Wednesday, December 18, 2013

1) Danny Kogoya, the one-legged military commander of the Free Papua Movement, dies in PNG

 1) Danny Kogoya, the one-legged military commander of the Free Papua Movement, dies in PNG
2) Eastern RI expected to  yield more gas, oil
3) Tangguh LNG set for $12b  expansion


1) Danny Kogoya, the one-legged military commander of the Free Papua Movement, dies in PNG

Free Papua Movement (OPM) military commander Danny Kogoya has died in Papua New Guinea, his family says.
Mr Kogoya was shot by Indonesian security forces during an arrest last year and later had his leg amputated while in custody.
He was released, but then threatened with re-arrest and had been hiding in north-west PNG.
A family spokesman says he died on Sunday and the cause is not yet known, and a family friend said his mother and sister have travelled to the town of Vanimo.
They want to bury his body at the same place his amputated leg is buried, within Indonesian-controlled Papua province.
The OPM is a group fighting for West Papuan independence from Indonesia.
In July Mr Kogoya spoke to the ABC after his leg had been amputated, where he vowed to return to the jungle to fight against Indonesian rule.
He told the ABC he was unarmed and surrendering when police shot him below the knee last year, and his leg was amputated without his permission while he was jailed on manslaughter charges.
"This leg was amputated for the Free Papua Movement. I am asking for independence... I am asking for West Papua to exit the Republic of Indonesia," he said.
Since the 1960s, the armed wing of the Free Papua Movement has conducted a low-level insurgency within Indonesia.
Allegations of atrocities committed by Indonesian forces within Papua and West Papua province are difficult to check because the international media is kept out.
It is also hard to get a real sense of the strength of the West Papuan militants.
Mr Kogoya told the ABC in July he commanded a standby army of 7,000 men, with around 200 active fighters, but those figures cannot be verified.
2) Eastern RI expected to  yield more gas, oil
Raras Cahyafitri, The Jakarta Post, Sorong, West Papua | Business | Wed, December 18 2013, 12:41 PM
Resource-rich areas in eastern Indonesia, particularly Maluku and Papua, are expected to produce more oil and gas and contribute to the national output next year despite some hurdles including hard terrain and lack of infrastructure.

Both Maluku and Papua are expected to record 2,323 million standard cubic feet per day (mmscfd) this year, or equal to 26.2 percent of the country’s national production.

Meanwhile, oil production is expected to reach 16,408 barrels of oil per day (bopd), or about 1.9 percent of national production.

“The volume of production must increase next year,” the Upstream Oil and Gas Regulatory Special Task Force’s (SKKMigas) chief for representative office for Papua and Maluku areas Enrico Ngantung said on Tuesday without providing details.

Currently, there are 46 contracts and joint operations in the area. The biggest contributors to oil and gas production in Papua and Maluku are Tangguh field operated by BP Indonesia, the Kepala Burung field by Petrochina International (Bermuda), joint operation body of Pertamina and Petrochina at Salawati field, Klamono of Pertamina EP Field Papua, Kalrez and Citic Seram.

“There are many explorations in the eastern part of the country. Some contractors have not been able to discover oil and gas sources. However, we are thankful that KKKS [the oil and gas cooperation contracts] Genting Oil was successfully found abundant gas reserves and Petrochina also found prospective hydrocarbon,” Enrico said.

The eastern part of the country is seen as a challenging area for oil and gas operations. Several giant companies, for example the US-based Exxon Mobil and Norway’s Statoil, decided earlier this year to return their blocks to the government after years of unprofitable exploration.

There are some successful players, such as the Abadi field in the Masela Block operated by Japan’s Inpex, which is estimated to have 18.47 trillion cubic feet of proved and probable gas reserves.

SKKMigas Jakarta office deputy for business support Sampe L Purba said several issues made oil and gas business in the area challenging. They include the topography of the areas, lack of geological information, poor infrastructure and the additional task of disbursing information to local communities about oil and gas exploration and exploitation.

“Special policies or incentives are necessary. Fiscal incentives can vary from more attractive profit sharing to tax cuts or easier permit issuance. Also, to support big investment, we also need stability and law enforcement,” he said.

Stefanus Malak, the regent of Sorong, one of the significant oil and gas producing areas in West Papua, said that his administration has been trying to accelerate permit issuances for investors interested in putting money into his regency.

The central government is also encouraging a faster process for issuing permits to lure investors.

“One week is the longest period for issuing permits at this point,” he said.

Sorong is currently one of the oil and gas producing areas in West Papua, along with Raja Ampat and Teluk Bintuni.

Sorong regency currently hosts six producing contracts, which are owned by JOB Pertamina and Petrochina on Salawati, Petrochina International Bermuda, Pertamina Area Papua, Pertamina EP TAC IBN Holdico, Pertamina EP TAC Intermega Sabaku and Pertamina TAC Intermega Salawati.

The regency is estimating to see oil production of 3.1 million barrels and gas production of 4,158 million British thermal units (mmbtu) this year.
3) Tangguh LNG set for $12b  expansion
Raras Cahyafitri, The Jakarta Post, Sorong, West Papua | Business | Wed, December 18 2013, 12:22 PM
Tangguh LNG, an integrated liquefied natural gas (LNG) operation in the country, is expecting to kick off a US$12 billion expansion project pending the results of a tender to be announced early next year.

Tantri Yuliandini, a senior communication officer with BP Indonesia, which operates the Tangguh block in West Papua, said the company was in the process of evaluating the tender that closed September.

“We are expecting to announce the results in the first quarter of 2014,” Tantri said Tuesday.

The expansion project involves a plan to boost Tangguh LNG’s capacity by 3.8 million tons per year.

Tangguh’s capacity is currently 7.6 million tons and is expected to reach 11.4 when the expansion project is completed in 2019.

Tantri said the Tangguh expansion would have its final investment approved next year. The expansion was approved by the government in November 2012.

BP currently operates Tangguh LNG in Papua. The company holds 37.16 percent stake in the gas field project, along with MI Berau BV with 16.3 percent; CNOOC Muturi Ltd. with 13.9 percent; Nippon Oil Exploration (Berau) Ltd. with 12.23 percent; KG Berau/KG Wiriagar with 10 percent; Indonesia Natural Gas Resources Muturi Inc. with 7.35 percent; and Talisman Wiriagar Overseas Ltd. with 3.06 percent.

With the expansion project, Tangguh will have a new LNG facility called Train 3, which will complement Train 1 and Train 2.

It is estimated that the expansion project will require $12 billion in investment.

Once the expansion is completed and operational, Tantri said, Tangguh will be committed to the distribution of 40 percent of the LNG produced by Train 3 to the domestic market.

Moreover, the company also plans to supply up to 15 million cubic feet per day (mmscfd) of gas to a power plant operated by state-owned electricity company PT PLN when the Train 3 project is finished.

Tangguh signed a supply and offtake agreement (SOA) Thursday to supply state electricity company PLN with 4 megawatts (MW) of electricity to be sold and distributed to the residential communities of Teluk Bintuni regency in West Papua.

The SOA was signed following a memorandum of understanding (MoU) that was inked in May 2012.

Under the agreement, electricity supply for the areas surrounding the Tangguh LNG plant in Teluk Bintuni will last 20 years.

BP regional president Asia Pacific William Lin said that a study to increase the supply by another 4 megawatt is under way.

Since becoming operational in 2009, Tangguh has delivered 407 cargoes of LNG to date.

Tangguh has delivered 109 cargoes from earlier this year up to Dec. 15, already higher than the number of deliveries in 2012, which was 103 cargoes.

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