The Tuna Block Super Jumbo gas shares are controlled by Zarubezhneft Rusia

 

    Indonesia's upstream oil and gas authorities no longer have to worry about replacing ZN Asia Ltd, a subsidiary of Russia's Zarubezhneft (ZN). 

As a subsidiary of the Russian state-owned enterprise Zarubezhneft (ZN) currently holds 50% of the participation shares in the Tuna Block. 

The Tuna Block Super Jumbo gas

    The number of foreign investors' Interest in this work area makes the Indonesian government optimistic that it can spur further development.

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that the process of transferring participation shareholders of ZN Asia Ltd. in The Tuna Block could be completed this year. Because of the potential for large amounts of hydrocarbons in it, it can be produced immediately and put into lifting Indonesia.

Blogger Agus Purnomo in SKK Migas

    The development of the Tuna Block faced obstacles after several European Union countries and the UK imposed sanctions on Russia as a result of geopolitical tensions in Ukraine. In the Tuna Block, ZN Asia Ltd. partnered with Premier Oil Tuna BV which is part of the Harbor Energy Group, a British oil and gas company.

BP

    In the Tuna Block, Premier Oil Tuna BV also holds 50% participating shares, as well as being the operator carrying out exploration and exploitation activities of oil and gas reserves.

    Nanang Abdul Manaf, Deputy Head of SKK Migas said that up to now his company has gathered many companies that stated his interest in replacing ZN Asia Ltd. in the Tuna Block. Several companies that have expressed interest are Petroliam Indonesia Berhad Petronas Malaysia and Mubadala Energy.

    The hope is that the process of transferring ZN Asia Ltd's participation shares will be successful. can be decided immediately so that the development of the work area is estimated to be capable Flowing gas up to 150 million standard cubic feet per day (MMscfd) can be done.

    The polemic that occurred in the Tuna Block made the Harbor Energy project that the final Investment Decision (FID) for its development would take place in 2025. In fact, approval for the first Plan of Development (PoD) for the field was given on December 23, 2022. 

    Zarubezhneft (ZN) received assurance of replacing ZN Asia Ltd. Harbor Energy Chief Executive Officer Linda Z. Cook once emphasized that the company's oil and gas portfolio in Indonesia, including the Tuna Block, is still a priority for corporate investment abroad. 

    This commitment was proven by the company by drilling four exploration wells in the Andaman Sea, another oil and gas working area in Indonesia managed by the company.

    The Indonesian oil and gas authority projects a state revenue of IDR 18.4 trillion from the management of the Tuna Block. This figure is higher than the potential The income that Premier Oil Tuna BV can obtain as a cooperation contract contractor is worth IDR 11.4 trillion.

    The Tuna Block is actually one of the Indonesian Government's hopes for increasing Indonesia's natural gas production. Minister of Energy and Resources Minerals (ESDM) Arifin Tasrif said that gas originating from the working area will be exported to Vietnam in 2026.

    Gas exports to Vietnam are considered more profitable because the geographical location of the Tuna Block is closer to Vietnam, making development possible Undersea pipelines such as the Nord Stream gas pipeline can directly distribute gas to mainland Vietnam.

    In terms of investment, the development of the Tuna Block up to the operational stage is estimated to reach US$ 3.07 billion. The estimate includes investments beyond sunk costs of US$1.05 billion, investments related to operating costs up to the economic limit of US$2.02 billion, and abandonment and site restoration costs (ASR) of US$147.59 million.

    Chairman of the Investment Committee of the Association of Oil and Gas Companies, Moshe Rizal, believes that European Union and British sanctions could have a serious impact on plan Tuna Block development. Premier Oil and ZN Asia Ltd. need to immediately take strategic steps so as not to hinder the continuity of its business in Indonesia.

    Moshe said that the government together with SKK Migas must also immediately provide a way out of the deadlock on cooperation commitments. The reason is that the sanctions imposed by the European Union and the UK have the potential to delay the development of the super jumbo oil and gas field.

