Sengkang & Sepinggan Production Will Increase

The signing of the new Sengkang and East Sepinggan Block contracts with gross or gross split schemes is projected to increase natural gas production from the two oil and gas working areas.

Energy Equity Epic (Sengkang) Pty. Ltd.

Energy Equity Epic (Sengkang) Pty. Ltd., operator of the Sengkang Block, is committed to increasing gas production to increase to 100 million-200 million cubic feet per day (million standard cubic feet per day / MMscfd) compared to the current 60 MMscfd. The Merakes Field gas production, the East Sepinggan Block will be increased to 391 MMscfd from the current level of 155 MMscfd.

Energy Equity Epic will increase natural gas production in the oil and gas working area located in South Sulawesi up to 200 MMscfcl from 2020. President of Energy Equity Epic Andi Riyanto said that after the new Sengkang Block contract took effect, it targets natural gas production to increase to 100-200 MMscfd compared to the current 60 MMscfd.

The development is part of a definite work commitment of US $ 88 million over the first 5 years since the gross split contract was signed. The work commitment is definitely the value of the exploration investment that will be issued by Epic Energy Equity in the Sengkang Block. 

   The government extended the Sengkang Block contract for 20 years to Epic Energy Equity, which is an existing operator in the region. However, the contract scheme was changed from a cost recovery operation to a gross split. The new contract will take effect from October 24, 2022.

"Definite work commitments start in 2022 [until 2027], but from management we ask to accelerate. So, by 2020, we have already flowed part of that definite work commitment, "he said after signing the gross split contract of the Sengkang Block at the ESDM Ministry office.

Andi explained that the target of increasing production to 200 MMscfd will be carried out in stages over 5 years. In 2020, it will start conducting three-dimensional seismic surveys and drilling around two exploration wells. Energy Equity has begun to explore potential buyers for the potential for additional gas production. One potential potential buyer who has been named is a local-owned company South Sulawesi Provincial Government.

In the gas sale and purchase business scheme, Energy Equity will sell gas that has been processed into liquid natural gas (LNG) which will be used to meet the needs of power plants.

"This LNG marketed in South Sulawesi was in accordance with the wishes of the Governor of South Sulawesi, using gas for the benefit of South Sulawesi. Many have no electricity. Indeed this gas is the biggest consumer of electricity then in industries such as petrochemicals. However, there is no [petrochemical industry] in South Sulawesi, "he said.

At present, the average production of the Sengkang Block is as much as 60 MMscfd and all of it is purchased by PT Perusahaan Listlik Negara (Persero). Regarding the selling price of gas, Andi has not yet calculated. Gas price adjustments will be calculated after discussion of the required production and the term of the contract from the prospective gas buyer.

‘We like a MoU [memorandum of understanding] beforehand with prospective buyers of [gas from the Sengkang Block]. We are sure with SKK Migas, how many volumes, how many years. We can only calculate the economy. However, gas prices will be determined on a business basis. "

Arcandra Tahar

Deputy Minister of ESDM Arcandra Tahar explained that 100% of the Sengkang Block participation rights were still given to Epic Energy Equity. The company is willing to pay a signature bonus of US $ 12 million. The 100% ownership rights include the rights of 10% regional-owned enterprises (BUMD).

Based on company information, the Sengkang Block has proven natural gas reserves of 800 billion cubic feet (bcf) and has a resource reserve of 2 trillion cubic feet (tcf).

EAST SEPINGGAN

Besides Sengkang, the ESDM Ministry also signed a new East Sepinggan Block contract located in the Makassar Strait. The signing was carried out by the Deputy Minister of ESDM Arcandra Tahar along with Director General of Oil and Gas Djoko Siswanto and SKK Migas Head Dwi Soetjipto along with Energy Equity Epic Sengkang, Eni (oil and gas company from Italy), and PT Pertamina Hulu Energi East Sepinggan.

Eni (oil and gas company from Italy)

The new East Sepinggan Block contract uses a gross profit sharing scheme to replace the cost recovery model. East Sepinggan became the first oil and gas working area to switch and cost recovery to gross split. So far, there have been several oil and gas blocks that have shifted from cost recovery to gross split. However, the block contract has expired. In contrast to East Sepinggan whose contract is still valid.

ENI - Italy

Eni proposed changing the contract scheme with the reason for the effectiveness of the development of the offshore oil and gas working area. Eni through its subsidiary Eni East Sepinggan Ltd. became a block operator with 85% participation rights and PT Pertamina Hulu Energi East Sepinggan at 15%.

Arcandra explained, the oil and gas contract with the gross split scheme would be simpler and able to create efficiency in oil and gas production. Regarding the change in the contract, Eni must revise the Merakes field plan of development in the Sepinggan East Block area. PoD Merakes previously used a cost recovery scheme.

ENI - Italy

Arcandra estimates gas production from the Merakes field of 155 MMscfd and will reach a peak production of around 391 MMscfd. In addition, this field has gas reserves of 814 bcf. The economic age of the East Sepinggan Block is estimated to be 9 years since the first production.

According to him, the Merakes Field project will start operating in 2021 or retreat from the initial projection at the end of 2019. Eni obtains 67% profit share for oil, while natural gas is 72% which is the cumulative base result and variable profit sharing in the scheme gross split contract. SKK Migas Head Dwi Soetjipto said that the East Sepinggan Block gas production could be faster than the year set.

Dwi Soetjipto

"Yes, it was 2021 [production], it is expected to be faster than 2021. Dwi is optimistic that the project can operate faster because the contractor has changed the contract scheme into gross profit sharing.

"We see the acceleration in its implementation. In the past, cost recovery was due to having to go back and forth to SKK Migas if it would issue money. If this "gross split) themselves [determine shopping]," he added.

According to him, accelerating the production target will make additional gas production ready to sell (lifting) in Indonesia.

IN INDONESIAN

Produksi Sengkang & Sepinggan Akan Naik

Penandatanganan kontrak baru Blok Sengkang dan East Sepinggan dengan skema bagi kotor atau gross split diproyeksikan meningkatkan produksi gas bumi dari kedua wilayah kerja migas itu.

Energy Equity Epic (Sengkang) Pty. Ltd., operator Blok Sengkang, berkomitmen untuk meningkatkan produksi gas hingga meningkat menjadi 100 juta-200 juta kaki kubik per hari (million standard cubic feet per day/MMscfd) dibandingkan dengan saat ini 60 MMscfd. Produksi gas Lapangan Merakes, Blok East Sepinggan akan ditingkatkan hingga 391 MMscfd dari saat ini sebeasar 155 MMscfd.

