Oil and Gas Production Up 40 Percent

PT Pertamina (Persero) officially get additional management of two oil and gas blocks whose term of contract termination (termination) in 2019. Two blocks of oil and gas is believed to boost oil and gas production next year. Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Djoko Siswanto said, with the addition of Working Area (WK / WA), Pertamina's total oil and gas production nationally rose from 20 percent to 39-40 percent.

"We hope Pertamina can maintain the production," he said at the Ministry of Energy and Mineral Resources.

This figure makes Pertamina's share in national oil and gas production able to surpass Petronas. Production of Malaysia's national oil and gas company only reached 33 percent. Four blocks of oil and gas termination in 2019 are Jambi Merang Working Area, Working Area of ​​Raja / Pendopo, Non-Bitter Seram Work Area, and Bula Working Area. 

    Among the 4 Working Areas, Jambi Merang is the most potential. The level of oil production is greatest, reaching 3,706 barrels per day (bpd) at 20 17. Oil production of three other Working Areas is less than 2,000 bpd.

Kalrez Petroleum (Seram) Ltd

Pertamina only takes two termination areas in full (100 percent) through its affiliated companies, namely Jambi Merang Working Area and Working Area of ​​Raja / Pendopo. While the other 2 Work Areas, namely Non-Bula Seram and Bula, are determined to be managed by existing contractors. Each of CITIC Seram Energy Limited and Kalrez Petroleum (Seram) Ltd. 

     Therefore, Pertamina does not apply for management for the two Work Areas. The contract period for the four Work Areas is 20 years with a gross split sharing scheme.

With the addition of the four Working Areas, the oil and gas block contract with the gross split scheme becomes 20. The total signature bonus to be received by the government amounts to USD 20,298,000 or equivalent to Rp 285. The estimated total investment commitment of a five year definite work of USD 308,992,000 or Rp 4.3 trillion. 

      Nicke Widyawati, President Director of PT Pertamina Tbk Nicke Widyawati, said that the additional production of oil and gas blocks can be significant in the next 2-3 years.

Nicke Widyawati

"We need to realize, indeed Pertamina production needs to be more aggressive again," said Nicke.

Nevertheless, it only chose to manage oil and gas blocks with a large capacity. Therefore, Pertamina can not only spend upstream investment funds. It still has to invest in midstream (intermediary industry) and downstream (downstream). For Jambi Merang Working Area, in 2019 Pertamina intends to pour funds of USD 2 14 million, including for exploration to get discovery of oil and gas. According to Upstream Director of PT Pertamina (Persero) Syamsu Alam, for gas, reservoir capacity could be increased to 120 mmscfd.

"However, the problem is, the buyers do not exist yet, and there is potential for LPG as well because there are fractions" he said.

IN INDONESIA

Produksi Migas Naik Jadi 40 Persen

PT Pertamina (Persero) resmi mendapat tambahan pengelolaan dua blok migas yang masa kontraknya habis (terminasi) pada 2019. Dua blok migas tersebut diyakini akan mendongkrak produksi migas perseroan tahun depan. Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto mengatakan, dengan tambahan Wilayah Kerja (WK/WA) tersebut, total produksi migas Pertamina secara nasional naik dari 20 persen menjadi 39-40 persen.

"Kami berharap Pertamina bisa mempertahankan produksi itu,” ujarnya di Kementerian ESDM.

Angka tersebut membuat bagian Pertamina dalam produksi migas nasional mampu mengungguli Petronas. Produksi perusahaan migas nasional milik Malaysia itu hanya mencapai 33 persen, Empat blok migas terminasi pada 2019 tersebut adalah Wilayah Kerja Jambi Merang, Wilayah Kerja Raja/Pendopo, Wilayah Kerja Seram Non-Bula, dan Wilayah Kerja Bula. 

    Di antara 4 Wilayah Kerja tersebut, Jambi Merang paling potensial. Tingkat produksi minyaknya paling besar, yakni mencapai 3.706 barel per hari (bph) pada 20 17. Produksi minyak tiga Wilayah Kerja lain kurang dari 2.000 bph.

Pertamina hanya mengambil dua Wilayah Kerja terminasi secara penuh (100 persen) melalui perusahaan afiliasinya, yaitu Wilayah Kerja Jambi Merang dan Wilayah Kerja Raja/ Pendopo. Sedangkan 2 Wilayah Kerja lain, yaitu Seram Non-Bula dan Bula, ditetapkan dikelola kontraktor kerja existing. 

    Masing-masing CITIC Seram Energy Limited dan Kalrez Petroleum (Seram) Ltd. Sebab, Pertamina memang tidak mengajukan permohonan pengelolaan untuk dua Wilayah Kerja tersebut. Jangka waktu kontrak untuk empat Wilayah Kerja itu adalah 20 tahun dengan skema bagi hasil migas (gross split).

Dengan tambahan empat Wilayah Kerja itu, kontrak blok migas dengan skema gross split menjadi 20. Total bonus tanda tangan (signature bonus) yang akan diterima pemerintah sebesar USD 20,298,000 atau setara Rp 285. Perkiraan total investasi komitmen kerja pasti lima tahun sebesar USD 308.992.000 atau Rp 4,3 Triliun. 

     Pelaksana tugas Direktur Utama PT Pertamina (Persero) Tbk Nicke Widyawati mengatakan, tambahan produksi dari blok-blok migas tersebut dapat terasa signifikan dalam kurun waktu 2-3 tahun ke depan.

"Kami perlu sadari, memang produksi Pertamina perlu lebih agresif lagi,” ucap Nicke.

