Double trouble ahead for oil and gas industry

The global oil price, which is predicted to be far lower than US$ 100 per barrel, and a small fund for exploration are two challenges the oil and gas industry would face next year, according to the Indonesia Petroleum Association (IPA) on Wednesday.

The statement came after the association gathered for its 4-7th annual general meeting on Wednesday to elect a new President for a one-year term and to review its workin 2018.

Despite the challenges, the association’s newly elected President Tumbur Parlindungan said the association was still upbeat and would work closely with the government to overcome the problems, especially on the exploration issue. 

“Next year we will strive to make our industry much more attractive [than other countries], after what has actually been a great year for us,” he said at a press conference.

The need for exploration to find oil and gas reserves in the country was voiced two days ago by Energy and Mineral Resources Minister Ignasius Jonan during the inauguration of Dwi Soetjipto as the new head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas).

The message was timely considering around 77 percent of 89 onstream oil and gas blocks have seen declining production. Indonesia is a net oil importer because domestic oil output can only supply half of oil demand.

Aside from the low oil price and the exploration issue, IPA will also deal with Government Regulation No. 27/2017 on taxin-centives for exploration activities and implementation of the gross split scheme.

Throughout 2018, the association, which consists of 37 oil and gas companies and 116 services firms, has solved at least four government-related issues, says Ronald Gunawan, the former IPA president director.

“First, a partnership with SKK Migas and the Finance Ministry on gross split implementation and second, a revision of the Trade Ministry’s decision to include the oil and gas sector in the letter of credit policy” said Ronald, who is also the chief operating oflicer of publicly listed energy company Medco Energi.

The remaining two issues were the simplification of a state audit into the sector from three times by different auditors to only one time and cooperation With the Corruption Eradication Commission (KPK) on business ethics compliance.

Tumbur said the governments decision 'to simplify the production sharing contract from cost recovery to gross split was seen as a “non issue” inside the association.

ENI S.p.A [an Italy-based energy Firm]

“Whether it is cost recovery or gross split, We think it Would be no problem for us. For example just yesterday ENI S.p.A [an Italy-based energy Firm] has approve e conversion of their contract,” he added. 

East Sepinggan block, offshore East Kalimantan

It was the contractin East Sepinggan block, offshore East Kalimantan that, according to Deputy Energy and Mineral Resources MinisterArcandra Tahar; needed to be switched to avoid debates about the cost of the project.

Tumbur, Who is also the president director of Saka Energy added that IPA was set to hold a strategic meeting in January 2019 to discuss other common issues in the upstream sector

Saka Energy is an upstream subsidiary of state gas firm PT Perusahaan Gas Negara. Data from SKK Migas show that investment in the upstream sector until September only reached $7.9 billion, or around 56 percent of the full year target of US$ 14.2 billion. Therefore, SKK Migas has predicted investment realization in the upstream sector to only reach $ 11.2 billion, or 78 percent of the full year target.

The global oil price, which is crucial for an oil and gas contractor to decide whether exploration is connnercially viable or not, has been predicted to hover at a stable rate of around US$ 65 to US$ 70 per barrel, said global energy think tank Wood Mackenzie recently Mackenzie believes the stable price is predicted to occur with the lower global oil supply due to the ongoing United States trade sanctions imposed on Iran, which will be complemented by the increasing oil production from the US.

Jakarta Post, Page-13, Thursday, Dec 6, 2018

IPA Encourages Increased Indonesian Competitiveness

The Indonesian Petroleum Association (IPA) will encourage an increase in Indonesia's competitiveness in the world upstream oil and gas industry. Because, even though Indonesia has fixed its investment climate for upstream oil and gas, various countries are also competing to attract investors.

The Indonesian Petroleum Association (IPA)

IPA Chairman Tumbur Parlindungan said, next year, his party would expand collaboration with the government, not limited to the Ministry of Energy and Mineral Resources (ESDM). This is to make the national oil and gas investment climate more attractive. In 2018, IPA has coordinated with the Ministry of Finance and the Ministry of Trade.

"In 2019, we expand to other (ministries / institutions) to encourage investors to Indonesia," he said at a press conference in Jakarta.

This is because Indonesia's oil and gas potential is actually still very promising and can continue to be developed as one of the main objectives to support the Indonesian economy. But seeing the still unstable world oil prices and the limited available funds for exploration and investment, investors are very selective in choosing which countries they will invest. With members of oil and gas companies from various countries, IPA can provide input what other countries do to attract investment.

"What is the upstream oil and gas industry in other countries, every country makes it more competitive. We give information to the government, that's what we work with the government, "said Tumbur.

One of the things that will be done by IPA is to ensure that the implementation of new regulations issued by the government can operate properly. One of these rules is Government Regulation Number 27 of 2017 which contains tax provisions and a list of incentives for oil and gas companies

using the scheme of production sharing contracts (PSC) that can be returned (cost recovery). In addition, the implementation of gross split PSC.

"There are some regulations that are still being discussed. "We don't want the government to make a rule for loopholes," said Tumbur.

