Oil declines as Saudis boost output, China balks at trade truce

NEW YORK (Bloomberg) - Oil slid the most in two weeks after Saudi Arabia boosted crude output by more than a million barrels a day against the backdrop of renewed worldwide trade woes. Futures fell as much as 2.5% in New York on Thursday. The Saudis lifted daily production to about 9.8 MMbbl just weeks after crippling missile attacks on crucial installations, consultant JBC Energy said. That supply increase comes amid signs that Chinese officials are resisting some of U.S. President Donald Trump’s key trade demands. Canadian drillers may also add crude supplies to the market after the government loosened output caps for companies that will ship Albertan oil via railroad. “We have to keep an eye on the trade deal,” said Ashley Petersen, oil market analyst at Stratas Advisors in New York. “This is going to be a problem from the rest of the year so there’s going to be more inter-week volatility to come.” Thursday’s slump dashed what would have been crude’s first monthly gain since July. In addition to international developments such as the Saudi recovery and Chinese trade, TC Energy Corp. declared force majeure after it shut a major U.S. pipeline because of an oil spill. West Texas Intermediate for December delivery lost $1.31 to $53.75/bbl at 10:56 a.m. on the New York Mercantile Exchange. Brent for December, which expires Thursday, fell $0.48 to $60.13 on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a $6.38 premium to WTI. Chinese policy makers are gathered in Beijing for a key political meeting that’s set to conclude on Thursday. In talks ahead of that plenum, some officials have relayed low expectations that future trade negotiations could result in anything meaningful unless the U.S. is willing to roll back more tariffs. Elsewhere, Royal Dutch Shell Plc cast a warning for next year, with Chief Financial Officer Jessica Uhl saying that oil price expectations for 2020 are trending lower.

Read More

7:04:00 AM | 0 comments

Jemena's Atlas Gas Pipeline in Queensland Completed

Senex Energy announced Wednesday that first gas production has been achieved at Project Atlas following completion of Jemena's Atlas Gas Pipeline in Queensland, Australia.

(source: Senex Energy)

Jemena reached mechanical completion of the pipeline less than three months after construction began in July. Construction of the Project Atlas gas processing facility is ongoing, with commissioning of the facility and pipeline to begin soon, Senex said.

Senex and Jemena said they continue to achieve all stated milestones for Project Atlas, with first sales gas expected by the end of calendar 2019.

Project Atlas is the first acreage in Australia designated to supply gas to the domestic marketand will supply major Queensland manufacturers.

“Achievement of this latest milestone by Jemena supports Senex in its continuing transformation into an important supplier of natural gas to the east coast market," said Senex Managing Director and CEO Ian Davies. “Project Atlas is supporting both local construction jobs and the manufacturing industry."

The Atlas Gas Pipeline Project plays an important part in delivering Jemena’s Northern Growth Strategy, which seeks to build an interconnected supply chain of energy delivery assets in northern Australia through targeted acquisitions and greenfield developments.

Senex's Project Atlas drilling campaign commenced in August 2019, and 11 wells of the planned 60-well campaign have now been drilled and completed, the company said.  The first four wells were recently brought online and produced gas immediately, it said.

Project Atlas gas will be produced to flare prior to expected commissioning and start-up of the 15 petajoule per annum gas processing facility.

Senex said it has contracted most of its expected gas production volumes in 2020,with more contracts currently under negotiation.

“Senex was granted the petroleum lease for Project Atlas in March 2018. The delivery of a greenfield natural gas development in 18 months is an outstanding achievement, Davies said.

“The remainder of 2019 will be active and exciting as we bring more wells online, commission the gas facility and increase production to meet sales agreements commencing 1 January 2020,” Davies added.

Senex and its partners continue to meet all development milestones for the Project Atlas and Roma North work programs. These will deliver a Surat Basin gas production rate of 18 petajoules per annum by the end of FY21, with low cost expansion options, the company said.

Read More

9:47:00 AM | 0 comments

Pembina Pipeline has agreed to acquire Kinder Morgan Canada and the U.S. portion of the Cochin Pipeline system in $3.3 Billion

HOUSTON (P&GJ) — Calgary-based Pembina Pipeline has agreed to acquire Kinder Morgan Canada and the U.S. portion of the Cochin Pipeline system in a C$4.35 billion (US$3.3 billion) deal that expands Pembina's crude oil storage capacity in a period of high regional demand.

Kinder Morgan Canada's Vancouver Wharves (photo: KML)

The sale includes a significant crude oil storage and terminalling business in Western Canada's key energy complex, including the Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export/import business. The complex connects Pembina's conventional and oil sands pipelines to all major export pipelines.