Meski demikian, pihaknya hanya memilih untuk mengelola blok migas dengan kapasitas yang besar. Sebab, Pertamina tidak bisa hanya menghabiskan dana investasi di hulu. Pihaknya masih harus berinvestasi di midstream (industri perantara) maupun downstream (hilir). 

     Untuk Wilayah Kerja Jambi Merang, pada 2019 Pertamina berniat menggelontorkan dana USD 2 14 juta, termasuk buat eksplorasi agar bisa mendapatkan discovery migas. Menurut Direktur Hulu PT Pertamina (Persero) Syamsu Alam, untuk gas, reservoir capacity bisa ditingkatkan menjadi 120 mmscfd.

"Tetapi, problemnya, pembelinya belum ada. Dan, ini ada potensi untuk LPG juga karena ada fraksi-fraksi" katanya.

Jawa Pos, Page-6, Saturday, May 12, 2018

Contractor Existing Interest Continue Management of Oil and Gas Blocks Termination

The Ministry of Energy and Mineral Resources (ESDM) notes that the existing contractors are still interested in managing four oil and gas blocks that have finished their contracts in 2019. Determination of the four terminations block managers has been done on Friday (May 11)

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that some of the existing contractors are interested to remain involved in the management of four oil and gas blocks, namely Jambi Merang, Bula, Seram Non Bula, and Pendopo and Raja. Currently, several oil and gas companies are involved in the management of one oil and gas block.

"Before I came to Japan, Kalrez had proposed that Pertamina had proposed for Pendopo-Raja and Jambi Merang, as well as contractors of Ceram Non Bula as well," he said in Jakarta.

   

Currently, Pendopo and Raja is managed by Joint Operating Body (JOB) of Pertamina Golden Spike Energy Indonesia, where PT Golden Spike and PT Pertamina Hulu Energi Raja Tempirai hold 50% participation rights. Furthermore, Bula Block is currently managed by Kalrez Petroleum (Seram) Ltd with 100% ownership interest.

Next, the Seram Non Bula Block is operated by CITIC Seram Energy Limit with ownership interest of 51% with KUFPEC partners 30%, Gulf Petroleum 16.5% and Lion Energy 2.5%. Finally, Jambi Merang Block is operated by JOB Pertamina-Talisman Jambi Merang where Pertamina holds 50% participation rights, Talisman 25%, and Pacific Oil and Gas Indonesia 25%.

According to him, the government is still discussing the determination of the managers of four blocks of oil and gas termination, including the amount of signature bonus and investment commitment tonight. After the technical discussions are completed and all parties agree, the plan of the management of this manager has been announced on Friday (May 115)

"Once completed, after the technical completion and Vice Minister of EMR Arcandra Tahar and Minister of Energy and Mineral Resources Ignatius Jonan said okay, Friday held a press conference," said Djoko. Earlier, Director of Upstream Oil and Gas Upstream Business Development of the Ministry of Energy and Mineral Resources, Ediar Usman, said that the existing contractors must apply for the continuation of oil and gas blocks management before the government makes a decision.

"Later SKK Migas call (existing contractor), able not (to meet the terms and conditions). If you can not afford it, leave it alone, "he explained.

Previously, the government issued Regulation of the Minister of Energy and Mineral Resources No. 23 of 2018 on the management of oil and gas working areas that ended his contract. In this beleid, the order of terminating oil and gas blocks management is the extension of PSC by the contractor, the management by Pertamina, then the joint management between the contractor and Pertamina.

Arcandra once revealed that Ministerial Regulation 23/2018 is intended to keep the oil and gas production from terminating oil and gas blocks not falling towards the end of the contract. This Ministerial Regulation is expected to provide investment certainty for oil and gas companies. The contract form for the new contract will still use the gross split scheme.

Referring to data from the Ministry of Energy and Mineral Resources, there are 21 oil and gas blocks that will expire in 2019-2026, including four oil and gas blocks that expired in 2019 earlier. In 2020, Block J Block South Bl, Brantas, Salawati Bird's Head, Malacca Strait, Makassar Strait, and Onshore Salawati Basin will be completed by contract. 

      In 2021, the contracted block is the Bentu Segat Block, the Long Strait, and the Rokan-Block which produces the largest oil in Indonesia. In 2022, following the Tarakan East Block, Coastal Plains and Pekanbaru, Bengkal, and Sengkang will be completed by contract.

Furthermore in 2023, Rimau Block, Jabung, and Corridor. The Corridor Block is one of the largest blocks of gas production in Indonesia by Conoco Philips. In 2025, the Bangko Block will be upon completion of its contract.

IN INDONESIA

Kontraktor Eksisting Berminat Lanjutkan Pengelolaan Blok Migas Terminasi

Kementerian Energi dan Sumber Daya Mineral (ESDM) mencatat kontraktor eksisting masih berminat mengelola empat blok migas yang selesai kontraknya pada 2019. Penetapan pengelola empat blok terminasi ini sudah dilakukan Jumat (11 Mei) 

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto menuturkan, sebagian kontraktor eksisting berminat tetap terlibat dalam pengelolaan empat blok migas terminasi, yakni Blok Jambi Merang, Bula, Seram Non Bula, serta Pendopo dan Raja. Saat ini, beberapa perusahaan migas terlibat dalam pengelolaan satu blok migas.

“Sebelum saya ke Jepang, Kalrez sudah mengajukan, Pertamina sudah mengajukan untuk Pendopo-Raja dan Jambi Merang, serta kontraktor Seram Non Bula juga sudah,” kata dia di Jakarta.

Saat ini, Blok Pendopo dan Raja dikelola oleh Joint Operating Body (JOB) Pertamina Golden Spike Energy Indonesia, di mana PT Golden Spike dan PT Pertamina Hulu Energi Raja Tempirai memegang hak partisipasi 50%. Selanjutnya, Blok Bula saat ini masih dikelola Kalrez Petroleum (Seram) Ltd dengan kepemilikan saham partisipasi 100%.

