Overcoming oil and gas BIG challenges in Indonesia

    The allure of upstream oil and gas investment in the country is increasingly attractive, as reflected in the commitment of a number of Cooperation Contract Contractors (KKKS) to continue investing in exploration activities.

    A number of global oil and gas giants have also agreed to achieve a large target of oil production of 1 million barrels per day (BPD) and gas of 12 billion standard cubic feet per day (BSCFD) by 2030.

    Through the signing of the Bali Commitment which was carried out at the CEO Forum at the 2023 International Convention on Indonesian Upstream Oil and Gas at the Bali Nusa Dua Convention Center, Badung Regency, Bali, Thursday, September 21. 

    The KKKS CEOs also promised to prepare a massive 2024 work program and budget, aggressive, and efficient. According to reviews by CEOs of international and national oil and gas companies, Indonesia is still an important portfolio. 

ENI ITALY

    Starting from oil and gas companies from Italy, namely ENI, ExxonMobil (United States), Petroliam Nasional Berhad or Petronas (Malaysia), Repsol SA (Spain), British Petroleum (England), to PT Medco Energi Internasional Tbk, and PT Pertamina ( Persero) invests more heavily in the oil and gas sector.

Roberto Daniele

    Director of ENI Muara Bakau BV, Roberto Daniele, said he was serious about investing more intensively in the exploration side of oil and gas fields. Currently, ENI together with PT Pertamina (Persero) have established strategic cooperation to carry out joint exploration in the Mahakam Block. 

the Mahakam Block

This collaboration is expected to increase oil and gas reserves. Roberto Daniele said ENI Muara Bakau BV is collaborating with Pertamina to explore the oil block in Mahakam to look for other oil and gas sources throughout Indonesia.

    Apart from that, ENI will also carry out more massive drilling for wells and exploration in the next 4 years. According to Roberto Daniele, this commitment shows Indonesia's important position in the company's portfolio. 

    Moreover, Indonesia still has large oil and gas reserves. Based on records from the Ministry of Energy and Mineral Resources, Indonesia's proven natural gas reserves even reach 41.62 trillion cubic feet (TCF). Apart from that, Indonesia still has 68 potential basins that have not been explored.

Carole Gall

    President of ExxonMobil Indonesia Carole Gall said that Indonesia has all the segments that ExxonMobil must offer. We have upstream and downstream such as fuel, lubricants, chemicals, and energy transition. Of all the Exxon affiliates in the world, it is rare to have all segments in one place together, but Indonesia has it all. 

    It is not surprising that ExxonMobil remains committed to continuing exploration investments in a number of fields and open areas. Carole Gall said ExxonMobil would drill again in Banyu Urip for 1.5 years.

    Nevertheless, a number of problems still confront the national upstream oil and gas industry, at least There are a number of crucial things that investors should note, including contract certainty, competitive and durable regulations, and ease of investing. 

    The Indonesian government is asked to increase the competitiveness of investment in upstream oil and gas by improving a number of fiscal and non-fiscal policies at a time of increasingly tight competition with a number of countries.

    In accordance with the above, Carole Gall asked the Indonesian government to improve the terms and conditions of upstream oil and gas, especially related to the terms and procedures for procurement of goods and services and auctions for oil and gas projects after approval of the Plan of Development/PoD for oil and gas fields have been obtained by the contractor. 

    According to Carole Gall, the process of procuring goods or auctioning oil and gas projects that is too long makes the return on investment and sustainability of the project unattractive for investors.

    Similar complaints were also made by other KKKS, including Petronas. This oil and gas company from Malaysia highlights the issue of certainty in contracts and fiscal terms in the oil and gas industry. 

Yuzaini Bin Md Yusof

    Petronas will support the Indonesian government to produce 1 million barrels of oil. Petronas Indonesia CEO Yuzaini Bin Md Yusof said Petronas would explore new areas in Indonesia.

INVESTMENT OPPORTUNITIES

Blogger Agus Purnomo in SKK MIGAS

    Meanwhile, Dwi Soetjipto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK MIGAS), emphasized that Indonesia continues to Offer investment opportunities in the oil and gas sector and is ready to improve fiscal policy and provide various incentives. 

