Jonan tampaknya sudah tidak bisa menunggu lebih lama. Tolong untuk di tulis, Inpex kalau terlalu lama pre-FEED, saya batalkan (kontrak kerja sama/KKS). Jangan sampai saya hilang kesabaran, kata mantan Menteri Perhuhungan tersebut. Namun, dia enggan mengungkapkan berapa lama batas kesabaran yang dimiliki pemerintah.

Fase pre-FEED mencakup penentuan lokasi, kapasitas kilang, berikut rencana pengembangan yang menyangkut industri petrokimia. Apabila pre-FEED tidak segera dirampungkan, proses FEED hingga penyampaian keputusan akhir Final Investasi (final investment decision/FID) yang dijadwalkan selesai di 2019 dikhawatirkan terhambat. Hal itu nantinya turut mengancam realisasi produksi gas pertama (on stream) yang ditargetkan pada 2026.

Dua skenario

Soal pre-FEED, Inpex diminta menyiapkan kajian atas dua skenario. Dengan perincian skenario versi investor ialah peningkatan kapasitas kilang dari 7,5 juta ton pertahun (mtpa) menjadi 9,5 mtpa ditambah produksi gas 150 juta kaki kubik per hari (mmscfd). Adapun skenario versi pemerintah ialah kapasitas 5 mtpa ditambah produksi gas 474 mmscfd. Secara garis besar, kedua skenario itu memiliki nilai total produksi LNG serupa karena bersumber dari mulut sumur (well head) yang sama.

Mengenai kepastian skenario yang akan diambil, Jonan menuturkan hal itu mengacu pada kajian yang diajukan investor. “Kalau pre-FEED belum selesai, bagaimana bisa diputuskan. Kita tunggu saja hasil pre-FEED tahap satu.

Perubahan skema pengembangan fasilitas kilang LNG berubah dari berbasis laut (off shore) ke darat (on shore) nyatanya berdampak terhadap penambahan belanja modal perusahaan dan masa pengerjaan proyek yang ditengarai molor. 

Terkait dengan itu, Inpex telah mengajukan permohonan insentif agar pengembangan proyek tetap ekonomis. Di antaranya termasuk kompensasi waktu kontrak yang hilang selama 10 tahun (2007-2017) dari pengembangan lapangan migas dengan cadangan terbukti 10,73 tcf. Mengenai hal itu, pemerintah menawarkan opsi kompensasi tujuh tahun.

Saat dimintai konfirmasi pada kesempatan yang sama, Senior Communication Manager Inpex Corporation Usman Slamet menyatakan masih ada beberapa hal yang perlu dirundingkan dengan pemerintah sebelum memulai pre-FEED. 

Sementara itu, Jonan di sela-sela Forum Gas Bumi Nasional mengungkapkan pemanfaatan gas bumi domestik tercatat menunjukkan tren positif dengan kenaikan rata-rata 9% sejak 2003. Kita ingin penggunaan gas di dalam negeri semakin banyak sehingga ada nilai tambah. Tentunya harganya juga harus kompetitif dengan kualitas yang bagus.

Media Indonesia, Page-18, Thursday, May, 4, 2017

Minister Jonan Banned the State Budget for Mini Refineries

Minister of Energy and Mineral Resources Ignasius Jonan banned the use of the State Revenue and Expenditure Budget to finance the construction of refineries. Just give it to the operator.

Jonan asserted, small-scale refinery projects should be managed by the business world, either as investors or contractors who work on construction work. This we open to anyone. If you have to tender and others too long

Earlier, the Ministry of Energy plans to auction the construction of eight mini refinery clusters, namely refineries with production capacity below 10 thousand barrels per day (bpd). The program is regulated in Ministerial Regulation No. 22 of 2015.

The mini refineries to be auctioned are cluster I of North Sumatera (Rantau dan Pangkalan Susu) with 3,617 bph oil production, Malaka Strait and Petroselat Stage II II clusters with 4,427 bph oil production, Riau III cluster (Tonga, Siak, Pemalian , Langgak, West Area, Kisaran) with 2,391 bph oil production, Jambi IV cluster (Palmerah, Mengoepeh, Lemang, Karang Agung) with oil production of 1,914 bpd, and South Sumatra V cluster (Merangin II and Ariodamar) with oil production of 3,947 bpd.

The cluster VI is located in South Kalimantan (Tanjung with oil production of 3,539 bph, cluster VII is in North Kalimantan (Bunyu, Sembakung, Mamburungan, Pamusian Juwata) with oil production 8,059 bph, and cluster VIII is in Maluku (Oseil and Bula) Oil is 3,947 bpd.

Jonan said the government had no resources to operate the mini refinery. In addition, the state budget is only to make something that is needed by society to the bottom of society. For example the construction of a gas network for urban, housing or flats in urban areas.

Jonan ensures the construction of the gas network will continue to be done. Because, with the infrastructure, the cost of consumption will be cheaper than using LPG. Thus, in the future, the government expects the demand for LPG to decline. Now it still imports 4.5 million tons, a lot.

Jonan targets, in the future, Indonesia can build a million home connections in a year to channel gas to people's homes.