Berikutnya, Blok Seram Non Bula dioperatori CITIC Seram Energy Limit dengan kepemilikan hak partisipasi 51% bersama mitra KUFPEC 30%, Gulf Petroleum 16,5%, dan Lion Energy 2,5%. Terakhir, Blok Jambi Merang dioperatori oleh JOB Pertamina-Talisman Jambi Merang di mana Pertamina memegang hak partisipasi 50%, Talisman 25%, dan Pacific Oil and Gas Indonesia 25%. 

Menurut dia, pemerintah masih membahas soal penetapan pengelola empat blok migas terminasi ini, termasuk besaran bonus tanda tangan dan komitmen investasi pada malam ini. Setelah pembahasan teknis selesai dan semua pihak sepakat, rencananya penetapan pengelola ini sudah diumumkan pada Jumat (115 Mei)

“Begitu selesai, setelah teknis selesai dan Wakil Menteri ESDM Arcandra Tahar serta Menteri ESDM Ignasius Jonan bilang oke, Jumat diadakan press conference,” tutur Djoko. Sebelumnya, Direktur Pembinaan Usaha Hulu Minyak dan Gas Bumi Kementerian ESDM Ediar Usman mengungkapkan, kontraktor eksisting harus mengajukan permohonan kelanjutan pengelolaan blok migas sebelum pemerintah membuat keputusan.

“Nanti SKK Migas panggil (kontraktor eksisting), sanggup tidak (memenuhi terms and condition). Kalau tidak sanggup, biarkan saja,” jelas dia.

Sebelumnya, pemerintah menerbitkan Peraturan Menteri ESDM No 23 Tahun 2018 tentang pengelolaan wilayah kerja migas yang berakhir kontraknya. Dalam beleid ini, urutan pengelolaan blok migas terminasi yakni perpanjangan PSC oleh kontraktor, pengelolaan oleh Pertamina, kemudian pengelolaan bersama antara kontraktor dan Pertamina. 

Arcandra pernah mengungkapkan, Peraturan Menteri 23/2018 dimaksudkan untuk menjaga agar produksi migas dari blok migas terminasi tidak turun menjelang kontrak berakhir. Peraturan Menteri ini diharapkan memberikan kepastian investasi bagi perusahaan migas. Bentuk kontrak untuk kontrak baru nantinya tetap menggunakan skema bagi hasil kotor (gross split).

Mengacu pada data Kementerian ESDM, terdapat 21 blok migas yang akan berakhir pada 2019-2026, termasuk empat blok migas yang habis pada 2019 tadi. Pada 2020, Blok South Jambi Block B, Brantas, Salawati Kepala Burung, Malacca Strait, Makassar Strait, serta Onshore Salawati Basin akan rampung kontraknya. 

     Pada 2021, blok yang terminasi kontraknya adalah Blok Bentu Segat, Selat Panjang, dan-Blok Rokan yang menghasilkan minyak terbesar di Indonesia. Pada 2022, menyusul Blok Tarakan East, Coastal Plains and Pekanbaru, Bengkal, serta Sengkang bakal rampung kontraknya.

Selanjutnya di 2023, Blok Rimau, Jabung, dan Koridor. Blok Koridor merupakan salah satu blok dengan produksi gas sangat besar di Indonesia yang dikerjakan Conoco Philips. Di 2025, Blok Bangko akan setelah selesai kontrak-nya.

Investor Daily, Page-9, Friday, May 11, 2018

The Government curbed the multilevel Gas Trader

The government has completed 10 cases of multilevel sale in one pipeline (multilevel trader). The gas sales company involved in the case will be revoked of its business license. Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (EMR) Djoko Siswanto said that in solving the case of this multilevel trader, the government has set up a gas sales company serving customers on the pipeline. Furthermore, the designated company is negotiating with another gas sales company that also through the pipeline.

"Our multi-story traders have been eradicated, revoked all permits. For example there are three traders, who serve one company only, two other companies revoked their permission. Later b to b alone the three of them said he was in Jakarta.

Elimination of multilevel traders is mandate of Minister of Energy and Mineral Resources Regulation no. 6 of 2016 on the provisions and procedures for determining the allocation and utilization and the price of natural gas. Article 35 Paragraph 2 of Regulation of the Minister of 6/2016 states that the implementation of natural gas trading business activities other than to the end user may be executed at the latest within two years from the prevailing regulation. 

     Precisely, this deadline is February 24, 2018. Djoko explains, from these 10 cases, there is still one unfinished case in Bekasi, West Java. The gas business company involved in the case asked for time to report to the Bekasi Regent on this matter. Because the change in the number of traders this gas will affect the regional revenue.

"Once cleared, b to b is up to the gas sales company, but report to the local government first," he said.

For the gas supply previously allocated to the company whose license was revoked, it said it would be transferred to another designated company serving the consumers. It will make a letter of transfer of gas allocation as soon as possible. After the removal of the multilevel trader, the price of gas to the consumer will follow the provisions in Regulation of Minister of Energy and Mineral Resources no. 58 of 2017 on the price of natural gas through pipelines on downstream oil and gas business activities. 

     The commercial cost as referred to in Article 4 paragraph 2 shall be the maximum of 7% of the natural gas price. When gas distribution through two commercial business entities is facilitated to reach the final consumer, commercial costs are divided into these two business entities. However, he can not confirm what the price of gas.

"If the philosophy, multilevel traders do not exist, the price of gas is reduced," said Djoko.

