PGN Immediately Builds Duri-Dumai Transmission Pipe Project

PT Perusahaan Gas Negara (PGN) Tbk will immediately realize the construction of the Duri-Dumai gas transmission pipeline in Riau Province along the 67 kilometers. According to the plan, the groundbreaking process will begin next month.

"Beginning in November PGN commenced the construction of a natural gas transmission pipeline project from Duri to Dumai along 67 km. Construction of this project is estimated to take 12 months. Our target is October 1, 2018 natural gas is already flowing to PGN customers in Dumai, "PGN Commercial Director Danny Praditya said in an official statement.

Construction of this transmission pipe can be implemented immediately because the land acquisition process is almost complete. Moreover, the construction of the Duri-Dumai pipeline will use the Pekanbaru-Dumai toll road area.

"We synergize with PT Hutama Karya as the builder of the toll road," he added.

Danny said, other than that the licensing business was no problem. PGN already pocketed all necessary permits.

"We have obtained the principle permit from the regional government and environmental permits and other licenses," he said.

The Duri-Dumai transmission gas transmission pipeline project is a BUMN cooperation between PGN and PT Pertamina through its subsidiary, PT Pertamina Gas. This cooperation refers to Minister of Energy and Mineral Resources Decree No. 4975 K / 12 / MEM / 2016.

In June both SOEs have signed a head of agreement (HoA). PGN and Pertamina are planning to build a transmission pipeline of 67 kilometers. The investment will be US $ 76 million or equivalent to Rp 1.02 trillion.

Pipeline development funds are sourced from internal cash. In accordance with the ownership portion, PGN gets a 40% share on the project, while Pertamina is 60%.

The gas to be piped to the pipeline comes from Conoco Philips' Corridor Block in South Sumatra. There will be additional gas from Bentu Block operated by Energi Mega Persada (EMP). The total gas supply will flow about 200 million cubic feet per day.

IN INDONESIA
PGN Segera Bangun Proyek Pipa Transmisi Duri-Dumai  

PT Perusahaan Gas Negara (PGN) Tbk segera merealisasikan proyek pembangunan pipa transmisi gas bumi Duri-Dumai di Provinsi Riau sepanjang 67 kilometer. Menurut rencana, proses peletakan batu pertama (groundbreaking) akan dimulai pada bulan depan.

“Awal November PGN memulai pengerjaan proyek pipa transmisi gas bumi dari Duri ke Dumai sepanjang 67 km. Pembangunan proyek ini diperkirakan membutuhkan waktu 12 bulan. Target kami 1 Oktober 2018 gas bumi sudah mengalir ke pelanggan PGN di Dumai,” kata Direktur Komersial PGN Danny Praditya dalam keterangan resmi.

Pembangunan pipa transmisi ini bisa segera dilaksanakan karena proses pembebasan lahan sudah hampir selesai. Apalagi, pembangunan ruas pipa Duri-Dumai ini akan menggunakan lahan jalur tol Pekanbaru-Dumai. 

“Kami bersinergi dengan PT Hutama Karya sebagai pihak yang membangun tol tersebut,” imbuhnya.

Danny mengatakan, selain itu urusan perizinan pun sudah tidak ada masalah. PGN sudah mengantongi seluruh izin yang diperlukan. 

“Kami sudah mendapatkan izin prinsip dari pemerintah wilayah dan izin lingkungan dan perizinan lainnya,” ujarnya.

Proyek pembangunan pipa gas transmisi Duri-Dumai merupakan kerja sama BUMN antara PGN dan PT Pertamina melalui anak usahanya, PT Pertamina Gas. Kerja sama ini merujuk pada Keputusan Menteri ESDM Nomor 4975 K/12/MEM/2016.

Pada Juni lalu kedua BUMN itu telah menandatangani head of agreement (HoA). PGN dan Pertamina berencana membangun pipa transmisi sepanjang 67 kilometer. Investasi yang bakal dikeluarkan mencapai US$ 76 juta atau setara Rp 1,02 triliun. 

Dana pemhangunan pipa bersumber dari kas internal masing-masing. Sesuai porsi kepemilikan, PGN mendapat porsi 40% pada proyek tersebut, sedangkan Pertamina 60%.

Gas yang akan dialirkan ke pipa itu berasal dari Blok Corridor yang dikelola Conoco Philips di Sumatra Selatan. Akan ada tambahan gas dari Blok Bentu yang dioperasikan Energi Mega Persada (EMP). Total pasokan gas yang akan mengalir sekitar 200 juta kaki kubik per hari.

Koran Sindo, Page-17, Wednesday, October 25, 2017

Production West Madura Offshore Down

PT Pertamina Hulu Energi West Madura Offshore will innovate to reduce the company's oil production capacity. Understandably, the decline rate of Pertamina Hulu Energi West Madura Offshore has reached 50% per year.

As of October, Pertamina Hulu Energi West Madura Offshore oil production is only 7,500 barrels per day (bopd). This amount is lower than the target of this year's work plan is 7,611 bopd. During the year, the lowest production occurred in October.

Meanwhile, in January-February 2017, Pertamina Hulu Energi West Madura Offshore production is still 8,000 bopd and continues to decline to 7,800 bopd in September. The figure is expected to continue to decline until next year.

"We are targeting next year's 6,000 barrels per day but not yet submitted to SKK Migas," said Kuncoro Kukuh, General Menager Pertamina Hulu Energi West Madura Offshore in Bangkalan, Tuesday (24/10).

Kukuh said the production decline was due to several natural problems that occurred in the well. Therefore, the company is focusing on exploration wells to add reserves. Without exploration, Pertamina Hulu Energi West Madura Offshore will not survive because the production decline rate reaches 50%.

In addition to exploring, the company will continue to innovate to keep production up above target. One of them with enhanced oil recovery (EOR). Pertamina Hulu Energi West Madura Offshore gas production is still above the target work plan is 112.5 million cubic feet of gas per day (mmscfd). As of October, its production reaches 120 mmscfd.

