Showing posts with label
Oil and Mining Updates from Indonesia.
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Showing posts with label
Oil and Mining Updates from Indonesia.
Show all posts
- Pertamina Unit Boosts Offshore W Java Crude Output By 4,000 B/D
- Indonesia To Exports 33 Cargoes Of LLNG In August
- Indonesian Utility PLN To Buy Gas From Donggi-Senoro Blocks
- Indonesian Miner Antam Eyeing Bhp's Local Assets
- Drilling Rig For Plugging W. Australian Oil Leak Still In Batam
- Indonesia's Petrosea Wins Mining Contract Valued At Us$200 Mln
Read full report at: http://groups.google.com/group/joyonews/browse_thread/thread/eddcf2c17a241b64#
- Govt wants BHP to sell assets to domestic companies
- Indonesia's Berau Coal sees 2010 output up 16 pct
- Indonesia to buy shares in Newmont unit
- Indonesian Co TPPI To Build $500 Mln Petrochemical Plant
- Japan Gasoline Co To Build CWM Factory In Indonesia
- South Sumatra Biz Hails Indoneisan Govt's Ban On Gas Exports
To view the full report go to: http://groups.google.com/group/joyonews/browse_thread/thread/a1f4caafd0d168b5#
- Huaneng Interested In Bidding For Indonesian Coal Co-Report
- China Shenhua Energy Unit To Invest $331M In Indonesia Project
- South Korea electric power major buys into Indonesian coal producer
- Indonesia Govt To Maximize Share In Mahakam Block Gas Field
- Power Plant In Gorontalo, Indonesia To Start Operating In 2011
For full report courtesy Joyo News Service go to:
http://groups.google.com/group/joyonews/browse_thread/thread/79fe1551570d4fc8#
- Ausenco: Preferred Contractor For Martabe Project
- Shenhua Unit Starts Work on Indonesia Power Plant, Coal Project
- Gulf Petroleum To Invest In Coal Gasification Pjt In Indonesia
- Indonesian Power Co PLN Succeeds In Reducing 25% Of Oil Fuel Use
(Courtesy Joyo News Service)
Ausenco: Preferred Contractor For Martabe Project
MELBOURNE, July 14 (Dow Jones)--Ausenco Ltd. (AAX.AU) said
Tuesday it has been selected as preferred contractor to the
US$250 million Martabe gold and silver project in Indonesia.
Queensland state-based Ausenco and PT Agincourt Resources are in
the final stages of documenting the contract, which should be
signed later this month, and work is expected to start by
August, it said in a statement.
The Martabe project in northern Sumatra is expected to produce
about 250,000 ounces of gold and 3 million ounces of silver in
the mine's early years, Ausenco said.
-----------------------------
Shenhua Unit Starts Work on Indonesia Power Plant, Coal Project
By John Duce
July 14 (Bloomberg) -- China Shenhua Guohau Power Co., a unit of
China’s biggest coal producer, started construction of a power
plant and mine in Indonesia this month.
Building began on the site in south Sumatra on July 7 and is due
for completion in 2011, parent Shenhua Group Corp. said in a
statement on its Web site.
State-controlled Shenhua said in January last year the project
was due to be completed in 2010. The 300-megawatt power station
is the coal-producer’s first electricity generating project
outside China.
The mine will produce about 1.5 million metric tons of coal a
year, Shenhua Group, the parent of Hong Kong-listed China
Shenhua Energy Co., said in the statement.
-----------------------------
Gulf Petroleum To Invest In Coal Gasification Pjt In Indonesia
JAKARTA, July 14 Asia Pulse - Indonesia's Priamanaya Group and
Gulf Petroleum from Qatar, will develop synthetic gas from coal
in Lahat, South Sumatra.
The feasibility study of the project will be carried out toward
the end of this year to be completed in a year, Susilo
Djiwantoro, Priamanaya chief executive said.
Susilo said Gulf Petroleum will hold the majority share of 80
per cent and Priamanaya, which has a coal mine in Lahat, will
take 20 per cent.
The coal gasification project will cost at least US$1 billion,
he was quoted as saying by the newspaper Bisnis Indonesia.
-----------------------------
Indonesian Power Co Pln Succeeds In Reducing 25% Of Oil Fuel Use
JAKARTA, July 13 Asia Pulse - Indonesian state electricity
company PLN said it has succeeded in reducing 25 per cent its
dependence on oil fuel in the first half of this year.
PLN used only 4.5 million kiloliters of oil fuel in the first
six months of this year from around six million kiloliters in
the same period last year, its President Fahmi Mochtar said.
Fahmi said PLN could save oil fuel thanks mainly to success in
gasification program, adding hydropower and geothermal power
also have significant contribution.
A PLN spokesman Nasri Sebayang said the company saved around Rp6
trillion (US$600 million) with the diversification of fuels.
PLN is expected to save more oil fuel with its large program to
build coal-fired power plants with a total capacity of 10,000
megawatt now in progress to be completed next year.
