PGN Ready to Supply Gas for Kendal Industrial Estate

 

    PT Perusahaan Gas Negara Tbk (PGN) is ready to develop gas infrastructure and services to meet the needs of the Kendal Industrial Estate (KIK) in Central Java. This step is to foster economic activity through new industries in the region.

    PGN's Director of Infrastructure and Technology Redy Ferryanto explained, since 2016, he has been studying gas demand in the KIK area. Referring to the latest developments, it is known that the demand for gas in the region is quite large. PGN continues to coordinate intensively with KIK regarding the total potential gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

PT Pertamina EP Cepu (PEPC)

    The completion of the Gresik-Semarang transmission pipeline being worked on by PT Pertamina Gas (Pertagas) will provide certainty for gas supply in Central Java. This 267 kilometer (km) pipeline has a capacity of up to 400 million standard cubic feet per day / MMScfd. The gas supply will come from the Jambaran-Tiung Biru Project which is managed by PT Pertamina EP Cepu (PEPC). Later, his party will supply gas to KIK with the distribution network that is owned by the company.

the Jambaran-Tiung Biru Project

"As for the natural gas trade besides pipelines, such as CNG (compressed natural gas) and LNG (liquefied natural gas) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas)," he said. Redy.

    He hopes that the optimization of gas distribution infrastructure to meet industrial energy needs can have a positive impact on the growth of KIK and the surrounding community for the progress of the economy of Central Java.

"The KIK that the government has built is one of the potential areas that can grow faster with the availability of natural gas energy to accelerate regional economic development," said Redy.

    KIK has been designated as a Special Economic Zone (KEK). This area is being worked on by a joint venture company between PT Jababeka Tbk and Sembawang Corporation. Until now, there have been 64 companies from 8 countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia. The growth of the industrial center in KIK is expected to be able to generate Micro, Small, and Medium Enterprises (MSMEs) and open new jobs for the surrounding community.

Investor Daily, Page-10, Friday, Feb 26, 2021

Petronas Finds New Oil Reserves in Madura

 

    Petronas' subsidiary, PC North Madura II Ltd., managed to find oil reserves through the Hidayah-1 Exploration well in the North Madura II Working Area, which is located off the coast of East Java, Indonesia. 

Blogger Agus Purnomo in Petronas PC Ketapang II

    PC North Madura II Ltd. is the sole operator with a participating interest of 100 percent in the North Madura II Working Area. The drilling of the Hidayah-1 exploration well began on January 7, 2021, and has reached a depth of 2,739 meters.

    The Hidayah-1 well succeeded in finding a reservoir layer containing oil with good reservoir quality in the Ngimbang carbonate formation and having a flow test result of 2,100 barrels of oil per day (BOPD) with good oil quality.

"The results of the Hidayah-1 exploration well drilling will be further evaluated to determine the potential size of these reserves," said Emeliana Rice-Oxley, Petronas Vice President of Exploration, Upstream.

Emeliana Rice-Oxley

    She emphasized that the discovery of the Hidayah-1 Exploration well is a major proof of success for the North Madura II Work Area, which is proven by the potential for a reservoir layer containing oil in the area.

"This also encourages the development of promising exploration potential in Indonesia. We will always collaborate with the Indonesian government to realize clean and sustainable energy for Indonesia," She said.

                                Blogger Agus Purnomo in SKK Migas

"We are grateful for the great support provided by SKK Migas and the Sampang district government in the successful drilling of the Hidayah-1 exploration well. This discovery is evidence of Petronas' commitment to continuing the development of the upstream oil and gas business in Indonesia," added the President of PC North Madura II Ltd. Mohd Nazlee Rasol.

    Petronas is also the operator of the Bukit Tua Iapangan off the coast of East Java and is a partner of six other Cooperation Contractors located on the mainland and off the coast of Sumatra, Natuna, East Java, and Kalimantan.

