INDONESIA JAVA SECTION DR. Ir. Djoko Siswanto
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INDONESIA www.spe.or.id JAVA SECTION April - August 2016 An Exclusive Interview with DR. Ir. Djoko Siswanto, MBA Director of Technical / Engineering, ESDM Advertisement Dear SPE Members; Contents 2 Advertisement & Contents SPE Java Section Newsletter is issued quarterly; they are printed 1,500 copies per issue, circulated 3 A Word from the Chairman among members, industry leaders, stakeholders (staff and manager), and students. 4 Membership In order to improve the content of our Newsletter, we urge you to send us an article worth sharing to 6 SPE Featured Column update and enrich our reader (at no cost to you), with application of certain technology, and/or CSR 8 Cover Story: Djoko Siswanto activity which made an impact on our industry. 16 Interview: Brod Sutcliffe We would also like to invite your Company to place an Advertorial, which serves as a showcase, 24 Technology Corner at the same time to cover the cost of printing the Newsletter accordingly to the following fee 26 Interview: Damien Dupont structure with effect July 2012: Printing Charges in USD 34 Interview: Zahra & Hendra Old Rate No. of Issue New Rate 385 1 400/issue 42 Interview: Debbie Chastity Full page 2 375/issue = 750 3 350/issue = 1,050 48 Interview: Andrew Law 4 325/issue = 1,300 5 300/issue = 1,500 53 Distinguished Lecturers 6 275/issue = 1,650 56 SPE Fish Fry - Hogfest 2016 Printing Charges in USD Old Rate No. of Issue New Rate 58 Student Chapters 220 1 250/issue 75 Board of Directors 2015-2016 Half-a-page 2 235/issue = 470 3 210/issue = 630 4 200/issue = 800 5 190/issue = 950 6 180/issue = 1,080 26 Note: 1. Full page size is 21x28cm with format of .pdf or .jpg and resolution of 300 dpi. 2. Article will be printed in Color only; paid article will also be displayed on our website, with the same duration. For all advertising enquiries, please contact: 34 34 William Ongseputra General Electric Email: [email protected] Mega Section Officer Email: [email protected] 42nd Floor Wisma Mulia 42 Jl. Gatot Subroto No. 42 Jakarta 12710 Telp: +6221 294282222 Ext. 253 48 www.spe.or.id 2 SPE Java . Apr - Aug ‘16 A Word from the Dear SPE Members and Readers, Indonesia’s crude oil production for 2016 is expected at around 819,000 barrels of oil per day (bopd), slightly lower than the target in the revised state budget of 820,000 bopd. Seasonal fall in production is still expected to hit us around Q3/Q4 every year. The target for next year is revised down to 740,000 to 760,000 bopd in anticipation of prolonged low oil price. It may not be the best time to boost production, when the crude oil price is still at much lower point than before. As many say, the value of hydrocarbon down there in the Earth layers is zero. Only when they are brought up and lifted, then the hydrocarbon has certain commercial values. The best commercial value is, therefore, achieved when the market price is at its best on the surface. However, the danger in Indonesia future oil and gas – situation. In this edition, we explore some of those key and energy in a broader sense – is greater than just the factors affecting the investment attractiveness including issue of when the oil price will be stabilized up again, or the tax and legal issues that the industry has been when we need to crank up the production next. All of feeling that the greater part of government (not only you, members and friends, that walked around the 2016 those related to Energy) is not at the same speed and IPA Exhibition and Convention, will not miss the fact that wavelength. It is also fair to note that our front men and our exploration activity was greatly reduced in the first women in the Ministry of Energy and Mineral Resources half of the year, to only 10 exploratory wells drilled to have proposed some breakthroughs and innovative date (in April 2016) to 52 exploratory wells in 2015, 83 ideas. It gave us a great pleasure to talk to these sources in 2014 and over 100 wells annually from 2011-2013. from both the government and the industry on this On average, it takes around 10-15 years to develop the important matter, and deliver it to you members and exploratory finding to the first production, assuming friends. a certain level of exploration success rate – and the figure is getting longer these days. The fact that we are We also share thoughts and experience in this edition combating the natural decline in production today, and from other technology players in Indonesia, in addition we are still loosing by the way, comes from another fact to our usual technology column. Technology is the that in the last 10-15 years we had not developed large cornerstone of our society, and the most important