IN INDONESIAN

Menteri Jonan Larang Anggaran Negara untuk Kilang Mini

Menteri Energi dan Sumber Daya Mineral Ignasius Jonan melarang penggunaan Anggaran Pendapatan dan Belanja Negara untuk membiayai pembangunan kilang. Berikan saja kepada operator.

Jonan menegaskan, proyek kilang minyak berskala kecil sebaiknya dikelola dunia usaha, baik itu sebagai investor maupun kontraktor yang menggarap pekerjaan konstruksi. Ini kami buka kepada siapa saja. Kalau harus tender dan lain-lain terlalu lama

Sebelumnya, Kementerian Energi berencana melelang pembangunan delapan kluster kilang mini, yakni kilang dengan kapasitas produksi di bawah 10 ribu barel per hari (bph). Program itu diatur dalam Peraturan Menteri Nomor 22 Tahun 2015. 

Kilang mini yang akan dilelang ialah kluster I Sumatera Utara (Rantau dan Pangkalan Susu) dengan produksi minyak sebesar 3.617 bph, kluster II Selat Panjang Malaka (EMP Malacca Strait dan Petroselat) dengan produksi minyak 4.427 bph, kluster III Riau (Tonga, Siak, Pendalian, Langgak, West Area, Kisaran) dengan produksi minyak 2.391 bph, kluster IV Jambi (Palmerah, Mengoepeh, Lemang, Karang Agung) dengan produksi minyak 1.914 bph, serta kluster V Sumatera Selatan (Merangin II dan Ariodamar) dengan produksi minyak 3.947 bph.

Adapun kluster VI berada di Kalimantan Selatan (Tanjung dengan produksi minyak 3.539 bph, kluster VII berada di Kalimantan Utara (Bunyu, Sembakung, Mamburungan, Pamusian Juwata) dengan produksi minyak 8.059 bph, dan kluster  VIII ada di Maluku (Oseil dan Bula) dengan produksi minyak 3.947 bph.

Jonan menambhakan pemerintah tidak punya sumber daya untuk mengoperasikan kilang mini tersebut. Selain itu, anggaran negara hanya untuk membuat sesuatu yang memang dibutuhkan oleh masyarakat hingga kalangan yang paling bawah. Misalnya pembangunan jaringan gas untuk perkotaan, perumahan atau rusun di perkotaan.

Jonan memastikan pembangunan jaringan gas akan terus dilakukan. Sebab, dengan infrastruktur itu, biaya konsumsi akan lebih murah dibanding menggunakan elpiji. Dengan demikian, ke depan, pemerintah berharap permintaan elpiji akan menurun. Sekarang masih impor 4,5 juta ton, banyak sekali.

Jonan menargetkan, ke depan, Indonesia dapat membangun satu juta sambungan rumah dalam setahun untuk mengalirkan gas ke rumah-rumah warga.

Koran Tempo, Page-20, Thursday, May, 4, 2017

Jonan Threatens Inpex Related Slowly Development of Masela Block

Minister of Energy and Mineral Resources (ESDM) lgnasius Jonan threatened to cancel cooperation with Inpex Corporation related to the slowness of the development process of Masela Block. Jonan confirmed that he was impatient, because he had been waiting for six months, but the progress of the development of liquefied natural gas (LNG) is no progress. If it's too long, I cancel it.

The explanation is that the Ministry of Energy and Mineral Resources has been waiting for the completion of a structural and design review for the estimated cost of the Inpex pre-FEED facility, but the study in the Aru and Yamdena Islands area of the Masela Block has not been developed.

Inpex has the responsibility to conduct a pre-FEED study of 9.5 mtpa capacity plus 150 MMSCFD and 7.5 mtpa plus 474 MMSCFD. Pre-Feed is up to Inpex.

Based on information from the Ministry of ESDM, in early 2017, its development is still awaiting a letter from Inpex regarding the "fiscal terms" offered by the Government to develop Abadi Field, Masela Block.

The government decided to increase the operation of the Masela Block for seven years. This is lower than Inpex's request as operator of Masala Block is 10 years.

In addition, it has also decided the capacity of liquefied natural gas (LNG) production to be 7.5 metric tons per year. Meanwhile, for natural gas at 47 4 million cubic feet per day. In his proposal, Inpex requested that the refinery capacity be added from 7.5 million metric tons per year to 9.5 million metric tons per year.

Regarding the return on investment of the internal rate of return (IRR) of the project, the Government has never set it to be at 15 percent and so on. The most important thing is still within reasonable limits. The fairness limits of the Masela Block IRR are less than 15 percent.

IN INDONESIAN

Jonan Ancam Inpex Terkait Lamban Pengembangan Blok Masela

Menteri Energi dan Sumber Daya Mineral (ESDM) lgnasius Jonan mengancam akan membatalkan kerja sama dengan Inpex Corporation terkait lambannya proses pengembangan Blok Masela. Jonan menegaskan bahwa ia sudah tidak sabar, sebab sudah ditunggu selama enam bulan, namun progres pengembangan kilang gas alam cair (LNG) tersebut tidak ada perkembangan. Kalau terlalu lama, saya batalkan.

Penjelasannya adalah sudah enam bulan Kementerian ESDM menunggu penyelesaian tentang kajian struktur dan desain untuk estimasi fasilitas biaya (Pre-FEED) dari Inpex, namun kajian di wilayah Pulau Aru dan Yamdena bagian dari Blok Masela tersebut tidak ada perkembangan.

