Govt welcomes shift to gross split deals

Italian energy company Eni S.p.A and Australian energy company Energy World Corporation (EWC) have amended their production sharing contracts (PSC) from cost recovery to gross split, much to the government’s delight. 

Eni S.p.A

  Eni’s East Sepinggan block offshore of Kalimantan and EWC’s Sengkang block in South Sulawesi, both gas rich, are the latest blocks for which the PSC have been amended into gross split schemes.

Energy and Mineral Resources Deputy Minister Arcandra Tahar couldn’t hide his happiness as the two companies signed their contracts.

“Today, we witness a good start,” said Arcandra, who had long defended the policy. “I’ve received so many letters, reviews and criticisms saying that the gross split [scheme] failed to attract investors [...] In the future, I hope that we speak based on data, not your own perception.”

Eni S.p.A

As of Tuesday, almost two years after the scheme was introduced in January 2017, contracts involving more than 30 oil and gas blocks have been altered to gross split, including the latest with Eni and EWC. Eni S.p.A inked an amendment of its PSC in"the East Sepinggan block changing from cost recovery to gross split with the aim of speeding up the development of its project in the Merakes gas field, especially over issues regarding cost calculation. Its contract is due' in 2042.

Energy Equity Epic Sengkang Pty. Ltd.

EWC, through its subsidiary Energy Equity Epic Sengkang Pty. Ltd. (EEES), signed a similar contract amendment for its Sengkang block, also due in 2042. Eni Indonesia managing director Fabrizio Trilli told the press that amending its contract to gross split was a win-win solution for them in order to achieve better gas production in the block.

Working Area Gross Split

“[With gross split] we are Free to perform in any activity [in the block] and it will guarantee a better result both for us and the government on gas production,” he said. 

Arcandra Tahar

Previously, deputy minister Arcandra said the Italian firm decided to amend its PSC to avoid a prolonged discussion with the government over costs on its gas project' in the Merakes field as required by the cost recovery scheme, in which the government is obliged to reimburse some of the company’s investments.

“They have also committed to increase their local content requirement in the project, through which, if it reaches 30 to 50 percent, we will reward them with an additional 2 percent stake in the split of production,” Arcandra said. 

EWC chief executive officer Stewart Elliott also expounded on the benefits of a gross split scheme to the press. He said he believes it would eliminate the possibility of vendors marking up prices that must later be reimbursed by the government. ”

“Because of that [possibility of a markup], the government needs to watch it carefully and it will take a lot of time, which later leads to inefficiency. Therefore, I think it’s a tremendous step for Indonesia to improve efficiency” he after attending the signing event.

The gross split scheme has been widely criticized and was named one of the things that made Indonesia to be considered one of the 10 most unattractive jurisdictions in the world in terms of oil and gas, according to a 2017 Global Petroleum Survey conducted by the Canadian Fraser Institute think tank.

“Indonesia’s gross split contracts discourage investment at a time of constrained capital and exploration,” the survey stated.

The survey studied 97 countries with participants such as managers and executives in the upstream petroleum industry, ranging from CEOs, consultants and economists to lawyers. In May the institute presented its latest survey during the 42“ Indonesian Petroleum Convention and Exhibition held by the Indonesian Petroleum Association (IPA). 

     Not long after, the ministry sent a letter to the association, circulated to the press, in which it expressed its “disappointment” with the IPA’s decision to involve the institute as one of the speakers in the event.

The ministry countered the Fraser Institute’s survey, saying that it was unfair as it still included taxes during exploration.

“Exploration activities have been exempt from any taxes until the first oil discovery,” the ministry said in its statement, referring to Government Regulation No. 53/2017 on taxes for gross split contracts.

Jakarta Post, Page-13, Friday, Dec 14, 2018

Per November, New Oil and Gas Lifting is 1.91 Million BOEPD

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said that oil and gas lifting up to the end of last month was recorded at 1.91 million barrels of oil equivalent per day (barrel Oil Equivalent per day / boepd). This realization is still 95.5% of this year's oil lifting target set in the APBN of 2 million boepd.

According to SKK Migas data, both oil and gas lifting until November were still below the target. Oil lifting is recorded at only 762 thousand barrels per day (bpd) or 95.25% of the national budget target of 800 thousand bpd. Next, the realization of gas lifting of 1.14 million boepd, only reached 95% of the target set at 1.2 million boepd.

"This achievement reaches 95% of the 2018 State Budget, and until the end of the year we continue to strive for more optimal production," said Head of SKK Migas Program and Communication Division Wisnu Prabawa Taher.

He explained, the lifting performance was influenced by the performance of new wells that had not matched expectations. In addition, the rate of decline in production (decline rate) from the existing well is getting bigger. Next, there are several operating and instrument constraints, but they have been overcome.

"Then there are a number of development programs that have retreated to 2019," he said.

Drilling wells development and workover of wells are also still below the target. SKK Migas noted that drilling of 251 wells had been carried out from the target of 289 wells. Furthermore, re-work activities were realized as many as 554 wells from the target of 636 wells.

"We continue to strive for maximum achievement," Wisnu said.

Nevertheless, the realization of state revenues from the oil and gas sector actually exceeds the target. This year, state revenues from the oil and gas sector are targeted at the state budget of US $ 11.9 billion. However, the realization of this state revenue is projected to be higher, reaching US $ 16.1 billion.

"The total state revenue realization reached US $ 15.9 billion, 133% of the state budget target," Wisnu said.

Realization of cost recovery costs also exceeded the target Until last November, realization of cost recovery was recorded at US $ 10.9 billion. While the allocation in the State Budget/APBN is set at US $ 10.2 billion. Previously, Wisnu had revealed, related to the achievement of oil and gas revenues, mainly due to the increase in crude oil prices. However, this is also due to the efficiency and optimization of operating costs carried out by the cooperation contract contractors (KKKS), so that profit margins become better.

