Training and development have become ever more important as companies are facing significant skills gaps during this rapidly changing environment.
How do you know if your training meets the skills gaps and generates the desired impacts that will make your company successful?
Here are the five levels of evaluation that give you information on the results and effectiveness of your training programs.
Level 1 Evaluation
At level one, the results of training are assessed based on participants’ reactions to the training and the action plan submitted by the participants. This is commonly done immediately after the training.
Level 2 Evaluation
At level two, the impacts of training are assessed on how much learning is acquired by participants. This is done by conducting some forms of testing.
Level 3 Evaluation
At level three, the training evaluator will find out if the acquired skills, knowledge, or attitude (SKA) are applied and implemented by the trainees. This is usually done several weeks or months after training.
Level 4 Evaluation
At level four, evaluators assess the impact, both tangible and intangible, of the training several weeks or months after the training. Examples of tangible impacts are cost savings, higher productivity, better product quality, sale increase, etc. Examples of intangible benefits are attitude improvement, better communication, etc.
Level 5 Evaluation
At level 5, training evaluators measure the return on investment (ROI) of training to determine the profitability of the training that companies conduct.
ROI is a performance measure that management and stakeholders commonly use to evaluate the profitability of a project or an investment. Management is interested in ROI as it compares the actual monetary benefits of the training relative to the total costs of the training.
STEPS TO MEASURE THE ROI
Here are the steps to measure the ROI of a training program.
Design the training based on business needs.
Plan the training to be evaluated at all levels.
Design the training such the skills, knowledge, or attitude taught can be applied and implemented on the job.
Collect Level 1 data – reactions and action plans of trainees- at the end of training.
Collect Level 2 data – learning – at the end of training.
Collect Level 3 data – application and implementation – several weeks or months after training.
Collect Level 4 data – Both the tangible business impacts and the intangible impacts – several weeks or months after training.
Isolate the effect of the program by identifying other factors that may impact the outcomes of the program. This is a critical aspect in producing credible ROI results.
Convert Level 4 data into monetary values of the training benefits.
Annualize the monetary values to determine the monetary benefit of the training over 12 months.
Collect data on the total costs of training.
Calculate the ROI using this formula. ROI = (Benefits – Costs)/Costs x 100%
THE BENEFITS OF MEASURING ROI
As the need for skill-building is increasing and the training budget is getting bigger, it is important to know whether you are getting positive values from your investment in training.
When you have the ROI data to prove to management the value of your training, you will get more supports for the training programs you plan conduct in the future.
Dr. Jack J. Phillips is the pioneer in measuring the ROI in training. Over the past 20 years, Dr. Jack Phillips and Dr. Patti Phillips have trained and certified thousands of training professionals on the ROI Methodology. More than two-thirds of the Fortune 500 companies are applying this methodology in the training they conduct.
How about your organization? Does your management ask you to measure the ROI or financial benefits of your training programs? Have you done this before? Do you have the competency and confidence to do it?
Indonesia currently has six oil refineries and they are all operated by Pertamina, the national oil company of Indonesia.
Here are the top five refineries in Indonesia:
Dumai Refinery, officially known as Unit Pengolahan II Dumai
Plaju Refinery, officially known as Unit Pengolahan III Plaju
Cilacap Refinery, officially known as Unit Pengolahan IV Cilacap
Balikpapan Refinery, officially known as Unit Pengolahan V Balikpapan
Balongan Refinery, officially known as Unit Pengolahan VI Balongan
Besides these five refineries, Pertamina operates a small 10,000 BOPD Kasim refinery in Sorong, West Papua.
With a total capacity to process 1,046,700 barrels of crude oil per day, all refineries in Indonesia are currently supplying about 50% of the domestic fuel needs.
In 2019, Indonesia imported 24.7 billion liters of fuel.
To meet its domestic fuel needs, Indonesia intends to produce all the fuels it needs by 2026. It hopes to increase the crude processing capacity to two million barrels per day in 2025 under the ambitious 17 billion dollar Refinery Development Master Plan (RDMP).
Based on the RDMP, the top five refineries will be upgraded to increase their capabilities and capacity. Currently, Pertamina is expanding and upgrading the Cilacap and Balikpapan refineries.
Pertamina also has a plan to build two new refineries: one in Tuban in East Java and one in Bontang in East Kalimantan.
The project to construct the 300,000 barrels of crude oil per day Tuban refinery is currently underway. It is expected to complete in 2026.
Here are the details of the top five refineries.
Dumai refinery started operating in 1971 and it is located in Dumai in Sumatera.
The Dumai refinery is designed with a capacity to process 170,000 barrels of crude oil and it supplies Sumatera with fuels such as gasoline, aviation fuel, diesel fuel, kerosene, solvent, green coke, and LPG.
This refinery is unique as it produces the power it needs using the natural gas produced from the surrounding gas fields namely the Grissik field operated by ConocoPhillips, the fields in the Bentu block operated by Mega Energi Persada (PT EMP), and the Jambi Merang gas fields operated by Pertamina Hulu Energi Jambi Merang (PHE Jambi Merang).
