Chevron's Work Plan on Rokan Block has Potentially Revised

If the PT Chevron Pacific Indonesia scheme continues to invest in the Rokan Block is approved, the US oil and gas company work plan will be revised. The reason is, since 2018, Chevron no longer plans to drill new wells in the Rokan Block.

Dwi Soetjipto

The Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that he and Chevron Indonesia were currently reviewing the investment plan of the oil and gas company in the Rokan Block for this year and next year. This is related to efforts to keep oil production from oil and gas blocks in Riau from falling dramatically during the management transition period to PT Pertamina (Persero).

"If the scenario has been approved by the Minister of Energy and Mineral Resources (ESDM), Chevron's work plan and budget (WP&B) for 2020 and 2021 will adjust," he said.

the Rokan Block Chevron

The aforementioned scenario is related to investment options during the Rokan Block management transition. According to him, one of the options discussed was Chevron continue its investment in the Rokan Block until the contract is completed in 2021. For this reason, the company together with Chevron and PT Pertamina (Persero) as the new operator are still conducting discussions.

This refers to the direction of the government through the Minister of Energy and Mineral Resources (ESDM) with the target of continuing investment to optimize the Rokan Block oil and gas production in the transition period.

"We are targeting the first week of April 2020 there has been a decision," he said.

Dwi briefly explained, initially it focused on encouraging business to business negotiations between Pertamina and Chevron related to investment in transition period. Originally, Pertamina was the one who would issue funds and Chevron as the executor of its activities. However, he said that these negotiations could not continue.

So that his party looked for other alternatives so that investments in the transition period would not cease. One other option is that investment will still be made by Chevron with the acceleration of investment cost recovery (cost recovery). However, proposals related to this option must be submitted by a contractor (KKKS) contractor, namely Chevron.

"So this is still being discussed quickly later as to what, and what Chevron wants to be like," Dwi said.

Previously, Chevron admitted there had been no more investment in the form of drilling activities in the Rokan Block since 2018 because the contract was immediate used up. This policy is likely to last until the contract expires.

Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan had also stated that Chevron would continue investing in the Block Rokan This was discussed with the Ministry of Energy and Mineral Resources, SKK Migas, and Chevron in a video conference in mid-March. This too keep the production of the Rokan Block from going down significantly.

"Yesterday had a meeting with Chevron and SKK Migas and the Ministry of Energy and Mineral Resources. We agree that Chevron will continue this project until they are completed in August next year.

So the decline in production can be put on hold not to be very drastic, it is a good decision, "Dwi said.

Investor Daily, Page-9, Wednesday, April 8, 2020

First Quarter, Pertamina Oil and Gas Production Increases Slightly

PT Pertamina (Persero) recorded oil and gas production until the first quarter of this year of 919 thousand barrels of oil equivalent per day (barrel oil equivalent per day / boepd), up slightly compared to the realization of the same period last year of 901 thousand boepd. This year, Pertamina targets oil and gas production of 923 thousand boepd.

Pertamina Upstream Director Dharmawan Samsu said oil and gas production in the first quarter of 2020 was recorded at 919 thousand boepd, an increase of 2% compared to last year's average production. Specifically, oil production averaged 421 thousand Barrels Per Day (BPD), while gas production averaged 2,887 million standard cubic feet per day / mmscfd.

"By adjusting work systems and personnel to anticipate the Covid-19 pandemic, Pertamina is still working to keep oil and gas production in line with the targets in the RKAP (work plan and company budget). Until now, it has reached 99% of the target, "he said.

Dharmawan added, the positive performance of the company's oil and gas fields abroad. Pertamina's subsidiary, PT Pertamina International EP (PIEP) managed to contribute oil and gas production by 156 thousand boepd or 103% of the target for the first three months of 2020.

"The increase in production is mainly from field performance in Algeria," he added.