Referring to the data from the Ministry of Energy and Mineral Resources (ESDM), in the January-April period, the price of Indonesian Crude Price (ICP) was still recorded at around US $ 61-67 per barrel. Furthermore, ICP rose to US $ 72.46 per barrel in May. After that, ICP fell around US $ 70 per barrel, returning to US $ 69.36 per barrel in August, US $ 74.88 per bareL in September, and US $ 77.56 per barrel in October. However, ICP fell again in November to US $ 62.98 per barrel.

Project Operates

Wisnu added, until last November, there were five oil and gas projects operating. Some projects include the development of Block A by PT Medco E & P Malaka with an estimated peak production of 3,100 bph, the SP Project by PT Pertamina Hulu Energi Offshore North West Java (ONWJ), which produces 30 million cubic feet per day / mmscfd of gas, and the construction of a collection station at Bunyu Field in Bunyu Island, North Kalimantan by PT Pertamina EP.

"Throughout 2018, six upstream oil and gas projects will be realized (operating) with a total investment of US $ 346 million and can contribute additional production during the peak period of a total of 34 thousand boepd," Wisnu said.

Rimau Block, South Sumatra

According to him, there is still one more project that will operate at the end of this year, namely the Lica production facility in Rimau Block, South Sumatra. The project undertaken by PT Medco E & P Indonesia has an estimated peak production of 3,700 bpd.

IN INDONESIAN

Per November, Lifting Migas Baru 1,91 Juta BOEPD    

Satuan kerja Khusus Pelaksana Kegiatan Usaha Hulu MIinyak dan Gas Bumi (SKK Migas) menyatakan lifting minyak dan gas (migas) sampai akhir bulan lalu tercatat sebesar 1,91 juta barel setara minyak per hari (barrel  Oil  Equivalent per day/boepd). Realisasi ini masih 95,5% dari target lifting  minyak tahun ini yang ditetapkan dalam APBN sebesar 2 juta boepd.

Menurut data SKK Migas, baik lifting minyak maupun gas hingga November lalu masih di bawah target. Lifting minyak tercatat hanya sebesar 762 ribu barel per hari (bph) atau 95,25% dari target APBN 800 ribu bph. Berikutnya, realisasi lifting gas sebesar 1,14 juta boepd, hanya mencapai 95% dari target yang ditetapkan 1,2 juta boepd.

“Capaian tersebut mencapai 95% dari APBN 2018, dan hingga akhir tahun kami tetap upayakan produksi bisa lebih maksimal,” kata Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher.

Dia menjelaskan, performa lifting tersebut dipengaruhi oleh kinerja sumur baru yang belum sesuai ekspektasi. Selain itu, laju penurunan produksi (decline rate) dari sumur eksisting semakin besar. Berikutnya, ada beberapa kendala operasi dan instrumen, namun sudah dapat diatasi. 

“Kemudian ada beberapa program pengembangan yang mundur ke 2019,” ujarnya.

Kegiatan pengeboran sumur pengembangan dan kerja ulang (workover) sumur juga masih di bawah target. SKK Migas mencatat telah dilakukan pengeboran pengembangan 251 sumur dari target 289 sumur. Selanjutnya, kegiatan kerja ulang yang direalisasikan sebanyak 554 sumur dari target 636 sumur. 

“Secara kontinyu kami tetap mengupayakan pencapaian bisa maksimal,” tutur Wisnu.

Meski demikian, realisasi penerimaan negara dari sektor migas justru melebihi target. Pada tahun ini, penerimaan negara dari sektor migas ditargetkan dalam APBN sebesar US$ 11,9 miliar. Namun, realisasi penerimaan negara ini diproyeksikan lebih tinggi, yakni mencapai US$ 16,1 miliar.

“Realisasi penerimaan negara secara total mencapai US$ 15,9 miliar, 133% dari target APBN,” ujar Wisnu.

Realisasi biaya investasi yang dapat dikembalikan (cost recovery) juga melebihi target Sampai November lalu, realisasi cost recovery tercatat sebesar US$ 10,9 miliar. Sementara alokasi dalam APBN ditetapkan sebesar US$ 10,2 miliar. Sebelumnya, Wisnu sempat mengungkapkan, terkait capaian penerimaan migas, utamanya memang disebabkan oleh kenaikan harga minyak mentah. Namun, hal ini juga lantaran adanya efisiensi serta optimalisasi biaya operasi yang dilakukan kontraktor kontrak kerja sama (KKKS), sehingga marjin labanya menjadi lebih bagus.

Mengacu data Kementerian Energi dan Sumber Daya Mineral (ESDM), pada periode Januari-April lalu, harga minyak mentah Indonesia (Indonesian Crude Price/ICP) tercatat masih bertahan di kisaran US$ 61-67 per barel. Selanjutnya, ICP meningkat naik menjadi US$ 72,46 per barel pada Mei. Setelah itu, ICP turun di kisaran US$ 70 per barel, kembali menjadi US$ 69,36 per barel di Agustus lalu, US$ 74,88 per bareL di September, dan US$ 77,56 per barel di Oktober. Namun, ICP kembali turun di November lalu menjadi US$ 62,98 per barel.

Proyek Beroperasi

Wisnu menambahkan, hingga November lalu, tercatat terdapat lima proyek migas yang telah beroperasi. Beberapa proyek diantaranya yakni pengembangan Blok A oleh PT Medco E&P Malaka dengan estimasi produksi puncak 3.100 bph, Proyek SP oleh PT Pertamina Hulu Energi Offshore North West Java (ONWJ) yang menghasilkan gas 30 juta kaki kubik per hari (million standard cubic feet per day/mmscfd), serta pembangunan stasiun pengumpul di Lapangan Bunyu DI Bunyu Island Kalimantan Utara oleh PT Pertamina EP.

