2020, PEPC Issues Investment of US $ 591 Million

PT Pertamina EP Cepu (PEPC), a subsidiary of PT Pertamina (Persero), has budgeted an investment of US $ 591 million in 2020 to continue work on the Jambaran-Tiung Biru Field Unitization Project. The company is targeting the oil and gas project to start flowing gas by 2021. 

Jamsaton Nababan

    Pertamina EP Cepu President Director Jamsaton Nababan said, up to November 2019, the Jambaran-Tiung Biru Project construction had reached 47.3%, faster than the 46.5% plan.

The Jambaran-Tiung Biru Project 

In 2020 it will continue to work on this project by completing well drilling and construction of a gas processing facility (GPF). For this reason, he prepares a larger investment budget in 2020.

"Next year's PEPC investment budget will be US $ 591 million, including GPF, drilling and land acquisition," he said.

This investment budget is up 78.55% compared to this year's allocation of US $ 331. While the realization of the use of this year's investment budget until November 2019 is the US $ 297 million.

This year, the company has started drilling four wells in Jambaran East. It has completed the 12-1 / 4-inch hole route at the JAM-3 and JAM-5 wells. Now it is still carrying out JAM-8 drilling. After that, there will be optimization or re-entry of the existing well, JAM-4. Next, he will work on the JAM-6 Well and the JAM-7 Well in Central Jambaran.

"We will start drilling the two wells again in 2020," Jamsaton said.

The drilling work will begin with the removal of the rig from Blora Regency, Central Java from July to September 2020. PEPC is working with local police to oversee its journey. He added, related to the work on GPF, the mobilization of heavy equipment in the form of selexol 2 absorbers and was completed in early December 2019. In total, the execution of this GPF has exceeded the target.

"The actual GPF works are already 43.5%, while in the planning it is 42.6%," he said.

However, shipments of heavy vehicle equipment will continue in 2020. The GPF contractor, the Industrial Engineering Consortium, Japan Gas Corporation, and Japan Gas Indonesia (RJJ) conducted intense coordination with relevant agencies and security forces in the mobilization of the equipment. Because the super-heavy transport vehicles will cross five bridges in three districts, namely Gresik, Lamongan, and Bojonegoro.

Previously, the five bridges had been previously strengthened by the RJJ Consortium. For project funding, Jamsaton stated that it had obtained syndicated commitments from 12 banks worth the US $ 1.8 billion. However, it is certain that the funds received by his party amounted to the US $ 1.6 billion.

The existence of this difference is because there is an additional estimate of gas production of 20 million cubic feet per day / MMSCFD that has not been sold as a result of the absence of government allocations. However, it is certain that the funding needs are safe considering the total investment needs for the Jambaran-Tiung Biru Project are the only US $ 1.55 billion.

"It means, we don't need to use our own money, all are money lenders.

"There are also no guarantees to lenders, there is nothing we mortgaged because what was sold was the performance or economics of the project," Jamsaton stressed.

Of the 12 banks that provided loans, he said four of them were domestic banks, namely BRI, Mandiri, BTPN, and BNI. In this funding, MUFG Bank is the financial advisor, facility agent, and lead arranger.

This funding agreement has a unique hybrid financing structure, which combines conventional financing and, for the first time, Islamic financing under the Trustee Borrowing scheme. Each section (tranche), conventional and sharia, provides project financing facilities with two tenors, namely 10 and 15 years.

Gas production generated by the JTB Project of 192 mmscfd will be channeled through the Gresik-Semarang transmission pipeline. With JTB gas reserves of 2.5 trillion cubic feet (TCF), JTB is expected to have a multiplier effect, specifically to overcome the gas supply deficit in Central and East Java. The JTB project is projected to also increase state revenue from the US $ 3.61 billion during the contract period.

Net Income Increases

In addition to working on and operating the Jambaran-Tiung Biru Project, PEPC also holds a 45% participating interest in the Cepu Block. From the block that has produced this oil, Jamsaton projects that its performance will remain brilliant next year.

Although PEPC's oil production is targeted to be stable at 96.16 thousand barrels per day (BPD) and the price of Indonesian crude oil (Indonesian Crude Price / ICP) drops to US $ 68.02 per barrel, the company's profit is targeted to increase.

"In 2020, the net profit is the US $ 852 million. This year, the projected net profit is the US $ 845 million," he said.

Meanwhile, next year's oil price assumption is the US $ 68.02 per barrel, lower than this year's US $ 74.56 per barrel assumption. This is in line with the average realization of oil prices up to November 2019 yesterday at the US $ 68.52 per barrel.

In 2020, it also budgeted an operating cost of US $ 157 million or higher than this year of US $ 150 million. Regarding production, the PEPC oil allotment is calculated assuming the Cepu Block oil production target next year will be 214 thousand BPD. The target is down slightly compared to this year which is called Jamsaton around 217 thousand BPD.

In 2019, from the PEPC production target of 96.16 thousand BPD, the realization up to November was 97.87 thousand BPD. With this production achievement, PEPC became Pertamina's upstream subsidiary with the largest oil production contribution.

"PEPC's financial performance this year is still very good and can still be according to plan. Even the APBN production target has been achieved. The benefits have also been achieved," he said.


Until last November, it had posted a net profit of US $ 790 million. While according to the state budget, the Cepu Block production target is 216 thousand BPD. To achieve the net profit target, Jamsaton explained, his party would increase oil production in the Cepu Block to be higher than the target. 

    Increased production is by continuing to complete the revised environmental impact analysis (EIA) with a maximum production of 235 thousand BPD. In addition, it will minimize the cessation of planned and unplanned operations.

IN INDONESIA

2020, PEPC Keluarkan Investasi US$ 591 Juta

PT Pertamina EP Cepu (PEPC), anak usaha PT Pertamina (Persero), menganggarkan dana investasi sebesar US$ 591 juta pada tahun 2020 untuk melanjutkan pengerjaan Proyek Unitisasi Lapangan Jambaran-Tiung Biru. Perusahaan menargetkan proyek migas tersebut dapat mulai mengalirkan gas pada 2021. 