    The desire to immediately resolve the problems in the Tuna Block also came from the Ministry of Energy and Mineral Resources, which hopes that Premier Oil Tuna BV's partners will be replaced soon.

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that data regarding the investment potential and details of the Tuna Block had been opened. Several International companies have expressed interest in investing in the Tuna block, but the government still needs to carry out further studies.

    According to him, the replacement of ZN Asia Ltd. in the Tuna Block is very urgent because Premier Oil cannot continue to invest all of its investment in developing the work area itself. After all, it could disrupt the company's cash flow and could go bankrupt.

    The Tuna Block does have a strategic role because it is located in the North Natuna Sea which directly borders Vietnam, a world geopolitical hot spot. In 2021, it was widely reported that the Chinese government was protesting the Indonesian government over oil and gas drilling activities in the sea of Natuna, even though The Jumbo oil and gas block is still Indonesian territory, and mainland China is too far from the Tuna block.

    In fact, in the Tuna Block, 2D and 3D seismic acquisition activities have been carried out, drilling of four exploration wells, namely the Gajali gas well, North Sea-1 gas well, and Belut Laut-1 gas well in 2011, as well as Sea Horse-1 gas well and Sea Lion-1 gas well in 2014.

    The discovery of hydrocarbon reserves in the Kuda Laut-1 and Sea Lion-1 wells, which are structurally adjacent, was later named the Tuna field, with resources of 104 million barrels of oil equivalent (MMBOE).

    These resources are dominated by natural gas reserves with high condensate content, with a CO2 content of less than 2%. Then, in 2021, potential reserves in the Tuna Block were confirmed again through drilling activities for two Delineation wells Sea Lion (SL)-2 and  Sea Horse (KL)-2.

Inpex Starts Drilling on Masela Block in 2024

    The Ministry of Energy and Mineral Resources (ESDM) has approved further drilling at the Masela Block Abadi LNG project to begin next year after the second revision of the development plan was approved.

    The second revision of the development plan or Plan of Development (PoD) I of the Masela Block Abadi LNG project itself has been approved by the Minister of Energy and Mineral Resources, Arifin Tasrif.

    In addition to drilling plans, the ministry is targeting a final investment decision (FID) for projects with a current estimated value of around US$19.8 billion will also be completed next year.

    Several crucial points in the PoD include a commitment to commercial operations by the end of 2029, and initial plans to install exhaust gas capture facilities or Carbon Capture and Storage (CCS).

Drilling Girl

    In the new development proposal, SKK Migas reported that additional investment for CSS is estimated to be in the range of US$ 1 billion or equivalent to IDR 15.52 trillion at an exchange rate of IDR 15,520 per US dollar. For other investments in upstream oil and gas activities, there has not been much change.

    Masela Block Operator, Inpex Masela Ltd. currently negotiating with the Indonesian government regarding the need to re-amend the production sharing contract or PSC for the Masela Block Abadi LNG project.

    It is hoped that the contract amendment will make the economics of the national strategic project (PSN) more attractive at the time of Inpex's commitment to include CCS facilities in the development plan that was sent in April 2023. 

    Inpex targets development costs to be reduced optimally with an Internal Rate of Return (IRR) in the range of 10%.

    Inpex proposed that CCS installation and operation costs could be charged to the production-sharing contract that is currently being amended. The plan is that operating costs will be paid directly through the sale of gas and condensate from future field projects.

    The Masela Block development project will use a combined land and sea system to ensure that the investment value of the existing field development plan does not change much.

Drilling Girl

    Through this combination system, seabed drilling will be carried out at a depth of 600 meters, and the well depth will be 4,000 meters. The gas obtained will be processed in a floating building, namely floating production, storage, and offloading (FPSO) to be purified from other substances.

    After being purified at the FPSO, the gas will be channeled to the liquefied natural gas (LNG) refinery on land via the gas export pipeline (CEP) which is 175 kilometers away and through sea trenches. The Masela Block is one of the largest oil and gas field prospects in Indonesia. 

