AlhamduliLLAH, Government Discovers 33 Billion Barrels of Oil and 61 Trillion Cubic Feet Natural Gas Potential in Eastern Indonesia

[Indos]

Government Discovers 33 Billion Barrels of Oil Potential in Eastern Indonesia​

Medco Energy Oil and Gas Block in Thailand© Provided by Katadata

Story from Happy Fajrian • Yesterday 15:53 p.m.

The government found jumbo oil potential of up to 33 billion barrels in two oil and gas basins in Eastern Indonesia, namely the Seram basin in Maluku, and the Warim basin, Papua.

The Seram Basin is said to have oil potential of 7,596 million barrels (MMBO) and gas of 13.69 trillion cubic feet (TCF). Meanwhile, the Warim Basin holds a potential of 25,968 MMBO of oil and 47.37 TCF of natural gas.

Head of SKK Migas, Dwi Soetjipto, said that the exploration of two basins in eastern Indonesia is part of a long-term strategy to increase national oil and gas production.

"If the two basins can be successful, they can increase long-term oil reserves, of course, including production," said Dwi when met after the Hearing Meeting (RDP) with Commission VII dpr on Wednesday (2/2).

The Warim Basin, which is located in the border area with Papua New Guinea, is claimed to have great potential for oil and gas resources or giant discovery. The status of the working area is now an open area after being released by an oil and gas company from the United States, ConocoPhillips in 2015.

However, there were a number of obstacles encountered by the government in exploration efforts in the two basins. One of them is the limited data availability of the Seram Basin. Meanwhile, the Warim basin overlaps with the Lorentz national park.

To overcome this, the government will follow up through a deep-sea offshore 3D seismic survey and preparation to become a work platform "If in the Seram basin the obstacles are only that, there are no environmental issues like in Warim," said Dwi.

The Ministry of Energy and Mineral Resources is currently in communication with the Ministry of Environment and Forestry (KLHK) to continue the permit for the development of the Warim basin, which is located in the conservation forest area and Lorentz national park. "Of course, discussions with the Ministry of Environment and Forestry and its affairs with the DPR," said Dwi.

Furthermore, said Dwi, the government has also begun to seriously encourage unconventional oil and gas drilling (MNK) to increase national oil and gas production. SKK Migas will drill the Kelok well and Gulamo Well in the Rokan Block of Riau Province in the second quarter and third quarter of 2023.

The challenges of developing MNK are the lack of availability of reservoir characteristics data and unfavorable fiscal conditions.

In addition, there are technological challenges and production costs are influenced by the character of unconventional oil and gas which has low permeability and high viscosity.

In 2021, data from the Ministry of Energy and Mineral Resources shows that Indonesia's oil reserves only remain at 3.95 billion barrels. These reserves consist of 2.25 billion proven reserves and 1.7 billion potential reserves.

The amount of such reserves is down considerably from 7.73 billion barrels in 2011. At that time, proven reserves were recorded at 4.04 billion barrels and potential reserves of 3.69 billion barrels.

These oil reserves are expected to last only about 8 years. This also makes oil import even greater if Indonesia continues to rely on fossil oil.

MSN

 

[hussain0216]

Great for Indonesia

 

[Indos]

Based on recent oil import data, Indonesia oil import is only intended for car fuel, not power plant anymore. Indonesia power plant look like has scrapped its oil-based power plant and goes entirely to coal, gas, and renewable power plants where all of them can be sourced domestically. I will show the data from Reuters news in later post. This measure, of course, is really important to reduce the annual oil import.

 

[Goritoes]

Someone say OIL ?

 

[Indos]

With the founding, if it can be converted into real reserve inshaAllah, it means Indonesia can once again become top 12 oil production countries as it happened in 1975.

 

[AlKardai]

Was reading the title, and got super happy.

Pakistan has oil!!!!!


Then I saw that the words “Eastern Indonesia”

Rip Pakistan

 

[Indos]

Indonesia 2023 gasoline demand, imports likely to exceed 2022 records​

By Mohi Narayan

Feb 2 (Reuters) - Gasoline consumption and imports in Indonesia, Asia's largest importer of the motor fuel, could hit records this year as the nation recovers from COVID-related travel curbs, although growth is expected to slow slightly along with its economy.

