Upstream Oil and Gas Investment Target is Difficult to Reach

The realization of investment in the upstream oil and gas sector this year is not expected to be achieved according to the targets set in the 2018 State Budget (APBN) set at US $ 14.2 billion

As of October 31, the realization of investment in the sector was only US $ 8.7 billion (not including the exploration work area) or around 61%. End of year, it is estimated that the achievement is only 79%. SKK Migas Head Amien Sunaryadi said that the investment target was not achieved due to low IRR (Internal Rate of Return) and legal certainty which supported the realization of investment in the upstream oil and gas sector.

"Investors will certainly pay attention to the IRR. Investors will compare with IRR obtained from other countries. Investors are definitely looking for a large IRR, "he said.

Attractive returns on investment certainly make investors prefer investment destination countries. Amien said that if the IRR in Indonesia is high, then investors will choose to invest in Indonesia. Another problem is legal certainty, investors need legal certainty such as regulation, because investors need legal certainty before investing.

In addition, Amien added that the trend of upstream oil and gas investment was also influenced by the discovery of new reserves in Indonesia. The more discovery of oil and gas reserves in Indonesia, will positively correlate with the realization of upstream oil and gas investment. So far there have not been many inventions of new oil and gas reserves due to the lack of exploration activities.

"The upstream oil and gas investment trend is more influenced by the discovery of large or not. If large, the investment to build facilities is large. But if the discovery is small, the facilities are small. This means that the investment is small. So the determining factor is which discovery is small, "he said.

Regarding SKK Migas performance in 2019, Amien said that his party would only focus on exploration and keep the cost recovery not exceeding 100%. To reduce cost recovery, Amien ensures that it will not sacrifice the quality of product use, including iron and steel.

Uptake of local steel products needs to pay attention to the ability of manufacturers to provide goods. For this reason, the choice to optimize the use of domestic goods and services needs to bring commitment from local steel manufacturers.

In terms of local steel producers, there is hope to prioritize the use of local products, in the upstream oil and gas business. To that end, SKK Migas and the Indonesian Iron and Steel Industry Association (IISIA) signed a Memorandum of Understanding on the need for a fair price mechanism for domestic production as well as the existence of HSIA technical assistance to SKK Migas.

Amien said that with the MoU, SKK Migas did hope that there would be use of local steel in the upstream oil and gas sector. With the quality of the product that is the same as imported products, then what will be observed is the price. President Director of PT Pertamina EP Nanang Abdul Manaf welcomed SKK Migas' commitment to ensure that the use of products in the upstream oil and gas project is compulsory according to standards.

"We support because there is certainty, then the Head of SKK Migas also explained. That quality is not negotiable, both prices are also competitive, the third is shipping, so the time must be right, "he said.

On the same occasion, IISIA Chairperson Silmi Karim said, there were no problems regarding quality or price. According to him, the use of domestic products is to talk about the spirit of building a national industry.

East Natuna Block

EAST NATUNA

Meanwhile, the development of the Natuna D Alpha Block, also known as the East Natuna, has the potential to be hampered because there is still no technology to utilize carbon dioxide (CO2) gas. Amien said the East Natuna Block is predicted to have a large volume of gas. Only 72% of the gas found is carbon dioxide.

"So, if the gas is produced, where is the CO2 diverted? If CO2 wants to be used as fuel it can't. If it is thrown away, it will greatly damage the environment, "he said.

Therefore, he added, technology needs to be sought to utilize the amount of CO2 gas in the block.

"That's why we are looking for how to use CO2. Incidentally looking for the technology has not been successful so there is no technology that utilizes CO2. "

Previously, the Indonesian Petroleum Engineers Association (IATMI) encouraged the government to accelerate the realization of the use of oil and gas resources in the East Natuna Block, Natuna Regency, Riau Islands.

IATMI Chairperson Tutuka Ariadji said that the Natuna region has huge oil and gas potential, and needs to be utilized properly for domestic energy needs and export needs. He said the development of the East Natuna Block to increase national gas production needs to be harmonized with policies to increase domestic demand, so that projects that are delayed are very high.

IATMI Chairperson Tutuka Ariadji said that the Natuna region has huge oil and gas potential, and needs to be utilized properly for domestic energy needs and export needs. He said that the development of the East Natuna Block to increase national gas production needs to be harmonized with the policy to increase domestic demand, so that the project that is delayed for a long time can operate.

For information, oil and gas reserves in this block were discovered in 1974 by ExxonMobil. The reserves are 12,000 MMBOE, but because of the large carbon dioxide content, this block has not been produced.

IN INDONESIAN

Target Investasi Hulu Migas Sulit Tercapai

Realisasi investasi di sektor Hulu migas tahun ini diperkirakan tidak akan tercapai sesuai target yang ada dalam Anggaran Pendapatan dan Belanja Negara (APBN) 2018 yang ditetapkan senilai US$ 14,2 miliar

Per 31 Oktober, realisasi investasi di sektor itu hanya US$ 8,7 miliar (belum termasuk wilayah kerja eksplorasi) atau sekitar 61%. Akhir tahun, diperkirakan capaiannya hanya 79%. Kepala SKK Migas Amien Sunaryadi mengatakan tidak tercapainya target investasi tersebut karena faktor IRR (Internal Rate of Return) yang rendah dan kepastian hukum yang mendukung realisasi investasi di sektor hulu migas.

“Investor pasti akan memperhatikan IRR-nya berapa. Investor akan membandingkan dengan IRR yang didapat dari negara lain. Investor pasti mencari yang IRR nya besar,” katanya.

Tingkat pengembalian investasi yang menarik tentunya membuat investor lebih memilih negara tujuan investasi. Amien menyebutkan apabila IRR di Indonesia tinggi, maka investor pun akan memilih berinvestasi di Indonesia. Persoalan lain adalah kepastian hukum, Investor membutuhkan kepastian hukum seperti regulasi, ini karena investor membutuhan kepastian hukum sebelum berinvestasi.