The transaction includes 100% of the 1,810-mile Cochin Pipeline system, including the Canadian portion owned by Kinder Morgan Canada and the U.S. portion, which accounts for nearly half of the deal at C$2.05 billion (US$1.54 billion).

"(The acquisition) represents an ideal opportunity to continue building on our low-risk, long-term, fee-for-service business model while extending our reach into the U.S. through a highly desirable cross-border pipeline, said Mick Dilger, Pembina's president and CEO. "Further, it will enhance our diversification as well as Pembina's customer service offering as a leading provider of integrated services to hydrocarbon producers in Western Canada."

The 95,000-bpd Cochin system, which currently imports condensate into the Alberta region to dilute its heavy oil production, crosses seven three U.S. states and three Canadian provinces.  It connects Pembina's operations in the Channahon, Bakken and Edmontonareas to markets in Mont Belvieu, Conway and Edmonton. Pembina said there is also potential to connect the eastern leg of the Cochin system to its assets and markets in Sarnia, Ontario.

The Edmonton crude oil complex includes 10 million barrels of storage capacity, inbound and outbound connectivity, which Pembina views as "highly attractive in the current environment."  Pembina said it has identified a number of expansion possibilities at Vancouver Wharves, a 125 acre bulk marine terminal facility that currently transfers more than 4 million tons of bulk cargo annually.

Crude oil storage has been in high demand in Canada, as production from Alberta's oilfields has  exceeded pipeline takeaway capacity and producers have limited transport options. Kinder Morgan Canada assets included in the sale are:

Asset	Capacity
Edmonton South Terminal	5,100 mbbl (storage)	15 tanks under long-term lease agreement from Trans Mountain. Storage capacity is contracted to 3rd parties in unregulated service (merchant tanks)
North Forty	2,150 mbbl (storage)	Merchant crude oil storage and blending services
Base Line Terminal	4,800 mbbl (storage)	Operated 50/50 joint venture with Keyera (six tanks placed into service through June, 2018; remaining six tanks will be placed into service by year-end 2018)
Edmonton Rail Terminal	210 mbpd (capacity)	Operated 50/50 joint venture with Imperial Oil (largest origination crude-by-rail terminal in North America)
Alberta Crude Terminal	40 mbpd (capacity)	Non-operated 50/50 joint venture with Keyera (fully contracted)
Vancouver Wharves	4.0 mmtpa bulk + 1,500 mbbl per year	Bulk commodity marine terminal provides handling, storage, loading and unloading services

This is an attractive transaction for (Kinder Morgan) KMI and (Kinder Morgan Canada) KML stockholders,” said Steve Kean, CEO of Houston-based Kinder Morgan. “It enables KMI to reduce leverage and gives us the flexibility to create additional value for shareholders through share buybacks, project investments, or both.”

The deal is expected to close late in the fourth quarter of 2019 or in the first quarter of 2020, subject to customary closing conditions, including KML shareholder and regulatory approvals.

Kinder Morgan's sale of Kinder Morgan Canada follows its $4.5 billion sale of the Trans Mountain Pipeline system and Trans Mountain Expansion Project to the government of Canada in August 2018.

Read More

3:52:00 PM | 0 comments

Refinery Unit Owned By Pertamina Caught in Fire after Pipeline Repair

Balikpapan, Indonesia  (Pipeline-Engineer.com) A fire broke out in one of the pipes in the RU V Balikpapan refinery area, East Kalimantan, Thursday morning (8/15). Sparks were suspected to have arisen at around 9.30 WITA when the pipeline was repaired.

Fire fighting has been successfully carried out by Pertamina RU V using foam and water media, by deploying 4 units of fire trucks and 1 unit of trailer foam. According to the Manager of Region Communication Relations and CSR Pertamina MOR VI Kalimantan, Heppy Wulansari, the location of the fire has been localized and the main fire lane successfully extinguished.

Until the outage is complete there is no evacuation of workers and the blackout can be handled by the Pertamina team. "The cause of the fire is still awaiting the results of an investigation by Pertamina's internal team," he said.

Read More

6:30:00 PM | 0 comments

Trafigura AG Has Started Shipments Through The New Cactus II Pipeline System.

Trafigura AG Trafigura AG said on Monday it has started shipments of Permian basin crude to the Corpus Christi oil hub in Texas via the new Cactus II pipeline system.

(Reuters) - Global commodities trader Trafigura AG said on Monday it has started shipments of Permian basin crude to the Corpus Christi oil hub in Texas via the new Cactus II pipeline system. 