The implementation of gas price will be effective after adjustment of gas purchase agreement (PJBG) with the consumer. Previously, the Chairman of Indonesia Natural Gas Trader Association GNGTA) Sabrun Jamil asked the government not to get out of hand by telling the business entity to complete the business. The reason, business entities are also prosecuted by employees and banks as lenders. In addition, in some cases, there are regional enterprises (BUMD) involved.

"Finishing it is not easy, there are accounts receivable, infrastructure, employees. We are trying to solve but business problems are not an easy matter. We are negotiating with all stakeholders, "he said.

Sabrun proposed another way out of the case of this multilevel trader, by waiting for a gas sale and purchase contract. For the time being, it proposes that the ongoing contract remains respected.

"The average contract is not long anymore. There is also a long-term contract, "he said.

IN INDONESIA

Pemerintah Menertibkan Trader Gas Bertingkat

Pemerintah telah menyelesaikan 10 kasus jual beli bertingkat dalam satu ruas pipa (trader bertingkat). Perusahaan penjual gas yang terlibat dalam kasus ini akan dicabut izin usahanya. Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto mengatakan, dalam menyelesaikan kasus trader bertingkat ini, pemerintah menetapkan satu perusahaan penjual gas yang melayani konsumen pada ruas pipa tersebut. Selanjutnya, perusahaan yang ditunjuk ini negosiasi dengan perusahaan penjual gas lain yang juga melalui ruas pipa tersebut. 

“Trader bertingkat sudah kami berantas, dicabut semua izinnya. Misalnya tradernya ada tiga, yang melayani satu perusahaan saja, dua perusahaan lainnya dicabut izinnya. Nanti b to b saja mereka bertiga kata dia di Jakarta.

Penghapusan trader bertingkat merupakan amanat Peraturan Menteri ESDM No. 6 Tahun 2016 tentang ketentuan dan tata Cara penetapan alokasi dan pemanfaatan serta harga gas bumi. Pasal 35 Ayat 2 Peraturan Menteri 6/2016 menyatakan bahwa pelaksanaan kegiatan usaha niaga gas bumi selain kepada pengguna akhir dapat dilaksanakan paling lama dua tahun sejak regulasi tersebut berlaku. 

     Tepatnya, batas waktu ini yakni 24 Februari 2018. Djoko menjelaskan, dari 10 kasus ini, masih terdapat satu kasus yang belum selesai yakni di Bekasi, Jawa Barat. Perusahaan bisnis gas yang terlibat dalam kasus ini meminta waktu untuk melapor kepada Bupati Bekasi terhadap hal ini. Pasalnya, perubahan jumlah trader gas ini akan berpengaruh kepada pendapatan daerah.

“Setelah dibereskan, b to b terserah perusahaan penjual gas, tetapi lapor ke pemerintah daerah dulu,” ujarnya.

Untuk pasokan gas yang sebelumnya merupakan alokasi perusahaan yang dicabut izinnya ini, dikatakannya akan dialihkan ke perusahaan lain yang ditunjuk melayani konsumen. Pihaknya akan membuat surat pengalihan alokasi gas ini secepatnya. Pasca dihapusnya trader bertingkat, harga gas ke konsumen akan mengikuti ketentuan dalam Peraturan Menteri ESDM No. 58 Tahun 2017 tentang harga gas bumi melalui pipa pada kegiatan usaha hilir migas. 

     Biaya niaga sebagaimana dimaksud dalam Pasal 4 Ayat 2 ditetapkan paling besar 7% dari harga gas bumi. Bila penyaluran gas melalui dua badan usaha niaga berfasilitas untuk mencapai konsumen akhir, biaya niaga dibagi ke dua badan usaha tersebut. Namun, dia tidak dapat memastikan berapa harga gasnya.

“Kalau filosofinya, trader bertingkat tidak ada, harga gas berkurang,” tutur Djoko. 

Pemberlakuan harga gas ini akan efektif setelah ada penyesuaian perjanjian jual beli gas (PJBG) dengan konsumen. Sebelumnya, Ketua Indonesia Natural Gas Trader Association GNGTA) Sabrun Jamil meminta pemerintah jangan lepas tangan dengan menyuruh badan usaha merampungkan secara bisnis. Pasalnya, badan usaha juga dituntut oleh karyawan dan bank selaku pemberi pinjaman. Selain itu, dalam beberapa kasus, terdapat badan usaha milik daerah (BUMD) yang terlibat.

“Menyelesaikannya tidak mudah, ada utang piutang, infrastruktur, karyawan. Kami berusaha menyelesaikan tapi masalah bisnis bukan perkara mudah. Kami sedang berunding dengan semua stakeholder,” tutur dia.

Sabrun mengusulkan jalan keluar lain dari kasus trader bertingkat ini, yakni dengan menunggu kontrak jual beli gas. Untuk sementara, pihaknya mengusulkan agar kontrak yang masih berlangsung tetap dihormati. 

“Rata-rata kontraknya tidak lama lagi. Ada juga yang masih lama kontraknya,” kata dia.

Investor Daily, Page-9, Friday, May 11, 2018

Boster Production for Consumption Balancing

Oil and gas production in Indonesia is not proportional to the consumption needs of society and industry. Production ranges from 700,000 to 800,000 barrels per day, while its consumption reaches 1.6 million barrels per day. While the gas supply is 7,651 million standard cubic feet per day or MMSCFD and demand reaches 9,323 MMSCFD. The shortage of production is still filled with imports.

Head of Oil and Gas Special Working Unit The representative of Java Bali Nusa Tenggara (Jabanusa) Ali Masyhar in Gresik-East Java stated that production should be increased by finding new sources of oil and gas. Another thing is also the need to innovate the utilization of non-fossil energy sources, such as geothermal, solar, water, and wind for the transportation and industrial sectors.