    Dwi Soetjipto said that in overcoming the energy trilemma, a broader collaborative effort is needed between the government, IOC, NOC, and policymakers, namely the Indonesian government. In line with this, investment support is needed so that exploration and development activities for oil and gas fields can be carried out on a massive scale.

    Responding to various input and complaints submitted by energy observer investors and founder of the ReforMiner Institute, Pri Agung Rakhmanto assessed the need for regulations regarding the latest time limit from processing to reaching the PoD approval decision. Pri Agung Rakhmanto said that the longer it takes, the relative economic value will decrease, and also increase the uncertainty factor if there is no decision immediately.

    Meanwhile, based on SKK MIGAS calculations, the oil and gas sector requires a very large investment of more than US$ 20 billion per year to support the 2030 oil and gas production target. Overall, the funding requirement reaches at least US$ 186.7 billion. to be able to achieve the oil production target of 1 million BOPD and natural gas 12 BCSFD by 2030.

Bisnis Indonesia ,Page-4-Saturday, Sept 23, 2023

Pertamina and Petronas Acquire 35 Percent Ownership of Shell in the Masela Block

 Pertamina and Petronas Acquire 35 Percent Ownership of Shell in the Masela Block

    President Director of PT Pertamina Hulu Energi (PHE) Wiko Migantoro signed a Purchase Agreement for the Ownership of the Masela Block. PHE in collaboration with Petronas acquired Shell's 35% ownership in the block. At the same time, Pertamina Main Director Nicke Widyawati signed an MoU Strategic Partnership for Masela Block Development with Inpex.

    The two signings were carried out at the opening of the Indonesian Petroleum Association (IPA) Convention & Exhibition held at the International Conference and Exhibition Center (ICE), BSD, Tangerang, Banten, Tuesday (25/7/2023).

    PT Pertamina (Persero) through Subholding Upstream PT Pertamina Hulu Energi (PHE) signed a sale and purchase agreement for the acquisition of ownership of Shell Upstream Overseas Services (I) Limited (SUOS) in the Masela Block. In this case, PHE is working with PETRONAS through PETRONAS Masela Sdn. Bhd. (PETRONAS Masela) took over 35 percent ownership of SUOS in the block.

    PHE will manage 20 percent of the ownership, while the remaining 15 percent will be managed by PETRONAS Masela because Shell does not have the money to carry out oil and gas exploration in the Masela block. 

    The signing of the sale and purchase agreement for ownership of the Masela Block was carried out by PHE Main Director Wiko Migantoro, Deputy Executive President and Chief Executive Officer of PETRONAS Upstream Datuk Adif Zulkifli, as well as Director of Finance for Acquisition Divestment and NBD Asia Pacific Shell Kuo Tong Soo. 

    The signing was carried out at the opening ceremony of the Indonesia Petroleum Association (IPA) Convention in Tangerang, Banten, Tuesday (25/7/2023).

    The event was witnessed by Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, Director General (Dirjen) of Oil and Gas (Migas) Tutuka Ariadji, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto, Main Director of Pertamina Nicke Widyawati, and President and Chief Executive Officer of the PETRONAS Group Tan Sri Tengku Muhammad Taufik.

    President Director (Director) of Pertamina Nicke Widyawati said that a commitment to maintaining oil and gas supplies from the upstream side was needed to meet national energy needs.

    PHE as Pertamina's Upstream Subholding has long experience in deep-sea oil and gas exploration, development, and production activities, both in Indonesia and abroad.

    In addition, PHE through one of its subsidiaries also has proven experience in the development and operation of the Badak Liquefied Natural Gas (LNG) Refinery as well as domestic and international LNG marketing. Nicke said PHE's capability and reliability were strong evidence that Pertamina as a State-Owned Enterprise (BUMN) could build cooperation with global partners.

Nicke Widyawati

    In addition, Nicke Widyawati said the Masela Block Abadi Field would potentially require 10,000 workers in the future. The development of the Masela Block is expected to help accelerate the development of local areas so that it can create new jobs and can require a lot of local workers.