A spike in Indonesian imports would tighten the regional gasoline market and likely boost Asian refinery margins for the fuel. It could also accelerate plans for adding methanol and ethanol to gasoline to reduced its reliance on overseas supplies, a biofuel initiative that would add to the country's already extensive adoption of biodiesel. GL92-SIN-CRK

Indonesia's gasoline consumption is headed for an all-time high of 670,000 barrels per day (bpd) in 2023, up from a record 635,000 bpd in 2022, consultancy Rystad Energy said.
"Post-COVID recovery is the main driver behind the growth of gasoline demand," said Sofia Guidi Di Sante, a senior oil markets analyst at Rystad Energy.

"We have factored in a milder growth rate due to the plausible repercussions of a potential global recession."

Consultancy Wood Mackenzie said Indonesia's gasoline imports surpassed pre-pandemic levels last year at 380,000 bpd, a historic high based on data that goes back to 2010. This could rise to 390,000 to 400,000 bpd this year, WoodMac said.

Refinitiv Oil Research estimated imports at about 15 million tonnes (345,000 bpd) for 2022, up from around 11.5 million tonnes in 2021.

"Demand is still expected to be robust with (Indonesia's) strong economic growth and mobility," said Ranice Tan, a research analyst at WoodMac.

"However, growth is expected to slow down due to several fuel price increases last year (to contain ballooning subsidies) and potential recessionary effects."

Indonesia raised subsidised fuel prices by about 30% in early September as the government moved to rein in increasing costs to its budget.

Still, government subsidies, which make up about half the retail price of gasoline, have softened the blow of skyrocketing energy prices for consumers, Tan said.

And this year the government has increased the volume of subsidised gasoline for distribution.
Sales of subsidised gasoline stood at 29.81 million kl (513,700 bpd) in 2022, according to estimates by Indonesia's downstream oil and gas regulator BPH Migas, said Saleh Abdurrahman, a committee member at the regulator.

This year, BPH Migas has allocated 32.56 million kl of subsidised gasoline for distribution, it said in a statement.

(Reporting by Mohi Narayan in New Delhi; Additional reporting by Fransiska Nangoy in Jakarta; Editing by Florence Tan and Tom Hogue)

((Mohi.Narayan@thomsonreuters.com)

 

[Indos]

Minister: Oil Production Decline Because of Old Wells​

Translator​

Mahinda Arkyasa​

Editor​

Mahinda Arkyasa​

31 January 2023 01:15 WIB​

TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that the quality of oil wells in Indonesia is declining because of age. Arifin explained that these declines will certainly affect oil production in the future.

"Our oil wells are have matured and there are other factors that lead to loss of production, such as shutdown caused by unforeseen damages," Arifin said in a press conference on Monday, January 2023.

Therefore, Arifin said that the ESDM Ministry has gathered Joint Work Contractors to improve maintenance quality. In addition, steps will be taken inline with the most up-to-date method and preventive actions will be performed.

Earlier, the Special Task Force for Upstream Oil and Gas Business (SKK Migas) stated that they only able to achieve 612.3 thousand barrel oil per day (BOPD) in 2022 in term of oil lifting. On the contrary, the target for the production of oil was set at 703 thousand BOPD.

Furthermore, for 2023, Arifin had set a target for oil lifting at 660 thousand BOP. Arifin espressed his optimism that there will be massive lifting as a result of massive drilling at Blok Rokan. Moreover, Arifin said that there are indications of increased production from Blok Cepu and new oil fields at Kedung Keris.

"Efforts to optimize natural resources from Blok Cepu and Blok Rokan, must be supported to optimize [production] other than with other work areas," Arifin said.

RIRI RAHAYU

Minister: Oil Production Decline Because of Old Wells

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that the quality of oil wells in Indonesia is declining because of age.

en.tempo.co

 

[Indos]

Indonesian State Energy: Indonesia's Pertamina to adjust refinery investment plans amid energy shift, Auto News, ET Auto

Indonesian State Energy: Under Pertamina's 2015 refinery development plan, the company aims to upgrade four of its biggest refineries and build two new ones, which would nearly double its processing capacity to more than 1.5 million barrels per day.

auto.economictimes.indiatimes.com

 

[Indos]

Submit Joint Study, Pertamina Aims for Oil Reserves in Natuna​

28 minutes ago


KONTAN.CO.ID - JAKARTA. The Ministry of Energy and Mineral Resources (ESDM) revealed that PT Pertamina is targeting one of the fields with large oil reserves in the Natuna area. Reportedly, Pertamina will soon submit a joint study in the field.


Submit Joint Study, Pertamina Aims for Oil Reserves in Natuna© PHE

Director General of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources, Tutuka Ariadji explained that Natuna has quite large oil and gas reserves. One of the areas targeted by Pertamina is Arwana.