“Sepanjang 2018 dapat terealisasi enam proyek hulu migas onstream (beroperasi) dengan total investasi US$ 346 juta serta dapat memberikan kontribusi tambahan produksi pada masa puncak total 34 ribu boepd,” tutur Wisnu.

Menurutnya, masih ada satu proyek lagi yang akan beroperasi di akhir tahun ini, yakni fasilitas produksi Lica di Blok Rimau, Sumatera Selatan. Proyek yang dikerjakan oleh PT Medco E&P Indonesia ini memiliki estimasi produksi puncak sebesar 3.700 bph.

Investor Daily, Page-9, Friday, Dec 14, 2018

Pertamina EP prepares an investment of US $ 570 million

PT Pertamina EP continues to desire to increase oil and gas production next year. To boost production, this subsidiary of PT Pertamina (Persero) allocated an investment of US $ 570 million in 2019.

Nanang Abdul Manaf, Managing Director of PT Pertamina EP, said that the investment fund will be used for exploration drilling activities, development drilling, enhance oil recovery (EOR) projects, oil development projects, increased reliability of production facilities and health, safety, environment (HSE) throughout Pertamina EP field.

With such an investment value, Nanang expects Pertamina EP oil production to reach 82,500 bopd next year. Gas production is targeted to reach 970 mmscfd. Until the end of this year, Nanang projected Pertamina EP oil production could reach 79,000 bopd or 96% of the target. While gas production is expected to reach 1,019 mmscfd or 103% of the target.

Assuming this year's target, Pertamina EP's oil production next year will increase by 3,500 bopd. Nanang said that the increase in production would come from the new Pertamina EP project.

"The increase in oil from new projects like Jati Asih, Big Bamboo, and Akasia Bagus. All of them are located in West Java," Nanang said.

Exploration Well

This year, Pertamina EP did find new sources of oil and condensate reserves in the West Java area. One of them is by drilling the Acacia Advanced exploration well ~ 001 '(AMJ-001).

The AMJ-001 well began to be plowed or excavated on March 20, 2018 and completed on August 20, 2018. The well was drilled to a depth of 2,517 meters. One of the production tests from the well turned out to be able to drain oil up to 1,700 BOPD. The other production test results flow gas and condensate.

On the other hand, Pertamina EP's gas production in the next year actually declined. Nanang said the decline in gas production occurred because there was a decline in production from Musi Field in South Sumatra.

"Gas production has declined because the supply from the Musi field has dropped by around 40 mmscfd. While there has been no additional supply from the new field," Nanang said.

For oil and gas lifting until the end of this year, Pertamina EP projects to reach 78,120 bopd or 98% of the target. The gas lifting is 815 mmscfd or 105% of the 2018 target.

IN INDONESIAN

Pertamina EP Menyiapkan Investasi US$ 570 Juta

PT Pertamina EP terus berhasrat meningkatkan produksi minyak dan gas pada tahun depan. Untuk menggenjot produksi, anak usaha PT Pertamina (Persero) ini mengalokasikan investasi sebesar US$ 570 juta pada 2019.

Direktur Utama PT Pertamina EP Nanang Abdul Manaf, mengemukakan dana investasi itu akan digunakan untuk aktivitas pengeboran eksplorasi, pengeboran pengembangan, proyek enhance oil recovery (EOR), proyek pengembangan minyak, peningkatan keandalan fasilitas produksi serta health, safety, environment (HSE) di seluruh lapangan Pertamina EP.

Dengan nilai investasi sebesar itu, Nanang mengharapkan produksi minyak Pertamina EP bisa mencapai 82.500 bopd pada tahun depan. Adapun produksi gas ditargetkan mencapai 970 mmscfd. Hingga akhir tahun ini, Nanang memproyeksikan produksi minyak Pertamina EP bisa mencapai 79.000 bopd atau sebesar 96% dari target. Sedangkan produksi gas diharapkan bisa mencapai 1.019 mmscfd atau sebesar 103% dari target.

Dengan asumsi target tahun ini, berarti produksi minyak Pertamina EP pada tahun depan meningkat sebesar 3.500 bopd. Nanang menyebutkan, kenaikan produksi tersebut akan berasal dari proyek baru Pertamina EP. 

"Kenaikan minyak dari proyek-proyek baru seperti Jati Asih, Bambu Besar, dan Akasia Bagus. Semuanya berlokasi di Jawa Barat," kata Nanang.

Pada tahun ini, Pertamina EP memang menemukan sumber cadangan migas dan kondensat baru di area Jawa Barat. Salah satunya melalui pengeboran sumur eksplorasi Akasia Maju ~ 001 '(AMJ-001).

Sumur AMJ-001 mulai ditajak atau digali pada 20 Maret 2018 dan selesai pada 20 Agustus 2018. Sumur tersebut dibor hingga mencapai kedalaman 2.517 meter. Salah satu uji produksi dari sumur tersebut ternyata mampu mengalirkan minyak hingga 1.700 BOPD. Adapun hasil uji produksi lainnya mengalirkan gas dan kondensat.

Di sisi lain, produksi gas Pertamina EP pada tahun depan justru mengalami penurunan. Nanang menyatakan penurunan produksi gas terjadi lantaran ada penurunan produksi dari Lapangan Musi di Sumatra Selatan. 

"Produksi gas menurun karena suplai dari lapangan Musi turun sekitar 40 mmscfd. Sementara belum ada tambahan suplai dari lapangan baru," kata 

Nanang.