Inpex memiliki tanggungan untuk melakukan kajian pre-FEED kapasitas 9,5 mtpa ditambah dengan 150 MMSCFD serta 7,5 mtpa ditambah 474 MMSCFD. Pre-Feed itu terserah Inpex.

Berdasarkan informasi dari Kementerian ESDM, pada awal tahun 2017, perkembangannya masih menunggu surat dari Inpex mengenai “fiscal terms” yang ditawarkan Pemerintah untuk mengembangkan Lapangan Abadi, Blok Masela.

Pemerintah memutuskan penambahan masa operasi Blok Masela selama tujuh tahun. Ini lebih rendah dari permintaan Inpex selaku operator Blok Masala yaitu 10 tahun.

Selain itu, telah diputuskan pula kapasitas produksi gas alam cair (LNG) tetap 7,5 metrik ton per tahun. Sementara untuk gas bumi sebesar 47 4 juta kaki kubik per hari. Dalam usulannya, Inpex meminta agar kapasitas kilang ditambah dari 7,5 juta metrik ton per tahun menjadi 9,5 juta metrik ton per tahun.

Mengenai rasio pengembalian investasi “internal rate of return” (IRR) proyek, Pemerintah tidak pernah menetapkan harus di angka 15 persen dan sebagainya. Hal terpenting adalah masih dalam batas kewajaran. Batas kewajaran IRR Blok Masela adalah kurang dari 15 persen. 

Investor Daily, Page-9, Thursday, May, 4, 2017

Chevron Commitment Apply the Latest Technology

93 years Chevron, one of the world's leading integrated energy companies, operates in Indonesia. For almost a century Chevron has been a key partner in meeting Indonesia's energy needs, driving economic growth and supporting community development in the region of operations in the country. This is evidenced by Chevron's ability to become the largest national crude producer.

We produce more than 12 billion barrels of oil from field oil fields in Riau, Sumatra and offshore fields in East Kalimantan to meet energy demand for Indonesia's economic growth, said Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs of Chevron IndoAsia Business Unit , Parent company of PT Chevron Pacific Indonesia.

In operating the oil and gas blocks, Chevron and its joint venture partners work under the supervision and control of SKK Migas under a Production Sharing Contract (PSC). According to Yanto, Chevron is committed to developing the latest technology and leading in oil and gas development.

Moreover Chevron is a pioneer in the application of advanced technology Enhanced Oil Recovery (EOR) the world's largest surfactant in the field of Minas and Duri in Riau. EOR surfactants are carried out by injection of surfactants in oil wells. This technology is used to increase oil production in the field because the oil reserves in the old oil and gas fields continue to decline.

The EOR technology process is very complex and is usually applied when the field has entered the final stage of primary and secondary oil acquisition. This technology can be described as a method for extracting hydrocarbons from reservoirs containing large amounts of residual oil that can no longer be produced in primary and secondary ways. However, each field has its own uniqueness and characteristics.

This led to differences in EOR technology being applied to provide a challenge and opportunities for Chevron professionals to learn and apply diverse technologies. In the application of EOR technology, there are several types of injectables or methods that can be used, namely water injection for Minas Field and steam injections for Duri Field.

     Because the oil in Duri Field is heavy crude oil with a high degree of viscosity. Chevron has always made sure that the EOR technology implementation plan is executed carefully considering the enormous scale of the field.

Use of the latest technology is also done by Chevron Indonesia Company Ltd., a subsidiary of Chevron IndoAsia Bussiness Unit, in the development of Indonesia Deepwater Development (IDD) Chevron project. For example Bangka Field project in East Kalimantan.

This represents the application of Chevron's latest technology in the first phase of the IDD project to support the government in achieving the national oil lifting target. Bangka Field began producing its first natural gas at the end of August 2016.

The first gas of the Bangka Project is an important achievement to continue supporting the government in delivering energy safely, efficiently and reliably for Indonesia, said Managing Director of Chevron IndoAsia Business Unit Chuck Taylor.

According to Taylor, the project demonstrates Chevron's commitment to bringing global capabilities and cutting-edge technology to Indonesia and applying best practices and expertise from marine development projects within companies around the world. The Bangka project has an installed gas capacity of 110 million cubic feet per day (MMSCFD) and 4,000 barrels of condensate per day. Chevron holds a 62% stake in Project Bangka with another partner, ENI 20% and Tip Top remaining at 18%.

Arcandra Tahar, Deputy Minister of Energy and Mineral Resources, acknowledged the use of new technology to increase oil and gas production is necessary because the characteristics of existing oil and gas fields in Indonesia have changed. The era of oil and gas fields that have large reserves is gone. 

     Findings are also nothing great. If you continue to rely on old technology, then the production has decreased will decrease Let's try new technology. If you just say the new technology is risky and does not try the risky thing, when will we get something better, says Arcandra.

IN INDONESIAN

Komitmen Chevron Terapkan Teknologi Termutakhir

Sudah 93 tahun Chevron, salah satu perusahaan energi terintegrasi terdepan di dunia, beroperasi di Indonesia. Selama hampir satu abad Chevron menjadi mitra utama dalam memenuhi kebutuhan energi Indonesia, menggerakkan pertumbuhan ekonomi dan mendukung pengembangan masyarakat di wilayah operasi di Tanah Air. Ini dibuktikan dengan kemampuan Chevron menjadi produsen minyak mentah terbesar nasional.

