Total Immediately Leave at Mahakam

The Mahakam Block transition continues. Such as ensuring employees and service contractors in the Mahakam Block still get certainty. One of the main focuses of Pertamina Hulu Mahakam is to ensure production does not go down after the transfer of contract on January 1, 2018.

In less than two months, PT Pertamina Hulu Mahakam officially took over the ownership of the Mahakam Block operator from Total EP Indonesia. The half-century total being the operator of the Mahakam should lift the suitcase from the block. This occurred after in 2015 the government decided to grant the right to manage the Mahakam block to Pertamina.

From that moment to the present, the transition period continues. One of the most important transitions is ensuring that all employees of Total EP Indonesie in the Mahakam block obtain new & new employment contracts from Pertamina.

Vice President of Authorization Coordination, Communication and External Affairs Total E & P Indonesie Agus Suprijanto asserted that all employees in Mahakam block get a working contract from Pertamina Hulu Mahakam.

Currently there are about 1,000 workers Total EP Indonesie in the Mahakam Block has been offered a new contract by Pertamina. The majority of workers are willing to release the status of their employees in French companies and become human Pertamina. Only about 20 employees of Total EP Indonesie refused to join Pertamina for various reasons. One of them for wanting to retire.

In addition to the workers, the contractors working in the Mahakam Block have also signed a contract with Pertamina Hulu Mahakam. With so expected, the transition of the Mahakam Block in early 2018 can run smoothly.

"The contractor is running, the rig is already running, if everything goes, yes it is smooth (the transition)," said Agus, last week.

He asserted, Total absence after 2017 will not affect the operation of the block. Because Total has released the employment status of workers in the Mahakam Block.

"We as of December 31 are no longer Total employees," he stressed.

So does the contract of contractors in the Mahakam Block. Agus even said next year the number of rigs operating in the Mahakam block will increase. If there are currently only two rigs in operation, next year there will be five rigs. This is in line with the number of well drilling that will be more done next year.

"We're talking from two offshore rigs and three swamp rigs to five rigs - our wells now are from 14 to 65 next year. So it triples, "he said.

Meanwhile, Upstream Director of Pertamina Syamsu Alam revealed, it is ready to take care of its own Mahakam Block without Total EP and lnpex. But he heard, Total and Inpex are still interested in sharing in Mahakam.

Pertamina's President Director, Masia Manik, said production in the Mahakam block is dependent on wells. The more wells are drilled, the production will increase. The Mahakam Block production is currently around 800 mmscfd, because in mid 2015 Total did not add wells.

"But I am sure, can return to 1,200 mmscfd again," he said.

IN INDONESIA

Total Segera Angkat Koper di Mahakam

Transisi Blok Mahakam terus dilakukan. Seperti memastikan karyawan dan para kontraktor jasa di Blok Mahakam tetap mendapat kepastian. Salah satu fokus utama Pertamina Hulu Mahakam adalah memastikan produksi tidak turun pasca beralihnya kontrak pada 1 Januari 2018 mendatang.

Kurang dua bulan lagi, PT Pertamina Hulu Mahakam resmi mengambilalih kepemilikan operator Blok Mahakam dari Total EP Indonesia. Total yang telah setengah abad menjadi operator Mahakam harus angkat koper dari blok tersebut. Ini terjadi setelah pada tahun 2015 lalu pemerintah memutuskan memberi hak kelola Blok Mahakam kepada Pertamina.

Sejak saat itu hingga saat ini, masa transisi terus berlangsung. Salah satu transisi paling penting adalah memastikan seluruh karyawan Total EP Indonesie di Blok Mahakam mendapatkan kontrak kerja & baru dari Pertamina.

The Mahakam Block

Vice President Authorization Coordination, Communication, and External Affairs Total E&P Indonesie Agus Suprijanto menegaskan, seluruh karyawan di Blok Mahakam mendapatkan penawaran kontrak kerja dari Pertamina Hulu Mahakam.

Saat ini ada sekitar 1.000 orang pekerja Total EP Indonesie di Blok Mahakam sudah ditawari kontrak kerja baru oleh Pertamina. Mayoritas para pekerja tersebut rela melepas status karyawan mereka di perusahaan asal Prancis dan menjadi insan Pertamina. Hanya ada sekitar 20-an karyawan Total EP Indonesie menolak bergabung ke Pertamina karena berbagai alasan. Salah satunya karena ingin pensiun.

Selain pekerja, para kontraktor yang bekerja di Blok Mahakam juga telah menandatangani kontrak dengan Pertamina Hulu Mahakam. Dengan begitu diharapkan, transisi Blok Mahakam awal tahun 2018 bisa berjalan lancar. 

"Kontraktor sudah jalan, rig sudah berjalan, kalau semuanya jalan, ya memang smooth (transisi-nya)," terang Agus, pekan lalu. 

Ia menegaskan, ketiadaan Total setelah 2017 tidak akan berpengaruh pada operasi blok tersebut. Pasalnya, Total telah melepas status kepegawaian pekerja di Blok Mahakam. 

"Kami per 31 Desember sudah bukan lagi karyawan Total," tegas dia.

Begitu juga dengan kontrak para kontraktor di Blok Mahakam. Agus bahkan bilang pada tahun depan jumlah rig yang beroperasi di Blok Mahakam akan bertambah. Jika saat ini hanya ada dua rig beroperasi, tahun depan akan ada lima rig. Ini sejalan dengan jumlah pengeboran sumur yang akan lebih banyak dilakukan pada tahun depan. 