Direktur Utama Pertamina EP Cepu Jamsaton Nababan mengatakan, hingga November 2019 lalu, pengerjaan Proyek Jambaran-Tiung Biru telah mencapai 47,3%, lebih cepat dari perencanaan 46,5%. 

Pada tahun 2020 pihaknya masih akan melanjutkan pengerjaan proyek ini dengan merampungkan pengeboran sumur dan pembangunan fasilitas pemrosesan gas (gas processing facility/GPF). Untuk itu, pihaknya menyiapkan anggaran investasi yang lebih besar pada 2020.

"Anggaran investasi PEPC pada tahun depan itu US$ 591 juta, termasuk GPF, drilling, dan land acquisition," kata dia.

Anggaran investasi ini naik 78,55% dibanding alokasi tahun ini yang sebesar US$ 331. Sementara realisasi pengunaan anggaran investasi tahun ini hingga November 2019 yakni sebesar US$ 297 juta.

Di tahun ini, pihaknya telah memulai pengeboran empat sumur di Jambaran East. Pihaknya telah merampungkan trayek lubang 12-1/4 inch pada sumur JAM-3 dan JAM-5. Kini pihaknya masih melaksanakan pengeboran JAM-8. Setelah itu akan dilakukan optimasi atau re-entry sumur yang telah ada, yakni JAM-4. Berikutnya, pihaknya akan mengerjakan Sumur JAM-6 dan Sumur JAM-7 yang berada di Jambaran Central.

"Kami akan memulai lagi pengeboran dua sumur tersebut pada tahun 2020," ujar Jamsaton. 

Pekerjaan pengeboran ini akan dimulai dengan pemindahan rig dari Kabupaten Blora Jawa Tengah pada Juli hingga Semptember 2020. PEPC bekerja sama dengan Polsek setempat untuk mengawal perjalanannya. Dia menambahkan, terkait pengerjaan GPF, mobilisasi alat berat berupa alat absorber 2 dana selexol, telah selesai pada awal Desember 2019 lalu. Secara total, pengerjaan GPF ini telah melampaui target.

"Pengerjaan GPF actual sudah 43,5%, sementara dalam perencanaan 42,6%," tuturnya.

Namun, pengiriman peralatan kendaraan berat ini masih akan berlanjut di tahun 2020. Kontraktor GPF, Konsorsium Rekayasa Industri, Japan Gas Corporation, dan Japan Gas Indonesia (RJJ) melakukan koordinasi intens dengan dinas terkait dan aparat pengamanan dalam mobilisasi alat tersebut. Pasalnya, kendaraan pengangkutan super berat ini akan melintasi lima jembatan di tiga kabupaten, yakni Kabupaten Gresik, Lamongan, dan Bojonegoro. 

Sebelumnya, kelima jembatan ini sudah diperkuat terlebih dahulu oleh Konsorsium RJJ. Untuk pendanaan proyek, Jamsaton menyatakan bahwa pihaknya telah memperoleh komitmen sindikasi dari 12 bank senilai US$ 1,8 miliar. Namun, dana yang dipastikan telah diterima pihaknya yakni sebesar US$ 1,6 miliar.

Adanya selisih ini lantaran terdapat estimasi tambahan produksi gas 20 juta kaki kubik per hari /MMSCFD yang belum terjual sebagai dampak belum adanya alokasi dari pemerintah. Meski demikian, kebutuhan pendanaan dipastikannya aman mengingat total kebutuhan investasi untuk Proyek Jambaran-Tiung Biru hanya US$ 1,55 miliar.

"Artinya, kami tidak perlu menggunakan uang sendiri, semuanya uang lenders.

Tidak ada juga jaminan ke lenders, tidak ada yang kami gadaikan karena yang dijual performance atau keekonomian proyeknya," tegas Jamsaton.

Dari 12 bank yang memberikan pinjaman, dikatakannnya empat diantaran merupakan bank dalam negeri, yaitu BRI, Mandiri, BTPN, dan BNI. Dalam pendanaan ini, MUFG Bank menjadi penasihat keuangan, facility agent, dan lead arranger. 

Kesepakatan pendanaan ini memiliki struktur pembiayaan hybrid yang unik, yaitu menggabungkan pembiayaan konvensional dan, untuk pertama kalinya, pembiayaan syariah di bawah skema Trustee Borrowing (pinjaman wali amanat). Tiap bagian (tranche), konvensional dan syariah, memberikan fasilitas pembiayaan proyek dengan dua tenor, yaitu 10 dan 15 tahun. 

Produksi gas yang dihasilkan oleh Proyek JTB sebesar 192 mmscfd nantinya akan dialirkan melalui Pipa transmisi Gresik-Semarang. Dengan cadangan gas JTB sebesar 2,5 triliun kaki kubik (TCF), JTB diharapkan dapat memberikan multiplier effect , khususnya untuk mengatasi defisit pasokan gas di Jawa Tengah dan Jawa Timur. Proyek JTB diproyeksikan juga akan meningkatkan pendapatan negara dari US $3,61 miliar selama masa kontrak.

Laba Bersih Naik

Selain mengerjakan dan mengoperatori Proyek Jambaran-Tiung Biru, PEPC juga memegang hak partisipasi sebesar 45% di Blok Cepu. Dari blok yang telah memproduksi minyak ini, Jamsaton memproyeksikan kinerjanya akan tetap cemerlang  pada tahun depan. 

Walaupun produksi minyak bagian PEPC ditargetkan stabil sebesar 96,16 ribu barel per hari (bph) dan harga minyak mentah Indonesia (Indonesian Crude Price/ICP) turun menjadi US$ 68,02 per barel, laba perusahaan justru ditargetkan naik.