Kami memproduksi lebih dari 12 miliar barel minyak dari lapangan minyak darat di Riau, Sumatera dan lapangan lepas pantai di Kalimantan Timur untuk memenuhi kebutuhan energi untuk pertumbuhan ekonomi Indonesia, kata Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs Chevron IndoAsia Business Unit, induk usaha PT Chevron Pacific Indonesia. 

Dalam mengoperasikan blok migas, Chevron bersama para mitra joint venture bekerja di bawah pengawasan dan pengendalian SKK Migas berdasarkan kontrak bagi hasil atau Production Sharing Contract (PSC). Menurut Yanto, Chevron berkomitmen mengembangkan teknologi terkini dan terdepan dalam pengembangan migas. 

Apalagi Chevron adalah pionir dalam penerapan teknologi lanjutan Enhanced Oil Recovery (EOR) surfaktan terbesar di dunia di lapangan Minas dan Duri di Riau. EOR surfaktan dilakukan dengan melakukan injeksi surfaktan pada sumur-sumur minyak. Teknologi ini digunakan untuk meningkatkan produksi minyak di lapangan tersebut karena cadangan minyak bumi pada lapangan migas tua terus menurun.

Proses teknologi EOR sangat rumit dan biasanya diterapkan ketika Iapangan telah memasuki tahap akhir perolehan minyak primer dan sekunder. Teknologi ini dapat dijelaskan sebagai metode untuk mengekstrak hidrokarbon dari reservoar yang mengandung sejumlah besar sisa minyak yang tidak bisa lagi diproduksi dengan cara primer dan sekunder. Akan tetapi, tiap Iapangan memiliki keunikan dan karakteristik tersendiri.

Ini menyebabkan perbedaan teknologi EOR yang diterapkan sehingga memberi tantangan tersendiri dan kesempatan bagi para profesional Chevron mempelajari dan menerapkan teknologi yang beragam. Pada penerapan teknologi EOR, ada beberapa jenis injeksi atau metode yang dapat digunakan, yaitu injeksi air untuk Lapangan Minas dan injeksi uap untuk Lapangan Duri. 

     Pasalnya, minyak di Lapangan Duri merupakan minyak mentah berat dengan tingkat kekentalan yang tinggi. Chevron selalu memastikan bahwa rencana penerapan teknologi EOR dijalankan secara teliti mengingat skala lapangan yang sangat besar.

Penggunaan teknologi termutakhir juga dilakukan oleh Chevron Indonesia Company Ltd, anak usaha Chevron IndoAsia Bussiness Unit, dalam pengembangan proyek Indonesia Deepwater Development (IDD) Chevron. Contohnya proyek Lapangan Bangka di Kalimantan Timur. 

Ini merupakan representasi penerapan teknologi terkini Chevron pada tahap pertama proyek IDD demi mendukung pemerintah dalam mencapai target lifting migas nasional. Lapangan Bangka mulai memproduksi gas alam pertamanya pada akhir Agustus 2016.

Gas pertama Proyek Bangka ini merupakan pencapaian penting untuk terus mendukung pemerintah menghasilkan energi secara selamat, efisien, dan handal bagi Indonesia, kata Managing Director Chevron IndoAsia Business Unit Chuck Taylor.

Menurut Taylor proyek ini menunjukkan komitmen Chevron membawa kemampuan global dan teknologi terkini bagi Indonesia serta menerapkan praktik terbaik dan keahlian dari proyek-proyek pengembangan laut dalam perusahaan di seluruh dunia. Proyek Bangka memiliki kapasitas terpasang gas sebesar 110 juta kaki kubik per hari (MMSCFD) dan 4.000 barel kondensat per hari.  Chevron memegang 62% saham kepemilikan di Proyek Bangka dengan mitra lainnya, yaitu ENI 20% dan sisanya Tip Top sebesar 18%. 

Arcandra Tahar, Wakil Menteri Energi dan Sumber Daya Mineral, mengakui penggunaan teknologi baru untuk meningkatkan produksi migas diperlukan karena karakteristik lapangan migas yang ada di Indonesia sudah berubah. Era lapangan minyak dan gas yang memiliki cadangan besar itu sudah tidak ada. 

   Temuan juga tidak ada yang besar. Jika terus mengandalkan teknologi lama, maka produksi yang sudah menurun akan semakin menurun. Mari kita coba teknologi baru. Kalau hanya bilang teknologi baru riskan dan tidak mencoba hal yang penuh risiko,  kapan kita akan mendapat sesuatu lebih baik, kata Arcandra.

Investor Daily, Page-9, Thursday, May, 4, 2017

Gas Transportation Fee Must be Competitive

Energy and Mineral Resources Minister (ESDM) Ignatius Jonan confirmed that the toll fee set for gas consumers must be competitive. Because the cost of this transport will affect the price of gas that affects the competitiveness of national industries. Jonan said the government will study how much investment the construction of a gas distribution pipeline that makes sense.

