The Government Asks for Corridor Block Production Not to Decline

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif urged that oil and gas Corridor Block production be maintained or even increased. This follows that a Corridor Block (2023-2043) production cooperation contract (PSC) has been signed. 

Arifin Tasrif

     Arifin said, after the current contract expired at the Corridor Block was again managed by the existing contractor namely ConocoPhilip (Grissik) Ltd, Talisman Corridor LTd (Repsol), and PT Pertamina Hulu Energi Corridor.

ConocoPhilip

Because the government considers that the existing contractor has good technical and financial skills to continue managing this block. He hopes the existing contractor can make a positive contribution to state revenue and national oil and gas production. 

the Corridor Block

      Especially considering the Corridor Block is one of the largest natural gas producer blocks in Indonesia with gas production of 1,100 million cubic feet per day (million standard cubic feet per day / mmscfd) or 12% of total national production, and oil and condensate 6,600 barrels per day ( bph).

"With the contract extension being signed, so that [the contractor] not only maintains, but also increases the rate of oil and gas production in the Corridor Block, and seeks to discover new oil and gas reserves through exploration activities," he said in Jakarta.

Based on ESDM Ministry data, the new PSC Corridor Block will use a gross split scheme. Regarding the profit sharing (split), for base split and variable split, KKKS received a 48.5% allocation for oil and 53.5% for gas. Furthermore, progressive splits will be adjusted to developments in oil prices and cumulative oil and gas production. 

     Furthermore, the portion of participating interest rights (participating interest / PI) in the Corridor Block will also change after 2023. At present, ConocoPhilips holds a PI of 54%, Repsol 36%, and Pertamina 10%. After the existing PSC ends, ConocoPhilips has a 46% stake, Pertamina 30%, and 24% Repsol.

Repsol Girls

According to Arifin, before the contract was signed, the existing cooperation contract contractor (KKKS) had deposited a signature bonus of US $ 250 million. In addition, the contractor also promised a five-year fixed work commitment (KKP) of US $ 250 million. This number is the second largest since the signing of the contract in Indonesia.

"Hopefully with the signing of the Corridor Block gross split contract, it will hopefully arouse investors' enthusiasm for investment in Indonesia's upstream oil and gas," he said.

Referring to the Ministry of Energy and Mineral Resources data, KKKS has proposed a number of activities that will be carried out using KKP funds. In the first year, the contractor will work on drilling one well in Rowung Lower Palembang-1 worth US $ 2.4 million and 3D seismic acquisition of US $ 23.93 million. In the second year, activities that will be carried out are drilling one well in Suban Lower Palembang-1 US $ 11.6 million and 3D seismic acquisition of US $ 31.53 million.

Following this, activities planned for the third year included the work of Telisa Well with two wells valued at US $ 20 million, 3D seismic acquisition of US $ 25 million, and the development of Suban Far East at US $ 33.04 million. 

     In the fourth year, the contractor will work on Telisa Well one well worth US $ 18.04 million, another prospect of US $ 28.2 million, and 3D seismic acquisition of US $ 20 million. Finally, in the fifth year, the activities that will be carried out are the development of Suban Far East of US $ 8.26 million and other prospects of US $ 28 million.

Although still managed by the existing contractor, the holder of the Corridor Block operator will change. Currently the operator of this block is ConocoPhilips. For three years, after 19 December 2023 to 19 December 2026, ConocoPililip remained the Corridor Block operator. After that, this block will enter the operatorhip transition period, where Pertamina will then switch to the operator. 

     The government did not specify how long this transition period would be. PT Pertamina Hulu Energi Corridor (PHE Corridor) President Director Taufik Aditiyawarman said, based on current data, the Corridor Block has an area of ​​2,095.25 kilometers square (km2) which is mostly located in South Sumatra Province. Pertamina also has four active work areas in the South Sumatra area, namely Pertamina EP Asset 1, Jambi Merang PHE, Ogan Komering PHE, and Raja Tempirai PHE.

IN INDONESIA

Pemerintah Minta Produksi Blok Corridor Tidak Turun

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif mendorong agar produksi migas Blok Corridor bisa dipertahankan atau bahkan dinaikkan. Hal ini menyusul telah ditandatangani kontrak kerja sama atau (production sharing contract/PSC) Blok Corridor untuk 2023-2043. 

     Arifin menuturkan, setelah kontrak yang berlaku saat ini berakhir pada Blok Corridor kembali dikelola oleh kontraktor eksisting yakni ConocoPhilip (Grissik) Ltd, Talisman Corridor LTd (Repsol), dan PT Pertamina Hulu Energi Corridor. 

Pasalnya, pemerintah menilai bahwa kontraktor eksisting memiliki kemampuan teknis dan keuangan yang baik untuk melanjutkan pengelolan blok ini. Pihaknya berharap kontraktor eksisting dapat memberikan kontribusi positif bagi penerimaan negara dan produksi migas nasional. 