    This development is also expected to have a direct impact on economic development in the Eastern Indonesia region. Pertamina as a leader in the field of energy transition is committed to supporting the Net Zero Emissions 2060 target by continuing to encourage programs that have a direct impact on the achievement of the Sustainable Development Goals (SDGs). 

    All of these efforts are in line with the implementation of environmental, social, and governance (ESG) in all of Pertamina's business lines and operations.

Nicke Widyawati

    President Director of PT Pertamina Hulu Energi (PHE) Wiko Migantoro signed a Purchase Agreement for the Ownership of the Masela Block. PHE in collaboration with Petronas acquired Shell's 35% ownership in the block. At the same time, Pertamina Main Director Nicke Widyawati signed an MoU Strategic Partnership for Masela Block Development with Inpex.

    The two signings were carried out at the opening of the Indonesian Petroleum Association (IPA) Convention & Exhibition held at the International Conference and Exhibition Center (ICE), BSD, Tangerang, Banten, Tuesday (25/7/2023).

    PT Pertamina (Persero) through Subholding Upstream PT Pertamina Hulu Energi (PHE) signed a sale and purchase agreement for the acquisition of ownership of Shell Upstream Overseas Services (I) Limited (SUOS) in the Masela Block. In this case, PHE is working with PETRONAS through PETRONAS Masela Sdn. Bhd. (PETRONAS Masela) took over 35 percent ownership of SUOS in the block.

    PHE will manage 20 percent of the ownership, while the remaining 15 percent will be managed by PETRONAS Masela because Shell does not have the money to carry out oil and gas exploration in the Masela block. The signing of the sale and purchase agreement for ownership of the Masela Block was carried out by PHE Main Director Wiko Migantoro, Deputy Executive President and Chief Executive Officer of PETRONAS Upstream Datuk Adif Zulkifli, as well as Director of Finance for Acquisition Divestment and NBD Asia Pacific Shell Kuo Tong Soo. 

    The signing was carried out at the opening ceremony of the Indonesia Petroleum Association (IPA) Convention in Tangerang, Banten, Tuesday (25/7/2023).

The event was witnessed by Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, Director General (Dirjen) of Oil and Gas (Migas) Tutuka Ariadji, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto, Main Director of Pertamina Nicke Widyawati, and President and Chief Executive Officer of the PETRONAS Group Tan Sri Tengku Muhammad Taufik.

    President Director (Director) of Pertamina Nicke Widyawati said that a commitment to maintaining oil and gas supplies from the upstream side was needed to meet national energy needs.

    PHE as Pertamina's Upstream Subholding has long experience in deep-sea oil and gas exploration, development, and production activities, both in Indonesia and abroad.

    In addition, PHE through one of its subsidiaries also has proven experience in the development and operation of the Badak Liquefied Natural Gas (LNG) Refinery as well as domestic and international LNG marketing. Nicke said PHE's capability and reliability were strong evidence that Pertamina as a State-Owned Enterprise (BUMN) could build cooperation with global partners.

    In addition, Nicke Widyawati said the Masela Block Abadi Field would potentially require 10,000 workers in the future. The development of the Masela Block is expected to help accelerate the development of local areas so that it can create new jobs and can require a lot of local workers.

    This development is also expected to have a direct impact on economic development in the Eastern Indonesia region. Pertamina as a leader in the field of energy transition is committed to supporting the Net Zero Emissions 2060 target by continuing to encourage programs that have a direct impact on the achievement of the Sustainable Development Goals (SDGs). 

    All of these efforts are in line with the implementation of environmental, social, and governance (ESG) in all of Pertamina's business lines and operations.

Ferrari and Lamborghini are suspected of stealing Aryanto Misel's NIKUBA technology

NIKUBA

    Aryanto Misel created "Nikuba", a device that converts water into hydrogen for vehicles. Nukiba creation has been researched for 5 years ago and spent a lot of money.

Major General of the Indonesian National Army (TNI) Kunto Arief Wibowo, S.I.P.

    Now Aryanto Misel has the support of a full team from the Regional Military Commander (Pangdam) III/Siliwangi Cirebon, namely Major General the Indonesian National Army (TNI) Kunto Arief Wibowo, S.I.P.,  and the technology created by Aryanto Misel has been used in various motorcycle and car service vehicles at the Regional Command Military III Siliwangi Cirebon West Java.