    Production is estimated to reach 1,600 million cubic feet per day (MMscfd) of gas or the equivalent of 9.5 million MTPA and 150 MMscfd of piped gas, as well as 35,000 barrels of condensate per day 4 (BCPD).

    The project, which was originally estimated to require investment costs of up to US$ 19.8 billion, is Inpex's second largest gas management asset, after the Ichthys LNG Project in Australia.

Mubadala Energy discovered the enormous gas potential in the Layaran-1 oil well

 

Blogger Agus Purnomo

    The Andaman region has a charm for oil and natural gas company investors from the United Arab Emirates, Mubadala Energy. Having just discovered large amounts of gas potential in the Layaran-1 oil well, the company is immediately targeting the development of oil wells in Layaran-2 in the hope of getting bigger results.

Blogger Agus Purnomo in SKK Migas

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed that Mubadala Energy immediately prepared plans for further exploration activities at other prospects in the South Andaman oil block. While waiting for the results of the post-drill evaluation of the Layaran-1 Well, which is located off the coast of Aceh, around 100 kilometers off the coast of northern Sumatra.

Drilling Worker

    Deputy Head of SKK Migas Nanang Abdul Manaf said Mubadala Energy is immediately preparing plans next year to drill the Layaran-2 block oil well and other prospects, such as in the Parang-Parang and Ramba oil blocks.

    The oil rig used for drilling the Layaran-L oil well is currently being moved to the Andaman II oil block so that it can be used by Harbor Energy which is working on the Halwa and Gayo Wells.

    In the Layaran-1 oil well, Mubadala Energy succeeded in discovering a large gas column with a thickness of more than 230 meters in the Oligocene sandstone reservoir. Complete data acquisition, including wireline, caring, sampling, and production test (DST) was carried out.

    The exploration well was successful in flowing excellent quality gas with a capacity of 30 million standard cubic feet per day (MMSCFD). Mubadala Energy reports that the Iayaran-1 oil well has the potential to reach 6 trillion cubic feet (TCF) of gas-in-place, higher than the potential of the Geng North-1 oil well in the Kutai basin, Kalimantan, and is in the top three in the world.

Drilling Worker

    Mubadala Energy CEO Mansoor Mohammed Al Hamed said that the discovery of potential gas in the Iayaran-1 oil well will bring good commercial opportunities for the company at the current momentum of the energy transition.

    The confirmed new discovery is also Mubadala Energi's second consecutive success in the Andaman oil field, after encouraging results at the Timpan-1 well in the Andaman II block.

    The Ministry of Energy and Resources, Energy and Mineral Resources (ESDM) is still waiting for the Post-Drilling Study of the South Andaman Block Layaran-1 oil well, which has reportedly succeeded in identifying the gas potential of up to 6 TCF.

    Director of Upstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources, Noor Afifin Muhammad, positively assessed the discovery of gas potential in the South Andaman Block carried out by Mubadala Energy.

    Noor said that Mubadala Energy should add the data that is still needed, as well as geological and chemical studies before arriving at the economic calculations of promising projects.

    Founder and advisor of the ReforMiner Institute, Pri Agung Rakhmanto, believes that the government must make it easier and facilitate further exploration efforts for world-class investors so that Mubadala Energy can prove gas reserves from the South Andaman Block.

Pri Agung said that the gas potential announced by Mubadala Energy still had to go through a series of studies and further well drilling to prove it and calculate its economics because it still needed further exploration with several more wells, then well testing, and then certification of the reserves. From this process, it will become more visible what field development and its economics are like.

    Further exploration must be carried out at very large costs and investments. Moreover, the position of the South Andaman Block is offshore at a distance of around 100 kilometers off the coast of northern Sumatra and Mubadala Energy is very experienced in working on offshore projects.

    STJ Budi Santoso, General Chair of the Association of Indonesian Geologists, said that the discovery of gas potential in the Layaran-1 Well brings new hope for gas exploration and development in Indonesia because the Timpan-1 Well and Layaran-1 Well have become play-openers for the Oligocene sandstone play. in this area, especially after the Arun Gas Field in the Special Region of Aceh Province, North Sumatra experienced a very large decline and became a regasification project.