IN INDONESIA

Produksi West Madura Offshore Turun

PT Pertamina Hulu Energi West Madura Offshore akan melakukan inovasi untuk menekan penurunan kapasitas produksi minyak perusahaan. Maklum, laju penurunan produksi (decline rate) Pertamina Hulu Energi West Madura Offshore sudah mencapai 50% per tahun.

Per Oktober, produksi minyak Pertamina Hulu Energi West Madura Offshore hanya 7.500 barel per hari (bopd). Jumlah ini lebih rendah dari target rencana kerja tahun ini yaitu 7.611 bopd. Sepanjang tahun ini, produksi terendah terjadi di bulan Oktober.

Sementara pada Januari-Februari 2017 lalu, produksi Pertamina Hulu Energi West Madura Offshore masih 8.000 bopd dan terus menurun hingga 7,800 bopd di September. Angka tersebut diperkirakan akan terus mengalami penurunan sampai tahun depan.

"Kami menargetkan produk tahun depan sekitar 6.000 barel per hari tetapi belum disampaikan ke SKK Migas, " kata Kuncoro Kukuh, General Menager Pertamina Hulu Energi West Madura Offshore di Bangkalan, Selasa (24/10).

Kukuh mengatakan, penurunan produksi itu karena beberapa masalah alamiah yang terjadi di sumur. Oleh karena itu, perusahaan ini fokus pada sumur eksplorasi untuk menambah cadangan. Tanpa ekplorasi, Pertamina Hulu Energi West Madura Offshore tidak akan bisa bertahan karena decline rate produksinya mencapai 50%.

Di samping melakukan eksplorasi, perusahaan ini akan terus berinovasi untuk menjaga produksi bisa tetap berada di atas target. Salah satunya dengan enhanced Oil recovery (EOR). Produksi gas Pertamina Hulu Energi West Madura Offshore masih di atas target rencana kerja yaitu 112,5 juta kaki kubik gas per hari (mmscfd). Per Oktober, produksinya mencapai 120 mmscfd.

Kontan, Page-14, Wednesday, October 25, 2017

Pertamina EP Pessimistic Production Target Achieved

Pertamina EP oil production until the end of the year is moving from 77,500-78,000 barrels per day

PT Pertamina EP is pessimistic that it can achieve its oil production target by the end of the year. The reason is that until the end of October 2017, the average production of this subsidiary of PT Pertamina in the upstream sector has not yet reached the target of Work Plan and Corporate Budget (RKAP) 2017 which is pegged more than 80,000 barrels per day (bopd).

Alfian Husein, Director of Exploration & Discovery of New Reserves Pertamina EP, said that the average oil production of Pertamina EP up to 24 October 2017 reaches about 77,500 bopd. He projected that oil production would not increase dramatically and would only move in the range of 77,000 bopd 78,000 bopd. With these achievements, Alfian pessimistic target that has been set can be achieved.

"The year-end target of RKAP is impossible to achieve, more than 80,000 bopd until the end of the year we stay at 77,500 bopd to 78,000 impd range," said Aliyan, Tuesday (24/10).

Just to note, Pertamina EP oil production is likely to decline. Citing data on May 29, 2017, Pertamina EP oil production could reach 85,000 barrels per day (bpd). The amount is about 94% of the established RKAP. Gas production rose Despite poor oil production, Pertamina EP gas production could still increase in October 2017.

At the end of May, Pertamina EP gas production reached 969 million cubic feet per day (mmscfd) or 93% of the target of 1,041 mmscfd.

"Pertamina EP's gas production is bigger and gas production this year is more than 1,000 mmscfd," Alfian said.

Despite the increase in natural gas production, Alfian projected that by the end of the year, Pertamina EP gas production by the end of this year will be around 5% lower compared to last year's achievement.

Pertamina EP has made various efforts to increase production, one of them by doing oil and gas production properly. The second step is to make an enhanced oil recovery (EOR) effort. Altian explained that the EOR effort in the field of Pertamina EP is still in its early stages. Some EOR projects are also still in the pilot project stage such as the Limau Block and Jirak Field located in South Sumatra.

"In Jirak also now need 3D surveys seismic, now in progress.When seismic survey there is a sacrifice, the field must stop a few hours every day so there is no noise, data interruption," said Alfian.

In addition to these two projects, Pertamina EP is preparing EOR for Klamono Field in Sorong, Papua. All EOR projects are still in Seismic 3D stage. With the steps taken, the company expects gas production to increase.

IN INDONESIA

Pertamina EP Pesimistis Target Produksi Tercapai

Produksi minyak Pertamina EP hingga akhir tahun bergerak 77.500-78.000 barel per hari

PT Pertamina EP mulai pesimistis dapat mencapai target produksi minyak di akhir tahun. Pasalnya, hingga akhir Oktober 2017 rata-rata produksi anak usaha PT Pertamina di bidang hulu ini masih belum mencapai target Rencana Kerja dan Anggaran Perusahaan (RKAP) 2017 yang dipatok lebih dari 80.000 barel per hari (bopd).

Alfian Husein, Direktur Eksplorasi & Penemuan Cadangan Baru Pertamina EP mengatakan, rata-rata produksi minyak Pertamina EP hingga 24 Oktober 2017 mencapai sekitar 77.500 bopd. Ia memproyeksikan, produksi minyak tidak akan meningkat drastis dan hanya akan bergerak di kisaran 77.000 bopd 78.000 bopd. Dengan pencapaian tersebut, Alfian pesimistis target yang telah ditetapkan dapat diraih. 

"Akhir tahun target RKAP mustahil bisa tercapai, lebih dari 80.000 bopd. Sampai akhir tahun kami stay di 77.500 bopd sampai 78.000 Impd range-nya," ujar Aliyan, Selasa (24/10).