"Pada 2020, laba bersih targetnya US$ 852 juta. Tahun ini proyeksi laba bersih US$ 845 juta," kata dia.

Sementara itu, asumsi harga minyak pada tahun depan US$ 68,02 per barel, lebih rendah dari asumsi tahun ini US$ 74,56 per barel. Hal ini sejalan dengan realisasi rerata harga minyak hingga November 2019 kemarin sebesar US$ 68,52 per barel. 

Pada tahun 2020, pihaknya juga menganggarkan biaya operasi sebesar US$ 157 juta atau lebih tinggi dari tahun ini US$ 150 juta. Terkait produksi, jatah minyak PEPC dihitung dengan asumsi target produksi minyak Blok Cepu pada tahun depan sebesar 214 ribu bph. Target tersebut turun sedikit jika dibandingkan tahun ini yang disebut Jamsaton sekitar 217 ribu bph.

Di tahun 2019 ini, dari target produksi bagian PEPC 96,16 ribu bph, realisasi hingga November kemarin sudah 97,87 ribu bph. Dengan capaian produksi ini, PEPC menjadi anak usaha hulu Pertamina dengan kontribusi produksi minyak terbesar.

"Kinerja keuangan PEPC tahun ini masih sangat bagus masih bisa sesuai rencana. Bahkan target produksi APBN pun sudah dicapai. Keuntungan juga tercapai," tutur dia.

Hingga November lalu, pihaknya telah membukukan laba bersih sebesar US$ 790 juta. Sementara sesuai APBN, target produksi Blok Cepu sebesar 216 ribu bph. Untuk mencapai target laba bersih, Jamsaton menjelaskan, pihaknya akan meningkatkan produksi minyak di Blok Cepu menjadi lebih tinggi dari target. Peningkatan produksi yakni dengan terus merampungkan revisi analisis dampak lingkungan (Amdal) dengan produksi maksimal 235 ribu bph. Selain itu, pihaknya akan meminimalkan penghentian operasi terencana maupun tidak terencana.

"Serta kami akan berusaha melakukan efisiensi biaya operasi," ujar dia.

Investor Daily, Page-9, Thursday, Dec 19, 2020

Oil and Gas Production at Kedung Keris Field is 5,000 Barrels

The Kedung Keris Block in Cepu Block operated by ExxonMobil Cepu Ltd continues to produce. At present, the total production reaches 5,000 barrels per day (BPH).

The Kedung Keris Block in Cepu Block

"Kedung Keris Field production achievements continue to increase. Previously the production point was 3,800 BPH, now it has risen to 5,000 BPH, "said Dwi Soetjipto, Head of the Special Work Unit (SKK) for Oil and Gas, in remarks at the inaugural oil production at the Kedung Keris Field, in the hall of the Banyu Urip Field Sport Hall, Gayam District, Tuban.

Dwi said the Kedung Keris Field production figures were not stagnant, but would continue to be boosted until the oil produced continued to increase.

"The production target is expected to reach 10,000 BPH," Dwi said.

He explained, the source of oil was in the villages of Leran and Sukoharjo. Kalitidu Sub-district is expected to increase domestic production. So that it can reduce imports in the coming year. 

      Related to the overall Cepu Block production, Dwi hopes to produce 230 thousand BPH, with details of the Banyu Urip Field 220 thousand BPH and the Kedung Keris Field 10 thousand BPH.

"Although the Kedung Keris field has been able to produce, we have not been able to produce 230 thousand BPH, because the Environmental Impact Analysis permit (EIA/AMDAL) is still 220 thousand BPH. The solution will be taken care of." Dwi's promise

Important Role

Louise McKenzie

Meanwhile. ExxonMobil President Louise McKenzie expressed pride in the oil products in the Cepu block. Because, and 25 percent of the national oil demand comes from the Banyu Urip field and later it can be more if added to the Kedung Keris field.

the Banyu Urip field

"I am proud that the Cepu block can help domestic oil needs, as much as 25 percent," he said.

At present, the amount of domestic fuel oil needs is 1.5 million BPH. 60 percent of the needs can be fulfilled domestically, while the rest is obtained from imports.

IN INDONESIA

Produksi Minyak dan Gas Lapangan Kedung Keris 5.000 Barel

Lapangan Kedung Keris Blok Cepu yang dioperatori ExxonMobil Cepu Ltd terus melakukan produksi. Saat ini total produksinya mencapai 5.000 barel per hari (BPH). 

“Capaian produksi Lapangan Kedung Keris terus meningkat. Sebelumnya titik produksi 3.800 BPH, kini sudah naik menjadi 5.000 BPH," kata Dwi Soetjipto, Kepala Satuan Kerja Khusus (SKK) Migas, dalam sambutan produksi minyak perdana Lapangan Kedung Keris, di aula Sport Hall Lapangan Banyu Urip, Kecamatan Gayam, Tuban.

Dikatakan Dwi angka produksi Lapangan Kedung Keris tidak stagnan, melainkan akan terus digenjot hingga minyak yang dihasilkan terus meningkat. 

"Target produksinya diharapkan bisa mencapai 10 ribu BPH," ujar Dwi.

Dia menjelaskan, sumber minyak yang berada di Desa Leran dan Sukoharjo. Kecamatan Kalitidu ini diharapkan bisa menambah produksi dalam negeri. Sehingga mampu mengurangi impor di tahun mendatang. 

     Terkait produksi Blok Cepu secara keseluruhan, Dwi berharap bisa memproduksi 230 ribu BPH, dengan rincian Lapangan Banyu Urip 220 ribu BPH dan Lapangan Kedung Keris 10 ribu BPH.