It will gather all relevant stakeholders, such as PT Pertamina Gas, PT PGN Tbk, and large private companies to discuss this. So it can be obtained a fair fee or toll fee for all parties. Because all this time the owner of the pipe company divides this investment expense with the volume of gas flowed through the pipes. If the gas volume is flowing a bit, then the toll fee drawn can be quite high. It wants the toll amount to the same regardless of the volume of gas that flows.

He added, to reduce the national gas price, it has encouraged oil and gas producers to do the efficiency. But if on the midtsream side does not do the same and set a high toll fee, then the national gas price can not be as low as expected.

In fact, the biggest buyer of national gas production is PT PLN. Thus, the price of gas will greatly affect the price of electricity. If electricity is not competitive, then the whole industry is not competitive as well.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, I Gusti Nyoman Wiratmaja, added that the toll fee for distribution pipeline is determined based on business negotiations between the owners of pipelines and gas buyers. The government through the Oil and Gas Downstream Regulatory Agency (BPH Migas) only regulates the toll fee of the transmission pipeline.

So we will issue a ministerial regulation stipulating how much the cost of distribution (toll fee) and trading margin, so there is justice. To set this toll fee, it will set the rate of return on capital (internal rate of return / IRR) gas distribution pipeline project.

Later, the government will set IRR so much, for all pipe developers, so that the cost of transporting so much. In the draft ministerial regulation, the government sets a tariff of gas (toll fee), which is the sum of asset depreciation, operating and maintenance costs, taxes, dues, and IRR then divided by volume.

In this formula, the IRR will also be limited to 11% with age to the economy set by 15 years. Furthermore, the volume of gas used in accordance with the allocation or 60% of the initial design capacity of the larger distribution pipeline.

As for the commercial cost formula set at less than or equal to 7% of the price of upstream gas. This commercial cost includes commodity management costs, marketing and customer management costs, risk costs, and trade margins.

When gas distribution through two commercial entities facilitates touching the final consumer, the commercial cost of 7% is shared between the two business entities.

President Director of Pertagas Toto Nugroho admitted that he did not mind the arrangement of toll fee. It only requested that the company still obtain a reasonable rate of return for investments that have been issued, which is about 11-12%. If during that (IRR enough) exists, then players will be interested in building a pipe. The government expects that after the arrangement of toll fee, gas price can be more affordable so that the utilization of domestic gas will be more optimal.

Wiratmaja said, this increase in consumption has been taken into account in the preparation of the 2016-2035 Gas Balance. In this balance sheet has been taken into account the increase in consumption, so there is potential and comitted demand.

In the 2016-2035 Gas Balance, committed demand increased from the current 923 million standard cubic feet per day / mmscfd to 1,427 mmscfd next year, 2,289 mmscfd in 2019, and reached 5,333 mmscfd by 2035. While potential demand increased from 357 mmscfd 2017, 696 mmscfd by 2018, 1,436 mmscfd by 2019, and touching 3,231 mmscfd by 2035.

With this commitment and potential demand, Indonesia needs to start importing gas in 2019. At that time, the total needs, including those with contracted demand, reached 9,323 mmscfd. Meanwhile, the total national gas supply is only 7,651 mmscfd. So the required import of 1,672 mmscfd.

Thus, Indonesia needs to expand its gas infrastructure as gas needs continue to increase every year. The government wants all the islands to connect gas pipelines, mainly Sumatra, Java, Bali and Kalimantan. To that end, the government needs the participation of private companies to increase the national gas infrastructure.

IN INDONESIAN

Ongkos Angkut Gas Harus Kompetitif    

Menteri Energi dan Sumber Maya Mineral (ESDM) Ignasius Jonan menegaskan ongkos angkut (toll fee) yang ditetapkan bagi konsumen gas harus kompetitif. Pasalnya, ongkos angkut ini akan berpengaruh pada harga gas yang berdampak pada daya saing lndustri nasional. Jonan menuturkan pemerintah akan mengkaji berapa investasi pembangunan pipa distribusi gas yang masuk akal.

Pihaknya akan mengumpulkan seluruh stakeholder terkait, seperti PT Pertamina Gas, PT PGN Tbk, dan perusahaan swasta besar untuk membahas hal ini. Sehingga dapat diperoleh ongkos angkut atau toll fee yang adil bagi semua pihak. Karena selama ini perusahaan pemilik pipa membagi beban investasi ini dengan volume gas yang dialirkan melalui pipanya. Jika volume gas yang mengalir sedikit, maka toll fee yang ditarik bisa cukup tinggi. Pihaknya menginginkan besaran toll ke yang sama berapapun volume gas yang dialirkan.

Dia menambahkan, untuk menekan harga gas nasional, pihaknya sudah mendorong produsen migas untuk melakukan efisiensi. Namun jika di sisi midtsream tidak melakukan hal yang sama dan menetapkan toll fee tinggi, maka harga gas nasional tidak bisa serendah yang diharapkan.

Padahal, pembeli terbesar produksi gas nasional adalah PT PLN. Sehingga, harga gas akan sangat mempengaruhi harga listrik. Kalau listrik harganya tidak kompetitif, maka seluruh industri tidak kompetitif juga. 

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM I Gusti Nyoman Wiratmaja menambahkan, toll fee untuk pipa distribusi selama ini memang ditentukan berdasarkan negosiasi bisnis antara pemilik pipa dan pembeli gas. Pemerintah melalui Badan Pengatur Hilir Minyak dan Gas (BPH Migas), hanya mengatur toll fee pipa transmisi.