"Kami bicara dari dua rig offshore dan tiga rig swamp menjadi lima rig. Sumur kita sekarang dari 14 menjadi 65 di tahun depan.

Jadi naik tiga kali lipat," ujarnya.

Sementara Direktur Hulu Pertamina Syamsu Alam mengungkapkan, pihaknya siap mengurus Blok Mahakam sendiri tanpa Total EP dan lnpex. Tapi ia mendengar, Total dan Inpex masih berminat berkongsi di Mahakam.

Direktur Utama Pertamina Elia Massa Manik menyatakan, produksi di Blok Mahakam tergantung dengan sumur. Semakin banyak sumur yang dibor, produksi akan meningkat. Produksi Blok Mahakam saat ini sekitar 800 mmscfd, itu karena pada pertengahan tahun 2015 lalu Total tidak menambah sumur. 

"Tapi saya yakin, bisa kembali ke 1.200 mmscfd lagi," katanya.

Kontan, Page-14, Monday, Nov 6, 2017

Residents of Jenu Compact Refuse Rosneft Oil Refinery

Reluctant to Release Land, Socialization Has No Results

The socialization of land acquisition for the construction of a national oil palm strategic project to the communities of Mentoso and Remen villages, Ienu sub-district, Tuban district, at Wilis Hotel, local sub-district, was protested on Sunday (5/11).

Rosneft Oil Company - Russia

Hundreds of residents who attended the meeting firmly refused to release the land to be used as a location for the establishment of the Rosneft Oil Company oil refinery project. Hundreds of residents who attended the meeting hall shouted "No" when representatives from Pertamina explained the material of socialization.

"Ora ape not dol (I will not sell)," shouted the residents who attended the socialization.

According to Suwarto, one of the residents who stepped forward in front of the venue to voice their aspirations, the construction of the oil refinery will only harm society. He believes, if the refinery is built, the people will lose their livelihood because most of the people work as farmers. Meanwhile, Narto, another resident, claimed to reject the acquisition of the land for fear that the price is too cheap.

"Residents have been twice affected by land acquisition for projects before this. So it was traumatized, afraid of what happened once again, "said Narto.

The socialization which was planned for two days was forced to be stopped due to the situation and conditions that are not possible to proceed

Jenu Police Headquarters, AKP Elis Suendayati said that the residents who were present were beyond his expectations. The reason, the guests who present not only the invitation, but other people participate, so the building has over capacity.

"The plan of two days, the order of Kapolres currently postponed first, for tomorrow stopped waiting for coordination between Pertamina, Polres, and Provincial Government," he said.

Meanwhile, as Head of East Java Provincial Government Administration and Administration Bureau, Anom Suharno said that this meeting is still the initial stage of socialization of refinery development planning.

"Naturally, if people do not understand the purpose of development, all for the welfare of the people, obviously for this big project there must be pros and cons.People still consider this harm, but this is actually for the welfare

people, "he said.

"Persuasive efforts continue to make people aware of the benefits of the establishment of the oil refinery We need not blame each other, this is a step that must be passed, and for the welfare of the people," Anom concluded.

IN INDONESIA

Warga Jenu Kompak Tolak Kilang Minyak Rosneft

Enggan Lepaskan Tanah, Sosialisasi Tidak Membuahkan Hasil

Sosialisasi pengadaan tanah untuk pembangunan proyek srategis Nasional kilang minyak kepada masyarakat Desa Mentoso dan Desa Remen, Kecamatan Ienu, Kabupaten Tuban, di Hotel Wilis Kecamatan setempat diwarnai protes, Minggu (5/11).

Ratusan warga yang hadir dalam pertemuan tersebut dengan tegas menolak melepas tanahnya untuk digunakan sebagai lokasi berdirinya proyek kilang minyak Rosneft Oil Company.

Ratusan warga yang hadir memenuhi gedung pertemuan berteriak “Tidak” saat perwakilan dari Pertamina menjelaskan materi sosialisasi. 

“Ora ape tak dol (Tidak akan saya jual),” teriak para warga yang hadir dalam sosialisasi.

Menurut Suwarto, salah satu warga yang maju ke depan panggung untuk menyuarakan aspirasinya, pembangunan kilang minyak tersebut hanya akan merugikan masyarakat. Ia meyakini, apabila kilang minyak itu dibangun, maka masyarakat akan kehilangan mata pencaharian karena sebagian besar warga berprofesi sebagai petani.

Sementara Narto, warga lainnya, mengaku menolak pembebasan lahan tersebut karena khawatir harganya yang terlalu murah. 

“Warga sudah dua kali ini terimbas pembebasan lahan untuk proyek-proyek sebelum ini. Jadi sudah trauma, takut kejadian yang dulu terulang kembali,” ucap Narto.

Sosialisasi yang rencananya berlangsung selama dua hari itu terpaksa harus dihentikan karena situasi dan kondisi yang tidak memungkinkan untuk dilanjutkan

Kapolsek Jenu, AKP Elis Suendayati mengatakan bahwa warga yang hadir di luar perkiraan pihaknya. Pasalnya, tamu yang hadir bukan hanya undangan saja, namun masyarakat lainnya ikut serta, sehingga gedung mengalami over kapasitas.

“Rencananya dua hari, perintah Kapolres saat ini ditunda dulu, untuk besok dihentikan menunggu hasil koordinasi antara Pertamina, Polres, dan Pemerintah Provinsi,” ungkapnya.