     Apalagi mengingat Blok Corridor merupakan salah satu blok produsen gas bumi terbesar di Indonesia dengan produksi gas 1.100 juta kaki kubik per hari (million standard cubic feet per day/ mmscfd) atau 12% dari total produksi nasional, dan minyak dan kondensat 6.600 barel per hari (bph).

“Dengan ditandatanganinya perpanjangan kontrak, agar [kontraktor] tidak hanya mempertahankan, tetapi juga meningkatkan laju produksi migas di Blok Corridor, dan mengupayakan penemuan cadangan migas baru melalui kegiatan eksplorasi,” kata dia di Jakarta.

Berdasarkan data Kementerian ESDM, PSC baru Blok Corridor akan menggunakan skema bagi hasil kotor (gross split). Terkait besaran bagi hasil (split), untuk base split dan variable split, KKKS memperoleh jatah 48,5% untuk minyak dan 53,5% untuk gas. 

     Selanjutnya, progressif split akan disesuaikan dengan perkembangan harga minyak dan kumulatif produksi migas. Selanjutnya, porsi kepemilikan hak partisipasi (participating interest/PI) di Blok Corridor juga akan berubah setelah 2023. Saat ini, ConocoPhilips memegang PI sebesar 54%, Repsol 36%, dan Pertamina 10%. Setelah PSC yang ada berakhir, ConocoPhilips memiliki saham 46%, Pertamina 30%, dan Repsol 24%.

Menurut Arifin, sebelum kontrak diteken, kontraktor kontrak kerja sama (KKKS) eksisting telah menyetorkan bonus tanda tangan sebesar US$ 250 juta. Selain itu, kontraktor juga menjanjikan komitmen kerja pasti (KKP) untuk lima tahun sebesar US$ 250 juta. Jumlah ini merupakan terbesar kedua sejak penandatanganan kontrak di Indonesia.

“Semoga dengan ditandatanganinya kontrak gross split Blok Corridor ini semoga semakin membangkitkan gairah investor untuk investasi di hulu migas Indonesia,” ujar dia. 

Mengacu data Kementerian ESDM, KKKS telah mengajukan sejumlah kegiatan yang akan dikerjakan menggunakan dana KKP. Pada tahun pertama, kontraktor akan menggarap pengeboran satu sumur di Dayung Lower Palembang-1 senilai US$ 2,4 juta dan akuisisi seismik 3D US$ 23,93 juta. Di tahun kedua, kegiatan yang akan dilakukan adalah pengeboran satu sumur di Suban Lower Palembang-1 US$ 11,6 juta dan akuisisi seismik 3D US$ 31,53 juta. 

Berikutanya, kegiatan yang direncanakan di tahun ketiga mencakup pengerjaan Telisa Well sebanyak dua sumur senilai US$ 20 juta, akuisisi seismik 3D US$ 25 juta, dan pengembangan Suban Far East US$ 33,04 juta. Pada tahun keempat, kontraktor akan mengerjakan Telisa Well satu sumur senilai US$ 18,04 juta, prospek lain US$ 28,2 juta, dan akuisisi seismik 3D US$ 20 juta. Terakhir, di tahun kelima, kegiatan yang akan dikerjakan adalah pengembangan Suban Far East US$ 8,26 juta dan prospek lain US$ 28 juta.

Meski tetap dikelola kontraktor eksisting, pemegang operator Blok Corridor akan berubah. Saat ini operator blok ini adalah ConocoPhilips. Selama tiga tahun, setelah 19 Desember 2023 hingga 19 Desember 2026, ConocoPhilip tetap menjadi operator Blok Corridor. 

     Setelah itu, blok ini akan memasuki masa transisi operatorship, di mana kemudian Pertamina akan beralih menjadi operator. Pemerintah tidak menentukan berapa lama masa transisi ini. 

     Direktur Utama PT Pertamina Hulu Energi Corridor (PHE Corridor) Taufik Aditiyawarman mengatakan, berdasarkan data saat ini, Blok Corridor memiliki luas 2.095,25 kilometer persegi (km2) yang sebagian besar berada di Provinsi Sumatera Selatan. Pertamina juga memiliki empat wilayah kerja aktif di area Sumatera Selatan, yaitu Pertamina EP Aset 1, PHE Jambi Merang, PHE Ogan Komering, dan PHE Raja Tempirai. 

Investor Daily, Page-9, Tuesday, Nov 12, 2019

Indonesia Starts LNG Exports to China

PT Perusahaan Gas Negara (PGN) Tbk and Sinopec signed an agreement to sell bell LNG in China for 2020. This agreement marks an important milestone for PGN to play its role globally as a sub-holding of Indonesian gas.

Sinopec

"We have reviewed the opportunity to take a role and develop the gas and LNG infrastructure along the value chain, ranging from ownership of liquefaction, regasification, ships, energy regeneration or transmission infrastructure, pipelines and city gas facilities," said PGN Syahrial's Director of Business Strategy and Development Muktar.