    According to Budi Santoso, Mubadala Energy is still in the early stages of evaluating the size of these resources, and requires appraisal wells, as well as preparation for the development phase, POD, so that a more accurate reserve value can be obtained in the field to then proceed to the production stage.

    Even though it already holds concessions in South Andaman and Andaman I, Mubadala Energy is also reportedly interested in continuing to drill exploration wells in the Andaman III Block, whose ownership was released this year by Repsol Andaman B.V.

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that Mubadala Energy wanted to try to continue exploration of the Andaman III Block, which was considered unsatisfactory by Repsol.

    Mubadala Energy wants to try exploration because it has its own concept which is very different from the technique used by Repsoll, it has been drilled by Repsol, and the results are not good, but according to Mubadala Energy, the concept is very different.

    Tutuka said Mubadala Energy had only conveyed its commitment to drill one exploration well this year on the block released by Repsol, even though the company does not have participating shares in the gas field.

    Repsol Andaman B.V itself returned the management contract for the Andaman III Block to Indonesia after not extending additional exploration time which ends in June 2023. After withdrawing from the Andaman III Block, Repsol will focus on further developing its other portfolio in the Sakakemang Block, in the Banyuasin area, South Sumatra Province.

    This decision was taken after the initial deep sea drilling of the Rencong-lX Well at the end of last year did not identify any reserves of oil and gas or experience a dry hole. The offshore exploration well is located at a seawater depth of around 1,100 meters at a distance of around 42 kilometers from the North Aceh coastline.

    Drilling Well Rencong-1X is part of the definite commitment that Repsol helped complete in the Andaman III Block last year after the production-sharing contract (PSC)was first signed in November 2009. At that time, the block management shares were given to Talisman Energy Inc., a company from Canada.

Smooth Roads and Red Carpets for ENI

Bisnis Indonesia, Page-4, Wednesday, Oct 4, 2023

    The Indonesian oil and gas authority has rolled out the red carpet for plans submitted by the ENI-Italy company, after discovering natural gas reserves of 5 trillion cubic feet in the North Ganal Block, East Kalimantan-Indonesia.

Red Carpet for ENI ITALY

    The Ministry of Energy and Mineral Resources (ESDM) has confirmed that it will provide full support for the plan proposed by ENI to develop natural gas reserves in North Ganal, including part of the Indonesian Deepwater Development area so that it can be developed simultaneously.

the North Ganal Block By ENI-Italy

    Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the merger of some of the Indonesian Deepwater Development (IDD) working areas would have a positive impact on Indonesia's upstream oil and gas development. The reason is, that the potential that exists in the area can be directly utilized by the facilities that are available.

    Tutuka Ariadji said we really support dividing the two IDD areas because it is good, and will reduce costs. Some can be used by existing facilities.

ENI

    ENI is planning to submit a revised Plan of Development IDD by dividing the development of the oil and gas block into two concentrations, namely the north side and the south side.

    The plan is for the southern part of the IDD to be connected to the floating production unit (FPU) of the Jangkrik Gas Field, while the northern part, which is close to the current large gas discovery location, will be connected to the North Ganal development block.

    The Ministry of Energy and Mineral Resources is currently waiting for the revised PoD so that it can be followed up immediately. The government is also committed to facilitating the acceleration of PoD approval for the block so that the timeframe for exploitation preparation can be shortened.

   Tutuka also explained that the exploration well drilled by ENI contained a very large amount of condensate to support Indonesia's oil production in the future. 

Blogger Agus Purnomo in SKK Migas

    This makes the government want these reserves to be monetized within 2 years from now. Meanwhile, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) estimates that Eni will build a new FPU facility on the northern side of their oil and gas portfolio, namely in the stretch of the Kutai Basin, off the coast of East Kalimantan, Indonesia.

