Pertamina-Chevron Negotiates Crude Oil Sales

PT Pertamina (Persero) is currently negotiating with Chevron Indonesia regarding the purchase of crude oil which is part of the cooperation contractor (KKKS) from the United States. Deputy for Finance and Monetization of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Parulian Sihotang said, so far there has been no agreement on the sale and purchase of oil signed. It hopes that soon there will be an agreement regarding the sale of KKKS oil to Pertamina.

"With Chevron already negotiating, this only takes time. They are still a discussion, "he said in Jakarta, Thursday (1/11).

Djoko Siswanto, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), said that because there were still tax problems, there was no agreement signed on the sale of KKKS oil to Pertamina, the oil and gas company was still waiting for tax certainty before signing the contract. So far, three oil and gas companies have agreed to sell their oil to Pertamina.

"EMP (PT Energi Mega Persada), then Premiere Oil, one more I forget," he said.

Mandatory for Pertamina to buy oil produced domestically is one of the efforts of the ESDM Ministry to control imports and strengthen the Rupiah exchange rate. Because if realized, domestic oil supplies to Pertamina refineries could increase by around 215220 thousand barrels per day (bpd), according to the amount of oil production which is the share of KKKS.

Foreign exchange savings, Deputy Minister of ESDM Arcandra Tahar once explained, comes from the difference in transportation costs compared to Pertamina having to import from other countries. Estimated, the cost savings can be around USS 3-4 per barrel, depending on the previous import from which country. Assuming a difference in transportation costs of US $ 2 per barrel, the savings obtained could be US $ 440 thousand.

"If it's USS 3 per barrel, how much savings, this is business to business (the amount of transportation costs)," he said.

If Pertamina's oil originally came from West Africa, the difference in transportation costs could reach US $ 4 per barrel.

IN INDONESIAN

Pertamina-Chevron Negosiasi Penjualan Minyak Mentah

PT Pertamina (Persero) kini sedang bernegosiasi dengan Chevron Indonesia terkait pembelian minyak mentah yang menjadi bagian kontraktor kontrak kerja sama (KKKS) dari Amerika Serikat itu. Deputi Keuangan dan Monetisasi Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan gas Bumi (SKK Migas) Parulian Sihotang mengatakan, sejauh ini belum ada kesepakatan jual beli minyak yang diteken. Pihaknya berharap segera ada kesepakatan soal penjualan minyak KKKS ke Pertamina ini.

“Dengan Chevron sudah negosiasi, cuma ini butuh waktu. Mereka masih diskusi,” kata dia di Jakarta, Kamis (1/11).

Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto sempat mengungkapkan, lantaran masih ada masalah pajak, belum ada kesepakatan yang diteken soal penjualan minyak KKKS ke Pertamina, Perusahaan migas masih menunggu kepastian perpajakannya sebelum tanda tangan kontrak. Sejauh ini, tiga perusahaan migas sudah sepakat menjual minyaknya ke Pertamina. 

“EMP (PT Energi Mega Persada), kemudian Premiere Oil, satu lagi saya lupa,” kata dia.

Mandatori bagi Pertamina untuk membeli minyak produksi dalam negeri merupakan salah satu upaya Kementerian ESDM untuk mengendalikan impor dan memperkuat nilai tukar Rupiah. Pasalnya jika terealisasi, pasokan minyak dalam negeri ke kilang Pertamina bisa meningkat sekitar 215220 ribu barel per hari (bph), sesuai besaran produksi minyak yang merupakan jatah KKKS.

Penghematan devisa, Wakil Menteri ESDM Arcandra Tahar pernah menjelaskan, berasal dari selisih biaya transportasi jika dibandingkan dengan Pertamina harus mengimpor dari negara lain. Perkiraannya, penghematan ongkos angkut ini bisa sekitar USS 3-4 per barel, tergantung dari sebelumnya impor dari negara mana. Dengan asumsi selisih biaya transportasi US$ 2 per barel, maka penghematan yang diperoleh bisa sebesar US$ 440 ribu.

“Kalau USS 3 per barel, penghematan berapa, ini business to business (besaran biaya transportasi),” ujarnya.

Jika awalnya minyak Pertamina berasal dari Afrika Barat, selisih biaya transportasinya bisa mencapai US$ 4 per barel.

Investor Daily, Page-9, Friday, Nov 2, 2018

Pertamina Lifts East Kalimantan-Attaka Block Prime

PT Pertamina Hulu East Kalimantan (PHKT), an affiliate of PT Pertamina (Persero), carried out the initial lifting of oil produced from the East Kalimantan-Attaka Block in the amount of 60 thousand barrels. Oil is brought from Lawe-Lawe Terminal, Penajam Paser Utara to Balikpapan Refinery to be processed into fuel oil (BBM).