Syahrial said that China is a country with great potential with a variety of business opportunities that can be explored. Based on energy needs to support economic growth in China, energy imports are inevitable. 

     China needs global energy sources to fill the gap between energy production and increasing consumption. This condition is the right thing where PGN can help.

"The sale of the LNG portfolio owned by Pertamina and PGN's role as sub-holding gas. "We are very enthusiastic to build cooperation between Sinopec and PGN. Sinopec is one of the biggest energy companies in China. We believe that our goal to sign an LNG purchase agreement is the beginning of what we can collaborate going forward.

The hope is that we can explore the potential of LNG sales and further develop LNG infrastructure with this opportunity, from the terminals, small-scale, bunkers, and so on, "said Syahrial.

In mid-2019, PGN was tasked with Pertamina to manage the end-to-end LNG business in full. Starting with the initiative and development of new LNG business both domestically and globally. 

    PGN also received a mandate from the government and shareholders to manage and integrating LNG business and gas in Indonesia from midstream to downstream to achieve the most optimal value to all stakeholders.

IN INDONESIA

Indonesia Mulai Ekspor LNG ke China

PT Perusahaan Gas Negara (PGN) Tbk dan Sinopec menandatangani perjanjian jual bell LNG di China untuk tahun 2020. Perjanjian ini menandai milestone penting bagi PGN memainkan perannya secara global sebagai sub holding gas Indonesia. 

“Kami sudah meninjau kesempatan untuk mengambil peran dan mengembangkan infrastruktur gas dan LNG sepanjang rantai nilai, mulai dari kepemilikan bidang likuifaksi, regasifikasi, kapal, regenerasi energi atau transmisi infrastruktur, saluran pipa dan fasilitas gas kota,” ujar Direktur Strategi dan Pengembangan Bisnis PGN Syahrial Muktar.

Syahrial mengatakan bahwa China merupakan negara dengan potensi besar dengan beragam peluang bisnis yang bisa dijelajahi. Berdasarkan kebutuhan energi untuk mendukung pertumbuhan ekonomi di China, impor energi tidak dapat terelakkan. 

     China membutuhkan sumber energi global untuk mengisi kesenjangan antara produksi energi dengan konsumsi yang meningkat. Kondisi ini menjadi hal yang tepat di mana PGN dapat membantu.

“penjualan portofolio LNG yang dimiliki Pertamina dan menjalankan peran PGN sebagai sub holding gas. “Kami sangat antusias untuk membangun kerja sama antara Sinopec dan PGN. Sinopec adalah salah satu perusahaan energi terbesar di China. Kami percaya bahwa tujuan kita untuk menandatangangi perjanjian kerja sama jual Beli LNG merupakan awal dari apa bisa kita kolaborasikan ke depan.

Harapannya, kami bisa mengeksplorasi potensi penjualan LNG dan pengembangan infrastruktur LNG secara lebih jauh dengan kesempatan ini, dari mulai terminal, skala-skala kecil, bungker, dan sebagainya,” ungkap Syahrial.

Pada pertengahan 2019, PGN mendapat tugas dari Pertamina untuk mengelola bisnis LNG end to-end secara penuh. Di mulai dengan inisiatif dan pengembangan bisnis baru bisnis LNG baik domestik maupun global. 

     PGN juga menerima mandat dari pemerintah dan pemegang saham untuk mengelola dan mengintergrasi bisnis dan gas LNG  di Indonesia dari midstream ke downstream untuk mencapai nilai paling optimal kepada seluruh pemangku kepentingan.

Harian Bangsa, Page-4, Tuesday, Nov 12, 2019

Corridor Block Contract Signed

The Ministry of Energy and Mineral Resources (ESDM) has officially handed over management of the Corridor Block to ConocoPhillips, Peitamina and Repsol for a period of 20 years starting from December 20, 2023 with a gross split profit sharing scheme. 

     

ESDM Minister Arifin Tasrif

     ESDM Minister Arifin Tasrif said the government was trying to speed up the decision-making process for further management of the oil and gas Working Area (WK), which would end its cooperation contracts so that production could be maintained or even increased, as well as maintaining investment continuity.

"I advised the contractor not only to maintain, but also increase the rate of oil and gas production from WK Corridor, as well as to seek discovery of new oil and gas reserves through exploration activities," he said.

ConocoPhillips

The WK Corridor revenue sharing contract is an extension contract with the participating rights holder ConocoPhillips (Giissik) Ltd. by 46%, PT Pertamina Hulu Energi (PHE) Corridor 30%, and Talisman (Corridor) Ltd. by 24%. The estimated investment value from implementing the first 5 year fixed work commitment (KKP) is US $ 250 million and a signature bonus of US $ 250 million. 