Sementara itu, selaku Kepala Biro Administrasi dan Pemerintahan Sekretariat Daerah Provinsi Jawa Timur, Anom Suharno mengatakan bahwa pertemuan ini masih tahap awal sosialisasi terhadap perencanaan pembangunan kilang.

"Wajar apabila warga belum memahami maksud pembangunan tersebut. Semuanya untuk kesejahteraan rakyat, jelas untuk proyek sebesar ini pasti ada pro dan kontra. Masyarakat masih menganggap ini merugikan, namun sebenarnya ini untuk kesejahteraan

rakyat," ungkapnya.

"Upaya persuasif terus dilakukan untuk menyadarkan masyarakat tentang manfaat didirikannya kilang minyak tersebut. Kita tidak perlu saling menyalahkan, ini suatu tahapan yang harus dilalui, dan untuk mensejahterakan rakyat," pungkas Anom.

Harian Bangsa, Page-9, Monday, Nov 6, 2017

Total Delays Telen Drilling

Total E & P Indonesie chose to pay a penalty for not drilling oil and gas exploration wells in Telen Block located in East Kalimantan.

The oil and gas block contract is signed in 2012. Vice President of Authorization Coordination, Communication and External Affairs Total E & P Indonesie Agus Suptijanto said that until next year there is no exploration drilling activity plan in Telen Block. With current oil prices, he mentions that companies are still weighing up to do exploration activities.

Instead of drilling that is expected to cost US $ 100 million per well, Total prefers to delay activities despite having to bear the risk by paying a penalty. In 2012, there are three blocks direct deals signed by his cooperation contract, namely Telen Block, Mentawai and East Sokang. The Telen and Mentawai blocks are the exploration work areas managed by Total.

Of the three blocks, the government is committed to a three-year exploration period worth a total of US $ 80.3 million. A definite commitment and geological and geophysical study worth US $ 5.6 million, a 1,200 km three-dimensional seismic; worth US $ 15 million, and drilling two exploration wells worth US $ 59.8 million. currently has not decided to drill. Penalties became an option.

"he said on the sidelines of Gathering Journalists and Training Meeting in Balikpapan, Wednesday (1/11).

Exploration activities have not shown good prospects so Total returns several blocks such as South Sageri in Makassar Strait, Mentawai in Bengkulu and South West Bird's Head in Papua. For drilling activities in Mentawai and South West Bird's Head, Total spent US $ 300 million.

"If we talk to Papua and Mentawai, US $ 500 million is lost."

Production Block For oil and gas blocks already in production, Total has a 25% stake in the Block. Sebuku who partnered with Mubadala Petroleum. Meanwhile, for the Mahakam Block, Total has not yet learned whether to continue management in the Mahakam Block. The value for the 39% valuation of the Mahakam Block to Pertamina has been proposed.

"We have offered, just waiting for Pertamina's reply if he wants to give consent."

According to him, the decision of Total to join can be decided at any time. As is known, currently the Mahakam Block is operated by Total E & P Indonesie with 50% ownership and 50% of Inpex. Meanwhile, in its new contract signed 2015, PT Pertamina through PT Pertamina Hulu Mahalam was appointed as the operator of Mahakam from 1 January 2018.

Upstream Director of Pertamina Syamsu Alam said that until now the contractor has not expressed interest in the new contract. He also mentioned that there is no Inpex request to access data block Mahakam because interested in management in the new contract. It was rumored that Inpex was ready to replace Total to partner with Pertamina.

IN INDONESIA

Total Tunda Pengeboran Telen

Total E&P Indonesie memilih untuk membayar penalti karena tidak melakukan pengeboran sumur eksplorasi migas di Blok Telen yang berlokasi di Kalimantan Timur.

Kontrak blok migas tersebut ditandatangani pada 2012. Vice President Authorization Coordination, Communication, and External Affairs Total E&P Indonesie Agus Suptijanto mengatakan bahwa hingga tahun depan belum ada rencana kegiatan pengeboran eksplorasi di Blok Telen. Dengan kondisi harga minyak saat ini, dia menyebut bahwa perusahaan masih menimbang untuk melakukan kegiatan eksplorasi. 

Daripada melakukan pengeboran yang diperkirakan akan mengeluarkan biaya sebesar US$ 100 juta per sumur, Total lebih memilih untuk menunda kegiatan meskipun harus menanggung risiko dengan membayar penalti. Pada 2012, terdapat tiga blok penawaran langsung yang diteken kontrak kerja samanya, yakni Blok Telen, Mentawai, dan East Sokang. Blok Telen dan Mentawai adalah wilayah kerja eksplorasi yang dikelola oleh Total.

Dari ketiga blok itu, pemerintah memperoleh komitmen pasti untuk 3 tahun masa eksplorasi senilai total US$ 80,3 juta. Komitmen pasti dan studi geologi dan geofisika senilai US$ 5,6 juta, seismik tiga dimensi sepanjang 1.200 km; senilai US$ 15 juta, dan pengeboran dua sumur eksplorasi senilai US$ 59,8 juta. saat ini belum memutuskan untuk mengebor. Penalti menjadi opsi,” ujarnya di sela acara Temu Wartawan dan Pelatihan di Balikpapan, Rabu (1/11).

Kegiatan eksplorasi, belum menunjukkan prospek yang baik sehingga Total mengembalikan beberapa blok seperti South Sageri di Selat Makassar, Mentawai di Bengkulu dan South West Bird’s Head di Papua. Untuk kegiatan pengeboran di Mentawai dan South West Bird’s Head, Total menghabiskan US$ 300 juta. 