"If there is no supply of energy, essentially a country is dead. Industry can stop. Transportation needs fuel oil, power plant still use gas and diesel, "Ali said in a workshop attended by journalists and representatives of contractor contracting companies (KKKS) of oil and gas sector.

East Java is still a source of oil and gas. Of the 800,000 barrels per day of national oil production, 30 percent of it is from oil and gas fields in East Java. East Java also contributes 10-12 percent of the total gas supply in Indonesia.

Head of Monetization and Commercialization Division of Oil and Gas Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) Waras Budi Santoso said, East Java still save the potential of gas from the field offshore. However, there are several factors that inhibit exploration and exploitation until the gas reaches the buyer. The inaccurate schedule of gas production makes KKKS already committed to produce potentially loss when potential consumers switch to diesel and coal.

Requested solid

Related to oil and gas, entrepreneurs who are members of the Indonesian Petroleum Association (IPA) from the Ministry of Energy and Mineral Resources are asked to guard solidity following a reprimand to the association. Rebuttal issued by SKK Migas related to the implementation of the 42nd IPA Convention and Exhibition in Jakarta on 2-4 May.

The strike signed by Head of SKK Migas Amien Sunaryadi contains two things, namely the inclusion of one of the panelists without the approval of the Vice Minister of EMR, Arcandra Tahar, and the result of the poll in one of the discussion sessions considered to corner Arcandra.

"Do not let this kind of thing interfere with the performance of both parties in the effort to improve the upstream oil and gas investment climate in Indonesia," said Deputy Chairman of Commission VII of the House of Representatives Eni Maulani Saragih in Jakarta.

The panelists are Fred McMahon of the Fraser Institute, an independent research institution. Related to the 2012 upstream oil and gas investment climate research, Fraser Institute put Indonesia on the list of the worst countries for investment with Venezuela, Libya, Iraq, Ecuador, Bolivia, California, Cambodia, France and Yemen.

About the results of the poll, there is the name of Arcandra among dozens of other writings. The most prominent feature of the results of this poll is the gross split (oil and gas production sharing scheme based on gross production).

IPA management has sent a reply addressed to the Minister of Energy and Mineral Resources Ignatius Jonan and Vice Minister of EMR Arcandra Tahar. In addition to thanking the government's support, IPA apologized for the use of the Fraser Institute survey results and the poll question was deemed abused by irresponsible people.

Kompas, Page-17, Friday, May 11, 2018

East Java Gas Manufacturer, HCML becomes Backbone

The East Java region is now a producer of oil and gas. As much as 30 percent of the 800 thousand Barrel of Day (BOD) national production, is met from oil and gas field production from East Java. As for gas, it is also very important.

     East Java is able to support 10 to 12 percent of the total gas supply in the country. Currently, in the SKK Migas Java Bali Nusa Tenggara (Jabanusa) working area, there are 32 cooperation contractor companies (KKKS) operating. And, 16 KKKS companies that are already in production.

Blogger Agus Purnomo in SKK Migas

Head of Representative of the Jabanusa Region Oil and Gas SKK Migas, Ali Masyhar illustrates that oil and gas production is declining because oil and gas are not renewable resources. However, SKK Migas Jabanusa and KSS in Jabanusa continue to increase production, especially crude oil every day.

"Currently, the highest production is in Cepu Block and efforts are increasing, but to increase production, it takes several efforts and it also costs a lot, while for gas can not be directly exploited, because it has to wait for the buyer first," said Ali Masyhar.

CNOCOC Madura Limited (HCML)

Especially for gas production, East Java still holds great potentials from offshore fields managed by Kangean Energy, CNOCOC Madura Limited (HCML), and Petronas Husky.

"There are four fields owned Husky ready to produce. The potential is quite large. Going forward, Husky will be a backbone in the supply of natural gas for energy East Java, "said Head of Oil and Gas Commercial Division of SKK Migas, Waras Budi Santoso.

Blogger Agus Purnomo in Petronas Carigali Ketapang

The problem is, many factors often hamper exploration and exploitation activities until the gas reaches the buyer's hands. The inappropriateness of this production schedule, which makes KKKS already committed to producing oil and gas, can be harmed because potential customers divert their needs to other mineral sources. For example diesel and coal. 

    For example, the gas production of Husky CNOOC Madura Limited (HCML) has been producing gas in Sampang Madura waters since 2017. Until now, not all the gas can be bought by the market. According to information, about 30 MMcfd of HCML gas production has not been purchased market maximally.

"This problem should be sought to solve the problem," said Waras Budi Santoso.

Special HCML gas from the field in offshore Sumenep which is expected to start production in late 2019, highly anticipated PT Petrokimia Gresik is now preparing to develop the factory Ammonia Urea II.

Harian Bangsa, Page-4, Friday, May 11, 2018

Gas Trading Administration Trimmed

The government is committed to cutting down the practice of multilevel gas trading with no more allocation of natural gas to gas trading companies that do not have infraservices.

The Ministry of Energy and Mineral Resources (ESDM) claimed that multilevel trading business actors had been eradicated. Minister of Energy and Mineral Resources Regulation no. 6/2016 Provisions and Procedures for the Determination of Allocation and Utilization of Natural Gas Price and Gas Allocation are void revised. Based on Regulation of Minister of Energy and Mineral Resources No. 6/2016, beginning February 24, 2018 there is no more multilevel gas trading practice. Beleid was published on February 24, 2016 and effective 2 years from the date of publication.