     The participating rights included by the contractor include a 10% participation right that will be offered to Regionally Owned Enterprises (BUMD) in accordance with Minister of Energy and Mineral Resources Regulation No. 37/2016.

Arifin added that the WK or Corridor Block is one of the oil and gas blocks of strategic value given the amount of gas production which reached 1,100 MMScfd or equivalent to 12% of the total national natural gas production at this time. Meanwhile, oil and condensate production is around 6,600 barrels per day (bopd).

PHE President Director Corridor Taufik Aditiyawarman said there was an increase in the composition of participation rights in the cooperation contract agreement. Initially, Pertamina only had 10%. After a new management period in 2023, ConocoPhillips will remain an operator for 3 years. After that, the transition period will enter before the operator is submitted to the PHE Corridor.

Regarding the transition to operator shift, ConocoPhillips Vice President Commercial and Business Development Taufik Ahmad claimed there would be a joint operation agreement (JOA) with Pertamina after a new cooperation contract was signed. However, for a detailed discussion, the JOA conducted with Pertamina has not yet been carried out.

"Anyway, we follow it as the Minister of Energy and Mineral Resources reads the letter. What kind of mechanism, what kind of transition, we talk for 2024-2025. Now the focus is on the PSC [production sharing contract] and the rest of the contract, "he added.

the Corridor Block

ConocoPhillips projects gas production from the Corridor Block in accordance with the 2019 State Budget (APBN) target of 810 MMscfd. Based on data from the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), until the end of September, the realization of ConocoPhillips gas production reached 833 MMscfd. The realization was 2.8% higher than the target set.

IN INDONESIA

Kontrak Blok Corridor Ditandatangani

Kementerian Energi dan Sumber Daya Mineral (ESDM) resmi menyerahkan pengelolaan Blok Corridor ke ConocoPhillips, Peitamina, dan Repsol untuk jangka waktu 20 tahun mulai dari 20 Desember 2023 dengan skema bagi hasil kotor atau gross split. Menteri ESDM Arifin Tasrif mengatakan pemerintah berupaya mempercepat proses pengambilan keputusan untuk pengelolaan lanjut Wilayah Kerja (WK) migas yang akan berakhir kontrak kerja samanya agar produksi dapat dipertahankan atau bahkan ditingkatkan, serta menjaga kelangsungan investasi.

“Saya berpesan kepada kontraktor agar tidak hanya dapat mempertahankan, namun juga meningkatkan laju produksi migas dari WK Corridor, serta mengupayakan penemuan cadangan migas baru melalui kegiatan eksplorasi,” katanya.

Kontrak bagi hasil WK Corridor merupakan kontrak perpanjangan dengan pemegang hak partisipasi ConocoPhillips (Giissik) Ltd. sebesar 46%, PT Pertamina Hulu Energi (PHE) Corridor 30%, dan Talisman (Corridor) Ltd. sebesar 24%. Perkiraan nilai investasi dari pelaksanaan komitmen kerja pasti (KKP) 5 tahun pertama sebesar US$250 juta dan bonus tanda tangan senilai US$250 juta. Hak partisipasi yang oleh kontraktor tersebut termasuk hak partisipasi 10% yang akan ditawarkan kepada Badan Usaha Milik Daerah (BUMD) sesuai Peraturan Menteri ESDM Nomor 37/2016.

Arifin menambahkan WK atau Blok Corridor merupakan salah satu blok migas yang bernilai strategis mengingat besarnya produksi gas yang mencapai 1.100 MMScfd atau setara dengan 12 % dari total produksi gas bumi nasional saat ini. Adapun, produksi minyak dan kondensat sekitar 6.600 barel per hari (bopd).

Direktur Utama PHE Corridor Taufik Aditiyawarman mengatakan ada kenaikan komposisi hak partisipasi pada perjanjian kontrak kerja sama ini. Semula, pertamina hanya memiliki 10%. Setelah masa pengelolaan baru pada 2023, ConocoPhillips akan tetap menjadi operator selama 3 tahun. Setelah itu, akan masuk masa transisi sebelum operator diserahkan kepada PHE Corridor.

Terkait transisi perpindahan operator, Vice President Commercial and Business Development ConocoPhillips Taufik Ahmad mengaku akan ada kesepakatan operasi bersama (Joint Operation Agreement/JOA) dengan Pertamina setelah kontrak kerja sama baru ditandatangani. Hanya saja, untuk pembahasan rinci, JOA yang dilakukan dengan Pertamina belum dilakukan.

“Pokoknya kami ikuti seperti yang dibunyikan surat Menteri [ESDM]. Mekanisme seperti apa, transisi seperti apa, kita bicara untuk 2024-2025. Sekarang fokus ke PSC [kontrak bagi hasil] dan sisa kontrak,” tambahnya.