This year, Pertamina set oil and gas production targets of 923 thousand boepd which consisted of oil production of 430 thousand BPD and 2,857 gas mmscfd. When compared with this year's target, the company's oil production realization of 421 thousand BPD was only 97.9 percent of the target. While Pertamina's gas production is around 1% above the target. Dharmawan admitted that the 923 thousand boepd target was very challenging. To ensure oil and gas production targets can be achieved, he will ensure the drilling plan is carried out according to schedule.

"The production target of 923 thousand boepd is very heavy, because we have to make sure that drilling cannot be late," he said.

Pertamina's oil and gas production this year is planned to be obtained from the contribution of oil and gas production from Pertamina's upstream operations in the country amounting to 765 thousand boepd and 158 thousand boepd abroad. From foreign assets, oil production is targeted to increase slightly from 105 thousand BPD to 107 thousand BPD, and gas production will increase from 276 mmscfd to 298 mmscfd. While from the domestic oil and gas block, oil production is targeted at 323 thousand BPD 2,559 mmscfd gas.

For information, the company's oil and gas block assets in the country are managed through its subsidiaries, PT Pertamina Hulu Energi (PHE), PT Pertamina Hulu Indonesia (PHI), PT Pertamina EP, and PT Pertamina EP Cepu (PEPC). PHE targets oil production of 84 thousand BPD and 822 mmscfd of gas. While Pertamina EP set a target of oil production of 85 thousand BPD and 965 mmscfd of gas.

PT Pertamina EP Cepu (PEPC)

PHE plans a number of activities to achieve this year's target, namely drilling 51 development wells and 6 exploration wells, as well 50 wells. While Pertamina EP will drill 108 development wells and 10 exploration wells in 2020.

Anticipate a Global Situation

To anticipate the impact of the decline in world crude oil prices coupled with the Covid-19 pandemic, Dharmawan said, Pertamina take anticipatory steps by implementing a business continuity plan while continuing to conduct in-depth evaluations for prioritizing work plans, operating costs, and investments. This is in line with corporate policies to optimize financing.

"Pertamina continues to maintain the upstream investment level to meet national oil and gas needs, both in production and lifting, but with some adjustments based on priority scale so that the economics of the project can also be achieved," Dharmawan explained.

Pertamina also continues to monitor the development of the global situation, mainly the world price of crude oil, the rupiah exchange rate against the dollar, and the impact of the Covid-19 pandemic. Referring to Pertamina's data, of the total investment budget of the company this year of US $ 7.8 billion, most of it is allocated for upstream oil and gas investment amounting to US $ 3.7 billion. This upstream investment budget is up compared to last year.

ENI Block

Previously, Dharmawan revealed, the increase in upstream investment was partly because the development of the Merakes Field, East Sepinggan Block will begin in 2020. In this block, for information, Pertamina through PHE has a participating interest / PI of 15%. While the operator of this block is ENI. ENI was approved by the plan of development / POD in April last year.

Under the POD, ENI plans to drill six subsea wells and build an underwater pipeline system that will be connected to the floating production facility / FPU Jangkrik block in Muara Bakau Block. Referring to SKK Migas data, the Merakes Field is targeted to start operating in 2021. The peak of field production is estimated to reach 60,305 boepd.

Investor Daily, Page-9, Wednesday, April 8, 2020

Petroleum Production Still Continues

PT Pertamina Hulu Energi Offshore North West Java PHE ONWJ's activities, which operate off the north coast of West Java, continue to take place during the CoVid-19 pandemic situation.

Its production, around 28,000 barrels of oil per day. "Our activities on the ground continue as usual despite changes in crew changes, from every 12 days extended to every 28 days during the Covid-19 pandemic," said PHE ONWJ General Manager Cosmas Supriatna.

The number of workers in the field has also been reduced, from 1,200 to 970. In Indonesia, the Covid-19 pandemic has an impact on upstream oil and gas activities, in the form of declining oil and gas demand and hampered field operations.