Sekadar catatan, produksi minyak Pertamina EP memang cenderung turun. Mengutip data pada 29 Mei 2017, produksi minyak Pertamina EP dapat mencapai 85.000 barel per hari (bph). Jumlah itu sekitar 94% dari RKAP yang telah ditetapkan. Produksi gas naik Kendati produksi minyak kurang bagus, produksi gas Pertamina EP masih bisa meningkat pada Oktober 2017 ini. 

      Pada akhir Mei lalu, produksi gas Pertamina EP mencapai 969 juta kaki kubik per hari (mmscfd) atau 93% dari target sebesar 1.041 mmscfd.

"Produksi gas Pertamina EP lebih besar. Produksi gas rata-rata tahun ini lebih dari 1.000 mmscfd," ujar Alfian.

Walau menikmati kenaikan produksi gas bumi, Alfian memproyeksikan hingga akhir tahun produksi gas Pertamina EP di akhir tahun ini akan lebih rendah sekitar 5% dibandingkan pencapaian di akhir tahun lalu.

Pertamina EP pun telah melakukan berbagai upaya untuk meningkatkan produksi, salah satunya dengan melakukan produksi migas secara benar. Langkah kedua adalah dengan melakukan upaya enhanced oil recovery (EOR). 

     Altian menjelaskan saat ini upaya EOR di lapangan Pertamina EP masih dalam tahap awal. Beberapa proyek EOR juga masih dalam tahapan pilot project seperti di Blok Limau dan Lapangan Jirak yang berada di Sumatera Selatan.

"Di Jirak juga sekarang perlu surveiy seismic 3D, sekarang sedang berlangsung. Saat survey seismik ada pengorbanan, lapangan harus berhenti beberapa jam tiap hari supaya tidak ada noise, gangguan data," kata Alfian.

Selain dua proyek tersebut, Pertamina EP sedang mempersiapkan EOR untuk Lapangan Klamono di Sorong, Papua. Seluruh proyek EOR masih dalam tahapan 3D Seismik. Dengan langkah yang dilakukan, perusahaan ini berharap produksi gas bisa meningkat.

Kontan, Page-14, Wednesday, October 25, 2017

ESDM: Masela Not for Pertamina

The desire of PT Pertamina to participate in the management of the Masela Block in the Arafura Sea, Maluku does not get the government's blessing. Therefore, the Ministry of Energy and Mineral Resources (ESDM) will only offer oil and gas blocks (oil and gas) for the termination of production contract or termination to Pertamina. Until now, the Masela Block has not been produced yet.

"PoD (plan of development) does not exist yet, while the intended offer to Pertamina is Production and terminating working area of ​​oil and gas," explained Tunggal, Director of Upstream Development of ESDM Ministry at ESDM Ministry Office, Tuesday (24/10).

But that does not mean Pertamina has no chance at all. The Ministry of Energy and Mineral Resources invites government-owned companies to participate in the Masela Block through a business to business (B2B) scheme. Initially, Pertamina was interested in obtaining a 10% participatory interest (PI) participation in Masela Block. The lnpex Corporation becomes the operator of oil and gas blocks.

Masela Block - Owner By Inpex Corporation Japan

The term of the Japanese contract in Masela Block ends in 2018. Earlier, Minister of Energy and Mineral Resources Ignatius Jonan had secured the extension of the Masela Block management contract for up to 20 years after the Inpex contract expires next year. Not only the extension of the contract, the government also promised a period of compensation during the seven-year exploration.

The reason the government gives the compensation period because Inpex takes additional time. The longer term is the impact of changes in the scheme of liquefied natural gas (LNG) facilities built on the sea or offshore onshore or onshore.

"The minister's discretion, the legal basis is in article 39 of the Oil and Gas Law," said Susyanto, Secretary of Directorate General of Oil and Gas Ministry of ESDM.

Pri Agung Rakhmanto, Energy Researcher and Observer can tolerate the granting of such compensation period. However, this is not the case with the grant of contract extension guarantee to Inpex. Because, until now there is no gas buyer Masela Block.

"In the case of this Masela block, to my knowledge there has been no gas sale and purchase agreement at all," said Pri.

IN INDONESIA

ESDM: Masela Bukan untuk Pertamina

Keinginan PT Pertamina ikut berpartisipasi dalam pengelolaan Blok Masela di Laut Arafura, Maluku tidak mendapatkan restu pemerintah. Sebab, Kementerian Energi dan Sumber Daya Mineral (ESDM) hanya akan menyodorkan blok minyak dan gas (migas) habis masa kontrak yang sudah berproduksi atau terminasi kepada Pertamina. Sementara hingga kini Blok Masela belum berproduksi.

"PoD (plan of development) saja belum ada, sedangkan yang dimaksud ditawarkan ke Pertamina itu Wilayah Kerja migas yang produksi dan yang sudah terminasi," terang Tunggal, Direktur Pembinaan Hulu Kementerian ESDM di Kantor Kementerian ESDM, Selasa (24/10).

Namun bukan berarti Pertamina tidak memiliki peluang sedikitpun. Kementerian ESDM mempersilakan perusahaan milik pemerintah ini ikut berpartisipasi di Blok Masela melalui skema business to business (B2B). Semula, Pertamina berminat mendapatkan hak partisipasi alias participating interest (PI) 10% di Blok Masela. Adapun lnpex Corporation menjadi operator blok migasnya.

Masa kontrak persuhaan asal Jepang itu di Blok Masela berakhir pada tahun 2018. Sebelumnya, Menteri ESDM Ignasius Jonan sempat memberikan jaminan perpanjangan kontrak pengelolaan Blok Masela hingga 20 tahun pasca masa kontrak Inpex habis tahun depan. Tidak hanya perpanjangan kontrak, pemerintah juga menjanjikan masa kompensasi selama eksplorasi tujuh tahun.