Harian Bangsa, Page-4, Friday, Feb 26, 2021

Chevron Drills 12 Wells in the Rokan Block

 

    PT Chevron Pacific Indonesia has only drilled 12 wells in the Rokan Block, even though the transfer of management to PT Pertamina (Persero) only has 6 months left. Julius Wiratno, Deputy for Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), said that the number of wells drilled was an activity undertaken by Chevron since last year. He revealed that the drilling of the Rokan Block well had several problems.

the Rokan Block

“The condition of the field after the rain is very challenging and we haven't drilled in the Rokan block for several years. "Procurement of goods and materials for the time being that is running out is also a challenge in itself," he said.

Blogger Agus Purnomo in SKK Migas

    Meanwhile, SKK Migas has prepared steps so that drilling activities in the Rokan Block to hold down the rate of decline in production during the transition period can continue. Julius said that his party will soon be aggressive in looking for materials for drilling the well. According to Julius, his party will try to drill the Rokan Block as much as possible with the target of still being able to drill more than 100 wells by August 2021.

"In the process, well the hard looks are a bit difficult to find," he said.

    The drilling of the Rokan Block well is a commitment in the Head Of Agreement (HoA) on September 28, 2020, for investment during the transition period in the Rokan Block. Chevron will invest the US $ 154 million for drilling activities. 

    In 2021, Chevron will drill 101 wells with an estimated investment of US $ 143 million to increase production by 5,000 barrels of oil per day. If Chevron is unable to complete the Well drilling according to the target, then the work will be continued by Pertamina with an investment from Chevron.

    The teaching staff of Trisaksi University, Pro Agung Rakhmanto, is of the opinion that the realization of drilling 12 wells can be said to be very good progress during the transition period. This is because, based on experience with transitions in other oil and gas blocks, the transition process often does not take place smoothly. 

    As a result, activities, and efforts to maintain production only started when the transfer of management was actually in a new contract position. According to him, SKK Migas, Chevron, and Pertamina just need to continue the transition process, which is already progressing well.

"Do not have too many expectations that are not well-founded, because after all there is a consequence of slowing down operating activities and then a decline in production from a decision to transfer the management of an already operating oil and gas block to a new operator," he said.

    Meanwhile, the investment required to achieve and maintain production of 1 million barrels of oil per day and 12,000 MMscfd of gas is estimated to reach the US $ 2S0 billion in the next 10 years. Head of the SKK Migas Goods and Services Procurement Management Division Erwin Suryadi said this year, the list of procurement of goods and services that had been set was 1,482 packages with a total project value of US $ 6.05 billion.

"Based on this investment, it requires a system of procurement of goods and services that is effective, efficient, and capable of being a strong leverage to move the upstream oil and gas industry," he said.

    He said SKK Migas is working with the Indonesian Petroleum Association (IPA) to accelerate the completion of the tender process and strengthen synergy and collaboration with all stakeholders.

"The IPA Supply Chain Management Committee is expected to be able to bridge operational activities and fulfillment of the Domestic Component Level (DCL/TKDN)," he explained.

Bisnis Indonesia, Page-20, Friday, Feb 26, 2021

PGN Builds Gas Infrastructure in Kendal

 

    PT Perusahaan Gas Negara (Persero) Tbk is the sub-holding gas of PT Pertamina (Persero) supports the provision of infrastructure and natural gas distribution services in an effort to grow economic activity through new industries in the Central Java region. 

    One of the areas served by PGN is the Kendal Industrial Estate (KIK). KIK is a new industrial area that is the readiest in Indonesia with all the facilities. However, KIK is still having problems with certainty about the availability of natural gas which has made investors delay investing in this area.

    PGN's Director of Infrastructure and Technology, Redy Ferryanto, said that PGN has conducted a study on KIK, especially regarding gas demand since 2016. The latest developments show that gas demand in the region is very large. PGN continues to coordinate intensively with KIK regarding the potential total gas demand to be used.