Total, Inpex To Sell Gas To Indonesian Power Plant For 20 Yrs
- Exxon Mobil May Sell 20% Stakes In 2 Indonesian Blocks-Official
- TABLE-Indonesia June Minas crude rises to $72.13/bbl
- Asia Fuel Oil-Pertamina to buy 850,000 bbls in July
- Elnusa sells shares in IMN for Rp 598 billion
- Indonesia's Elnusa To Acquire Oil And Gas Block
(Courtesy Joyo News Service)
Total, Inpex To Sell Gas To Indonesian Power Plant For 20 Yrs
JAKARTA, July 1 (Dow Jones)--Total Indonesie and Inpex Corp.
will supply 20 million metric standard cubic meters of gas per
day to the Senipah power plant in East Kalimantan for 20 years,
an executive said Wednesday.
Ramli Akhmad, president director of Perusahaan Daerah
Kelistrikan dan Sumber Daya Energi, or PKSDE, said the company
will pay $3.5 per million British thermal units from 2011 to
2017 and $4.5/MMBTU from 2018 to 2031.
PKSDE will build the 80-megawatt power plant with PT Toba
Sejahtera in August and expects to finish construction in 2011.
Total Indonesie and Inpex will supply the gas from their
co-owned block in the Mahakam delta.
------------------------------
Exxon Mobil May Sell 20% Stakes In 2 Indonesian Blocks-Official
JAKARTA, July 1 (Dow Jones)--Exxon Mobil Corp. (XOM) is in talks
with Malaysia's Petronas Carigali Sdn. Bhd. on selling it 20%
stakes in two offshore blocks in Indonesia, a government
official said Wednesday.
"They have informed us about the plan," Achmad Luthfi, deputy
chairman for planning at upstream oil and gas regulating body BP
Migas, told Dow Jones Newswires.
Luthfi said Exxon Mobil intends to reduce its stakes to 80% in
the offshore Surumana and Mandar blocks to "share risks."
The U.S. company obtained the rights to the Surumana and Mandar
blocks, where it's still exploring for oil and gas, through a
bidding process in 2006 and 2007 respectively.
-------------------------------
TABLE-Indonesia June Minas crude rises to $72.13/bbl
TOKYO, July 1 (Reuters) - The official Indonesia Crude Price
(ICP) for Minas has been calculated at $72.13 a barrel for June,
an industry source with direct knowledge of the matter said on
Wednesday.
The June price, the highest since October 2008, was up by $10.69
from May, when it was set at $61.44.
The June ICPs for key grades were calculated as follows, in
dollars per barrel:
CRUDE MAY JUNE CHANGE
Minas 61.44 72.13 10.69
Ardjuna 57.07 68.45 11.38
Senipah Condensate 55.11 66.35 11.24
Attaka 58.49 70.11 11.62
Cinta 56.30 66.10 9.80
Duri 51.25 62.32 11.07
Widuri 56.33 66.19 9.86
Belida 58.09 69.24 11.15
Handil Mix 57.22 68.60 11.38
Lalang 61.49 72.18 10.69
Badak 58.49 70.11 11.62
Walio 61.24 71.93 10.69
From July 2007, Indonesia Crude Price (ICP) formula uses average
prices assessed by Platts (50 percent) and Japan's Rim (50
percent). (Reporting by Osamu Tsukimori)
--------------------------------
Asia Fuel Oil-Pertamina to buy 850,000 bbls in July
SINGAPORE, June 30 (Reuters) - Indonesia's Pertamina plans to
import five spot cargoes of 170,000 barrels of 180-centistoke
(cst) high sulphur fuel oil for July, up from June levels of
three to four cargoes, trading sources said on Tuesday.
The state energy firm also has a term contract to buy between
one and three cargoes per month from its trading arm Petral in
the July-September quarter, traders said.
Pertamina buys fuel oil for Indonesia's state power utility
Perusahaan Listrik Negara (PLN).
Indonesia frequently suffers blackouts as its electricity grid
has a power margin reserve of only about 20 percent, instead of
the more normal 30 percent, to secure supplies.
Southeast Asia's biggest economy is trying to seek other sources
of energy such as coal and natural gas to meet rising power
demand, and to cut consumption of crude oil as its own reserves
dwindle.
It has a crash programme to add 10,000 megawatts of coal-fired
power stations to meet electricity demand that officials say is
growing at around 10 percent a year.
Fundamentals in the Asian fuel oil market have recently been
underpinned by steady marine fuel sales, but expectations of
heavier Western arbitrage inflows in July and August are
expected to limit the market's gains.
Western fuel oil cargoes arriving in Asia in July are likely to
rise 27-32 percent to 3.2-3.3 million tonnes from June, while
August inflows could come in around or above the average monthly
volume of 3.0 million tonnes, traders and shipping brokers said.
(Reporting by Jennifer Tan; Editing by Ramthan Hussain)
--------------------------------
The Jakarta Post
Wednesday, July 1, 2009
Elnusa sells shares in IMN for Rp 598 billion
JAKARTA: Local oil and gas service company PT Elnusa has
divested all of its shares in an information and communication
service company PT Infomedia Nusantara (IMN), in a transaction
worth Rp 598 billion (US$58.58 million).
The shares were sold on Tuesday to PT Multimedia Nusantara, a
subsidiary of state telecommunications company PT Telkom, Elnusa
said in its official statement.
Initially, Elnusa owned 49 percent stake in IMN, which among
other things manages the Yellow Pages.
