PetroJournal - March 2019

PETRO JOURNAL

MARCH 2019 EDITION JOURNALISM SPE ITS SC 2018/2019

Monthly Recap

Flash News

Company Profile

Flash Course Competition Info

INDEX

3rd SCIENCE COURSE

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MONTHLY RECAP

INSPECT: INTEGRATED SPE COMPANY VISIT Husky-CNOOC Madura Limited

MONTHLY RECAP

SPE GRADUATION

MONTHLY RECAP

SPE BOD PHOTOSHOOT

MONTHLY RECAP

FLASH NEWS

BREAKING: OPEC CUTS SUPPLY INSTANTLY BOOSTING OIL PRICE

Oil prices rose on Thursday on the back of ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran, but gains were capped by record U.S. crude output, rising inventories and falling estimates of global demand growth.Brent crude futures were at $66.83 per barrel at 1143 GMT, up 84 cents or 1.2 percent from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were at $56.82 per barrel, up 60 cents. Prices were supported by efforts by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia to cut output and tighten oil markets. "In our view, OPEC's strategy is to rebalance the market as quickly as possible and exit the cuts by the end of June in order to grow production alongside shale producers in the second half of this year," U.S. investment bank Goldman Sachs said in a note on Wednesday.

U.S. sanctions against the oil industries of OPEC members Iran and Venezuela have also had an impact, traders said.Venezuela's state-run oil firm PDVSA this week declared a maritime emergency, citing trouble accessing tankers and personnel to export its oil due to sanctions.

FLASH NEWS

Within the U.S. sanctions against Iran, Washington granted its biggest buyers mostly in Asia - waivers when the measures were re-introduced in November 2018 that would allow them to buy limited amounts of crude for another 180 days.

Washington has put pressure on these governments to gradually cut their oil imports from Iran to zero, but importers remain in talks over potential extensions, with India asking to be allowed to buy same volumes.

Despite these factors, oil remains in plentiful supply thanks to surging U.S. production. U.S. crude oil stockpiles rose much more than expected last week, with inventories up by 7.1 million barrels to 452.93 million barrels, according to a weekly report by the U.S. Energy Information Administration (EIA) on Wednesday.

U.S. crude oil production was at a record 12.1 million bpd, an increase of more than 2 million bpd since early 2018.

That, along with the easing of a transportation bottleneck for low-cost U.S. Permian Basin shale oil, could lead to higher output, Goldman Sachs said.

"Unfortunately for the bull camp, the forward supply of crude oil is showing signs of increasing," Marex Spectron said in a note. The Organization for Economic CoOperation & Development (OECD) said on Wednesday the world economy would grow 3.3 percent in 2019, down 0.2 percentage points from its last set of forecasts in November.

Source: https://www.oilandgaspeople.com/news/18038/breaking-opec-cuts-supply-instantlyboosting-oil-price/ Published in Oil Industry News on Thursday, 7 March 2019

COMPANY PROFILE

PERTAMINA PT Pertamina (Persero) has now journeyed with over six decades of experience in the energy industry.

Pertamina continues to work hard in building the nation through strengthening its commitment in the fields of New and Renewable Energy and Business Diversification. This commitment is demonstrated through the provision of more quality products to meet the demands of consumers for superior products. It is now time for Pertamina to strengthen its steps, in order to face a variety of challenges with optimism so as to create sustainable business growth for the Company through investment and business optimization in order to continue growth in line with the expectations of all stakeholders.

What they do?

Upstream Downstream Performance of Gas, New, and Renewable Energy Sector

PHOTO: pertamina.com

PHOTO: https://pep.pertamina.com/

PT Pertamina EP PT Pertamina EP (PEP) is engaged in managing the upstream oil and gas production through a more manageable exploration and exploitation activities.

Adding to that, PEP has been undertaking other supporting businesses, which have been intended to back up the main business directly or indirectly.

Presently, Pertamina EP production level for oil is around 127,635 throusand barrel oil per day (BOPD) and around 1,054 million standard cubic feet per day (MMSCFD) for gas.

