Faster Than Target and Saving 12 Million Dollars Per Year, Pertagas Stream Gas to BOB Siak Power Plant
August 28, 2020 - PT Pertamina Gas (Pertagas) has officially stream gas (gas-in) to the location of the BOB Power Plant, Pusako District, Siak Regency. With this gas flow, it is hoped that there will be no more problems with electricity operations and can reduce operating costs in order to increase oil production at BOB PT BSP-Pertamina Hulu.
The inauguration of the gas distribution was carried out directly at the location of the BOB Power Plant, Pusako District, Siak Regency, Riau, Friday (28/8/2020). This activity was also carried out through video conference (online) attended by the Secretary-General and Acting Director-General of Oil and Gas of the Ministry of Energy and Mineral Resources, Ego Syahrial, and Deputy Head of SKK Migas, Fatar Yani Abdurrahman. Along with President Director of Pertamina, Nicke Widyawati, Governor of Riau Syamsuar, Regent Siak Alfedri, Director of PT Bumi Siak Pusako, Iskandar, Director of PT Pertamina Gas, Wiko Migantoro, Director of PT PHE CPP, Taufik Aditiyawarman and other parties who have contributed to the implementation of this gas distribution.
BOB PT BSP- Pertamina Hulu and PT Pertamina Gas have collaborated as outlined in the Gas Sales and Purchase Agreement (PJBG) and its amendments, which were signed in October 2019. In the agreement, PT Pertamina Gas provides the gas needed by BOB PT BSP - Pertamina Hulu of 6 MMSCFD for the needs of the Power Plant operation in the CPP Block Working Area which aims to meet the petroleum production target set by the government.
To stream gas originating from the Jambi Merang PHE KKKS, PT Pertamina Gas in collaboration with PT BSP Zapin, a subsidiary of PT Bumi Siak Pusako, has built a gas distribution pipe and its facilities at TGI SV 1401 point in Koto Gasib District along 67 km to the PT BSP-Pertamina Hulu BOB Power Plant located in Pusako District, Siak Regency.
President Director of Pertamina, Nicke Widyawati, said that the construction of the gas distribution pipeline ran smoothly and safely even though it was carried out in the conditions of the Covid-19 pandemic. Therefore, the gas distribution could be carried out on August 25, 2020, faster than the target expected, which is in September 2020.
"This project has been completed and completed sooner than planned, which was in September 2020. Now it can be operated. This 67 km long gas pipeline can certainly absorb the budget, which can help increase the regional economy and absorb labor," said Nicke.
Nicke said Riau was a strategic province for the Pertamina group, where Pertamina and its subsidiaries carried out many oil and gas work activities both in the upstream and downstream areas of Riau Province. She also hopes that this program can increase the Regional Original Income (PAD) in Siak Regency.
"We carry out all production and distribution, both gas and fuel and also LPG, both for industry and the people of Riau. In terms of our duties in maintaining national energy security, Pertamina has also fulfilled the oil lifting, which was carried out by BOB PT BSP - Pertamina Hulu. Therefore, on August 25, Pertagas has conducted a trial of gas distribution for BOB power plants," she said.
Meanwhile, General Manager of BOB PT BSP Pertamina Hulu, Raihan, said this gas distribution has an impact on BOB Siak production cost savings. The savings can be up to USD 1 million per month or USD 12 million per year.
"Starting today, BOB PT BSP Pertamina Hulu is fully supplied by Pertagas as a new gas supplier. We hope that it will save up to USD 1 million per month in cost so that optimal oil production levels can be achieved from this CPP BLOCK," said Raihan.
Riau Governor, Syamsuar welcomed the initial gas distribution to the PT BSP - Pertamina Hulu BOB. He said that the presence of Pertagas in the supplying of gas to BOB in Siak was very beneficial for the efficiency of production costs.
"We hope that there will be no more obstacles related to oil and gas exploration in the Riau region. We also hope that it can increase oil and gas production in the oil and gas fields in Riau. Because the Riau Provincial Government and regional governments in Riau so far have also been dependent on oil and gas revenue sharing, which is the biggest income in the Riau Province," said Syamsuar.
He also hopes that the gas distribution process will have no obstacles and that it can improve performance in the CPP Block oil field. "On behalf of the Riau Provincial Government, we would like to congratulate BOB PT BSP-Pertamina Hulu and PT Pertamina Gas. We are ready to support its implementation, and hopefully, this activity will run smoothly and are not disrupted in which before it has been disrupted by electricity. However, with the assistance of Pertagas, we hope that there will be no significant obstacles for exploration and production activities," said Syamsuar.
For information, so far, BOB PT BSP - Pertamina Hulu gets gas supply from KKKS EMP Malacca Strait. However, the Gas Sale and Purchase Agreement with EMP Malacca Strait have ended on August 4, 2020. With the streaming of gas, it is hoped that there will be no more problems with electricity operations. Therefore, it can reduce operating costs in order to increase petroleum production at BOB PT BSP-Pertamina Hulu.**