12 O&G Projects to Run in 2020, Chances to Increase O&G Lifting are Wide Open

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA
PRESS RELEASE

NUMBER: 034.Pers/04/SJI/2020
Date: 18 January 2020

12 O&G Projects to Run in 2020, Chances to Increase O&G Lifting are Wide Open

Minister of Energy and Mineral (EMR) Arifin Tasrif affirms Indonesia still has a good chance to increase the lifting or ready-to-sell production of oil and gas (O&G) by working on new fields and developing existing Work Areas.

"We are currently making efforts to develop new (oil and gas) sources in order to discover oil and gas. In terms of gas, everything is ok; in terms of oil, it will take some time," said Arifin in a panel discussion titled Energi 4.0: Designing the Future of Indonesia Power Sector at the Indonesia Millennial Summit 2020 in Jakarta, Friday (17/1).

Arifin admits natural processes cause the decline in oil and gas production, in terms of volume and time, over the last decade. He was assigned to solve this condition when he was appointed by President Joko Widodo.

"The main point (of the President's directives) is how to increase oil and gas lifting because indeed our oil and gas production has been declining in the last few years," said Arifin.

Currently, the government places its trust in Pertamina, as a red-plate company, to manage several Work Areas which contracts have expired and are returned to the state. "Pertamina is assigned to take over the management and to return productivity (of terminated Work Areas)," affirmed Arifin.

The government sets the O&G lifting in the 2020 State Budget at 1,946 Million of Barrels of Oil Equivalent Per Day (MBOEPD), with 755 mbopd from oil and 1,191 mboepd from gas. Optimism for O&G lifting realization is evident as 12 O&G projects are scheduled to run in 2020.

The 12 projects scheduled to come on stream are as follows:

1. Bukit Tua Phase-3 operated by Petronas Carigali Ketapang III Ltd. with production facility capacity of 31.5 million standard cubic feet per day (MMscfd) and production estimate of 31.5 MMscfd. The operator is currently working on Engineering, Procurement, and Construction (EPC) stage. The project is scheduled to come on stream in January 2020.

2. Grati Pressure Lowering operated by Ophir Indonesia (Sampang) Pty. Ltd. with production facility capacity of 30 MMscfd and production estimate 30 MMscfd. The operator is working on EPC, while the project is scheduled to come on stream in March 2020.

3. Buntal-5 operated by Medco Energi and scheduled to come on stream in March 2020. Similar to Bukit Tua Phase-3, the project was initially put on the list of projects to come on stream last year but was later delayed because the drilling rig was still used in Vietnam.

4. Sembakung Power Plant operated by PT Pertamina EP, which currently is at EPC stage. The project is scheduled to come on stream in February 2020.

5. Randu Gunting Project operated by Pertamina Hulu Energi (PHE) Randu Gunting with production facility capacity of 5 MMscfd and production estimate 3 MMscfd. The project is currently at Front End Engineering Design (FEED) stage or engineering detail design and is scheduled to come on stream in May 2020.

6. Kompresor Betung operated by PT Pertamina EP with production facility capacity of 15 MMscfd and production estimate 15 MMscfd. The operator is currently working on EPC stage, while the project is scheduled to come on stream in June 2020.

7. Malacca Strait Phase-1 (EPF) operated EMP Malacca Strait with production facility capacity of 3,000 barrel oil per day (bopd) and production estimate of 3,000 bopd. The project is currently at tender stage and scheduled to come on stream in June 2020.

8. Meliwis Project by Ophir Indonesia (Madura Offshore) Pty. Ltd. with production facility capacity of 20 MMscfd and production estimate of around 20 MMscfd. The project is currently at EPC stage and will be on stream in June 2020.

9. Cantik Project by PT Sele Raya Belida II with production facility capacity of 2.5 MMscfd and production estimate of around 2.5 MMscfd. The project is currently at EPC stage and will be on stream in July 2020.

10. Kompresor LP-MP SKG-19 by Pertamina EP with production facility capacity of 150 MMscfd and production estimate of around 150 MMscfd. The project is currently at EPC stage and will come on stream in July 2020.

11. Peciko 8A Project by Pertamina Hulu Mahakam with production facility capacity of 8 MMscfd and production estimate of around 8 MMscfd. The project is currently at EPC stage and will come on stream in August 2020.

12. Merakes Project operated by Eni East Sepinggan Ltd. The project is targeted to be on stream in September 2020 with facility capacity of 400 MMscfd and production estimate of 360 MMscfd.

In addition, the government plans to adopt a number of strategies, for example by giving incentive to O&G business entities in order to speed up 42 Plans of Development (PoD) of O&G fields, encouraging the use of Enhanced Oil Recovery (EOR) technology, and authorizing the operation of old wells by the communities despite little production. No less importantly, the government through SKK Migas opens a One Door Service Policy (ODSP) service in order to achieve the 1 billion barrel per day (BOPD) oil production target by 2030. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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