"Meski lapangan Kedung Keris sudah bisa produksi, namun kita belum bisa memproduksi 230 ribu BPH, karena izin analisis dampak lingkungan (AMDAL) masih 220 ribu BPH. Solusinya akan diurus izinnya." janji Dwi 

Peran Penting

Sementara itu. Presiden ExxonMobil, Louise McKenzie menyatakan bangga dengan produk minyak di blok Cepu. Sebab, dan kebutuhan minyak nasional 25 persennya berasal dan lapangan Banyu Urip dan nanti bisa lebih jika ditambah dengan lapangan Kedung Keris.

"Saya bangga blok Cepu bisa membantu kebutuhan minyak dalam negeri, sebanyak 25 persen” ungkapnya.

Saat ini jumlah kebutuhan Bahan Bakar Minyak (BBM) dalam negeri 1,5 juta BPH. 60 persen kebutuhan mampu dicukupi dalam negeri, sedangkan sisanya diperoleh dari impor.

Surya, Page- 3, Wednesday, Dec 18, 2019

EMCL Production Towards 10 Thousand Barrels

The Cepu Block oil production has increased. Because, ExxonMobil Cepu Limited (EMCL) officially started oil production in the Kedung Keris field.

the Kedung Keris field

     EMCL has also submitted a revised analysis on the environmental impact (EIA) of the increased production. 

Dwi Soetjipto

    Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said oil production at the Kedung Keris field currently reaches 5,000 barrels of oil per day. Later, gradually, its capacity will increase to 10 thousand barrels of oil per day.

"If calculated with the price of ICP oil (Indonesian crude oil price) of USD 60-USD 65 per barrel, there will be gross revenue of USD 237 million or equivalent to Rp 3.3 trillion a year," Dwi explained before the media.

The income according to Dwi Soetjipto is not exactly small. Dwi Soetjipto believes that the revenue will contribute significantly to the regional and central economy. Currently, the Cepu Block production from the Banyu Urip field reaches 220 thousand barrels of oil per day. 

Chevron Pacific Indonesia

     That is the most contribution. Previously, the highest oil production was produced by the Rokan Block which is managed by Chevron Pacific Indonesia. The figure is around 210 thousand barrels of oil per day.

"But, overtaken EMCL which is more than 200 thousand barrels of oil per day. In fact, Rokan's production has dropped to 190 thousand barrels," Dwi said. Because the production capacity of the Cepu Block has changed, EMCL needs to revise the Environmental Impact Analysis (AMDAL). Based on the results of the maximum capacity trial test, the production of 235 thousand barrels of oil per day (BPD) is still safe.

"The test has been done. Still waiting to get permission to operate at that level," Dwi said.

Louise McKenzie

ExxonMobil Cepu Limited President Louise McKenzie revealed oil production in the Cepu Block contributed 25 percent to the nation.

"Number one in Indonesia. Therefore, we will continue to produce" he said.

While waiting for the drop in environmental impact analysis to increase production to 235 thousand barrels of oil per day, he has prepared facilities that are in line with the production capacity at the Kedung Keris field, which has reached 10 thousand barrels. 

     The oil production activities of the Kedung Keris project are a collaboration between ExxonMobil Cepu Limited (EMCL) and Cepu Block partners. Namely, PT Pertamina EP Cepu (PEPC) and the Cepu Block Participating Interest (PI) Cooperation Agency.

"We will continue to evaluate the capability and performance of the Kedung Keris well," McKenzie said.

The engineering, procurement, and construction contract of the Kedung Keris project with an investment of up to USD 76 million were undertaken by PT Meindo Elang Indah. The project consists of a tread for one well operation and an 8-inch diameter underground pipe. 

Banyu Urip central processing facility

     The pipe extends along 15 kilometers and is connected with a Banyu Urip central processing facility. Head of East Java ESDM Office Setiadjit emphasized that the East Java Provincial Government is ready to support increased oil production in the region.

"If there is a submission for making EIA due to increased production, we will facilitate and accelerate" he explained.

IN INDONESIA

Produksi EMCL Menuju 10 Ribu Barel

Produksi minyak Blok Cepu meningkat. Sebab, ExxonMobil Cepu Limited (EMCL) resmi memulai produksi minyak di lapangan Kedung Keris. EMCL juga sudah mengajukan revisi analisis mengenai dampak lingkungan (amdal) atas peningkatan produksi tersebut. 

     Kepala Satuan Kerja Khusus Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto menyebutkan, produksi minyak di lapangan Kedung Keris saat ini mencapai 5.000 barel minyak per hari. Nanti, secara bertahap, kapasitasnya meningkat menjadi 10 ribu barel minyak per hari.

"Kalau dihitung dengan harga minyak ICP (harga minyak mentah Indonesia) USD 60-USD 65 per barel, akan ada pendapatan kotor atau gross revenue USD 237 juta atau setara Rp 3,3 triliun setahun,” terang Dwi di hadapan media.

Pendapatan tersebut menurut Dwi Soetjipto tidak bisa dibilang sedikit. Dwi Soetjipto yakin pendapatan itu bakal berkontri busi signifikan terhadap perekonomian daerah dan pusat. Saat ini produksi Blok Cepu dari lapangan Banyu Urip mencapai 220 ribu barel minyak per hari. Itulah kontribusi yang paling banyak. Sebelumnya, produksi minyak tertinggi dihasilkan Blok Rokan yang dikelola Chevron Pacific Indonesia. Angkanya berkisar 210 ribu barel minyak per hari.

"Tapi, disalip EMCL yang lebih dari 200 ribu barel minyak per hari. Bahkan, produksi Rokan turun menjadi 190 ribu barel" tegas Dwi Lantaran kapasitas produksi Blok Cepu berubah, EMCL perlu merevisi Analisis Dampak Lingkungan (AMDAL). Berdasar hasil tes uji coba kapasitas maksimal, produksi 235 ribu barel minyak per hari masih aman. 

"Tes sudah dilakukan. Masih menunggu mendapatkan izin beroperasi di level itu" ujar Dwi.