IPA Director Ronald Gunawan added that the condition of the national upstream oil and gas industry had improved, along with the increase in crude oil prices compared to 2017. This can be seen from the interest of the six oil and gas blocks offered by the government. Then, the government has also determine the fate of the PSC that has expired. Regarding the gross split PSC, he said, the oil and gas industry players did not see this as a problem.

Eni Indonesia

"We in the industry have no problem whether the PSC is gross split or cost recovery. We saw that one of our members, Eni, changed the East Sepinggan PSC to a gross split. That also shows we are moving forward, "he said.

In the past two years, the Government has worked hard in an effort to attract oil and gas investors to invest in Indonesia. The government aggressively offers new working areas and improves regulations related to the oil and gas industry in 2018. Until now there have been as many as 34 oil and gas blocks offered by the Government using gross split schemes.

The IPA records several improvements that have been made, including the improvement of gross split PSC, the existence of joint audits for activities oil and gas, the issuance of exclusion rules for L / C on oil and gas exports, and others. IPA will continue to support the Government's efforts to improve the investment climate in Indonesia and produce giant discoveries.

However, the IPA notes that there are several homeworks that need to be worked on together, such as simplifying licensing, implementing the Government Regulation number 27 of 2017, proper Land Building Tax treatment for oil and gas activities, optimizing the masterlist facility for the import of oil and gas activities and others. In addition, the completion of the new Oil and Gas Bill has become very critical for the oil and gas industry in Indonesia.

"With oil prices getting better, hopefully many will want investment. We expect exploration to increase, because seeing production continues to decline, it can only be closed by exploration. We hope that in 2019 there will be a lot of exploration, "said Tumbur.

IN INDONESIAN

IPA Dorong Peningkatan Daya Saing Indonesia

Indonesian Petroleum Association (IPA) akan mendorong peningkatan daya saing Indonesia di industri hulu migas dunia. Pasalnya, meski Indonesia telah membenahi iklim investasi hulu migasnya, berbagai negara juga sedang berlomba menarik investor.

Ketua IPA Tumbur Parlindungan mengatakan, di tahun depan, pihaknya akan memperluas kolaborasi dengan pemerintah, tidak terbatas dengan Kementerian Energi dan Sumber Daya Mineral (ESDM). Hal ini untuk membuat iklim investasi migas nasional menjadi lebih menarik. Pada 2018 ini, IPA telah melakukan koordinasi dengan Kementerian Keuangan dan Kementerian Perdagangan.

“Di 2019, kami perlebar lagi ke (kementerian/lembaga) lain supaya meng-encourage investor ke Indonesia,” kata dia dalam jumpa pers di Jakarta.

Hal ini mengingat potensi migas Indonesia sebenarnya masih sangat menjanjkan dan dapat terus dikembangkan sebagai salah satu tujuan utama untuk mendukung perekonomian Indonesia. Namun melihat masih belum stabilnya harga minyak dunia dan terbatasnya dana yang tersedia untuk melakukan eksplorasi dan investasi, investor sangat selektif untuk memilih di negara mana mereka akan melakukan investasi. Dengan anggota perusahaan migas dari berbagai negara, IPA bisa memberikan masukan apa saja yang dilakukan negara lain untuk menarik investasi. 

“Seperti apa industri hulu migas di negara lain, setiap negara menjadikan lebih kompetitif. Kami kasih informasi ke pemerintah, itu yang kami kerja sama dengan pemerintah,” ujar Tumbur.

Salah satunya yang akan dilakukan IPA, yakni memastikan implementasi dari Regulasi baru yang dikeluarkan pemerintah bisa beroperasi dengan baik. Salah satu aturan ini yakni Peraturan Pemerintah Nomor 27 Tahun 2017 berisi ketentuan perpajakan dan daftar insentif bagi perusahaan migas yang menggunakan skema kontrak kerja sama (production sharing contract/ PSC) biaya investasi yang dapat dikembalikan (cost recovery). Selain itu juga implementasi dari PSC gross split.

“Ada implementasi beberapa peraturan yang masih didiskusikan. Kami tidak mau pemerintah membuat aturan ada loophole,” ujar Tumbur.

Direktur IPA Ronald Gunawan menambahkan, kondisi industri hulu migas nasional sudah membaik, seiring dengan meningkatnya harga minyak mentah dibandingkan 2017 lalu. Hal ini terlihat dari diminati-nya enam blok migas yang ditawarkan oleh pemerintah. Kemudian, pemerintah juga telah menetapkan nasib PSC yang selesai masa berlakunya. Terkait PSC bagi hasil kotor (gross split), dikatakannya bahwa pelaku industri migas tidak melihat hal ini sebagai masalah. 

“Kami di industri tidak masalah apakah PSC gross split atau cost recovery. Kami melihat bahwa salah satu member kami, Eni, mengubah PSC East Sepinggan ke gross split. Itu juga menunjukkan kami move forward,” kata dia.

Dalam dua tahun terakhir ini, Pemerintah telah bekerja keras dalam upaya untuk menarik investor migas menanamkan modalnya di Indonesia. Pemerintah secara agresif menawarkan wilayah-wilayah kerja baru dan memperbaiki peraturan-peraturan terkait industri migas tahun 2018. Hingga saat ini tercatat ada sebanyak 34 blok migas yang ditawarkan Pemerintah dengan menggunakan skema gross split.

