Friday, February 23, 2018

Indonesia News

Asia's Soaring Gas Demand Beckons New LNG Projects

File Image: A typical LNG Carrier (CREDIT: GAC)

Global LNG imports rose by 20 percent in 2017; new demand emerges across South, Southeast Asia. Soaring gas demand from China, India and Southeast Asia is sucking up an LNG supply glut previously expected to last for years, opening opportunity for new production from East Africa to North America that had been deemed part of the overhang. Trade flows in…

LNG Rebounds as Asian Buyers Replenish Inventory

file Image: A loaded LNG carrier transits the Med in a recent photo (CREDIT: Robert Murphy)

Interest for prompt spot cargoes still keen; demand could roll over to April. Asian spot liquefied natural gas (LNG) prices rebounded this week as persistently cold weather in North Asia forced buyers to enter the spot market to replenish inventory. Spot prices for March <LSG-AS> delivery in Asia climbed 40 cents to $10.60 per million British thermal units (mmBtu) this week, according to several LNG traders in Asia.

India, Indonesia on Different Coal Paths

India, poised to become the world's largest importer of thermal coal, appears to be opening up its domestic mining sector to foreign competition just as Indonesia, its biggest supplier, is making it harder for exporters. On a superficial level it appears that India and Indonesia are choosing different paths for their coal sectors, but the policies being pursued by the countries' new…

Contracts for BP's Indonesian LNG Project

BP said on Wednesday it had awarded the onshore front-end engineering and design (FEED) contracts for the $12 billion Tangguh LNG expansion project to two Indonesian consortiums. BP and its Tangguh partners also signed a sales and purchase agreement with Indonesia's state-owned electricity company to supply up to 1.5 million tonnes of liquefied natural gas (LNG) per year from 2015 to 2033.

Chevron Wants VAT Cut on Indonesian Crude Sales

Chevron has offered to sell 125,000 barrels per day of crude oil to Indonesia from two of its domestic oilfields on condition of an exemption from a 3 percent value added tax, the country's oil and gas regulator (SKKMigas) said on Tuesday. The regulator will propose the tax break to the tax directorate at the finance ministry, SKKMigas chairman Amien Sunaryadi told reporters on Tuesday…

Rosneft Discusses Joint Projects with Indonesia's Pertamina

Rosneft, Russia's largest oil producer, said on Wednesday its head Igor Sechin had discussed joint projects with Indonesia's Pertamina. Pertamina's possible participation as a shareholder in Rosneft's upstream projects in Russia was discussed, it said. Both companies also considered possible Rosneft's participation in downstream projects in Indonesia.

ExxonMobil starts Banyu Urip CPF

Indonesia flag Photo Indonesian Consulate

ExxonMobil announced today the successful and safe startup of the onshore central processing facility at the Banyu Urip field in Indonesia, helping increase production to more than 130,000 barrels of oil per day. With the central processing facility now online, production will continue to increase in the coming months. Once full field production is reached…

Arun LNG to Ship Final Cargo

Indonesia's Arun liquefied natural gas (LNG) project in Aceh in northern Sumatra has stopped producing the super-cooled fuel as it switches to being a receiving and regasification terminal, an official from the plant said on Tuesday. Indonesia is still one of the world's biggest LNG exporters, but with domestic production slipping the country of 240 million…

JX Eyes Indonesia, Vietnam for 1st Big Refining Push into Asia

Japan's JX Nippon Oil & Energy Corp is looking at building refineries and petrol stations in Indonesia and Vietnam as fuel consumption slumps at home, in what would be its first major downstream oil investment in Asia outside Japan. Japan's biggest oil refiner sees the two markets as the most promising locations for investment due to their robust economic growth outlook and openness to foreign investment…

AziPac, Mitra Energy, Invest in Bone PSC, Offshore Indonesia

File photo

AziPac Limited says it has signed a Farm-in Agreement with Mitra Energy Limited for a 40% interest in the Bone PSC, Offshore Indonesia. The Bone PSC is situated in Bone Bay, offshore South Sulawesi, and lies in water depths extending from the coast to over 2,000m. The block covers an area of 7,516 km², which is equivalent to approximately 327 Gulf of Mexico blocks or 31 UK Central North Sea blocks.