Alasan pemerintah memberikan masa kompensasi karena Inpex membutuhkan waktu tambahan. Adapun waktu yang lebih panjang itu adalah dampak perubahan skema pembangunan fasilitas liquefied natural gas (LNG) yang semula di laut atau offshore menjadi di darat atau onshore. 

"Diskresi menteri itu, dasar hukumnya ada di pasal 39 Undang~Undang Migas," ujar Susyanto, Sekretaris Direktorat Jenderal Migas

Kementerian ESDM. 

Pri Agung Rakhmanto, Peneliti dan Pengamat Energi bisa memaklumi pemberian masa kompensasi tersebut. Namun tidak demikian dengan pemberian jaminan perpanjangan kontrak terhadap Inpex. Pasalnya, hingga kini belum ada pembeli gas Blok Masela. 

"Dalam kasus blok Masela ini, sepengetahuan saya belum ada perjanjian jual beli gas sama sekali," tegas Pri.

Kontan, Page-14, Wednesday, October 25, 2017

Pertamina EP Pessimistic Production Target Achieved

Pertamina EP oil production until the end of the year is moving from 77,500-78,000 barrels per day

PT Pertamina EP is pessimistic that it can achieve its oil production target by the end of the year. The reason is that until the end of October 2017, the average production of this subsidiary of PT Pertamina in the upstream sector has not yet reached the target of Work Plan and Corporate Budget (RKAP) 2017 which is pegged more than 80,000 barrels per day (bopd).

Alfian Husein, Director of Exploration & Discovery of New Reserves Pertamina EP, said that the average oil production of Pertamina EP up to 24 October 2017 reaches about 77,500 bopd. He projected that oil production would not increase dramatically and would only move in the range of 77,000 bopd 78,000 bopd. With these achievements, Alfian pessimistic target that has been set can be achieved.

"The year-end target of RKAP is impossible to achieve, more than 80,000 bopd until the end of the year we stay at 77,500 bopd to 78,000 impd range," said Aliyan, Tuesday (24/10).

Just to note, Pertamina EP oil production is likely to decline. Citing data on May 29, 2017, Pertamina EP oil production could reach 85,000 barrels per day (bpd). The amount is about 94% of the established RKAP. Gas production rose Despite poor oil production, Pertamina EP gas production could still increase in October 2017.

At the end of May, Pertamina EP gas production reached 969 million cubic feet per day (mmscfd) or 93% of the target of 1,041 mmscfd.

"Pertamina EP's gas production is bigger and gas production this year is more than 1,000 mmscfd," Alfian said.

Despite the increase in natural gas production, Alfian projected that by the end of the year, Pertamina EP gas production by the end of this year will be around 5% lower compared to last year's achievement.

Pertamina EP has made various efforts to increase production, one of them by doing oil and gas production properly. The second step is to make an enhanced oil recovery (EOR) effort. Altian explained that the EOR effort in the field of Pertamina EP is still in its early stages. Some EOR projects are also still in the pilot project stage such as the Limau Block and Jirak Field located in South Sumatra.

"In Jirak also now needs 3D surveys seismic, now in progress.When seismic surveys have sacrifices, the field has to stop several hours each day to avoid noise, data interruption," said Alfian.

In addition to these two projects, Pertamina EP is preparing EOR for Klamono Field in Sorong, Papua. All EOR projects are still in Seismic 3D stage. With the steps taken, the company expects gas production to increase.

IN INDONESIA

Pertamina EP Pesimistis Target Produksi Tercapai

Produksi minyak Pertamina EP hingga akhir tahun bergerak 77.500-78.000 barel per hari

PT Pertamina EP mulai pesimistis dapat mencapai target produksi minyak di akhir tahun. Pasalnya, hingga akhir Oktober 2017 rata-rata produksi anak usaha PT Pertamina di bidang hulu ini masih belum mencapai target Rencana Kerja dan Anggaran Perusahaan (RKAP) 2017 yang dipatok lebih dari 80.000 barel per hari (bopd).

Alfian Husein, Direktur Eksplorasi & Penemuan Cadangan Baru Pertamina EP mengatakan, rata-rata produksi minyak Pertamina EP hingga 24 Oktober 2017 mencapai sekitar 77.500 bopd. Ia memproyeksikan, produksi minyak tidak akan meningkat drastis dan hanya akan bergerak di kisaran 77.000 bopd 78.000 bopd. Dengan pencapaian tersebut, Alfian pesimistis target yang telah ditetapkan dapat diraih. 

"Akhir tahun target RKAP mustahil bisa tercapai, lebih dari 80.000 bopd. Sampai akhir tahun kami stay di 77.500 bopd sampai 78.000 Impd range-nya," ujar Aliyan, Selasa (24/10).

Sekadar catatan, produksi minyak Pertamina EP memang cenderung turun. Mengutip data pada 29 Mei 2017, produksi minyak Pertamina EP dapat mencapai 85.000 barel per hari (bph). Jumlah itu sekitar 94% dari RKAP yang telah ditetapkan. Produksi gas naik Kendati produksi minyak kurang bagus, produksi gas Pertamina EP masih bisa meningkat pada Oktober 2017 ini. 

      Pada akhir Mei lalu, produksi gas Pertamina EP mencapai 969 juta kaki kubik per hari (mmscfd) atau 93% dari target sebesar 1.041 mmscfd.

"Produksi gas Pertamina EP lebih besar. Produksi gas rata-rata tahun ini lebih dari 1.000 mmscfd," ujar Alfian.

Walau menikmati kenaikan produksi gas bumi, Alfian memproyeksikan hingga akhir tahun produksi gas Pertamina EP di akhir tahun ini akan lebih rendah sekitar 5% dibandingkan pencapaian di akhir tahun lalu.