Trafigura signed a long-term agreement with pipeline operator Plains All American Pipeline LP last year to transport a total of 300,000 barrels per day (bpd) of crude and condensate on the pipeline.The company will be shipping full contractual volumes on the line, which has a capacity of 670,000 bpd.

The Cactus II line is likely to see flows of about 300,000 bpd through August, and is likely to be near capacity by September, market sources have estimated. Trafigura is one of the biggest exporters of U.S. crude and routinely ships barrels overseas.



The Cactus II pipeline is the first of three large pipelines expected to start up this year from the Permian Basin, the biggest in the United States, and is expected to alleviate a bottleneck that had depressed regional prices for more than a year. 

 West Texas Intermediate (WTI) prices in Midland, Texas have strengthened to a premium compared with U.S. crude futures ahead of the pipeline's startup. On Monday, prices were seen at a premium of about 20-25 cents a barrel to futures, dealers said. As Midland crude strengthens to a premium, traders also expect the arbitrage window to ship barrels to Cushing, Oklahoma, the delivery point for U.S. crude futures, to eventually shut.

Prices in Cushing have rallied over the past two weeks, with U.S. crude futures' discount to Brent trading near $4 on Monday, the smallest since March 2018

Read More

8:19:00 AM | 0 comments

BREAKING NEWS Tanks On Fire in Pecos Texas, USA. No Injuries reported

 

Tanks on Fire in Pecos TX, Accident happened when Oil truck caught fire between a bunch of oil tanks, until this article posted. No one injured in this acident. Keep Working safely.

Related Article : 

Trafigura AG Has Started Shipments Through The New Cactus II Pipeline System.

Read More

9:58:00 AM | 0 comments

A Regional Gas Pipeline Ruptured Early Thursday in Kentucky, USA

JUNCTION CITY, Ky. (AP) — A regional gas pipeline ruptured early Thursday in Kentucky, causing a massive explosion that killed one person, hospitalized five others, destroyed railroad tracks and forced the evacuation of a nearby mobile home park, authorities said.

Some structures were completely consumed by the blaze, and five to seven people were unaccounted for when firefighters extinguished the flames hours later, Lincoln County Emergency Management Director Don Gilliam said.

"The part of the area that has been compromised, there's just nothing left," Gilliam said when asked whether residents might return to their trailer homes. "The residences that are still standing or damaged will be accessible. There doesn't really look like there's any in-between back there. They're either destroyed or they're still standing."

The 30-inch (76-centimeter) wide pipeline moves natural gas under such high pressure that the flames reached about 300 feet in the air and could be seen throughout the county, he said.

The explosion around 1 a.m. was so huge that it showed up on radar, according to a tweet from WKYT-TV meteorologist Chris Bailey. It took hours for firefighters to douse the flames, with trucks repeatedly refilling their tanks and returning to the scene.

Emergency managers said the rupture involved the Texas Eastern Transmission pipeline, which is owned and operated by Enbridge. The pipeline stretches more than 9,000 miles, from the Mexican border in Texas to New York City. A statement from the company based in Calgary, Canada, said "Enbridge is aware of and is responding to a rupture on the Texas Eastern system in Lincoln County."

The blast also damaged railroad tracks, forcing 31 trains to back up overnight, authorities said.

Some 75 people in the Indian Camp trailer park in the Moreland community were evacuated to the New Hope Baptist Church in Stanford. Gilliam encouraged anyone who fled the scene and hasn't been accounted for to check in at the church. Authorities also urged people gathering for the multistate 127 Yard Sale to stay away as crews worked to contain the damage.

Gilliam said residents whose homes are still standing should be allowed back in later in the day.

---

A gas explosion rocked a community in Kentucky and left one person dead early Thursday, authorities said.

Authorities evacuated residents in Moreland after the explosion, the Lincoln County Sheriff's Office said. The number of people evacuated was not immediately available.

A shelter has been set up at a local church. The Perryville Fire Department said that preliminary reports show that a gas line ruptured.

Sofia Nunez was at home in Moreland, Kentucky, when the explosion happened.

"There was a loud noise and it sounded like a tornado was outside our house. When you stepped outside you could hear the flames and feel the heat. It shook the house for nearly 30 minutes after the flames appeared and neighbors windows were shattered," Nunez told CNN. Charlie Lynch, in Danville, woke up to the whole sky lit up from the explosion. He said he drove 10-15 minutes before taking video, with flames and smoke visible the whole way.

Read More

5:37:00 PM | 0 comments

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

PoD Revision of the Masela Block Oil and Gas Project Development Plan was Signed

Saumlaki - Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan has signed a revision of the Masela Block Oil and Gas Project Development Plan for the Tanimbar Islands, Maluku. This was stated by the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto through a press release received today.