Selain itu, Amien menambahkan tren investasi hulu migas juga dipengaruhi oleh penemuan cadangan baru di Indonesia. Semakin banyak penemuan cadangan migas di Indonesia, akan berkorelasi positif terhadap realisasi investasi hulu migas. Selama ini masih belum banyak penemuan cadangan migas baru karena sedikitnya pelaksanaan kegiatan eksplorasi.

“Tren investasi hulu migas itu lebih banyak dipengaruhi dengan adanya discovery yang besar atau tidak. Kalau besar maka investasi untuk membangun fasilitasnya besar. Tapi kalau discovery-nya kecil, ya fasilitasnya kecil. Artinya investasi-nya ya kecil. Jadi faktor yang menentukan itu discovery-nya kecil apa besar,” katanya.

Terkait kinerja SKK Migas pada 2019 mendatang, Amien mengatakan pihaknya hanya akan fokus pada eksplorasi dan menjaga agar cost recovery tidak melebihi 100%.  Untuk menekan cost recovery Amien memastikan tidak akan mengorbankan kualitas penggunaan produk, salah satunya besi dan baja.

Serapan produk baja lokal perlu memperhatikan kemampuan pemanufaktur untuk menyediakan barang. Untuk itu, pilihan untuk mengoptimalkan penggunaan barang dan jasa dalam negeri perlu menghadirkan komitmen dari pabrikan baja lokal.

Dari sisi produsen baja lokal, ada harapan untuk memprioritaskan penggunaan produk lokal, dalam bisnis hulu migas. Untuk itu, SKK Migas dan Asosiasi Industri Besi dan Baja Indonesia (IISIA) mendatangani Nota Kesepahaman tentang perlunya mekanisme penetapan harga wajar produksi dalam negeri serta adanya technical assistance dari HSIA kepada SKK Migas. 

Amien mengatakan dengan adanya MoU tersebut, SKK Migas memang berharap ada penggunaan baja lokal di sektor hulu migas. 

Dengan kualitas produk yang sama dengan produk impor, selanjutnya yang akan dicermati adalah mengenai harga. Direktur Utama PT Pertamina EP Nanang Abdul Manaf menyambut baik komitmen SKK Migas untuk memastikan penggunaan produk dalam proyek hulu migas wajib sesuai standar.

“Kami mendukung karena ada kepastian, kemudian juga Kepala SKK Migas sudah menjelaskan. Bahwa kualitas tidak bisa ditawar, kedua harga yang juga kompetitif, ketiga pengirimannya, jadi waktunya harus tepat,” katanya.

Pada kesempatan yang sama, Ketua Umum IISIA Silmi Karim mengatakan, tidak ada permasalahan soal kualitas ataupun harga. Menurutnya, penggunaan produk dalam negeri, adalah bicara semangat membangun industri nasional.

EAST NATUNA

Sementara itu, pengembangan Blok Natuna D Alpha atau yang juga disebut sebagai East Natuna berpotensi terhambat karena masih belum ditemukannya teknologi pemanfaatan gas karbondioksida (CO2). Amien mengatakan Blok East Natuna diprediksi memiliki volume gas yang cukup besar. Hanya saja, sebesar 72% dari gas yang ditemukan tersebut adalah karbondioksida.

“Nah jadi kalau gas itu diproduksi, CO2-nya itu dialihkan kemana? Kalau CO2 nya mau dijadikan bahan bakar tidak bisa. Kalau dibuang, besar sekali nanti merusak lingkungan,” katanya.

Oleh karena itu, dia menambahkan, perlu dicari teknologi untuk memanfaatkan besarnya gas CO2 dalam blok tersebut. 

“Karena itu dicari bagaimana memanfaatkan CO2. Kebetulan mencari teknologinya belum berhasil jadi belum ada teknologi yang memanfaatkan CO2.”

Sebelumnya, Ikatan Ahli Teknik Perminyakan Indonesia (IATMI) mendorong pemerintah mempercepat realisasi pemanfaatan sumber minyak dan gas (migas) di Blok East Natuna, Kabupaten Natuna, Kepulauan Riau.

Ketua Umum IATMI Tutuka Ariadji mengatakan kawasan Natuna memiliki potensi migas sangat besar, dan perlu dimanfaatkan dengan baik untuk kebutuhan energi dalam negeri dan kebutuhan ekspor. Dia mengatakan pengembangan Blok East Natuna untuk meningkatkan produksi gas nasional itu perlu diselaraskan dengan kebijakan untuk meningkatkan permintaan domestik, sehingga proyek yang tertunda sangat lama itu bisa beroperasi.

Untuk diketahui, cadangan migas pada blok ini telah ditemukan pada 1974 oleh ExxonMobil. Cadangannya sebesar 12.000 MMBOE, tetapi karena besarnya kandungan karbon dioksida, blok ini belum diproduksikan.

Bisnis Indonesia, Page-24, Monday, Nov 12, 2018

Pertamina Begins Drilling July 2019

PT Pertamina EP Cepu plans to begin drilling wells for the development of the Jambaran-Tiung Biru Unitization Field in July 2019.

Pertamina EP Managing Director Cepu Jamsaton Nababan said that initial civil works such as wellpad and road access had been completed so that next year drilling mobilization would be carried out.

the Jambaran-Tiung Biru Unitization Field

"We expect drilling to succeed. Imagine six wells must produce 330 MMscfd [production capacity], so one well must be able to 60 MMscfd. This is the first time in Indonesia, usually one well 10 MMscfd. How challenging this project would be if it failed to drill again it would be called a cost, "said Jamsaton, in a Press Conference on the Jambaran-Tiung Biru Development Project in Jakarta.

The plan is that the Company will drill four production wells at Wellpad Jambaran East in the third / 2019 quarter I / 2020 quarter. Then, drilling two production wells at Wellpad Jambaran Central in quarter II / 2020-quarter IV / 2020. The Jambaran-Tiung Biru (JTB) production target (onstream) is the II / 2021 quarter.