Energy Equity Epic akan meningkatkan produksi gas bumi di wilayah kerja migas yang berlokasi di Sulawesi Selatan itu hingga 200 MMscfcl mulai 2020. President Energy Equity Epic Andi Riyanto mengatakan bahwa setelah kontrak baru Blok Sengkang berlaku, pihaknya menargetkan produksi gas bumi bisa meningkat menjadi 100-200 MMscfd dibandingkan dengan saat ini 60 MMscfd. 

Pengembangan tersebut menjadi bagian dari komitmen kerja pasti sebesar US$ 88 juta selama 5 tahun pertama sejak kontrak bagi hasil kotor (gross split) ditandatangani. Komitmen kerja pasti merupakan nilai investasi eksplorasi yang akan dikeluarkan Energy Equity Epic di Blok Sengkang. Pemerintah memperpanjang kontrak Blok Sengkang selama 20 tahun kepada Energy Equity Epic, yang merupakan operator eksis di wilayah tersebut. Namun, skema kontrak diubah dari biaya operasi yang dapat dikembalikan (cost recovery) menjadi gross split. Kontrak baru itu akan berlaku mulai-24 Oktober 2022.

“Komitmen kerja pasti mulai 2022 [sampai 2027], tetapi dari manajemen kami minta untuk melakukan percepatan. Jadi, pada 2020, kami sudah mengalirkan bagian dari komitmen kerja pasti itu,” katanya setelah menandatangani kontrak gross split Blok Sengkang di kantor Kementerian ESDM.

Andi menjelaskan bahwa target peningkatan produksi hingga 200 MMscfd tersebut akan dilakukan secara bertahap selama 5 tahun. Pada 2020, pihaknya akan mulai melakukan survei seismik tiga dimensi dan melakukan pengeboran sekitar dua sumur eksplorasi. Energy Equity sudah mulai menjajaki calon pembeli untuk potensi penambahan produksi gas tersebut. Salah satu calon pembeli potensial yang sudah dijaiaki adalah perusahaan daerah milik

Pemerintah Provinsi Sulawesi Selatan.

Dalam skema bisnis jual beli gas tersebut, Energy Equity akan menjual gas yang sudah diolah menjadi gas alam cair (liquid natural gas/LNG) yang akan dimanfaatkan untuk memenuhi kebutuhan pembangkit listrik.  

“LNG ini dipasarkan di Sulawesi Selatan dahulu sesuai dengan keinginan Gubernur Sulawesi Selatan, manfaatkan gas untuk kepentingan Sulawesi Selatan. Banyak yang belum ada kelistrikan. Memang gas ini konsumen terbesarnya listrik kemudian di industri seperti petrokimia. Namun, di Sulawesi Selatan belum ada [industri petrokimia],” katanya.

Saat ini, rerata produksi gas Blok Sengkang sebanyak 60 MMscfd dan seluruhnya dibeli oleh PT Perusahaan Listlik Negara (Persero). Terkait dengan harga jual gas, Andi belum melakukan kalkulasi. Penyesuaian harga gas akan dihitung setelah ada pembahasan produksi yang dibutuhkan dan jangka kontrak dari calon pembeli gas.

‘Kami semacam MoU [nota kesepahaman] dahulu dengan calon-calon pembeli [gas dari Blok Sengkang]. Kami pastikan dengan SKK Migas, berapa banyak volume, jangka waktu berapa tahun. Baru bisa kami hitung keekonomian. Namun, harga gas akan ditentukan secara bisnis.”

Wakil Menteri ESDM Arcandra Tahar menjelaskan bahwa 100% hak partisipasi Blok Sengkang masih diberikan kepada Energy Equity Epic. Petusahaan itu bersedia membayar bonus tanda tangan US$ 12 juta. Kepemilikan 100% hak partisipasi tersebut sudah termasuk hak 10% badan usaha milik daerah (BUMD).

Berdasarkan informasi perusahaan, Blok Sengkang mempunyai cadangan terbukti gas bumi sebesar 800 miliar kaki kubik (bcf) dan memiliki cadangan sumber daya sebanyak 2 triliun kaki kubik (tcf).

EAST SEPINGGAN

Selain Sengkang, Kementerian ESDM juga menandatangani kontrak baru Blok East Sepinggan yang berlokasi di Selat Makassar Penandatanganan tersebut dilakukan oleh Wakil Menteri ESDM Arcandra Tahar bersama dengan Dirjen Migas Djoko Siswanto dan Kepala SKK Migas Dwi Soetjipto bersama dengan Energy Equity Epic Sengkang, Eni (perusahaan migas dari Italia), dan PT Pertamina Hulu Energi East Sepinggan.

Kontrak baru Blok East Sepinggan menggunakan skema bagi hasil kotor menggantikan model cost recovery. East Sepinggan menjadi wilayah kerja migas pertama yang beralih dan cost recovery ke gross split. Selama ini, sudah ada beberapa blok migas yang beralih dari cost recovery ke gross split. Namun, kontrak blok tersebut sudah habis. Berbeda dengan East Sepinggan yang kontraknya masih berlaku.

Eni mengusulkan perubahan skema kontrak tersebut dengan alasan untuk efektifitas pengembangan wilayah kerja migas lepas pantai tersebut. Eni melalui anak usahanya Eni East Sepinggan Ltd. menjadi operator blok dengan hak partisipasi sebesar 85% dan PT Pertamina Hulu Energi East Sepinggan sebesar 15%.

Arcandra menjelaskan, kontrak migas dengan skema gross split akan lebih sederhana dan mampu menciptakan efisiensi dalam produksi migas. Terkait dengan perubahan kontrak tersebut, Eni harus melakukan revisi rencana pengembangan (plan of development/PoD) lapangan Merakes yang berada di area Blok East Sepinggan. PoD Merakes sebelumnya menggunakan skema cost recovery.

Arcandra meinperkirkan produksi gas dari lapangan Merakes sebesar 155 MMscfd dan akan mencapai puncak produksi sekitar 391 MMscfd. Selain itu, lapangan ini memiliki cadangan gas sebesar 814 bcf. Untuk usia lapangan ekonomis Blok East Sepinggan diperkirakan selama 9 tahun sejak produksi pertama.

Menurutnya, proyek Lapangan Merakes akan mulai beroperasi pada 2021 atau mundur dari proyeksi awal pada akhir 2019. Eni memperoleh bagi hasil 67% untuk minyak, sedangkan gas bumi sebesar 72% yang merupakan kumulatif bagi hasil awal (base split) dan bagi hasil variabel dalam skema kontrak gross split. Kepala SKK Migas Dwi Soetjipto mengatakan, produksi gas Blok East Sepinggan bisa lebih cepat dari tahun yang ditetapkan. 