The signing was carried out after Minister Jonan cooperated with the Corruption Eradication Commission (KPK) to prevent potential corruption in the development of the block which has a large investment and the use of the cost recovery profit sharing contract (PSC). "Yesterday we had to clarify with the KPK. There were a number of things that were the concern of the KPK, there were some that had been clarified, there were some that had to be monitored, for example procurement. With the KPK completed, (PoD) was signed by the Minister," said Dwi, Saturday, July 13, 2019.


The PoD revision that has been approved by the Minister of ESDM, according to Dwi, is in accordance with the recommendations of SKK Migas. "Because this is a big investment, then the Minister will report to the President. In detail, the Minister will deliver," he said.


Furthermore, Jonan said the government did not delay long after SKK Migas and Inpex signed a Head of Agreement (HoA) on June 16. Now the PoD made based on the HoA is ready to be executed and the next step in developing this Masela Block is FID (Final Investment Decision). "Their FID will process, according to the schedule for another year (complete)," Dwi said.


Previously, INPEX Corporation's Senior Media Specialist Mochamad Nunung Kurniawan explained that INPEX formulated a revised Plan of Development (POD) based on the results of the Pre-FEED work and ongoing discussions with the government so that the project has feasibility from the economic side of the project.


The contractor winning the Pre-FEED Onshore LNG auction is PT KBR Indonesia, while the Pre-FEED Floating Production Storage and Offloading (FPSO) Contractor is a PT Technip Engineering Indonesia Consortium and PT Technip Indonesia. Under the scheme of land LNG development with an annual LNG production capacity of 9.5 million tons.

Read More

7:56:00 PM | 0 comments

Rokan Transfer Management Team Will be Formed in The Near Future

Pekanbaru (PE) - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said that the Rokan Block transfer management team in the near future will be formed to ensure the smooth transition of oilfield management in Riau Province. "The government will have a meeting point very soon. For the form of the team, it takes time, needs agreements, meetings between the parties, "Head of North Sumatra SKK Migas, Avicenna Darwis, told in Pekanbaru, Riau, Thursday. 

 Avicenna said that this responded to the decline in the production of the Rokan Block which was still managed by PT Chevron Pacific Indonesia at the end of the company's contract period, which expired in 2021. The Indonesian government had decided to submit further management to PT Pertamina (Persero). He acknowledged that the condition at the end of the existing operator contract period would certainly have an impact on the decline in oil production. This was because Chevron certainly reduced its investment in the oilfield.

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

To anticipate these conditions, Avicenna continued, the government formed the Rokan block management transfer team. 

The team essentially said that Chevron and Pertamina were looking for an agreement in the transition process, including issues such as environmental issues, human resources, and data. "The challenge is concerning data, because building data is not built in a year, two years," he said. The issue of the transition of operators in a large work area is admittedly not easy to determine the scheme and investment model. Avicenna said the process was almost complete, which was expected before the end of the 2021 working area contract, Pertamina could enter for investment. 

 "Now it is at the end of the process, because it is very complex, especially the transition of production area (oil) is almost 200,000 or around 190,000 (barrels per day)," he said. Previously, SKK Migas targeted Block Rokan oil lifting this year at only 190,000 barrels of oil per day (BOPD), down 9.2 percent compared to the realization in 2018 which reached 209,478 BOPD.

Read More

5:47:00 AM | 0 comments

Jemena Starts Construction of Queensland Atlas Gas Pipeline

P&GJ– Australia's Jemena said it has commenced construction of the Atlas Gas Pipeline, a 38-mile (60-km) project that will deliver natural gas earmarked for domestic consumption from Queensland's first domestic-only gas supply. Located approximately 12 miles (20km) southwest of Wandoan in Queensland, the Atlas project will include an 8-inch, steel-coated, buried gas pipeline and a compressor station. It will connect gas from Senex Energy’s Atlas gas field to the East Coast gas market via the Wallumbilla Gas Hub.

Jemena’s executive general manager of Gas Markets, Antoon Boey, said construction and commissioning of the Atlas project is expected to be complete before the end of 2019. “We are currently in the early stages of construction, with around 90 people on site conducting clear and grade and stringing activities, and we expect this work to ramp up quickly over the coming weeks,” said Mr. Boey. “The Atlas pipeline and processing facility have been designed to enable further expansion once additional gas reserves become available from the Atlas production area.”