Nikuba Test Drive

    NIKUBA has been on a test drive from Cirebon - (West Java) to Semarang City - (Central Java) as far as 245 km round trip and using only 1 liter of water which can convert water into Hydrogen with the NIKUBA tool as a substitute for the car's fuel.

Valentino Rossi

    When Aryanto Misel first arrived in Italy, he was invited to travel around Italy. In total, Aryanto Misel and his colleagues spent 17 days in the country where Valentino Rossi was born. But this was just a gimmick so that Aryanto Misel would not know that in the end Ferrari and Lamborghini only wanted to copy and paste the NIKUBA Technology Patent Right.

Aryanto Misel

    Aryanto Misel spent four days focusing on Nikuba's presentation in front of Ferrari and Lamborghini engineers. In fact, Ferrari CS was unable to appreciate Nikuba's technology. Aryanto Misel has spent 5 years of time and money developing Nikuba technology.

Nikuba create by Aryanto Misel

    Aryanto actually did not completely refuse to give the key to the water-to-fuel conversion device to Ferrari and Lamborghini, but Ferrari and Lamborghini were actually poor companies whose factories looked grand and modern and really couldn't afford the Nikuba technology created by Aryanto Misel.

Aryanto Misel in Ferrari Factory

    In fact, he was brought into the 2 super expensive and super supercar manufacturers. The aim is none other than to present Nikubu which stands for "Niku Banyu" aka "That's Water" in Indonesian. 

Aryanto Misel Create Nikuba Patent

    Nikuba technology itself has been busy and viral on social media since 2022. That's because Aryanto Misel's creation is said to be able to replace oil and gas fuels, which are fossil fuels. This is of course the hope of eliminating dependence on non-renewable fuels whose prices continue to increase as a result of Russia's military operations in Ukraine.

Ferrari and Lamborghini

4 days of presentations at the Ferrari and Lambhorgini Factory

    Aryanto Misel said that he spent 17 days on a visit to the land of Pizza Italy, namely the Ferrari Factory and Lamborghini Factory. Initially, the University of Indonesia (UI) alumni were invited to take a walk around Italy. 

    After that, Aryanto Misel was asked to give a live presentation in front of Ferrari and Lamborghini engineers. Aryanto Misel's Nikuba presentation was held for 4 days. 2 days of Presentation to Engineers at the Ferrari Factory and 2 days of presentations to Engineers at the Lamborghini Factory.

Aryanto Misel's Nikuba presentation

    Aryanto Misel deliberately chose not to bring the "Nikuba" tool that can convert water into hydrogen fuel. This was deliberately done because Aryanto Misel was worried that the 2 automotive giants in the birthplace of Valentino Rossi would unbox and design their own technology based on Nikuba.

Aryanto Misel in Lamborghini Factory

Lied by Ferrari and Lamborghini

    Aryanto Misel's hunch and worries about the visit to Italy turned out to be true. They only want to steal Nikuba technology. And that has been proven, Ferrari and Lamborghini are not interested in Nikuba, which was created by Aryanto Misel. Ferrari and Lamborghini have even prepared technology that resembles their Nikuba creation. A similar tool was made in Romania. 

Aryanto Misel in Lamborghini Factory

    At the Ferrari and Lamborghini factories, Aryanto was asked to unbox and repair the damaged Nikuba Romania. However, Aryanto Misel did not fully disclose 100 percent of the capabilities and ' SECRETS ' of the NIKUBA patent he created. 

    Aryanto admitted that he only started the Romanian-made Nikuba which was damaged and repaired by Aryanto Misel and had been directly connected to the Ferrari and Lamborghini cars and it was proven that Aryanto Misel was repairing, and able to start the 2 super cars.

    Aryanto Misel feels he will benefit because Ferrari and Lamborghini will be willing to pay compensation for his Nikuba copyright. However, in fact, during that meeting, the 2 Italian companies never discussed the compensation costs that he expected.