Just so you know, the East Natuna Block will be divided into three working areas or WK, namely the Arwana-Barakuda WK, the Paus WK, and the D-Alpha WK as the largest oil and gas field.

"Natuna is divided into three, on top of which there is Arowana. Pertamina remained there. They want a joint study of oil potential," said Tutuka at the Ministry of Energy and Mineral Resources Building, Friday (3/2).

Also Read: About Evaluation of Cheap Gas Regulations, Director General of Oil and Gas: There is No Plan to Increase Gas Prices

Tutuka admits that the oil reserves in Arowana are quite large. But unfortunately, he couldn't specify what the exact figure of the oil potential there is.

"It's a big resource, it's big. But the numbers have not been able to be delivered," Tutuka said.

He said that in the first semester of 2023 Pertamina will start processing the Arowana structure to be developed through a joint study submission to the government.

As additional information, through a publication submitted by the Ministry of Energy and Mineral Resources in 2016, the East Natuna Block has 2 levels where the upper level is gas and the lower level is oil. The gas reserves in this field are very abundant and even estimated to be 4 times that of the Masela Block.

Meanwhile, in 2022, the Ministry of Energy and Mineral Resources said that gas reserves in East Natuna were the largest in Indonesia. Its potential reaches 222 trillion cubic feet (TCF). However, the CO2 content in the block reaches more than 70% so that what can be exploited is likely only about 46 TCF.

Ajukan Joint Study, Pertamina Bidik Cadangan Minyak di Natuna

 

[Indos]

Pertamina Budgets Capital Expenditure of US$ 5.7 Billion in 2023​

Reporter: Philemon the Great | Editor: Handoyo .

KONTAN.CO.ID - JAKARTA. PT Pertamina allocates capital expenditure of US$ 5.7 billion to boost oil and gas production in 2023.

President Director of Pertamina Hulu Energi as Pertamina's Upstream Subholding, Wiko Migantoro, revealed that oil and gas production for this year is targeted to increase by 5%.

"In order to achieve this target, Pertamina has budgeted an investment of US$ 5.7 billion for organic and inorganic activities," said Wiko in a Hearing Meeting (RDP) with Commission VII dpr ri, Tuesday (7/2).

Also Read: Pertamina Targets 5% Increase in Oil and Gas Lifting This Year

Wiko revealed that this year's investment budget also increased by 44% from the realization in 2022 of US$ 3.2 billion.

Referring to Pertamina's exposure, this year's oil production is pegged at 595 thousand barrels of oil per day (BOPD), an increase of 5% from last year's realization of 566 thousand BOPD. Meanwhile, this year's gas production is targeted at 2,763 million standard cubic feet per day (MMSCFD). This number is an increase from last year's realization of 2,624 MMSCFD.

Some drilling activities will also be carried out by Pertamina to increase production this year. Exploitation well drilling activities are targeted to reach 943 wells, 32 exploration wells and 688 workover wells.

https://industri.kontan.co.id/news/pertamina-anggarkan-belanja-modal-us-57-miliar-tahun-2023-1

 

[Indos]

Pertamina's 2023 Upstream Capex Reaches IDR 86.26 Trillion, Part of It Is to Acquire Masela Block​

Nyoman Ary Wahyudi - Bisnis.com 08 Februari 2023 | 01:53 WIB


Bisnis.com, JAKARTA — President Director of PT Pertamina (Persero) Nicke Widyawati said that the allocation of capital expenditure (CapEx) for upstream subholding this year was directed in part to the cost of acquiring Shell's participation rights in the Masela Block Abadi LNG project.

Upstream Subholding of PT Pertamina (Persero), PT Pertamina Hulu Energi (PHE) budgeted a capex of US$ 5.7 billion or equivalent to Rp86.26 trillion (exchange rate of Rp15,134 per US$) in the company's work plan and budget (RKAP) this year.

The amount of capital expenditure increased by 78.12 percent from the budget realization throughout 2022 which was at US$ 3.2 billion or equivalent to IDR 48.47 trillion.

"Yes, that's right [some of Masela's investment]," said Nicke after a hearing meeting (RDP) with Commission VII of the House of Representatives of the Republic of Indonesia, Jakarta, Tuesday (7/2/2023).

However, Nicke was reluctant to elaborate further on the investment allocation directed towards taking 35 percent of the management rights that Shell wants to release in one of the most expensive oil and gas projects in the world today.