IPA mencatat beberapa hal perbaikan yang telah dilakukan, di antaranya melakukan perbaikan PSC gross split, adanya joint audit untuk kegiatan

migas, terbitnya aturan pengecualian L/C pada ekspor migas, dan lainnya. IPA akan terus mendukung upaya-upaya Pemerintah untuk meningkatkan iklim investasi di Indonesia dan menghasilkan penemuan cadangan raksasa (giant discovery).

Namun, IPA mencatat ada beberapa pekerjaan rumah yang perlu dikerjakan bersama, seperti penyederhanaan perizinan, aturan pelaksanaan Peraturan Pemerintah nomor 27 tahun 2017, perlakuan Pajak Bumi Bangunan yang wajar pada kegiatan migas, optimalisasi fasilitas masterlist untuk impor barang penunjang kegiatan migas dan lainnya. Selain itu, penyelesaian Rancangan Undang-Undang Migas yang baru menjadi sangat kritikal bagi industri migas di Indonesia. 

“Dengan harga minyak makin baik, semoga banyak yang mau investasi. Kami targertkan eksplorasi meningkat, karena dengan melihat produksi terus turun, hanya bisa (ditutup) dengan eksplorasi. Kami berharap di 2019 banyak yang eksplorasi,” kata Tumbur. 

Investor Daily, Page-9, Thursday, Dec 6, 2018

Pertamina Transfer LNG Cheniere Imports

PT Pertamina (Persero) will transfer the supply of liquefied natural gas (LNG) imported from Cheniere Energy Inc. LNG supplies have not been brought to the country because domestic needs can still be met from the Badak LNG Plant.

Cheniere Energy Inc.

Pertamina's Corporate Marketing Director, Basuki Trikora Putra, said that the company sold back LNG supplies purchased from Cheniere in 2013. This LNG supply is sold through its subsidiary, PPT Energy Trading. The total supply of LNG purchased by the company from the United States gas company reaches 1.4 million tons per year.

"The volume for 2019 has already been sold, it's been solved, it's not a problem. I don't remember how many cargoes, there were about tens of cargo in one year, "he said in Jakarta.

PPT Energy Trading

Unfortunately, Basuki claimed he did not know where the LNG supply was sold. Because, through PPT Energy Trading, the LNG supply is released to the spot market. The LNG sale and purchase contract is also designed for the short term (shor term), which is supply for 2019 only.

the Badak LNG

He explained that the LNG supply had to be resold because domestic gas needs could still be met from domestic refineries, namely the Badak LNG Plant in East Kalimantan. Although, this domestic gas demand is expected to continue to rise along with the completion and improvement of the company's refinery (BBM) and the project for electricity gas needs.

"In 2019, from there (Cheniere) did not enter Indonesia. Domestic can still be fulfilled from the Badak LNG Plant. The domestic priority is still from the Badak LNG Plant, "said Basuki.

According to Investor Daily, the LNG import contract from the United States was signed in 2013. Pertamina has purchased LNG of 0.76 million tons per year from Cheniere Energy supplied from 2018 with a duration of 20 years. In 2014, the company signed a sale and purchase contract with subsidiary Cheniere Energy Inc., Corpus Christi Liquefaction Liability Company, to supply 0.76 million tons, of LNG starting in 2019 for 20 years.

Then, in 2017, Pertamina contracts with Woodside with a volume of around 0.6 million tons per year which can be increased to 1.1 million tons per year. The supply of 0.6 million tons per year will be sent from 2022-2034 and can be increased to 1.1 million tons per year from 2024-2038. Finally, the company has a head of agreement (HoA) with ExxonMobil to supply as much as 1 million tons per year for 20 years starting from 2025.

On the other hand, referring to the national gas balance, the government projects that the domestic gas supply deficit will still occur in the range of 2025. This also depends on which scenario will be used in estimating national gas demand and supply projections. Referring to the data from the Ministry of Energy and Mineral Resources, in 2025, Indonesia will have a gas deficit of 206.5 mmscfd when referring to the second scenario.

However, if you apply the third scenario, this gas deficit has increased dramatically to 1,072.29 mmscfd. The shortage of gas supply continues in 2026, which is 673.9 mmscfd if based on the second scenario and 1,572.43 mmscfd if referring to the third scenario. Finally at 2027, the gas deficit will be 442 mmscfd if it refers to the second scenario and 1,374.95 mmscfd if based on the third scenario.

IN INDONESIAN

Pertamina Alihkan Impor LNG Cheniere

PT Pertamina (Persero) akan mengalihkan pasokan gas alam cair (liquefied natural gas/ LNG) yang di impor dari Cheniere Energy Inc. Pasokan LNG batal dibawa ke dalam negeri karena kebutuhan domestik masih dapat dipenuhi dari Kilang LNG Badak.

Direktur Pemasaran Korporat Pertamina Basuki Trikora Putra menuturkan, pihaknya menjual kembali pasokan LNG yang dibeli dari Cheniere pada 2013 silam. Pasokan LNG ini dijual melalui anak usahanya, PPT Energy Trading. Total pasokan LNG yang dibeli perseroan dari perusahaan gas Amerika Serikat itu mencapai 1,4 juta ton per tahun. 