“Kalau kita bicara Papua dan Mentawai, US$ 500 juta hilang.” 

Blok Produksi Untuk blok migas yang sudah produksi, Total memiliki 25% saham partisipasi di Blok. Sebuku yang bermitra dengan Mubadala Petroleum. Sementara itu, untuk Blok Mahakam, Total belum mengetahui apakah akan melanjutkan pengelolaan di Blok Mahakam. Pasalnya, nilai untuk valuasi 39% Blok Mahakam kepada Pertamina telah diajukan.

“Kami sudah memberikan penawaran, hanya menunggu jawaban Pertamina apakah dia mau memberikan persetujuan."

Menurutnya, keputusan Total untuk bergabung bisa diputuskan kapan saja. Seperti diketahui, saat ini Blok Mahakam dioperasikan oleh Total E&P Indonesie dengan kepemilikan saham 50% dan sisanya 50% Inpex. Adapun, pada kontrak barunya yang diteken 2015, PT Pertamina melalui PT Pertamina Hulu Mahalam ditunjuk menjadi operator Mahakam mulai 1 Januari 2018.

Direktur Hulu Pertamina Syamsu Alam mengatakan bahwa hingga kini kontraktor belum menyatakan minat di kontrak baru. Dia pun menyebut belum ada permintaan Inpex untuk akses data Blok Mahakam karena berminat pada pengelolaan di kontrak baru. Beredar kabar bahwa Inpex siap menggantikan Total untuk bermitra dengan Pertamina. 

Bisnis Indonesia, Page-30, Monday, Nov 6, 2017

The Government Asked to Question the Seriousness of Rosneft

The central government is requested to be more serious and re-question the commitment of Rosneft Oil Company of the Russian State, in relation to the unclear Groundbreaking of Tuban Refinery, as the preliminary agreement can be realized, with many changing world scenarios.

"The refinery is used to make fuel oil and its users almost 90 percent is transportation," said Satya Widya Yudha, Vice Chairman of Commission VII of DPR RI while attending Beach Clean-Up Day event at Tuban Mangrove Center, Sugihwaras Village, Tuban yesterday (4/11).

Now the mode of transportation is how. When the mode of transportation changes from BBM to BBG, automatically the need for fuel is reduced. Conversely, when the need for fuel changes to electricity, it also affects fuel dependence. On the other hand, there is a positive side when fuel demand shrinks as it affects import dependence. As time went on, Indonesia's current account deficit also declined.

"The question is how with the commitment of Pertamina partners from the Red Bear country," said Yudha.

AThe changing of the world scenario, whether the Tuban refinery remains built in accordance with the initial capacity. It could be with the phenomenon of switching fuel, its capacity is reduced. Early production of 300 thousand barrels per day (BPH), can be reduced to 100 thousand BPH.

IN INDONESIA

Pemerintah Diminta Pertanyakan Keseriusan Rosneft

Pemerintah pusat diminta agar lebih serius dan kembali mempertanyakan komitmen Rosneft Oil Company asal Negara Rusia, terkait dengan belum jelasnya Groundbreaking Kilang Tuban, sebagaimana kesepakatan awal dapat diwujudkan, dengan banyaknya skenario dunia yang berubah.

“Kilang itu dipakai membuat Bahan Bakar Minyak (BBM) dan penggunanya hampir 90 persen adalah transportasi,” kata Satya Widya Yudha, Wakil Ketua Komisi VII DPR RI saat menghadiri acara Beach Clean-Up Day di Kawasan Mangrove Center Tuban, Desa Sugihwaras, Kecamatan Jenu Tuban kemarin (4/11).

Satya Widya Yudha

Sekarang moda transportasi tersebut bagaimana. Ketika moda transportasi berubah dari BBM ke BBG, otomatis kebutuhan BBM berkurang. Sebaliknya ketika kebutuhan BBM berubah ke listrik, juga mempengaruhi ketergantungan BBM. Di lain sisi, ada sisi positifnya ketika kebutuhan BBM menyusut karena mempengaruhi ketergantungan impor.  Berjalannya waktu, defisit transaksi berjalan Indonesia juga menjadi mengecil. 

“Pertanyaannya bagaimana dengan komitmen mitra Pertamina dari negeri Beruang Merah itu,” tegas Yudha.

Adanya perubahan skenario dunia, apakah Kilang Tuban tetap dibangun sesuai dengan kapasitas awal. Bisa saja dengan fenomena beralihnya BBM, kapasitasnya dikurangi. Awal produksi 300 ribu Barel Per Hari (BPH), bisa dikurangkan menjadi 100 ribu BPH.

Bhirawa, Page-6, Monday, Nov 6, 2017

BPH Migas scraps fund proposal

The Downstream Oil and Gas Regulatory Agency (BPH Migas) has decided to scrap its plan to give Rp 1 trillion (US$73.9 million) to Pertamina annually from its annual nontax revenue (PNBP) to ease the company’s financial burden in its quest to fully implement the one-fuel price policy The proposed fund could have helped Pertamina to expand the coverage of the policy, which aims to cut the price disparity of fuel between regions across the sprawling archipelago of more than 17,000 islands.

“It was just a thought that BPH Migas head [Fanshurullah Asa] had at that time,” said Harya Adityawarman, Energy and Mineral Resources Ministry’s director for down stream business, on the sidelines of a press conference on Friday.

“Some people said that Pertamina had losses caused by the one-fuel price policy and Pak Asa thought that we could [give Pertamina] some Rp 1 trillion from the country’s non-tax revenue,” he said. “But in the end, there were procedures [that Pertamina had to fulfill].”