tool enough exploratory findings into production. Hence, we that will lead to a more efficient and cost-effective ways can estimate what will happen in the next 10-15 years of exploring and producing hydrocarbon in the future. when today our exploration is probably at the lowest The other corner of our industry is our high standard of point. Many of us may not be around in the industry safety. Our featured column poses this very intriguing any longer by then, but this is the time bomb that our question, whether actually we are committed to safety or students, sons and daughters, will face. Our legacy. only to the compliance to safety? What is the difference? Have a good read. In this edition we report the last There are many reasons for this situation, but generally snapshot and news on our SPE Java memberships, can be boxed into: geological perspective and fundraising events and student chapters activities. Our investment climate. Geologically, the jury is still out quarter is still full with interesting and fun things to do. whether Indonesia will produce new Cepu, Minas, Duri, Arun, etc, but the consensus is that we still have some promising but unexplored fields, both conventional Warmest Regards. Be safe. and non-conventional hydrocarbon. The second factor, investment climate, is arguably the easiest to control, but Hasbi Lubis in reality it may or may not be responsible for the current Chairman 2015-2016 SPE Java . Apr - Aug ‘16 3 News From SPE Java Membership Dear SPE Java Members, Please see on the next page the SPE Java Membership Database information. Our figures show Professionals Members at 607 and Student Members: 3,092. We are doing quite well on recruiting new members. Our biggest struggle is to retain existing members, as can be seen from the chart we have 460 lapsed (unpaid) members. Times are difficult and these days difficult to find the money to renew. As an incentive, please be advised that SPE has an option of e-MEMBERSHIP (only available for Country Category 2 which INDONESIA is. This is USD10 per year and includes everything the same, except only ONLINE JPT only). This is limited globally. Kindly consider this option when renewing your membership. Also, current lapse Members who want to renew (will get the rest of 2016 free) PROVIDED they have not done this last year OTHERWISE it will be from September onwards (to whole of 2017). We hope this info helps. Regards, Steven Broadmeadow Cessy Bellafania Membership – SPE Java Section 4 SPE Java . Apr - Aug ‘16 News from SPE Java Membership Java Indonesia Section Professionals Members: 607 Affiliate Members: 21 Student Members: 3,092 Professional Member Retention: 69.41% Professional Member Growth: -18.19% 87 Professional Members needed to reach 81% retention 135 Professional Members needed to reach 3% growth News from SPE Java Membership Java Indonesia Section Professionals Members: 607 Affiliate Members: 21 Student Members: 3,092 Professional Member Retention: 69.41% Professional Member Growth: -18.19% 87 Professional Members needed to reach 81% retention 135 Professional Members needed to reach 3% growth Membership by Employer (Only 12 Shown) Members Percent of Total Undisclosed 134 2222.08 08 % SKK Migas 38 6.26 % Schlumberger 23 3.79 % PT Medco E&P Indonesia 16 2.64 % Membership by Employer (Only 12 Shown) Members Percent of Total PT Pertamina EP 13 2.14 % Undisclosed 134 2222.08 08 % VICOSKK Indonesia Migas 38 6.2613 % 2.14 % Schlumberger PT Pertamina Hulu Energi ONWJ 23 3.7912 % 1.98 % PT Medco E&P Indonesia 16 2.64 % Bandung Inst. of Tech. PT Pertamina EP 13 2.1412 % 1.98 % ConocoPhillipsVICO Indonesia Indonesia Inc. 13 2.1412 % 1.98 % PT Pertamina Hulu Energi ONWJ PERTAMINA 12 1.989 % 1.48 % Bandung Inst. of Tech. 12 1.98 % Chevron Indonesia Co ConocoPhillips Indonesia Inc. 12 1.987 % 1.15 % EMPPERTAMINA Malacca Strait S.A. 9 1.487 % 1.15 % Chevron Indonesia Co 7 1.15 % EMP Malacca Strait S.A. 7 1.15 % Recent Graduates* Recent Graduates* Membership Status Count Membership Status Count CurrentCurrent 87 87 LapsedLapsed 229 229 *Recent Graduates are professional members who graduated within the last *Recentyear. Graduates are professional members who graduated within the last year. Total Student Chapters Current New Renewed Lapsed Members Bandung Institute of Technology 621 110 511 247 Gadjah Mada University 68 32 36 80 Institut Teknologi Sepuluh 101 6 95 37 Nopember (ITS) Padjadjaran University 184 138 46 7 Trisakti University 315 140 175 197 Universitas Diponegoro 130 38 92 96 Universitas Indonesia 443 291 152 63 UPN "Veteran" Yogyakarta 961 614 347 260 Total count may be less than total number of students if a student has not provided an expected *Students WithoutTotal a Student 269 208 61 36 Chapter graduation date.