“Volumenya yang untuk 2019 itu sudah selesai (dijual), sudah solved, tidak masalah. Saya tidak ingat berapa kargo, 1 tahun ada sekitar berapa puluh kargo,” kata dia di Jakarta.

Sayangnya, Basuki mengaku tidak hafal kemana saja pasokan LNG tersebut dijual. Pasalnya, melalui PPT Energy Trading, pasokan LNG itu dilepas ke pasar spot. Kontrak jual beli LNG ini juga didesain untuk jangka waktu pendek (shor term) saja, yakni pasokan untuk 2019 saja.

Dia menjelaskan, pasokan LNG tersebut terpaksa dijual kembali lantaran kebutuhan gas dalam negeri masih dapat dipenuhi dari kilang domestik, yakni Kilang LNG Badak di Kalimantan Timur. Walaupun, kebutuhan gas domestik ini diperkirakannya akan terus naik seiring dengan rampungnya perbaikan dan penambahan kilang bahan bakar minyak (BBM) perseroan dan proyek kebutuhan gas kelistrikan.

“Pada 2019, dari sana (Cheniere) tidak masuk ke Indonesia. Kalau domestik sekarang masih bisa dipenuhi dari Kilang LNG Badak. Prioritas domestik masih dari Kilang LNG Badak,” kata Basuki. 

Berdasarkan catatan Investor Daily, kontrak impor LNG dari Amerika Serikat itu ditandatangani pada 2013 silam. Pertamina telah membeli LNG sebesar 0,76 juta ton per tahun dari Cheniere Energy yang dipasok mulai 2018 dengan durasi 20 tahun. Pada 2014, perseroan menandatangani kontrak jual beli dengan anak usaha Cheniere Energy Inc yakni Corpus Christi Liquefaction Liability Company untuk memasok 0,76 juta ton, per tahun LNG mulai 2019 selama 20 tahun.

Kemudian, pada 2017, Pertamina berkontrak dengan Woodside dengan volume sekitar 0,6 juta ton per tahun yang bisa ditingkatkan menjadi 1,1 juta ton per tahun. Pasokan 0,6juta ton per tahun mulai dikirim 2022-2034 dan bisa ditingkatkan menjadi 1,1 juta ton per tahun pada 2024-2038. Terakhir, perseroan memiliki kesepakatan (head of agreement/HoA) dengan ExxonMobil untuk pasokan sebanyak 1 juta ton per tahun selama 20 tahun mulai 2025.

Di sisi lain, mengacu neraca gas nasional, pemerintah memproyeksikan defisit pasokan gas di dalam negeri masih akan terjadi pada kisaran 2025. Ini pun tergantung dengan skenario mana yang akan dipakai dalam memperkirakan proyeksi kebutuhan dan pasokan gas nasional. Mengacu data Kementerian ESDM, pada 2025 nanti, Indonesia akan defisit gas sebesar 206,5 mmscfd jika mengacu pada skenario kedua. 

Namun, jika menerapkan skenario ketiga, defisit gas ini meningkat drastis menjadi 1.072,29 mmscfd. Kekurangan pasokan gas ini terus berlangsung pada 2026, yakni sebesar 673,9 mmscfd jika berdasarkan skenario kedua dan 1.572,43 mmscfd jika mengacu skenario ketiga. Terakhir di 2027, defisit gas akan menjadi 442 mmscfd jika mengacu skenario kedua dan 1.374,95 mmscfd jika berdasarkan skenario ketiga.

Investor Daily, Page-9, Thursday, Dec 6, 2018

Merakes Field Contract 1 is Expected to Become a Gross Split

Eni Indonesia agreed to change its Merakes Field production contract (PSC) contract, the Sepinggan East Block into a gross split scheme, from the previous cost recovery. Revision of the contract and approval of this block development plan before 12 December.

Eni Indonesia

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said, Eni agreed to turn PSC into a gross split because it pursued the efficiency offered by this scheme. Furthermore, this scheme is considered to provide certainty, because by using a gross split PSC the auction process and project execution will be faster.

Arcandra Tahar

"So that they (Eni) see an opportunity and this savings is significant. We are targeting the POD to be approved and the PSC amended most late before December 12, "he said in Jakarta.

He promised, the transfer process from PSC cost recovery to gross split could be very fast. The East Sepinggan Block contract began on July 20, 2012 and ends in July 2042. The 30-year contract period consists of a 20-year exploration phase and 10-year production. In this contract, Eni Indonesia holds the right of participation (participating interest / Pl) of 85% and PT Pertamina Hulu Energi (PHE) 15%. It has also set a split for this block split gross PSC.

"Oil 67%, gas 72%, it's a base split plus a split variable for contractors," said Arcandra.

However, he hopes that Eni can increase the level of domestic content (TKDN) of this project so that the splits can increase.

"We ask them to increase local content, if gross split (local content) is 30-50%, they get 2% split," he added.

For the plan to develop Merakes Field, said Arcandra, it is targeted to be able to produce gas up to 391 million cubic feet per day (million standard cubic feet per day / mmscfd) with total production along the contract of 814 billion cubic feet. The production period of this field according to its economy is estimated to be around 9 years.

