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