"Iya tadinya 2021 [produksi], diharapkan bisa lebih cepat dari 2021. Dwi optimistis, proyek tersebut bisa beroperasi lebih cepat karena kontraktor telah mengubah skema kontrak menjadi bagi hasil kotor.

“Kami lihat percepatan itu dalam implementasinya. Kalau dulu cost recovery karena harus bolak-balik ke SKK Migas kalau akan mengeluarkan uang. Kalau ini

[gross split) mereka sendiri [menentukan belanja],“ imbuhnya.

Menurutnya, percepatan target produksi itu akan membuat penambahan produksi gas siap jual (lifting) di Indonesia.

Bisnis Indonesia, Page-24, Wednesday, Dec 12, 2018

Pertamina EP Finds 100 Million Barrel Oil and Gas Sources

PT Pertamina EP managed to find oil and gas sources in Jatibarang, lndramayu West Java and Matindok, South Sulawesi with a total potential of 100 million barrels. The discovery of this reserve is expected to be able to hold back the rate of decline in the company's oil and gas production going forward.

Matindok Field, South Sulawesi 

"The finding of this new oil and gas source is significant to maintain production for the next few years in Jatibarang and in Matindok. The potential is around 100 million barrels per day," Director of Exploration and New Discovery of Pertamina EP Alian Husein said, quoted by Antara.

Allian said, in the near future it will begin the drilling process in the first quarter of 2019 in Matindok Field. While the oil and gas drilling process in Jatibarang Field will only begin at the end of 2019 due to long land preparation and licensing. At present, the field in Jatibarang can deliver very significant oil and gas to 2,500 barrels per day and gas of a dozen million cubic feet per day (million standard cubic feet per day / MMSCFD).

While in Matindok, it can produce oil up to 200 bpd or greater by 20-360% from the initial projection. Although succeeding in increasing oil and gas reserves, Alfian noted that the oil production target charged by the government in 2018 is still not fulfilled. As of early December, Pertamina EP posted oil production of 78.46 thousand bpd, equivalent to around 95% of the target of 82.7 thousand bpd. While gas production was recorded at 1,021 MMSCFD or 3% higher than the target of 987 MMSCFD.

"The calculation process has not been completed. At the end of December, we will calculate the possibility of not reaching the target, "he said.

Previously, Pertamina EP President Director Nanang Abdul Manaf said, so far, his party had realized drilling of 71 wells and carried out the re-work of 136 wells. For exploration activities, it has completed 2D seismic covering an area of ​​680 kilometers (km) and seismic 3D 344 square kilometers.

At the same time, it is also working on six projects at once. The six projects are enhanced oil recoveify / EOR development projects in Ramba, the EOR Development Project in Jirak, the Jatiasri Complex Development Project, the Big Bamboo and Acacia Good Development Project, and the Tapen Development Project.

IN INDONESIAN

Pertamina EP Temukan Sumber Migas 100 Juta Barel

PT Pertamina EP berhasil menemukan sumber minyak dan gas di Jatibarang, lndramayu  Jawa Barat dan Matindok, Sulawesi Selatan dengan total potensi 100 juta barel. Penemuan cadangan ini diharapkan dapat menahan laju penurunan produksi migas perusahaan ke depannya.

“Temuan sumber baru migas ini signifikan untuk mempertahankan produksi hingga beberapa tahun ke depan di Jatibarang dan di Matindok, Potensinya sekitar 100 juta barrel per day,” kata Direktur Eksplorasi dan Penemuan Cadangan Baru Pertamina EP Alian Husein, sebagaimana dikutip Antara, akhir pekan lalu. 

Dikatakan Allian, pihaknya dalam waktu dekat akan memulai proses pengeboran pada kuartal pertama 2019 di Lapangan Matindok. Sedangkan proses pengeboran migas di Lapangan Jatibarang baru akan dimulai pada akhir 2019 karena persiapan lahan dan perizinan yang panjang. Saat ini, lapangan di Jatibarang dapat mengalirkan minyak dan gas yang sangat signifikan sampai 2.500 barel per hari serta gas belasan juta kaki kubik per hari (million standard cubic feet per day/MMSCFD).

Sementara di Matindok, pihaknya dapat menghasilkan minyak hingga 200 bph atau lebih besar 20-360% dari proyeksi awal. Meski berhasil menambah cadangan migas, Alfian mencatat target produksi minyak yang dibebankan pemerintah pada 2018 masih belum terpenuhi. Hingga awal Desember, Pertamina EP membukukan pproduksi minyak sebesar 78,46 ribu bph atau setara sekitar 95% dari target 82,7 ribu bph. Sementara produksi gas tercatat mencapai 1.021 MMSCFD atau lebih tinggi 3% dari target 987 MMSCFD.

“Proses penghitungan belum selesai. Pada akhir Desember, lalu akan kami hitung kemungkinan tidak akan mencapai target,” katanya.

Sebelumnya, Presiden Direktur Pertamina EP Nanang Abdul Manaf menuturkan, sejauh ini, pihaknya telah merealisasikan pengeboran 71 sumur dan melaksanakan kerja ulang sumur sebanyak 136 sumur. Untuk kegiatan eksplorasi, pihaknya telah merampungkan seismik 2D seluas 680 kilometer (km) dan seismik 3D 344 kilometer persegi.

Pada saat yang sama, pihaknya juga sedang menggarap enam proyek sekaligus. Keenam proyek ini adalah proyek pengembangan pengurasan produksi tahap lanjut (enhanced oil recoveify/EOR) di Ramba, Proyek Pengembangan EOR di Jirak, Proyek Pengembangan Komplek Jatiasri, Proyek Pengembangan Bambu Besar dan Akasia Bagus, serta Proyek Pengembangan Tapen.

Investor Daily, Page-9, Tuesday, Dec 11, 2018

Pertamina Boosts Balikpapan Refinery Production

The construction of the Balikpapan Refinery Development Master Plan (RDMP) immediately began with the signing of a construction design contract (engineering, procurement and construction / EPC) with the construction of the refinery, both inside battery limit (IBL) and outside battery limit (OSBL).

The signing of the contract was carried out after the auction process on March 15-November 26 2018 was declared completed and the winner was announced on November 30, 2018. Corporate Communications Vice President Pertamina Adiatma Sardjito said the Balikpapan RDMP refinery development would be carried out joint operation of four domestic and foreign companies, namely SK Engineering and Construction Co. Ltd., Hyundai Engineering Co. Ltd, PT Rekayasa Industri, and PT PP (persero) Tbk. The Balikpapan RDMP development contract reached Rp. 57.8 trillion and will be completed within 53 months.