ConocoPhillips memproyeksikan produksi gas dari Blok Corridor sesuai dengan target Anggaran  Pendapatan dan Belanja Negara (APBN) 2019 sebanyak 810 MMscfd. Berdasarkan data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), hingga akhir September lalu, realisasi produksi gas ConocoPhillips mencapai 833 MMscfd. Realisasi tersebut 2,8% lebih tinggi dari target yang ditetapkan.

Bisnis Indonesia, Page-24, Tuesday, Nov 12, 2019

Repsol Can Extend Exploration of Andaman Block III

The Aceh Oil and Gas Management Agency (BPMA) said Repsol had obtained approval from the Ministry of Energy and Mineral Resources (ESDM) for the extension of the Andaman III Block exploration period. BPMA Deputy of Operations and Planning Teuku Muhammad Faisal said the extension was given for two years.

"The obligation to make a joint account and performance bond has been carried out, now all that remains is to prepare the drilling plan," said Faisal.

The drilling plan by Repsol will include drilling one well. Faisal said, Repsol submitted an extension request for one year, but for maximum results, BPMA recommended two years to the Ministry of Energy and Mineral Resources. Previously, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, revealed that the Ministry of Energy and Mineral Resources was indeed waiting for a recommendation by BPMA.

"Just waiting for the BPMA recommendations for extensions," said Djoko.

According to Faisal, Repsol has the opportunity to open options to engage partners in a new exploration period.

"It's still a process, one of which is Petronas, but it still cannot be confirmed," said Faisal.

the Andaman III 

For information, currently Repsol has 100% participation rights in the Andaman III Block. KONTAN Note, BPMA discovered the potential of oil and gas reserves in the Andaman III Block after a seismic survey was carried out by Repsol as manager of the block. Acting Head of BPMA Azhari Idris said, it still needed drilling to prove the potential reserves in Andaman III Block.

IN INDONESIA

Repsol Dapat Perpanjangan Eksplorasi Blok Andaman III

Badan Pengelola Minyak dan Gas Aceh (BPMA) menyatakan Repsol telah mengantongi persetujuan dari Kementerian Energi dan Sumber Daya Mineral (ESDM) untuk perpanjangan masa eksplorasi Blok Andaman III. Deputi Operasi dan Perencanaan BPMA Teuku Muhammad Faisal mengatakan, perpanjangan tersebut diberikan selama dua tahun. 

"Kewajiban membuat joint account dan performance bond sudah dilakukan, sekarang tinggal mempersiapkan rencana pengeboran," kata Faisal.

Adapun rencana pengeboran oleh Repsol akan meliputi pengeboran satu sumur. Faisal menuturkan, Repsol mengajukan permintaan perpanjangan selama satu tahun, namun demi hasil yang maksimal, BPMA merekomendasikan dua tahun kepada Kementerian ESDM. Sebelumnya, Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto mengungkapkan, Kementerian ESDM memang menantikan rekomendasi oleh BPMA. 

“Tinggal menunggu rekomendasi BPMA untuk extension," kata Djoko.

Menurut Faisal, Repsol berpeluang membuka opsi untuk menggandeng mitra dalam masa eksplorasi yang baru.

"Masih proses, salah satunya Petronas, namun masih belum bisa dikonfimasi," kata Faisal. 

Sebagai informasi, saat ini Repsol memiliki hak partisipasi sebesar 100% pada Blok Andaman III. Catatan KONTAN, BPMA menemukan potensi cadangan migas di Blok Andaman III setelah dilakukan survei seismik oleh Repsol selaku pengelola blok tersebut. Plt Kepala BPMA Azhari Idris bilang, masih perlu dilakukan pengeboran demi membuktikan potensi temuan cadangan di Blok Andaman III.

Kontan, Page-14, Thursday, Nov 7, 2019

Repsol Find Partners in Andaman Block III

The Aceh Oil and Gas Management Agency (BPMA) said Repsol Indonesia was looking for partners to work on the Andaman III Block. Repsol is currently still exploring in the oil and gas block which is estimated to have a gas potential of 3-4 trillion cubic feet (Trillion Cubic Feet / TCF). 

     BPMA Deputy of Operations and Planning Teuku Muhammad Faisal said Repsol saw that they could not work on the Andaman III Block themselves. Therefore, the Spanish oil and gas company plans to release part of its Participating Interest (PI) ownership in the block to find partners.

Blogger Agus Purnomo in Petronas PC Ketapang

"Actually there is more that they are working on, namely partners to share PI, they are proposing. One of the candidates is Petronas, "he said. Currently, Repsol holds 100% PI in the Andaman III Block.

 the Andaman III Block

Repsol is still carrying out exploration activities in the Andaman III Block. Referring to BPMA data, in 2017-2018, Repsol has conducted several exploration activities, namely acquisition, and processing of 3D seismic data covering 3,670 square kilometers (km2). In addition, Repsol has also procured long-lead items needed for operations.