The divestment was made because IMN was not one of Elnusa's core
businesses, the statement added.
Half of the funds raised from the divestment will be used to
acquire news assets, which include oil and gas blocks that have
reached production stages.
Another 35 percent would be spent to upgrade its upstream
facilities, and the remaining 15 percent would be used to
finance its core business projects. – JP
------------------------------
Indonesia's Elnusa To Acquire Oil And Gas Block
JAKARTA, July 1 Asia Pulse - Publicly traded Indonesian oil and
gas exploration company PT Elnusa (JSX:ELSA), said it will set
aside Rp299 billion (US$29.9 million) to acquire oil and gas
blocks already producing this year.
Elnusa President Eteng A. Salam said the acquisition will be
financed with fund from the sales of 49 per cent stake it has in
information service company PT Infomedia Nusantara.
The company earned Rp598 billion from the sales of the shares to
PT Telekomunikasi Indonesia JSX:TLKM) recently.
The fund will be used to strengthen its capital in its core
business, Eteng was quoted as saying by the newspaper Investor
Daily.
- Indonesia's 2010 oil and gas output seen unchanged at 960,000 b/d
- Pertamina to announce Cilacap EPC contractor in October
- Indonesia's Pertamina not to increase gasoline imports in July
- update: Pertamina buys BP's 46% stake in Offshore Northwest Java block
- Indonesia Oil Drilling Ops Halted Over Land Dispute - Report
- Indonesia's Medco Energy To Repay $130 Mln Debt Next Month
- Indonesian LNG Plant To Start Production Later This Month
- Indonesia PLN says to raise up to $2 bln from global bonds
- Pertamina, Arrtu To Build Methanol Plants For $1.9 Bln
(Courtesy Joyo News Service)
Platts Commodity News
June 25, 2009
Indonesia's 2010 oil and gas output seen unchanged at 960,000 b/d
Jakarta -- Indonesia's oil and condensate output in 2010 is
likely to remain unchanged at 2009's target of 960,000 b/d, even
though output from the Cepu field was expected to resume, a
senior government official said Thursday.
"The figure of 960,000 b/d includes Cepu production, which will
contribute 20,000 b/d, but be offset by natural decline of 12% a
year," Energy and Mines Ministry director general of oil and gas
Evita Legowo said.
Production at Cepu, which saw first oil in December 2008, was
halted April 1 due to pipeline delays, which have since pushed
back the restart from July to August. It had initially been
expected to reach peak production of 165,000 b/d in 2012-2013.
The biggest country's oil producer, Chevron Pacific Indonesia,
expects to pump 364,800 b/d in 2010 and state-owned Pertamina
131,800 b/d, Legowo said.
The official 2010 output target will be set by parliament in the
coming weeks and announced in the 2010 state budget, Legowo said.
Indonesia's oil and condensate output averaged 951,833 b/d over
January-May, below its targeted 960,000 b/d. Output in May rose
0.25% from April to 824,783 barrels/day of oil and 116,800 b/d
of condensate.
However, the country produced an average of 7.773 Bcf/d of gas
January-May, above the 2009 target of 7.526 Bcf/d. The
government estimates gas output will further increase 1.75% to
7.658 billion cu ft/d in 2010.
The country produced 7.653 Bcf/d of gas in May, 1.8% less than
7.796 Bcf/d in April.
It missed its 2008 gas production target of 7.757 Bcf/day,
pumping only 7.478 Bcf/day.
Indonesia has 170.1 Tcf of proven, probable and possible gas
reserves, according to upstream regulator BPMigas. However, it
has seen its crude output fall in recent years due to natural
decline at aging fields. While meeting its 2008 target for oil
and condensate output of 977,000 b/d by pumping 988,060 b/d, it
has become a net importer rather than exporter and withdrawn
from OPEC.
Anita Nugraha, newsd...@platts.com
---------------------------
Platts Commodity News June 25, 2009
Pertamina to announce Cilacap EPC contractor in October
Jakarta -- Indonesia's state-owned oil and gas company Pertamina
will select the engineering, procurement and construction
contractor for its Cilacap refinery expansion in October this
year, a senior official said Thursday.
"The EPC announcement will be made in October this year,"
Pertamina's processing director, Rukmi Hadihartini, said.
The company had delayed the selection of the EPC contractor for
its Cilacap refinery expansion due to the global economic
slowdown.
Pertamina invited bids for the Cilacap expansion project in
October 2008 and had originally planned to award it in January
2009.
The company expects construction to start end 2009 or early 2010
and completed 2012-2013, the former president director of
Pertamina, Ari Soemarno, had said.
Pertamina and Japan's Mitsui had earlier signed an agreement to
set up a joint venture to build a $1.5 billion residue fluid
catalytic cracking unit at Cilacap. The unit is to have a
capacity of 60,000 b/d. Mitsui will have an 80% stake in the JV,
while the remaining 20% will be held by Pertamina.
Meanwhile, several companies, including Japanese Toyo
Engineering Corp., JGC Corp., South Korean GS E&C and US' Flour
Corp., have passed the prequalification tender for the EPC
contract. The front-end engineering design for the project will
be handled by Toyo Engineering, a Pertamina official has said
earlier.
