Indonesia government commit to accelerate the construction of natural gas distribution network infrastructure (jargas) for 293,533 household connections (SR) in 54 districts / cities throughout 2020

Indonesia government has a commitment to accelerate the construction of natural gas distribution network infrastructure (jargas) for households. The budget of Rp 3.2 trillion was prepared to build 293,533 house connections (SR) in 54 districts / cities throughout 2020.

 "This is an effort to realize ease of access to natural gas energy and acceleration of good natural gas in reaching all regions in Indonesia," said Acting Director General of Oil and Gas (Oil and Gas), Ministry of Energy and Mineral Resources (ESDM), Djoko Siswanto , after the coordination meeting on the construction of the budget for the 2020 budget year, Thursday (25/7).

This meeting invited relevant stakeholders, including 54 Regional Governments and City Governments who would enjoy the benefits of jargas. At the end of the event, this joint commitment and synergy was marked by the signing of the Minutes of Jargas Development Plan Coordination Year 2020 Budget. "We hope that the benefits of natural gas can be felt as much as possible by the community which leads to an increase in the competitiveness and economic capacity of the community in real terms.

In addition to households that will get direct benefits, the MSME sector will also get significant economic benefits, "Djoko said. Jargas development activities are part of the 2015-2030 National Energy General Plan (RUEN) because they can meet energy needs that are clean, competitive, environmentally friendly and efficient. At present, the Government has carried out construction of jargas from 2009 to 2018 with a total connection of 325,852 House Connections (SR) in 16 Provinces covering 40 Regencies / Cities. For 2020, the Government will build 293,533 SR in 54 Regencies / Cities. This number is very large compared to the number of SRs that were successfully built in 2009 to 2018, which are 325,852 SR in 16 Provinces covering 40 Regencies / Cities.

The area planned for construction in 2020 is Kab. North Aceh, Lhokseumawe City, Kab. East Aceh, Langsa City, Kab. Aceh Tamiang, Kab. Deli serdang, Pekanbaru City, Dumai City, Batam City, Sarolangun City, Jambi City, Kab. Muaro Jambi, Kab. Musi Rawas, Kab. Banyuasin, Kab. Musi Banyuasin, Kota Palembang, Kab. Ogan Ilir, Kab. Ogan Komering Ulu, Kab. Muara Enim, Prabumulih City, Kab. Penukal Abab Lematang Ilir, Kota Bandar Lampung, Kab. Serang, Cilegon City, Bogor City, Kab. Bogor, Kota Bekasi, Kab. Bekasi, East Jakarta City, Tangerang City, South Tangerang City. In addition, Kab. Karawang, Kab. Subang, Cirebon City, Kab. Cirebon, Semarang City, Kab. Blora, Kab. Lamongan, Mojokerto City, Kab. Mojokerto, Kab. Jombang, Kab. Sidoarjo, Kota Surabaya, Kab. Pasuruan, Kab. Probolinggo, Pasuruan City, Probolinggo City, Wajo District, Kab. Banggai, Tarakan City, Balikpapan City, Kab. Kutai Kartanegara, Kota Samarinda, Kab. Penajam Paser Utara.

For the construction of the jargas, the Government assigns PT Pertamina (Persero) through PT Perusahaan Gas Negara Tbk as a subsidiary (natural gas sub holding) to carry out the preparation of the FEED (Front End Engineering Design) -DEDC (Detail Engineering Design Construction) targeted for completion in October 2019 .

Read More

6:21:00 PM | 0 comments

Pertamina and ADNOC will explore opportunities for cooperation in the upstream to downstream sectors

PT Pertamina (Persero) and The Abu Dhabi National Oil Company (ADNOC) agreed to explore opportunities for cooperation across the oil and gas business chain in both the United Arab Emirates, Indonesia and internationally. This was stated in a Comprehensive Strategic Framework (CSF) signed by both parties, Wednesday (24/7).


The agreement was signed by the UAE Minister of State and CEO of ADNOC Group, Sultan Ahmed Al Jaber, and President Director of Pertamina, Nicke Widyawati. Witnessed the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, H.R.H. Sheikh Mohammed bin Zayed Al Nahyan and President Joko Widodo.