"The on-stream plan is 2021," he said.

IN INDONESIAN

Kontrak Lapangan Merakes 1 Diunah Menjadi Gross Split 

Eni Indonesia sepakat mengubah kontrak kerja samanya (production sharing contract/ PSC) Lapangan Merakes, Blok East Sepinggan menjadi skema bagi hasil kotor (gross split), dari sebelumnya cost recovery. Revisi kontrak dan persetujuan rencana pengembangan blok ini sebelum 12 Desember.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar menuturkan, Eni sepakat mengubah PSC menjadi gross split karena mengejar efisiensi yang ditawarkan skema ini. Selanjutnya, skema ini dinilai memberikan kepastian, karena dengan memakai PSC gross split maka proses lelang dan pengerjaan proyek menjadi lebih cepat.

“Sehingga mereka (Eni) melihat sebuah opportunity dan penghematan ini signifikan. Kami targetkan POD disetujui dan PSC diamendemen paling telat sebelum 12 Desember,” kata dia di Jakarta. 

Dia menjanjikan, proses pengalihan dari PSC cost recovery ke gross split bisa sangat cepat. Kontrak Blok East Sepinggan ini dimulai pada 20 Juli 2012 dan berakhir pada Juli 2042. Jangka waktu kontrak selama 30 tahun ini terdiri dari fase eksplorasi 20 tahun dan produksi 10 tahun. Dalam kontrak ini, Eni Indonesia memegang hak partisipasi (participating interest/ Pl) sebesar 85% dan PT Pertamina Hulu Energi (PHE) 15%. Pihaknya juga telah menetapkan bagi hasil (split) untuk PSC gross split blok ini. 

“Oil 67%, gas 72%, itu base split plus variable split untuk kontraktor,” tutur Arcandra. 

Namun pihaknya berharap Eni dapat menaikkan tingkat kandungan dalam negeri (TKDN) proyek ini sehingga splinya bisa bertambah. 

“Kami minta mereka meningkatkan local content, kalau gross split (local content) 30-50%, mereka mendapatkan 2% split,” tambahnya.

Untuk rencana pengembangan Lapangan Merakes, tutur Arcandra, ditargetkan dapat menghasilkan gas hingga 391 juta kaki kubik per hari (million standard cubic feet per day/mmscfd) dengan total produksi sepanjang kontrak 814 miliar kaki kubik. Masa produksi lapangan ini sesuai keekonomiannya diperkirakan sekitar 9 tahun.

“Rencana onstream-nya 2021,” ujarnya. 

Investor Daily, Page-9, Wednesday, Dec 5, 2018

Pertamina-TPPI Paraxylene Prime Export

PT Pertamina (Persero) and PT Trans Pacific Petrochemical Indotama (TPPI) export Paraxylene petrochemical products totaling 10,000 metric tons (MT) to China, to meet market demand in the Asia Pacific region. The initial export of paraxylene products is carried out in line with the production rate of the TPPI refinery which now reaches 67 tons per hour.

PT TPPI Tuban General Manager Sugeng Hermanto said, with product operations reaching 67 tons per hour, it could produce 70 tons of paraxylene per hour. So, in a month, this paraxylene production reaches 50,000 metric tons.

PT Trans Pacific Petrochemical Indotama (TPPI)

"Therefore Pertamina distributes it to domestic and overseas," Sugeng said in his official statement on Monday (4/12)

He said, the production of paraxylene has exceeded demand in the domestic market, so excess production can be exported abroad. Manager of Aromatic Olefin Pertamina Darius Darwis added, paraxylene exports will be utilized to meet regional market needs, especially in China. Going forward, the company will continue to develop petrochemical exports.

"Pertamina and TPPI will carry out tenders to find the best buyers, with volumes according to TPPI's production plan," Darius explained.

Paraxylene is the main raw material for producing Purified Terephthalic Acid (PTA). Paraxylene is the product of petrochemical refineries produced from condensate or naptha. The results of paraxylene are mostly in the form of PTA which is an important component in the textile industry.

In addition, paraxylene can also be processed into PET as the main component of raw materials for food and beverage packaging because of its non-toxic nature. Paraxylene also has derivative products that are closely related to daily life such as cellphones, dashboards on vehicles, and so on.

"We hope that, in accordance with the government's recommendations, we optimize domestic production. Instead of increasing imports, we better increase exports so that it will increase foreign exchange, of course Pertamina's profits will also be higher than before, "Darius said.

Pertamina is committed to strengthening its petrochemical business. For this reason, the oil and gas SOE has signed a frame work agreement with Taiwan Petroleum Corporation (CPC) to build a petrochemical complex worth US $ 6.49 billion. The facility was built, namely a naphta cracker factory and a global scale petrochemical downstream sector development unit in Indonesia.

CPC Taiwan

The project will be carried out under a joint venture scheme between Pertamina, CPC Taiwan, and several other potential downstream partners. The naphta cracker plant is expected to produce at least 1 million tons of ethylene per year. In addition, both of them will also build downstream units that will produce other refinery derivative products to meet industrial needs in Indonesia.