Repsol

Now, Repsol is making preparations for drilling the Rencong IX Well. BPMA, continued Faisal, has given a recommendation for an extension of the exploration period of the Andaman III Block for two years. However, he said, the extension of this exploration period still had to wait for approval from the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

According to him, the additional exploration period was given so that Repsol can continue drilling wells. The extension was even longer than Repsol's request, which was only around one year. Because the regulator has an interest so that exploration activities in the Andaman III Block can be completed.

"Repsol can be a maximum of two years, seeing their preparations in the past year and this year. They are optimistic indeed, asking for a year is enough, [but] instead of not completing the regulator also a hassle, "explained Faisal.

The reason is, it also needs time regarding the correspondence with the Minister of Energy and Mineral Resources. Acting Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that his party was still waiting for a recommendation from BPMA regarding the extension of the Andaman III Block exploration period.

"Still waiting for the BPMA recommendation for the extension. We wait 1-2 days, "he said.

The Andaman III Block covers an area of ​​8,440 square kilometers off the coast of Aceh. This block is located in a water depth of 1,300 meters in the North Sumatra basin area. Based on the results of a seismic survey that has been carried out, the Acting Task Force of the Aceh Oil and Gas Management Agency (BPMA) Azhari Idris said, the prospects are predicted to have 3-4 TCF potential.

The Well drilling by Repsol is planned to be carried out in the first half of 2020. The Andaman III Block is an exploration block that was won by Talisman at an auction of work areas in 2009. However, Repsol acquired Talisman in 2015 so that the block is managed by Repsol. The Andaman III production sharing contract was signed on September 11, 2009, and is valid for 30 years or until 2039.

Investor Daily, Page-9, Wednesday, November 6, 2019

Pertamina and Marubeni Continue to Share in Java-1

The Java-1 PLTGU consortium may not change until the project operates commercially

PT Perusahaan Listrik Negara (PLN) is also monitoring the chaos in the consortium of PT Pertamina Power Indonesia (PPI) and Marubeni Corporation. PLN asks the consortium to immediately resolve the issue. 

      The consortium is working on a Java-1 gas-fired power plant (PLTGU) project with a capacity of 1,760 megawatts (MW). In building the Java-1 PLTGU, PPI and Marubeni obtained 40% ownership shares. As for one more member, Sojitz Corporation has a 20% stake.

Sojitz Corporation

PT PLN's Strategic Procurement Director 2, Djoko Rahardjo Aburhanan, said the relevant parties in the consortium must be able to show a solution to the problem. Because, the consortium may not change ownership of shares, let alone disband. 

     After the consortium is appointed and the power purchase agreement (PPA) is signed, the contract with the consortium may not change until the electric power plant project is commercially operational or commercial operation date (COD).

"Change of directors is okay. But it can't change the consortium. Unless the COD has become an item and the debts with landed banks have been completed," said Djoko.

Cilamaya Port

That is, like a contract with another private electricity producer (IPP), the consortium is responsible for completing the Java-1 PLTGU project according to the agreed schedule. At present, the progress of the Java-1 PLTGU has reached 30% and is targeted to be completed in 2021. The power plant, which was built in Cilamaya, Karawang regency, West Java, requires an investment budget of around US $ 1.8 billion.

The PLTGU, which will be integrated with the Floating Storage and Regasification Unit (FSRU), has spent US $ 275 million. PLN and the PPI consortium, Marubeni and Sojitz Corporation have signed the PPA since January 31, 2017. 

    Not only at the Java-1 PLTGU, the fracture of Pertamina and Marubeni's relationship also affected other projects, namely power plants to be built in Bangladesh. In the 1,200 MW power plant project, Marubeni has been a partner of Pertamina since August 2017. PT Pertamina's President Director Nicke Widyawati refused to respond.

Nicke Widyawati

While Pertamina's Director of Investment Planning and Risk Management, Heru Setiawan, said the partnership with Marubeni was still ongoing. The chaos between Pertamina and Marubeni began when there was friction and differences of opinion between PPI and Marubeni in the Java-1 PLTGU project. 

     There was even news that the President Director of PPI, Ginanjar Sofyan, was dismissed from his position due to this chaos. Pertamina Corporate Communication Vice President Fajriyah Usman denied the news.

Fajriyah Usman

"Until now he is still in office," he told KONTAN. He also said that Pertamina had also asked PPI to resolve the issue with Marubeni, in accordance with the contract, said Fajriyah.

IN INDONESIA

Pertamina dan Marubeni Tetap Berkongsi di Jawa-1

Konsorsium PLTGU Jawa-1 tidak boleh berganti hingga proyek beroperasi secara komersial

PT Perusahaan Listrik Negara (PLN) ikut memantau kisruh di konsorsium PT Pertamina Power Indonesia (PPI) dan Marubeni Corporation. PLN minta konsorsium segera menyelesaikan masalah tersebut. Konsorsium tersebut menggarap proyek pembangkit listrik tenaga gas uap (PLTGU) Jawa-1 berkapasitas 1.760 megawatt (MW). Dalam membangun PLTGU Jawa-1, PPI dan Marubeni memperoleh saham kepemilikan masing-masing sebesar 40%. Adapun satu anggota Iagi, Sojitz Corporation memiliki 20% saham.