At present, the company is conducting a tender process for the procurement of well rigs to support the drilling activities of the production subsidiary of PT Pertamina (Persero). JTB General Manager Bob Wikan H Adibrata said that the overall progress of the JTB project's physical work was almost 9%. The achievement is claimed according to the target.

"The engineering work is a little delay due to licensing issues. From planning it is still on the track. The challenge is now entering the rainy season, if the floods affect the delivery of materials and physical work in the field, "he said.

The total investment value of this project originally reached US $ 2.05 billion. But with efforts to optimize, the project investment can be reduced to US $ 1, S billion

OPTIMIZATION

The company also optimizes the design of the project. As a result, the gas production from the project in Bandungrejo Village, Bojonegoro Regency, East Java, will increase by 2.0 MMscfd. The initial plan of the project would be to produce 172 MMscfd of gas.

Pertamina EP President Director Cepu Jamsaton Nababan said and the production allocation of 100 MMscfd was intended for Pertamina, which was then channeled to PLN for electricity needs in East Java and Central Java. The 72 MMScfd gas will supply industrial needs in Central and East Java. Meanwhile, it is looking for potential buyers for gas allocation of 20 MMscfd.

"Is the process going to all Persero or other buyers. If there is interest, please, "he said.

The price of gas at the well of the project is US $ 6.7 per million British thermal unit (MMBtu), flat for 30 years. With a toll fee of US $ 0.9 MMU, the price at the PLN power plant is US $ 7.6 per MMBtu.

PT Rekayasa Industri (Rekind) as the main contractor for the project's engineering, procurement and construction (EPC) work, under construction of the Gas Processing Facilities (GPF) seeks to maximize the Domestic Component Level (DCL/TKDN). The GPF TKDN target is targeted to reach 40.03%.

"The TKDN target must be achieved. Rekind even has a higher goal must be more than 40%. Our vendors are open to local. If you have competency and the price can be competition, we are open, "said Managing Director of Rekind Yanuar Budinorman.

IN INDONESIAN

Pertamina Mulai Pengeboran Juli 2019

PT Pertamina EP Cepu berencana mulai melakukan pengeboran sumur proyek pengembangan Lapangan Unitisasi Jambaran-Tiung Biru pada Juli

2019.

Direktur Utama Pertamina EP Cepu Jamsaton Nababan mengatakan, pekerjaan sipil awal seperti wellpad dan akses jalan telah selesai dikerjakan sehingga tahun depan mobilisasi pengeboran akan dilakukan.

“Kami harapkan pengeboran berhasil. Bayangkan enam sumur harus menghasilkan 330 MMscfd [kapasitas produksi], jadi satu sumur harus bisa 60 MMscfd. Ini pertama kali di Indonesia, biasanya satu sumur 10 MMscfd. Betapa menantangnya proyek ini kalau gagal harus mengebor lagi itu namanya biaya,” ujar Jamsaton, dalam Konferensi Pers Proyek Pengembangan Jambaran-Tiung Biru di Jakarta.

Rencananya Perseroan akan mengebor sebanyak empat sumur produksi di Wellpad Jambaran East pada kuartal III/2019-kuartal I/2020. Kemudian, mengebor dua sumur produksi di Wellpad Jambaran Central pada kuartal II/2020-kuartal IV/2020.  Target produksi (onstream) Jambaran-Tiung Biru (JTB) adalah kuartal II/2021.

Saat ini, perseroan sedang melakukan proses tender pengadaan rig sumur untuk menunjang kegiatan pengeboran sumur produksi anak usaha PT Pertamina (Persero) tersebut. General Manager JTB Bob Wikan H Adibrata mengatakan, secara keseluruhan kemajuan pekerjaan fisik proyek JTB hampir mencapai 9 %. Capaian tersebut diklaim sesuai dengan target.

“Pekerjaan engineering sedikit delay karena persoalan lisensi. Dari perencanaan masih on the track. Yang menjadi tantangan saat ini sudah memasuki musim hujan, kalau banjir mempengaruhi pengiriman material dan pekerjaan fisik lapangan,” katanya.

Total nilai investasi proyek ini semula mencapai US$ 2,05 miliar. Namun dengan upaya optimalisasi, investasi proyek tersebut dapat diturunkan menjadi US$ 1,S miliar

OPTIMALISASI

Perseroan juga melakukan optimalisasi terhadap desain proyek tersebut. Hasilnya, produksi gas dari proyek yang berada di Desa Bandungrejo, Kabupaten Bojonegoro-Jawa Timur itu akan bertambah sebesar 2.0 MMscfd. Rencana awal proyek tersebut akan akan menghasilkan gas 172 MMscfd. 

Direktur Utama Pertamina EP Cepu Jamsaton Nababan berujar dan produksi tersebut alokasi sebesar 100 MMscfd diperuntukkan untuk Pertamina, yang kemudian dialirkan ke PLN untuk kebutuhan listrik di Jawa Timur dan Jawa Tengah. Adapun gas sebanyak 72 MMScfd akan memasok kebutuhan industri di Jawa Tengah dan Jawa Timur. Sementara itu, pihaknya sedang mencari calon pembeli untuk alokasi gas sebesar 20 MMscfd.

“Sedang proses apakah ke Persero semua atau buyers lain. Kalau ada yang minat silakan,” katanya.

Harga gas di mulut sumur untuk proyek tersebut adalah US$ 6,7 per juta british thermal unit (MMBtu), tetap (flat) selama 30 tahun. Dengan biaya toll fee sebesar US$ 0,9 MMbtu, harga di pembangkit listrik PLN menjadi sebesar US$ 7,6 per MMBtu.

PT Rekayasa Industri (Rekind) sebagai kontraktor utama pekerjaan rekayasa, pengadaan dan konstruksi atau Engineering, Procurement, Construction (EPC) proyek tersebut, dalam pengerjaan Gas Processing Facilities (GPF) berupaya untuk memaksimalkan Tingkat Komponen Dalam Negeri (TKDN). Target TKDN GPF ditargetkan mencapai 40,03%.

