Pertamina first exports 4,000 Barrels SF-05 to Algeria, North Africa.

Balikpapan,- PT Pertamina (Persero) for the first time exported Smooth Fluid-05 (SF-05) to 4,000 barrels to Algeria in Northern Africa. The release of 27 Isotank initial exports of SF 05 was carried out in Balikpapan, East Kalimantan, Thursday (4/7). SF 05 is a liquid base oil used to support oil drilling activities in the operating field.

SF-05 products have good performance so that they can be used for a variety of drilling operations. According to Pertamina's Corporate Marketing Director, Basuki Trikora Putra, the total value of exported SF 05 reached more than Rp 10 billion. Export cargo loading is carried out from July 3 to July 6, 2019, from the Balikpapan Refinery which has a production capacity of 1.8 million barrels per year. "This initial export is the beginning of a milestone for SF-05 to be accepted in the global market. This is one of the efforts to synergize Pertamina Group, namely PT Pertamina Lubricants and the Petrochemical Trading team that collaborate in selling overseas through the Export of Prime SF-05 to Algeria. Hopefully SF-05 products can be accepted, not only by customers in Algeria, but also by customers around the world, "said Basuki.

He also conveyed that the SF-05 product had gone through environmentally friendly tests which included biodegradability, LC50 (the effect of SF-05 on marine biota), skin irritation, and eye irritation with better results than those required under US-EPA and OECD international standards.

"SF-05 meets international standards because it is more environmentally friendly than what is currently used, namely diesel oil," said Basuki who is familiarly called Tiko.

According to him, the quality of SF 05 products has been adjusted to the needs of oil fields in Algeria which have drilling mud characteristics with Specific Gravity (SG) between 1.26 - 2.06. SF 05 will be used in the production field of Pertamina Algeria EP (PAEP), which is a subsidiary of Pertamina Internasional EP with Repsol and Sonatrach (Algerian oil and gas BUMN). At present, PAEP operates as many as 67 oil wells in Algeria. This SF-05 product will be used for development wells in 2019-2020. The initial export of the SF-05 will be used at Blok Menzel Lejmet North (MLN), Algeria

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8:12:00 AM | 0 comments

The Latest API 5L 46th Edition.

We are pleased to announce the publication of the 46th edition of Specification 5L, Line Pipe. This new edition provides technical updates that have reached consensus within API’s Subcommittee on Tubular Goods and will now give industry consistent practices in these respective areas of the standard.  These updates are reflective of API’s standards program mission to provide a forum for development of consensus-based industry standards, and technical cooperation to improve the industry’s safety performance and competitiveness.

Key Changes

• Updated and expanded requirements for mill jointers (differentiate between double-jointers and mill jointers; avoid welding consumables environmental contamination; require qualification standards; new process testing requirements; clarify offset and undercut requirements; standardize marking requirements; reference weld repair annex);
• Updated requirements for pipe end squareness;
• Updated requirements for hardness testing on PSL 2 pipe for sour service and PSL 2 pipe for offshore service;
• New annex for strain-based design requirements (PSL 2 pipe for applications requiring longitudinal plastic strain capacity)

Effective Date and Program Implications

The Monogram Program effective date will be November 1, 2018.

Current licensees shall ensure that products manufactured on and after November 1st, 2018 meet the requirements of API 5L 46thedition in order to be monogrammed.

Also, effective November 1st, 2018, API 5L audits will be conducted to the 46th edition of the document.

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5:23:00 PM | 0 comments

Indonesia and Thailand State Owned Oil&Gas Company Take Greater Control Of Mature Oil & Gas Fields

National Oil Companies (NOCs) in Thailand and Indonesia are using the expiry of existing production-sharing contracts as an opportunity to take greater control of mature oil and gas fields domestically, says GlobalData, a leading data and analytics company.

The company’s latest research reveals that PTT Exploration and Production Public Company Limited (PTTEP) in Thailand and PT Pertamina in Indonesia will operate the majority of production in their respective countries by 2023. PTTEP won the 2018 international auctions for the Bongkot and Erawan concessions and the new concessions start from 2022 with PTTEP as the operator. Two particularly large blocks taken over by Pertamina are the Mahakam block operated by Total SA before 2018, and the Rokan block operated by Chevron Corporation until 2021.

Nicole Zhou, Upstream Analyst at GlobalData, commented, “Countries across Southeast Asia are starting to see their NOCs as the key agents to improving national energy security. However, increasing responsibility for key producing assets may well come at a cost. Pertamina has not operated an asset on the scale of Mahakam and Rokan previously and the longest it has operated one of its top 10 largest projects by gross production is eight years.