"The Jangkrik Gas Field FPU is for the South side, it looks like it will build a new hub. So, there will be new facilities, because the Jangkrik Gas Field is already full by the Merakes Block and the Muara Bakau Block," said SKK Migas Deputy for Exploitation Wahju Wibowo.

Blogger Agus Purnomo in SKK Migas

   Wahyu added that the new facilities resulting from gas processing from the North Ganal Block will also be able to be channeled to the Bontang Refinery which is currently experiencing uncertainty in gas supply, due to the problem of decreasing production in a number of oil and gas working areas.

   "If it could be developed, the current Bontang Refinery only has 2-3 trains, with supplies from North Ganal it could have 4-5 trains. "It was previously thought that the Bontang Refinery would die, now it can have a longer life," he said.

the North Ganal Block By ENI-Italy

    ENI said that the discovery of significant amounts of natural gas reserves came from the Geng North-1 exploration well in the North Ganal Block, around 85 kilometers off the coast of East Kalimantan in Indonesia.

    Based on Eni's official statement, initial estimates show that the total structure discovered is 5 Tcf of gas with a condensate content of around 400 Mbbls. The data obtained by the company also allows for faster development studies later.

     The Geng North-1 well was drilled to a depth of 5,025 meters in a water depth of 1,947 meters; passing through a gas column approximately 50 meters thick in a Miocene sandstone reservoir with good petrophysical properties.

    The well production test (DST) has been successfully carried out for a comprehensive assessment of the gas discovery. Although limited by testing facilities, this study allows for estimates of the well capacity of up to 80-100 MMscfd and approximately 5-6 kbbls of condensate.

    It is also believed that the findings will contribute significantly to the formation of a new gas production hub in the northern part of the Kutai Basin. In addition, the findings will be connected to the Liquefied Natural Gas/LNG facility at the Bontang refinery, in East Kalimantan, Indonesia. Apart from Geng North, it is estimated that there are more than 5 trillion cubic feet of gas in undeveloped fields within the oil and gas block.

    The Indonesian oil and gas authority also believes that these findings can encourage more massive exploration investment in the future, considering that the potential for oil and gas in Indonesia is still very promising because there are still 68 basins out of a total of 128 oil source basins that have not been drilled.

Good News on the Discovery of a Large Oil Source by ENI ITALY

Bisnis Indonesia, Page-4, Tuesday, Oct 3, 2023

    The Indonesian oil and gas industry has received good news again from the discovery of large volumes of oil and gas reserves by the giant company from Italy, ENI. It is hoped that this positive sentiment can increase the attractiveness of the oil and gas sector.

ENI ITALY

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed that ENI had succeeded in finding natural gas reserves in the North Ganal Working Area, East Kalimantan-Indonesia, with an initial gas estimate of 5 Trillion Cubic Feet (Tcf).

    With an initial estimate of discovered resources of around 609 million barrels of oil equivalent, the report makes the discovery at the Geng North-1 well one of the world's top three exploration discoveries this year.

Blogger Agus Purnomo in SKK Migas

    Head of SKK Migas Dwi Soetjipto said that this finding would be one of the giant discoveries that would significantly increase gas reserves to support a sustainable increase in Indonesia's oil and gas production in order to achieve the oil production target of 1 million Barrels of Oil Per Day (BOPD), and gas of 12 billion cubic feet per day (BSCFD) in 2030.

    It is believed that this giant discovery can encourage more massive exploration investment in the future, considering that Indonesia's oil and gas potential is very promising because there are still 68 basins out of a total of 128 oil source basins that have not been drilled.

 Dwi Soetjipto said we hope that the discovery of gas reserves in North Ganal by one of the International Oil Companies [IOC] will encourage more other IOCs to enter Indonesia.

the North Ganal Block ENI

    SKK Migas immediately carried out intensive coordination with ENI to formulate the next stages so that this giant discovery could be immediately monetized.

    The Indonesian oil and gas authority will encourage the discovery of gas reserves to reach the production stage, so that it can increase supply to support development, including gas downstream which is currently being advocated by the government.