Untuk lifting migas hingga akhir tahun ini, Pertamina EP memproyeksikan mencapai 78.120 bopd atau sebesar 98% dari target. Adapun lifting gas sebesar 815 mmscfd atau 105% dari target 2018.

Kontan, Page-14, Friday, Dec 14, 2018

Oil and Gas Lifting Still Below Target

The realization of oil and gas production this year is still below the target. As of November 2018, the realization of oil and gas lifting has only reached 1.91 million barrels of Oil equivalent per day (BOEPD). This figure is equivalent to 95% of the target in the 2018 State Budget (APBN). The oil and gas lifting includes 762,000 BOPD of oil and 1.14 million BOEPD of natural gas.

SKK Migas Head of Program and Communication, Wisnu Prabawa Taher stated that the achievement of oil and gas lifting up to November 2018 was influenced by the performance of new wells which had not matched expectations. There is a decline rate from the older wells that are getting bigger. In fact, according to SKK Migas, there are a number of obstacles operational and instruments that have recently been overcome. There are also a number of oil and gas development programs that have retreated to 2019.

"Until the end of this year, we continue to strive for more optimal oil and gas production," Wisnu said.

To improve the development of upstream oil and gas fields and maintain production optimally, in November SKK Migas has drilled 251 wells from the target of 289 wells; Then the workover program for 554 wells from the target of 636 wells.

"We continue to strive for maximum achievement," Wisnu said.

One way to achieve the lifting target this year is to increase the production of new upstream oil and gas. So far, SKK Migas has noted that there are five upstream oil and gas projects that are already onstream, namely Block A in Aceh, SP in ONWJ, and the most recent is the construction of the Gathering Station at Pertamina EP Bunyu field at Bunyu Island, North Kalimantan.

Towards the end of this year, Wisnu claims there will be an onstream project, namely the Lica production facility in South Sumatra, so that it is estimated that throughout 2018 six on-stream upstream oil and gas projects can be realized with a total estimated investment of US $ 346 million. The project can contribute additional production during its peak period of 34,000 BOEPD.

In addition to oil and gas lifting, SKK Migas noted the realization of cost recovery until November worth US $ 10.9 billion. The realization of state revenues reached US $ 15.9 billion or 133% of the state budget target.

IN INDONESIAN

Lifting Migas Masih di Bawah Target

Realisasi produksi minyak dan gas bumi (migas) tahun ini masih di bawah target. Hingga November 2018, realisasi lifting migas baru mencapai 1,91 juta barrel Oil equivalent per day (BOEPD). Angka itu setara 95% dari target dalam Anggaran Pendapatan dan Belanja Negara (APBN) 2018. Lifting migas itu meliputi minyak bumi 762.000 BOPD dan gas bumi 1,14 juta BOEPD. 

Kepala Program dan Komunikasi SKK Migas, Wisnu Prabawa Taher mengemukakan, pencapaian lifting migas hingga November 2018 dipengaruhi kinerja sumur baru yang belum sesuai ekspektasi. Ada decline rate dari sumur lama yang semakin besar. Bahkan, menurut SKK Migas, ada sejumlah kendala operasional dan instrumen yang belakangan ini sudah dapat diatasi. Ada pula beberapa program pengembangan migas yang mundur menjadi tahun 2019. 

"Hingga akhir tahun ini, kami tetap mengupayakan produksi migas bisa lebih maksimal," kata Wisnu.

Untuk meningkatkan pengembangan lapangan hulu migas dan menjaga produksi secara optimal, pada November lalu SKK Migas telah melakukan pengeboran pengembangan sebanyak 251 sumur dari target 289 sumur; Kemudian program kerja ulang (workover) terhadap 554 sumur dari target 636 sumur.

"Secara continue kami tetap mengupayakan pencapaian bisa maksimal," ujar Wisnu.

Salah satu cara untuk mencapai target lifting pada tahun ini adalah meningkatkan produksi baru hulu migas. Sejauh ini SKK Migas mencatat terdapat lima proyek hulu migas yang sudah onstream, yakni Blok A di Aceh, SP di ONWJ, dan yang paling mutakhir adalah pembangunan Gathering Station di Pertamina EP lapangan Bunyu.

Menjelang akhir tahun ini, Wisnu mengklaim akan ada satu proyek yang onstream yaitu fasilitas produksi Lica di Sumatera Selatan, sehingga diperkirakan sepanjang tahun 2018 dapat terealisasi enam proyek hulu migas yang on-stream dengan total estimasi investasi mencapai US$ 346 juta. Proyek tersebut dapat memberikan kontribusi tambahan produksi pada masa puncaknya sebesar 34.000 BOEPD.

Selain lifting migas, SKK Migas mencatat realisasi cost recovery hingga November senilai US$ 10,9 miliar. Adapun realisasi penerimaan negara mencapai US$ 15,9 miliar atau 133% dari target APBN.

Kontan, Page-14, Friday, Dec 14, 2018

Lifting Oil and Gas Reaches 95% of Target

Production ready to sell national oil and gas is 1.91 million barrels of oil equivalent per day (BOEPD) or reaches 95% of the 2018 state budget target. On the other hand, production is ready to sell (lifting) oil at 762,000 barrels per day (bpd), and natural gas 1.14 million BOEPD.

Spokesperson for the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Wisnu Prabawa Taher hopes that until the end of the year oil and gas production can be maximized. Regarding production performance, he said that the influence of new well performance was not in line with expectations, coupled with the decline in the rate of existing wells that were getting bigger.

There are several operating and instrument constraints but they can be overcome. Then there are several development programs that are retreating to next year, "he said.

In order to develop the upstream oil and gas field and maintain production optimization, he added, SKK Migas said that it had drilled the development of 251 wells and targeted 289 wells. Meanwhile, the work program for the S54 wells is reset or from the target of 636 wells. Gradually, Wisnu stated that his party still strives to achieve maximum results.