Hyundai Engineering Co. Ltd

"Balikpapan's RDMP refinery is part of Pertamina's strategic project to realize national energy independence and security. "The capacity of the Balikpapan refinery will increase to 100,000 barrels per day, up 38% from the previous 260,000 barrels per day to 360 thousand barrels per day," Adiatma said.

Balikpapan RDMP is one of six refinery mega-projects built by Pertamina. The six refinery megaprojects consist of four RDMP expansion projects and two new grass root refinery / GRR projects.

Nicke Widyawati

"At the end of 2026, we can implement the six refinery projects," said Pertamina Director Nicke Widyawati.

Coordinating Minister for Economic Affairs Darmin Nasution said the construction of the Balikpapan refinery answered the government's thirst which had been wanting to develop or expand refineries.

ESDM Minister Ignasius Jonan

"The government understands that building or developing refineries is not easy because it requires costs and a long time. However, this should not be ignored because it becomes a capital in realizing national energy security, "said ESDM Minister Ignasius Jonan.

"The refinery is also the forerunner of petrochemicals. This is the hope that our government has a large petrochemical industry, "he added.

IN INDONESIAN

Pertamina Genjot Produksi Kilang  Balikpapan

Pembangunan Refinery Development Master Plan (RDMP) Kilang Balikpapan segera dimulai dengan ditandatanganinya kontrak pelaksanaan rancangan konstruksi (engineering, procurement and construction/EPC) dengan ruang lingkup pembangunan kilang, baik inside battery limit (IBL) maupun outside battery limit (OSBL). 

Penandatanganan kontrak ini dilakukan setelah melalui proses lelang pada 15 Maret-26 November 2018 dinyatakan selesai dan telah diumumkan pemenangnya pada 30 November 2018. Vice President Corporate Communications Pertamina Adiatma Sardjito menyatakan pembangunan RDMP Kilang Balikpapan akan dilakukan joint operation empat perusahaan dalam dan luar negeri, yaitu SK Engineering and Construction Co Ltd, Hyundai Engineering Co Ltd, PT Rekayasa Industri, dan PT PP (persero) Tbk. Adapun kontrak pembangunan RDMP Balikpapan mencapai Rp 57,8 triliun dan akan diselesaikan dalam waktu 53 bulan.

“RDMP Kilang Balikpapan bagian dari proyek strategis Pertamina untuk mewujudkan kemandirian dan ketahanan energi nasional. Nantinya kapasitas kilang Balikpapan akan bertambah hingga 100 ribu barel per hari, atau naik 38% dari sebelumnya 260 ribu barel per hari menjadi 360 ribu barel per hari,” ujar Adiatma

RDMP Balikpapan merupakan satu dari enam megaproyek kilang yang dibangun Pertamina. Keenam megaproyek kilang itu terdiri atas empat proyek perluasan RDMP dan dua proyek pembangunan baru (grass root refinery/GRR). 

“Akhir 2026, keenam proyek kilang ini insya Allah bisa kita laksanakan” ujar Dirut Pertamina Nicke Widyawati. 

Menko Bidang Perekonomian Darmin Nasution mengatakan pembangunan kilang Balikpapan menjawab dahaga pemerintah yang selama ini ingin ada pembangunan ataupun perluasan kilang.

“Pemerintah mengerti bahwa membangun ataupun mengembangkan kilang tidak mudah karena membutuhkan biaya dan waktu yang lama. Namun, hal ini tidak boleh diabaikan karena menjadi modal dalam mewujudkan ketahanan energi nasional,” kata Menteri ESDM Ignasius Jonan.

“Kilang juga cikal bakal petrokimia. Ini harapan pemerintah kita punya industri petrokimia besar,” imbuhnya.

Media Indonesia, Page-13, Tuesday, Dec 11, 2018

SK, Hyundai to upgrade Pertamina refinery

State energy holding company Pertamina on Monday said it appointed South Korea’s SK Engineering & Construction Co. and Hyundai Engineering & Construction Co. as engineering and construction contractors for its Balikpapan refinery upgrade.

Upgrade work at the US$ 4 billion Balikpapan project, in East Kalimantan will now start at the beginning of 2019, Pertamina executive Ignatius Tallulembang said at a media briefing. Development will be jointly undertaken with state-owned construction firm PT Pembangunan Perumahan Tbk and state engineering firm PT Rekayasa lndustri (Rekind), Tallulembang said. When the upgraded refinery goes onstream in August 2023, it will produce fuel to the “Euro V” emissions standard, he added.

The upgrade comes as Southeast Asia’s largest economy hopes to reduce its dependence on costly oil product imports, currently meeting around a third of its fuel needs of around 1.4 million barrels per day. But a program launched in late 2014 to double lndonesia’s refinery output has faced multiple setbacks, as the country has continued to struggle to attract investment in the sector.

Earlier plans to upgrade Balikpapan with Japan’s JX Nippon fell apart in early 2016, but as recently as August this year it was seeking to revive that partnership, or form a new one with Azerbaijan’s Socar for the project. At the same event, Pertamina signed a framework agreement with Omanfs Overseas Oil and Gas LLC (OOG) to develop a new $10 billion refinery and petrochemical complex in Bontang, also on Borneo.

Framework Agreement

State-owned OOG, which is taking a majority stake in the project, was chosen for its financial capability Pertamina chief executive Nicke Widyawati said. Pertamina is in talks with OOG to increase its share ofthe project to 20-30 percent from 10 percent under the current plan, Tallulembang said. It was not immediately clear how much of the project cost will be carried by OOG.

Nicke Widyawati 

Widyawati declined to comment on why Japan’s Cosmo Energy Holdings, earmarked in January for partnership in the project, was not included in the latest agreement. Over the next year, Pertamina and OOG plan to carry out a feasibility study for the project. Once completed, OOG is expected to supply 300,000 bpd of crude oil to the refinery, Tallulembang said.

Omanfs Overseas Oil and Gas LLC (OOG)

Pertamina now expects all six of its refinery projects including the Balikpapan, Cilacap, Balongan and Dumai refinery upgrades and the Bontang and Tuban grassroots developments to be completed by the end of 2026, Widyawati said.

“We recognize that the refineries have experienced delays [but] better late than never,” Widyawati said.

Jakarta Post, Page-13, Tuesday, Dec 11, 2018

Accelerate the Construction of Oil Refineries

PT Pertamina conducted two collaborations to complete the construction of an oil refinery in East Kalimantan. The first project, which is an oil refinery in Bontang, is cooperated with an oil company from Oman, Overseas Oil & Gas (OOG). Bontang Refinery is one of six refinery projects Pertamina will work on until the next 2026.

