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NEW DELHI: Domestic edible oil prices, already high, are set for a surge as Indonesia, the world's largest producer of palm oil, will ban exports from 28 April.
The Indonesian government is preparing to launch domestic legal action against Thailand’s PTT Exploration & Production (PTTEP) (BKK:PTTEP) relating to economic and environmental damages suffered by local people around Kupang following the 2009 Montara oil spill.
Jakarta (VNA) - Indonesian President Joko Widodo on January 24 launched the construction of a 2.3 billion USD coal gasification plant, in a bid to reduce the country's liquefied petroleum gas (LPG) imports while optimising its coal resources. The plant is designed to utilise 6 million tonnes of low rank coal to produce 1.4 tonnes of dimethyl ether (DME) annually,
US supermajor ExxonMobil (NYSE:XOM) is planning to increase its investment in Indonesia’s giant Cepu Block by $170 million. The investment is expected to increase oil output by 20,000 barrels per day. Director General of Oil and Gas at the Energy and Mineral Resources (ESDM) Ministry Tutuka Ariadji said ExxonMobil and its partners struck a deal with upstream regulator SKK Migas to increase its investment by more than $170 million, reported local media.
"The Indonesian government estimates that $187 billion needs to be invested in its upstream sector to meet its 2030 oil and gas production targets of 1 million barrels per day of oil and 12 billion standard cubic feet per day of gas. However, this target seems ambitious with major investors seeking to exit Indonesia’s oil and gas sector."
Indonesia’s oil reserves will run out in about 10 years, assuming no new reserves are discovered. Natural gas is also estimated to be exhausted in approximately 22 years with existing reserves at 77.3 trillion cubic feet. Meanwhile, coal reserves of 37.6 trillion tonnes will be exhausted within 65 years if exploited at the same scale as today.
Indonesian state electricity company, PLN has inked an initial deal to purchase 167 BBTU of gas per day from PT Pertamina for 20 years. The deal comes as PLN reduces the use of diesel fuel. Energy major, Pertamina will provide LNG to PLN's power plants with a combined capacity of 1,870 megawatt, across 52 sites within two years.
Indonesian state-run, PT Pertamina inked a framework agreement with Malaysia's Petronas to sell and buy crude this year. The deal, which was announced through a statement yesterday, will see Petronas and Pertamina swapping crude produced in the Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Indonesian fields of Jabung and Ketapang. The agreement follows up from Petronas and Pertamina's plan last year to exchange crude.
Indonesian hydrocarbon company, PT Pertamina has aimed to start drilling in Indonesia's Rokan oilfields in the third quarter of this year. It has planned to drill 20 wells minimum this year. The Indonesian government had decided in 2018 to hand over the operatorship of Pertamina over Rokan block as the contract with Chevron Corp ends in Aug'21.
Indonesian Deputy Energy Minister yesterday informed about awarding the West Ganal oil and gas exploration block to a consortium led by Eni. The consortium, which also consists of Pertamina and Neptune Energy, has fixed a commitment of $159.3 million investment for the next three years. The Indonesian government received a signature bonus of $30.1 million through the deal.
Japanese oil firm, Inpex Corp. has reached an agreement with Indonesia for the $20 billion Abadi liquefied natural gas project. In an interaction with reporters at a G-20 energy and environment meeting in Japan, Inpex President informed that the heads of agreement contains a contract extension for Inpex to operate the Masela field until 2055. Inpex holds a 65% stake in Abadi field where Royal Dutch Shell is partner.
Indonesian oil major, Medco Energi has concluded the $517.34m acquisition of Ophir Energy. The UK-based exploration and production firm nodded to the proposed acquisition by Medco Energi in January, 2019. The estimated increase in Medco’s 2019 pro forma production will range around 29% to 110,000 boed. The $517.34 million all-cash acquisition was funded through a blend of existing cash resources and credit received under an agreement from Standard Chartered Bank.
In a major acquisition move, Indonesia’s Medco Energi has settled to acquire London-based Ophir Energy in $511 million. Medco’s recent offer followed the previous offer of $437 million which Ophir rejected stating that it undervalued the company. The Jakarta-based oil and gas group is looking to expand its reach to international assets. Post-acquisition, Medco will gain rights to assets in Tanzania and Mexico.
In a major accident in the South China Sea, an offshore tanker rammed into the pipelay vessel, Star Centurion, and sank the £77 million ship. The collision punctured a hole in Star Centurion, making it tip onto its side. Tanker owner, Bernhard Schulte Ship Management stated that all crew members on the vessel were accounted for. The course of pipelay vessel is thought to have been charted out for Indonesia.
British energy company, Ophir Energy has informed that it has rejected Medco Energi’s International Tbk PT’s potential buyout offer. Indonesian oil and gas group made an unsolicited approach to buy Ophir in October last year offering 340 million pounds in cash. Meanwhile, Ophir’s shares lost almost half of their value after failing to find financing for its LNG project in Africa last year.
Eni has received an approval from Indonesia’s Minister of Energy for the Merakes development project. The project is in the Kutei Basin and will involve the drilling and construction of subsea wells. Eni’s Board of Directors have also given a go-ahead to investment plan for the Merakes project. The CEO commented that “the Merakes Development Project approval is an important step for our strategy in South East Asia”
Indonesian state-owned Pertamina has signed up SK E&C and Hyundai E&C for the $4 billion Balikpapan refinery upgrade project. In the same media briefing, the state oil major also entered into a framework agreement with Oman’s Overseas Oil and Gas LLC (OOG) for the development of a $10 billion refinery and petrochemical complex in Bontang.
Indonesian Merakes project of Eni will start production of natural gas in 2021, informed country’s deputy energy minister. This offshore project is expected to produce 155 mmcfd of natural gas per day initially which might rise to 391 mmcfd. According to the latest revision, Eni and its partner Pertamina will take 67% of crude oil and 72% of natural gas production and the rest will go to the Indonesian government.