Pertamina EP Working Areas of 140.000 km2 were once largely PT Pertamina (Persero)’s Oil and Gas Mining Authority Zone. The working areas are managed through own operation and partnership co-operation.

Pertamina EP Working Areas consist of five assets. The operation of those assets comprise 19 Field Areas, namely Rantau, Pangkalan Susu, Lirik, Jambi and Ramba in Asset 1, Prabumulih, Adera, Limau and Pendopo in Asset 2, Tambun, Subang and Jatibarang in Asset 3, Cepu in Asset 4 as well as Sangatta, Sangasanga, Bunyu, Tarakan, Tanjung and Papua in Asset 5.

COMPANY PROFILE

Pertamina Gas (PT Pertagas) Pertamina established PT Pertagas on 23 February 2007, and it became PT Pertamina Gas in 2008. The company undertakes gas transportation, trading and processing. In the gas transmission business, Pertamina owns a gas pipeline network with a total volume of 34,000 km-inches in Northern Sumatra, Central Sumatra, Southern Sumatra, Western Java, Eastern Java, and East Kalimantan.

PHOTO: http://www.pertagas.pertamina.com/

In January 2009, PT Pertamina Gas obtained a Transportation Permit and in February 2009, it received an exclusive right from BPH Migas for gas transportation along 43 transmission routes. These permit and exclusive rights complemented the business permit that had been issued previously (in September 2008). By obtaining a business license and special rights, PT Pertamina Gas now has a regulatory basis to play the principal role in the gas business in Indonesia.

PHOTO: https://www.rambuenergy.com/2015/07/pertamina-unit-pertagas-niagasigns-gas-sale-agreement-with-pt-pgn/

COMPANY PROFILE

PHOTO: http://pge.pertamina.com/

Pertamina Geothermal Energy PGE was founded on 12 December 2006. This Pertamina subsidiary carries out geothermal exploration and exploitation in 15 working areas (WKP) in Indonesia, namely: Sibayak-Sinabung, Sibual-buali–Sarulla, Sungai Penuh-Sumurup, Tambang Sawah-Hululais, Lumut Balai, Waypanas-Ulubelu, Cibereum-Parabakti, Pengalengan (Patuha-Wayang Windu), Kamojang-Darajat, Karaha-Telagabodas, Dieng, Iyang-Argopuro, Tabanan-Bali, Lahendong-Tompaso and Kotamobagu.

PHOTO: http://phe.pertamina.com/

Pertamina Hulu Energy PHE is one of the Upstream Directorate subsidiaries working in the oil and gas upstream business, and is also an upstream business vehicle for managing the domestic and overseas co-operation portfolio in the form of: Production Sharing Contracts (PSC), Joint Operating Body-Production Sharing Contracts (JOB-PSC), Indonesian Participating / Pertamina Participating Interests (IP/PPI) and Badan Operasi Bersama (BOB). PHE’s overseas working areas covered: Western Desert Block 3,Iraq; Block 10&11.1, Offshore South Vietnam; Block SK-305, Offshore Sarawak, Malaysia; Sabratah 17-3 Block, Offshore Libya; Sirte 123-3 Block, Libya; Block 13, Red Sea, Offshore Sudan; Block-3, Offshore Qatar; and Basker Manta Gummy Block, Australia.

COMPANY PROFILE

PHOTO: https://pdsi.pertamina.com/

Pertamina Drilling Services Indonesia PT PDSI was established on 13 June 2008 as a drilling service management business entity. The services provided comprise drilling, workover activities, and drilling services that use a Daily Rate and Integrated Drilling Management (MPT) system for oil, gas, and geothermal wells.

Presently, PT PDSI owns 34 drilling rigs (28 owned by PT PDSI and 6 transferred from PT Usayana).

Pertamina EP Cepu ADK PT Pertamina EP Cepu ADK hereinafter referred to as PEPC ADK was established on August 15, 2013 in order to manage Fields of Alas Dara and Kemuning (ADK).

Following the prevailing rules and legislation in the Ministry of Energy and Mineral Resources, the PSC between SKKMigas and PEPC ADK was signed on February 26, 2014.