By using the natural gas produced from these fields, the Dumai refinery can reduce its fuel cost by 40%.
The Plaju refinery and petrochemical complex comprises two old refineries located in the Palembang area in South Sumatera: one in Plaju and another one in Sungei Gerong.
The refinery in Plaju is the oldest existing refinery in Indonesia. It was built in 1904 by BPM (Batavia Petroleum Maatschappy), a predecessor of Shell. Pertamina acquired this refinery from BPM in 1949.
The refinery at Sungei Gerong was built by SVPM (Standard Vacuum Petroleum Maatschappij) 1926. Pertamina acquired this refinery from Stanvac in 1970.
Pertamina integrated these two refineries in 1972 by constructing connecting pipelines and officially called them Unit Pengolahan III Plaju.
The integrated Plaju refinery and petrochemical complex has a combined refining capacity of 118,000 barrels per day. It processes crude oil and intermediate products to produce gasoline, kerosene, diesel fuel, the B20 biodiesel fuel, aviation fuel, and fuel oil.
The types of gasoline it produces include the Premium, Pertalite, Pertamax, and Pertamax Racing.
The Plaju refinery also produces petrochemicals such as Polypropylene and PTA.
According to Pertamina, the Plaju refinery and petrochemical complex will see a new stand-alone 20,000 barrels per day “Green Refinery” in 2024 taking advantage of the locally produced crude palm oil (CPO). The new unit will produce green diesel fuel, green aviation fuel, green naphtha and green LPG.
The Cilacap refinery is the largest and most integrated refinery and petrochemical complex in Indonesia. With its current refining capacity of 348,000 barrels of crude oil per day, it produces 34% of the total fuel production in Indonesia.
The Cilacap refinery was initially completed in 1976 with a capacity of processing 100,000 barrels of crude oil per day. However, as a strategic refinery due to its location being in Central Java, it has been revamped and expanded several times.
Today, this Pertamina Unit IV refinery and petrochemical complex consists of three units:
Oil Refining Unit #1
Oil Refining Unit #2
Oil Refining Unit #1 was completed in 1976 with a capacity of processing 100,000 barrels of oil per day and it was designed to specifically handle crude oil from the Middle East.
This refining unit produces gasoline, lube oil, and asphalt. It underwent debottlenecking in 1998 to increase its refining capacity to 118,000 BOPD.
To meet the increasing demand for fuel, Oil Refining Unit #2 was completed in 1983 with a capacity of 200,000 BOPD. Its capacity was later increased to 230,000 BOPD in 1998.
This second unit is designed to handle both crude oil from the Middle East and Indonesia.
The Paraxylene Unit, completed in 1990, produces petrochemicals such as paraxylene, benzene, raffinate, and heavy aromatic. Some of these products are shipped to the Plaju refinery for further processing.
The famous Balikpapan refinery was completed in 1922 by BPM (Bataafsche Petroleum Maatschappij), the predecessor of Royal Dutch Shell. It was built to process the crude oil that BPM had discovered in Balikpapan in East Kalimantan.
The refinery was heavily damaged twice during World War II and subsequently restored. It was later acquired by Pertamina from BPM in 1949.
The refinery has been expanded and upgraded several times to meet the increasing demand for fuel in the eastern part of Indonesia.
The Balikpapan refinery is the second-largest refinery in Indonesia. At its current crude oil processing capacity of 260,000 barrels, it processes 25% of the total crude oil intake and supplies about 15% of the fuel needs in Indonesia.
Under the RMDP refinery expansion plan, it is set to become even bigger. It is currently undergoing a massive 5 billion dollar expansion which will increase its processing capacity from 260,000 barrels per day to 360,000 barrels per day.
Besides increasing its processing capacity, the expansion project is also aimed to improve its crude flexibility and product quality. The refinery will have the capability to produce high-quality Euro V standard fuels.
The Balikpapan refinery expansion includes:
A residual fluid catalytic cracker (RFCC) unit with a design capacity of 90,000 barrels per stream per day (BPSD)
An LPG sulfur removal unit,
A propylene recovery unit
An 80,000 BPSD middle distillate hydrotreater.
The project will also upgrade the existing vacuum distillation unit (VDU), crude distillation unit (CDU), hydrocracker unit (HCU), and LPG recovery units to increase the production of Euro V gasoline, diesel fuel, and LPG by 100,000 BPD, 30,000 BPD and 930 tons respectively per day.
Included in the project is the expansion of the crude oil receiving capacity by adding:
A single-point mooring system and a pipeline end manifold, capable of handling crude carriers with 320,000 deadweight tonnage (DWT).
A 20-inch onshore pipeline from Lawe-Lawe terminal to Panajam terminal.
A 52-inch subsea pipeline from the Panajam terminal to the refinery.