“PTTEP currently has a small equity share in some of the fields that will be in the Erawan concession, but it will become the main participant and operator in the new concession. At Bongkot, it is already the operator, but will significantly increase its share in the field by becoming the sole participant.”

Zhou continued, “In Indonesia, regulations introduced over the past three years have made it easier for the state-run NOC, Pertamina, to take over blocks with expiring production-sharing contracts. In Thailand, PTTEP’s bid won based on its gas price – US$3.55/MMbtu – and profit share terms, which are thought to be more competitive than Chevron’s proposed terms.”

As Thailand and Indonesia try to improve the security of their energy supplies and increase their control of reserves, the NOCs may be taking on more than they can handle. Gas production in April 2019 from Mahakam block that Pertamina took over was only 666.6 mmcfd, as the company struggled with rig mobilization and poor weather. The previous year, challenges with rig procurement and mobilization prevented Pertamina from meeting its production target for the block, which was already 75% of 2017. Stabilizing production in these major projects such as Mahakam and Rokan in Indonesia and the Erawan concession in Thailand will be a big stretch for Pertamina and PTTEP.

Zhou added, “The mature fields will require advanced technologies, extensive management experience and consistent production maintenance/enhancement expenditures to compensate for the high natural decline rates. It remains to be seen whether these national oil companies will be able to learn quickly enough to convert their new assets into increased production.”

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8:34:00 PM | 0 comments

In a Week, Plains' Cactus II Oil Pipeline Begin to Line Fill , According to Source

NEW YORK (Reuters) - Plains All American Pipeline LP’s 670,000 bpd Cactus II oil pipeline system from the Permian Basin to the Corpus Christi, Texas area will commence line fill within a week, a source with direct knowledge of the matter said. Cactus II construction pipeyard. (photo: Plains All American) The pipeline operator said this month the Cactus II project is progressing on schedule for initial service by the end of the third quarter of 2019.

We have over 90% of the pipe in the ground and we’re working diligently toward completion,” a company executive said during its investor day about two weeks ago. Once line fill is complete, commodities merchant Trafigura, one of the largest shippers on the line, will be shipping full contractual volumes, the source said. Trafigura signed a long-term agreement with Plains last year to transport a total of 300,000 bpd of crude and condensate on the Cactus II pipeline from the Permian Basin to the port of Corpus Christi. The trading house is one of the biggest exporters of U.S. crude and the deal with Plains will allow it deliver crude to U.S. Gulf Coast refiners, ship the oil to its condensate splitters and export terminal in Corpus Christi, which it co-owns with Buckeye Partners L.P (BPL.N).

Pipeline takeaway constraints had slowed production growth and weighed on oil prices in the Permian basin but midstream companies have announced several new projects, such as Cactus II, to help clear the transportation bottleneck. Exports of U.S. crude have surged to a record at nearly 4 million bpd after Washington lifted a ban in late 2015. Other shippers on the Cactus II line include Concho Resources Inc and Anadarko Petroleum Corp, according to the companies. Two other pipelines are also on track to begin service this year to transport Permian crude to the Gulf Coast.

“With the impending start-ups of Cactus II, EPIC, and Gray Oak, there will be about 2 million bpd of crude capacity delivering into Corpus Christi from the Permian, with the majority, if not all, of the incremental supply destined for international markets via the docks,” Barclays analysts said in a note. Plains did not immediately respond to requests for comment.

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5:58:00 PM | 0 comments

Intelligent Pigging

Intelligent ("smart") Pigging is an inspection technique whereby an inspection probe, often referred to as a "smart" pig, is propelled through a pipeline while gathering important data, such as the presence and location of corrosion or other irregularities on the inner walls of the pipe.

What makes intelligent pigging different is that smart pigs are capable of performing advanced inspection activities as they travel along the pipe, in addition to just cleaning it. Smart pigs use nondestructive examination techniques such as ultrasonic testing and magnetic flux leakage testing to inspect for erosion corrosion, metal loss, pitting, weld anomalies, and hydrogen induced cracking, among others. They are also able to gather data on the pipeline's diameter, curvature, bends, and temperature.

Smart pigging provides a number of advantages over traditional forms of pipeline inspection. It allows pipelines to be cleaned and inspected without having to stop the flow of product. It also allows the a pipeline to be completely inspected without having to send inspectors down its entire length. Finally, it provides cleaning and inspection services at the same time, saving companies both time and money.

This is how inteligent piging is working.

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11:06:00 AM | 0 comments