“Target TKDN harus capai. Rekind malah punya tujuan lebih tinggi harus lebih dari 40%. Vendor kami buka untuk lokal. Kalau punya kompetensi dan harga bisa kompetisi, kami buka,” kata Direktur Utama Rekind Yanuar Budinorman. 

Bisnis Indonesia, Page-10, Saturday, Nov 10, 2018 

Japan & Algeria buy Indonesian CPO

High demand from Japan and Algeria for Indonesia's crude palm oil (CPO) products shows that the commodity export market is increasingly widespread. Japan and Algeria are included in the country with the largest purchase value during the 2018 Indonesia Trade Expo.

Trade Minister Engartiartio Lukita said that the high demand from the two countries showed that Indonesian CPO began to penetrate the market outside traditional buyer countries such as China, India, and countries in the European Union.

Crude Palm Oil (CPO)

"Many of our CPO buyers are new, not old ones. So palm oil businesses do not complain later when asked to deposit export levies, "he said on Friday (11/9).

Based on data from the Ministry of Trade, the CPO trade agreement produced in the 2018 Indonesia Trade Expo reached US $ 132.5 million. As for, the biggest buyers are Japan, India, Algeria, Bulgaria and Romania with a value of purchases of US $ 111, 87 million, US $ 11.17 million, US $ 6.10 million, US $ 2.73 million and US $ 0.48 million.

However, the Trade Method underlines, Algeria is a country that does not belong to the World Trade Organization (WTO) so that Indonesia cannot resolve trade disputes with these countries in international forums. Director General of Foreign Trade at the Ministry of Trade, Oke Nurwan, explained that despite not being a member of the WTO, Indonesia had never experienced a dispute with Algeria.

"Yes, at this time it hasn't, yes it's still safe, it's not that far, and the risk is still not visible," he said.

COMPETITION

Oke said, Algeria is still not included in developed countries and it is likely that they will need vegetable oils that have competitive prices, namely CPO.

Algeria is likely to be good, because they have potential for us, and the demand for vegetable oil supplied by palm oil is 43%, we are more competitive, "he said.

To answer this potential, the Trade Ministry scheduled a visit to Algeria later this month. For Japan, okay say the Indonesian government will try to make Sakura State recognize the Indonesian Sustainable Palm Oil (ISPO) standard, and at present, Japan has recognized the Roundtable on Sustainable Palm Oil (RSPO) standard.

Chairperson of the Standing Committee for Export Development of the Indonesian Chamber of Commerce and Industry Handito Joewono said that Indonesia had already had to began giving up traditional market CPO dependence. Because, every country must have a mechanism to protect its domestic market from foreign products, including Indonesia.

IN INDONESIAN

Jepang & Aljazair Membeli CPO Indonesia

Permintaan tinggi dari Jepang dan Aljazair untuk produk minyak sawit mentah (CPO) Indonesia menunjukkan pasar ekspor komoditas tersebut semakin Iuas. Jepang dan Aljazair termasuk dalam negara dengan nilai pembelian terbesar selama Trade Expo Indonesia 2018. 

Meteri Perdagangan Enggartiasto Lukita mengatakan, permintaan yang tinggi dari kedua negera menunjukkan CPO Indonesia mulai merambah pasar di luar negara pembeli tradisional seperti China, India, dan negara-negara di Uni Eropa.

“Pembeli CPO kita ini banyak yang baru, bukan yang Iama. Jadi pelaku usaha sawit jangan komplain Iagi kalau diminta menyetorkan pungutan ekspor,” katanya, Jumat (11/9).

Berdasarkan data Kemendag, perjanjian dagang CPO yang dihasilkan dalam Trade Expo Indonesia 2018 mencapai US$ 132,5 juta. Adapun, negara pembeli terbesar adalah Jepang, India, Aljazair, Bulgaria dan Rumania dengan nilai pembelian masing-masing US$ 111 ,87 juta, US$ 11,17 juta, US$ 6,10 juta, US$ 2,73 juta, dan US$ 0,48 juta.

Hanya saja, Meteri Perdagangan menggarisbawahi, Aljazair merupakan negara yang bukan temiasuk ke dalam World Trade Organization (WTO) sehingga Indonesia tidak bisa menyelesaikan sengketa dagang dengan negara tersebut di forum internasional. Direktur Jenderal Perdagangan Luar Negeri Kemeterian PerdaganganOke Nurwan menjelaskan, meski tidak menjadi anggota WTO, Indonesia belum pernah mengalami sengketa dengan Aljazair.

“Iya saat ini belum, iya masih aman saja, belum sejauh itu lah, dan risikonya juga masih belum bisa terlihat,” katanya.

KOMPETISI

Oke mengatakan, Aljazair masih belum termasuk negara maju dan besar kemungkinan mereka akan membutuhkan minyak nabati yang memiliki harga kompetitif, yakni CPO.

Aljazair kemungkinan akan bagus, karena mereka potensi bagi kita, dan kebutuhan minyak nabati dipasok oleh sawit itu 43%, kita lebih kompetitif,” ujarnya.

Untuk menjawab potensi tersebut Meteri Perdagangan menjadwalkan kunjungan ke Aljazair akhir bulan ini. Untuk Jepang, Oke mengatakan pemerintah Indonesia akan berusaha agar Negara Sakura mengakui standar Indonesian Sustainable Palm Oil (ISPO]. Saat ini, Jepang telah mengakui standar Roundtable on Sustainable Palm Oil (RSPO).

Ketua Komite Tetap Pengembangan Ekspor Kamar Dagang dan Industri Indonesia Handito Joewono mengatakan, Indonesia memang sudah harus mulai merelakan ketergantungan CPO pasar tradisional. Pasalnya, setiap negara pasti memiliki mekanisme untuk melindungi pasar dalam negerinya dari produk Iuar negeri, termasuk Indonesia.