Kompas, Page-10, Monday, April 13, 2020

Positive Pertamina Refinery Progress

PT Pertamina (Persero) continues to record positive progress to complete the construction of a national refinery to meet the targets set. The project, known as the Refinery Development Master Plan (RDMP) and Grass Root refinery (GRR) megaprojects, continues to be accelerated to pursue national energy security and independence, which is marked by the stop of imports of fuel oil (BBM) in 2026.

Fajriyah Usman

    Pertamina Corporate Communication Vice President Fajriyah Usman stated, the RDMP and GRR megaprojects showed very significant developments at each stage of development. The East Kalimantan Balikpapan refinery, up to the quarter 1-2020, has reached 15.02 percent, and by the end of this year it is targeted to reach 40 percent.

Meanwhile, the Balongan Refinery in West Java and the Cilacap Refinery in Central Java are each targeting 10 percent this year and will continue to be accelerated according to the target stages of development. In the context of acceleration, Pertamina has carried out a number of works, such as jetty construction, site development, workshop and warehouse construction, construction of laboratory buildings and Health, Safety, Security and Environment (HSSE), as well as other supporting facilities, "said Fajriyah Usman

Fajriyah explained, Pertamina had also completed the procurement of the main equipment, which took a long time to ensure the project went on target. At present the main equipment is in the process of making or manufacturing. In addition, negotiations with business partners and investors also continued well.

A number of memorandum of agreement and business agreements have been signed between Pertamina and various parties, such as The Abu Dhabi National Oil Company (ADNOC), Mubadala, 

Rosneft, K-Sure, and so forth. Including negotiations with Saudi Aramco also continues which is targeted to be completed by the end of April 2020.

Balongan RDMP Project, divided into three Phases. The Balongan Phase 1 RDMP development is currently in the Dual FEED Competition (DFC) stage with two consortia, namely the RRE Consortium (PT Industri Industri, PT Teknik Engineering, and PT Enviromate Technology International) and the JSW consortium, including J GC Indonesia, PT Synergy Engineering, and PT Wijaya Karya.

This process is targeted to be completed in May 2020. For Phase 2, a Feasibility Study is currently underway and the ARDHM Unit Revamp Study is currently underway. While for Balongan RDMP Phase 3 (New Refinery and Petchem Complex West Java), the Feasibility Study will be conducted with partners and are in the location and land acquisition.

Progress of Balongan Phase 3, currently in the process of procurement of land and partnership, namely Pertamina and ADNOC have signed a Memorandum of Understanding (MOU) for the development of the Petrochemical Integrated Complex in Balongan, West Java. The Plaju refinery is currently entering into a BED Licensor procurement, and is starting the BED Work. Meanwhile, Dumai RDMP is in the stage of conducting a Bankable Feasibility Study (BFS) revisit tender.

"Meanwhile, Tuban GRR has been completed with the land acquisition process and is in the process of payment. Pertamina and Rosneft have even signed a Tuban Refinery design contract with selected contractors on October 28, 2019. At present the Basic Engineering Design (BED) and Front End Engineering Design (FEED) have begun.

Land Clearing progress has reached 90.08 percent and restoration progress has reached 46.40 percent. The progress of General Engineering Design (GED) has reached 6.22 percent.

"With the support of all parties, the construction of the refinery is expected to run smoothly and be completed according to the targeted time so that we can be sovereign energy," said Fajriyah.

When the COVid - 19 pandemic that hit the world, Pertamina delivered the good news of oil and gas production in the first quarter of 2020 which recorded an increase of two percent compared to the average production in 2019.

Pertamina Upstream Director, Dharmawan Samsu stated, oil and gas production in the first quarter of 2020 recorded 919 million barrels of oil equivalent per day (MBOEPD), an increase of two percent compared to the average production in 2019 of 901 MBOEPD.

In detail, oil production averaged 421 thousand barrels per day (MBOPD), while gas production reached an average of 2,887 million standard cubic feet per day (MMSCFD).