"Lifting crude oil for the first time Pertamina Hulu East Kalimantan was exactly a week after the management operator was handed over to Pertamina. And this is a tangible manifestation of PHKT support and commitment towards meeting domestic energy needs, "said PHKT Feri Director Sri Wibowo in his official statement on Wednesday (31/10)

"In this lifting, crude oil is channeled through pipes from Lawe Lawe Terminal to Balikpapan Refinery Unit V of 604 thousand barrels. At the same time, carried out the first shipment operation from Santan Terminal for condensate products. Crude oil flowed is the result of production from the field from the East Kalimantan Work Area-Attaka which is operated by PT Pertamina Hulu East Kalimantan.

the East Kalimantan Work Area-Attaka

Pertamina Hulu East Kalimantan is the grandson of the Pertamina company, which manages the East Kalimantan-Attaka Block since October 24, 2018, after a management transfer process from PT Chevron Indonesia Company (CICO). Until September 2018, the East Kalimantan-Attaka Block was recorded as producing 13,220 barrels per day (BPD) of oil and 69.44 million cubic feet per day (million standard cubic feet per day / mmscfd) of gas.

Previously, Managing Director of PT Pertamina Hulu Indonesia, Bambang Manumayoso, said that his company was committed to holding back the decline in the East Kalimantan Block Attaka production this year. It plans to work on 10 workovers and 59 well services which are estimated to maintain production in the range of 13,291 bpd for oil and 73.3 mmscfd for gas in 2018.

Furthermore, in 2019, it plans to drill three wells in the last quarter, 37 workovers, and 308 well services which are projected to produce gas of 59.4 mmscfd and oil of 10,639 bpd.

"PHKT also budgeted investment with a definite commitment of investment for the first three years of US $ 9.3 million," Bambang said.

Blok East Kalimantan-Attaka has 15 fields, namely Attaka, Melangin, Kerindingan, Serang, Sapi, Santan, Sepinggan, Sedandang, Seguni, Sejadi, Yakin, Mahoni, Bangkirai, Seturian, and Beaches. Blok East Kalimantan-Attaka is estimated to still have a cumulative oil production of 1 billion barrels and gas of 3 trillion cubic feet.

To maintain oil and gas production in the future, the company is also committed to conducting exploration activities. At East Kalimantan-Attaka, the company is committed to drilling 1 exploration well worth the US $ 30 million and an exploration study of US $ 250 thousand.

"It is expected that the study and exploration package will be able to add new potential reserves," Bambang said.

IN INDONESIAN

Pertamina Lifting Perdana Minyak Blok East Kalimantan-Attaka

PT Pertamina Hulu Kalimantan Timur (PHKT), afiliasi PT Pertamina (Persero), melakukan lifting perdana minyak yang dihasilkan dari Blok East Kalimantan-Attaka sebesar 60 ribu barel. Minyak dibawa dari Terminal Lawe-Lawe, Penajam Paser Utara ke Kilang Balikpapan untuk diolah menjadi bahan bakar minyak (BBM).

“Lifting minyak mentah pertama kali Pertamina Hulu Kalimantan Timur tepat sepekan setelah operator pengelolaan diserahkan kepada Pertamina. Dan ini merupakan wujud nyata dukungan serta komitmen PHKT terhadap pemenuhan kebutuhan energi dalam negeri,” kata Direktur PHKT Feri Sri Wibowo dalam keterangan resminya, Rabu (31/10)

“Pada lifting kali ini, minyak mentah dialirkan melalui pipa dari Terminal Lawe Lawe ke Refinery Unit V Balikpapan sebesar 604 ribu barel. Pada saat bersamaan, melaksanakan pengoperasian pengapalan pertama dari Terminal Santan untuk produk kondensat. Minyak mentah yang dialirkan merupakan hasil produksi dari lapangan dari Wilayah Kerja East Kalimantan-Attaka yang yang dioperasikan oleh PT Pertamina Hulu Kalimantan Timur.

Pertamina Hulu Kalimantan Timur merupakan cucu perusahaan Pertamina, yang mengelola Blok East Kalimantan-Attaka sejak 24 Oktober 2018, setelah prosesi alih kelola dari PT Chevron Indonesia Company (CICO). Hingga September 2018, Blok East Kalimantan-Attaka tercatat memproduksi minyak sebesar 13.220 barel per hari (bph) dan gas 69,44 juta kaki kubik per hari (million standard cubic feet per day/ mmscfd).

Sebelumnya, Direktur Utama PT Pertamina Hulu Indonesia Bambang Manumayoso menyatakan, pihaknya berkomitmen menahan laju penurunan produksi Blok East Kalimantan Attaka pada tahun ini. Pihaknya merencanakan pengerjaan 10 workover dan 59 well services yang diestimasi mempertahankan produksi pada kisaran 13.291 bph untuk minyak dan 73,3 mmscfd untuk gas pada 2018.