Bisnis Indonesia, Page-10, Saturday, Nov 10, 2018 

Look for ExxonMobil Investment Opportunities to Meet Jokowi

ExxonMobil took over 100% of PT Federal Karyatama from the old shareholder, PT Mitra Pinasthika Mustika Tbk. The acquisition process is expected to further strengthen the position of PT ExxonMobil Lubricants Indonesia to market lubricants through a network of distributors throughout

Indonesian territory.

Meanwhile, ExxonMobil's Chief Executive Officer Darren Woods met with President Joko Widodo at Merdeka Palace on Thursday (8/11). In the meeting which began at around 09.00 to 09.30 WIB, the President was accompanied by Deputy Minister of Energy and Mineral Resources Archandra Tahar and Maritime Coordinating Minister Luhut Binsar Panjaitan.

After the meeting, Arcandra said the meeting between ExxonMobil and President Jokowi discussed the development of investment in the oil company from the United States in Indonesia.

Banyu Urip Field, Cepu Block

"Their production [Banyu Urip Field, Cepu Block] is now much higher and expected. What is expected is 180,000 bpd, they are now 207,000 barrels per day, "Archandra said.

In addition, according to him, there is the potential for additional oil reserves. This is good news for Indonesia. In addition, Archandra said that Exxon's party appreciated investment in the oil sector in Indonesia. According to him, regulations that are based on convenience, certainty and efficiency in Indonesia are in line with US culture.

IN INDONESIAN

Cari Peluang Investasi ExxonMobil Temui Jokowi

ExxonMobil mengambil alih PT Federal Karyatama sebesar 100% dari pemegang saham lama, yakni PT Mitra Pinasthika Mustika Tbk. Proses akuisisi diperkirakan semakin memperkuat posisi PT ExxonMobil Lubricants Indonesia untuk memasarkan pelumas melalui jaringan distributor di seluruh wilayah Indonesia.

Sementara itu, Chief Executive Officer ExxonMobil Darren Woods menemui Presiden Joko Widodo di Istana Merdeka, Kamis (8/11). Dalam pertemuan yang dimulai sekitar pukul 09.00 hingga 09.30 WIB itu, Presiden didampingi oleh Wakil Menteri Energi dan Sumber Daya Mineral Archandra Tahar dan Menteri Koordinator Bidang Kemaritiman Luhut Binsar Panjaitan.

Seusai pertemuan, Arcandra mengatakan pertemuan antara ExxonMobil dan Presiden Jokowi itu membahas perkembangan investasi perusahaan minyak dari Amerika Serikat itu di Indonesia. 

“Produksi mereka [Lapangan Banyu Urip, Blok Cepu] sekarang jauh lebih tinggi dan yang diharapkan. Yang diharapkan 180.000 bph, mereka itu sekarang 207.000 barrel per hari,” kata Archandra.

Di samping itu, menurutnya, ada potensi penambahan cadangan minyak. Hal tersebut merupakan berita baik buat Indonesia. Di samping itu, Archandra mengatakan bahwa pihak Exxon mengapresiasi mengenai investasi di sektor minyak di Indonesia. Menurutnya, regulasi yang mendasarkan pada kemudahan, kepastian dan efisiensi di Indonesia sejalan dengan kultur Amerika Serikat.

Kontan, Page-13, Friday, Nov 9, 2018

ExxonMobil is increasingly aggressive in downstream oil and gas

In addition to being active in the upstream oil and gas sector, oil companies from the United States, ExxonMobil are committed to aggressively investing in oil and gas downstream. One of the projects in the downstream sector that is being completed is the construction of a storage and shipping facility for fuel oil (BBM) in Balikpapan which is expected to start operating in 2020.

The fuel oil terminal (TBBM) located in Balikpapan is a result of collaboration between PT ExxonMobil Lubricants Indonesia and PT Karingau Gapura Terminal Energi to exclusively lease fuel storage and shipping facilities. ExxonMobil Indonesia's Vice President Public and Government Affair Erwin Maryoto said that Balikpapan TBBM will begin in 2020.

The agreement between Karingau Gate of Energi Terminal costs at least US $ 100 million.

"The plan is [operating the BBM storage facility] 2020," he said.

In addition to strengthening investment in TBBM, ExxonMobil has also completed the acquisition of Federal Lubricant worth US $ 436 million. With this acquisition, making the company from Uncle Sam's country get the Federal Oil selling brand and a lubricant production plant with a capacity of 700,000 barrels per year in Cilegon, Banten, West Java.

IN INDONESIAN

ExxonMobil Semakin Agresif di Hilir Migas

Selain aktif di sektor hulu minyak dan gas bumi, perusahaan minyak dari Amerika Serikat, ExxonMobil berkomitmen untuk agresif berinvestasi di hilir migas. Salah satu proyek di sektor hilir yang sedang diselesaikan adalah pembangunan fasilitas penyimpanan dan pengiriman Bahan Bakar Minyak (BBM) di Balikpapan yang diperkirakan akan mulai beroperasi pada 2020.

Terminal bahan bakar minyak (TBBM) yang berlokasi di Balikpapan itu merupakan basil kerja sama antara PT ExxonMobil Lubricants Indonesia dengan PT Karingau Gapura Terminal Energi untuk secara ekslusif menyewakan fasilitas penyimpanan dan pengiriman bahan bakar Vice President Public and Government Affair ExxonMobil Indonesia Erwin Maryoto mengatakan, operasional TBBM Balikpapan akan dimulai pada 2020.  

   Kesepakatan antara Karingau Gapura Terminal Energi memakan biaya sedikitnya US$100 juta.

“Rencananya [pengoperasian fasilitas penyimpanan BBM] 2020," katanya.

Selain memperkuat investasi di TBBM, ExxonMobil juga telah menyelesaikan proses akuisisi Federal Lubricant senilai US$ 436 juta. Dengan akuisisi ini, membuat perusahaan dari Negeri Paman Sam itu mendapatkan merek jual Federal Oil dan pabrik pencampuran produksi pelumas dengan kapasitas 700.000 barel per tahun di Cilegon, Banten-Jawa Barat.