Previously, Megaproject Processing and Petrochemical Director Ignasius Tallulembang explained that his party had already had initial discussions with CPC. In the first stage, it will prepare the land which is the location of this petrochemical project. So far, there are three location options, which are possible options near the Balongan Refinery.

"After the land, our parallel will do the FS (feasibility study) to configure the petrochemical refinery, any products, with partners," he said.

Furthermore, it will also form a joint venture with CPC. However, his side still has to discuss this with the CPC, including the matter of the amount of Pertamina's share ownership. It hopes to become a majority shareholder.

"Because we are in the country, the market is in us, so we are expected to have a bigger share," Tallulembang said.

Rosneft Oil Company Russia

In addition, the company's two new refinery projects will also be equipped with processing petrochemical products, namely Tuban Refinery and Bontang Refinery. The Tuban refinery that the company works with Rosneft Oil Company is targeted to be completed in 2024. This refinery will produce gasoline (gasoline) products of 80 thousand barrels per day (bpd), diesel fuel 90 thousand bpd, and avtur of 26 thousand bpd.

Rosneft Refinery in Tuban, East Java-Indonesia

Not only that, Tuban Refinery will also produce new petrochemical products. The details of this product are 1.3 million tons of polypropylene per year, polyethylene 0.65 million tons per year, styrene 0.5 million tons per year, and paraxylene 1.3 million tons per year.

Furthermore, the Bontang Refinery is planned to have a capacity of 300 thousand bpd and is targeted to start operations in 2025. Unfortunately, Pertamina has not specified what kind of products the new refinery will produce. The reason is that Pertamina is still in the stage of discussion with partners regarding the establishment of joint ventures.

the Overseas Oil and Gas LLC (OOG)

The company that the company cooperates with is the Overseas Oil and Gas LLC (OOG) and Cosmo Oil International Pte Ltd (COI). Previously, Maritime Coordinating Minister Luhut Binsar Pandjaitan reminded Pertamina to seriously work on fuel and petrochemical refinery projects. The reason is that President Joko Widoro complained that there had been no construction of refineries running during his four years in office.

"I ask not to be postponed again, because I have been pushing for three years in petrochemicals from Taipei, not immediately," he said.

IN INDONESIAN

Pertamina-TPPI Ekspor Perdana Paraxylene

PT Pertamina (Persero) bersama PT Trans Pacific Petrochemical Indotama (TPPI) mengekspor produk petrokimia Paraxylene sebanyak 10 ribu metrik ton (MT) ke Tiongkok, untuk memenuhi permintaan pasar di kawasan Asia Pasifik. Ekspor perdana produk paraxylene ini dilakukan seiring dengan tingkat produksi kilang TPPI yang kini mencapai 67 ton per jam.

General Manager PT TPPI Tuban Sugeng Hermanto mengatakan, dengan operasional produk mencapai 67 ton per jam, pihaknya dapat menghasilkan paraxylene sebanyak 70 ton tiap jam. Sehingga, dalam sebulan, produksi paraxylene ini mencapai 50 ribu metrik ton.

“Oleh karena itu Pertamina menyalurkan ke domestik maupun luar negeri,” ujar Sugeng dalam keterangan resminya, Senin (4/12) 

Dia mengatakan, produksi paraxylene ini sudah melampaui kebutuhan di pasar domestik, sehingga kelebihan produksi dapat diekspor ke luar negeri. ManagerArornatic Olefin Pertamina Darius Darwis menambahkan, ekspor paraxylene ini akan dimanfaatkan untuk memenuhi kebutuhan pasar regional khususnya di Tiongkok. Ke depan, perseroan akan terus mengembangkan ekspor petrokimia. 

“Pertamina dan TPPI akan melaksanakan tender untuk mencari pembeli terbaik, dengan volume sesuai rencana produksi TPPI,” jelas Darius.

Paraxylene adalah bahan baku utama untuk memproduksi purified terephthalic acid (PTA). Paraxylene merupakan hasil produksi kilang petrokimia yang diproduksi dari, bahan kondensat atau naptha. Hasil paraxylene sebagian besar berupa PTA yang menjadi komponen penting dalam industri tekstil.

Selain itu, paraxylene juga dapat diproses menjadi PET sebagai komponen utama bahan baku kemasan makanan dan minuman karena sifatnya tidak beracun. Paraxylene juga memiliki produk turunan yang berkaitan erat dengan kehidupan sehari-hari seperti tempat (casing) telepon genggam, dashboard pada kendaraan, dan sebagainya.

“Kami berharap, sesuai dengan anjuran pemerintah, kita mengoptimalkan hasil produksi dalam negeri. Daripada memperbanyak impor, kita lebih baik memperbanyak ekspor jadi akan menambah devisa negara tentunya keuntungan Pertamina juga akan lebih banyak dari sebelumnya,” tutur Darius.

Pertamina berkomitmen memperkuat bisnis petrokimianya. Untuk itu, BUMN migas ini telah menandatangani frame work agreement dengan China Petroleum Corporation (CPC) Taiwan membangun komplek petrokimia senilai US$ 6,49 miliar. Fasilitas yang dibangun yakni pabrik naphta cracker dan unit pengembangan sektor hilir petrokimia berskala global di Indonesia.