Selanjutnya pada 2019, pihaknya berencana melakukan pengeboran tiga sumur di kuartal terakhir, 37 workover, dan 308 well services yang diproyeksikan bisa menghasilkan gas sebesar 59,4 mmscfd dan minyak 10.639 bph. 

“PHKT juga menganggarkan investasi dengan komitmen pasti investasi selama tiga tahun pertama sebesar US$ 9,3 juta,” kata Bambang. 

Blok East Kalimantan-Attaka memiliki 15 lapangan yaitu Attaka, Melangin, Kerindingan, Serang, Sapi, Santan, Sepinggan, Sedandang, Seguni, Sejadi, Yakin, Mahoni, Bangkirai, Seturian, dan Pantai. Blok East Kalimantan-Attaka diperkirakan masih memiliki kumulatif produksi minyak 1 miliar barel dan gas 3 triliun kaki kubik.

Untuk mempertahankan produksi migas di masa mendatang, perseroan juga berkomitmen melakukan kegiatan eksplorasi. Di East Kalimantan-Attaka, perseroan berkomitmen mengebor 1 sumur eksplorasi senilai US$ 30 juta dan studi eksplorasi US$ 250 ribu. 

“Diharapkan dengan paket studi dan eksplorasi akan bisa memberikan penambahan potential reserve baru,” tutur Bambang.

Investor Daily, Page-9, Friday, Nov 2, 2018

Prime Oil Lifting from Blok East Kal and Attaka

Already this week, PT Pertamina Hulu East Kalimantan (PHKT) subsidiary PT Pertamina Hulu Indonesia has become the operator of Blok East Kalimantan and Blok Attaka. And, for the first time Pertamina increased oil production (lifting) from the East Kalimantan Block - Attaka as much as 60,000 barrels of crude oil from Lawe-Lawe Terminal, Penajam, Penajam Paser Utara, East Kalimantan.

the East Kalimantan Block - Attaka

The crude oil will be flowed through a pipeline from Lawe Lawe Terminal to Balikpapan's Refinery Unit V of 60,000 bbls. Then, this oil will be processed into Fuel Oil (BBM) at the Pertamina refinery, Balikpapan Refinery Unit V. At the same time, PHKT also carried out the first shipment operation from Santan Terminal for condensate products (BRC).

"Lifting crude oil for the first time Pertamina Hulu East Kalimantan was handed over to Pertamina. This is a concrete manifestation of PHKT support and commitment towards meeting domestic energy needs, "said PHKT Feri Director Sri Wibowo in a press release.

Just so you know, after the management transfer process from PT Chevron Indonesia Company (CICO), data at the end of September 2018, East Kalimantan-Attaka WK oil and condensate production amounted to 13,220 barrels of oil per day (bopd) and gas of 69.44 million cubic feet per day (mmscfd).

In managing this block, Pertamina uses gross split scheme contracts. This is different from the contract scheme used by Chevron in the previous management which used the cost recovery contract scheme.

IN INDONESIA

Lifting Minyak Perdana dari Blok East Kal dan Attaka

Sudah sepekan ini, PT Pertamina Hulu Kalimantan Timur ( PHKT) anak usaha PT Pertamina Hulu Indonesia menjadi operator Blok East kalimantan dan Blok Attaka. Dan, untuk pertama kalinya Pertamina menaikkan produksi (lifting) minyak dari Blok East Kalimantan - Attaka sebanyak 60.000 barel minyak mentah dari Terminal Lawe-Lawe, Penajam, Penajam Paser Utara, Kalimantan Timur.

Minyak mentah tersebut akan dialirkan melalui pipa dari Terminal Lawe Lawe ke Refinery Unit V Balikpapan sebesar 60,000 bbls. Kemudian, minyak ini akan diolah menjadi Bahan Bakar Minyak (BBM) di kilang Pertamina, Refinery Unit V Balikpapan. Pada waktu bersamaan, PHKT juga melaksakan pengoperasian pengapalan pertama dari Terminal Santan untuk produk kondensat (BRC). 

“Lifting minyak mentah pertama kali Pertamina Hulu Kalimantan Timur ini diserahkan kepada Pertamina. Ini merupakan wujud nyata dukungan serta komitmen PHKT terhadap pemenuhan kebutuhan energi dalam negeri,” kata Direktur PHKT Feri Sri Wibowo dalam siaran pers.

Asal tahu saja, setelah prosesi alih kelola dari PT Chevron Indonesia Company (CICO), data pada akhir September 2018, produksi minyak dan kondensat WK East Kalimantan-Attaka sebesar 13.220 barel minyak per hari (bopd) dan gas sebesar 69,44 juta kaki kubik per hari (mmscfd). 