Bisnis Indonesia, Page-24, Friday, Nov 9, 2018

Oil and Gas Revenue Exceeds Target

Slow Exploration, Decreasing Production

The increase in oil prices brings blessings to state revenues. Because the price of black gold has soared, state revenues until the end of 2018 from the upstream oil and gas sector are projected to reach USD 17.5 billion or IDR 257.25 trillion (exchange rate of IDR 14,700). That figure reached 147 percent of the target in the 2018 State Budget which was set at USD 1 1.9 billion.

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that up to October 31, 2018 state revenues from the upstream oil and gas sector reached USD 14.6 billion or Rp 214.62 trillion. That figure is 123 percent of the 2018 state budget target. Head of SKK Migas Amien Sunaryadi said that the country's revenues are closely related to national oil and gas production and the increase in world oil prices.

"Until the end of the year, the largest oil and gas production is projected to continue to come from Chevron in the Rokan Block, then Exxon Mobil in Banyu Urip," he said.

the Rokan Block

The achievement of oil and gas lifting until October 31, 2018 is only 96 percent of the 2018 State Budget target of 2 million barrel oil equivalent per day (BOEPD). Oil and gas production in that period only touched 1.917 million BOEPD. Meanwhile, until the end of the year oil and gas production is projected to only reach 1.916 million BOEPD.

The failure of oil and gas lifting is due to the decline in oil and gas production in the country because 79 percent of oil and gas fields in Indonesia are old. Meanwhile, production of 77 percent of oil and gas fields in Indonesia shows a downward trend.

"National lifting is going down, what do you want to do too," he added.

According to him, one of the reasons is the lack of oil and gas exploration carried out by the government. So far the government has relied on private investment to explore oil and gas in the country.

 the Banyu Urip Field

"The state is not serious about exploration. Banyu Urip originally had Pertamina, but it was not discovery. Humpuss held discovery discovery as well. After that, Exxon held it, the discovery was very big because they wanted a very wide 3D seismic investment, "he explained.

Since 1940, the largest oil and gas blocks in the country have always been found by foreign companies. Among other things, the Minas Field as the largest oil and gas field in ASEAN in the Rokan Block was discovered by Chevron in 1941.

IN INDONESIAN

Penerimaan Migas Lampaui Target

Eksplorasi Lambat, Produksi Menurun

Kenaikan harga minyak membawa berkah pada penerimaan negara. Gara-gara harga emas hitam itu melambung, penerimaan negara hingga akhir 2018 dari sektor hulu migas diproyeksikan bisa mencapai angka USD 17,5 miliar atau Rp 257,25 triliun (kurs Rp 14.700). Angka itu mencapai 147 persen dari target dalam APBN 2018 yang ditetapkan USD 1 1,9 miliar.

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) mencatat, hingga 31 Oktober 2018 penerimaan negara dari sektor hulu migas mencapai USD 14,6 miliar atau Rp 214,62 triliun. Angka itu 123 persen dari target APBN 2018. Kepala SKK Migas Amien Sunaryadi mengatakan, penerimaan negara tersebut berhubungan erat dengan produksi migas nasional dan kenaikan harga minyak dunia. 

"Hingga akhir tahun nanti diproyeksikan produksi migas terbesar tetap berasal dari Chevron di Blok Rokan, lalu Exxon Mobil di Banyu Urip,” ungkapnya.

Pencapaian lifting migas hingga 31 Oktober 2018 hanya 96 persen dari target APBN 2018 sebesar 2 juta barrel oil equivalent per day (BOEPD). Produksi migas pada periode tersebut hanya menyentuh 1,917 juta BOEPD. Sedangkan hingga akhir tahun produksi migas diproyeksikan hanya 1,916 juta -BOEPD. 

Melesetnya lifting migas disebabkan menurunnya produksi migas di tanah air lantaran 79 persen lapangan migas di Indonesia sudah tua. Sementara itu, produksi 77 persen lapangan migas di Indonesia menunjukkan tren menurun. 

"Lifting nasional turun, mau diapakan juga turun" imbuhnya. 

Menurut dia, salah satu penyebabnya adalah masih minimnya eksplorasi migas yang dilakukan pemerintah. Selama ini pemerintah bergantung pada investasi swasta untuk mengeksplorasi migas di tanah air.

”Negara tidak serius untuk eksplorasi. Banyu Urip awalnya punya Pertamina, tetapi tidak discovery. Dipegang Humpuss juga ridak discovery. Setelah itu dipegang Exxon, akhirnya discovery sangat besar karena mereka mau investasi seismik 3D luas sekali,” urainya.

Sejak 1940, blok-blok migas terbesar di tanah air selalu ditemukan perusahaan asing. Di antaranya, Lapangan Minas sebagai lapangan migas terbesar di ASEAN di Blok Rokan ditemukan Chevron pada 1941.

Jawa Pos, Page-5, Friday, Nov 9, 2018

Old Block Dominates

   The downward trend in crude oil production since 2008-2018 was due to 79% of the oil and gas working area being old so that production decreased naturally.

Oil production ready for sale (lifting) in 2008 amounted to 927,000 barrels per day (bpd), but continued to decline until this year in the range of 750,000-800,000 bpd. On the other hand, consumption of fuel oil (BBM) continues to grow. Therefore, the fuel supply deficit continues to widen so that the volume of imports of oil and fuel oil continues to increase.

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Amien Sunaryadi said that 79% of oil and gas fields in Indonesia are more than 15 years old.

"This is the case, the oil and gas production volume has been estimated since the beginning of the oil and gas field, since the time of deciding this field will be built. That is, if for example the era of President SBY [Susilo Bambang Yudhoyono] was high lifting, but the era of President Jokowi [Joko Widodo] declined, it had nothing to do because the field was mature, "he said.

Amien added, in addition to production down, old oil and gas fields tend to require greater maintenance costs so that the production costs that must be returned (cost recovery) continue to rise.