Direktur Pengadaan Strategis 2 PT PLN, Djoko Rahardjo Aburhanan, mengatakan, para pihak terkait di konsorsium tersebut harus bisa menunjukkan jalan keluar terhadap masalah tersebut. Sebab, konsorsium tidak boleh berganti kepemilikan saham, apalagi bubar. Setelah konsorsium ditunjuk dan perjanjian jual beli listrik alias power purchase agreement (PPA) ditanda tangani, kontrak dengan konsorsium tidak boleh berganti hingga proyek pembangkit Iistrik beroperasi secara komersial atau commercil operation date (COD). 

"Ganti direksi tidak apa-apa. Tapi tidak boleh ganti konsorsium. Kecuali sudah COD, sudah menjadi barangnya dan utang piutang dengan bank landed selesai," kata Djoko.

Artinya, seperti kontrak dengan produsen Iistrik swasta (IPP) lainnya, konsorsium bertanggung jawab merampungkan proyek PLTGU Jawa-1 sesuai jadwal yang telah disepakati. Saat ini, progres PLTGU Jawa-1 mencapai 30% dan ditargetkan rampung pada 2021. Pembangkit yang dibangun di Cilamaya, Kabupaten Karawang-Jawa Barat ini membutuhkan anggaran investasi sekitar US$ 1,8 miliar.

PLTGU yang akan terintegrasi dengan Floating Storage and Regasification Unit (FSRU) itu telah mengeluarkan dana US$ 275 juta. PLN dan konsorsium PPI, Marubeni dan Sojitz Corporation sudah menandatangani PPA sejak 31 Januari 2017. Tidak hanya di PLTGU Jawa-1, keretakan hubungan Pertamina dan Marubeni juga berdampak proyek lainnya, yakni pembangkit listrik yang akan dibangun di Bangladesh. Pada proyek pembangkit berkapasitas 1.200 MW, Marubeni menjadi salah satu mitra Pertamina sejak Agustus 2017. Direktur Utama PT Pertamina Nicke Widyawati menoIak memberikan tanggapan.

Sementara Direktur Perencanaan Investasi dan Manajemen Risiko Pertamina, Heru Setiawan, menyatakan, kongsi dengan Marubeni masih terus berlangsung. Kisruh Pertamina dan Marubeni bermula saat terjadi gesekan dan perbedaan pandangan antara PPI dan Marubeni di proyek PLTGU Jawa-1. Bahkan ada kabar Direktur Utama PPI, Ginanjar Sofyan, diberhentikan dari jabatannya akibat kisruh ini. Vice President Corporate communication Pertamina Fajriyah Usman membantah kabar itu. 

“Sampai saat ini beliau masih menjabat," kata dia kepada KONTAN. Ia juga bilang, Pertamina juga telah meminta PPI untuk menyelesaikan masalah dengan Marubeni, sesuai dengan kontrak, kata Fajriyah.

Kontan, Page-14, Wednesday, November 6, 2019

Repsol Andaman Exploration until 2021

The Aceh Oil and Gas Management Agency (BPMA) gave a recommendation for an extension of 2 years to Repsol to continue exploration in the Andaman III Block until 2021. BPMA Acting Officer Azhari Idris said Repsol was given a recommendation for an extension of the next 2 years.

the Andaman III Block

"Yes, we gave 2 years for Repsol," he said.

So far, Repsol is still exploring oil and gas blocks which are estimated to have 3-4 trillion cubic feet (TCF) gas potential. Referring to BPMA data, in 2017-2018, Repsol has conducted several exploration activities, namely acquisition and processing of 3D seismic data covering 3,670 square kilometers (km2). The Repsol exploration permit in the Andaman Block should expire this year.

The Repsol party had applied for a permit extension for about 1 year. BPMA Deputy of Operations and Planning Teuku Muhammad Faisal the extension of this exploration period still has to wait for approval from the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

Arifin Tasrif

According to him, the additional exploration period was given so that Repsol could continue drilling Rencon IX wells. In addition, Repsol is also preparing shorebase, long lead item preparation and drill ship procurement. The extension granted is even longer compared Repsol's request is only around one year.

"Repsol can be maximum in 2 years, seeing their preparations in the past year and this year. They are optimistic indeed, asking for a year is enough, [but] rather than not finished, regulators also bother, "he added.

Previously, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Djoko Siswanto, said that his party was still waiting for a recommendation from BPMA regarding the extension of the Andaman III Block exploration period.

"Still waiting for the BPMA recommendation for the extension. We wait 1-2 days, "he said.