"KIK will send an official letter to PGN regarding the complete total demand," said Redy.

    Redy said, PGN will strive to serve the natural gas trade through PGN's pipeline distribution network infrastructure in the Sales & Operation Region III (SOR III), which includes Central Java, East Java, and East Indonesia. Meanwhile, natural gas trading other than pipelines (CNG and LNG) will be managed by PGN's subsidiaries, namely PT Pertamina Gas Niaga (Pertagas Niaga) and PT Gagas Energi Indonesia (Gagas).

    In line with the completion of the construction of the Gresik-Semarang gas transmission pipeline by PT Pertamina Gas (Pertagas), Redy continued, PGN is targeting to be able to realize the certainty of distribution of natural gas supply in Central Java. 

    The 267 kilometers (km) long transmission pipeline network has a maximum gas flow capacity of around 400 million standard cubic feet per day (MMSCFD). The potential source of supply that will be supplied by the Gresik-Semarang Pipe comes from Jambaran Tiung Biru (JTB) owned by PT Pertamina EP Cepu (PEPC).

Jambaran Tiung Biru (JTB)

"Optimizing natural gas distribution infrastructure to meet energy needs for the industry is expected to have a positive impact on the growth of KIK and the surrounding community for the progress of the Central Java economy," said Redy.

    KIK has been designated as a special economic zone (KEK) as a result of a joint venture scheme collaboration between PT Jababeka Tbk and Sembawang Corporation. KIK was inaugurated by President Joko Widodo and Singaporean Prime Minister Lee Hsien Loong. To date, there are 64 companies from eight countries that have joined KIK, namely Taiwan, China, South Korea, Hong Kong, Singapore, Japan, Malaysia, and Indonesia in this ABTB product.

    The development of the industrial center in KIK is expected to be able to generate micro, small and medium enterprises (MSMEs) as well as open new jobs for the surrounding community. 

    According to Redy, the development of natural gas distribution infrastructure in Central Java is very challenging for PGN. Therefore, cooperation and support from the local government and various stakeholders are also very important for the development of natural gas infrastructure in Central Java.

Republika, Page-9, Thusday, Feb 25, 2021

Pertamina EP Ready to Exploration Kasuari Emas Well

 

    Pertamina EP Asset 4, a subsidiary of PT Pertamina (Persero), strives to meet national energy needs by continuing to carry out exploration activities to maintain energy availability for the next decades.

Pertamina EP Asset 4

"We at Pertamina EP remain optimistic about Indonesia's energy availability, and we are committed to continuing to explore, one of which is currently being prepared is the Kasuari Emas Exploration Well in the Bojonegoro Regency area," said Deddy Syam, General Manager of PT Pertamina EP Asset 4.

    Deddy also added that this exploration activity resulted in the discovery of large reserves so that it could extend the life of fossil energy in Indonesia.

"With exploration activities, we hope Pertamina will sustain and continue to operate to meet Indonesia's energy needs," said Deddy.

Blogger Agus Purnomo in SKK Migas

    Supporting Pertamina EP's activities, Nanang Abdul Manaf, SKK Migas Supervisory Commission expert explained that exploration is important because every barrel of oil production starts from one new Held Wildcat Well.

"Without exploration, don't expect new oil and gas reserves," said Abdul Manaf.

    He said further that the exploration could stimulate investors to come. Because Indonesia's oil and gas potential is still very large.

"Indonesia has 128 oil and gas potential basins. A total of 20 basins are already in production, 27 basins have been drilled with exploration discoveries, then 13 basins have been drilled without discoveries and the remaining 68 basins have not been explored", said Nanang Abdul Manaf.

    It's just that it's not easy to bring in investors because the upstream oil and gas industry is faced with challenges because the Easy Oil Era has run out. Meanwhile, 70 percent of oil and gas reserves are in the territorial waters. To carry out exploration requires very large costs, reaching 80-100 million US dollars [equivalent to Rp. 11.2 trillion to Rp. 14 trillion], and the rate of return or IRR is low and the exploration period is short.