"Why do costs increase, even though production drops? It was a false statement because the oil and gas field must be seen from the start [built] to the end. From the beginning of production, it will cost so much, then it will be reduced by capital expenditure and operations, the rest will be shared by the government and contractors

He explained that the new oil and gas fields were in the range of 6-7 years old. The new field will have high production and low costs. "But if the field is old, lifting is down and costs are rising."

BP Indonesia also acknowledges that investment in the energy sector, especially upstream oil and gas in Indonesia, tends to be very slow. This can be seen from oil production that has not experienced growth. BP Chief Economist Spencer Dale previously said, in the last 8 to 10 years, oil production in Indonesia had not experienced growth. In fact, the demand for energy such as oil and gas continues to increase every year.

"That ultimately makes Indonesia have to import [oil and fuel oil]," he said.

Similar to natural gas, Spencer said, gas production in Indonesia in the last 7 years has tended to be lower.

"Natural gas production in 2017 is lower by 20% compared to 2010."

However, unlike oil, the demand for gas has not experienced growth so that Indonesia can still export the commodity.

SLOW INVESTMENT

In addition to the downward trend in oil production, the government also faces the challenges of sloping oil and gas investment. Amien Sunaryadi said that there were many factors that triggered a decline in oil and gas investment in Indonesia. One of the factors is the rate of return that investors will receive.

"Oil and gas investment also has nothing to do with gross split. Their decision is due to the main things like the rate of return. This means, if they invest, what is the Rate of Return (ROR) they will receive. That's what investors are looking for, "he said.

Contracts for gross yields came into effect in early 2017 replacing the cost recovery scheme. However, the scheme only applies to new contracts. In addition to the investment return period, legal certainty has also been a trigger for the lack of investment in the oil and gas sector this year. Amien explained, investors are often hesitant to invest because there is no legal certainty. He stressed that the decline in investment had nothing to do with the president's leadership period.

"Then why is the investment declining, this has nothing to do with the President. There is a condition that Indonesia has increased fuel consumption, production has dropped, therefore crude imports and fuel are very high, they have to pay a lot of money, so the dollar strengthens. "

The downward trend in lifting is also caused by the majority of oil and gas blocks that produce, domestically are old. Therefore, the production of old oil and gas blocks will decline naturally.

Head of country BP Indonesia Moekianto Soeryowibowo said that there were three things that made investment in the energy sector slow. First, Indonesia is not prospective enough in the oil and gas sector. Second, fiscal problems. Regarding fiscal policy, he said the government only allocated very little budget for the energy sector. In fact, the budget for the energy sector is far smaller than the previous period.

"The fiscal is not competitive, so this is the government's challenge how can small budgets attract investors."

Third, very complicated regulations. However, the government continues to encourage investors to carry out oil and gas exploration activities in the country.

IN INDONESIAN

Blok Tus Mendominasi

Tren penurunan produksi minyak mentah sejak 2008-2018 disebabkan 79% wilayah kerja minyak dan gas bumi sudah berusia tua sehingga mengalami penurunan produksi secara alamiah.

Produksi minyak siap jual (lifting) pada 2008 sebesar 927.000 barel per hari (bph), tetapi terus turun hingga pada tahun ini di kisaran 750.000-800.000 bph. Di sisi lain, konsumsi Bahan Bakar Minyak (BBM) terus bertumbuh. Oleh karena itu, defisit suplai BBM terus melebar sehingga volume impor minyak dan bahan bakar minyak terus meningkat.

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Amien Sunaryadi mengatakan bahwa 79% lapangan migas di Indonesia berumur lebih dari 15 tahun. 

“Memang begini, di lapangan migas sejak awal sudah bisa di estimasi [volume produksi migas] , sejak waktu memutuskan lapangan ini akan dibangun. Artinya, kalau misalnya zaman Presiden SBY [Susilo Bambang Yudhoyono] lifting tinggi, tetapi zaman Presiden Jokowi [Joko Widodo] menurun, itu tidak ada hubungannya karena lapangannya sudah mature,” katanya.

Amien menambahkan, selain produksi turun, Iapangan migas berusia tua cenderung membutuhkan biaya perawatan lebih besar sehingga biaya produksi yang harus dikembalikan (cost recovery) terus naik.

“Mengapa biaya naik, padahal produksi turun? Itu pernyataan salah karena lapangan migas harus dilihat sejak awal [dibangun] sampai akhir. Dari awal produksi sekian biayanya sekian kemudian dikurangi belanja modal dan operasi, sisanya dibagi pemerintah dan kontraktor”

Dia menjelaskan bahwa lapangan migas yang masih baru berusia di kisaran 6-7 tahun. Lapangan yang masih baru itu akan memiliki produksi tinggi dan biaya rendah. “Namun kalau lapangan tua, lifting turun dan biaya naik.”

BP Indonesia juga mengakui bahwa investasi sektor energi khususnya hulu migas di Indonesia cenderung sangat lambat. Hal ini terlihat dari produksi minyak yang tidak mengalami pertumbuhan. Chief Economist BP Spencer Dale sebelumnya mengatakan, dalam 8 sampai 10 tahun terakhir, produksi minyak di Indonesia tidak mengalami pertumbuhan. Padahal, permintaan terhadap energi seperti minyak dan gas bumi terus meningkat setiap tahun. 

“Itu yang pada akhirnya membuat Indonesia harus impor [minyak dan bahan bakar minyak],” katanya.

Sama halnya dengan gas bumi, Spencer mengatakan, produksi gas di Indonesia dalam 7 tahun terakhir cenderung lebih rendah.

“Produksi gas bumi pada 2017 lebih rendah 20% dibandingkan 2010.”

Namun, berbeda dengan minyak, permintaan untuk gas tidak mengalami pertumbuhan sehingga Indonesia masih bisa melakukan ekspor komoditas tersebut.

INVESTASI MELAMBAT

Selain tren penurunan produksi minyak, pemerintah juga menghadapi tantangan investasi migas yang melandai. Amien Sunaryadi mengatakan bahwa banyak faktor yang menjadi pemicu penurunan investasi minyak dan gas bumi di Indonesia. Salah satu faktor itu berupa periode pengembalian modal (rate of retutn) yang akan diterima investor. 