All gas trading business entities that receive gas allocation must directly sell to consumers, should not be sold to other business actors. The government has given 2 years to the multilevel gas trader to immediately clean up. However, until the deadline ends, there are still gas companies that still practice the multilevel gas trading system.

At the end of February 2018, the EMR Ministry confirmed it would not revise the beleid. However, in early April 2016, the government has drafted revisions to the Regulation of the Minister of Energy and Mineral Resources. 6, so that companies that still practice multilevel gas trading can continue to operate until the contract is completed.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that the Minister of Energy and Mineral Resources Regulation no. 6/2016 not so revised. The multilevel gas trading practices carried out by 10 companies, he said, have been resolved.

"Later, multi-level trader permits are revoked. For example, a multilevel trader will have three layers, then one will remain, while the other two will be B to B [business mechanism] solving the problem, "he said.

Djoko said that in the process of curbing the commercial actors of multilevel gas, it will revoke the gas allocation owned by gas companies that still run the commercial practice of storied. Later on, the revocation of gas allocation will require a decision letter from the Minister of Energy and Mineral Resources.

"After that, the business license of the multi-storey trader waiting to be revoked in accordance with the rules only. Moreover, if you do not have gas allocation, gas traders also have no activity anymore, "he said.

Previously, the problem of multilevel gas trading is very complicated because two cases of 10 cases have not agreed to follow the provisions of Regulation of Minister of Energy and Mineral Resources. 6/2016. However, the two cases are said to have been completed and are in the process of completion. Majority of the problem of multilevel gas niagas occur in the area of ​​West Java and East Java. The total companies involved in the multilevel gas trading practice reached 20 companies. Djoko said, one and two cases of multilevel traders were completely finished, while one more case is still in process.

"One case is in the Bekasi region of West Java, they are reporting to the Bupati because it is related to regional income. Once the regional issue is over, B to B will continue up to them, "he said.

POSITIVE RESPONSE

Although the Ministry of ESDM canceled the revision of Minister of Energy and Mineral Resources Regulation no. 6/2016, Indonesia Natural Gas Trader Asocialion (INGTA) continues to respond positively to the policy. Chairman of INGTA Sabrun Jamil said it responded positively to the government's decision because the ESDM Ministry is not as rigid as before.

"Thus, although Minister of Energy and Mineral Resources Regulation no. 6/2016 is revised, but the EMR Ministry is not rigid in its efforts to resolve the problems of multilevel traders. "

In addition to trade management issues, natural gas prices are expected to begin adjusting according to Minister of Energy and Mineral Resources Regulation no. 58/2017 on Purchase Price of Natural Gas through Pipes in Downstream Oil and Gas Business Activities, gas trading margin is a maximum of 7% especially when multilevel gas trading system no longer exists. Djoko hopes that the price of natural gas can be adjusted according to the Minister of Energy and Mineral Resources Regulation S8 despite the maximum period of 18 months after the issuance, which is at the end of 2018.

According to him, the price of natural gas from the practice of long gas disuibusi chain that will change after there is an adjustment on the gas sale and purchase agreement. Sabrun added that the issue of gas price change is in the hands of BPH Migas. The gas company will follow the existing provisions only. However, the BPH Migas Committee member Jugi Prajogo was reluctant to comment further, especially related to the Minister of Energy and Mineral Resources Regulation no. 6/2016.

IN INDONESIA

Tata Niaga Gas Dipangkas

Pemerintah  berkomitmen untuk memangkas praktik tata niaga gas bertingkat dengan tidak lagi memberikan alokasi gas bumi kepada perusahaan niaga gas yang tidak memiliki infrasfruktur.

Kementerian Energi dan Sumber Daya Mineral (ESDM) mengklaim pelaku usaha niaga gas bertingkat sudah diberantas. Peraturan Menteri ESDM No. 6/2016 Ketentuan dan Tata Cara Penetapan Alokasi dan Pemanfaatan Serta Harga Gas Bumi Alokasi Gas batal direvisi. Berdasarkan Peraturan Menteri ESDM No. 6/2016, mulai 24 Februari 2018 tidak ada lagi praktik tata niaga gas bertingkat. Beleid itu terbit pada 24 Februari 2016 dan berlaku efektif 2 tahun sejak terbit.

Seluruh badan usaha niaga gas yang mendapatkan alokasi gas bumi harus langsung menjual ke konsumen, tidak boleh dijual ke pelaku usaha lain. Pemerintah telah memberikan waktu 2 tahun kepada trader gas bertingkat untuk segera berbenah. Namun, hingga tenggat berakhir, masih ada perusahaan gas yang masih tetap mempraktikkan tata niaga gas bertingkat.

Pada akhir Februari 2018, Kementerian ESDM menegaskan tidak akan merevisi beleid itu. Namun, pada awal April 2016, pemerintah sudah menyusun draf revisi Peraturan Menteri ESDM No. 6, agar perusahaan yang masih mempraktikan tata niaga gas bertingkat bisa terus beroperasi sampai kontrak selesai.

Dirjen Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto mengatakan, Peraturan Menteri ESDM No. 6/2016 tidak jadi direvisi. Praktik tata niaga gas bertingkat yang dilakukan oleh 10 perusahaan, katanya, sudah diselesaikan. 

“Nantinya, izin trader bertingkat dicabut semua. Misalnya, trader bertingkat ada tiga lapis, nanti akan tersisa satu saja, sedangkan dua perusahaan lainnya akan B to B [mekanisme bisnis] menyelesaikan persoalan,” ujarnya.

Djoko menuturkan, dalam proses penertiban pelaku niaga gas bertingkat, pihaknya akan mencabut alokasi gas yang dimiliki oleh perusahaan gas yang masih menjalankan praktik niaga bertingkat. Nantinya, untuk pencabutan alokasi gas itu akan membutuhkan surat keputusan dari Menteri ESDM.