"By adjusting work systems and personnel to anticipate the Covid-19 pandemic, Pertamina is still working to keep oil and gas production in line with the targets in the RKAP. Until now, it has reached 99 percent of the target, "said Pertamina Upstream Director, Dharmawan Samsu.

Dharmawan added, positive performance also came from oil and gas field operations operating abroad through a subsidiary of PT Pertamina International EP (PIEP) which successfully contributed oil and gas production by 156 MBOEPD or 103 percent of the 2020 Quarter-1 target.

"This increase in production is mainly from field performance in Algeria," Dharmawan said.

Republika, Page-9, Wednesday, April 9, 2020

Early April, SKK Migas Decides the Rokan Block Investment Scheme

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is targeting an investment scheme in the transition period for the management of the Rokan Block to be decided in early April. One of the options is Chevron Indonesia as the existing operator to continue investing in the transition period.

Dwi Soetjipto

The Head of SKK Migas Dwi Soetjipto said that he and Chevron and PT Pertamina (Persero) as the new operators were still discussing investment options during the Rokan Block management transition. One of the options discussed was Chevron continuing its investment in the Rokan Block until the contract was completed in 2021.

the Rokan Block

This refers to the direction of the government through the Minister of Energy and Mineral Resources (ESDM) with the target of continuing investment to optimize the Rokan Block oil and gas production in the transition period.

"We are targeting the first week of April 2020 there has been a decision," he said.

Dwi briefly explained, initially, his side focused on encouraging business to business negotiations between Pertamina and Chevron regarding investments in the transition period. Originally, Pertamina was the one who would disburse funds and Chevron as the executor of its activities. However, this negotiation the call cannot continue. 

So, he continued, his party looked for other alternatives so that investment in the transition period would not cease. One other option is that investment will still be made by Chevron with the acceleration of investment cost recovery (cost recovery). However, proposals related to this option must be submitted by a contractor (KKKS) contractor, namely Chevron.

"So this is still being discussed quickly, what will it be like, and what Chevron [wants it] to be," Dwi said.

Previously, Chevron admitted there had been no more investment in the form of drilling activities in the Rokan Block since 2018 because the contract would soon be exhausted. This policy is likely to last until the contract expires.

Luhut Binsar Pandjaitan

Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan had also stated that Chevron would continue

investment in the Rokan Block. He has discussed this with the Ministry of Energy and Mineral Resources, SKK Migas, and Chevron in a video conference on Tuesday (17/3). This also keeps the production of the Rokan Block from falling significantly.

"Yesterday had a meeting with Chevron and SKK Migas and the Ministry of Energy and Mineral Resources. We agree that Chevron will continue this project until they are completed in August next year. So the decline in production can be put on hold not to be very drastic, it is a good decision, "he said.

Investor Daily, Page-9, Monday, March 30, 2020 

Oil and Gas Businessmen Review Work Plans

The oil and gas industry players began to review all work plans, in line with the weakening of world oil prices to levels below the US $ 30 per barrel, the lowest since 2016.

With conditions inevitably the upstream oil and gas sector must carry out various strategies, including efficiency measures in order to remain viable.

Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman said that he continued to monitor developments in world oil prices, including proposals from the Cooperation Contract Contractors (KKKS). At present his party together with KKKS is still focused on existing production.

"We have prepared a policy, but we have not released it. What we see now is how the KKKS survive and profit and loss in the direct costs of production, "he said.

Based on Bloomberg data, at the beginning of this year, the price of West Texas Intermediate (WTI) oil reached US $ 61.18 per barrel until finally reaching the level of US $ 22.63 per barrel in trading Friday (20/3).

In line with that, Brent oil reached the level of US $ 66.25 per barrel at the start of 2020, until finally, it dropped to the level of US $ 26.98 per barrel in trading last week.

Meanwhile, on Thursday (March 26) until 14.32 WIB, WTI type oil prices for the May 2020 contract were exchanged Nymex is at the level of US $ 23.54 per barrel. Likewise with the price of Brent oil for the May 2020 contract on the ICE exchange corrected 0.83% to as low as the US $ 26.56 per barrel.