    The Ministry of Energy and Mineral Resources has prepared a strategy to increase the investment attractiveness of oil and gas exploration, among others, increasing the prospect of oil and gas exploration, improving the investment climate through a fiscal approach, regulatory certainty, and political stability and security.

"With this strategy, it is hoped that Indonesia can get out of a critical situation to increase investment to meet the gap in Indonesia's energy needs in the middle of the energy transition phase towards the green energy era," he said.

Surya, Page-7, Wednesday, Feb 24, 2021

January, Upstream Oil and Gas Investment Reaches The US $ 8732 Million

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that the realization of upstream oil and gas investment in January 2021 reached US $ 873.2 million or 7.05 percent of this year's target of US $ 12.38 billion. This realization is better than the condition in January 2020 which was the only US $ 767.5 million.

Blogger Agus Purnomo in SKK Migas

    Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih said the investment achievement was after the successful completion of the accelerated completion of supporting documents for program implementation at the end of last year.

"So that the realization of investment in January 2021 is higher in number and percentage compared to the same period last year," said Susana.

    Susana explained that the investment realization in January was to support exploration and development activities. These exploration activities were carried out by PT Pertamina EP, PT Pertamina Hulu Mahakam (PHM), ENI East Sepinggan, PT Pertamina Hulu East Kalimantan (PHKT), and PT Pertamina Hulu Energi Offshore South East Sumatra (PHE OSES).

ENI

    Meanwhile, development activities in the form of Well drilling were carried out by PHM, ENI East Sepinggan, Pertamina EP, PT Pertamina Hulu Sanga-Sanga (PHSS), PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), Petronas Carigali Ketapang II, Exxon Mobile Cepu Limited EMCL, and BP Tangguh.

 Blogger Agus Purnomo in Petronas Carigali Ketapang II

    From the procurement aspect, the 2021 procurement list, which was completed at the end of last year, was able to accelerate the process of procuring goods and services this year.

"In addition, the highest number of procurement packages is in January 2021, so that KKKS (cooperation contract contractors) will have a longer time to carry out operations for upstream oil and gas management," said Susana.

    His party will continue to oversee upstream oil and gas investment this year, including related to licensing and procurement of goods and services. He hopes that the minimum procurement constraints can encourage optimal investment absorption. 

    In addition, his party will coordinate with the Investment Coordinating Board (BKPM) so that this year's upstream oil and gas activity plan can be carried out as planned. He is also optimistic that upstream oil and gas investment this year will be better than last year.

"As world oil prices improve, business players' optimism towards Covid-19 prevention and massive vaccination in various countries including Indonesia, the upstream oil and gas business climate this year will be much better than 2020," said Susana.

    The investment realization also has an impact on the smooth running of upstream oil and gas projects. Of the target of 12 upstream oil and gas projects this year, two projects have started operating in January, namely the KLD ONWJ Project with an investment of US $ 34 million and the gas supply project to the Balikpapan Refinery of US $ 27 million. This month, the US $ 46 million West Pangkah Project is scheduled to start operating.

Investor Daily, Page-10, Wednesday, Feb 24, 2021

Upstream Oil and Gas Investment is US $ 873.2 Million

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said the realization of upstream oil and gas investment in January 2021 was positive. Investment realization last month was recorded at the US $ 873.2 million or 7.05 percent of the investment target of US $ 12.38 billion this year. 

    Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih revealed that the realization of this investment was higher than the investment achievement in the same period in 2020 which amounted to the US $ 767.5 million or 5.55% of the annual target.

ENI

    Meanwhile, investment realization throughout January 2021 was used to support exploration activities, including by Pertamina EP, Pertamina Hulu Mahakam, ENI East Sepinggan, Pertamina Hulu East Kalimantan, and PHE OSES. In addition, this investment is also used to finance development activities. 