Nicke Widyawati

Pertamina's Managing Director, Nicke Widyawati, explained, for the refinery in Bontang, the framework agreement between the two companies applies to build a 300 thousand barrel / day refinery and the Petrochemical industry. With the signing of this cooperation, Pertamina can take the next step, namely a feasibility study, including in its economic terms.

"This study will give us a better understanding of the technical configuration of the refinery and the economics of the project as well as recognize the risks that can be anticipated early on for timely project implementation, according to the budget, on specifications, regulations, and achieve project economic targets," Nicke said at Pertamina Headquarters, Monday (10/12).

According to Nicke, the Bontang refinery will later become the largest refinery owned by Pertamina. In addition, the proceeds from the refinery will directly be integrated with the petrochemical plant. In addition to the refinery in Bontang, Pertamina is also conducting development cooperation with Hyundai Engeneering, SK Engeneering, Rekind, and PT PP for the construction of a refinery development master plan (RDMP) in Balikpapan. The construction of a refinery that requires funds of US $ 4 billion or around Rp. 57.8 trillion is planned to be completed by August 2023.

Hyundai Engeneering Co., Ltd.

Nicke said that the refinery is also one of six refinery projects that Pertamina will complete until 2026. If it is already operational, the Balikpapan refinery is predicted to reduce the purchase of diesel fuel by about 17 percent.

"In addition to being able to suppress imports. This refinery will focus on producing, fuel (fuel oil) with a higher standard. So, it will be more environmentally friendly," said Nicke.

PT Pertamina's Megaprojecting and Petrochemical Director, Ignatius Talulembang, said, for oil refineries in Bontang, all funds were spent purely from OOG. Pertamina will get profit sharing around 10 percent. Even so, going forward, Pertamina will slowly buy up 30 percent of share ownership. Through this collaboration in the form of government to government (G to G), Pertamina has the opportunity to open investment in Oman.

Framework Agreement Pertamina & OOG Oman

While for refineries in Balikpapan, Igantius said, since the beginning of 2018 Pertamina has begun preparatory construction, such as the construction of warehouses and workshops, for construction workers. Next year, significant development will be carried out.

"Development takes around 53 months until it starts operating. An additional three months is up to normal operation," Ignatius said.

     The Balikpapan refinery has a capacity of 360 thousand barrels per day. This is a development from the previous refinery with a capacity of only 100,000 barrels per day.

IN INDONESIAN

Percepat Pembangunan Kilang Minyak

PT Pertamina melakukan dua kerja sama untuk menyelesaikan pembangunan kilang minyak di Kalimantan Timur.  Proyek pertama, yaitu kilang minyak di Bontang yang dikerjasamakan dengan perusahaan minyak dari Oman, Overseas Oil & Gas (OOG). Kilang Bontang merupakan salah satu dari enam proyek kilang yang akan dikerjakan Pertamina hingga 2026 mendatang.

Direktur Utama Pertamina, Nicke Widyawati, menjelaskan, untuk kilang di Bontang, perjanjian framework agreement antara kedua perusahaan berlaku untuk membangun kilang berkapasitas 300 ribu barel/hari dan industri Petrokimia. Dengan ditandatanganinya kerja sama ini, Pertamina bisa melakukan langkah berikutnya, yakni Studi kelayakan, termasuk dalam hal keekonomiannya.

"Studi ini akan memberikan kita pemahaman yang lebih baik tentang konfigurasi teknis kilang dan keekonornian proyek serta mengenal risiko-risiko yang dapat diantisipasi sejak dini untuk pelaksanaan proyek yang tepat waktu, sesuai anggaran, pada spesifikasi, pada peraturan, dan mencapai target keekonomian proyek,” ujar Nicke di Kantor Pusat Pertamina, Senin (10/12).

Menurutnya, kilang Bontang ini nantinya menjadi kilang terbesar yang dimiliki Pertamina. Selain itu, hasil dari kilang ini secara langsung akan diintegrasikan dengan pabrik petrokimia. Selain kilang di Bontang, Pertamina juga melakukan kerja sama pembangunan dengan Hyundai Engeneering, SK Engeneering, Rekind, dan PT PP untuk pembangunan kilang refinery development masterplan (RDMP) di Balikpapan. Pembangunan kilang yang membutuhkan dana sebesar 4 miliar dolar AS atau Sekitar Rp 57,8 triliun ini rencananya Selesai pada Agustus 2023.

Nicke mengatakan, kilang ini juga merupakan salah satu dari enam proyek kilang yang akan diselesaikan Pertamina hingga 2026. Jika telah beroperasi, kilang Balikpapan diprediksi bisa menekan pembelian solar secara impor sekitar 17 persen.

"Selain bisa menekan impor. Kilang ini nantinya akan fokus memproduksi, BBM (bahan bakar minyak) dengan standar lebih tinggi. Jadi, akan lebih ramah lingkungan," kata Nicke.

Direktur Megaproyek Pengolahan dan Petrokimia PT Pertamina, Ignatius Talulembang, menuturkan, untuk kilang minyak di Bontang, seluruh dana yang dikeluarkan murni dari OOG. Pertamina akan mendapat bagi hasil Sekitar 10 persen. Meski demikian, ke depan, Pertamina secara perlahan akan membeli kepemilikan Saham hingga 30 persen. Melalui kerja sama berbentuk goverment to goverment (G to G) ini, Pertamina memiliki kesempatan untuk membuka investasi di Oman.

Sementara untuk kilang di Balikpapan, Igantius menuturkan, sejak awal 2018 Pertamina telah memulai konstruksi persiapan, seperti pembangunan warehouse dan workshop, untuk para pekerja konstruksi. Tahun depan, pembangunan secara signfikan akan dilakukan.

"Pembangunan membutuhkan waktu sekitar 53 bulan sampai dengan mulai beroperasi. Tambahan tiga bulan lagi sampai beroperasi normal," ujar Ignatius. 

Kilang Balikpapan memiliki kapasitas 360 ribu barel per hari. Ini merupakan pengembangan dari kilang sebelumnya yang berkapasitas hanya 100 ribu barel per hari.

Republika, Page-15, Tuesday, Dec 11, 2018

Collaborating with Schlumberger, ELSA Strengthens Upstream Oil and Gas

In order to strengthen and optimize the upstream oil and gas service business (oil and gas), PT Elnusa Tbk (ELSA) has a partnership with Schlumberger, an energy company from the United States (US). The cooperation is in the signing of the Master Cooperation Agreement (MCA) and Wireline Master Service (WMS) between the two companies.