The 348,000 b/d Cilacap refinery, which was designed to produce
mostly fuel oil to supply power plants in the country, is being
modified to produce more valuable products, such as gasoline and
gasoil.
Indonesia currently has seven oil refineries, all owned and
operated by Pertamina, with a total capacity of 1.05 million b/d.
Pertamina imports around 350,000 b/d of crude oil as Indonesia's
output is insufficient to meet domestic demand
Anita Nugraha, newsd...@platts.com
------------------------------
Platts Commodity News June 25, 2009
Indonesia's Pertamina not to increase gasoline imports in July
Singapore -- Indonesia's state-owned Pertamina does not plan to
increase its gasoline imports in July, despite an upcoming
partial turnaround at its Cilacap refinery, an industry source
said late Wednesday.
Pertamina has already lined up 4.6 million barrels of gasoline
imports for July -- all of which are from its third quarter term
supply.
Of the 4.6 million barrels, 4.2 million barrels are 88 RON
gasoline and the other 400,000 barrel comprise 92 RON grade.
This is unchanged from imports in June.
Pertamina plans to shut one of its two platformers at its
348,000 b/d Cilacap refinery for two weeks in August for
scheduled maintenance.
The company however, does not have any immediate plans to seek
additional spot barrels as it deems stocks as sufficient.
The Cilacap refinery has two platformers with a capacity of
8,000 b/d and 20,000 b/d, respectively. According to a source
the 8,000 b/d platformer is the one likely to be shut in August.
------------------------------
Platts Commodity News June 25, 2009
Pertamina buys BP's 46% stake in Offshore Northwest Java block
Jakarta -- Indonesia's state-owned oil and gas company Pertamina
and the local unit of BP signed sales and purchase agreement on
Thursday for the Offshore Northwest Java block, Pertamina's
President Director Karen Agustiawan told Platts.
Pertamina has bought BP's entire 46% stake in the block at $280
million, and would be the operator, he added.
"The acquisition is important for us to be a world class
company," he said. "Pertamina has a strong upstream business. We
are keen to cooperate with BP, whether in Indonesia or abroad."
The two companies expect to complete the transaction by June 30.
BP and Pertamina have agreed to cooperate on developing coalbed
methane projects in Indonesia, BP's chief executive of
exploration and production, Andy Inglis, said.
Pertamina is the sole buyer of BP's stake in the Offshore
Northwest Java block though earlier it had planned to do so in
partnership with Indika Energy. Medco Energi Internasional had
also expressed an interest in buying BP's stake.
BP sold the block as it did not fit the company's long-term
strategy, BP's Indonesia country head Nico Kanter said in
February. BP wanted to focus on the Tangguh LNG project in
eastern part of Indonesia, he added.
The other stakeholders in the Offshore Northwest Java block are
China's CNOOC (36.7205%), Japan's Inpex (7.25%), Orchard Energy
(Salamander) (5%), Japan's Itochu (2.5795%) and Canada's
Talisman Energy (2.45%).
The block produced 24,000 b/d of crude oil and 270,000 Mcf/day
of gas in 2008, and is expected to produce 28,000 b/d of oil and
around 270,000 Mcf/day of gas this year. Oil output is expected
to fall to 26,000 b/d in 2010, while gas output is expected to
be 135 MMBtu/d, according to data released by upstream regulator
BPMigas.
Pertamina's target for oil production in 2009 is 171,900 b/d
compared with 156,000 b/d in 2008. It aims to maintain its gas
output at 1.2 Bcf/d in 2009.
Anita Nugraha, newsd...@platts.com
-----------------------------
Indonesia Oil Drilling Ops Halted Over Land Dispute - Report
JAKARTA, June 25 (Dow Jones)--Citizens in the village of Kota
Baru in Indonesia's Jambi Province have blocked an oil drilling
operation by a contractor to the state oil company Pertamina due
to a land dispute, state news service Antara reported Wednesday.
Antara quoted a local man, identified only as Hidayat, as saying
that he and his family owned 2.3 hectares of land at the
Pertamina drilling site and that he had stopped the contractor's
drilling operation by cordoning off the area.
Hidayat told Antara that his family had agreed for the land to
be bulldozed in order to allow drilling but that the company had
moved other equipment onto the area without permission.
Antara reported that Hidayat had a certificate of ownership of
the land that appeared to be valid.
The news service didn't identify the Pertamina contractor, or
give further details about which of Pertamina's operations had
been halted.
A spokesman for Pertamina was unable to immediately verify the
report.
Pertamina owns stakes in several oil and gas developments in
Jambi, including the large Jabung oil and gas block.
---------------------------
Indonesia's Medco Energy To Repay Us$130 Mln Debt Next Month
JAKARTA, June 23 Asia Pulse - Largest Indonesian private energy
company PT Medco Energy Internasional said it will repay it
debts totaling Rp1.3 trillion (US$130 million) next month.
The company has enough cash at US$300 million to repay the
debts, company finance director Cyril Noerhadi said.
Last month, the company repaid a bond debt of US$230 million
also with its own cash, Cyril said.
He said the company is considering to sell treasury shares to
repay more debts in 2010.