Pada pengelolaan blok ini, Pertamina menggunakan kontrak dengan skema gross split. Ini berbeda dengan skema kontrak yang dipakai Chevron pada pengelolaan sebelumnya yang menggunakan skema kontrak cost recovery (pengembalian biaya operasi).

Kontan, Page-14, Friday, Nov 2, 2018

Pertamina hasn't got oil supplies from KKKS

The government has ordered PT Pertamina to reduce crude oil imports. However, as of the beginning of November, Pertamina has not received the supply of crude oil from the production of the Cooperation Contract Contractors (KKKS) domestically.

The Special Task Force for Upstream Oil and Gas Activities (SKK Migas) said that Pertamina was still discussing the purchase of crude oil from within the country. SKK Migas Deputy for Finance and Monetization, Parulian Sihotang, said that one of the contractors discussing the plan with Pertamina was PT Chevron Indonesia. In fact, Parulian claimed, the negotiations on the purchase of crude oil had been completed.

"With Chevron already, it's been negotiating. It only takes time, "added Parulian, Thursday (1/11).

Until the end of this year, the government targeted crude oil production to reach 800,000 bowel oil pear days (bopd). Until the end of last October, the national crude oil production had reached 7 75,000 bopd.

Pertamina can get crude oil from oil and gas contractors around 275,000 bopd. For example, from Chevron alone, Pertamina can get 100,000 bopd. But so far Chevron Indonesia is still questioning tax policies related to the sale of crude oil to Pertamina.

Regarding tax issues, Parulian said that it was still discussed in business to business (B to B) with Chevron and the Directorate General of Tax, Ministry of Finance.

"There is still discussion B to B. But I think the Director General of Taxes will certainly support," said Parulian, who hopes that soon there will be an agreement between Pertamina and oil and gas contractors.

IN INDONESIA

Pertamina Belum Mendapat Suplai Minyak dari KKKS

Pemerintah telah memerintahkan PT Pertamina untuk mengurangi impor minyak mentah. Namun hingga awal November ini Pertamina belum mendapatkan suplai minyak mentah dari hasil produksi Kontraktor Kontrak Kerjasama (KKKS) di dalam negeri.

Satuan Kerja Khusus Kegiatan Hulu Minyak dan Gas Bumi (SKK Migas) menyatakan Pertamina masih membahas terkait pembelian minyak mentah dari dalam negeri. Deputi Keuangan dan Monetisasi SKK Migas, Parulian Sihotang mengatakan, salah satu kontraktor yang sedang membahas rencana tersebut dengan Pertamina adalah PT Chevron Indonesia. Bahkan, Parulian mengklaim, negosiasi pembelian minyak mentah itu sudah selesai. 

“Dengan Chevron sudah, sudah negosiasi. Cuma butuh waktu," imbuh Parulian, Kamis (1/11). 

Hingga akhir tahun ini, pemerintah menargetkan produksi minyak mentah mencapai 800.000 bowel oil pear day (bopd). Sampai akhir Oktober lalu, produksi minyak mentah nasional sudah nlencapai 7 75.000 bopd. 

Adapun Pertamina bisa mendapatkan minyak mentah dari kontraktor migas sekitar 275.000 bopd. Misalnya, dari Chevron saja, Pertamina bisa mendapatkan 100.000 bopd. Tapi selama ini Chevron Indonesia masih mempertanyakan kebijakan perpajakan terkait penjualan minyak mentah ke Pertamina. 

Tentang masalah pajak, Parulian menyebutkan masih dibahas secara business to business (B to B) dengan Chevron dan Direktorat Jenderal Pajak Kementerian Keuangan.

"Masih diskusi B to B. Tapi saya kira Dirjen Pajak pasti mendukung," ujar Parulian, yang berharap secepatnya sudah ada kesepakatan antara Pertamina dan kontraktor migas.

Kontan, Page-14, Friday, Nov 2, 2018

Inpex Is Requested To Immediately Submit Masela Block Development Plan

The government asked Inpex Corporation to immediately submit a plan of development for the Abadi Field, Masela Block. Referring to the Indonesia Natural Gas Balance 2018-2027, the Masela Block is targeted to start operating in 2027.

the Masela Block

Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Djoko Siswanto said, his party wanted the Masela Block POD to be completed this year. Thus, the gas project in Eastern Indonesia can be started next year, such as procurement auctions.

"Quickly submit the POD. Inpex promised to quickly submit the POD for the Masela Block, "he said in Jakarta, recently.

It hopes that the POD can be submitted by Inpex at least next month. Currently, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is still discussing the preparation of this Masela Block POD with Inpex. Furthermore, regarding the incentives needed or will be given for this project, it still has to wait for the preparation of the POD to be completed.

"The incentives will later be seen after the overall cost. What is Inpex needed, delivered, "said Djoko.

Even so, Djoko added, the discussion of the application for the extension of the Masela Block contract had been going on. The government has decided to provide a seven-year contract extension for Inpex at the Masela Block. However, the Japanese oil and gas company requested another 20-year contract extension.