SKK Migas Deputy for Operations Julius Wiratno added, the weakening of world oil prices below the level of US $ 30 per barrel certainly had an effect on the performance of KKKS. For this reason, his party facilitated and tried to review massive efficiency measures, especially for KKKS that have high operating costs.

"We are discussing reviewing work programs that are not a priority so we immediately drop it," he explained.

Pertamina Hulu Energi's Managing Director Meidawati revealed that her office was reviewing all work plans and renegotiating the procurement of goods and services. 

    Not only that, but he also carried out efficiency related to operating cost budgets without disturbing costs associated with the health safety security environment (HSSE), costs that have a direct impact on production, as well as costs related to worker welfare.

"If oil prices are low, work plans can delay or cancel both exploration and development. What is clear is that we will prioritize the exploration and development drilling work plan whose risk is lower in the future, "said Meidawati.

For the production target, Pertamina Hulu Energi will continue to optimize its production activities so that this year's production target can be achieved despite the pressure.

"We will try our best. There are still 9 months to go, and we hope that all problems will end and the price of oil will return to the above US $ 50 per barrel, "said Meidawati.

POLICY PACKAGE

With the weakening of oil prices to below the level of US $ 30 per barrel, the government's policy package is certainly highly anticipated to support the sustainability of the upstream oil and gas sector. Executive Director of the Institute for Essential Services Reform (IESR) Fabby Tumiwa said, if the weakening of world oil prices occurs within the next 6 months, it is necessary to consider changing the formula for revenue sharing and other fiscal incentives.

According to him, this matter needs to be reviewed carefully by SKK Migas, the Ministry of Energy and Mineral Resources, and the Ministry of Finance.

"For the time being I have not recommended it, but for the study, it could be done pending the development of oil prices," he said.

Meanwhile for KKKS, Fabby argues, efficiency is the most appropriate strategy to be applied in the current conditions. The reason is that the average cost of oil production in Indonesia is the US $ 25 per barrel-US $ 30 barrels so that with the current oil price, KKKS can be said to be at a disadvantage because of the difficulty in getting profits.

"For KKKS in the current oil condition, it is necessary to carry out massive efficiency," he explained.

On the other hand, observers of the upstream oil and gas sector Tumbur Parlindungan assess the government's needs to make the ecosystem in the oil and gas sector more conducive and help facilitate all licensing. In addition, the government needs to hold activities that help KKKS to increase their production.

"In the end, there will be a merger or acquisition between oil and gas companies," he said.

Indonesian Petroleum Association Director Nanang Abdul Manaf said that if the weakening of oil prices is long-term in nature, it will later have an impact on all KKKS activities.

"Actually the price of oil below the US $ 30 per barrel has touched psychological numbers," he said.

According to Nanang, of course, incentives are needed because many projects are no longer economical with low oil prices.

Bisnis Indonesia, Page-8, Friday, March 27, 2020

Threatened to be Delayed, SKK Migas Monitor Tangguh Train 3

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) does not deny that there is a potential delay of the Tangguh Train 3 project by BP Berau Ltd due to the corona pandemic. For this reason, SKK Migas is ready to oversee the sustainability of this 3.8 million ton per year (MTPA) project.

SKK Migas Deputy for Operations Julius Wiratno said that in fact the project is still ongoing, especially in vital works. Nevertheless, the number of manpower and equipment logistics support is said to be an obstacle.

"Activities that enter the critical construction stage are still ongoing when there are limited personnel and supporting equipment because there are restrictions on the number of workers and physical distancing," explained Julius.

the Tangguh Train 3 project

At present, the Tangguh Train 3 project is entering the peak of the construction phase. The procurement of equipment is considered not so constrained. Because most of the tools needed have been brought to the project site. To be sure, the reduction in the number of workers has a major effect on the progress of completing construction

"The total workforce reached 13,000 last week, down to 10,000 and will continue to drop to 3,000 for core jobs, Julius said.