PT Elnusa Tbk (ELSA)

President Director of PT Elnusa Tbk Tolingul Anwar, hopes that this collaboration can increase national capacity in upstream oil and gas services and technology transfer. ELSA and Schlumberger can also share opportunities and risks to increase growth.

Schlumberger

According to Tolingul, the collaboration is needed to accelerate the company's growth. The partnership between ELSA and Schlumberger has five categories, namely reservoir characterization, drilling and oil production, surface production and integrated service.

"Of course this management requires a service contractor and Elnusa hopes to get greater opportunities in the context of the synergy of Pertamina Group," said Tolingul, Monday (10/12).

As of October 31, 2018, Pertamina did control 41, 10% of ELSA's shares. On the other hand, Schlumberger has technology and resources that can be optimized for the management of upstream oil and gas. In fact, said Tolingul, the technology can contribute to lowering costs, as well as maximizing oil and gas fields and supporting government programs in finding giant fields in Indonesia.

IN INDONESIAN

Gandeng Schlumberger, ELSA Perkuat Hulu Migas

Demi memperkuat clan mengoptimalkan bisnis jasa hulu minyak dan gas bumi (migas), PT Elnusa Tbk (ELSA) menjalin kerjasama dengan Schlumberger, perusahaan energi dari Amerika Serikat (AS). Kerjasama itu ada didalam penandantanganan Master Cooperation Agreement (MCA) dan Wireline Master Service (WMS) di antara kedua perusahaan.

Direktur Utama PT Elnusa Tbk Tolingul Anwar, mengharapkan kerjasama ini bisa meningkatkan kapasitas nasional dalam servis hulu migas dan alih teknologi. ELSA dan Schlumberger juga bisa saling berbagi peluang dan risiko untuk meningkatkan pertumbuhan.

Menurut Tolingul, kerjasama tersebut sangat dibutuhkan untuk mempercepat pertumbuhan perusahaan. Kongsi antara ELSA dan Schlumberger ini memiliki lima kategori, yakni reservoir Characterization, pengeboran dan produksi minyak, surface production serta integrated service.

“Tentunya pengelolaan ini membutuhkan kontraktor jasa dan Elnusa berharap akan mendapatkan kesempatan yang lebih besar dalam rangka sinergi Pertamina Group,” ungkap Tolingul, Senin (10/ 12). 

Per 31 Oktober 2018, Pertamina memang menguasai 41, 10% Saham ELSA. Di sisi lain, Schlumberger memiliki teknologi dan resources yang bisa dioptimalkan untuk pengelolaan hulu migas. Bahkan, kata Tolingul, teknologi itu bisa berkontribusi dalam menurunkan biaya, serta memaksimalkan lapangan-lapangan migas dan mendukung program pemerintah dalam mencari lapangan raksasa di Indonesia.

Kontan, Page-14, Tuesday, Dec 11, 2018

Refinery Project Targeted to Finish in 2026

PT Pertamina (Persero) is committed to completing a refinery development project and the construction of a new refinery in 2026. The refinery development project is carried out in four refineries, including a refinery specifically processing palm oil. Previously, the mega project was scheduled to be completed in 2024.

Pertamina signed a design, construction and engineering (EPC) contract for the development of the Balikpapan refinery, East Kalimantan, in Jakarta on Monday (12/10/2018). EPC auction winner companies are SK Engineering & Construction Co. Ltd, Hyundai Engineering Co. Ltd, PT Rekayasa Industri, and PT Pembangunan Perumahan (Persero) Tbk.

Pertamina also signed a document on the framework of cooperation with Overseas Oil & Gas (OOG), an oil and gas company from Oman, to build a new refinery in Bontang, East Kalimantan. The Balikpapan refinery development project will begin in January 2019. The schedule given to project implementers is 53 months which is effective from the signing of the contract. The project will increase refinery capacity from 260,000 barrels per day to 360,000 barrels per day with the quality of the fuel produced by the Euro 5 standard.

Nicke Widyawati 

Pertamina's Managing Director Nicke Widyawati acknowledged there was a delay in the construction of a new refinery development and construction project. However, it is still better than no progress at all. It targets the entire refinery development and construction projects to be completed by 2026.

"All will be done in parallel (new refinery development and construction projects). It's better late than nothing, "said

Nicke after signing the contract.

Overseas Oil & Gas (OOG)

As for the new refinery development project in Bontang, OOG has gone through the selection phase since last year. OOG is considered to have strong financial capabilities, including the strength of upstream-downstream businesses. The refinery in Bontang will have a capacity of 300,000 barrels per day.

Pertamina's Director of Processing and Petrochemical Project, Ignatius Tallulembang, added that in the new refinery development project in Bontang, all funding was borne by the OOG. Under the agreement, Pertamina will get a 10 percent golden share. Pertamina as the party that provides land and other supporting infrastructure on this project.

In the long run, Pertamina's shares will be raised to 20 percent or 30 percent. "The new refinery in Bontang will later be integrated with petrochemical products. The investment value is around 10 billion US dollars," Ignatius said.

In that cooperation, OOG is committed to supplying crude oil for refinery needs. The fuel products produced will be fully absorbed by Pertamina. However, there is a chance that Pertamina and OOG will establish a joint venture to sell BBM domestically.

     Meanwhile, Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan claimed to understand why the megaproject developing capacity and construction of new refineries could not be done quickly. The whole set of processes must be carried out carefully. Only, according to him, needs attention to the increasingly rapid development of electricity for transportation that can replace the role of BBM.

"There is a concern that electricity is growing rapidly, why build a refinery? In addition to energy security, building refineries is also for the development of domestic petrochemical industries, "said Jonan.

In addition to the Balikpapan refinery, the refinery development project is also carried out in Cilacap, Central Java; in Balongan, West Java; and in Dumai, Riau. The new refinery to be built, besides in Bontang, is also in Tuban, East Java by Rosneft from Russia. If all the projects are completed, the installed capacity of the refinery will increase from 1 million barrels per day to 2 million barrels per day.

Rosneft Oil Company Russia

Previously, Coordinating Minister for the Economy Darmin Nasution stated that Pertamina must accelerate the realization of new refinery development which is integrated with the petrochemical industry to reduce dependence on imports. Pertamina was also asked to optimize the mandatory B-20 policy. This policy is in the form of mixing biodiesel into diesel fuel so that every liter of diesel fuel contains 20 percent of biodiesel.