"This is also supported by the gas infrastructure that is already available in East Kalimantan, so it is hoped that it can be developed quickly and efficiently," said Dwi Seotjipto.

the North Ganal Block ENI Working Area

    ENI said that the discovery of significant amounts of natural gas reserves came from the Geng North-1 exploration well in the North Ganal Block, around 85 kilometers (km) off the coast of East Kalimantan.

    Based on Eni's official statement, initial estimates show that the total structure discovered is 5 TCF of gas with a condensate content of around 400 Mbbls. The data obtained will allow for faster development studies.

    The Geng North-1 well was drilled to a depth of 5,025 meters in a water depth of 1,947 meters, passing through a gas column approximately 50 meters thick in a Miacene sandstone reservoir with good petrophysical properties.

    The well production test (DST) has been successfully carried out for a comprehensive assessment of the gas discovery. Although limited by testing facilities, this study allows for estimates of the well capacity of up to 80-100 MMscfd and approximately 5-6 kbbls of condensate.

    It is also believed that the findings will contribute significantly to the formation of a new gas production hub in the northern part of the Kutai Basin, East Kalimantan. 

    Apart from that, these findings will be connected to the Liquefied Natural Gas/LNG facility in Bontang, East Kalimantan-Indonesia. It is estimated that apart from Geng North, more than 5 Tcf of gas is located in undeveloped fields within the oil and gas block. The potential for significant multi-Tcf exploration is being refined through ongoing studies.

    The Geng North discovery is close to the Indonesia Deepwater Development (IDD) area which includes several old discoveries that are not immediately developed in the Rapak and Ganal Blocks, where Eni has just announced the acquisition of Chevron shares, increasing ENI's participating shares, and acquiring Chevron operator ownership.

    Eni also promised to seek to merge the two oil and gas working areas for more optimal gas development. the acquisition also provides an opportunity to accelerate the development of the Gendalo and Gandang gas projects with gas reserves of around 2 TCF through the Jangkrik Gas Field facilities operated by Eni.

ACCELERATION

    Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) is targeting the discovery of giant gas reserves from the Geng Nordi-1 exploration well, North Ganal Block, ENI hopes to produce production within the next 2 years.

    The Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that his party would facilitate the accelerated approval of the Plan of Development (PoD) plan for the block. The hope is that the timeframe for exploiting preparations can be accelerated.

“We will facilitate this so that this happens quickly. "We are targeting that in the next 2 years, we will be able to get first gas," said Tutuka Ariadji.

    Even so, Tutuka reminded Eni of a number of homework that had to be completed when developing the gas reserves discovery, such as the vast expanse and the very challenging depth of the oil and gas reserves.

"It's a very large oil expanse, the thickness is okay and satisfying, but it's very wide," he said.

    The lengthy licensing process in the upstream oil and gas sector has become a public highlight to the point that the government is pushing for the issuance of special regulations that regulate the simplification and acceleration of basic requirements and licensing for upstream oil and gas activities in order to increase competitiveness and certainty of investment for Cooperation Contract Contractors (CCC/KKKS) in Indonesia.

    ReforMiner Institute Founder & Advisor Pri Agung Rakhmanto said that several times the discussion of the technology and economics of a proposed PoD was too detailed and very technical, making the process take a long time.

    This has not been supplemented by finalizing discussions regarding the PoD's decision itself, so KKKS has to wait longer to get certainty.

    In investment, there is a time value of money. The longer the time, the relative decrease in economic value. This also adds to the uncertainty factor if there is no decision soon.

    Pri Agung Rakhmanto also suggested that the government issue a special regulation that regulates the maximum time span for the PoD approval process. The hope is that the process of discussing and approving oil and gas field development plans in Indonesia can be faster.

    Pri Agung also sees the same thing happening in the upstream oil and gas procurement process, where technical verification and checking processes before approval related to procurement take a very, very long time. As a result, KKKS feels that investment procedures in Indonesia are still too long and increase costs.

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.