However, Harya said Energy and Mineral Resources Minister Ignasius Jonan had promised to hold a meeting with Pertamina to discuss the proper incentives to ease its burden, although he declined to provide further details. He strugged off concerns about Pertamina’s possible losses that could 'comefrom the policy.

“This is not about a matter of loss or profit, but about social justice.” Pertamina needs Rp 5 trillion to sell subsidized Premium gasoline and Solar diesel fuel at Rp 6,450 per liter and Rp 5,150 per liter, respectively, in 150 locations nationwide by 2019, including frontier, outermost and remote areas, known as the 3T regions. It has thus far covered only 26 locations as of November, costing the firm Rp 300 billion in losses.

Pertamina president director Elia Massa Manik had said the company might face a possible $ 1 billion revenue decline annually if the government was to proceedwith its one-fuel price policy until the end of President Joko “Jokowi” Widodo’s term in 2019.

“The government could have taken [the one-fuel price adjustment cost] from, for instance, our dividends,” Elia said recently, pointing out that Pertamina had paid Rp 12 trillion in dividends to the government last year.

“Therefore, even though we could not yet increase the fuel prices, we would not feel as though our revenues were taken away.” 

Pertamina’s struggle to maintain the one-fuel policy price has been exacerbated by the government’s decision to ignore the rising global oil prices in the past months.

This has led to the company booking a 29.7 percent net income decline until the third quarter of 2017 to $1.99 billion because of a 27 percentincrease in its cost of sold goods and operating expenses.

‘As Mr. Elia has said, our fuel price formula still refers to the one issued by the Energy and Mineral Resources Ministry” said Pertamina finance director Arief Budiman.

“The formula is reiterated every quarter but it is subject to change next year. Therefore, we expect fuel pricerises for 2018.” BPH Migas, appointed by Jokowi to supervise the implementation of the one-price fuel policy remained convinced that it would fulfill the target of 54 new fuel stations this year as mandated by the program as it invited more private companies to participate.

Listed chemicals and petroleum distributor PT AKR Corporindo is the only private company to join in the program with a target of opening five fuel stations this year.

Private firm PT Vivo Energy Indonesia, which recently kicked off the operation of its first fuel station in Cilangkap, East Jakarta, is among the interested parties as it is mulling building a distribution line in Maluku, said Ibnu Fajar, a member of BPH Migas’ fuel committee. 

“The more players we see in this policy the better it will be,” he told reporters on Friday.

The Jakarta Post, Page-13, Saturday, Nov 4, 2017

Pertamina struggles to make ends meet amid tasks

State owned energy giant Pertamina has been gasping for air as the government decided to maintain the prices of certain fuels amid mounting tasks the company has to accomplish in the upstream and downstream oil and gas sectors.

In accordance with global oil prices, the government in 2015 decided to evaluate once every three months the price of Premium gasoline - which has a research octane number (RON) of 88 as well as subsidized diesel Solar and kerosene.

Since April 2016, however, the government has been ignoring the recovery in global crude oil prices, as it maintained fuel prices at Rp 6,450 (49 US cents) per liter for Premium, Rp 5,150 per liter for Solar and Pip 2,500 per liter for kerosene.

The Indonesian Crude Price (ICP), a benchmark to calculate non-tax income in the state budget, averaged at $48.86 per barrel during nine months of 2017, up 28.9 percent from the corres ponding-period last year. During the same period, Pertamina’s revenue climbed by 17.8 percent year-on-year to $3 1.38 billion, but its net income fell by 29.7 percent to $1.99 billion due to a 27 percent increase in its cost of goods sold and operating expenses.

Had the prices been adjusted in accordance with the set formula, Pertamina would be able to gain extra $1.42 billion in revenues and $1.06 billion in net income, said the company’s president director Elia Massa Manik on Thursday.

“As there had been no adjustment, we could only record $ 31.38 billion [in revenues],” Elia said.

Although Pertamina was able to survive amid the governments mandate to implement the one fuel-price policy, the expected additional $1.06 billion could have been used to accelerate the company’s investment, he said.

Under the one fuel-price policy, Pertamina plans to establish fuel distribution agents in 150 remote locations by 2019 in order to keep prices of Premium and Solar at the same level in those areas.

Pertamina has estimated it Will have to spend Rp 800 billion to penetrate 54 locations through-out this year alone and Rp 5 trillion to realize the policy in all 150 locations by 2019.

The government still owed Pertamina Rp 22 trillion in subsidies for the sale of subsidized 3-kilogram liqueiied petroleum gas (LPG) canisters and subsidized Solar diesel, according to 2016 data.

Moreover, the government had yet to pay Ptp 8,4 trillion for supplies of gasoline from Pertamina to the Indonesian Military since 2014.

“For the ongoing year, there have been additional debts worth Rp 10 trillion as well. We’re still discussing it with the government, but hopefully, it can repay some of the debts this year,” Pertamina finance director Arief Budiman said.

Energy and Mineral Resources Minister Ignasius Jonan had acknowledged Pertamina’s financial situation, but said that all of the company’s linancial burdens in the downstream sector would be offset with revenues coming from upstream oil and gas working areas mandated to the firm.

For instance, Pertamina will oflicially take over full operations at the gas-rich Mahakam block in East Kalimantan on Jan. 1, 2018 from France oil and gas giant Total E&P Indonesie (TEPI). TEPI currently holds a 50 percent stake in the block, while its Japanese partner Inpex controls the remainder.

is an effort to maintain continuity and a stable level of Mahakam blocks oil and gas production post-takeover, Pe rtamina has planned to start drilling 14 wells there this year with investment worth at least $180 million.