"After that (lnpex) ask for another 20 years, the administration is November 28. Our principle is okay, "he said.

However, he admitted that the extension for 20 years had not been administratively possible. To guarantee the continuation of the project, the government will provide an extension of the production sharing contract (PSC) for Inpex Corporation in the Masela Block for 27 years. So the new Masela Block contract will expire in 2055, instead of 2028 like the initial contract.

The decision was one of the results of a discussion between the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan and CEO of Inpex Corporation Toshiaki Kitamura in October last year.

Previously, Deputy Minister of ESDM Arcandra Tahar stated that Inpex had completed the Masela Block's concept of engineering and design feasibility (Pre-FEED). In the Pre-FEED he said there would be a new investment value from the Masela Block Project. 

   Unfortunately, Arcandra is reluctant to specify how much the project investment refers to Pre-FEED. In his official statement, Inpex once explained that the Pre-FEED was an important step to begin the development of the Abadi Field Project.

Furthermore, Inpex will prepare a revised POD referring to the Pre-FEED results and discussions with the Indonesian side so that the project becomes economically efficient and competitive.

"After the POD revision is approved by the government, various evaluations including detailed design (front end engineering design / FEED) will be carried out so that final investment decision can be achieved," said the official statement.

As is known, initially there were two options for the capacity of the Masela Block liquefied natural gas (LNG), depending on domestic gas requirements. However, PreFEED was finally carried out with one production capacity option and one island. This is in accordance with the decision after the visit of the Minister of Energy and Mineral Resources to Japan on May 16, 2017.

Meanwhile, the warrant stated that the capacity of the LNG plant was set at 9.5 million tons per year, and gas pipeline production was 150 mmscfd. The Pre-FEED includes offshore to land pipelines, offshore facilities, and LNG refineries, as well as refinery locations.

The Masela Block contract signed in 1998 was managed by Inpex as an operator with 65% share ownership and Shell Upstream Overseas Services by 35%.

Investor Daily, Page-9, Thursday, Nov 1, 2018

The Minister of Energy and Mineral Resources Wants the Accelerated Masela Block Project

Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan recently visited Japan. During the working visit, Minister Jonan met with officials of Inpex Corporation to discuss the continuation of the Masela Block Abadi Gas Field project.

the Masela Block Abadi Gas Field project.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, confirmed that the Minister of Energy and Mineral Resources met with Inpex officials in Japan to discuss the Masela Block. In the discussion, the Indonesian government asked Inpex to immediately proceed with the Masela Block project.

One of them is to immediately submit a revision of the plan of development (POD).

"Inpex indeed promised to quickly submit POD," he said.

The government targets the revision of the Masela Block POD to be submitted next month. Djoko said that currently the Masela Block POD process is still in the discussion stage at SKK Migas.

The government hopes to be able to provide POD approval by the end of 2018. That way, Inpex can already hold an auction for the Masela Block project so that by 2020 it will enter the stages of the production facility construction process.

"Revision of the POD next month. After the POD is finished, starting next year the auction will take place, so that the following year," Djoko explained.

Meanwhile, related to the incentives requested by Inpex, Djoko said that this would be discussed during the discussion of costs.

IN INDONESIA

Menteri ESDM Ingin Proyek Blok Masela Dipercepat

Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan baru saja berkunjung ke Jepang. Dalam kunjungan kerja tersebut, Menteri Jonan menemui petinggi Inpex Corporation untuk membahas kelanjutan proyek Lapangan Gas Abadi Blok Masela. 

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM, Djoko Siswanto membenarkan Menteri ESDM bertemu petinggi Inpex di Jepang untuk membahas Blok Masela. Dalam pembahasan tersebut, pemerintah Indonesia meminta lnpex segera melanjutkan proyek Blok Masela.

Salah satunya dengan segera mengajukan revisi plan of development (POD). 

"lnpex memang berjanji untuk cepat mengajukan POD," ungkap dia.

Pemerintah menargetkan revisi POD Blok Masela bisa diserahkan pada bulan depan. Djoko menyebutkan saat ini proses POD Blok Masela masih tahap pembahasan di SKK Migas. 

Pemerintah berharap bisa memberikan persetujuan POD pada akhir 2018. Dengan begitu, lnpex sudah bisa menggelar lelang untuk proyek Blok Masela sehingga pada tahun 2020 mendatang memasuki tahapan proses konstruksi fasilitas produksi.

"Revisi POD bulan depan. Setelah POD selesai, mulai tahun depan lelang, sehingga tahun berikutnya pembangunan," jelas Djoko.

Sementara itu, terkait dengan insentif yang djminta oleh Inpex, Djoko menyebutkan hal tersebut akan dibahas pada saat pembahasan biaya.