(see another article :"Australia’s gas transmission pipeline system")

Jemena recently awarded Spiecapag Australia a $20 million contract to construct the Atlas Gas Pipeline, while Australian energy and infrastructure services group, Valmec, has been appointed to construct the Atlas Compressor Station. In total, Jemena will invest around $140 million to construct the Atlas Gas Pipeline Project, which is expected to create around 150 to 200 jobs in Queensland. More gas on its way Mr Boey said Jemena was working hard and in partnership with gas exploration companies to bring new gas to Australian homes and businesses.

“We are acutely aware that Australia faces a gas supply crisis, and Jemena is investing heavily in new gas transmission infrastructure to bring new gas supplies into the market. Moving gas from where it is produced to the markets where it is needed at the lowest possible cost and doing so safely and reliably is of utmost importance to Jemena,” said Mr Boey.

“As we transition to a low-carbon future gas will play an increasingly important role in complementing intermittent renewable technologies such as wind and solar generation that, currently, are unable to provide firming power. It will also continue to play an essential role for industries which rely on gas as a primary input into their production processes.”

Read More

12:16:00 AM | 0 comments

Pertamina Was Alarmed Rokan Block Production Continues to Decline Like the Mahakam Block

This year's Rokan Block oil lifting is only 190 thousand BOPD, down 9.2% compared to 2018 which reached 209,478 BOPD.

Pertamina began to worry about the potential decline in Block Rokan production when it took over management from Chevron Pacific Indonesia in 2021.

Moreover, Chevron will reduce investment in the block. The company is also worried that the fate of the Rokan Block will be the same as the Mahakam Block. When managed by Pertamina, the Mahakam Block production continued to decline. "The decline in the production of the Mahakam Block is a lesson learned for us in managing the oil and gas blocks resulting from termination, especially the Rokan Block," said Pertamina's Managing Director, Nicke Widyawati, on Monday (18/7).

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets Block Rokan oil lifting this year to only amount to 190 thousand barrels of oil per day ((BOPD), down 9.2% compared to 2018 which reached 209,478 BOPD. Until the first semester of 2019, the realization of oil production ready for sale (lifting) of the Rokan Block only reached 194 thousand BOPD. This figure is lower than the first four months of this year which reached 195 thousand barrels per day (BOPD). While liffting gas in the Mahakam Block in the first semester of 2019 only reached 662 million cubic standards per day (MMscfd) or 60.18 percent of this year's target of 1100 MMscfd. This achievement is far lower than the realization of the Block's gas lifting when it was still managed by Indonesia's Total EP in 2017 which reached 1,286 MMscfd.

(see another article : "Indonesia and Thailand State Owned Oil&Gas Company Take Greater Control Of Mature Oil & Gas Fields")

Therefore, Pertamina hopes that SKK Migas will help maintain the stable production of Rokan. Moreover, the block is one of the biggest contributors to national oil and gas lifting. SKK Migas also brought together Pertamina and Chevron to discuss the matter on Friday last week. But the Upstream Director of Pertamina Dharmawan Samsu has not been able to ascertain the investment scheme or model that will be carried out so that the production of Rokan Block will not decrease when managed by Pertamina in 2021. "Hopefully there is a way out of this problem," Dharmawan said. So far there have been three transition options discussed by Pertamina, Chevron, and SKK Migas. The first option is joint operation. The second option is to maximize the area around the Rokan Block which has not been managed and developed further. The last option, joint planning of the Rokan Block work plan.

The importance of EOR in the Rokan Block One of the things that should be a concern in the management of Rokan Block is the application of advanced enhanced oil recovery (EOR) technology. EOR technology is used by Chevron to maintain the production of the Rokan Block. The technology includes waterflooding and steamflood. In addition, Chevron also tested chemical injection technology at Minas Field, Rokan Block. But according to SKK Migas Deputy Operation Fatar Yani Abdurahman, Chevron no longer applies EOR technology before the contract expires in 2021. Even though the rate of decline in natural production (decline) in the Rokan Block has reached 4-5%.

"The EOR is not a one-two-year project. So it is impossible for Chevron to do that when the contract will end," Fatar said when contacted by Katadata.co.id last weekend. With this condition, Pertamina wants to immediately apply EOR technology to increase the production of the Rokan Block by 2021. "Pertamina plans this in order to boost Rokan production when it is officially managed by Pertamina. However, we still continue to discuss with Chevron for preparation and other opportunities," said Pertamina VP of Corporate Communication Fajriyah Usman to Katadata.co.id yesterday. The EOR technology is predicted to boost oil production. Chevron has tested the technology by injecting chemicals into oil wells in Minas Field. As a result, there is potential for oil production of up to 100,000 barrels per day. With this assumption, Rokan Block's production is projected to reach 500 thousand barrels per day by 2024 in accordance with Pertamina's proposal to the government.

Read More

6:16:00 PM | 0 comments