As is known, the portion of the capital expenditure allocation for PHE's merger and acquisition plan has increased significantly to the level of US$ 1.5 billion or equivalent to IDR 22.7 trillion this year. In fact, the realization of the budget used for mergers and acquisitions in 2021 and 2022 is only at US$ 41 million and US$ 27 million, respectively.

"Nothing can be said yet, no, we are bound by a non-disclosure agreement (NDA)," she said.
PT Pertamina (Persero) is said to need to prepare a budget of at least US$ 1.4 billion or equivalent to IDR 21 trillion to acquire Shell's participating interest (PI) of 35 percent in the Abadi Masela Block.

Based on SKK Migas data, Shell has disbursed US$ 875 million to acquire 35 percent PI in the Masela Abadi Block and disbursed an investment of US$ 700 million, so that the total funds that Shell has spent on the development of the field have reached US$ 1.4 billion.
In addition, Pertamina also still has to prepare a budget of US$ 6.3 billion for working capital in Masela in the next 5 years.

In fact, the development of a national strategic project (PSN) worth US$ 19.8 billion is no longer stalled because Inpex has pocketed a buyer for gas production, namely PT Perusahaan Gas Negara Tbk. (PGN). Moreover, the development of the Abadi Field development in 2021 is recorded to have reached 65 percent.

On the other hand, the revision of the PoD with green energy commitments is also strategically positioned to increase the bargaining value of Shell's participation rights divestment plan by 35 percent in the Masela Block.

"Now there is still an issue of how to make this CCUS, which was proposed by Inpex to be part of the petroleum operation, is still in process, and of course the permit is still under review," said Head of SKK Migas Dwi Soetjipto during a press conference, Thursday (19/1/2023).

The development of the CCUS facility is considered to be able to make the Masela Block Abadi LNG asset more competitive, which has recently attracted investors to buy the participation rights of Shell, which has wanted to leave since two years ago.

"If we can enter [the CCUS facility] as part of the petroleum operation, then Inpex will go," he said.

Capex Hulu Pertamina 2023 Tembus Rp86,26 Triliun, Sebagian Buat Akuisisi Blok Masela

Capex tembus Rp86,26 triliun, Pertamina akan gunakan untuk proyek ini.

ekonomi.bisnis.com

 

[Indos]

Indonesia Still Has 68 Unexplored Oil and Gas Basins​

BY :JAYANTY NADA SHOFA
FEBRUARY 22, 2023

Energy and Mineral Resources Ministry officials visit the A-55A well drilling in North Aceh on Jan. 17, 2023. (Antara Photo/Rahmad)


Jakarta. Indonesia still has 68 unexplored oil and gas basins across the archipelago, and the resource-rich country wants to ramp up its exploration, according to Energy Minister Arifin Tasrif on Tuesday.

Government data shows that Indonesia is home to a total of 128 basins. The country’s oil and gas production comes out of 20 basins. Indonesia has eight drilled basins, but they have yet to produce oil and gas. Nineteen basins show signs of hydrocarbon — a chemical compound commonly found in crude oil and natural gas.

“Thirteen basins are drilled, but dry [or no discovery of oil and gas]. This is the risk that companies face, namely in how they spend money to explore but find dry holes,” Arifin said at a GECF-ERIA joint workshop on the natural gas market in Jakarta on Tuesday.

“We have 68 basins still undrilled. We would have to conduct studies, such as seismic surveys, to make sure that there is a potential for resources,” the minister said.

Indonesia’s proven reserves totaled 42.93 trillion cubic feet (TCF). The proven reserves also had 2.36 billion barrels of oil (BBO), the ministry reported.

“To boost exploration, we have prepared policies that enable more attractive contract conditions, as well as regulations to ensure the stability of doing business in our country,” Arifin said.

In 2022, Indonesia distributed 3,686 billion British thermal units per day (BBTUD) of natural gas across the country. About 1,759 BBTUD —or about 32 percent of the produced natural gas— went to exports.

This year, the Southeast Asian country plans to distribute 3,881 BBTUD at home. Indonesia aims to increase its natural gas export to 1,912 BBTUD in 2023.

Today, Indonesia primarily uses its natural gas for the industry sector and power generation. The industry sector represents about 1,611 BBTUD or about 29.45 percent. Followed by liquefied natural gas (LNG) exports at 1,154 BBTUD, and pipeline gas exports which amounted to 606 BBTUD. Data shows Indonesia has three LNG plants.

"Previously, we have switched from kerosene to liquefied petroleum gas or LPG [in households], and since then, the demand for LPG is increasing. This placed a huge burden on our [state] budget. That is why we are working on a household gas infrastructure. [This infrastructure] uses natural gas to decrease LPG usage," Arifin said.

