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Indonesian upstream hit by spate of outages

PERFORMANCE INDONESIA’S oil and gas industry has expe- Ahmad telling Kontan that the company was
rienced a series of unplanned shutdowns that working both to offset the production outages as
threaten to derail the government’s upstream well as repair the damage.
production targets. “There is a component in the gas plant in
The deputy head of operations at upstream Suban that is damaged. As a result, production
regulator SKK Migas, Julius Wiratno, said capacity is partially reduced,” he said.
The second train at this week that the operational disruptions had Indonesia’s oil production in March
BP’s Tangguh LNG affected production significantly, but refrained amounted to 676,000 barrels per day, just 96%
facility in West Papua from providing specifics. of the government’s target of 705,000 bpd. Gas
stopped operating “It’s still fluctuating, it’s still being calculated production similarly missed its target, amount-
between May 10 and and [the contractors are] finding ways to address ing to 5.54bn cubic feet per day (156.89mn cubic
May 22. it,” he told local news outlet Katadata on May 25. metres) or 98.2% of the targeted 5.64 bcf (159.72
The highest-profile affected projects include mcm) per day.
the ConocoPhillips-operated Corridor Block, The second train at BP’s Tangguh LNG facility
Pertamina’s Bontang liquefied natural gas in West Papua stopped operating between May
(LNG) plant, the second train at BP’s Tangguh 10 and May 22 because of an equipment fault,
LNG plant and the Medco Energi-run South SKK Migas head Dwi Soetjipto told CNBC Indo-
Natuna Sea Block B. While the BP and Medco nesia on May 24.
projects have since resolved their issues, “The incident at BP Tangguh was an
Wiratno said a number of smaller fields had unplanned shutdown. A manual shutdown was
also been affected. carried out due to damage to the Tangguh Train
“The big ones are ConocoPhillips and Bon- 2 reboiler tube,” he said.
tang. There are several small ones like in [Per- He added that following the completion of
tamina’s Offshore North West Java] ONWJ,” he repairs, production had returned to near face-
said. plate capacity. The two-train facility has a com-
ConocoPhillips has completed about 85-90% bined capacity of 7.6mn tonnes per year (tpy).
of the necessary repairs, with vice-president for Soetjipto said the facility’s next planned mainte-
commercial and business development Taufik nance break was scheduled for January 2022.™

Pertamina to build LNG terminal for refinery

PROJECTS & INDONESIA’S state-owned Pertamina unveiled scheme, which was launched in 2016 to help
COMPANIES plans this week to build a small-scale LNG ter- deliver on Indonesian President Joko Widodo’s
minal to supply feedstock to its Cilacap refinery. goal of reaching full electrification in the country
Pertamina said on May 25 that the $151.7mn by 2019.
project would supply the 348,000 barrel per day Pertamina logistics and infrastructure direc-
(bpd) refinery, which is located in Central Java, tor Mulyono said the project would help develop
with 111mn cubic feet (3.14mn cubic metres) southern Central Java’s retail LNG market, while
per day over a 20-year period. the refinery’s use of gas would cut the group’s
Pertamina said gas utility PGN, downstream costs by $58.5mn per year.
arm Kilang Pertamina Internasional (KPI) and Yunianto: “This project is one of PGN’s pri-
Pertamina International Shipping (PIS) would orities in providing an integrated LNG supply
spearhead the project in partnership with Badak chain. Hopefully, the planned integrated supply
LNG, which operates the 22.5mn tonne per chain and LNG infrastructure will be able to
year (tpy) Bontang LNG plant located in East meet the gas needs of Cilacap refinery in a timely
Kalimantan. manner.”
The construction of the LNG terminal He added that the project was expected to
will allow the downstream complex to substi- help reduce the country’s oil and gas imports and
tute residual fuel oil production for gas-based slash the trade deficit in the process.
products. The Indonesian government has been seek-
The three companies signed a heads of agree- ing to limit energy imports in recent years as
ment (HoA) that will see PGN work with KPI, it tries to improve the country’s trade balance.
Badak LNG and PIS on LNG infrastructure, In 2018, for example, Jakarta introduced a
storage and breakbulking facilities, and LNG rule that required upstream contractors to
transportation options respectively. sell almost all of their output to Pertamina,
The project falls under the government’s exempting existing long-term export agree-
Small Scale Land Based Regasification Terminal ments from the requirements.™

Week 21 28•May•2021 www. NEWSBASE .com P9