Proyek akan dikerjakan dengan skema joint venture antara Pertamina, CPC Taiwan, dan beberapa mitra hilir potensial lainnya. Pabrik naphta cracker diharapkan akan memproduksi paling sedikit 1 juta ton ethylene per tahun. Selain itu, keduanya juga akan membangun unit hilir yang akan memproduksi produk turunan kilang lainnya untuk memenuhi kebutuhan industri di Indonesia.

Sebelumnya, Direktur Megaproyek Pengolahan dan Petrokimia Ignasius Tallulembang menjelaskan, pihaknya sudah ada diskusi awal dengan CPC. Pada tahap pertama, pihaknya akan menyiapkan lahan yang menjadi lokasi proyek petrokimia ini. Sejauh ini, ada tiga opsi lokasi, di mana opsi yang memungkinkan yakni di dekat Kilang Balongan.

“Setelah lahan, paralel kami akan lakukan FS (feasibility study/kajian kelayakan) untuk membuat konfigurasi kilang petrokimianya, produk-produknya apa saja, bersama partner,” tutur dia.

Selanjutnya, pihaknya juga akan membentuk perusahaan patungan dengan CPC. Namun, pihaknya masih harus mendiskusikan hal ini bersama CPC, termasuk soal besaran kepemilikan saham Pertamina. Pihaknya berharap bisa menjadi pemegang saham mayoritas.

“Karena kita kan di dalam negeri, pasarnya di kita, jadi diharapkan kami yang lebih besar share-nya,” ujar Tallulembang.

Selain itu, dua proyek pembangunan kilang baru perseroan juga akan dilengkapi dengan pengolahan produk petrokimia, yakni Kilang Tuban dan Kilang Bontang. Kilang Tuban yang dikerjakan perseroan bersama Rosneft Oil Company ditargetkan rampung pada 2024. Kilang ini akan menghasilkan produk bensin (gasoline) sebesar 80 ribu barel per hari (bph) , solar 90 ribu bph, dan avtur 26 ribu bph. 

Tidak hanya itu, Kilang Tuban juga akan memproduksi produk-produk baru petrokimia. Rincian produk ini adalah polipropilen 1,3 juta ton per tahun, polietilen 0,65 juta ton per tahun, stirena 0,5 juta ton per tahun, dan paraksilen 1,3 juta ton per tahun. 

Selanjutnya, Kilang Bontang direncanakan memiliki kapasitas 300 ribu bph dan ditargetkan mulai operasi pada 2025. Sayangnya, Pertamina belum merinci apa saja jenis produk yang akan dihasilkan kilang baru ini. Pasalnya, Pertamina masih dalam tahap diskusi dengan mitra terkait pembentukan perusahaan patungan.

Perusahaan yang digandeng perseroan di proyek ini adalah Overseas Oil and Gas LLC (OOG) dan Cosmo Oil International Pte Ltd (COI). Sebelumnya, Menteri Koordinator Kemaritiman Luhut Binsar Pandjaitan mengingatkan Pertamina untuk serius mengerjakan proyek kilang BBM dan petrokimia. Pasalnya, Presiden joko Widoro mengeluhkan bahwa tidak ada pembangunan kilang yang berjalan selama menjabat dalam empat tahun ini.

“Saya minta jangan ditunda lagi, karena saya sudah tiga tahun mendorong petrokimia dari Taipei tidak segera di,ulai,” kata dia.

Investor Daily, Page-1, Wednesday, Dec 5, 2018

SKK Requested to Increase Oil and Gas Reserves

The Ministry of Energy and Mineral Resources (ESDM) has determined Dwi Soetjipto to become the head of the new Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). Dwi replaced the role of Amien Sunaryadi who had previously sat in the chair since 2014.

ESDM Minister Ignasius Jonan who inaugurated directly left various things, including encouraging the exploration of new or old oil and gas working areas. SKK Migas was also asked to measure and extend the work area so that it is expected that domestic oil and gas reserves will continue to grow.

"(Extension) That requires the surrender of definite work commitments that have reached US $ 2 billion for the next 10 years, for exploration," Jonan said.

Jonan also asked Dwi to coordinate with the ESDM Ministry, in this case the Directorate General of Oil and Gas, to conduct oil and gas working area (WK) auctions. Because, there is a termination of the Work Area (WK) that needs to be completed with a maturity of up to 2023. 

     To support the government's program in the use of domestic goods, SKK Migas is also expected to participate in encouraging the use of domestic component level (TKDN). Although not easy, higher TKDN in the national industry is believed to have a positive impact on the economy.

Meanwhile, former head of SKK Migas Amien Sunaryadi said, this institution must work hard in increasing oil and gas reserves or production. Because, currently Indonesia needs giant discovery efforts. This means that both state-owned companies, namely PT Pertamina, and other oil and gas companies are working together in exploration.

Amien pointed out, oil demand in Indonesia is now very high, but domestic oil production is small. The increase in oil production has so far only been able to reach 300 thousand barrels per day (bpd).

"Indonesia needs around 1.5 million bpd. Since ancient times no Indonesian company has ever discovered a size of giant discovery," Amien said.