Maka kami akan menerbitkan satu peraturan menteri yang menetapkan berapa biaya distribusi (toll fee) dan margin trading, supaya ada keadilan. Untuk menetapkan toll fee ini, pihaknya akan mengatur tingkat pengembalian modal (internal rate of return/ IRR) proyek pipa gas distribusi. 

Nantinya, pemerintah akan menetapkan IRR sekian, untuk semua pengembang pipa, sehingga diperoleh ongkos angkut sekian. Dalam draf peraturan menteri, pemerintah menetapkan tarif penyaluran gas (toll fee), yakni hasil penjumlahan depresiasi aset, biaya operasi dan pemeliharaan, pajak, iuran, serta IRR kemudian dibagi volume. 

Dalam formula ini, IRR nantinya juga akan dibatasi 11% dengan umur ke ekonomian ditetapkan 15 tahun. Selanjutnya, volume gas yang digunakan sesuai dengan alokasi atau 60% dari kapasitas desain awal pipa distribusi yang lebih besar.

Sementara untuk formula biaya niaga ditetapkan kurang dari atau sama dengan 7% dari harga gas hulu. Biaya niaga ini telah mencakup biaya pengelolaan komoditas, biaya pemasaran dan pengelolaan pelanggan, biaya risiko, dan marjin niaga. 

Bila penyaluran gas melalui dua badan usaha niaga berfasilitas untuk menyentuh konsumen akhir, biaya niaga sebesar 7% dibagi ke dua badan usaha tersebut.

Presiden Direktur Pertagas Toto Nugroho mengaku tidak keberatan adanya pengaturan toll fee. Pihaknya hanya meminta agar perusahaan tetap memperoleh tingkat pengembalian yang wajar untuk investasi yang telah dikeluarkan, yakni sekitar 11-12%. Kalau selama itu (IRR cukup) ada, maka pemain akan tertarik membangun pipa. Pemerintah mengharapkan setelah ada pengaturan toll fee, harga gas bisa semakin terjangkau sehingga pemanfaatan gas dalam negeri akan semakin optimal. 

Wiratmaja mengungkapkan, peningkatan konsumsi ini sudah diperhitungkan dalam penyusunan Neraca Gas 2016-2035. Di neraca ini sudah diperhitungkan kenaikan konsumsi, makanya ada potential dan comitted demand.

Dalam Neraca Gas 2016-2035, committed demand tercatat meningkat dari saat ini 923 million standard cubic feet per day/mmscfd menjadi 1.427 mmscfd pada tahun depan, 2.289 mmscfd pada 2019, dan mencapai 5.333 mmscfd pada 2035. Sementara potential demand naik dari 357 mmscfd pada 2017, 696 mmscfd pada 2018, 1,436 mmscfd pada 2019, dan menyentuh 3.231 mmscfd pada 2035.

Dengan adanya committed dan potential demand ini, maka Indonesia perlu mulai impor gas pada 2019. Pada saat itu, total kebutuhan termasuk dengan yang contracted demand, mencapai 9.323 mmscfd. Sementara total pasokan gas nasional hanya sebesar 7.651 mmscfd. Sehingga diperlukan impor sebesar 1.672 mmscfd. 

Sehingga, Indonesia perlu memperbanyak infrastruktus gasnya mengingat kebutuhan gas terus meningkat setiap tahunnya. Pemerintah menginginkan agar seluruh pulau bisa terhubung pipa gas, utamanya Sumatera, Jawa, Bali, dan Kalimantan. Untuk itu, pemerintah membutuhkan partisipasi perusahaan swasta untuk menambah infrastruktur gas nasional.

Investor Daily, Page-9, Thursday, May, 4, 2017

Jonan Threatens Inpex Kick from Masela Block

Inpex acknowledged that it has not held a pre-feed of the Masela Block to date. Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan growled with the attitude of Inpex Corporation, operator of Abadi Field, Masela Block, Arafuru Sea, Maluku. The reason, the Japanese company has been six months this has not complied with the order of Jonan to make design two scenarios of gas distribution and two scenarios for the location of the refinery.

Jonan even threatened to cancel the participation rights of Inpex Corp. in the Masela Block, "If not prefront end engineering design (feed) or defining the project I just cancel Inpex.One long time Jonan said.

If the pre feed is over, the feed document becomes the benchmark in the project's work by the operator. Jonan explained, already six months he led the Ministry of Energy and Mineral Resources, but Inpex has not done pre-feed the Masela Block. For that Jonan give ultimatum Inpex to quickly do pre-feed. I lost patience.

According to the former Minister of Transportation, with the pre-feed the government could decide on gas production allocation from Masela's total gas production of 10.5 million tons per annum (MTPA). With prefeed also the location of the construction of liquefied natural gas (LNG) refineries can be determined.

There are two scenarios requested, namely Inpex must prefeed to capacity of 9.5 million tons per year plus 150 mmscfd and 7.5 MTPA pipe gas plus 474 mmscfd of pipe gas. Inpex must also pre-feed for two locations. The government decided that Inpex prefeed on Aru Island and Yamdena Island.

While making pre-feeds and so on, they should also survey the market. Approximately what the Ministry of Industry real estate demand does not, only determine the total production of gas pipelines, what is not gas pipeline. But the total has agreed 10.5 MTPA, just divided only.