Presiden ExxonMobil Cepu Limited Louise McKenzie mengungkapkan, produksi minyak di Blok Cepu berkontribusi 25 persen terhadap nasional. 

"Nomor satu di Indonesia. Karena itu, kami bakal terus melanjutkan produksi" tuturnya.

Sambil menunggu turunnya izin amdal pada peningkatan produksi menjadi 235 ribu barel minyak per hari, dia sudah menyiapkan fasilitas yang sesuai dengan kemampuan produksi di lapangan Kedung Keris yang mencapai 10 ribu barel. Kegiatan produksi minyak dari proyek Kedung Keris merupakan kerja sama antara ExxonMobil Cepu Limited (EMCL) dan para mitra Blok Cepu. Yakni, PT Pertamina EP Cepu dan Badan Kerja Sama Participating Interest (PI) Blok Cepu.

"Kami akan terus mengevaluasi kemampuan dan kinerja dari sumur Kedung Keris" kata McKenzie.

Kontrak rekayasa, pengadaan, dan konstruksi proyek Kedung Keris dengan nilai investasi mencapai USD 76 juta dikerjakan PT Meindo Elang Indah. Proyek itu terdiri atas tapak sumur untuk operasi satu sumur dan pipa bawah tanah berdiameter 8-inci. Pipa tersebut menjulur sepanjang 15 kilometer dan tersambung dengan fasilitas pengolahan pusat Banyu Urip. Kepala Dinas ESDM Jatim Setiadjit menegaskan, Pemprov Jatim siap mendukung peningkatan produksi minyak di wilayahnya. 

"Jika ada pengajuan pembuatan amdal karena peningkatan produksi, kami bakal fasilitasi dan percepat" jelasnya.

Jawa Pos, Page- 5, Wednesday, Dec 18, 2019

The Kedung Keris Project makes the biggest oil-producing Cepu Block

ExxonMobil Cepu Limited (EMCL) commenced the operation of the Kedung Keris Field, Cepu Block with peak production of 10 thousand barrels per day (BPD). This field will strengthen the position of the Cepu Block as the largest oil producer in Indonesia, shifting the position of the Rokan Block which is worked on by PT Chevron Pacific Indonesia (CPI).

PT Chevron Pacific Indonesia (CPI)

Cepu, we have increased oil production. Hopefully next year there will be an additional 10 thousand BPD, so the difference in production will be further increased compared to Rokan, "said Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto when inaugurating the operation of the Kedung Keris Field.

The Rokan Block

The Rokan Block currently produces around 190 thousand BPD of oil. While Cepu Block's production is around 219 thousand BPD. Next year, the production of the Rokan Block is projected to fall because before the contract expires. On the contrary, oil production from the Cepu Block is getting higher with the operation of the Kedung Keris Field.

Louise McKenzie

The existence of the Kedung Keris project can even increase the production of the Cepu Block to 235 thousand BPD. ExxonMobil Cepu Limited President Louise McKenzie added that the Kedung Keris Field had been producing oil since November 22, ahead of schedule. At present oil production from this field is still around 5,000 BPD and will increase gradually until it reaches a peak of 10,000 BPD.

the Cepu Block

"This production will help maintain the average production of the Cepu Block which currently produces more than 25% of the national oil production which also makes ExxonMobil the number one oil producer in Indonesia," Louise McKenzie said.

EPC Kedung Keris Field Bojonegoro

The Engineering, Procurement, and Construction (EPC) contract of the Kedung Keris Project was carried out by PT Meindo Elang Indah, a local Indonesian company. The project with an investment value of US $ 76 million consists of a well site for the operation of one well and an 8-inch 8-inch underground pipeline connected to the Banyu Urip Central Processing Facility.

Kedung Keris Field BY EXXONMOBIL

Kedung Keris Field was discovered in 2011, about 15 kilometers east of the Banyu Urip Field. Based on the current evaluation, oil reserves from the Kedung Keris Field are estimated to reach 20 million barrels of oil. The two fields are located in the Cepu Block, where ExxonMobil Cepu Limited acts as the operator.

Dwi Soetjipto

Dwi continued, from the maximum production trial results, the Cepu Block production facility could produce oil up to 235 thousand BPD in safe conditions. However, the increase in production of the Cepu Block is still awaiting approval of the revised Environmental Impact Analysis (EIA). The reason is that the Amdal currently only lists a maximum production of 220 thousand BPD. Therefore, he hopes the local government can help facilitate the provision of EIA recommendations related to changes in production figures.

"It was concluded that production of 235 thousand BPD was in a safe position. Now how do we get permission to operate at that level," Dwi said.

the Banyu Urip Field

It will continue to help ExxonMobil to continue to increase production and increase exploration. As long as the Amdal revision approval has not yet been obtained, oil production from the Banyu Urip Field must be reduced following the operation of the Kedung Keris Field. This is so operating activities Cepu Block does not violate the existing EIA.

Oil production from the two fields can only be optimized after the new AMDAL is approved. Thus, his party could not be sure when the Kedung Keris Field reached peak production. However, the production of the Cepu Block did not necessarily be boosted to reach 235 thousand BPD.

"When we operate [Cepu Block], we will pay attention to various things, including facilities, reservoirs, etc. For running at 235 thousand BPD, it is not certain. We must pay attention to everything," Dwi said.

McKenzie added, the EIA approval process was still in progress. Not long ago, it has held a technical study with the Ministry of Environment and Forestry (KLHK). Furthermore, his party will carry out community studies.

"This process has many stages, but it is hoped that [EIA] will come out within a month or two," he said.

Strengthen the Region

According to Dwi, the operation of the Kedung Keris Field will generate a gross income of around Rp 3.3 trillion per year. But not only that, if it continues, this gross income will also contribute to the economic conditions of the country and the region. In addition, increasing oil and gas production in the East Java region is also important to meet the energy needs in this region. Because the industry in East Java is growing very high.