IN INDONESIAN

Proyek Kilang Ditargetkan Selesai pada 2026

PT Pertamina (Persero) berkomitmen menyelesaikan proyek pengembangan kilang dan pembangunan kilang baru di tahun 2026. Proyek pengembangan kilang dilakukan di empat kilang, termasuk kilang khusus pengolahan minyak kelapa sawit. Sebelumnya, megaproyek ini dijadwalkan rampung pada 2024.

Pertamina menandatangani kontrak pengerjaan rancangan, konstruksi, dan rekayasa (EPC) untuk pengembangan kilang Balikpapan, Kalimantan Timur, di Jakarta, Senin (10/12/2018). Perusahaan pemenang lelang EPC adalah SK Engineering & Construction Co Ltd, Hyundai Engineering Co Ltd, PT Rekayasa Industri, dan PT Pembangunan Perumahan (Persero) Tbk. 

Pertamina juga menandatangani dokumen kerangka kerja sama dengan Overseas Oil & Gas (OOG), perusahaan migas dari Oman, untuk membangun kilang baru di Bontang, Kalimantan Timur. Proyek pengembangan kilang Balikpapan akan dimulai Januari 2019. Jadwal yang diberikan ke pelaksana proyek adalah 53 bulan yang berlaku efektif sejak penandatangan kontrak. Proyek ini akan menambah kapasitas kilang dari 260.000 barel per hari menjadi 360.000 barel per hari dengan kualitas bahan bakar minyak (BBM) yang dihasilkan berstandar euro 5.

Direktur Utama Pertamina Nicke Widyawati mengakui ada keterlambatan pengerjaan proyek pengembangan dan pembangunan kilang baru. Namun, hal itu masih lebih baik daripada tidak ada kemajuan sama sekali. Pihaknya menargetkan seluruh proyek pengembangan dan pembangunan kilang baru selesai pada 2026. 

”Semua akan dilakukan secara paralel (proyek pengembangan dan pembangunan kilang baru). Lebih baik terlambat daripada tidak sama sekali,” kata Nicke seusai penandatanganan kontrak.

Adapun proyek pembangunan kilang baru di Bontang, OOG sudah melalui tahap seleksi sejak tahun lalu. OOG dinilai punya kemampuan finansial yang kuat, termasuk kekuatan bisnis hulu-hilir. Kilang di Bontang nantinya akan berkapasitas 300.000 barel per hari.

Direktur Mengaproyek Pengolahan dan Petrokimia Pertamina, Ignatius Tallulembang menambahkan, pada proyek pembangunan kilang baru di Bontang, seluruh pendanaan ditanggung OOG. Dalam perjanjian itu, Pertamina akan mendapat golden share 10 persen. Pertamina sebagai pihak yang menyediakan lahan dan infrastruktur pendukung lainnya pada proyek ini.

Dalam jangka panjang, saham Pertamina akan dinaikkan menjadi 20 persen atau 30 persen. Kilang baru di Bontang nanti akan diintegrasikan dengan produk petrokimia, Nilai investasinya sekitar 10 miliar dollar AS,” kata Ignatius.

Dalam kerja sama itu, OOG berkomitmen memasok minyak mentah untuk kebutuhan kilang. Produk Bahan Bakar Minyak (BBM) yang dihasilkan akan diserap sepenuhnya oleh Pertamina. Namun, ada peluang Pertamina bersama OOG mendirikan usaha patungan untuk penjualan BBM didalam negeri.

     Sementara itu, Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan mengaku bisa paham kenapa megaproyek pengembangan kapasitas dan pembangunan kilang baru tidak bisa dikerjakan cepat. Seluruh rangkaian proses mesti dilakukan dengan cermat. Hanya, menurut dia, perlu perhatian terhadap kian pesatnya perkembangan listrik untuk transportasi yang bisa menggantikan peran BBM.

”Ada kekhawatiran kalau listrik semakin pesat, untuk apa membangun kilang? Selain untuk ketahanan energi, membangun kilang juga untuk pengembangan industri petrokimia di dalam negeri,” kata Jonan.

Selain kilang Balikpapan, proyek pengembangan kilang dilakukan juga di Cilacap, Jawa Tengah; di Balongan, Jawa Barat; dan di Dumai, Riau. Adapun kilang baru yang akan dibangun, selain di Bontang, ada juga di Tuban, Jawa Timur oleh Rosneft dari Russia. Apabila semua proyek itu selesai, kapasitas terpasang kilang naik dari 1 juta barel per hari jadi 2 juta barel per hari.

Sebelumnya, Menteri Koordinator Perekonomian Darmin Nasution menyatakan, Pertamina harus mempercepat realisasi pembangunan kilang baru yang terintegrasi dengan industri petrokimia untuk mengurangi ketergantungan pada impor. Pertamina juga diminta mengoptimalkan kebijakan mandatori B-20. Kebijakan ini berupa pencampuran biodiesel ke dalam solar sehingga setiap liter solar mengandung 20 persen biodiesel.

Kompas, Page-14, Tuesday, Dec 11, 2018

Oil Prices Continue to Decline

Pertamina starts drilling wells in Blora

Weakening global economic growth affected the decline in the price of Indonesian crude oil (ICP) in November 2018. The November 2018 ICP also fell in the figure of USD 62.98 per barrel or down by USD 14.58. ICP is the lowest for a period of 6 months.

The Head of the Communication, Public Information Services and Cooperation Ministry of the Ministry of Energy and Mineral Resources, Agung Pribadi explained that US policies that provide exceptions to eight countries to import crude oil from Iran resulted in over supply.

"Stocks of crude oil are abundant on the global market," he said.

Another impact that resulted in oversupply was the abundance of Saudi Arabian crude oil production due to anticipation of sanctions against Iran. and, an increase in the supply of US crude oil by 24.5 million barrels in November 2018. The excess supply is in accordance with the November 2018 International Energy Agency (IEA) publication which states that OPEC crude oil production in October 2018 increased by 127 thousand barrels per day.

In addition, this year's non-OPEC crude oil supply projection increased 170 thousand barrels per day to 60.3 million barrels per day compared to the previous month's projection.

On the other hand, the International Monetary Fund (IMF) projects world economic growth in 2018 to slow down to 3.7 percent. Down 0.2 percent compared to the previous month's projection.

"In the Asia-Pacific region, the decline in crude oil prices is influenced by several factors," he said.

Among other things, the slowdown in China's economic growth due to trade wars with the US and the weakening demand for crude oil and crude oil products from Japan and Korea.

Meanwhile, PT Pertamina EP Asset 4 Cepu Field has begun drilling the North Kedungtuban exploitation well (NIC1-01 TW) in Blora, Central Java. The drilling is targeted to produce 9 MMSCFD gas. Cepu Acting Officer Field Manager Aley Hildan stated that the NKT-01TW well has enormous oil and gas potential.