He said the company also needs a total of US$1.5 billion to
finance its projects until 2013 including the Sarulla geothermal
power project in North Sumatra and the Senoro liquefied natural
gas project in Sulawesi.
------------------------------
Indonesian LNG Plant To Start Production Later This Month
JAKARTA, June 25 Asia Pulse - The Indonesian government said the
Tangguh liquefied natural gas (LNG) plant will start operation
on June 28 after long delay.
The first shipment of LNG from Tangguh to its first contract
buyer, the Chinese province of Fujian, however, was yet to be
announced, Oil and Gas director general Evita Herawati Legowo
said.
Under its contract the first shipment to Fujian was to be made
in February, but it was delayed on technical problem.
In May 24, the government shipped 153,000 cubic meters of LNG to
Fujian from the Badak LNG plant, which is bound by long term
contracts with buyers from Japan, South Korea and Taiwan.
The government could set aside LNG from Bontang for Fujian the
Bontang buyers imported LNG from other countries.
The Tangguh LNG also has other long term contract buyers
including Mexico-based Sempra Energy and K-Power and Posco
Energy from Korea.
---------------------------
Indonesia PLN says to raise up to $2 bln from global bonds
JAKARTA, June 24 (Reuters) - Indonesian state power firm
Perusahaan Listrik Negara (PLN) plans to raise as much as $2
billion of global bonds by the end of 2009 or early next year to
finance its power projects, its chief said on Wednesday.
PLN, long rumoured to be eyeing a global debt deal, had hired
Barclays Capital and UBS to arrange meetings with global debt
investors last month, sources said. [ID:nHKX001222]
"It (the global bond issue) won't happen in the near term. It
may be in the fourth quarter or early next year. It is something
that we need to consider in our financing structure," Fahmi
Mochtar told reporters.
When asked if PLN planned to raise between $1-$2 billion from
the bond issue, Mochtar said: "Yes, it will be around that
figure."
He said PLN was in the process of selecting underwriters and
that proceeds from the bonds would be used to finance all power
projects, including electricity-generating and transmission
networks.
The state-owned Indonesian electricity provider said in April
that it expected to report a net profit of 1 trillion rupiah
($96.71 million) in 2009 as it cuts costs.
PLN has been a perennially loss-making firm, and posted a loss
of 12.3 trillion rupiah last year. [ID:nJAK421923]
The company is under pressure to ramp up capacity and modernise
its plants. It has switched to natural gas and coal to meet
demand and cut consumption of crude oil. ($1=10340 Rupiah)
(Reporting by Fitri Wulandari, editing by Sara Webb)
------------------------------
Pertamina, Arrtu To Build Methanol Plants For $1.9 Bln
JAKARTA, June 25 Asia Pulse - Indonesian state oil and gas
company PT Pertamina will team up with PT Arrtu Mega Energie
(AME) to build two methanol factories at a total cost of US$1.9
billion .
Construction of the two factories in Indramayu, West Java and in
Peranap, Riau., will start in September, AME President
Christoforus Richard said.
The two factories are expected to start operation in 2012 with a
total capacity of 1.7 million tons a year, Richard said.
Pertamina will have a production share of 20 per cent or 340,000
tons, he said.
The factory to be built in Indramayu will have a capacity of
800,000 tons and the one in Peranap to have a capacity of
900,000 tons.
The factories will use sub bituminous coal as feedstock to be
supplied by state coal producer PT Tambang Batubara Bukit Asam.
Methanol could be used as an alternative to oil fuel, Richard
said.
------------------------------------------
- Medco To Pay US$50m In Dividends
- Indonesian Oil Co Medco To Pay Dividend Of $0.015 Per Share
- Pertamina to shut Cilacap refinery platformer unit
- Exxon Fails To Strike Oil In 1st Well Off Indonesian Coast
- Indonesia's Cepu Block To Start Production Late August
- Indonesian Govt Offering Four Oil, Gas Blocks In Se Sulawesi
- Indonesian Geothermal Power Plant Project May Be Shelved
- Indonesian Govt Approves PLN's Business Margin For 2010
(Courtesy Joyo News Service)
The Jakarta Post
Wednesday, June 24, 2009
Medco To Pay US$50m In Dividends
JAKARTA: Oil and gas company PT Medco Energi has announced it
will pay shareholders dividends of US$50 million in total or 1.5
cents per share from the company's 2008 net profits.
"The dividends will be paid to each shareholder on Aug. 21,
2009," Medco president director Darmoyo Doyoatmojo told
reporters Tuesday afternoon.
Medco booked net profits of $280.20 million last year, a hefty
increase from $6.60 million in 2007. - JP
---------------------------
Indonesian Oil Co Medco To Pay Dividend Of $0.015 Per Share
JAKARTA, June 23 Asia pulse - PT Medco Energi Internasional
(JSX:MEDC), Indonesia`s largest publicly-listed oil and gas
company, said shareholders agreed at a general meeting Tuesday
to allocate US$50 million of last year`s net profit as dividends
or US$0.015 a share.
The dividends accounted for 17.8 per cent of 2008 net profit
worth US$280.2 million, the president director, Darmoyo
Doyoatmodjo said.
The rest would be allocated as retained earning, working capital
and investment, he said.