After East Java has become the largest oil-producing region in Indonesia, it will also boost gas production in this region. At present oil production in this region reaches more than 25% of national production.

"We are making arrangements to be able to meet the needs of gas in East Java, there are projects in the Madura Strait. So we emphasize to meet the needs of East Java. Hopefully, it will not disturb investors in East Java," Dwi said.

The Head of the East Java Office of Energy and Mineral Resources (ESDM) Setiaji appreciated the commencement of oil production from the Kedung Keris Field. Moreover, this operation boosts oil production in its region to 305 thousand BPD. The realization of this production reaches around more than 30% of national production.

He hopes that if there are still new fields that can be offered, the company can work on the oil and gas field. This is to encourage oil and gas production in East Java. On the contrary, it promises convenience for oil and gas companies.

"Maybe there are new licenses and Amdal, if there are difficulties, we ask that we can come and we will facilitate and speed up," said Setiaji.

Referring to SKK Migas data, this year, Cepu Block oil lifting is targeted at 216 thousand BPD. Until the end of September, the realization of Cepu Block oil lifting has exceeded the target, which is 216,011 thousand BPD. This Cepu Block oil production increased compared to the end of last year of 209 thousand BPD.

Meanwhile, the amount of reserves that can be produced (recoverable reserve) in the Cepu Block is currently recorded at 823 million barrels. This reserve is higher than initially estimated in the development plan (POD) of 450 million barrels.

IN INDONESIA

Proyek Kedung Keris Jadikan Blok Cepu Penghasil Minyak Terbesar

ExxonMobil Cepu Limited (EMCL) memulai pengoperasian Lapangan Kedung Keris, Blok Cepu dengan puncak produksi 10 ribu barel per hari (bph). Lapangan ini akan memperkuat posisi Blok Cepu sebagai penghasil minyak terbesar di Indonesia, menggeser posisi Blok Rokan yang digarap PT Chevron Pacific Indonesia (CPI).

Cepu, kita punya produksi minyak meningkat. Semoga tahun depan bisa tambahan 10 ribu bph maka bedanya produksi semakin jauh meningkat dibandingkan Rokan," kata Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetjipto ketika meresmikan beroperasinya Lapangan Kedung Keris.

Blok Rokan saat ini memproduksi minyak sekitar 190 ribu bph. Sementara produksi Blok Cepu sekitar 219 ribu bph. Tahun depan, produksi Blok Rokan diproyeksikan turun lantaran menjelang kontrak berakhir. Sebaliknya, produksi minyak dari Blok Cepu semakin tinggi dengan telah beroperasinya Lapangan Kedung Keris. 

Keberadaan proyek Kedung Keris bahkan bisa meningkatkan  produksi Blok Cepu sampai 235 ribu bph. Presiden ExxonMobil Cepu Limited Louise McKenzie menambahkan, Lapangan Kedung Keris telah menghasilkan minyak sejak 22 November lalu, lebih cepat dari jadwal. Saat ini produksi minyak dari lapangan ini masih sekitar 5 ribu bph dan akan naik bertahap hingga mencapai puncak produksi 10 ribu bph.

"Produksi ini akan membantu mempertahankan rata-rata produksi Blok Cepu yang saat ini menghasilkan minyak lebih dari 25% dari produksi minyak nasional yang juga menjadikan ExxonMobil produsen minyak nomor satu di Indonesia," Kata Louise McKenzie.

Kontrak rekayasa, pengadaan dan konstruksi (engineering, procurement, and construction/EPC) Proyek Kedung Keris dilaksanakan PT Meindo Elang Indah, perusahaan lokal Indonesia. Proyek dengan nilai investasi US$ 76 juta terdiri dari tapak sumur untuk operasi satu sumur dan pipa bawah tanah berdiameter 8 inch sepanjang 15 kilometer yang tersambung dengan Fasilitas Pengolahan Pusat Banyu Urip. 

Lapangan Kedung Keris ditemukan pada 2011, sekitar 15 kilometer sebelah timur Lapangan Banyu Urip. Berdasarkan evaluasi saat ini, diperkirakan cadangan minyak dari Lapangan Kedung Keris mencapai 20 juta barel minyak. Kedua lapangan tersebut terletak di Blok Cepu, di mana ExxonMobil Cepu Limited bertindak sebagai operator.

Dwi melanjutkan, dari hasil uji coba produksi maksimal, fasilitas produksi Blok Cepu bisa menghasilkan minyak hingga 235 ribu bph dalam kondisi aman. Namun, peningkatan produksi Blok Cepu ini masih menunggu persetujuan revisi Analisis Dampak Lingkungan (Amdal). Pasalnya, Amdal yang ada saat ini hanya mencantumkan produksi maksimal sebesar 220 ribu bph. Karenanya, pihaknya berharap pemerintah daerah setempat dapat membantu mempermudah pemberian rekomendasi Amdal terkait perubahan angka produksi tersebut.

"Disimpulkan produksi 235 ribu bph dalam posisi aman. Sekarang bagaimana kita mendapat izin untuk beroperasi di level itu," ujar Dwi.

Pihaknya sendiri akan terus membantu ExxonMobil untuk terus menambah produksi dan meningkatkan eksplorasi. Selama belum memperoleh persetujuan revisi Amdal, maka produksi minyak dari Lapangan Banyu Urip terpaksa diturunkan menyusul beroperasinya Lapangan Kedung Keris. Hal ini agar kegiatan operasi di Blok Cepu tidak melanggar Amdal yang ada. 

Produksi minyak dari kedua lapangan baru dapat dioptimalkan setelah Amdal yang baru disetujui. Sehingga, pihaknya tidak dapat memastikan kapan Lapangan Kedung Keris mencapai puncak produksi. Meski demikian, produksi Blok Cepu disebutnya tidak lantas digenjot mencapai 235 ribu bph.