"The drilling target is about 9 MMSCFD of gas. At present Cepu Field gas production is at 68 MMSCFD," he said.

Drilling of the well took 69 days with a final depth of 2,909 meters. The production of oil and gas Pertamina EP Asset 4 as of November 23, 2018 has reached 17,235 BOPD (barrel oil per day) or around 121.65 percent above the target. The subsidiary of PT Pertamina EP targets the company's oil and gas production this year to reach 14,032 BOPD.

PT Pertamina EP Asset 4 Cepu Field

Significant increase in asset 4 performance is a positive contribution from each field. For example, Cepu, Poleng, Papua, Donggi Matindok, and especially Sukowati Field. The biggest contributor to the increase in production at asset 4 is the Sukowati field with service in several wells, especially for repairing bonding cement.

As of November 29, 2018, Sukowati field oil production has reached 9,697 BOPD. That number exceeded the field's oil production target this year of 8 thousand BOPD. Gas production in asset 4 also reached 184.17 MMSCFD. That figure is more than 13 percent of the gas production target of 157.59 MMSCFD.

IN INDONESIAN

Harga Minyak Terus Melorot

Pertamina Mulai Bor Sumur di Blora

Pertumbuhan ekonomi global yang melemah mempengaruhi penurunan harga minyak mentah Indonesia atau Indonesian crude price (ICP) pada November 2018. ICP November 2018 pun anjlok di angka USD 62,98 per barel atau turun USD 14,58. ICP merupakan terendah selama kurun waktu,6 bulan.

Kepala Biro Komunikasi, Layanan Informasi Publik, dan Kerja Sama Kementerian ESDM Agung Pribadi menjelaskan bahwa kebijakan AS yang memberikan pengecualian kepada delapan negara untuk mengimpor minyak mentah dari Iran mengakibatkan over supply.

"Stok minyak mentah melimpah di pasaran global," ujarnya.

Dampak lain yang mengakibatkan kelebihan pasokan adalah melimpahnya produksi minyak mentah Arab Saudi akibat antisipasi sanksi terhadap Iran. serta, peningkatan pasokan minyak mentah AS sebanyak 24,5 juta barel pada November 2018. Kelebihan pasokan itu sesuai dengan publikasi International Energy Agency (IEA) November 2018 yang menyebutkan produksi minyak mentah OPEC pada Oktober 2018 mengalami peningkatan 127 ribu barel per hari. 

Selain itu, proyeksi pasokan minyak mentah negara-negara non-OPEC tahun ini meningkat 170 ribu barel per hari menjadi 60,3 juta barel per hari jika dibandingkan dengan proyeksi bulan sebelumnya.

Di sisi lain, International Monetary Fund (IMF) memproyeksikan pertumbuhan ekonomi dunia 2018 mengalami perlambatan menjadi 3,7 persen. Turun 0,2 persen jika dibandingkan dengan proyeksi bulan sebelumnya.

"Di kawasan Asia-Pasifik, penurunan harga minyak mentah dipengaruhi beberapa faktor,” katanya. 

Di antaranya, perlambatan pertumbuhan ekonomi Tiongkok akibat perang dagang dengan AS serta melemahnya permintaan minyak mentah dan produk minyak mentah dari Jepang dan Korea. 

Sementara itu, PT Pertamina EP Asset 4 Cepu Field telah memulai pengeboran sumur eksploitasi North Kedungtuban (NIC1-01 TW) di Blora, Jawa Tengah. Pengeboran tersebut ditargetkan dapat menghasilkan gas 9 MMSCFD. Pejabat sementara Cepu Field Manager Aley Hildan menyatakan, sumur NKT-01TW memiliki potensi migas yang sangat besar. 

"Target pengeboran ini adalah gas sekitar 9 MMSCFD. Saat ini produksi gas Cepu Field berada di angka 68 MMSCFD," katanya.

Pengeboran sumur itu membutuhkan waktu 69 hari dengan kedalaman akhir 2.909 meter. Produksi minyak dan gas bumi Pertamina EP Asset 4 per 23 November 2018 telah berhasil mencapai 17.235 BOPD (barrel oil per day) atau sekitar 121,65 persen di atas target. Anak usaha PT Pertamina EP tersebut menargetkan produksi migas perseroan tahun ini bisa mencapai 14.032 BOPD.

Peningkatan signifikan kinerja aset 4 merupakan kontribusi positif dari setiap lapangan. Misalnya, lapangan Cepu, Poleng, Papua, Donggi Matindok, dan terutama Lapangan Sukowati. Kontributor terbesar peningkatan produksi di aset 4 adalah lapangan Sukowati dengan adanya servis di beberapa sumur, terutama untuk perbaikan bonding cement.

Per 29 November 2018, produksi minyak lapangan Sukowati telah mencapai 9.697 BOPD. Angka itu melampaui target produksi minyak lapangan tersebut tahun ini sebanyak 8 ribu BOPD. Produksi gas di aset 4 pun mencapai 184,17 MMSCFD. Angka itu lebih dari 13 persen dari target produksi gas 157,59 MMSCFD.

Jawa Pos, Page-6, Monday, Dec 10, 2018

ENI S.p.A converts to gross split

Rome-based energy company as agreed to change its contract in the East Sepinggan block, offshore East Kalimantan, from cost recovery to gross split scheme, the first existing contractors that voluntarily turned its contract into the new scheme. 

ENI S.p.A

Deputy Energy and Mineral Resources Minister Arcandra Tahar on Tuesday announced also ENI S.p.A preferred to immediately change the contract, to avoid a long debate with the government about the cost of its project in Merakes gas field.

Arcandra Tahar

"The decision shows that the gross split scheme gives investors simple process, which is certainty more efficient,” he told the press, adding that with the decision, italian company is required to change its plan of development for Merakes gas field and to reveal the amount of its investment.

“The company are committed to increase the local content requirement [TKDN] in the project. if the local content level reaches 30 to 50 percent, the company will get a reward in the form of 2 percentage of additional split.”

the East Sepinggan block, offshore East Kalimantan

ENl'S.p.A's contract in East Sepinggan started in july 2012 and would end in 2041. The block's Merakes gas field is targeted to go onstream in 2021 and set to deliver 391 million standard cubic feet per day (mmscfd) of gas in its peak production. 

In East Sepinggan block, ENI S.p.A holds the 85 percent of participating interest and the remaining stake holds by Pertamina Hulu Energi, the upstream subsidiary of state energy holding company Pertamina.

Jakarta Post, Page-14, Thursday, Dec 6, 2018