Reflecting on the investment realization up to 31 October 2018 worth US $ 8.7 billion or 61% of this year's target, SKK Migas said that there is not much potential for the future.

According to him, one of the causes of the low realization of oil and gas investment in 2018 was because the exploration and exploitation drilling was canceled. However, he considered the realization would be done next year. Although not the only inhibiting factor, Wisnu stated, the drilling shift has a significant impact. In the future, SKK Migas claims that it will be more committed to guarding the realization of exploration.

the Gajah Puteri Bison Iguana Block

In 2019, the main upstream oil and gas project which was planned to produce only came from the Gajah Puteri Bison Iguana Block. Production from the oil and gas field located in Riau Islands will be carried out in the third / 2019 quarter.

Tangguh Train-3 Block Papua

If next year oil and gas investment is relatively stagnant, he assessed, the investment plan in 2020 will be more attractive. The reason is that there are four oil and gas blocks that will start production. He explained, the Badik and West Badik Blocks will operate in the third quarter of 2020 which is now in the development of the FEED tender, Tangguh Train-3 Block (quarter III / 2020) which is in the construction phase, Wasambo Block (quarter IV / 2020) in the FEED process, and the MDA and MBH Blocks for HCML working areas which are planned to produce in the third quarter of 2020.

the MDA and MBH Blocks by HCML

In terms of state revenues, Wisnu said that until November 2018 at least the realization reached US $ 15.9 billion or 133% of the state budget target. According to him, the figure can change until it is waiting for realization until the end of the year. With the increase in world oil prices, he projects there is a potential for increased state revenues.

In terms of cost recovery realization until the end of November this year, Wisnu stated that it had reached US $ 10.9 billion or had exceeded the target of the 2018 State Budget (APBN) of US $ 10.1 billion.

"That's an unaudited number," he said.

Previously, SKK Migas projected the realization of the return on operating costs to reach US $ 11.7 billion or 112% of the 2018 State Budget target. SKK Migas has a strategy so that the return on operating costs can be in line with the APBN target, especially in the 2019 Draft State Budget.

Wisnu added that his party would see the details of the compensation component by using cost benchmarking, so that the estimated cost in 2019 could be obtained which was more accurate and economical. In addition, the use of shared assets can be more optimal in operating costs.

"Optimizing time in carrying out activities in the field, especially in drilling activities, reworking wells and maintenance," he added.

PERTAMINA EP

On the other hand, President Director of PT Pertamina EP Nanang Abdul Manaf projects oil production by the end of the year to reach 79,000 barrels per day (bpd) or 96% of the 2018 target, while gas production will be realized at 1,019 MMSCFD or 103% of the 2018 target.

According to him, oil production did not reach the target due to finalization of drilling for wells this year is still ongoing and cannot yet produce

.

"Because the wells targeted are finished 90, the realization is still 74 and 14 are still on going," he said.

Oil lifiting was recorded at 78,120 bpd or 98% of this year's target. Gas lifting is recorded at 815 MMSCFD or 105% of this year's target. From the prognosis to the end of the year, Nanang said the realization of the achievement of profit could exceed the target.

"Because it is helped by oil prices above the previous forecast," he said.

Pendopo Field Plaju-Palembang

Obstacles meet the target due to non-fulfillment of drilling, covered with the performance of several fields managed by Pertamina EP such as the performance of Pendopo Field. As one of the production backbone in Pertamina EP, He explained Pendopo Field contributed gas amounting to 261.04 MMSCFD or 110.2% of the 243.16 MMSCFD target.

IN INDONESIAN

Lifting Migas Capai 95% dari Target

Produksi siap jual minyak dan gas nasional tercatat 1,91 juta barrel oil equivalent per day (BOEPD) atau mencapai 95% dari target APBN 2018. Di sisi lain, produksi siap jual (lifting) minyak bumi sebesar 762.000 barel per hari (bph), dan gas bumi 1,14 juta BOEPD.

Juru Bicara Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Wisnu Prabawa Taher berharap hingga akhir tahun produksi migas dapat lebih maksimal. Terkait dengan performa produksi, dia mengatakan bahwa pengaruh kinerja sumur yang baru belum sesuai dengan ekspektasi, ditambah dengan decline rate dari sumur eksis yang semakin besar.

Ada beberapa kendala operasi dan instrumen namun sudah dapat diatasi. Kemudian ada beberapa program pengembangan yang mundur ke tahun depan,” katanya.

Dalam rangka mengembangkan lapangan hulu migas dan menjaga optimasi produksi, imbuhnya, SKK Migas menyatakan telah melakukan pengeboran pengembangan 251 sumur dan target 289 sumur. Sementara itu, program kerja ulang atau workouer S54 sumur dari target 636 sumur. Secara bertahap, Wisnu menyatakan pihaknya tetap mengupayakan pencapaian bisa maksimal.

Berkaca dari realisasi investasi hingga 31 Oktober 2018 senilai US$ 8,7 miliar atau 61% dari target tahun ini, SKK Migas menyebutkan potensi ke depan tidak banyak perubahan.

Menurutnya, salah satu penyebab rendahnya realisasi investasi migas pada 2018 karena pergesaran pengeboran ekplorasi dan eksploitasi yang batal dilaksanakan. Namun, dia menilai realisasinya akan dilakukan tahun depan. Walaupun bukan satu-satunya faktor penghambat, Wisnu menyatakan,

pergeseran pengeboran berdampak signifikan. Pada masa mendatang, SKK Migas mengaku akan lebih berkomitmen untuk mengawal realiasi ekplorasi.