"We already have a million connections installed, but I think we can need another couple million," Arifin said.

According to the government’s natural gas downstream plan, Indonesia plans to construct a fertilizer factory in Fakfak and Tanimbar regencies of the eastern part of Indonesia.

Read More:

• Renewables Bill Approval Slated for September: Gov't
• B35 to Spur 2 Million-Ton Increase in Domestic Palm Oil Demand

Indonesia Still Has 68 Unexplored Oil and Gas Basins

Indonesia eyes to boost its exploration to find new sources of oil and gas.

jakartaglobe.id

 

[Indos]

This undated photo shows the Badak liquefied natural gas liquefaction plant in Bontang, East Kalimantan. (Antara Photo/Widodo S.Jusuf)

ASEAN’s Natural Gas Demand to More Than Double in 2050​

BY :JAYANTY NADA SHOFA
FEBRUARY 21, 2023


Jakarta. ASEAN will more than double its natural gas demand to 350 billion cubic meters (bcm) by 2050 as the region shifts away from coal-fired power generation, according to the Gas Exporting Countries Forum or GECF.

“Natural gas demand in ASEAN is expected to rise to 350 bcm over the next three decades,” GECF secretary-general Mohammed Hammel said in a forum in Jakarta on Tuesday.
“The region’s share of natural gas in its energy mix is projected to consistently grow to 24 percent by 2050,” Hammel said.

GECF data showed ASEAN's natural gas demand stood at 160 bcm in 2021. Eighty bcm of the Southeast Asian bloc’s natural gas demand went to power generation. Followed by the industry sector at 50 bcm. These two sectors will continue to take the lion’s share of natural gas demand in 2050. Indonesia, Thailand, and Malaysia also become the largest contributors to the demand.

According to the GECF, ASEAN to this day is still heavily reliant on coal. The combustible black rock represented 24 percent of the region’s energy mix in 2021, but will likely drop to 13 percent in 2050 as the share of cleaner energies grows.

The GECF reported that Thailand was the largest importer of liquefied natural gas (LNG), and will maintain its position over the next decades. ASEAN's natural gas production will continue to be around 180 bcm in 2050, and the region primarily extracts its gas offshore.

“In the ASEAN region, switching from coal to gas is the low-hanging fruit to improve air quality and reduce greenhouse gas emissions. Natural gas is a partner of renewables, providing backup and stability to power grids,” Hammel said.

If coupled with carbon capture and storage (CCS) technology, natural gas could abate an additional 735 million tons of carbon dioxide emissions just in the power sector alone by 2050, the GECF revealed.

Gas Exporting Countries Forum (GECF) and the think tank Economic Research Institute for ASEAN and East Asia (ERIA) host a joint workshop on the natural gas market in Jakarta on Feb. 21, 2023. (JG Photo/Jayanty Nada Shofa)


Likewise, Hidetoshi Nishimura, the president of the think-tank ERIA, said natural gas could help the region slash its carbon emission.

“Natural gas can reduce emission via its expanded use in the initial stage of the clean energy transition from 2020 to 2030 by applying existing and affordable fuels, as well as energy technologies. Our report shows the growth rate of electricity generated by natural gas in ASEAN would be stronger than the average electricity generation growth rate," Nishimura told the same conference.

"In the longer term of 2030-2050, many advanced technologies such as co-firing with hydrogen and CCUS [carbon capture, usage, and storage] will be deployed."

Many ASEAN member states have set their carbon neutrality targets. For instance, Indonesia aims to become carbon neutral by 2060 or sooner. This is later than Malaysia, Thailand, and Vietnam which have set the deadline to a decade earlier.

The growing energy demand is parallel to ASEAN's rapid population growth and economic expansion. ASEAN's real gross domestic product (GDP) is set to triple from $3.1 trillion in 2021 to $10.5 trillion in 2050. Today, ASEAN is home to at least 675 million people, but this figure will jump to 790 million by 2050, the GECF data showed.

Read More:

• Poland to Share EU Integration Experience as ASEAN Welcomes Timor Leste
• ASEAN Seeks Single Window Expansion with Japan for Greater Trade
• Renewables Bill Approval Slated for September: Gov't

ASEAN’s Natural Gas Demand to More Than Double in 2050

ASEAN will more than double its natural gas demand to 350 billion cubic meters (bcm) by 2050 as the region shifts away from coal.

jakartaglobe.id