Pertamina EP pun telah melakukan berbagai upaya untuk meningkatkan produksi, salah satunya dengan melakukan produksi migas secara benar. Langkah kedua adalah dengan melakukan upaya enhanced oil recovery (EOR). Altian menjelaskan saat ini upaya EOR di lapangan Pertamina EP masih dalam tahap awal. Beberapa proyek EOR juga masih dalam tahapan pilot project seperti di Blok Limau dan Lapangan Jirak yang berada di Sumatera Selatan.

"Di Jirak juga sekarang perlu surveiy seismic 3D, sekarang sedang berlangsung. Saat survey seismik ada pengorbanan, Iapangan harus berhenti beberapa jam tiap hari supaya tidak ada noise, gangguan data," kata Alfian.

Selain dua proyek tersebut, Pertamina EP sedang mempersiapkan EOR untuk Lapangan Klamono di Sorong, Papua. Seluruh proyek EOR masih dalam tahapan 3D Seismik. Dengan langkah yang dilakukan, perusahaan ini berharap produksi gas bisa meningkat.

Kontan, Page-14, Wednesday, October 25, 2017

Construction of Duri-Dumai Started November

PT Perusahaan Gas Negara Tbk. will begin construction of the Duri-Dumai transmission pipeline in Riau Province in November 2017. The 67 km gas pipeline project is jointly developed by PGN and PT Pertamina Gas, a subsidiary of PT Pertamina. Construction of Duri-Dumai transmission pipeline has been assigned through Minister of Energy and Mineral Resources Decree No. 4975 K / 12 / MEM / 2016.

PGN Commercial Director Danny Praditya said that the physical construction of the pipeline takes about 1 year. That is, on October 1, 2018 Surely, the gas pipeline has been built in accordance with the contract of gas distribution from the Block Corridor (ConocoPhillips Grissik Limited) and Block Bentu (Energi Mega Persada).

"In early November PGN commenced construction of a natural gas transmission pipeline project from Duri to Dumai for 67 years. Physical development, can start because there is no more land acquisition problem. The reason is that there is a segment that will use the land of the toll road (right of way) of Pekanbaru-Dumai segment which is done by PT Hutama Karya. Thus, land acquisition becomes more minimal.

According to him, PGN has completed the licensing starting from the principle permit to the environmental permit so that the physical construction can be started.

 "We have obtained the principle permit from the regional government and environmental permit," he said.

PGN and Pertaagas will cost US $ 76 million or equivalent to Rp 1.02 trillion (Rp 13,500 per US $). Development fund of pipes is sourced and internal cash of each company.

PGN and Pertagas will form a joint venture. PGN holds 40% ownership, while Pertagas is 60%. The total gas supply that will flow into the transmission pipeline is about 200 million cubic feet per day (MMscfd).

The gas will be channeled to meet the needs of industries in Riau, port requirements, petrochemical industry, and operational needs of Pertamina's Dumai Plant.

"In principle on the PGN side is ready, just waiting for the readiness of the partners," he said.

Not only in Dumai, PGN is currently developing West Natuna Transmissi on System (WNTS) natural gas transmission pipeline infrastructure to Pemping Island, Riau Islands Province which is a government assignment project.

PGN also develops natural gas pipeline in Muara Karang-Muara Bekasi along 42 km. In addition, the company builds a natural gas distribution pipeline network in Pasuruan, Mojokerto, East Java.

Previously, PGN Jobi President Director Triananda Hasjim said that the formation of a joint venture will be conducted simultaneously with the pipeline installation process. The joint venture will be a gas carrier in the pipeline.

"Maybe the JV [joint venture] will be parallel with the installation of the pipe," said Jobi.

IN INDONESIA

Konstruksi Duri-Dumai Dimulai November

PT Perusahaan Gas Negara Tbk. akan mulai pembangunan pipa transmisi ruas Duri-Dumai di Provinsi Riau pada November 2017. Proyek pipa gas sepanjang 67 km itu digarap bersama oleh PGN dan PT Pertamina Gas, anak usaha PT Pertamina. Pembangunan pipa transmisi Duri-Dumai telah ditugaskan melalui Keputusan Menteri ESDM Nomor 4975 K/12/MEM/2016. 

Direktur Komersial PGN Danny Praditya mengatakan bahwa pembangunan fisik pipa itu butuh waktu sekitar 1 tahun. Artinya, pada 1 Oktober 2018 Pastinya, pipa gas itu sudah terbangun sesuai dengan kontrak penyaluran gas dari Blok Corridor (ConocoPhillips Grissik Limited) dan Blok Bentu (Energi Mega Persada).

“Awal November PGN memulai pengerjaan proyek pipa transmisi gas bumi dari Duri ke Dumai sepanjang 67 ujarnya. Pembangunan fisik, bisa dimulai karena tidak ada lagi masalah pembebasan lahan. Pasalnya, terdapat ruas yang akan menggunakan lahan jalur tol (right of way) ruas Pekanbaru-Dumai yang dikerjakan oleh PT Hutama Karya. Dengan demikian, pembebasan lahan menjadi lebih minim.

Menurutnya, PGN telah menyelesaikan perizinan mulai dari izin prinsip hingga izin lingkungan sehingga konstruksi fisik bisa dimulai.

 “Kami sudah mendapatkan izin prinsip dari pemerintah wilayah dan izin lingkungan,” katanya.

PGN dan Pertaagas akan mengeluarkan biaya sebesar US$ 76 juta atau setara Rp 1,02 triliun (Rp 13.500 per US$). Dana pembangunan pipa bersumber dan kas internal masing-masing perusahaan.

PGN dan Pertagas akan membentuk perusahaan patungan. PGN memegang kepemilikan saham 40%, sedangkan Pertagas 60%. Total pasokan gas yang akan mengalir ke jaringan pipa transmisi tersebut sekitar 200 juta kaki kubik per hari (MMscfd).

Gas tersebut akan dialirkan untuk memenuhi kebutuhan industri di Riau, kebutuhan pelabuhan, industri petrokimia, dan kebutuhan operasional Kilang Dumai milik Pertamina.