“So, we can only bear the fruit from the Mahakam block far in the future. But first we need to invest a huge amount of money to maintain the block’s production,” Elia said.

Between January and September, Pertamina produced 342,000 barrels of oil per day (bopd) and 2,030 million standard cubic feet per day (mmscfd) of gas, up 10.6 percent and 3.94 percent from the previous year, respectively.

THe Jakarta Post, Page-13, Friday, Nov 3, 2017

Total EP Make Sure Production Matches Target

Total E & P Indonesie stated that oil and gas production in Mahakam block, East Kalimantan is targeted. The French oil and gas company still maintains production even though its contract expires in two months.

Vice President of Authorization Coordination, Communication and External Affairs Total E & P Indonesie Agus Suprijanto said there are six production fields in Mahakam with total production of 300,000 barrels of oil equivalent per day (boepd).

The production consists of gas of 1,300 million standard cubic feet per day (mmscfd) and liquid, which is condensate and oil of 50,000 barrels oil per day (bopd).

"Now can still meet the target. Still as expected 1,300 mmscfd and liquid 50,000 bopd, "said Agus in Balikpapan, Wednesday (2/11).

Agus revealed that during this year Total has completed drilling in seven wells. He said that in the transition period with PT Pertamina which will manage the Mahakam block, until the beginning of November it has drilled eight wells. The drilling is an investment of Pertamina with a target of 14 wells.

"So until the end of this year there will be 21 production wells in the Mahakam block," he said.

Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan previously said that managing the Mahakam block is becoming a gamble for national companies in running upstream oil and gas business.

The Mahakam Block

"(Block) Mahakam becomes a big gamble Pertamina, if the transfer of this makes the production down drastically, then Pertamina reputation and reputation of our upstream oil and gas will be less positive," he said.

As known, the Government has appointed Pertamina to manage the Mahakam Block, effective as of January 1, 2018. This block was previously managed by Total E & P Indonesie in collaboration with Inpex Japan. The term of the Mahakam block will expire on 31 December 2017.

IN INDONESIA

Total EP Pastikan Produksi Sesuai Target

Total E&P Indonesie menyatakan produksi minyak dan gas bumi di Blok Mahakam, Kalimantan Timur sesuai target. Perusahaan migas asal Prancis itu tetap mempertahankan produksi meski kontraknya berakhir dua bulan lagi.

Vice Presiden Authorization Coordination, Communication and External Affairs Total E&P Indonesie Agus Suprijanto mengatakan ada enam lapangan produksi di Mahakam dengan total produksi mencapai 300.000 barrel oil equivalent per day (boepd).

Produksi itu terdiri atas gas sebesar 1.300 million standard cubic feet per day (mmscfd) dan likuid yakni kondensat dan minyak sebesar 50.000 barrel oil per day (bopd). 

“Sekarang masih bisa penuhi target. Masih sesuai harapan 1.300 mmscfd dan likuid 50.000 bopd,” kata Agus di Balikpapan, Rabu (2/ 11).

Agus mengungkapkan sepanjang tahun ini Total telah menyelesaikan pengeboran di tujuh sumur. Dia menuturkan dalam masa transisi dengan PT Pertamina yang bakal mengelola Blok Mahakam, hingga awal November ini telah dilakukan pengeboran delapan sumur. Pengeboran yang dilakukan itu merupakan investasi Pertamina dengan target 14 sumur. 

“Maka hingga akhir tahun ini akan ada 21 sumur produksi yang berada di Blok Mahakam,” ujarnya.

Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan sebelumnya menuturkan alih kelola Blok Mahakam menjadi pertaruhan perusahaan nasional dalam menjalankan bisnis hulu Migas. 

“ (Blok) Mahakam menjadi pertaruhan besar Pertamina, kalau alih kelola ini membuat produksi turun drastis, maka reputasi Pertamina dan reputasi dunia hulu migas kita akan kurang positif,” ujarnya.

Sebagaimana diketahui, Pemerintah telah menujuk Pertamina untuk mengelola Blok Mahakam, efektif per tanggal 1 Januari 2018. Blok ini sebelumnya dikelola oleh Total E&P Indonesie berkolaborasi dengan Inpex Jepang. Masa kontrak Blok Mahakam akan habis pada 31 Desember 2017.

Investor Daily, Page-9, Friday, Nov 3, 2017

Pertamina Prints Profit of US $ 1.9 M

At a time of various challenges facing the company for 9 months in 2017, PT Pertamina still make a profit of US $ 1.99 billion. This is due to an increase in operating performance and efficiency that can withstand the increase of Cost of Goods Sold (COGS) and operating expenditure (Opex) only at 27% level.

"Pertamina is still able to record profits, at the time of assignment in the provision of Fuel (BBM) for the people throughout Indonesia, with prices according to the provisions of the government. 

     Pertamina also maximally undertakes austerity measures from procurement in the upstream and downstream sectors without disrupting operations and not reducing quality, "Pertamina President Director Elia Massa Manik told reporters during the 3rd Quarter End of 2017 exposure in Jakarta on Thursday (2/10).

Recorded, the average price of ICP crude oil during 9 months 2017 rose 29 percent from the same period in 2016. Pertamina's revenue only rose 18 percent, from US $ 26.62 billion to US $ 31.38 billion with the mandate of BBO fuel distribution with prices unchanged.