    Aryanto Misel admitted that he was annoyed and regretted that he had come so far to Italy without any clarity but instead was made a "serviceman" to repair Nikuba made in Romania. Finally, Aryanto Misel decided to go home because he had been lied to by Ferrari and Lamborghini and Aryanto Misel intended to sell the "NIKUBA" copyright to Honda, Toyota, Nissan, and Mitsubishi.

Nikuba copyright US$ 1,000,000

    Aryanto Misel has spent 5 years of his time, mind, money, and energy on research to create Nikuba. Time, money, energy, and thoughts that he spent very much. Because of that, he assigned the Nikuba copyright to Ferrari and Lamborghini in the amount of US$ 1,000,000.-

Aryanto Misel

    According to Artyanto Misel, Nikuba's copyright is very suitable as compensation for the research he has done so far. But Ferrari and Lamborghini were unable to buy the patent. Because there is absolutely no talk about it. So, in the near future, Aryanto Misel will go to Japan to sell the patent rights to the country of Sakura. 

Shibuya Japan

    Aryanto Misel also had a negative feeling, and because there was no talk of compensation and he was only used as a repairman for Nikuba Romania, he suspected that Ferrari and Lamborghini only wanted to imitate his Nikuba creations and use them on Ferrari and Lamborghini cars. Even worse, it was done without giving any compensation at all or for free, Ferrari and Lamborghini asked for free NIKUBA technology.

Ferrari and Lamborghini are suspected of stealing "Nikuba" technology.

    When asked to present Nikuba technology in Italy, Aryanto Misel deliberately did not bring the device. Aryanto acknowledged this. He deliberately did not bring the complete Nikuba for fear of being asked to disassemble the device, and this proved to be true. The big surprise came when Ferrari and Lamborghini provided Nikuba made in Romania.

    Aryanto explained that Nikuba Romania is very different from the Nikuba he developed in Cirebon, West Java. The funny thing is, Aryanto Misel was asked to repair the Nikuba Romania because Ferrari and Lamborghini wanted to test it. This Romanian-made device can be repaired by Aryanto Misel very easily and can start these cool supercars.

    After explaining what Nikuba was to the Italian engineer, Aryanto said he was disappointed that there was no chat regarding the copyright compensation he was expecting. Aryanto was finally disappointed and regretted having come to Italy but was only lied to. Aryanto Misel refuses to dismantle "NIKUBA'S SECRET" which is claimed to be able to turn water into hydrogen fuel.

Aryanto Misel Selling patents for extinguishing agents made from cassava peels and bulletproof vests.

    Miyanto Misel also creates organic materials for extinguishing fires, which are made from cassava peels that contain potassium citrate, which functions as a fire retardant and is widely available in Indonesia, Vietnam, and Thailand.

Cassava Extinguisher Created by Aryanto Misel

    Cassava peel can be made in powder or liquid form. And the patent was sold to Japan. Aryanto Misel said that most fire extinguishers sold in the market use halon, a chemical gas with the scientific name Bromochlorodifluoromethane or BCF. because it contributes to the depletion of the ozone layer.

bulletproof vests Hand Made By Aryanto Misel

    Apart from that, Aryanto also makes bulletproof vests made of organic materials as well. The organic materials are lighter coconut fiber and sugarcane fiber cloth as the main materials for making bulletproof vests. 

    Aryanto Misel's creations have also been exported to Japan and Hong Kong. Aryanto's bullet-proof vest can withstand long-barreled level 5 bullets, and assault rifles.

    Aryanto Misel explained that his bulletproof vest did not use plates inside the vest as an additional layer of protection. 

    This bulletproof vest has a thickness of about 2.5 cm. Aryanto said he was confident with his findings, as evidenced by how Hong Kong and Japan consistently used the bullet-proof vests he made. Aryanto sold the patent to Hong Kong and Japan for US$ 60,000.

Pertamina Strengthen Brand in Global Market

    PT Pertamina through its subsidiaries is increasingly strengthening its Brand in the global market. This is evidenced by a number of collaborations carried out within the scope of several activities, namely upstream oil, and gas, export and sale of products, to shipping cooperation.