Medco posted a net profit of US$7.5 million in the first quarter
of 2009, a 67 per cent drop from the same period a year earlier.
---------------------------
Pertamina to shut Cilacap refinery platformer unit
JAKARTA, June 24 (Reuters) - Indonesian state oil and gas firm
Pertamina plans to shut a platformer unit at its Cilacap
refinery for two weeks of maintenance around August, processing
director Rukmi Hadihartini said on Wednesday.
"This is for routine maintenance to change the catalyst,"
Hadihartini told reporters.
Cilacap has two platformer units to process naphtha into high
octane gasoline -- with capacities of 8,000 and 20,000 barrels
per day. (Click on [ID:nJAK488550] for refinery details)
Hadihartini did not specify which platformer unit would be shut
for maintenance at Cilacap, Indonesia's biggest refinery located
in Central Java province.
(Reporting by Muklis Ali; Writing by Ed Davies)
--------------------------
Exxon Fails To Strike Oil In 1st Well Off Indonesian Coast
JAKARTA, June 24 Asia Pulse - ExxonMobil will continue
exploration despite failure to strike oil in the first
exploration well in the Surumanu block off Indonesia's Central
Sulawesi, an official said.
Exxon is yet to carry out deep sea explorations in two other
wells in the block based on its contract until 2010, Achmad
Lutfi, a deputy at the Upstream Oil and Gas Executive Agency (BP
Migas) said.
Lutfi said the US company may not claim cost recovery in the
failed exploration, which cost it around US$70 million.
Exxon still has enough time until 2010 to proceed with
explorations in the two other wells, he was quoted as saying by
the newspaper Bisnis Indonesia.
--------------------------------
Indonesia's Cepu Block To Start Production Late August
JAKARTA, June 24 Asia pulse - The Indonesian Upstream Oil and
Gas Executive Agency (BP Migas) has predicted that Banyu Urip
oil field in the Cepu block in Bojonegoro district, East Java,
will start production as early as late August 2009.
The construction of a 32-km pipeline from Palang to the crude
oil collecting facility owned by Petrochina (SSE:601857,
SEHK:0857) at Mudi had been completed, BP Migas Deputy Chief
Abdul Muin said here on Monday.
"The construction of the problematic pipeline has been
completed," he said.
Muin said the agency was now waiting for the completion of a
mini refinery owned by PT Tri Wahana Universal (TWU) with a
capacity of 6,000 barrels per day.
The construction of the refinery had yet to be completed as the
contractor still had to wait for equipment from the United
States, he said.
"The refinery equipment is likely to arrive in the third or
fourth week of July. The equipment will later undergo a two-week
commissioning test. So it will start production only at the end
of August," he said.
The start of the oil field`s production estimated at 20,000
barrels per day (bpd) has been several times delayed as some
parts of the project are behind schedule.
Earlier, the government has targeted that the oil field would
start production late last year.
The Cepu block is expected to see its peak production of 165,000
bpd in 2012 or 2013.
Because of the delay in the start of the oil field`s production
since January 2009, BP Migas had lost a potential revenue of
US$150 million, Muin said.
Three factors had caused the delay, including slow land
clearance and a natural disaster in Houston, the United States.
The House of Representatives Commission VII overseeing energy
and mineral resources, research and technology and the
environment has set up a team to address the matter.
----------------------------
Indonesian Govt Offering Four Oil, Gas Blocks In Se Sulawesi
KENDARI, Indonesia, June 24 Asia Pulse - The Indonesian
government is offering investors development of four oil and gas
field blocks in South East Sulawesi (Sultra), an oil and gas
official said.
Head of Sultra`s Energy and Mineral Resources Service for oil,
gas, electricity and energy affairs Andi Aziz said here on
Tuesday that the central and regional governments had held
consultations with regard to the plan to offer the oil and gas
blocks to investors.
He said that based on the law, natural resources would be
offered for exploitations to a corporate body after the energy
and mineral resources minister held a consultation meeting with
the regional government.
"We have held consultations with the Ministry of Energy and
Mineral Resources (ESDM) the results of which included a
decision to offer the four oil blocks in Sultra to investors,"
Andi Aziz said.
The oil field blocks being offered are the Bone Bay I block in
Kolaka and North Kolaka districts, Boney Bay II in Kabaena
Island of Bombana district, Bone Bay IV in Buton district and
Menui block in the border area between Sultra and Central
Sulawesi.
Andi Aziz said that the four blocks were predicted to have large
natural oil potential but the production capacity could only be
known after explorations already carried out.
He said that no investors had yet to submit a formal application
for the explorations of the potentials.
Earlier the government has also offered two oil blocks in
Sultra, namely Buton I block and Buton II block. A Japanese
company has secured a license to explore Buton I block, while PT
Putindo Bintek has obtained the license to explore Buton II
block.
Aziz predicted that the oil and gas potentials of the blocks
would be known in the coming five years after the explorations
had been conducted.
-----------------------------
Indonesian Geothermal Power Plant Project May Be Shelved
JAKARTA, June 24 Asia Pulse - A geothermal power project in
North Tapanuli to be built by PT Medco Power Indonesia may be
shelved or cancelled over a price disagreement.
PT Medco Power Indonesia is to build the project in Sarulla with
power output to be sold to state electricity company PLN.