Exxon Mobile Cepu Ltd (EMCL)

    Primarily, the drilling of development wells, such as carried out by Pertamina Hulu Mahakam, Pertamina Hulu Sanga-Sanga, PHE ONWJ, ENI East Sepinggan, Pertamina EP, Petronas Carigali Ketapang II, Exxon Mobile Cepu Ltd (EMCL) and, BP Tanguh.

Blogger Agus Purnomo in Petronas Carigali Ketapang II

BP Tanguh

    Since discussing work, program, and budget (WP&B), SKK Migas claims to continue to coordinate with Cooperation Contract Contractors (KKKS), by conducting supervision and assistance with work program plans that have been approved in WP&B 2021. SKK Migas sees, accelerating the implementation of work programs in KKKS by endeavoring to complete the supporting documents for this year's program implementation has shown good results.

                                Blogger Agus Purnomo in SKK Migas

"So, the investment realization in January 2021 is higher in number and percentage compared to the same period last year, said Susana.

    SKK Migas and KKKS have also completed the 2021 procurement list at the end of 2020 and are also considered to have a positive impact on efforts to accelerate the process of procuring goods and services this year. 

    In addition, the highest number of procurement packages was in January 2021. As a result, KKKS will have a longer time to carry out operations for upstream oil and gas management. Susana explained, efforts to oversee upstream oil and gas investment were continuously carried out from various aspects, including licensing and procurement of goods and services. SKK Migas hopes that the absence of obstacles in the procurement process will contribute to optimal investment absorption.

    Indeed, investment requires support from various related agencies. On that basis, SKK Migas continues to carry out intensive coordination including with the Investment Coordinating Board (BKPM) so that the 2021 work program can be carried out according to the target. 

    SKK Migas is also optimistic that investment realization in 2021 will be better than in 2020. This is in line with the continuing improvement in world oil prices and optimism among business players towards the prevention of Covid-19.

"As well as the implementation of massive vaccinations in various countries including Indonesia, the upstream oil and gas business climate this year will be much better than in 2020," said Susana.

    The improved investment realization also had an impact on the smooth running of upstream oil and gas projects. Of the 12 onstream upstream oil and gas project targets, in January 2021 there were two onstream projects, namely the KLD ONWJ project with an investment value of US $ 34 million and the gas supply project to Pertamina Refinery Unit 5 Balikpapan with an investment value of US $ 27 million.

"In February 2021, the West Pangkah project is planned to be onstream with an investment of US $ 46 million," concluded Susana.

Kontan, Page-13, Tuesday, Feb 23, 2021

Pertamina is still selecting partners in the Rokan Block

 

    PT Pertamina ensures that the process of finding a strategic partner for the Rokan Block is still ongoing. Senior Vice President of Corporate Communications & Investor Relations of Pertamina. Agus Suprianto revealed that Pertamina is currently still conducting studies.

the Rokan Block Chevron

"The selection of a Strategic Partner for the Rokan block is currently still in the review and preparation stage," said Agus Suprianto.

    Agus still did not specify which oil and gas companies had submitted bids to become partners. On the other hand, for domestic electricity supply, Agus ensures that at this time it will still be carried out in accordance with the memorandum of understanding (MoU) signed with PT Perusahaan Listrik Negara (PLN). 

PT Perusahaan Listrik Negara (PLN)

    In addition to a number of preparations, Agus revealed that Pertamina also carried out contract mirroring for a number of supporting activities after the transfer of management in August 2021.

    President Director of PT Pertamina Hulu Rokan (PHR), RP Yudantoro, explained that the provision of these contracts was contracted previously used by PT Chevron Pacific Indonesia (CPI).

PT Chevron Pacific Indonesia (CPI)

"The majority of other contracts are provided by mirroring the current CPI contracts," said Yudantoro.