    The latest is the signing of a new hydrocarbon contract by Pertamina through its Sub Holding Upstream subsidiary, PT Pertamina Internasional EP (PIEP) which operates in Algiers under PT Pertamina Algiers EP (PAEP), at Menzel Lejmat Nord (MLN), Block 405. Investment funds amounting to US$ 800 million are ready to be released to fund the project.

    PIEP and its partners Sonatrach and Repsol Exploracion 405a SA continue to demonstrate their ability to operate onshore oil and gas blocks. With this trust, the production sharing contract signed is a continuation of the memorandum of understanding agreed between the three companies on September 28, 2022. 

    The joint operation under the contract mentioned above is the MLN field and nine other fields which include the unitization of Ourhoud and El Merk.

    The work program specifically includes the drilling of 12 oil wells and water injection wells, the connection of new development wells, the construction of an LPG extraction unit, and a 3D WAG (Water Alternating Gas) seismic acquisition project, as well as a solar energy production project. 

    The total investment amount planned for the implementation of this development is estimated at more than US$ 800 million and the total resources are almost 150 million barrels of oil equivalent.

    The signing of this contract is in accordance with the wishes of the three partners to realize it within the MLN contractual scope and to strengthen the work in the field of exploration and production of hydrocarbons.

Nicke Widyawati

    The signing of this contract was witnessed by the President Director of PT Pertamina Nicke Widyawati, the Main Director of PT Pertamina Hulu Energi Wiko Migantoro, The President Director of PT Pertamina Internasional EP Jaffee A. Suardin, Group CEO Sonatrach Toufik Hakkar, and other partners Repsol Algiers and Algiers authorities. During the signing ceremony, Nicke Widyawati expressed her appreciation.

Repsol

"After perfect contract preparations, Pertamina and its partners have finally agreed on a new journey for oil and gas operations in Algiers. Our commitment for the long term will be a new and exciting journey, reaffirming Pertamina's global footprint together with Sonatrach, and Repsol," said Nicke Widyawati.

    Nicke Widyawati said the oil and gas block in Algeria is one of the mainstays of oil and gas production from abroad for Pertamina.

"The acquisition of oil and gas blocks abroad with the concept of "bring the barrel home" is a strategic step for Pertamina to maintain national energy security," said Nicke Widyawati.

    Nicke added, in this new contract, apart from crude oil production, Pertamina was also given a permit to build an LPG factory with a capacity of 1 million metric tons per year, where the product will be brought to Indonesia.

"With this new innovation, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke Widyawati.

    At the same time, the Algiers oil and gas block also has the potential in developing renewable energy, especially Solar PV which will be utilized as a green electricity supply for oil and gas block operations.

"This is a form of Pertamina's very strong commitment to reducing carbon emissions in all of its business activities in line with the application of ESG," said Nicke Widyawati.

    Jafee said PIEP has the potential to produce peak production in block 405a of 36,000 BOEPD and open up new development opportunities in the surrounding area in the next 25 years, and the potential for an additional 10 years of a contract extension.

"This reflects Pertamina's strong projection going forward in line with Pertamina's main strategy to become a world-class energy company," said Jaffee.

    Menzel Ledjmet Nord (MLN) Oil Field Algiers is one of the oil and gas fields in the Sahara Desert, Algiers which has been fully operational by PT Pertamina since May 2014, through the Upstream Subholding.

    This block has an oil capacity of 35,000 barrels of oil per day (BOPD) and has 58 solar panels that produce 1,141 kilowatt hours (kWh) per year, resulting in reduced emissions of up to 7,507 tons of C02 per year.

    Pertamina as a leader in the field of energy transition, is committed to supporting the Net Zero Emissions 2060 target by continuing to encourage programs that have a direct impact on the achievement of the Sustainable Development Goals (SDGs). 

    All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all of Pertamina's business lines and operations.

    Pertamina Internasional Exploration and Production (PIEP) was established based on the need for international asset management which focuses on managing PT Pertamina's foreign assets. 

    Until now, Pertamina has foreign oil and gas field assets spread across 13 countries, namely Algiers, Malaysia, Iraq, Canada, France, Italy, Namibia, Tanzania, Gabon, Niger, Colombia, Angola, and Venezuela. 