Kontan, Page-14, Thursday, Nov 1, 2018

Extension of Masela Block Contract Agreed

The government agreed to Inpex Corporation's request that the Abadi Plant, Masela Block contract be extended for 20 years. The Director General of Oil and Gas, Ministry of Energy and Mineral Resources Djoko Siswanto said that in principle, the ESDM Ministry agreed to extend the Masela contract even though Inpex had not submitted administrative requirements.

The Masela Block

The Masela Block contract will expire on November 28, 2028. Based on the applicable regulations, the contract extension can be submitted no later than 10 years before the contract expires. This means that Inpex can apply for a Masela contract extension starting November 28, 2018.

"Later November 28 [2028] the Masela Block contract ends. So, in November 2018, Inpex can apply to extend the contract. Already there is talk, later on the administration on November 28, in principle we are okay, "he said.

Inpex immediately submitted a revision of the Masela Block plan of development (PoD) after the Japanese oil and gas company completed a pre-FEED preliminary technical design study. Inpex revised POD after President Joko Widodo requested that the floating LNG refinery be replaced with a land refinery.

"This year is the agreement [PoD]. The government asks Inpex to quickly submit PoD. Next month."

Meanwhile, Inpex has not yet determined the location of the Abadi Masela LNG refinery. Inpex Corporation's Senior Media Relations Specialist Moch. Nunung Kurniawan said that currently his party is consulting with the government regarding the location of the LNG plant.

On the other hand, SKK Migas is still awaiting the readiness of gas buyers from the provocation of the SWB / WB / SB oil and gas production facilities worked on by PetroChina Intl. Jabung Ltd.

SKK Migas Program and Communication Division Head Wisnu Prabawa Taher said the construction of the oil and gas production facility project had begun. However, PetroChina is still awaiting gas buyers' readiness.

"Only later when the buyer's facilities are ready will the gas be sent."

The province will produce 12 MMscfd of gas and a production facility capacity of 14.5 MMscfd. Wisnu said, the project is targeted to start operating in the first quarter of 2019. The SWB / WB / SB upstream oil and gas project worked on by PetroChina Intl. Jabung Ltd is one of 13 upstream oil and gas projects targeted to operate in 2019.

IN INDONESIA

Perpanjangan Kontrak Blok Masela Disepakati

Pemerintah menyetujui permintaan lnpex Corporation agar kontrak Lapangan Abadi, Blok Masela diperpanjang selama 20 tahun. Direktur Jenderal Minyak dan Gas Bumi, Kementerian Energi dan Sumber Daya Mineral Djoko Siswanto mengatakan bahwa pada prinsipnya, Kementerian ESDM sepakat untuk memperpanjang kontrak Masela meskipun Inpex belum mengajukan persyaratan administrasi.

Kontrak Blok Masela akan berakhir pada 28 November 2028. Berdasarkan regulasi yang berlaku, perpanjangan kontrak bisa diajukan paling cepat 10 tahun sebelum kontrak berakhir. Artinya, Inpex dapat mengajukan perpanjangan kontrak Masela mulai 28 November 2018.

“Nanti 28 November [2028] berakhir kontrak Blok Masela. Jadi, pada November 2018, Inpex dapat mengajukan perpanjang kontrak. Sudah ada pembicaraan, nanti administrasinya 28 November prinsipnya kami sudah oke,” katanya.

Inpex segera mengajukan revisi rencana pengembangan (plan of development/PoD) Blok Masela setelah perusahaan migas dari Jepang itu menyelesaikan kajian awal desain teknis konstruksi (pre-FEED). Inpex merevisi POD setelah Presiden Joko Widodo meminta kilang LNG terapung diganti dengan kilang darat.

“Tahun inilah persetujuannya [PoD]. Pemerintah minta Inpex biar cepat mengajukan PoD. Bulan depan.”

Sementara itu, Inpex belum menentukan lokasi kilang LNG Abadi Masela. Senior Specialist Media Relations Inpex Corporation Moch. Nunung Kurniawan mengatakan bahwa saat ini pihaknya berkonsultasi dengan pemerintah perihal lokasi kilang LNG. 

Di sisi lain, SKK Migas masih menunggu kesiapan pembeli gas dari provek fasilitas produksi migas SWB/ WB/SB yang digarap oleh PetroChina Intl. Jabung Ltd. 

Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher mengatakan, konstruksi proyek fasilitas produksi migas tersebut sudah dimulai. Namun, PetroChina masih menunggu kesiapan pembeli gas. 

“Baru nanti kalau fasilitas pembeli sudah siap akan dikirim gasnya.”

Provek tersebut akan menghasilkan gas 12 MMscfd dan kapasitas fasilitas produksi sebanyak 14,5 MMscfd. Wisnu menuturkan, proyek tersebut ditargetkan mulai beroperasi pada kuartal I/2019. Proyek hulu migas SWB/WB/SB yang digarap oleh PetroChina Intl. Jabung Ltd ini merupakan salah satu dari 13 proyek hulu migas yang ditargetkan beroperasi pada 2019.