“Setelah itu, izin usaha trader bertingkat menunggu dicabut sesuai dengan peraturan saja. Lagipula, kalau sudah tidak punya alokasi gas, para trader gas juga sudah tidak ada kegiatan lagi,” tuturnya. 

Sebelumnya, persoalan tata niaga gas bertingkat sangat rumit karena dua kasus dari 10 kasus belum setuju untuk mengikuti ketentuan Peraturan Menteri ESDM No. 6/2016. Namun, dua kasus itu disebut sudah selesai dan sedang melakukan proses penyelesaian. Mayoritas persoalan tata niagas gas bertingkat terjadi di kawasan Jawa Barat dan Jawa Timur. Total perusahaan yang terlibat dalam praktik tata niaga gas bertingkat itu mencapai 20 perusahaan. Djoko mengatakan, satu dan dua kasus trader bertingkat itu sudah selesai sepenuhnya, sedangkan satu kasus lagi masih dalam proses.

“Satu kasus itu di wilayah Bekasi Jawa Barat, mereka sedang lapor kepada Bupati karena terkait pendapatan daerah. Setelah persoalan daerah selesai, nanti berlanjut B to B terserah mereka,” ujarnya. 

RESPON POSITIF

Kendati Kementerian ESDM batal merevisi Peraturan Menteri ESDM No. 6/2016, Indonesia Natural Gas Trader Asocialion (INGTA) tetap merespons positif kebijakan tersebut. Ketua INGTA Sabrun Jamil mengatakan, pihaknya merespons positif keputusan pemerintah karena Kementerian ESDM tidak kaku seperti sebelumnya.

“Jadi, walaupun Peraturan Menteri ESDM No. 6/2016 batal direvisi, tetapi Kementerian ESDM tidak kaku dalam upaya penyelesaian berbagai persoalan trader bertingkat."

Selain persoalan tata niaga, harga gas bumi diharapkan langsung mulai menyesuaikan sesuai dengan Peraturan Menteri ESDM No. 58/2017 tentang Harga Jual Gas Bumi Melalui Pipa Pada Kegiatan Usaha Hilir Minyak dan Gas Bumi, margin niaga gas maksimal 7% terutama ketika tata niaga gas bertingkat sudah tidak ada lagi. Djoko berharap agar harga gas bumi dapat langsung menyesuaikan sesuai dengan Peraturan Menteri ESDM S8 kendati masa berlaku paling lama 18 bulan setelah peraturan terbit, yaitu pada akhir 2018.

Menurutnya, harga gas bumi dari praktik rantai disuibusi gas yang panjang itu pun akan berubah setelah ada penyesuaian pada perjanjian jual beli gas. Sabrun menambahkan, persoalan perubahan harga gas ada di tangan BPH Migas. Perusahaan gas akan mengikuti ketentuan yang ada saja. Namun, Anggota Komite BPH Migas Jugi Prajogo pun enggan berkomentar lebih jauh, terutama terkait dengan Peraturan Menteri ESDM No. 6/2016. 

Bisnis Indonesia, Page-30, Friday, May 11, 2018

Minister of EMR Regulation 23/2018 Encourage Oil and Gas Management Competition

The Government ensures that the Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 23 of 2018 on Management of the Oil and Gas Working Areas Ending Cooperation Contract is a concrete effort to implement the mandate of Article 33 of the 1945 Constitution. The main spirit of this regulation is a healthy competition for all prospective oil and gas contractors, in order to encourage greater results of oil and gas management for the country.

With respect to the Working Areas (WK) or oil and gas blocks that will expire in its contracts, the Government requires that its production levels do not fall, and that the block management program should provide greater benefits to the state.

"The work program for the continuation of the termination of WK oil and gas management must be maintained in quality, both from technical and financial aspects, and must still provide greater results for the country. If the outcome is greater, the state revenue is also better, the benefits for the country are also getting bigger, "said Head of Communications, Public Information Services and Cooperation Bureau, Ministry of ESDM Agung Pribadi in a written statement in Jakarta.

On the basis of Agung, it is not true that Minister of Energy and Mineral Resources Regulation No. 23/2018 prioritizes foreign parties and does not provide an opportunity to PT Pertamina (Persero) to manage terminating oil and gas WK. According to Agung, Pertamina is able to obtain the right to manage WK oil and gas termination.

"Pertamina may apply for the management of the oil and gas working area, as well as other contractors, foreign contractors or local contractors. Later will be evaluated by the Ministry of Energy and Mineral Resources team and inter-agency, "he said.

Article 13 Regulation of the Minister of Energy and Mineral Resources Number 23/2018 describes the Minister of ESDM which shall determine the management of the termination blocks.

"The determination would be the reference is the submission that provides greater benefits for the state. This is in accordance with the mandate of the constitution and this is our priority, "added Agung.

The government, said Agung, fully supports Pertamina to become a large oil and gas company that is calculated in the global arena. That is why, besides assigning directly to Pertamina to manage WK Terminasi, the Government also gives Pertamina opportunity to compete healthily with other companies or oil and gas contractors.

"There is no oil and gas company that can grow big just from the assignment or giving. Competition and fair competition is the way to encourage companies to become stronger and stronger and world-class, "said Agung.

Prior to allow Pertamina to compete with other oil and gas contractors, the Government through the Ministry of ESDM has provided right to manage 10 WK Termination to Pertamina. The ten oil and gas workers are ONWJ, Mahakam, Tengah, Attaka, East Kalimantan, NSO, Sanga-Sanga,

Southeast Sumatra, Tuban, and Ogan Komering.