“Investasi migas turun juga tidak ada hubungannya dengan gross split [skema kontrak bagi hasil kotor]. Keputusan mereka disebabkan karena hal-hal utama seperti rate of return. Artinya begini, kalau mereka investasi, berapa Rate of Return (ROR) yang akan mereka terima. Itu yang dicari investor,” katanya.

Kontrakbagi hasil kotor mulai berlaku pada awal 2017 menggantikan skema cost recovery. Namun, skema itu hanya berlaku untuk kontrak baru.  Selain periode pengembalian investasi, kepastian hukum juga menjadi pemicu minimnya investasi di sektor migas pada tahun ini. Amien menjeiaskan, para investor sering ragu untuk melakukan investasi karena tidak ada kepastian hukum. Dia menegaskan bahwa penurunan investasi tidak ada kaitannya dengan masa kepemimpinan seorang Presiden.

“Kemudian tentang investasi kenapa menurun, ini tidak ada hubungannya dengan Presiden. Yang ada kondisi Indonesia konsumsi BBM naik, produksi turun, karena itu impor crude dan fuel tinggi sekali harus bayar dolarnya banyak, makanya dolarnya menguatnya.”

Tren penurunan lifting juga disebabkan oleh sebagian besar blok migas yang berproduksi, di dalam negeri sudah berusia tua. Oleh karena itu, produksi blok migas yang sudah tua itu akan menurun secara alamiah.

Head of country BP Indonesia Moekianto Soeryowibowo mengatakan bahwa ada tiga hal yang membuat investasi di sektor energi menjadi Iambat. Pertama, Indonesia tidak cukup prospektif dalam sektor migas. Kedua, masalah fiskal. Terkait dengan kebijakan fiskal, dia mengatakan pemerintah hanya mengalokasikan anggaran sedikit sekali untuk sektor energi.  Bahkan, anggaran untuk sektor energi jauh lebih kecil dibandingkan dengan periode sebelumnya. 

“Fiskalnya tidak kompetitif, jadi ini tantangan pemerintah bagaimana dengan anggaran kecil bisa menarik pada investor.”

Ketiga, regulasi yang sangat rumit. Namun, pemerintah terus mendorong investor untuk melakukan kegiatan eksplorasi migas di Tanah Air.

Bisnis Indonesia, Page-24, Friday, Nov 9, 2018

Planned subsidiary to run oil, gas block

State energy holding firm Pertamina is looking to set up a new subsidiary that will manage the Rokan Block, one of the country’s biggest oil and gas blocks, after it was awarded the tender ahead of former operator Chevron Pacific Indonesia (CPI).

Chevron Pacific Indonesia (CPI)

This was revealed by the senior vice president for upstream strategic planning, portfolio and evaluation at Pertamina, Meidawati, at an oil and gas seminar in Jakarta recently.

"We have a plan [to set up a new subsidiary] for the block. It is in the pipeline and we are still assessing the option,” she said, adding that a new unit would help the company speed up the adaptation process of managing the block.

CPI, a subsidiary of United States-based oil and gas giant Chevron, is still operating the block, which will be managed by Pertamina from 2021 to 2041. CPI is operating it under the old Production Sharing Contract (PSC) based on a cost recovery scheme, which will be replaced by a new method called a gross split. 

the Mahakam Block

Pertamina’s plan to establish a new subsidiary is based on its experience with one of its upstream units, Pertamina Hulu Mahakam (PHM), which took over the Mahakam Block in East Kalimantan from France’s Total E&P Indonesie.

Total E&P Indonesie

Meidawati said Pertamina was also assessing the option of managing the Rokan Block with a partner as investors have shown an interest to jointly manage the block The governnients decision to Choose Pertamina to operate the block in July Caused a stir, leading to some alleging that rising nationalistic sentiment in the energy sector was behind it.

However, experts say setting up anew subsidiary to operate the block is a move in the right direction as long as the decision making process emanates from Pertamina’s head office, adding that it would help it to simplify the operating process. 

Pri Agung Rakhmanto, a researcher at Jakarta based energy research group the ReforMiner Institute, said setting up a second tier company was an usual thing for Pertamina to do in light of its upstream strategy, adding that the move would not create problems due to it being directly controlled from head office.

Toto Pranoto, a state-owned enterprises expert at the University of Indonesia, said he believed that creating a new subsidiary was due to Pertamina’s need to ease its performance calculation and its PSC With the government. Based on Pertamina’s previous experience with its upstream subsidiaries, Toto projected that the prospective Rokan subsidiary would likely produce less oil and gas compared to the block’s previous operator, Chevron, due to a long adaptation process in terms of technology use.

Blogger Agus Purnomo in PT. PHE West Madura Offshore (WMO)

A case in point, he said, was the weak performance of Pertamina’s upstream subsidiary Pertamina Hulu Energy (PHE), which operates the West Madura Offshore (PHE-WMO) in Gresik, because the unit failed to maintain block oil production in 2011.

the Rokan Block

Several reports at the time stated that production fell from an average of 14,000 barrels of oil per day (bopd) to only 1,200 bopd. Meidawati acknowledged that it would be a challenge to maintain production at Rokan over the next three years as it had matured, or Was entering a phase of decline.

the Rokan Block

“There is something that We could learn there [in the Rokan Block] because it will be a test for us to manage this big block, of which oil production now has declined by 20,000 bopd in less than a year,” the Pertamina’s senior vice president said.

Pertamina is in the process of paying its US$ 784 million signature bonus to the government as one of the requirements in the Rokan Block deal, and the funds will be considered as non-tax revenue (PNBP).

It has vowed that the transaction would be finalized no later than this year. Once the bonus has been transferred to the government, the official contract for Pertamina to take over the block will be signed.

Jakarta Post, Page-13, Friday, Nov 9, 2018