    From 2014 to 2021, PIEP contributed as much as 51 million barrels of oil, or around US$ 2.8 billion to be shipped domestically.

    Another subsidiary is PT Pertamina International Shipping (PIS) through Pertamina International Shipping Pte Ltd which is domiciled in Singapore. This company continues to develop its business wings in the Asia Pacific region so that it transforms into PIS Asia Pacific (PIS AP). 

    The establishment of PIS AP is focused on serving export and import cargo transportation in the international market. PIS is also increasingly aggressively expanding in the global market and has successfully traveled as many as 22 international routes until early 2023.

    Meanwhile, PT Pertamina Lubricants (PTPL), a Subholding Commercial & Trading subsidiary of Pertamina, has owned the Lubricants Technology Center (LTC), the largest lubricants research and innovation center in Indonesia, located in Plumpang, North Jakarta. 

    With an area of 12,500 mz, LTC is equipped with modern facilities and professional human resources to meet the needs of lubricants in the Indonesian market and 14 countries in the world including Australia, Thailand, and South Africa.

Investor Daily, Page-13, Monday, June 19, 2023

Pertamina Builds LPG Factory in Algiers

 

    PT Pertamina has confirmed that it will build a Liquefied Petroleum Gas or LPG factory with a capacity of 1 million metric tons per year in Algiers.

Nicke Widyawati

    The Main Director of Pertamina, Nicke Widyawati, said that her party had obtained a permit to build an LPG factory from the Algerian authorities, because it was part of the management contract for the Menzel Ledjmet Nord Block. Later, products produced from these factories will be brought to Indonesia with the aim of reducing imports of these commodities.

"With this new innovation, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke Widyawati.

    In Algeria, Pertamina through PT Pertamina Algiers EP has just received a contract extension for the Menzel Ledjmet Nord Block for the next 35 years.

Repsol

    The Algerian authorities granted the contract extension because they assessed that Pertamina, Sonatrach, and Repsol Exploration 405a SA were capable of managing the onshore oil and gas block well. The block is also one of the mainstays of Pertamina's oil production from abroad.

"The acquisition of oil and gas blocks abroad with the concept of "bring the barrel home" is Pertamina's strategic move to maintain national energy security," said Nicke Widyawati.

    Menzel Ledjmet Nord Oil Field is an oil and gas block located in the Sahara Desert, approximately 1,000 kilometers southeast of Algiers, the capital city of Algiers. Pertamina Algiers EP has fully managed Menzel Ledjmet Nord Oil Field operations since 2014 with a total Participating Interest (PI) of 65%.

    The block has an oil capacity of 35,000 barrels of oil per day (BOPD), with an average oil production from January to May 2023 reaching 14,875 bpd.

    Not only producing oil, the operator of the Menzel Ledjmet Nord Block also installed S8 solar panels which generate 1.141 kWh of electricity per year, and can reduce carbon emissions by up to 7,507 tons of CO2 equivalent per year.

Bisnis Indonesia, Page-4, Monday, June 19, 2023

Shell Finally sold 35% Participating Interest shares to Pertamina

Shell Deal with Pertamina

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that the process of transferring Shell's Participating Interest (PI) shares to Pertamina of 35% in the Masela Block will be completed. 

    In fact, according to him, the release price for PI shares offered by Shell is now far below US$ 1 billion, unlike anything previously offered. Previously, Shell extorted the Indonesian government up to US$ 1.4 billion or around Rp. 21 trillion to sell a 35% participating interest to Pertamina.

    According to Arifin, the process of transferring Shell's 35% Participating Interest (PI) shares in the Masela Block will use an acquisition or business-to-business scheme, not through contract termination. 

    There is an option that the Indonesian government can terminate Shell's contract in the Masela Block if the company is still the troublemaker in the process of releasing the 35% Participating Interest (PI) shares.

the Masela Block project

    In the Plan of Development (PoD) document it is stated that if five years since the PoD was signed in 2019 then the Masela Block project has not made significant progress from SHELL, then this jumbo gas block can be returned to Indonesia, and it is proven that SHELL has not done anything for 5 years in the Abadi Masela Oil and Gas block. 