“Pada prinsipnya di sisi PGN sudah siap, hanya menunggu kesiapan dari mitra,” katanya.

Tidak hanya di Dumai, saat ini PGN sedang mengembangkan infrastruktur pipa transmisi gas bumi West Natuna Transmissi on System (WNTS) ke Pulau Pemping, Provinsi Kepulauan Riau yang merupakan proyek penugasan pemerintah.

PGN juga mengembangkan pipa gas bumi di Muara Karang-Muara Bekasi sepanjang 42 km. Selain itu, perseroan membangun jaringan pipa distribusi gas bumi di Pasuruan, Mojokerto, Jawa Timur.

Sebelumnya, Direktur Utama PGN Jobi Triananda Hasjim mengatakan bahwa pembentukan perusahaan patungan akan dilakukan bersamaan dengan proses pemasangan pipa. Perusahaan patungan tersebut akan menjadi pengangkut gas di ruas pipa tersebut. 

“Mungkin JV [perusahaan patungan] nanti paralel dengan pemasangan pipanya,” kata Jobi.

Bisnis Indonesia, Page-30, Wednesday, October 25, 2017

Pertamina's Allotment Potentially Disbursed

The government has the potential to cancel the assignment to PT Pertamina to take over the oil and gas blocks that will be exhausted if the company is not committed to maintaining production levels in the region.

In addition to the commitment, the government can provide an extension to existing contractors if they are still interested in sticking to the block. The government assigned eight oil and gas working areas to Pertamina. The oil and gas blocks include the Tuban Block (JOB Pertamina-PetroChina East Java), Ogan Komering Block (JOB Pertamina-Talisman), Sanga-Sanga Block (VICO), Southeast Sumatera Block (CNOOC SES Ltd.), Central Block (Total E & P Indonesie ), Attaka (Chevron) Block, East Kalimantan Block (Chevron), and North Sumatra Offshore Block (Pertamina).

oil and gas working areas

Director of Upstream Oil and Gas Upstream Business Development of the Ministry of ESDM Tunggal said that currently it is still reviewing Pertamina's commitment as well as current operators who are still interested in managing the block.

According to him, the government has not yet decided to annul the assignment of eight oil and gas blocks to Pertamina. The government wants to get confirmation from Pertamina and the current contractor to keep oil and gas production on the block does not go down.

"Yes, affirmation. To ensure contractors maintain production, "he said

In January 2017, ESDM Minister Ignatius Jonan has assigned Pertamina to manage eight working areas that will expire its contract with a gross split share contract.

He mentioned that Pertamina and the operator who had expressed an interest to re-run the block of contracts were asked to expose the commitment in order to maintain production.

Oil and gas block operators such as VICO in Sanga-Sanga Block and CNOOC SES Ltd. in the SES Block is also required to explain the details of the program that will be done if it gets a contract extension. On that explanation, according to him, will be evaluated which can maintain the level of oil and gas production.

In addition to the commitment to maintain production, discussion of clauses in the new cooperation contract is also expected to be immediately disconnected. The reason, he said, the transition can not start if the new contract has not been signed.

Upstream Director of Pertamina Syamsu Alam said it had submitted the development plan of the block. Currently, the company is focusing on completing the terms and conditions of the new contract in order to be signed rather than discussing when other operators have the right to manage.

"Right now we are more concerned to start talking about TC [term & condition / terms and conditions] after termination, not yet others.

He mentioned, in general, the discussion of T & C termination work area should be completed so that the work program and budget next year will be completed.

IN INDONESIA

Jatah Pertamina Berpotensi Dianulir

Pemerintah berpotensi membatalkan penugasan kepada PT Pertamina untuk mengambil alih blok minyak dan gas bumi yang akan habis kontrak jika perseroan tidak berkomitmen dalam menjaga tingkat produksi di wilayah itu.

Selain soal komitmen, pemerintah bisa memberikan perpanjangan kepada kontraktor yang ada saat ini jika masih berminat bertahan di blok itu. Pemerintah menugaskan delapan wilayah kerja migas kepada Pertamina. Blok migas itu antara lain Blok Tuban (JOB Pertamina-PetroChina East Java), Blok Ogan Komering (JOB Pertamina-Talisman), Blok Sanga-Sanga (VICO), Blok Southeast Sumatera (CNOOC SES Ltd.), Blok Tengah (Total E&P Indonesie), Blok Attaka (Chevron), Blok East Kalimantan (Chevron), dan Blok North Sumatera Offshore (Pertamina).

Direktur Pembinaan Usaha Hulu Minyak dan Gas Bumi Kementerian ESDM Tunggal mengatakan bahwa saat ini pihaknya masih mengkaji komitmen Pertamina juga operator saat ini yang ternyata masih berminat mengelola blok tersebut.

Menurutnya, pemerintah belum mengambil keputusan untuk menganulir penugasan delapan blok migas itu kepada Pertamina. Pemerintah ingin mendapatkan penegasan dari Pertamina dan kontraktor saat ini untuk menjaga produksi migas di blok itu tidak turun.

“Ya, penegasan saja. Untuk meyakinkan kontraktor mempertahankan produksi,” ujarnya 

Pada Januari 2017, Menteri ESDM Ignasius Jonan telah menugaskan Pertamina untuk mengelola delapan wilayah kerja yang akan habis masa kontraknya dengan kontrak bagi hasil kotor atau gross split.

Dia menyebut bahwa Pertamina dan operator yang pernah menyatakan minat untuk kembali mengelola blok habis kontrak itu diminta untuk memaparkan komitmen agar bisa mempertahankan produksi.

Operator blok migas seperti VICO di Blok Sanga-Sanga dan CNOOC SES Ltd. di Blok SES juga diminta untuk menjelaskan detail program yang akan dilakukan bila mendapatkan perpanjangan kontrak. Atas penjelasan itu, menurutnya, akan dievaluasi mana yang bisa mempertahankan tingkat produksi migas.