PLN refuses to increase the price from 4.5 US cents per kilowatt
hours (kWh) the level agreed upon during the signing of the
contract in 2004.
Medco asked for an increase with the rising cost of building the
project.
PLN Planning and Technology Director Bambang Praptono said if
the price is to be changed the entire contract has to be revised.
Bambang pointed out the contract was awarded to Medco on tender
and if the price is changed or raised other bidders that failed
in the tender could protest.
Medco has teamed up with Ormat Technologies of the United States
and Itochu Corp. (TSE:8001) of Japan in the Sarulla Operation
Ltd consortium that won the tender.
----------------------------
Indonesian Govt Approves PLN's Business Margin For 2010
JAKARTA, June 24 Asia pulse - The Indonesian government has
agreed to sanction state electricity company PT PLN`s business
margin of two per cent or about Rp3 trillion to calculate
electricity subsidies for 2010, an Energy and Mineral Resources
Ministry official says.
The new margin had been adjusted to the capacity of the state`s
finances, the ministry`s director general of electricity and
energy utilization, J Purwono, said on Tuesday.
The government had set PLN`s business margin for this year at
one per cent or about Rp1.5 trillion (US$145.5 million).
Purnomo said the government would soon discuss the PLN`s
business margin for 2010 with the House of Representatives
(DPR)`s budget committee for endorsement.
He said the PLN`s business margin would be included in the
component of electricity subsidy.
"The government does not want PLN to suffer losses and that it
provides electricity subsidy. The subsidy includes the business
margin," he said.
In addition to the capacity of the state`s finances, the 2010
business margin was also based on the company`s normal
operations and the people`s purchasing power, he said.
Earlier, PLN proposed a three per cent business margin to
calculate electricity subsidy for 2010.
PLN President Director Fahmi Mochtar said the rise in business
margin was needed to shore up market confidence in the company`s
plan to issue global bonds.
This year PLN proposed a one per cent business margin with
budget allocations for electricity subsidy projected at Rp42.46
trillion.
------------------------------------------
- OZ Minerals Expects To Complete Martabe Sale By End June
- Indonesian Govt Extends Deadline For Divestment Talks With Newmont
- Indonesia Average Oil Output In 1H09 951,986 B/D -BPMigas
- Indonesian Oil Production Falls Short Of H1 Target
- Indonesia's Pertamina EP's Production Reaches Highest Record
- PetroChina Completes S$1.47B Singapore Petroleum Stake Buy
(Courtesy Joyo News Service)
OZ Minerals Expects To Complete Martabe Sale By End June
SYDNEY, June 21 (Dow Jones)-- OZ Minerals Ltd. (OZL.AU) Monday
said it expects to complete the already announced sale of its
Martabe gold project in Indonesia to China Sci-Tech Holdings
Ltd. (0985.HK) by the end of June.
OZ Minerals said it will receive settlement proceeds of US$211
million from the sale, which will further improve its cash
balance.
The sale of the gold and silver project on Indonesian island of
Sumatra won approval from Australia's Foreign Investment Review
Board last month.
----------------------------
Indonesian Govt Extends Deadline For Divestment Talks With
Newmont
JAKARTA, June 22 Asia Pulse - The Indonesian government has
decided to extend by two weeks the deadline for divestment talks
with PT Newmont Nusa Tenggara (NNT), namely from June 15 to the
end of June 2009, a senior official said.
Director general for mineral, coal and geothermal affairs of the
Ministry of Energy and Mineral Resources, Bambang Setiawan said
here on Friday the government still saw a chance to reach an
agreement with NNT.
"There is still a chance to find a meeting point so that we
extend the deadline of the divestment negotiations by two more
weeks," Setiawan said.
With the extension of the deadline, the appointment of an
independent assessment team is delayed for the time being.
Previously, the government and NNT had agreed to appoint an
independent assessment team to calculate the value of NNT assets
for the divestment process if both sides failed to reach an
agreement by June 15, 2009.
Under a 1986 contract, Newmont must gradually sell 31 per cent
of its stake in NNT to the government or local parties it will
appoint in 2010.
Last year, NNT and the government went through an international
arbitration procedure following a dispute on how to implement
the divestment scheme.
The court ruled in favor of the Indonesian government. Under the
international arbitration court ruling, Newmont is required to
sell 17 per cent of its stake which was supposed to be carried
out in the 2006-2008 period.
The government and NNT have reached an agreement for the
divestment of 3 per cent worth US$109 million of the company`s
shares for 2006 with assets valued at US$3.63 billion, and 7 per
cent worth US$282 million for 2007 with assets estimated at
US$4.03 billion.
However both sides are still negotiating the divestment of 7 per
cent of NTT stake for 2008 and 2009 respectively.
They however have not yet reached an agreement on the value of
NTT`s assets for 2008 and 2009.
----------------------------
Indonesia Donggi LNG Export Plan Hinges On New Govt - Source
JAKARTA, June 22 (Dow Jones)--Indonesia's plan to export
liquefied natural gas from a massive development being done by a
consortium of energy companies could hinge on the new government
to be elected later this year, after current vice president
Jusuf Kalla last week said he would oppose the plan to export
the gas, a high-ranking official said Monday.