Pada 2019, proyek utama hulu migas yang rencananya berproduksi hanya datang dari Blok Bison Iguana Gajah Puteri. Produksi dari lapangan migas yang terletak di Kepulauan Riau ini akan dilaksanakan pada kuartal III/2019.

Apabila pada tahun depan investasi migas relatif stagnan, dia menilai, rencana penanaman modal pada 2020 akan lebih menarik. Alasannya, ada empat blok migas yang akan mulai berproduksi. Dia memaparkan, Blok Badik dan West Badik akan beroperasi kuartal III/2020 yang kini dalam perkembangan tender FEED, Blok Tangguh Train-3 (kuartal III/2020) yang berada pada tahap konstruksi, Blok Wasambo (kuartal IV/2020) dalam proses FEED, serta Blok MDA dan MBH wilayah kerja HCML yang rencananya berproduksi pada kuartal III/2020. 

Dari sisi penerimaan negara, Wisnu mengatakan hingga November 2018 setidaknya realisasinya mencapai US$ 15,9 miliar atau 133% dari target APBN. Menurutnya, angka tersebut dapat berubah sampai menunggu realisasi hingga akhir tahun. Dengan meningkatnya harga minyak dunia, dia memproyeksikan ada potensi peningkatan penerimaan negara.

Dari sisi realisasi cost recovery hingga akhir November tahun ini, Wisnu menyatakan telah mencapai US$ 10,9 miliar atau sudah melebihi target Anggaran Pendapatan dan Belanja Negara (APBN) 2018 sebesar US$10,1 miliar. 

“Itu angka unaudited," katanya.

Sebelumnya, SKK Migas memproyeksi realisasi pengembalian biaya operasi akan mencapai US$ 11,7 miliar atau 112% dari target APBN 2018. SKK Migas memiliki strategi agar pengembalian biaya operasi bisa sesuai dengan target APBN, khususnya dalam Rancangan APBN 2019.

Wisnu menambahkan pihaknya akan melihat detail kompenen biaya dengan penggunaan cost benchmarking, sehingga dapat diperoleh estimasi biaya pada 2019 yang lebih akurat dan ekonomis. Selain itu, pemanfaatan aset bersama bisa lebih optimal dalam biaya operasi.

"Optimalisasi waktu dalam pelaksanaan kegiatan di lapangan, terutama dalam kegiatan pemboran, kerja ulang sumur dan maintanance,” tambahnya.

PERTAMINA EP

Di pihak lain, Presiden Direktur PT Pertamina EP Nanang Abdul Manaf memproyeksikan produksi minyak hingga akhir tahun mencapai 79.000 barel per hari (bph) atau 96% dari target 2018, sedangkan produksi gas akan terealisasi sebesar 1.019 MMSCFD atau 103% dari target 2018.

Menurutnya, produksi minyak tidak mencapai target akibat finalisasi pengeboran sumur tahun ini masih berlangsung dan belum dapat berproduksi

.

“Karena sumur yang ditargetkan selesai 90, realisasinya masih 74 dan 14 masih on going,” katanya.

Untuk lifiting minyak tercatat sebesar 78.120 bph atau 98% dari target tahun ini. Untuk lifting gas tercatat 815 MMSCFD atau 105% dari target tahun ini. Dari prognosa hingga akhir tahun, Nanang menyatakan realisasi pencapaian laba dapat melebihi target. 

“Karena dibantu harga minyak di atas forecast sebelumnya" katanya.

Hambatan memenuhi target akibat tidak terpenuhinya pengeboran, tertutupi dengan kinerja beberapa lapangan yang dikelola Pertamina EP seperti kinerja dari Pendopo Field. Sebagai salah satu backbone produksi di Pertamina EP, Dia menjelaskan Pendopo Field memberikan kontribusi gas sebesar 261,04 MMSCFD atau 110,2% dari target 243,16 MMSCFD. 

Bisnis Indonesia, Page-24, Friday, Dec 14, 2018

Gas Region Auction 2019

The Downstream Oil and Gas Regulatory Agency or BPH Migas will open a Gas Pipeline Distribution Area (GPDA/WJD) auction in April 2019. BPH Migas Jugi Prajogio Committee members explain the area to be auctioned into the distribution network area of ​​West Java, East Java, Central Java, and North Sumatra.

"We have pre-auctioned two weeks ago in Bekasi, West Java. Of the 34 business entities in Indonesia, as many as 13 business entities have expressed interest before pre-auction, "he explained on the sidelines of an event entitled Socialization of Joint Supervision of Handling Transportation and Commercial Business Activities of Natural Gas through Pipes.

He explained that this auction is a follow-up to the Minister of Energy and Mineral Resources (ESDM) Regulation Number 4 of 2018 concerning the Exploitation of Natural Gas in Downstream Oil and Gas (Oil and Gas) Activities.

In this regulation, WJD is a certain area of ​​the natural gas distribution network which is part of the Master Plan of the National Natural Gas Transmission and Distribution Network to carry out natural gas transportation business activities through distribution pipes.

The determination of WJD is based on the administrative area of ​​the district / city that is ready to be auctioned into WJD because of the availability of pipeline infrastructure, gas allocation, and also consumers to their financial capabilities.

"Right now business entities are competing to submit proposals including preparing a [FS] feasibility study.

God willing, if there is no obstacle in April or May next year we open an auction because to make FS takes 3-4 months, "Jugi explained.

He explained, the potential that can be owned by the business entity that won the auction was being able to carry out oil and gas transportation and commercial activities calmly without any interference. BPH Migas will provide commercial concessions for 15 years for the existing region and 30 years for new areas for WJD auction winners in Certain Trade Areas (CTA/WNT).

"So now it is still free competition, but we will manage it in the future. A business entity will control a certain area. So they will be calm for 15 years or 30 years, no one is disturbing, "he explained.