Selain komitmen menjaga produksi, pembahasan tentang klausul dalam kontrak kerja sama baru juga diharapkan bisa segera DIputuskan. Pasalnya, dia menyebut, masa transisi tidak bisa dimulai bila kontrak baru belum diteken. 

Direktur Hulu Pertamina Syamsu Alam mengatakan, pihaknya telah menyampaikan rencana pengembangan blok itu. Saat ini, perseroan fokus menyelesaikan syarat dan ketentuan pada kontrak baru agar dapat ditandatangani daripada membahas bila terdapat operator lain yang mendapat hak kelola.

“Sekarang ini kita lebih concern untuk mulai membicarakan TC [term & condition/syarat dan ketentuan] pasca terminasi, belum yang lain lain.

Dia menyebut, secara umum, pembahasan T&C wilayah kerja terminasi harus segera diselesaikan agar program kerja dan anggaran tahun depan turut dituntaskan.

Bisnis Indonesia, Page-30, Wednesday, October 25, 2017

Qatar to invest in RI tourism, LNG

The Gulf state of Qatar has expressed a commitment to invest in tourism in Mandalika, West Nusa Tenggara (NTT), and natural gas power plants, following the official visit of Qatar’s Emir Sheikh Tamim bin Hamad al-Thani.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said the government would prepare several project proposals related to the plan, including the Mandalika special economic zone (SEZ) in which the Qatari government wants to invest in halal tourism.

“We will hold a meeting this week and send some proposals to the Qatari government,” be said after an internal meeting with President Joko “Jokowi” Widodo at the State Palace in Jakarta on Monday.

During the visit of Sheikh Tamim last week, President Jokowi showed pictures of Mandalika to the emir. Sheikh Tamim who is a keen scuba diver responded to Jokowi by expressing his interest in investing in the tourist destination.

Mandalika SEZ covers a 1,175-hectare area and is managed by the state-ovvned Indonesia Tourism Development Corporation (ITDC), which also manages Nusa Dua tourism in Bali. The land-clearing process was finally completed in April, after a presidential instruction (inpres) for land clearing was issued, ending a 29-year hiatus.

Currently, ITDC has scored Rp 13.1 trillion (US$960.54 million) in investment commitments from eight investors. As of October, out of Rp 13.1 trillion, the realized investment reached Rp 4.1 trillion.

The government plans the SEZ to have 10,000 hotel rooms, 2,000 of which will be available in 2019. In 2020, the SEZ is projected to absorb 58,000 employees. The eight investors are Vinci Development Cluster with Ptp 6.7 trillion of investment, Shaza hotel with a Rp 2 trillion investment, Club Med Hotel with Rp 1.1 trillion, Paramount Hotel with Rp 1 trillion, Lot H7 hotel with Rp 900 billion, Pullman Hotel with Rp 650 billion, X2 hotel Rp 300 billion, and Royal Tulip Hotel at Rp 250 billion Luhut said the government was extending Lombok International Airport’s runway to allow bigger planes to land on Mandalika. 

“We will build a longer runway. Now it is 2,600 meters long, and we will build it to 3,000 meters so Airbus A3805 can land there,” he said. Other than investment in tourism, he added, Qatar had agreed to supply liquefied natural gas (LNG) at $7.16 per million British thermal units (MMBTU) for Qatar-supported gas power plant projects in Indonesia.

Energy and Mineral Resources Minister Ignasius Jonan said the LNG would supply the Sumbagut 3 and 4 power plants. The gas based power plants were a joint venture project between PT Pembangkitan Jawa Bali (PJB) the subsidiary of state-owned electricity firm PLN - and Qatar’s state-owned firm Nebras Power.

“During the official visit of the Qatari Emir, PJB and Nebras signed the heads of agreement. More details about the projects will follow,” he said. 

In Sumbagut 3 and 4 - set to have a total output of 500 megawatts, Nebras Power is injecting $1 billion comprising $ 800 million for the power stationand $200 million for a floating storage and regasification unit (FSRU). The power plants will start operation in 2019.

“We’ll allow Qatar to supply the gas for the power plants as long as the price, including the cost of bringing the gas to the plant gate, is 14 percent lower than the ICP [lndonesian Crude Price,” Jonan said.

The President, he continued, had allowed gas imports as long as the price was lower than the ICP to support the local industry. However, if the imported gas could not meet the price criteria, the industry should choose the locally supplied gas instead.

Jakarta Post, Page-13, Tuesday, October 24, 2017

Dumai Refinery Crude Oil Supply Secured

PT Pertamina ensures the supply of crude oil for Pertamina Refinery Unit II Dumai is still safe although it can not be ascertained when the unit repair is implemented. After the construction of a new tank, the Dumai Refinery is now getting oil from the Cepu Block-up to 72 thousand barrels per day (bpd).

General Manager of Pertamina Refinery Unit II Refinery Dumai Otto Gerentaka said initially, the supply of crude oil to the Dumai Refinery only relies on the supply from oil and gas fields managed by PT Chevron Pacific Indonesia (CPI).

Specifically, oil supplies from Minas Field up to 85% and Duri Field 15%. However, oil production from these two fields continues to fall. However, the company has made the supply of crude oil to Dumai Refinery to be open acces by adding storage tanks. Previously, crude oil into the refinery only rely on pipelines only.

"Therefore, it is open access so we can receive many from Pertamina itself, one of them is Banyu Urip oil," he said during a visit to Pertamina Refinery Unit II Production of Pakning River, last weekend.

Now, oil supplies from Chevron's oil and gas fields are reduced to 50% of the total capacity of 175,000 bpd. While the rest, Dumai Refinery got Banyu Urip Crude Oil (BUCO) from Banyu Urip Field, Cepu Block managed by Pertamina with ExxonMobil Cepu Limited.