Under the agreement, Pertamina and ADNOC will explore opportunities for cooperation in the upstream to downstream sectors. The projects that are considered include participation in the UAE upstream oil and gas sector, refineries, petrochemicals, LNG, LPG, Avtur and the oil and gas retail business in Indonesia. In addition, both parties will also explore various other forms of strategic collaboration.


Sultan Ahmed Al Jaber stated, this agreement would strengthen relations between the two countries. "Indonesia has a rapidly growing industrial base and energy market. We see significant opportunities to work together between the two companies to build projects to achieve common strategic goals, "he said.


This collaboration, added Ahmed, will show the efforts of ADNOC to create value for the entire portfolio and its efforts to expand international investment to become a truly global energy company.


While Nicke said, Pertamina plans to develop an additional refinery capacity of 1 MMBPD through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. "The partnership with ADNOC will be an important milestone for Pertamina. "The interest of ADNOC to participate in the oil and gas business in Indonesia is very meaningful support for Pertamina, to ensure availability and energy accessibility for the people of Indonesia," he said.


The work team of the two parties will hold a meeting for the next few months to evaluate and select key areas for strategic collaboration across the assets and project portfolios of the two companies. A more specific collaboration collaboration option is expected to be agreed to be executed by the end of 2019.


For Pertamina, this collaboration will support its efforts to take part in the global energy scene as well as a springboard to increase competitiveness in order to compete with international energy players.
/div>

Read More

6:12:00 PM | 0 comments

Indonesia Ministry of Energy and Mineral Resources Extend The management contract to ConocoPhillips

The management contract extension has been determined by the Indonesia Ministry of Energy and Mineral Resources to ConocoPhillips as the existing operator on July 22, 2019 at the ESDM Ministry office, Jl. M.H Thamrin, Jakarta. 

The initial Corridor Block contract was signed on December 21, 1983 with three cooperation contract contractors (KKKS), namely ConocoPhillips (54%), Talisman (36%) and Pertamina (10%). The oil and gas block contract will expire on December 19, 2023. With the extension of the contract, the Ministry of Energy and Mineral Resources stipulates that the composition of share ownership will change to ConocoPhilips 46%, Pertamina 30% and Repsol 24%. 

The Corridor Block is the third largest gas block in Indonesia after the Tangguh and Mahakam Blocks. As of the end of June 2019, the realization of gas lifting from the Corridor Block was recorded at 827 million cubic feet per day (million standard cubic feet per day / mmscfd). 

In a press conference in Jakarta on Monday (7/22/2019) the Minister of Energy and Mineral Resources stated that the extension of the Corridor Block management for 20 years until 2043 was based on, among other things, a signature bonus (US $ 250 million and a definite work commitment (US $ 250 million). 

Corridor is said to be using a gross split scheme.The profit sharing contract will implement a gross split scheme in which the KKKS receives a 48.5% share for oil and 53.5% for gas.

(See another article : "Pertamina Was Alarmed Rokan Block Production Continues to Decline Like the Mahakam Block")

The decision of the Ministry of Energy and Mineral Resources above is based on Minister of Energy and Mineral Resources Regulation No.23/208 which is constitutional. Previously, ESDM Minister Sudirman Said had issued Minister of Energy and Mineral Resources Regulation No.15 / 2015 which prioritized the management of contracted oil and gas blocks to Pertamina. However, after Ignasius Jonan became Minister of ESDM, Minister of Energy and Mineral Resources Regulation No. 15/2015 was amended by Permen No.23 / 2018. This Regulation No.23 / 2018 is deliberately prepared to provide opportunities for foreigners to continue to dominate the control of national oil and gas management even though it has been managing for decades. 

Based on the Constitutional Court Decision No.36 / PUU-X / 2012, the oil and gas working area (WK) should only be managed by BUMN as a form of state control. This is in accordance with the mandate of Article 33 of the UDD 1945 in which the state through the Government and Parliament, has the power to make policies, manage, regulate, manage and supervise the state's natural resources. Particularly for management, government control is carried out by the government through BUMN. If the government complies with the constitution, then there is no other alternative except to hand over the management of oil and gas WK whose KKS ends to BUMN. 

Minister of Energy and Mineral Resources Regulation No.23 also contradicts the Energy Law No. 30/2007. Article 2 of the Energy Law states that energy is managed based on the principles of benefit, fairness, sustainability, community welfare, preservation of environmental functions, national security and integration by prioritizing national capabilities. Article 4 of the Energy Law states that in order to support sustainable national development and improve national energy security, fossil energy, geothermal, large-scale hydro resources and nuclear energy resources are controlled by the state and utilized for the greatest prosperity of the people. 