Receiving this input, Dwi ensured that he would immediately hold an internal coordination meeting. At least, there are 11 important points that Dwi wants to convey to all colleagues at SKK Migas in increasing oil and gas reserves. It is expected that the points can be translated properly in the next three months. Eleven points included what should be done by SKK Migas in 2019, as well as on plan of development (PoD).

The Malesa block

"The Malesa block and IDD (Indonesia Deepwater Development) project are included. The important thing is of course it must be immediately (discussed)," Dwi said.

The IDD project has so far been in the stage of discussing the revised POD that Chevron has submitted without including the Makassar Strait Block into part of the project. Regarding the increase in oil and gas reserves, Dwi said, there should be exploration activities, including new investments in a number of working areas. The investment that has been made this year is likely to be felt next year.

the Makassar Strait Block

To that end, SKK Migas will soon hold a meeting with stakeholders, including contractors, so that the work program prepared can be started according to plan, including in increasing the investment in the oil and gas sector.

"Later in this one-two-week basin mapping, we want to find out which ones have the greatest potential. Later the data that has been understood will be studied more deeply," he said.

IN INDONESIAN

SKK Diminta Tingkatkan Cadangan Migas

Kementerian Energi dan Sumber Daya Mineral (ESDM) telah menetapkan Dwi Soetjipto menjadi kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) yang baru. Dwi menggantikan peran Amien Sunaryadi yang sebelumnya duduk di kursi tersebut sejak 2014.

Menteri ESDM Ignasius Jonan yang melantik secara langsung menitipkan berbagai hal, termasuk mendorong adanya eksplorasi wilayah kerja migas yang baru ataupun lama. SKK Migas pun diminta melakukan pengukuran dan perpanjangan wilayah kerja sehingga diharapkan cadangan migas dalam negeri tetap tumbuh.

"(Perpanjangan) Itu mewajibkan penyerahkan komitmen kerja pasti yang sampai sekarang mencapai 2 miliar dolar AS untuk 10 tahun ke depan, untuk eksplorasi," ujar Jonan.

Jonan pun meminta Dwi agar berkoordinasi dengan Kementerian ESDM, dalam hal ini Direktorat Jenderal Migas, untuk melakukan lelang wilayah kerja (WK) migas. Sebab, ada Wilayah Kerja (WK) terminasi yang perlu diselesaikan dengan masa jatuh tempo sampai 2023. Untuk mendukung program pemerintah dalam pemakaian barang dalam negeri, SKK Migas pun diharapkan ikut serta mendorong penggunaan tingkat komponen dalam negeri (TKDN). Meski tidak mudah, TKDN yang lebih tinggi dalam industri nasional diyakini bisa berdampak positif bagi perekonomian.

Sementara itu, mantan kepala SKK Migas Amien Sunaryadi menuturkan, lembaga ini harus bekerja keras dalam meningkatkan produksi ataupun cadangan migas. Sebab, saat ini Indonesia membutuhkan upaya giant discovery. Artinya, baik perusahaan milik pemerintah, yaitu PT Pertamina, maupun perusahaan migas lainnya berupaya bersama-sama dalam melakukan eksplorasi.

Amien mencontohkan, kebutuhan minyak di Indonesia sekarang sangat tinggi, tapi produksi minyak dalam negeri sedikit. Peningkatan produksi minyak sejauh ini hanya mampu mencapai 300 ribu barel per hari (bph).

"Indonesia butuh sekitar 1,5 juta bph. Sejak Zaman dulu tidak satu pun perusahaan Indonesia pernah discovery seukuran giant discovery," kata Amien.

Mendapat masukan ini, Dwi memastikan, akan segera melakukan rapat koordinasi internal. Sedikitnya, ada 11 poin penting yang ingin disampaikan Dwi kepada seluruh rekan kerja di SKK Migas dalam meningkatkan cadangan migas. Diharapkan poin-poin itu bisa diterjemahkan secara baik dalam tiga bulan ke depan. Sebelas poin itu termasuk apa yang harus dilakukan SKK Migas pada 2019, serta mengenai proposal pengembangan (plan of development/ PoD). 

"Blok Malesa dan proyek IDD (Indonesia Deepwater Development) termasuk di dalamnya. Yang penting ini tentu harus segera (dibahas)," ujar Dwi.

Proyek IDD sejauh ini masih dalam tahap pembahasan revisi POD yang sudah diajukan Chevron tanpa memasukkan Blok Makassar Strait ke dalam bagian dari proyek. Terkait peningkatan cadangan migas, Dwi mengatakan, memang sudah selayaknya ada kegiatan eksplorasi, termasuk investasi baru di sejumlah wilayah kerja. Investasi yang telah dilakukan tahun ini pun kemungkinan baru bisa dirasakan tahun depan.

Untuk itu, SKK Migas dalam waktu dekat akan melakukan pertemuan dengan para pemangku kebijakan, termasuk para kontraktor, agar program kerja yang disusun bisa dimulai sesuai rencana, termasuk dalam meningkatkan investasi sektor migas.

"Nanti dalam satu dua minggu ini mapping cekungan, kita ingin mencari mana yang potensinya besar-besar. Nanti data yang sudah dipahami akan dipelajari lebih dalam," kata dia.

Republika, Page-15, Tuesday, Dec 4, 2018