Massa added that in reference to the fuel price calculation formula, Pertamina's financial performance is better, with revenues reaching US $ 32.8 billion and nett income of US $ 3.05 billion. 

     Nevertheless, Massa emphasized that the income difference has been returned as Pertamina's contribution to the public, to cover the difference in fuel price of US $ 1.42 billion (excluding Rp 19 trillion), excluding contributions in the form of VAT and PBBKB. Although, the value is needed Pertamina for investment in the upstream sector, refineries and other strategic projects.

Positive performance is also obtained from oil production during January-September 2017 reached 342 thousand barrels per day (MBOPD) or grew 11% over the same period of 2016 amounted to 309 MBOPD. 

    Gas production grew by 4% from 1,953 cubic feet per day (MMSCFD) in the January-September 2016 period to 2,030 MMSCFD in the same period of 2017. So total oil and gas production increased 7%, from 646 thousand barrels while oil per day (MBOEPD) to 693 MBOEPD.

Meanwhile, geothermal performance experienced a significant growth of 31 percent from 2,233 (Giga Watt Hour (GWh) in the first nine months of 2016 to 2,932 in the same period in 2017.

"The increase of Pertamina's geothermal production demonstrates the company's high commitment to the development of new environmentally friendly renewable energy, as well as to boost the electrification ratio of geothermal with installed capacity of geothermal power plant which currently reaches 587 MW," Massa said.

In the field of New & Renewable Energy (NRE) for electricity, Pertamina has developed several Initiatives, namely PLTS Project in Pertamina, Subsidiaries and B to B with other companies with capacity up to 80 MW.

Pertamina's efforts to encourage people to use environmentally friendly fuel to comply with the Regulation of the Minister of Environment and Forestry No. 20 of 2017 on the New Type of Automotive Gas Disposal Cycle of New Type Category M, N, and O, which began in 2018 gradually until 2021, the Government will apply low sulfur fuel, with EURO 4 standards.

To meet the regulation, Pertamina this year has produced low sulfur fuel as per EURO 4 standards. Among them are Pertamax Turbo High Quality and Pertamax High Quality in RU VI Balongan, Pertamax High Quality in RU IV Cilacap, and Pertadex High Quality in RU II Dumai and RU V Balikpapan.

Such environmentally friendly fuel production has also affected the pattern of changes in public consumption. Premium consumption (Ron 88) has shifted to quality fuel products, where the composition of gasoline fuel consumption in the nine-month period 2017, is Premium reached 39.9 percent, Pertalite (RON 90) 42.21 percent, Pertamax (RON 92) of 17 , 1 percent and Pertamax Turbo (RON 98) of 0.8 percent.

Similarly, the composition of diesel fuel consumption also experienced a shift. In September 2017, diesel consumption composition recorded Solar / Bio 96.4 percent, Dexlite 2.3 percent and Pertamina Dex 1.3 percent.

Meanwhile, to encourage national energy security, Pertamina continues the mega development project of the refinery, keeping in mind the precautionary principle and adhering to the timeliness of realistic project implementation.

Pertamina will also raise the fuel product standard of RDMP (Rennery Development Masterplan Program) projects in which all BBM products produced will be EURO V standard.

In the upstream sector, Pertamina has realized one of the government's priority projects, the unitization of the Tiung Biru Jambaran Field, which has been grounded in September 2017. The field has a high complexity with 34% CO2 content, 330 million cubic feet per day (MMSCFD) and gas production of 172 MMSCFD.

Tiung Biru's can overcome the gas supply deficit and revive the industry in Java when and East Java, with gas reserves of 2.5 trillion cubic feet (TCF). In this project, Pertamina has invested US $ 1.547 billion. Currently Pertamina is also focusing on preparing for the management of the Mahakam Block which will start in January 2018.

"We want to make sure that the management of the gas field in Kutai East Kalimantan is going well. In this year we will drill 15 wells projected to produce on January 1, 2018 when Pertamina becomes operator "said Massa.

IN INDONESIA

Pertamina Cetak Laba US$ 1,9 M

Di saat berbagai tantangan yang dihadapi perusahaan selama 9 bulan pada 2017, PT Pertamina tetap mencetak laba sebesar US$ 1,99 miliar. Hal ini karena adanya peningkatan kinerja operasi dan efisiensi yang dapat menahan Iaju peningkatan Cost of Goods Sold (COGS) dan operating expenditure (Opex) hanya di tingkat 27%. 

“Pertamina masih tetap bisa mencatatkan laba, di saat penugasan dalam penyediaan Bahan Bakar Minyak (BBM) bagi masyarakat di seluruh Indonesia, dengan harga sesuai ketetapan pemerintah. 

    Pertamina juga secara maksimal melakukan langkah-langkah penghematan dari pengadaan di sektor hulu dan hilir tanpa mengganggu operasional dan tidak mengurangi kualitas,”kata Direktur Utama Pertamina Elia Massa Manik kepada wartawan saat paparan Kinerja Kuartal III 2017 di Jakarta, Kamis (2/10).

Tercatat, harga minyak mentah ICP rata-rata selama 9 bulan 2017 naik 29 persen dari periode yang sama pada 2016. Pendapatan Pertamina hanya naik 18 persen, yakni dari US$ 26,62 miliar menjadi US$ 31,38 miliar dengan amanat pendistribusian BBM PSO dengan harga yang tidak berubah.

Massa menambahkan apabila mengacu pada formula penghitungan harga BBM, kinerja keuangan Pertamina lebih baik, dimana pendapatan bisa mencapai US$ 32,8 miliar dan nett income US$ 3,05 miliar. 