The consortium of Indonesian state oil and gas firm PT Pertamina
(PTM.YY), PT Medco Energi (MEDC.JK) and Mitsubishi Corp.
(8058.TO) of Japan, is unsure whether it will be allowed to
proceed with its plan to export LNG from the Donggi-Senoro field
in Central Sulawesi province, the official told Dow Jones
Newswires, declining to be identified.
"A decision will be made after the (presidential) election," the
official said.
Chubu Electric Power Co. (9502.TO) and Kansai Electric Power Co.
(9503.TO) of Japan have signed contracts to buy LNG from
Donggi-Senoro.
-----------------------------
Indonesia Average Oil Output In 1H09 951,986 B/D -BPMigas
JAKARTA, June 22 (Dow Jones)--Indonesia's oil production in the
first six months of the year has averaged 951,986 barrels a day,
just off the finance ministry's 2009 target of 960,000 barrels a
day, a spokesman for oil and gas regulator BPMigas said Monday.
Oil production so far in June has averaged 951,477 barrels a
day, Amir Hamzah said.
Liquefied natural gas production averaged 7,793 million standard
cubic feet a day in the first half of the year, and 8,138
mmscf/d in June, Hamzah said. The finance ministry is targeting
7,526.3 mmscf/d LNG production in 2009.
Crude oil accounts for the bulk of Indonesia's oil production
figures, with condensates accounting for a relatively small
portion. BPMigas doesn't normally provide separate figures for
crude and condensate production.
-----------------------------
Indonesian Oil Production Falls Short Of H1 Target
JAKARTA, June 22 Asia Pulse - Indonesia's crude oil production
in the first half of this year fell short of the target of
960,000 barrels per day.
Production so far this year averaged only 952,038 barrels per
day, on delay in the construction of pipeline and production
facilities, an official said. Upstream Oil and Gas Regulatory
Body (BP Migas) head R. Priyono said the Cepu oil field could
not operate at expected capacity over the delay in the pipeline
construction.
Cepu is the largest oil block expected to contribute to
Indonesia's additional crude production this year .
----------------------------
Indonesia's Pertamina EP's Production Reaches Highest Record
JAKARTA, June 22 Asia Pulse - Indonesian oil company Pertamina
EP's production reached its highest record of 128,618 barrels a
day on June 17, 2009, which was higher than the target set at
125,500 barrels a day.
"The achievement shows Pertamina EP transformation, which is
entering the second stage of the Three Year Development Plan,
has been on the right track," the company's operations director,
Bagus Sudaryanto, said here on Friday.
He said going forward Pertamina EP would focus more on
maintaining and increasing production growth considering that
the potential of a natural drop in production still remained
high at an average 18 per cent.
The biggest production hike in percentage, he said, was achieved
through Pertamina EP Indonesian Eastern Region (KTI) reaching
119 per cent of the target.
"On June 17 production in the KTI was recorded at 5,951 barrels.
The Limau unit`s production meanwhile reached 12,250 barrels or
119 per cent of the target," he said.
He said production hike was also recorded at Pertamina EP Java
Region, reaching 25,503 barrels a day, Sumatra Region reaching
18,241 barrels a day and at the Sukowati field reaching 24,718
barrels a day.
Pertamina EP`s production continued to increase since 2003 at a
rate of 3.1 per cent. Bagus said Pertamina EP`s production in
2003 reached 95,600 barrels a day and rose to 102,200 barrels a
day in 2006.
"It again rose 6.7 per cent in 2007 to 110,300 barrels a day and
7.8 per cent to 116,600 barrels a day in 2008. This year we
expect it will grow 6.2 per cent to 125,500 barrels a day," he
said.
Pertamina EP is also known as the country`s second biggest gas
producer with its gas production right now reaching 1,033 mmscfd.
"Of the production 28 per cent goes to Perusahaan Gas Negara
(PGN), 28 per cent to fertilizer companies, 18 other per cent to
power companies and the rest 14 per cent to Pertamina refineries
and for own use," he said.
Pertamina EP is the subsidiary of state-owned oil company PT
Pertamina, operating in domestic exploration and exploitation of
oil and gas.
----------------------------
PetroChina Completes S$1.47B Singapore Petroleum Stake Buy
HONG KONG, June 21 (Dow Jones)--PetroChina Co. (PTR) said Sunday
it completed the purchase of a 45.51% stake in Singapore
Petroleum Co. (S99.SG) and will make a mandatory offer to buy
the shares in the company it doesn't already own.
The Hong Kong-listed oil producer said it will offer to acquire
the remaining Singapore Petroleum shares for S$6.25 each, as
required by Singapore's takeover laws.
PetroChina said last month it agreed to buy Keppel Corp.'s
(KPELY) stake in Singapore Petroleum for S$6.25 a share, for a
total consideration of S$1.47 billion. Singapore Petroleum
closed at S$6.11 Friday.
Singapore Petroleum has a 50% interest in Singapore Refining
Co., which owns a 285,000 barrel-per-day refinery and is one of
three major oil refiners in Singapore.
Singapore Petroleum also has interests in oil and natural gas
blocks in China, Indonesia, Vietnam, Cambodia, and Australia.
------------------------------------------