IN INDONESIA

Repsol Eksplorasi Andaman hingga 2021

Badan Pengelola Migas Aceh (BPMA) memberikan rekomendasi perpanjangan selama 2 tahun kepada Repsol untuk melanjutkan eksplorasi di Blok Andaman III hingga 2021. Pelaksana Tugas BPMA Azhari Idris mengatakan Repsol diberikan rekomendasi perpanjangan waktu 2 tahun ke depan. 

“Ya, kami beri 2 tahun untuk Repsol,” katanya.

Sejauh ini, Repsol masih melakukan eksplorasi di blok migas yang diperkirakan memiliki potensi gas 3-4 triliun kaki kubik (TCF). Mengacu data BPMA, pada 2017-2018, Repsol telah melakukan beberapa kegiatan eksplorasi yakni akuisisi dan pemrosesan data seismik 3D seluas 3.670 kilometer persegi (km2). Izin eksplorasi Repsol di Blok Andaman seharusnya berakhir tahun ini. 

Pihak Repsol sempat mengajukan permohonan perpanjangan izin itu sekitar 1 tahun. Deputi Operasi dan Perencanaan BPMA Teuku Muhammad Faisal perpanjangan masa eksplorasi ini masih harus menunggu persetujuan Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif.

Menurutnya, tambahan masa eksplorasi ini diberikan agar Repsol dapat melanjutkan kegiatan pengeboran sumur Rencon IX. Selain itu, Repsol juga sedang melakukan persiapan shorebase, penyiapan long lead item dan pengadaan drill ship. Perpanjangan yang diberikan bahkan lebih lama dibandingkan permintaan Repsol yang hanya sekitar satu tahun.

“Repsol bisa maksimum di 2 tahun, melihat persiapan mereka di tahun kemarin dan tahun ini. Mereka optimistis memang, mintanya setahun cukup, [tetapi] daripada tidak selesai kan regulator juga yang repot,” tambahnya.

Sebelumnya, Pelaksana Tugas Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Djoko Siswanto mengatakan pihaknya masih menunggu rekomendasi dari BPMA terkait perpanjangan masa eksplorasi Blok Andaman III.

“Masih menunggu rekomendasi BPMA untuk extension. 1-2 hari ini kami tunggu,” ujarnya.

Bisnis Indonesia, Page-24, Wednesday, November 6, 2019

Chevron-Pertamina Continues Discussion on Rokan Block Transition

PT Chevron Pacific Indonesia continues to hold discussions with Pertamina and SKK Migas in the transition to management of the Rokan Block, Riau. Chevron admitted that he continued to accompany Pertamina so that the state-owned oil and gas company could operate properly. 

the Rokan Block, Riau

    PT Chevron Pacific Indonesia (CPI) Senior Vice President Policy, Government, and Public Affairs Wahyu Budiarto explained, the intense transition discussion was conducted by Chevron, Pertamina, and SKK Migas.

PT Chevron Pacific Indonesia (CPI)

"We are helping Pertamina to operate smoothly and quickly," Budi said when met at the Ministry of Energy and Mineral Resources.

Budi also explained, the discussion between the three parties was about data that could be synergized by the three. These data can later become a provision for Pertamina in its subsequent operations.

"Now we are talking about data, so there is no need to start from zero. The data needed by anything from underground to facilities above the ground," said Budi.

Budi conveyed, the three parties also intensely discussed the implementation of Enhanced Oil Recovery (EOR). This is an effort to optimize oil reserves in existing wells. For EOR activities, Chevron has first used and always reported to SKK Migas.

"That is one of the data that we discussed, there are a lot of data in SKK. Because we have also reported our EOR reports. So, we keep updating and developing what it looks like," Budi said.

Blogger Agus Purnomo in SKK Migas

Previously, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) hoped that Pertamina and Chevron Pacific Indonesia would immediately agree on the Rokan Block transition. SKK Migas also targets that the agreement can be completed by the end of November 2019. 

Dwi Soetjipto

     SKK Migas Head Dwi Soetjipto said that his party needs to prepare a work program and budget for the Rokan Block. Therefore, SKK Migas hopes that the agreement process related to the Rokan transition can be completed soon.

"Later this time, we will ask for additional from Pertamina what they will do," Dwi said.

Pertamina is known to plan to drill many wells in the Rokan Block. However, Dwi has not been able to specify the number of wells to be drilled by the state-owned company.

"Great. Hopefully, at the beginning of November we will be able to input roughly the additional amount from Pertamina how much will be drilled next year," he said.

The transition period for the Rokan Block operation from Chevron to Pertamina is still ongoing. One of the works carried out during this transition period is pipe replacement. 

     Pertagas Managing Director Wiko Megantoro explained, currently, the pipe replacement process is at the design completion stage. After this design is complete, the company will complete an investment finalization plan for pipeline construction.

Republika, Page-13, Tuesday, November 5, 2019