Nevertheless, he ensured that intensive coordination continued between the Cooperation Contract Contractor (KKKS) and SKK Migas. In the face of existing limitations, SKK Migas seeks to ensure that this project can remain on-line as targeted in the third quarter of 2021.

"Of course there will be negative impacts and there is the potential to be somewhat backward. While we anticipate and pay close attention, coordination has been very intensive," said Julius.

Kontan, Page-13, Friday, March 27, 2020

SKK Migas Seeks 12 Oil and Gas Projects This Year is Not Delayed

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) seeks to prevent 12 oil and gas projects scheduled to start production this year due to the widespread of the Corona Virus.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said that the Covid-19 pandemic, which was followed by a call for the community to remain at home, made the oil and gas operational schedule for the project shifted from the plan. From his observation, there is one oil and gas project which has the potential to be delayed from this year's operation to next year.

"But we are trying to minimize the shift. We will inform you more fully in mid-April, "he said.

SKK Migas

SKK Migas Deputy for Operations Julius Wiratno added that the oil and gas project development has the potential to be disrupted due to a change in crew and logistics supply. Nevertheless, he will continue to conduct intensive coordination to mitigate and carry out recovery plans for the oil and gas project. In fact, several projects he said had been operating.

Blogger Agus Purnomo in SKK Migas

"Of the 12 projects in 2020, there are already four projects that are on stream (starting operations), all according to schedule. Hopefully, everything can run smoothly, "he said.

Of these four projects, three are scheduled to be operational in the first quarter of 2020, namely the Grati Pressure Lowering Project with a capacity of 30 million cubic feet per day / mmscfd by Ophir Indonesia (Sampang) Pty Ltd, Buntal-5 45 mmscfd by Medco E&P Natuna Ltd, and Sembakung Power Plant by PT Pertamina EP.

While one more project was completed earlier than planned in the second quarter, the Randu Scissors Project with an estimated production of 3 mmscfd by PT Pertamina Hulu Energi Randu Gunting. In addition, there are eight other projects planned to operate this year.

Blogger Agus Purnomo in Petronas Carigali Ketapang

In the first quarter, Bukit Tua Phase-3 with an estimated production of 31.5 mmscfd by Petronas Carigali Ketapang II Ltd is planned to start operations. Furthermore, three projects will operate in the second quarter, namely 15 mmscfd Betung Compressors by PT Pertamina EP, Malacca Strait Phase-1 3,000 bpd by EMP Malacca Strait, and Meliwis 20 mmscfd by Ophir Indonesia (Madura Offshore) Pty Ltd.

In the third quarter of 2020, there were three oil and gas projects scheduled to operate. These three projects are the 2.4 mmscfd Beauty Project by PT Sele Raya Belida, the 150 mmscfd LP-MP Compressor by PT Pertamina EP, and Peciko 8A 8 mmscfd by PT Pertamina Hulu Mahakam. Finally, the Merakes Project by ENI Indonesia is scheduled to begin production in the fourth quarter of 2020. 

ENI

At the Merakes Field, ENI plans to drill six subsea wells and build an underwater pipeline system that will be connected to the floating cricket production facilities / Jangkrik FPU in Muara Bakau Block. The peak production of the Merakes Field is estimated to reach 60,305 barrels of oil equivalent per day / boepd.

the Merakes Field

In 2020, the national oil and gas lifting is set at 1.95 million barrels of oil equivalent per day / boepd, up slightly from last year's realization of 1.8 million boepd. Specifically, oil production rose to 755 thousand BPD from the realization of 746 thousand BPD, and gas to 1.19 million boepd from the realization of 1.06 million boepd.

Investor Daily, Page-9, Friday, March 27, 2020

Chevron will drill 100 wells

PT Chevron Pacific Indonesia is targeted to drill 100 wells in the Rokan Block, Riau Province, in line with the company's commitment to continue provocation in the oil and gas block until August 2021. 