Bisnis Indonesia, Page-24, Wednesday, Oct 31, 2018

Termination Block Increases Pertamina's Production by 5%

The management of two 2018 termination oil and gas blocks to PT Pertamina Hulu Indonesia provides additional oil and gas production of 5% to PT Pertamina (Persero). The two oil and gas blocks are Sanga-Sanga and East Kalimantan-Attaka. 

    Bambang Manumayoso, Managing Director of Pertamina Upstream Indonesia, said that the company manages three termination oil and gas blocks, namely the Mahakam, Sanga-Sanga, and East Kalimantan-Attaka Blocks.

the Mahakam block

The production of the Sanga-Sanga and East Kalimantan-Attaka Blocks is relatively different. Of the two 2018 termination blocks, it is optimistic to obtain an additional 5% production.

Attaka Blocks

"So it is indeed not significant in the context of national oil and gas production. But for Pertamina, there is additional production of 5%, "Bambang said in Balikpapan.

Referring to Pertamina's data, until the end of last July, the Sanga-Sanga Block was recorded as producing 10,753 barrels per day (BPD) of oil and 80.7 million standard cubic feet per day/Mmscfd of gas. Meanwhile, Blok East Kalimantan-Attaka produced 13,220 BPD of oil and 69.44 mmscfd of gas per September.

Bambang continued, his party would continue to boost the termination block production through the discovery of new oil and gas potential. Therefore, It is committed to conducting exploration in this termination block. Bambang is optimistic, with the development of oil and gas technology, reserves will be found new in this area. Moreover, the three Working Areas they manage are in one area.

"This is a very large delta system and we examine the potential around it," he said.

It takes at least 1-2 years to study new exploration potentials. This is reflected in the definite work commitment promised by Pertamina. Referring to the Decree of the Minister of Energy and Mineral Resources (ESDM) No 1793K / 12 / MEM / 2018, in Sanga-Sanga, Pertamina promised to drill 4 exploration wells worth the US $ 20 million and a G & G study of US $ 500 thousand. At East Kalimantan-Attaka, the company is committed to drilling 1 exploration well worth US $ 30 million and an exploration study of US $. 250 thousand.

"It is expected that the study and exploration package will be able to add new potential reserves," Bambang said.

The Sanga Sanga block is estimated to still have a cumulative estimate of production of 258 million barrels of oil equivalent. The Sanga-Sanga work area has seven fields, namely Rhinos, Rice, Lampake, Patchouli, Mutiara, Pamaguan, and Semberah. While the East Kalimantan-Attaka Block is estimated to have a cumulative oil production of 1 billion barrels and gas of 3 trillion cubic feet.

This block has 15 fields, namely Attaka, Melangin, Kerindingan, Serang, Sapi, Santan, Sepinggan, Sedandang, Seguni, Sejadi, Yakin, Mahoni, Bangkirai, Seturian, and Beaches. 

Blogger Agus Purnomo in SKK Migas

    Previously, Amien Sunaryadi, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), revealed that with the management of termination blocks, the increase in Pertamina's oil and gas production alone is not enough.

The reason is, if Indonesia wants no longer needs to import crude oil or fuel oil (BBM), domestic oil production must increase by the current import of around 1.3 million barrels per day.

"If you want to go up that much, you need to have at least five Banyu Urip Fields. That is, giant discoveries, not just one, "he asserted.

For this reason, his party hopes that Pertamina will also try to find a large enough oil and gas reserve. Furthermore, Bambang said, the management of the two oil and gas blocks would involve the participation of the regional government. The amount of participation rights (participating interest / PI) of the regional government has been determined by the central government at 10%. At present, the 10% PI is still being discussed together with SKK Migas.

According to data from the Ministry of Energy and Mineral Resources (ESDM), since 2017, Pertamina has been granted 100% management and ownership rights for 13 terminations of oil and gas blocks from 2017-2021. In detail, Blok Offshore North West Java (ONWJ), Mahakam, Central, Attaka, East Kalimantan, North Sumatra Offshore (NSO), Sanga-Sanga, SES, Tuban, Ogan Komering, and Rokan.

the Rokan Block by Chevron

With the ownership of 12 terminated oil and gas blocks, without Blok Rokan, Pertamina is projected to gradually control 39 percent of national oil and gas production starting next year. At present, the national oil and gas production is recorded at around 2 million barrels of oil equivalent per barrel (boepd). This means that Pertamina's role in maintaining national oil and gas production will be even greater.

