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Indonesian upstream hit by spate of outages

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

Pertamina to build LNG

terminal for Cilacap refinery

PROJECTS & INDONESIA’S state-owned Pertamina unveiled downstream arm Kilang Pertamina Inter-
COMPANIES plans this week to build a small-scale liquefied nasional (KPI) and Pertamina International
natural gas (LNG) terminal to supply feedstock Shipping (PIS) would spearhead the project in
to its Cilacap refinery. partnership with Badak LNG, which operates
Pertamina said on May 25 that the the 22.5mn tonne per year (tpy) Bontang LNG
$151.7mn project would supply the 348,000 plant located in East Kalimantan.
barrel per day (bpd) refinery, which is located The construction of the LNG terminal
in Central Java, with 111mn cubic feet will allow the downstream complex to substi-
(3.14mn cubic metres) per day over a 20-year tute residual fuel oil production for gas-based
period. Pertamina said gas utility PGN, products.

Week 21 27•May•2021 www. NEWSBASE .com P9