Oman to Build Refinery, Petchem Plant in Indonesia

Oman has committed to invest $7 billion to build oil storage facilities, a petrochemical plant and a refinery in Indonesia, an Indonesian minister said on Thursday. Oman also agreed to supply crude oil to the former OPEC member but details on the amount and price were not disclosed. Energy Minister Sudirman Said said the refinery would be built in Indonesia's Riau province, with the oil products being purchased by state-owned Pertamina.

Indonesia to Keep OPEC Membership Frozen

Indonesia will keep a freeze on its membership of the Organization of the Petroleum Exporting Countries (OPEC), deputy energy minister Arcandra Tahar said on Tuesday, following "directions" from the country's President. Indonesia's OPEC membership was suspended in December 2016, less than a year after it rejoined the cartel, when the net oil importer could not agree to production cuts.

Indonesia Offers 15 Oil Blocks amid Thin Industry Interest

Indonesia is offering 15 conventional and unconventional oil and gas blocks to potential bidders, government officials said on Friday, hoping more flexible terms will help reverse flagging interest in the sector after lacklustre performance in 2016. This year the government is applying new production sharing rules and will revise rules on recoverable costs and cut import duties on exploration equipment where possible…

Crude Price Impacts Southeast Asia's Biodiesel Plans

Indonesia, Malaysia plan to use more palm oil to make biofuel. Industry, analysts sceptical of targets. The world's top palm oil producers Indonesia and Malaysia may have to curb plans to channel more of the commodity into biodiesel as tumbling crude oil prices render the edible oil twice as expensive as its fossil fuel alternative. Indonesia expects…

Pertamina Plans to Develop South China Sea Border Areas

Energy company Pertamina plans to explore for oil and gas in areas close to Indonesia's maritime border in the South China Sea to assert the country's territorial rights, the upstream director of the state-owned company said. "The government needs to have activities around the borders and one of Pertamina's strategies is to support this," Syamsu Alam told Reuters in an interview on Monday.

Indonesia Seeks to Rejoin OPEC

Indonesia left OPEC in 2008 on becoming net oil importer. Energy minister to attend June OPEC meeting as an observer. Indonesia's energy minister said on Thursday he would seek President Joko Widodo's approval for the country to rejoin OPEC, seven years after leaving the oil exporters' group. If it returned, Indonesia would be the fourth-smallest producer in the Organization of the Petroleum Exporting Countries ahead of Libya…

Indonesia’s Economic Success Hinges on Energy Investments

New IEA review of country’s energy policies lauds phase-out of gasoline subsidies as key first reform. Indonesia is enhancing the governance and transparency of its energy institutions and state-owned companies, reducing fuel subsidies and facilitating much-needed infrastructure investments, the International Energy Agency (IEA) said today in its second in-depth review of the country’s energy policies…

BP to Expand Indonesia’s Tangguh LNG Facility

Tangguh LNG is a major multinational project involving the development of six gas fields in the Wiriagar, Berau and Muturi Production Sharing Contracts (PSC) in Bintuni Bay, Papua Barat. Photo BP

BP, on behalf of Tangguh Production Sharing Contract Partners, today announced that the Final Investment Decision (FID) has been approved for the development of the Tangguh Expansion Project in the Papua Barat Province of Indonesia. “The Tangguh Expansion Project demonstrates BP and its partners’ continued confidence in Indonesia and our commitment to work closely with the government to meet the country’s energy needs…

7 Million Tonnes of Indonesian LNG Uncommitted for 2017 Delivery

File Image: a modern LNG carrier underway (CREDIT: QGTC)

There are currently 63 uncommitted cargoes of liquefied natural gas (LNG) for 2017 delivery from Indonesia's Tangguh and Bontang projects, Wiratmaja Puja, the country's Director General of Oil and Gas, said on Thursday. "We are still oversupplied," Puja said, noting that the government was looking for committed buyers and that deals for 13 of the cargoes were currently being negotiated.

Oil Majors Praise Indonesia's New Approach to Investment

Efforts by Indonesia's new administration to attract investment to the country's troubled energy sector are being viewed favourably by energy giants Exxon Mobil and Chevron. Graft, regulatory, legal and contractual uncertainties have undermined energy investment in Southeast Asia's biggest economy. Aging wells and a lack of exploration have led to declining…