While Inpex casually responded to the threat of Minister of Energy and Mineral Resources. Senior Manager of Communication and Relations Inpex, Usman Slamet explains, Inpex did not do prefeed. Because Inpex and the government still need to discuss related projects Masela Block. We are still communicating with the government. There are still some things that still need to be discussed with the government.

Meanwhile, Komaidi Notonegoro, Executive Director of ReforMiner Institute said the government can not unilaterally cancel contracts with Inpex. This is if a signed contract uses a production sharing contract (PSC) sharing scheme. If it is still a PSC or a contract, it is difficult. They can be arbitration, considering the position of the parties in the parallel contract.

But if the mechanism between the government and Inpex is a scheme using permits, it is easier. The government may revoke the permit. Komaidi also said that it is natural for the government to give Inpex ultimatum, because the Masela project is also a national interest. But until the cancellation, I think it is not simple. I see, this is more a message for Inpex to be more serious and committed to what has been agreed by both parties.

However, if the government forces to withdraw Inpex from the Masela Block project, then the main impact is that the project will retreat further. While finding a substitute for Inpex in the Masela Block is not easy. Finding a replacement is certainly not simple and takes time.

From the positive glasses if Inpex is kicked out of the Masela project, there will be an opportunity for the national company to replace Inpex. That way added value can be more enjoyed by the Indonesian side. Of course the added value will be more to enjoy Indonesia. But if the successor is a non national company, Still needs to be seen further.

IN INDONESIAN

Jonan Mengancam Tendang Inpex dari Blok Masela

Inpex mengakui belum menggelar pre-feed Blok Masela hingga saat ini. Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan geram dengan sikap Inpex Corporation, operator Lapangan Abadi, Blok Masela, Laut Arafuru, Maluku. Pasalnya, perusahaan asal Jepang itu sudah enam bulan ini belum menuruti perintah Jonan untuk membuat desain dua skenario penyaluran gas dan dua skenario untuk lokasi kilang darat.

Jonan bahkan mengancam akan membatalkan hak partisipasi Inpex Corp di Blok Masela, "Kalau belum prefront end engineering design (feed) atau pendefinisian proyek saya batalkan saja Inpex. Terlalu Lama kata Jonan.

Jika pre feed usai, dokumen feed meniadi patokan dalam pengerjaan proyek oleh operator. Jonan menjelaskan, sudah enam bulan dirinya memimpin Kementerian ESDM, tapi Inpex belum juga melakukan pre feed Blok Masela. Untuk itu Jonan memberi ultimatum Inpex agar secepatnya melakukan pre-feed. Saya hilang kesabaran.

Menurut mantan Menteri Perhubungan itu, dengan pre feed tersebut pemerintah bisa memutuskan alokasi produksi gas dari total produksi gas Masela sebesar 10,5 million ton per annum (MTPA). Dengan prefeed pula lokasi pembangunan kilang liquefied natural gas (LNG) bisa ditentukan.

Ada dua skenario yang diminta, yakni Inpex harus melakukan prefeed untuk kapasitas 9,5 juta ton per tahun plus gas pipa 150 mmscfd dan 7,5 MTPA plus gas pipa 474 mmscfd. Inpex juga harus melakukan pre-feed untuk dua lokasi. Pemerintah memutuskan agar Inpex melakukan prefeed di Pulau Aru dan Pulau Yamdena. 

Sambil membuat pre-feed dan sebagainya, mereka juga harus survei pasar.  Kira-kira permintaan Kementerian Perindustrian real apa tidak, hanya menentukan total produksi gas pipa, berapa yang bukan gas pipa. Tapi total sudah sepakat 10,5 MTPA, hanya dibagi saja.

Sedangkan Inpex santai menanggapi ancaman Menteri ESDM. Senior Manager Communication and Relation Inpex, Usman Slamet menjelaskan, Inpex memang belum melakukan prefeed. Pasalnya Inpex dan pemerintah masih perlu berdiskusi terkait proyek Blok Masela. Kami masih terus berkomunikasi dengan pemerintah. Masih ada beberapa hal yang masih perlu di bicarakan dengan pemerintah.

Sementara, Komaidi Notonegoro, Direktur Eksekutif ReforMiner Institute mengatakan pemerintah tidak bisa membatalkan secara sepihak kontrak dengan Inpex. Ini jika kontrak yang sudah ditandatangani memakai skema kontrak bagi hasil alias production sharing contract (PSC). Jika masih PSC atau kontrak, sulit. Mereka bisa arbitrase, mengingat kedudukan para pihak dalam kontrak  sejajar.

Namun jika mekanisme antara pemerintah dan Inpex adalah skema menggunakan izin, lebih mudah. Bisa saja pemerintah mencabut izin tersebut. Komaidi juga bilang, wajar jika pemerintah meng ultimatum Inpex, karena proyek Masela juga merupakan  kepentingan nasional. Namun sampai pembatalan, saya kira tidak sederhana. Saya melihat, ini lebih sebagai pesan agar Inpex lebih serius dan komitmen dengan apa yang telah disepakati kedua belah pihak.