Based on data from the East Java ESDM Office, the East Java region has large oil and gas potential, namely 12 exploration blocks and 18 exploitation blocks of which 5 are worked on by Pertamina EP contractors.

In 2017, oil production recorded in East Java reached 89.6 million barrels per day (barrels of oil per day / BOPD) or increased compared to 2016 which was only 77.3 million BOPD. The gas production in 2017 was 255,580 Standard standard cubic feet (mmscf), a slight decrease compared to 2016 which reached 257,822 mmscf.

Meanwhile, fuel consumption, both oil, gas, coal and renewable energy in East Java in 2018 reached 132 million barrels of oil equivalent (BOE). This number increased compared to consumption in 2017, namely 125 million BOE, and 2016 only 119 million BOE.

SUPERVISION

In the socialization activities in Surabaya, BPH Migas will carry out an MOU with the East Java Regional Police to anticipate violations or crimes in the distribution of oil and gas in East Java. Jugi revealed, from 34 oil and gas business entities in Indonesia, there were at least 3-5 business entities that often violated. The violation that has occurred so far is to avoid paying contributions by reason of forgetting to take notes.

"In our opinion, they intentionally avoid avoiding late payments and interest. We usually talk to the first stage and coaching first as an administrative sanction, "he explained.

Jugi explained that in East Java there are three fields in the oil and gas business, namely transmission pipes, distribution pipes and city gas networks. Of the three fields that often violate the administration are distribution pipes, while the city gas network has not been found to be a potential violation. So far, he continued, there has been no hardest violation, such as selling gas to a particular industry at a higher price.

IN INDONESIAN

Wilayah Gas Dilelang 2019

Badan Pengatur Hilir Minyak dan Gas Bumi atau BPH Migas akan membuka lelang wilayah jaringan distribusi (WJD) gas pipa pada April 2019. Anggota Komite BPH Migas Jugi Prajogio menjelaskan daerah yang akan dilelang menjadi wilayah jaringan distribusi adalah Jawa Barat, Jawa Timur, Jawa Tengah, dan Sumatra Utara.

“Kami sudah melakukan pra-lelang pada 2 minggu lalu di Bekasi Jawa Barat. Dari 34 badan usaha yang ada di Indonesia, sebanyak 13 badan usaha sudah menyatakan minat pada saat sebelum pra-lelang,” jelasnya di sela-sela acara bertajuk Sosialisasi Pengawasan Bersama Penanganan Kegiatan Usaha Pengangkutan dan Niaga Gas Bumi Melalui Pipa.

Dia menjelaskan lelang ini merupakan tindak lanjut dari Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) Nomor 4 Tahun 2018 lentang Pengusahaan Gas Bumi Pada Kegiatan Hilir Minyak dan Gas Bumi (migas).

Dalam aturan itu, WJD adalah wilayah tertentu dari jaringan distribusi gas bumi yang merupakan bagian dari Rencana Induk Jaringan Transmisi dan Distribusi Gas Bumi Nasional untuk melaksanakan kegiatan usaha pengangkutan gas bumi melalui pipa distribusi.

Penentuan WJD tersebut didasarkan pada wilayah administrasi kabupaten/kota yang siap untuk dilelang menjadi WJD karena sudah tersedianya infrastruktur pipa, alokasi gas, dan juga konsumen hingga kemampuan finansialnya.

“Sekarang ini para badan usaha berlomba-lomba untuk mengajukan usulan termasuk menyiapkan feasibdity study [FS].

InsyaAllah kalau tidak ada halangan pada April atau Mei tahun depan kami buka lelang karena untuk membuat FS perlu waktu 3-4 bulan," jelas Jugi.

Dia menerangkan, potensi yang bisa dimiliki badan usaha yang memenangkan lelang tersebut yakni bisa melakukan kegiatan angkutan dan niaga migas dengan tenang tanpa ada gangguan. Adapun BPH Migas akan memberi konsesi niaga selama 15 tahun untuk wilayah existing dan 30 tahun untuk daerah baru bagi pemenang lelang WJD pada wilayah niaga tertentu (WNT).

“Jadi sekarang ini sifatnya masih free competition, tetapi ke depan akan kita atur. Satu badan usaha akan mengontrol daerah tertentu. Jadi mereka akan tenang selama 15 tahun atau 30 tahun tidak ada yang mengganggu,” jelasnya.

Berdasarkan data Dinas ESDM Jatim, di wilayah Jatim memiliki potensi migas yang besar, yakni terdapat 12 blok eksplorasi dan 18 blok eksploitasi yang 5 di antaranya digarap oleh kontraktor Pertamina EP.

Pada 2017, tercatat produksi minyak di Jatim mencapai 89,6 juta barel per hari (barrels of oil per day/BOPD) atau meningkat dibandingkan 2016 yang hanya 77,3 juta BOPD. Adapun produksi gas pada 2017 yakni 255.580 Standart standard cubic feet (mmscf), sedikit menurun jika dibandingkan dengan 2016 yang mencapai 257.822 mmscf.

Sementara itu, konsumsi bahan bakar, baik minyak, gas, batu bara dan energi terbarukan di Jatim pada 2018 mencapai 132 juta barrels oil equivalent (BOE). Jumlah tersebut meningkat dibandingkan konsumsi 2017 yakni 125 juta BOE, dan 2016 hanya 119 juta BOE.

PENGAWASAN

Dalam kegiatan sosialisasi di Surabaya itu, BPH Migas akan melakukan MOU dengan Polda Jatim untuk mengantisipasi adanya pelanggaran atau kejahatan dalam distribusi migas di Jatim. Jugi mengungkapkan, dari 34 badan usaha migas di Indonesia, sedikitnya ada 3-5 badan usaha yang sering melanggar. Pelanggaran yang selama ini terjadi adalah menghindar dari pembayaran iuran dengan alasan lupa mencatat.