      Namun demikian, Massa menekankan bahwa selisih pendapatan tersebut telah dikembalikan sebagai kontribusi Pertamina kepada masyarakat, untuk menutup selisih harga jual BBM sebesar US$ 1,42 miliar (sekitar Rp 19 triliun), belum termasuk kontribusi dalam bentuk PPN dan PBBKB. Walaupun, nilai tersebut sangat dibutuhkan Pertamina untuk investasi di sektor hulu, kilang dan proyek-proyek strategis lainya.

Kinerja positif juga diperoleh dari produksi minyak sepanjang Januari-September 2017 mencapai 342 ribu barel per hari (MBOPD) atau tumbuh 11% dibandingkan periode sama 2016 sebesar 309 MBOPD. Sedangkan, produksi gas tumbuh 4% dari 1.953 jula kaki kubik per hari (MMSCFD) pada periode januari-September 2016, menjadi 2.030 MMSCFD pada periode yang sama 2017. Sehingga total produksi minyak dan gas mengalami kenaikan 7 persen, dari 646 ribu barel sementara minyak per hari (MBOEPD) menjadi 693 MBOEPD.

Sementara itu, kinerja panas bumi mengalami pertumbuhan cukup signifikan yakni 31 persen dari 2.233 (Giga Watt Hour (GWh) pada sembilan bulan pertama 2016 menjadi 2.932 pada periode sama tahun 2017.

“Peningkatan produksi geothermal Pertamina menunjukkan komitmen tinggi perusahaan terhadap pengembangan energi baru terbarukan yang ramah lingkungan, serta mendorong peningkatan rasio elektrifikasi dari panas bumi dengan kapasitas terpasang Pembangkit Listrik Tanaga panas Bumi yang saat ini mencapai 587 MW," kata Massa.

Di bidang New & Renewable Energy (NRE) untuk kelistrikan, Pertamina telah mengembangkan beberapa Inisiatif yaitu, Proyek PLTS di di wilayah kerja Pertamina, Anak Perusahaan dan B to B bersama perusahaan lain dengan kapasitas hingga 80 MW. 

Upaya Pertamina mendorong masyarakat menggunakan bahan bakar ramah lingkungan guna memenuhi Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 20 Tahun 2017 tentang Baku Mutu Emisi Gas Buang Kendaraan Bermotor Tipe Baru Kategori M, N, dan O, dimana mulai tahun 2018 secara bertahap hingga tahun 2021, Pemerintah akan menerapkan BBM berkadar sulfur rendah, dengan standar EURO 4.

Untuk memenuhi aturan tersebut, Pertamina di tahun ini telah menghasilkan BBM rendah sulfur sesuai standar EURO 4. Diantaranya Pertamax Turbo High Quality dan Pertamax High Quality di RU VI Balongan, Pertamax High Quality di RU IV Cilacap, serta Pertadex High Quality di RU II Dumai dan RU V Balikpapan.

Produksi BBM ramah lingkungan tersebut juga telah mempengaruhi pola perubahan konsumsi masyarakat. Konsumsi Premium (Ron 88)  telah bergeser ke produk BBM berkualitas, dimana komposisi konsumsi BBM jenis gasoline pada periode sembilan bulan 2017, adalah Premium mencapai 39,9 persen, Pertalite (RON 90) 42,21 persen, Pertamax (RON 92) sebesar 17,1 persen dan Pertamax Turbo (RON 98) sebesar 0,8 persen.

Demikian pula, komposisi konsumsi BBM jenis diesel juga mengalami pergeseran. Pada September 2017, komposisi konsumsi diesel tercatat Solar/ Bio 96,4 persen, Dexlite 2,3 persen dan Pertamina Dex 1,3 persen.

Sementara itu, untuk mendorong ketahanan energi nasional, Pertamina terus melanjutkan mega proyek pengembangan kilang, dengan tetap memperhatian prinsip kehati-hatian dan berpegang pada tata waktu pelaksanaan proyek yang realistis.

Pertamina juga akan meningkatkan standar produk BBM proyek-proyek RDMP (Rennery Development Masterplan Program) dimana seluruh produk BBM yang dihasilkan akan berstandar EURO V.

Di sektor hulu, Pertamina telah merealiasasikan salah satu proyek prioritas pemerintah yakni unitisasi Lapangan Jambaran Tiung Biru, yang sudah groundberaking pada September 2017. Lapangan yang memiliki kompleksitas tinggi dengan kandungan CO2 34%, fasilitas pemrosesan gas 330 juta kaki kubik per hari (MMSCFD), dan produksi gas jual 172 MMSCFD. 

Jambaran Tiung Biru dapat mengatasi defisit pasokan gas dan menghidupkan industri di Jawa saat dan Jawa Timur, dengan cadangan gas sebesar 2.5 triliun kaki kubik (TCF). Dalam proyek ini, Pertamina telah menginvestasikan dana sebesar US$ 1,547 miliar.

     Saat ini Pertamina juga fokus untuk mempersiapkan alih kelola Blok Mahakam yang akan dimulai pada Januari 2018. 

“Kami ingin memastikan alih kelola ladang gas di Kutai Kalimantan Timur itu berlangsung sebaik-baiknya. Di tahun ini kami akan mengebor 15 sumur yang diproyeksikan berproduksi pada 1 Januari 2018 saat Pertamina menjadi operator" pungkas Massa.

Investor Daily, Page-9, Friday, Nov 3, 2017