PHOTO: http://pepcadk.pertamina.com/

PHOTO: http://www.piep.pertamina.com/

Pertamina Internasional EP Pertamina Internasional Eksplorasi dan Produksi (PIEP) is established on 18th November 2013, based on the need for an international asset management that is focused on overseas assets of PT Pertamina (Persero).

PEPC ADK is the operator of Alas Dara and Kemuning, located in Blora, Central Java, which was previously operated by Mobil Cepu Ltd. (MCL). In line with the commitment to the Government, PEPC ADK shall conduct Well Reentry, Perform G&G Study, GGR Study, and exploration drilling.

Since established, the PEPC ADK has never changed its name.

COMPANY PROFILE

PHOTO: http://pepc.pertamina.com/

Pertamina EP Cepu PEP Cepu, which was established on 14 September 2005, is a subsidiary of PT Pertamina (Persero) that focuses on the upstream oil and gas business. In the Cepu Block, Pertamina has a 45% interest in partnership with Mobil Cepu Ltd (as the operator) and the Regional Owned Enterprise (BUMD) that manages the KKS for the Cepu Block.

Source: http://pertamina.com/

ConocoPhillips Algeria Ltd ConocoPhillips Algeria Ltd. owns three onshore oil fields. The company is based in Algeria. As of November 27, 2013, ConocoPhillips Algeria Ltd. operates as a subsidiary of PT Pertamina (Persero)

PHOTO: https://www.pertamina. com/id/viewarchive/energianews/pertamina-akuisisiconoco-philips-algeria

FLASH COURSE

Classification of Oil and Gas Companies Considered to be the biggest sector in the world in terms of dollar value, the oil and gas industry is a global powerhouse employing hundreds of thousands of workers worldwide as well as generating hundreds of billions of dollars globally each year. In regions which house the major NOCs, these oil and gas companies are so vital they often contribute a significant amount towards national GDP. These are some classification of companies that engaged in oil and gas industry.

The Upstream Companies The Upstream companies searches for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface. The upstream oil sector is also commonly known as the exploration and production (E&P) sector. (example: Saudi Aramco – Saudi Arabia, NIOC – Iran, PDVSA – Venezuela)

The Midstream Companies The Midstream Companies involves the transportation (by pipeline, rail, barge, or truck), storage, and wholesale marketing of crude or refined petroleum products. The midstream operations are often taken to include some elements of the upstream and downstream sectors. (example: Kinder Morgan Energy Partners, Plains All American Partners, Enterprise Products Partners)

FLASH COURSE

The Downstream Companies The Downstream Companies commonly refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas. The downstream sector touches consumers through products such as gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and LPG as well as hundreds of petrochemicals.

Independent Oil and Gas Companies are non-integrated companies which receives nearly all of its revenues from production at the wellhead. They are exclusively in the exploration and production segment of the industry, with no downstream marketing or refining within their operations. (example: ExxonMobil – North America, Tatneft – Eastern Europe, Shell – Western Europe).

Integrated Oil & Gas Companies Integrated Oil & Gas Companies engages in the exploration, production, refinement and distribution of oil and gas. Typically, integrated companies divide their various operations into categories: upstream, which includes all exploration and production endeavors, and downstream, which is confined to refinement and marketing activities. (example: Chevron – North America, Petrobras – Latin America, Statoil – Western Europe).

COMPETITION INFO

PETRO BOWL

"Would you like me to give you a formula for success? It's quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn't at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes.

Make all you can. Because remember that's where you will find success.�

Thomas J. Watson

PHOTO: https://www.total.com/en/energy-expertise/projects/oil-gas/lng/ichthys-abold-lng-project-off-the-coast-of-australia

Australia is becoming the world’s largest LNG exporter Australia is rapidly becoming the largest exporter of liquid natural gas and is even predicted to surpass Qatar by 2020. Some sources say that the expansion of the LNG industry in Australia will continue to attract project investments and open up long-term employment opportunities.

This is largely thanks to an abundance of production sources, coal seam gas and natural gas fields, located offshore in the north and west and onshore in the east.

Also, Australia is mixing gas and renewable energy to support a secure power supply Australia is one of the only countries that is combining renewable energy with gas to create a more secure power supply.

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