Minister of Energy and Mineral Resources Regulation No.23 / 2018 keeps the mystery of the possibility of corruption and rent seeking through direct appointment of existing KKS contractors to continue the management of an oil and gas WK. SKK Migas Head Dwi Soetjipto said oil and gas production in the Corridor Block would be stable if additional reserves were found. At present, proven gas reserves in this block are recorded at 4 trillion cubic feet (TCF). "Maybe until 2043, there were only a few TCFs. If it is calculated until 2026, there are probably 2 TCFs, "Dwi said.

If it is assumed that the remaining Corridor Block reserves are around 3 TCF and the average gas price is US $ 8-10 / mmbtu, the Corridor Block's gross income potential (before the exploitation fee is deducted) is around US 24 - 30 billion or around Rp 336 - 420 trillion , at an exchange rate of Rp. 14,000 per US $. The cost of acquiring proven reserves of an oil and gas block ranges from 10% to 15% of the reserve value. Therefore, the cost of acquiring 100% of the Corridor Block reserves is (10% - 15%) x US (24-30) billion = US $ 2.4 billion - US $ 4.5 billion!

Read More

8:12:00 AM | 0 comments

Gas Bubble On the YYA block in Offshore North West Java Block (ONWJ).

PT Pertamina Hulu Energi (PHE) stated that there had been a gas bubble on the YYA block in Blok Offshore North West Java (ONWJ). The oil and gas block is located in the waters of the North Coast of Java Island.

Vice President Relations of Pertamina Hulu Energi Ifki Sukarya said, on July 12 the drilling of the YYA-1 well had caused a bubble to appear around the YAA offshore platform operated by PHE ONWJ. The well is about 2 kilometers (km) from the North Coast of Java, Karawang, West Java. "That the YY A1 well is a well that was previously explored and we are preparing for production. It makes holes for production activities. When it pits holes, flow arises, gas bubbles emerge," Ifki said, in Jakarta, Wednesday (07-17/2019 )

Pertamina Hulu Energi ONWJ has activated the Incident Management Team (IMT) to overcome this gas bubble incident.

To avoid undesirable things, Pertamina Hulu Energi ONWJ has closed the YYA1 well drilling activity, while also moving workers on offshore platforms and drilling towers.

"So we immediately at the time of closing, we are IMT activists who are tasked with monitoring the situation on the ground," he said.

Anticipation

At the moment the gas bubble is still happening, Pertamina Hulu Energi ONWJ has also prepared a device to anticipate an oil leak. In addition, people in three villages near the project have been asked to stand by.

"So we will prepare an oil spill response team to prepare a strategy at sea and on land, do not get to land. We already have 3 teams built. Oil boom (a tool for dealing with oil leaks) 3 km in length. There are three villages in expect it to be exposed, "he said.(PE)

Read More

9:03:00 AM | 0 comments

North Stream 2 New Export Gas Pipeline From Russia to Europe Will be In Operation Soon

(Gazprom) North Stream 2 is a new export gas pipeline running from Russia to Europe across the Baltic Sea.The decision to build Nord Steam 2 was based on the successful experience in building and operating the Nord Stream gas pipeline.

The new pipeline, similar to the one in operation, will establish a direct link between Gazprom and the European consumers. It will also ensure a highly reliable supply of Russian gas to Europe. This is particularly important now when Europe sees a decline in domestic gas production and an increasing demand for imported gas.

The Nord Stream 2 project is implemented by the Nord Stream 2 AG project company. The entry point of the Nord Stream 2 gas pipeline into the Baltic Sea will be the Ust-Luga area of the Leningrad Region. Then the pipeline will stretch across the Baltic Sea. Its exit point in Germany will be in the Greifswald area close to the exit point of Nord Stream.

The route covers over 1,200 kilometers.

The total capacity of two strings of Nord Stream 2 is 55 billion cubic meters of gas per year. The aggregated design capacity of Nord Stream and Nord Stream 2 is therefore 110 billion cubic meters of gas per year. Nord Stream 2 will be put into operation before late 2019.(PE)

Read More

4:41:00 AM | 0 comments