    The acquisition price of 35% SHELL shares is below US$ 1, which is only US$ 500 million or around Rp. 7.5 Trillion.

Inpex Corporation

    Arifin also said that Inpex Corporation from Japan as the operator would also revise the Masela Block development plan (PoD). 

    This is in line with the company's plan to include Carbon Capture, Utilization, and Storage (CCUS) facilities in the jumbo project.

"Otherwise, there will be less pressure on funding for this fossil energy project to become unattractive, except for renewable energy. 

    In order for this gas to become clean gas, a cost must be included. within Indonesia," said Arifin.

President Director of PT Pertamina Nicke Widyawati

    Previously, President Director of PT Pertamina (Persero) Nicke Widyawati said that currently, his party was finalizing the process of transferring the participating interest shares with Shell. 

    However, Nicke could not speak further because he was bound by a Non-Disclosure Agreement/NDA or a confidentiality agreement.

       Nicke realizes that currently, the Indonesian people are looking forward to the development of the Masela Block. 

    Therefore, this Indonesian oil and gas company will be committed to immediately developing gas in the jumbo block.

"Of course, the people really hope that this gas giant block can be worked on immediately, so Pertamina's entry into it is our commitment to develop as soon as possible so that the gas in the Masela block can be monetized and generate state revenue and create a national economy," said Nicke.

    The Masela Block is a National Strategic Project (PSN) and is targeted to produce very large gas, namely 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and 150 MMSCFD of pipeline gas, as well as 35,000 barrels oil per day (BOPD).

    Currently, the Masela Block is still being managed by Inpex Masela Ltd Japan which acts as the operator and holds a 65% participating interest, and 35% is owned by Shell which will soon belong to Pertamina.

This project is said to be "giant" because it is estimated to cost up to US$ 19.8 billion. 

    The manager of this block, Inpex, and the new partner, will later build a Liquefied Natural Gas (LNG) refinery on land, which was initially targeted to be operational in 2027. The latest progress, the operation of this project is estimated to be late to 2029 due to the actions of the SHELL zonk which did nothing for 5 years since the project was signed in 2019.

Minister EMR in Jakarta: sHELL ran away from the Masela Block Irresponsible

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was very angry with the behavior of the British oil company sHELL. As of today, sHELL does not want to release its 35% participating interest (PI) shares in the Masela Block.

    sHELL has declared that it has run away from working on an oil and gas mining project in the Masela Block. With the PI not being released, the project has been stuck to this day and is very detrimental to Indonesia. 

    Even though Inpex Japan is very interested and able to work on this jumbo project.

    The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was very angry with the behavior of the British oil company, sHELL. The reason is, to this day the company does not want to release its participating interest (PI) in the Masela Block.

    Arifin said that because of Shell's actions, Indonesia felt disadvantaged, because if the oil and gas mining project in the Masela Block was carried out, it would produce gas of 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and pipeline gas of 150 MMSCFD, as well as 35,000 barrels of oil per day.

The Masela Block

    The Masela Block is being worked on by a Japanese company, namely Inpex Corporation as the operator with a 65 percent stake and the remaining 35 percent is held by Shell Upstream Overseas Services. Everything should be handed over to Japan because sHELL is just playing around and not being serious.

    Arifin continued, if by 2024 there is no activity in the Masela Block, then the government will take over the Abadi gas field development project. 

    This is based on the provisions in the Masela Block development plan or Plan of Development (PoD).

    The Masela block is an oil and gas mine located in the Aru Sea and has been explored since 1998. This project requires a very large capital expenditure (capex), estimated at US$ 20 billion. So it will be difficult if a single investor develops this block without a shareholder partner.

    The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said PT Pertamina (Persero) had now agreed to form a consortium to run the oil and gas project to replace sHELL.

Petronas

    The Masela Block has been finalized with Petronas. So SKK Migas has discussed the deal with Petronas, if the price is right, give it immediately, this year it can be done," said Luhut.

Blogger Agus Purnomo in SKK Migas

    Luhut also explained that there were no problems with the process of purchasing Shell's participating interest (PI), it's just that the price bidding process at the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) took a long time because Shell tried to extort Indonesia.