From the management of WK Mahakam, it is predicted that Pertamina will get an additional net income of around Rp 7-8 trillion per year. From 8 other blocks, can get additional Rp 1 trillion to Rp 2 trillion. This means that from the rights to manage 10 blocks of oil and gas termination Pertamina can get additional revenue of about Rp 10 trillion per year to 20 years.

Responding to the Government's policy through Minister of Energy and Mineral Resources Regulation No. 23 of 201, President Director of Pertamina, Plans, Nicke Widyawati, conveyed positive response and support.

"Regulation of the Minister of Energy and Mineral Resources Number 23/2018 encourages Pertamina's professionalism and competitiveness, so that the Company has a stronger foundation to grow larger. By Ministerial Regulation Pertamina still has the opportunity to get WK Terminasi. As part of the Government, Pertamina has the same task of providing greater benefits for the state, "he said.

IN INDONESIA

Peraturan Menteri ESDM 23/2018 Dorong Kompetisi Pengelolaan Migas

Pemerintah memastikan bahwa Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) Nomor 23 Tahun 2018 tentang Pengelolaan Wilayah Kerja Migas yang Berakhir Kontrak Kerja Sama-nya adalah upaya nyata untuk mengimplementasikan amanat Pasal 33 Undang-Undang Dasar (UUD) 1945. Semangat utama peraturan ini adalah kompetisi yang sehat bagi semua calon kontraktor migas, dalam rangka mendorong hasil pengelolaan migas yang lebih besar bagi negara.

Terhadap Wilayah Kerja (WK) atau blok migas yang akan berakhir kontraknya, Pemerintah menghendaki agar tingkat produksinya tidak turun, dan program kerja pengelolaan blok tersebut harus memberikan manfaat yang lebih besar untuk negara.

“Program kerja untuk kelanjutan pengelolaan WK migas terminasi harus dijaga kualitasnya, baik dari aspek kemampuan teknis maupun finansial, dan harus tetap memberikan hasil yang lebih besar bagi negara. Kalau hasilnya lebih besar, penerimaan negara juga lebih baik, manfaat untuk negara juga makin besar,” kata Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama, Kementerian ESDM Agung Pribadi dalam keterangan tertulis di Jakarta.

Dengan dasar itu Agung menegaskan tidak benar bahwa Peraturan Menteri ESDM Nomor 23/2018 tersebut mengutamakan pihak asing dan tidak memberikan kesempatan kepada PT Pertamina (Persero) untuk mengelola WK migas terminasi. Menurut Agung, Pertamina sangat bisa untuk mendapatkan hak kelola WK migas terminasi. 

“Pertamina dapat mengajukan permohonan pengelolaan Wilayah kerja migas tersebut, sebagaimana kontraktor lainnya, kontraktor asing maupun kontraktor lokal. Nanti akan dievaluasi oleh Tim Kementerian ESDM dan lintas instansi," ungkapnya.

Pasal 13 Peraturan Menteri ESDM Nomor 23/2018 menjelaskan Menteri ESDM yang akan menetapkan pengelolaan blok terminasi tesebut. 

“Penetapan nantinya pasti acuannya adalah pengajuan yang memberikan manfaat lebih besar bagi negara. Ini sesuai amanat konstitusi dan ini adalah prioritas kita,” tambah Agung. 

Pemerintah, kata Agung, mendukung penuh Pertamina untuk menjadi perusahaan migas besar yang diperhitungkan di kancah global. Itulah sebabnya, selain menugaskan secara langsung kepada Pertamina untuk mengelola WK Terminasi, Pemerintah juga memberi kesempatan kepada Pertamina untuk berkompetisi secara sehat dengan perusahaan atau kontraktor migas lainnya.

“Tidak ada perusahaan migas yang bisa berkembang besar hanya dari penugasan atau pemberian. Kompetisi dan persaingan yang fair adalah cara untuk mendorong perusahaan menjadi lebih kuat dan tangguh dan berkelas dunia,” papar Agung.

Mahakam Block

Sebelum memberi kesempatan Pertamina untuk bersaing dengan kontraktor migas lain, Pemerintah melalui Kementerian ESDM telah memberikan

hak kelola 10 WK Terminasi kepada Pertamina. Kesepuluh WK migas tersebut yaitu ONWJ, Mahakam, Tengah, Attaka, East Kalimantan, NSO, Sanga-Sanga,

Southeast Sumatera, Tuban, dan Ogan Komering. 

Dari pengelolaan WK Mahakam, diprediksikan Pertamina mendapat tambahan pendapatan bersih sekitar Rp 7-8 triliun per tahun. Dari 8 blok lainnya, bisa mendapat tambahan Rp 1 triliun sampai Rp 2 triliun. Artinya dari hak kelola 10 blok migas terminasi itu Pertamina bisa mendapat tambahan pendapatan sekitar Rp 10 triliun per tahun sampai 20 tahun.

Menanggapi kebijakan Pemerintah melalui Peraturan Menteri ESDM Nomor 23 Tahun 201 tersebut, Pelaksana Tugas (Plt) Direktur Utama Pertamina, Nicke Widyawati, menyampaikan respons positif dan dukungan. 

“Peraturan Menteri ESDM Nomor 23/2018 mendorong profesionalisme dan daya saing Pertamina, sehingga Perseroan memiliki fondasi yang lebih kuat untuk tumbuh makin besar. Dengan Peraturan Menteri itu Pertamina masih memiliki kesempatan untuk mendapatkan WK Terminasi. Sebagai bagian dari Pemerintah, Pertamina memiliki tugas yang sama yaitu memberikan manfaat yang lebih besar bagi negara,” ujarnya.

Investor daily, Page-9, Wednesday, May 9, 2018