    Yudantoro continued to prepare for the drilling of 44 wells in the period August to December 2021 after the transfer of management, Pertamina will prepare around 6 rigs.

"The procurement of 6 rigs is ongoing," said Yudantoro.

Kontan, Page-13, Tuesday, Feb 23, 2021

Negotiations to be completed in March 2021

 

    The negotiation process between PT Chevron Pacific Indonesia and Eni for the transfer of management of the Indonesia Deepwater Development project is targeted to be completed by March 2021. 

PT Chevron Pacific Indonesia

    Deputy for Operations of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Julius Wiratno said that his party hopes the Indonesia Deepwater Development project (IDD) will immediately get new partners so that project implementation can be carried out quickly.

Blogger Agus Purnomo in SKK Migas

"It is hoped that the IDD will be completed by the end of March. Hopefully, the B to B will run smoothly, "he said.

    Chevron Pacific Indonesia Corporate Communication Manager Sonitha Poernomo said that his party is still working with SKK Migas and potential partners to continue realizing the potential of the IDD project.

Sonitha Poernomo

"However, according to policy we cannot provide detailed information on commercial negotiations," said Sonitha Poernomo.

    Head of SKK Migas Dwi Soetjipto said that Chevron had applied for a data opening permit to find new investors since July 2019 and was submitted again in February 2020. Dwi revealed that ENI was one of the most potential partners for the project.

"New operators can start proposing an extension of the Work Area and at the same time finalizing the discussion on the proposed revision of the IDD POD-I," he said.

    In other developments, SKK Migas noted that the realization of oil and gas investment as of January 2021 had reached the US $ 873.2 million. Acting Head of Program and Communication Division of SKK Migas Susana Kurniasih explained that the realization was 7.05 percent of this year's investment target of US $ 2.38 billion. This achievement is even better than the realization of investment in the same period last year which was valued at the US $ 767.5 million or 5.55% of the target.

Susana Kurniasih

    Susana explained investment realization during January 2021 was used to support exploration activities, including those carried out by Pertamina EP, Pertamina Hulu Mahakam (PHM), ENI East Sepinggan, Pertamina Hulu East Kalimantan, and PHE OSES. Investments are also used to finance development activities, particularly to finance development well drilling activities.

Bisnis Indonesia, Page-4, Tuesday, Feb 23, 2021

The Jumbo Oil and Gas Project Is Still Ongoing

 

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) ensures that several upstream oil and gas projects are still continuing. This is to support the achievement of oil production targets of 1 million barrels per day and natural gas 12 billion standard cubic feet per day by 2030.

the Merakes project 

    Deputy for Operations of SKK Migas, Julius Wiratno, said that major projects in the upstream oil and gas sector are still in the construction stage, some of which are expected to be completed by the end of 2021. One of them is the Merakes project which is being worked on by Eni East Sepinggan.

Eni

"We hope this project can be on stream in April with gas production of 380-400 mmscfd," he said.

the Jambaran Tiung Biru (JTB)

    There is also the Jambaran Tiung Biru (JTB) project that is being supported by SKK Migas and the government so that it can be on stream in November this year. In the future, the project managed by PT Pertamina EP Cepu (PEPC) will produce 350 mmscfd of gas.

    SKK Migas is also working on the Tangguh Train-3 project that BP Berau Ltd is working on to be on stream immediately at the end of this year or early next year.

Blogger Agus Purnomo in SKK Migas

    The project is indeed constrained from an operational perspective due to restrictions on social activities in the context of tackling the Covid-19 pandemic.

the Masela Block

"Other major projects such as Indonesia Deepwater Development (IDD) and the Masela Block are in the process of business-to-business discussions between contractors and their partners," said Julius.

Indonesia Deepwater Development (IDD) Chevron

    The IDD project is facing obstacles because its main investor, Chevron Pacific Indonesia, is reportedly leaving, even though this project should be targeted to be on stream in 2025.

Kontan, Page-10, Saturday, Feb 20, 2021