"Maximum we can process 50% Banyu Urip oil and 50% SLC (Sumatra Light Crude) from Chevron field," he said.

For products produced by Dumai Refinery, it is still dominated by diesel, reaching 80%. This is because according to the initial design, this refinery serves as a hydrocracker with solar products. Meanwhile, to produce gasoline such as Premium or Pertamax, the refinery needs to be equipped with residual fluid catalytic cracking unit (RFCC).

"In the future, will be developed (RFCC) here, developed lastly with RDMP (refinery development program), maybe in 2021-2022 will be installed RFCC," explained Otto.

Pertamina Refinery Unit II Dumai refinery consists of two production units, namely Dumai Production Unit with a capacity of 120 thousand bpd and Pakning River 50 thousand bpd. Like the Dumai Unit, "Pakning River Unit also gets the supply of crude oil from Cepu Block. Specifically, the type of oil treated in this unit is SLC 50%, BUCO 40%, and 10%.

Crude oil processing at the Pakning River Refinery only reaches the primary process because it only has a crude dis-trellation unit. The resulting product is dominated by residuals of 18 thousand bpd, then diesel 6,300 bp, kerosene 3,300 bph, and naphta 2,100 bph.

"This Pakning River Unit will be able to produce solar and other products later, the bottomnya [residue] will be brought to Dumai Unit to be processed there," Otto said.

Nationally, Pertamina manages six refineries with a capacity of 1.12 million bpd, including the Dumai Refinery. In addition to Dumai, other units are Plaju Refinery, Sumsel 118 thousand bpd, Cilacap, Central Java 348 thousand bpd, Balikpapan, East Kalimantan 260 thousand bpd, Balongan, West Java 125 thousand bpd, and Kasim, West Papua 10 thousand bpd.

IN INDONESIA

Pasokan Minyak Mentah Kilang  Dumai Dipastikan Aman

PT Pertamina memastikan pasokan minyak mentah untuk Kilang Pertamina Refinery Unit II Dumai masih aman meski belum dapat dipastikan kapan perbaikan unit dilaksanakan. Pasca dibangunnya tangki baru, Kilang Dumai kini mendapat minyak dari Blok Cepu-hingga 72 ribu barel per hari (bph).

General Manager Kilang Pertamina Refinery Unit II Dumai Otto Gerentaka mengatakan, awalnya, pasokan minyak mentah untuk Kilang Dumai hanya mengandalkan pasokan dari lapangan migas yang dikelola oleh PT Chevron Pacific Indonesia (CPI). 

Rincinya, pasokan minyak dari Lapangan Minas hingga 85% dan Lapangan Duri 15%. Namun, produksi minyak dari dua lapangan ini terus turun. Meski demikian, perseroan telah membuat pasokan minyak mentah ke Kilang Dumai menjadi open acces dengan menambah tangki penyimpanan. Sebelumnya, minyak mentah masuk ke kilang hanya mengandalkan jalur pipa saja. 

“Makanya dibuat open access, sehingga kami bisa banyak terima dari Pertamina sendiri, salah satunya minyak Banyu Urip,” kata dia dalam kunjungan ke Kilang Pertamina Refinery Unit II Production Sungai Pakning, akhir pekan lalu.

Kini, pasokan minyak dari lapangan-lapangan migas milik Chevron berkurang menjadi 50% saja dari total kapasitas 175 ribu bph. Sementara sisanya, Kilang Dumai mendapat minyak jenis Banyu Urip Crude Oil (BUCO) dari Lapangan Banyu Urip, Blok Cepu yang dikelola Pertamina bersama ExxonMobil Cepu Limited.

“Maksimum kami bisa mengolah 50% minyak Banyu Urip dan 50% SLC (Sumatra Light Crude) dari lapangan Chevron,” ujarnya.

Untuk produk yang dihasilkan Kilang Dumai, masih didominasi oleh solar yakni mencapai 80%. Hal ini lantaran sesuai desain awal, kilang ini berfungsi sebagai hidrocracker dengan produk berupa solar. Sementara untuk memproduksi bensin seperti Premium atau Pertamax, kilang perlu dilengkapi unit residual fluid catalytic cracking (RFCC).

“Ke depan, akan dikembangkan (RFCC) di sini, dikembangkan terakhir dengan RDMP (refinery development program), mungkin pada 2021-2022 akan dipasang RFCC,” jelas Otto.

Kilang Pertamina Refinery Unit II Dumai terdiri dari dua unit produksi, yaitu Unit Produksi Dumai berkapasitas 120 ribu bph dan Sungai Pakning 50 ribu bph. Sama seperti Unit Dumai,” Unit Sungai Pakning juga mendapat pasokan minyak mentah dari Blok Cepu. Rincinya, jenis minyak yang diolah di unit ini adalah SLC 50%, BUCO 40%, dan 10%.

Pengolahan minyak mentah di Kilang Sungai Pakning hanya sampai pada primary process lantaran hanya memiliki unit pemisahan minyak mentah (crude disstilation unit). Produk yang dihasilkan didominasi oleh residu sebesar 18 ribu bph, kemudian solar 6.300 bph, minyak tanah 3.300 bph, Serta naphta 2.100 bph.

“Unit Sungai Pakning ini nanti bisa menghasilkan produk solar dan lainnya, nanti bottomnya [residu] dibawa ke Unit Dumai untuk diolah di sana,” kata Otto.

Secara nasional, Pertamina mengelola enam kilang dengan kapasitas 1,12 juta bph, termasuk Kilang Dumai. Selain Dumai, unit lainnya yakni Kilang Plaju, Sumsel 118 ribu bph, Cilacap, Jateng 348 ribu bph, Balikpapan, Kaltim 260 ribu bph, Balongan, Jabar 125 ribu bph, dan Kasim, Papua Barat 10 ribu bph.

Investor Daily, Page-9, Tuesday, October 24, 2017