"Pada saat kami mengoperasikan [Blok Cepu] akan memperhatikan berbagai hal baik fasilitas, reservoir, dan lain sebagainya. Untuk running di 235 ribu bph, belum tentu. Kami harus perhatikan semuanya," ujar Dwi.

McKenzie menambahkan, proses pengajuan persetujuan Amdal masih berlangsung. Belum lama ini, pihaknya telah menggelar kajian teknis dengan Kementerian Lingkungan Hidup dan Kehutanan (KLHK). Selanjutnya pihaknya akan melaksanakan kajian masyarakat.

"Proses ini ada banyak tahapan, tetapi harapannya [Amdal] akan keluar dalam satu atau dua bulan ini," tutur dia.

Perkuat Daerah

Menurut Dwi, pengoperasian Lapangan Kedung Keris akan menghasilkan penghasilan kotor sekitar Rp 3,3 triliun per tahun. Namun tidak hanya itu, jika terus berjalan, pendapatan kotor ini juga akan memberi kontribusi pada kondisi ekonomi negara dan daerah. Selain itu, peningkatan produksi migas di wilayah Jawa Timur juga penting untuk memenuhi kebutuhan energi di wilayah ini. Pasalnya, industri di Jawa Timur tumbuh sangat tinggi. 

Setelah Jawa Timur menjadi daerah produsen minyak terbesar di Indonesia, pihaknya juga akan turut menggenjot produksi gas di wilayah ini. Saat ini produksi minyak di wilayah ini mencapai lebih dari 25% produksi nasional.

"Kami sedang melakukan pengaturan agar dapat memenuhi kebutuhan gas di Jatim, ada proyek di Selat Madura. Maka kami tekankan untuk memenuhi kebutuhan Jawa Timur. Semoga tidak mengganggu investor di Jawa Timur," kata Dwi.

Kepala Dinas Energi dan Sumber Daya Mineral (ESDM) Jawa Timur Setiaji mengapresiasi dimulainya produksi minyak dari Lapangan Kedung Keris. Apalagi, pengoperasian ini mendongkrak produksi minyak di wilayahnya menjadi 305 ribu bph. Realisasi produksi tersebut mencapai sekitar lebih dari 30% dari produksi nasional. 

Pihaknya berharap, jika memang masih ada lapangan baru yang bisa ditawarkan, perusahaan dapat menggarap lapangan migas tersebut. Hal ini untuk mendorong produksi migas di Jatim. Sebaliknya, pihaknya menjanjikan kemudahan bagi perusahaan migas.

"Barang kali ada perizinan dan Amdal baru, kalau ada kesulitan, kami mohon untuk dapat datang akan kami fasilitasi dan percepat," kata Setiaji.

Mengacu data SKK Migas, pada tahun ini, lifting minyak Blok Cepu ditargetkan sebesar 216 ribu bph. Sampai akhir September lalu, realisasi lifting minyak Blok Cepu tercatat telah melampaui target, yakni sebesar 216.011 ribu bph. Produksi minyak Blok Cepu ini naik dibandingkan realisasi sampai akhir tahun lalu sebesar 209 ribu bph.

Sementara itu, besaran cadangan yang dapat diproduksikan (recoverable reserve) di Blok Cepu saat ini tercatat mencapai 823 juta barel. Cadangan ini lebih tinggi dari yang awalnya diperkirakan dalam rencana pengembangan (plan of development/POD) sebesar 450 juta barel.

Investor Daily, Page- 9, Wednesday, Dec 18, 2019

Pertamina Prepares US $ 150 Million for Acquisition

PT Pertamina continues its planned merger and acquisition (M&A) of the oil and gas block. The state-owned oil company is allocating around the US $ 150 million as capital expenditure or CAPEX in 2020 for the acquisition of the M&A action.

Fajriyah Usman

PT Pertamina Vice President Corporate Communication, Fajriyah Usman, said mergers and acquisitions are part of Pertamina's inorganic upstream business development strategy.

"In accordance with Pertamina's growth strategy, mergers and acquisitions are part of that strategy. Therefore, Pertamina Prepares US $ 150 Million for Acquisitions has budgeted funds for mergers and acquisitions of that number (US $ 150 million)," said Fajriyah.

This strategy is a follow-up to the government's instructions so that Pertamina continues to increase oil production from abroad. This is to reduce oil imports which have been weighing on the current account. This year, Pertamina is targeting to bring in 8 million barrels of oil from oil and gas blocks abroad. That number increased by 1 million barrels from the previous year. So far, Pertamina has 12 oil and gas blocks abroad.

Nicke Widyawati

Previously, President Director of PT Pertamina, Nicke Widyawati, said that his party had tried the acquisition of oil and gas blocks in Abu Dhabi, United Arab Emirates. The reason is that the oil and gas block has entered the production stage.

"Our overseas acquisitions focus on blocks that have already been produced. We have explored Abu Dhabi, we are trying to enter," said Fajriyah.

According to Nicke, the selection of oil and gas blocks that are already in production has many advantages. Besides producing oil faster and reducing imports, productive oil and gas blocks reduce company risk. It's known, Pertamina is still haunted by the case of former Pertamina's Managing Director, Karen Agustiawan, related to M&A in the Basanta Manta Gummy (BMG) Block. 

     Therefore, Nicke said that this acquisition will also hold law enforcement agencies, starting from the planning process to the completion of the acquisition.

"To reduce that risk, in addition to the acquisition of oil and gas blocks that have been produced, we also cooperate with law enforcement officers, so that no one is left behind," Nicke said.

Deputy BUMN Minister Budi Gunadi Sadikin said Pertamina's financial position was in a healthy condition to carry out corporate actions or investment agenda, including to carry out this acquisition. This was indicated by the amount of earnings before interest, taxes, depreciation and amortization (EBITDA) or Pertamina's income before interest, taxes, depreciation and amortization in 2018 which reached around US $ 9 billion.