Investor Daily, Page-10, Tuesday, Oct 30, 2018

ONWJ Block Ensured Safe

PT Pertamina Hulu Energi (PHE), a subsidiary of PT Pertamina (Persero), ensures Blok Offshore North West Java (ONWJ) is safe. The location of the fall of the Lion Air JT-610 aircraft was stated far from the Block ONWJ facility. 

    PHE Vice President Relations Ifki Sukarya said, his office received information on the Lion Air JT-61 aircraft - lost contact in the waters between Bekasi and Karawang. The location of the plane lost contact very far from the platform facilities operated by PHE ONWJ.

However, once he was informed about the crash of the plane, he immediately checked. PHE ONWJ deployed its operational vessel, the Prabu Ship to patrol the site and check and search information and ensure the security of the company's operations.

"Regarding the incident, the company's operations are still safe without interruption," he said in his official statement.

For this incident, PHE ONWJ also provided support to BASARNAS to evacuate pieces of the Lion Air JT-610 aircraft. Around 10:30 a.m., the Prabu Ship found and handed over pieces of debris and personal items found around the location of the lost contact Lion Air plane to the Basarnas ship to be handed over.

"We were also concerned and expressed deep sorrow for the incident. "Hopefully the passenger family will be given patience and patience," he said

Ifki.

In accordance with applicable procedures at PHE ONWJ, since the receipt of information regarding the lost contact of Lion Air JT-610 in the vicinity of Tanjung Karawang waters, an Incident Management Team (IMT) was immediately carried out to monitor the situation in the field. 

     Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) revealed that there were three employees of the Directorate General of Oil and Gas who were passengers of the Lion Air JT-610 which crashed in Karawang, West Java.

Based on the manifest of the plane the three employees were named Inayah Dewi, Dewi Herlina, and Dewi Jannatun. ESDM Ministry Director General of Oil and Gas Djoko Siswanto confirmed that the three names were employees of the Directorate General of Oil and Gas. The three employees were assigned to Pangkalpinang to monitor the implementation of 20% biodiesel, also known as B20.

IN INDONESIA

Blok ONWJ Dipastikan Aman 

PT Pertamina Hulu Energi (PHE), anak usaha PT Pertamina (Persero), memastikan Blok Offshore North West  Java (ONWJ) dalam keadaan aman. Lokasi jatuhnya pesawat Lion Air JT-610 dinyatakan jauh dari fasilitas Blok ONWJ. 

    Vice President Relations PHE Ifki Sukarya mengatakan, pihaknya mendapat informasi pesawat Lion Air JT-61- kehilangan kontak di perairan antara Bekasi dan Karawang. Lokasi hilang kontaknya pesawat itu sangat jauh dari fasilitas anjungan yang dioperasikan PHE ONWJ.

Meski demikian, begitu mendapat informasi mengenai jatuhnya pesawat tersebut, pihaknya langsung melakukan pengecekan. PHE ONWJ mengerahkan kapal operasionalnya, yaitu Kapal Prabu untuk melakukan patroli ke lokasi serta melakukan pengecekan dan pencarian informasi dan memastikan keamanan operasi perusahaan.

“Terkait kejadian tersebut, operasi perusahaan masih berlangsung aman tanpa gangguan,” kata dia dalam keterangan resminya.

Atas kejadian tersebut, PHE ONWJ juga memberikan dukungan kepada BASARNAS untuk melakukan evakuasi serpihan pesawat Lion Air JT-610. Sekitar 10.30 WIB, Kapal Prabu menemukan dan menyerahkan temuan serpihan dan barang pribadi yang ditemukan di sekitar lokasi hilang kontaknya pesawat Lion Air ke kapal Basarnas untuk diserahterimakan.

“Kami ikut prihatin dan mengucapkan rasa duka mendalam atas insiden tersebut. Semoga keluarga penumpang diberikan ketabahan dan kesabaran,” ujar

Ifki.

Sesuai prosedur yang berlaku di PHE ONWJ, sejak diterimanya informasi mengenai hilang kontaknya Lion Air JT-610 di sekitar perairan Tanjung Karawang, segera dilakukan aktivasi Incident Management Team (IMT) untuk memonitor situasi di lapangan.  

     Sementara itu, Kementerian Energi dan Sumber Daya Mineral (ESDM) mengungkapkan ada tiga pegawai Direktorat Jenderal Minyak dan Gas Bumi yang menjadi penumpang pesawat Lion Air JT-610 yang jatuh di perairan Karawang, Jawa Barat.

Berdasarkan manifes pesawat ketiga pegawai itu bernama lnnayah Dewi, Dewi Herlina, dan Dewi Jannatun. Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto membenarkan ketiga nama tersebut merupakan pegawai Ditjen Migas. Ketiga pegawai tersebut ditugaskan ke Pangkalpinang untuk memantau pelaksanaan biodiesel 20% atau yang dikenal dengan B20.

Investor Daily, Page-10, Tuesday, Oct 30, 2018