“Menurut kami memang mereka sengaja menghindar agar tidak membayar keterlambatan dan bunga. Biasanya tahap awal kami ajak bicara dan coaching dulu sebagai sanksi administratif,” jelasnya.

Jugi memaparkan di Jatim ada tiga bidang dalam usaha migas yakni pipa transmisi, pipa distribusi dan jaringan gas kota. Dari ketiga bidang tersebut yang kerap melanggar administrasi adalah pipa distribusi, sedangkan jaringan gas kota belum ditemukan potensi pelanggaran. Sejauh ini, lanjutnya, belum ada pelanggaran yang terberat seperti menjual gas kepada satu industri tertentu dengan harga yang lebih tinggi.

Bisnis Indonesia, Page-9, Friday, Dec 14, 2018

The Gross Split Scheme Attracts Investors

The Ministry of Energy and Mineral Resources (ESDM) said that the gross split scheme is still attractive to investors. This was marked by the signing of the Sengkang and East Sepinggan work area contracts (WK) which used the gross split scheme from the beginning with the cost recovery scheme.

"This is one proof that investors or contract contractors (KKKS) regard gross split as attractive and profitable," said ESDM Deputy Minister Arcandra Tahar to the press after witnessing the signing of the Sengkang and East Sepinggan WK contracts, at the Ministry Office ESDM, Jakarta.

Arcandra said that until now more than 30 KKKS have used gross split schemes to run their businesses.

ENI Italy

"Italian companies and Pertamina have moved from cost recovery to gross split. Gross split makes the process simpler and more effective, "explained Arcandra.

He continued, although from the perspective of the government the gross split scheme was very attractive, the government remained open to input from contractors.

Arcandra Tahar

"The government accepts all inputs and criticisms of the gross split concept," said Arcandra.

ESDM Ministry Director General of Oil and Gas Djoko Siswanto said that the Sengkang WK ​​profit sharing contract is an extension contract with 100% of the holders of Energy Equity Epic (Sengkang) Pty Ltd participation. The Sengkang WK ​​profit sharing contract will be valid for 20 years, effective from October 24, 2022.

Energy Equity Epic (Sengkang) Pty Ltd

Estimated investment value from implementing the first five-year definite work commitment (KKP) of US $ 88 million and a signature bonus of US $ 12 million. The interest participation owned by Energy Equity Epic (Sengkang) includes 10% interest participation that will be offered to regional-owned enterprises (BUMD).

Meanwhile, the East Sepinggan WK profit sharing contract was the first cost recovery scheme to be converted into a gross split schemma contract in accordance with the proposal of the contractor, one of the considerations being the effectiveness of the development of the East Sepinggan WK.

Eni East Sepinggan Limited

"The holders of the participation of WK East Sepinggan are 85% Eni East Sepinggan Limited and 15% PT Pertamina Hulu Energi East Sepinggan with Eni East Sepinggan Limited will act as operators," Djoko concluded.

IN INDONESIAN

Skema Gross Split Menarik bagi Investor

Kementerian Energi dan Summber Daya Mineral (ESDM) menyampaikan skema bagi hasil (gross split) masih menarik bagi investor. Hal tersebut ditandai dengan penandatanganan kontrak wilayah kerja (WK) Sengkang dan East Sepinggan yang menggunakan skema gross split dari semula dengan skema cost  recovery.

“Ini merupakan salah satu bukti bahwa investor atau kontraktor kontrak kerja sama (KKKS) menganggap gross split menarik serta menguntungkan,” ujar Wakil Menteri ESDM Arcandra Tahar kepada pers seusai menyaksikan penandatanganan kontrak WK Sengkang dan East Sepinggan, di Kantor Kementerian

ESDM, Jakarta. 

Arcandra menyebutkan hingga saat ini sudah 30 lebih KKKS menggunakan skema gross split untuk menjalankan bisnisnya. 

“Perusahaan Italia dan Pertamina telah pindah dari cost recovery ke gross split. Gross split membuat proses lebih simpel dan efektif,” terang Arcandra.

Dia melanjutkan meski dari perspektif pemerintah skema gross split ini sangat atraktif, pemerintah tetap terbuka terhadap masukan dari para kontraktor. 

“Pemerintah menerima semua masukan dan kritik terhadap konsep gross split,” tegas Arcandra.

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto menyampaikan kontrak bagi hasil WK Sengkang merupakan kontrak perpanjangan dengan pemegang partisipasi interes Energy Equity Epic (Sengkang) Pty Ltd sebesar 100%. Kontrak bagi hasil WK Sengkang akan berlaku untuk 20 tahun, efektif sejak 24 Oktober 2022.

Perkiraan nilai investasi dari pelaksanaan komitmen kerja pasti (KKP) lima tahun pertama sebesar US$ 88 juta dan bonus tanda tangan US$ 12 juta. Partisipasi interes yang dimiliki Energy Equity Epic (Sengkang) tersebut termasuk partisipasi interes 10% yang akan ditawarkan kepada badan usaha milik daerah (BUMD).

Sementara itu, kontrak bagi hasil WK East Sepinggan ialah kontrak skema cost recovery pertama yang beralih menjadi kontrak skemma gross split sesuai dengan usul kontraktor, yang salah satu pertimbangannya ialah efektifitas pengembangan WK East Sepinggan.

“Pemegang partisipasi interes WK East Sepinggan ialah Eni East Sepinggan Limited sebesar 85% serta PT Pertamina Hulu Energi East Sepinggan sebesar 15% dengan Eni East Sepinggan Limited akan bertindak sebagai operator,” pungkas Djoko.

Media Indonesia, Page-14, Wednesday, Dec 12, 2018