    Deputy Head of SKK Migas Fatar Yani Abdurrahman revealed that the drilling target will start as early as November 2020 because it still has to wait for the procurement of rigs and equipment for long leads. He explained, at least Chevron will use 5-10 units of the rig until August 2021.

Chevron

"At least Chevron can drill approximately 100 wells with the normal cost recovery scheme as it is now. At the time of Pertamina

enter just to continue, "he said.

According to Fatar, the drilling that will be carried out by Chevron is an effort to hold the rate of decline so that it is not too drastic so that it can be continued by PT Pertamina (Persero).

"The number of investments is still being discussed in the revised Work Plan and Budget (WPB) 2020, depending on where the well will be drilled," he said.

Meanwhile, in 2019, the realization of the Rokan Block production will be 190,000 barrels of oil per day (Mbopd), exceeding the Work Program and Budget (WPB) of 185.3 Mbopd. In the same period, the use of cost recovery was recorded at US $ 1.62 billion from WPB approval of US $ 1.71 billion.

Meanwhile, WPB approval for cost recovery in 2020 is valued at US $ 1.89 billion with a production target in accordance with WPB of 161 Mbopd. Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the government had held a joint meeting between the Ministry of Energy and Mineral Resources, SKK Migas, and Chevron.

Luhut Binsar Pandjaitan

From the results of the meeting, according to Luhut, Chevron is committed to continuing the project in the Rokan Block until August 2021. 

the Rokan Block

Chevron Pacific Indonesia's Corporate Communication Manager Soenitha Poernomo said that her party continued to discuss with various parties to ensure the Rokan Block transition takes place smoothly.

Soenitha Poernomo

"We are grateful to the direction and initiative of the Government of Indonesia that provides solutions to invest in optimizing national oil production," said Soenitha Poernomo.

Bisnis Indonesia, Page-8, Tuesday, March 24, 2020

The Tiung Biru Jambaran Project Speeded Up

PT Pertamina EP Cepu (PEPC) decided to move fabrication into the country in order to ensure the continuation of the Jambaran Tiung Biru (JTB) project when the coronavirus spread in a number of countries.

Jamsaton Nababan

PEPC Managing Director Jamsaton Nababan said a number of equipment factories were scattered in a number of countries affected by the coronavirus. Even one part factory is located in Wuhan. For this reason, the move to the fabrication process has been carried out.

Covid-19

"There is one part fabricated in Wuhan. But we have taken a strategic step to move the fabrication to Indonesia with the permission of the licensor, "he said.

PT Pertamina EP Cepu (PEPC) 

By moving part of the fabrication process into the country, Jamsaton hopes that the potential for material delays can be minimized. PEPC also decided to use global scale inspector staff. 

    The Engineering Procurement and Construction (EPC) Contractor of the JTB Gas Processing Facilities (GPF), PT Rekayasa Industri (Rekind) claims, coordination has been ongoing. Managing Director of Rekind Yanuar Budinorman said coordination continues to be carried out in order to maintain the continuity of the project.

the Jambaran Tiung Biru (JTB) project 

"Long lead items have been purchased, are being processed in fabrication, large equipment is already on site. The project coordination is very good," he said.

Yanuar added that with a number of efforts, his side was optimistic that the JTB project's onstream target in July 2021 could be achieved.

"Construction has been delayed a little because of rain and recently the corona pandemic, we started to rebound in May," he explained.

For the sake of smoothing the acceleration plan, Rekind is ready to increase the workforce to 1,000 people in the next two months. Jamsaton added the acceleration of the project can be done considering that around 60% of material needs are already on site.

"From the drilling target of six wells, we have completed drilling of four wells," he said.

In addition, the construction of a 5-kilometer pipeline is underway and is targeted for completion in April 2021.

"For gas facilities, it is 54.94%. Until December the target is 94% for GPF, "said Jamsaton.

The Jambung Tiung Biru Project is a national strategic project with a total investment of US $ 1.53 billion.

Kontan, Page-14, Friday, March 20, 2020