Namun jika sampai pemerintah memaksa mundur Inpex dari proyek Blok Masela, maka dampak utamanya  adalah proyek tersebut akan semakin mundur. Sementara mencari pengganti Inpex di Blok Masela tidaklah mudah. Mencari penggantinya tentu tidak sederhana dan butuh waktu.

Dari kacamata positif jika Inpex di tendang dari proyek Masela, akan ada kesempatan bagi perusahaan nasional untuk menggantikan Inpex. Dengan begitu nilai tambah bisa lebih banyak dinikmati pihak Indonesia. Tentu nilai tambahnya akan lebih banyak untuk di nikmati Indonesia. Namun jika penggantinya non perusahaan nasional ,

masih perlu dilihat lebih jauh lagi.

Kontan, Page-14, Thursday, May, 4, 2017

Minister of EMR Threatens to Break the Inpex Contract

Related to the Masela Block Development Plan

The Government on March 23, 2016 changed the pattern of Masela Block development from offshore to onshore. Since then, the construction of the liquefied natural gas refinery has ceased.

ESDM Minister Ignatius Jonan's patience was exhausted. The former minister of transportation said that Inpex Corporation is not serious about project planning because there was no meaningful development during the six months during which he served as minister. I can not wait.

The ESDM Ministry is still awaiting the completion of pre-FEED studies (front end engineering design). Since the beginning February, Inpex was asked to conduct a study at two locations of the project plan, namely Aru Island and Landena Island. Inpex has also been asked to make FEED for a refinery with a capacity of 9.5 million tons per year (mtpa) plus 150 million standard cubic feet per day (mmscfd) and a 7.5 mtpa refinery plus 474 mmscfd. Pre-FEED only. From there, it will decide the location and capacity of the refinery to be developed.

Indonesia acknowledges that pre-FEED production is fully submitted to Inpex. Not only approved the government's request, the Japanese company even agreed to review the two options before making pre-FEED.

However, until now, studies related to the location and capacity options of the refinery are also completed. Therefore, pre-FEED settlement is also pending. Not started immediately. If it's too long I cancel.

According to the Surabaya-born man, the two studies will be the benchmark for seeking gas bids Production from the Masela Block. Especially the demand from the Ministry of Industry. The two options also relate to data on total production of both piped and non-piped gas.

However, in general the production capacity has been agreed upon 10.5 mtpa. If the pre-FEED is too long, I can cancel the management rights of the MASSEL block. Until I lost patience.

Intrad Communication and Relation Manager Usman Slamet responded to Jonan's threat casually. Inpex affirmed its commitment to develop the rich field of natural gas. There is still something to talk about with the government.

IN INDONESIAN

Menteri ESDM Ancam Putus Kontrak Inpex

Terkait Rencana Pengembangan Blok Masela

Pemerintah pada 23 Maret 2016 mengubah pola pengembangan Blok Masela dari offshore menjadi onshore. Sejak saat itu, proyek pembangunan kilang gas alam cair tersebut berhenti.

Kesabaran Menteri ESDM Ignasius Jonan pun habis. Mantan menteri perhubungan itu menilai Inpex Corporation  tidak serius menggarap perencanaan proyek karena tidak ada perkembangan berarti selama enam bulan selama dirinya menjabat menteri. Saya sampai tidak sabar.

Kementerian ESDM masih menunggu penyelesaian kajian pra-FEED (front end engineering design). Sejak awal Februari, Inpex diminta melakukan kajian di dua lokasi rencana proyek, yakni Pulau Aru dan Pulau Landena. Inpex juga telah diminta membuat FEED untuk kilang berkapasitas 9,5 juta ton per tahun (mtpa) plus 150 juta standar kaki kubik per hari (mmscfd) serta kilang berkapasitas 7,5 mtpa plus 474 mmscfd. Pra-FEED saja. Dari situ, akan diputuskan lokasi dan kapasitas kilang yang akan dikembangkan.

Indonesia itu mengakui, pembuatan pra-FEED memang sepenuhnya diserahkan pada Inpex. Tidak hanya menyetujui permintaan pemerintah, perusahaan asal Jepang itu bahkan juga menyanggupi mengkaji dua opsi tersebut sebelum membuat pra-FEED.

Namun, hingga kini, kajian terkait dengan opsi lokasi dan kapasitas kilang tersebut behun juga selesai. Karena itu, penyelesaian pra-FEED juga tertunda. Tidak segera dimulai. Kalau terlalu lama nanti saya batalkan.

Menurut pria kelahiran Surabaya tersebut, dua kajian itu akan menjadi patokan untuk mencari penawaran gas  produksi dari Blok Masela. Terutama permintaan dari Kementerian Perindustrian. Dua opsi tersebut juga berkaitan dengan data mengenai total produksi dari gas pipa maupun non gas pipa. 

Meski demikian, secara umum kapasitas produksinya sudah disepakati 10,5 mtpa. Kalau pra-FEED terlalu lama,  saya cabut hak pengelolaan blokMasela. Sampai saya kehilangan kesabaran.

Senior Manager Communication and Relation Inpex Corporation Usman Slamet menanggapi ancaman Jonan  dengan santai. Inpex menegaskan komitmennya untuk mengembangkan lapangan kaya gas bumi itu. Masih ada yang perlu dibicarakan dengan pemerintah.

Jawa Pos, Page-6, Thursday, May, 4, 2017