"Pertamina's financial condition is very healthy, there is no financial problem for Pertamina to invest," said Budi.

IN INDONESIA

Pertamina Menyiapkan US$ 150 Iuta untuk Akuisisi

PT Pertamina melanjutkan rencana merger dan akuisisi (M&A) blok minyak dan gas bumi. Perusahaan miyak milik pemerintah ini mengalokasikan dana sekitar US$ 150 juta sebagai belanja modal atau capital expenditure (capex) tahun 2020 untuk akuisisi aksi M&A tersebut. 

Vice President Corporate Communication PT Pertamina, Fajriyah Usman, mengatakan merger dan akuisisi merupakan bagian dari strategi pengembangan bisnis hulu Pertamina secara anorganik.

"Sesuai dengan strategi growth dari Pertamina, merger dan akuisisi merupakan bagian dari strategi tersebut. Oleh karena itu, Pertamina Menyiapkan US$ 150 Juta untuk Akuisisi telah menganggarkan dana untuk merger dan akuisisi sebesar angka tersebut (US$ 150 juta)," kata Fajriyah.

Strategi ini merupakan tindak lanjut instruksi pemerinbah agar Pertamina terus memperbesar produksi minyak dari luar negeri. Hal tersebut untuk mengurangi impor minyak yang selama ini membebani nerca transaksi berjalan. Tahun ini Pertamina menargetkan bisa memboyong sebesar 8 juta barel minyak dari blok migas di luar negeri. Angka tersebut meningkat 1 juta barel dari setahun sebelumnya. Sejauh ini, Pertamina memiliki 12 blok migas di luar negeri. 

Sebelumnya, Direktur Utama PT Pertamina, Nicke Widyawati, menyatakan pihaknya sudah menjajal akuisisi blok migas di Abu Dhabi, Uni Emirat Arab. Pasalnya, blok migas tersebut sudah memasuki tahap produksi. 

"Akuisisi luar negeri kami fokus ke blok yang sudah produksi. Kami sudah jajaki Abu Dhabi, kami coba masuk," kata Fajriyah.

Menurut Nicke pemilihan blok migas yang sudah berproduksi memberikan banyak keuntungan. Selain lebih cepat menghasilkan minyak dan mengurangi impor, blok migas yang produktif mengurangi risiko perusahaan. Maklumlah, Pertamina masih dihantui oleh kasus mantan Direktur Utama Pertamina, Karen Agustiawan, terkait dengan M&A di Blok Basker Manta Gummy (BMG) Australia. 

     Oleh karena itu, Nicke mengatakan bahwa akuisisi kali ini juga akan menggandeng penegak hukum, mulai dari proses perencanaan hingga tahap penyelesaian akuisisi.

"Untuk mengurangi risiko itu, selain akuisisi blok migas yang sudah produksi, kami juga bekerjasama dengan aparat penegak hukum, jangan sampai ada yang terlewat," kata Nicke.

Wakil Menteri BUMN Budi Gunadi Sadikin menyatakan posisi keuangan Pertamina berada dalam kondisi sehat untuk melakukan aksi korporasi atau agenda investasi, termasuk untuk melakukan akuisisi ini. 

    Hal itu ditandai dengan jumlah earning before interest, taxes, depreciation and amortization (EBITDA) atau pendapatan sebelum bunga, pajak, depresiasi dan amortisasi Pertamina di tahun 2018 yang mencapai sekitar US$ 9 miliar. 

"Kondisi keuangan Pertamina sehat sekali, tidak ada masalah keuangan bagi Pertamina untuk berinvestasi," kata Budi.

Kontan, Page-13, Monday, Dec 16, 2019

PHE Will Cut YYA-1 Platforms

PT Pertamina Hulu Energi ONWJ immediately cut the YYA-1 platform, the Yi Block Offshore North West Java Project in Karawang's north sea affected by an oil spill. PHE Director of Operation and Production Taufik Aditiyawarman said that currently, the cementing process is underway on the YYA-2 and 3. platforms. 

   For the YYA-1 well, the cementing process was completed on December 3, 2019, while in the next week the cementing of the YYA-2 and the wells will be completed. 3

"In the next week, the team will prepare the platform to be taken ashore," he said.

Taufik who is also the Commander Incident for handling oil spill events at YYA-1 Well explained that the process of cutting platforms and moving them ashore can be carried out after the situation has been declared safe by the KPLP (Indonesian Sea and Coast Guard Unit) and KSOP (Kesyahbandaran and Port Authority).

As for moving the YK PHE Pavilion, it has not yet explained the technology used, considering the total weight reaches 800 tons. Taufik admitted, currently, the largest crane capacity is only 600 tons. Although it must be dismantled, some parts of this platform may still be used.

The dismantling of the platform is needed considering that in the seabed where the bridge is located a sewer has formed due to the presence of gas bubbles that appear at the beginning of the oil burst emerging from the YYA-1 well. 

   This condition does not allow the platform to remain in the same location. Taufik said that his company had spent around the US $ 156 million by the end of 2019 as part of the prevention of oil spills in the YYA-1 well.

"Estimates to completion, until the recovery of US $ 225 million," he added.

The allocation of funds incurred can come from company expenses, insurance, or other cost reductions. Meanwhile, Taufik said PHE prepared relief wells instead of YYA-1 wells which were targeted to produce in 2021. Relief wells had previously succeeded in becoming a means of closing leaks at YYA-1 wells. Its existence and the theoretical side can be utilized to produce the remaining oil and gas reserves around the YYA well.

Relief Wells

To become a production well, PHE is conducting a study that is being done is to calculate the remaining oil and gas reserves and how much it really costs. But he ensured that if relief wells were used as production wells, the cost would not be too great. The YYA-1 well, which is certain to not be produced again once it is permanently closed. Previously, PHE will conduct project development in the YYA-2 and YYA-3 Wells.

Bisnis Indonesia , Page-24, Monday, Dec 16, 2019