Two new crude oil storage tanks with a capacity of 100 million barrels.
Located in Indramayu, West Java, the Balongan refinery was completed in 1994. It was revamped in 2003 to increase its processing capacity to 130,000 barrels of crude oil per day.
The Balongan refinery and petrochemical complex is designed to process crude oil from the Duri and Minas fields.
It produces a variety of fuels such as Premium, Pertamax, Pertamax Plus, diesel fuel, kerosene, and LPG. It also produces petrochemicals such as propylene.
This Unit VI refinery of Pertamina is a strategic and vital refinery to Indonesia as it supplies the fuel needs of the nation’s capital city of Jakarta and West Java.
The Balongan refinery prides itself for being the refinery that applies eco-friendly technology and that processes residue into high-quality products.
The refinery experienced a fire incident on 29th March 2021. Four of its storage tanks caught fire.
The 10,000 BPD Kasim refinery is the newest but the smallest refinery of Pertamina.
Located in Sorong in West Papua, Kasim refinery was completed in 1997 to meet the needs for fuels in the most eastern part of Indonesia. It takes advantage of processing the crude oil produced from the nearby fields of Walio and Salawati.
This Pertamina Unit VII refinery is currently operating below its design capacity of 10,000 BOPD. This is due to the declining oil production from the two oil fields.
To make the plant economical to operate, Pertamina will need to increase the crude supply by bringing in crude oil via oil tankers. To do so, it will need to construct four 110,000 barrel storage tanks.
Currently, the Kasim refinery is supplying less than 15% of the fuel needed in Papua and Maluku. It is hoped that Kasim can process 50,000 BOPD in the future.
This article is adapted by Jamin Djuang from information published by Pertamina and other sources. He is the Chief Training Officer of LDI Training.
PT Pertamina (Persero) is the national oil company of Indonesia, and also the largest company in Indonesia. It is the parent holding company of all the many Pertamina subsidiary companies.
As an integrated oil company, Pertamina involves in oil and gas exploration and production, refining and petrochemicals, gas distribution through pipelines, distribution of fuels and lube oil to every corner of the land.
On the upstream side, Pertamina owns many oil fields and work areas and has vast and expansive oil exploration and production operations in Indonesia. It also has oil and gas interests in several other countries.
Pertamina’s upstream oil and gas interests are under the wings of PT Pertamina Hulu Energi (PHE). It is the sub-holding company of PT Pertamina (Persero) in charge of its entire upstream oil and gas assets and operations.
The assets include oil and gas assets that Pertamina itself develops, assets it acquired from BPM (Bataafse Petroleum Maatschappij), assets it acquired from international companies upon the expiry of their production sharing contracts, and its exploration work areas.
As Pertamina’s oil fields are located in many islands of Indonesia covering a vast area of more than 113,000 Km2, its assets and operations are divided into five regions. Each region is further divided into zones.
Here are the five regions including the zones under each region and their leadership teams.
REGION 1- Sumatera
Pertamina’s assets in Sumatera fall under Region 1 and they are managed under PT Pertamina Hulu Rokan (PHR).
Consisting of four zones, Pertamina Hulu Rokan manages the following assets:
In Zone 1 – North Sumatera Offshore (NSO), North Sumatera Basin (NSB), Rantau, Pangkalan Susu, West Glagah Kambuna, Siak, Kampar, Lirik, Jambi, Jambi Merang, Jabung
In Zone 2 – North Rokan (Rokan Utara)
In Zone 3 – South Rokan (Rokan Selatan)
In Zone 4 – Ogan Komering, Raja Tempirai, Ramba, Corridor, Prabumulih, Limau, Pendopo, Adera
Here is the current leadership team stewarding Pertamina’s exploration and production activities in Region 1.
Novy Hendri – VP Exploration
Tri Sasongko – VP Development and Drilling
Junizar Harman – VP Operation and Production
Saptiadi Nugroho – VP Business Support
Ani Surakhman – General Manager of Zone 1
Ahmad Miftah – General Manager of Zone 4
REGION 2 – Java and Natuna
Region 2 covers Pertamina upstream activities in West Java and the Natuna Sea, and they are managed under PT Pertamina Eksplorasi dan Produksi (PEP).
Here are the zones in Region 2 and the assets under each zone.
Zone 5 – Offshore North West Java (PHE ONWJ), Abar, Anggursi
Zone 6 – Offshore South East Sumatera (PHE OSES)
Zone 7 – Tambun, Subang, Jatibarang, East Natuna, The Natuna Sea Block A
Here is the new leadership team of Region 2.
Muharram Jaya – VP Exploration
Merry Luciawaty – VP Development and Drilling
Wisnu Hindadari – VP Operation and Productions
Bongbongan Tampubolon – VP Business Support
Achmad Agus Miftakhurrohman – General Manager of Zone 5
Cosmas Supriatna – General Manager of Zone 6
Astri Pujianto – General Manager of Zone 7
REGION 3 – Kalimantan
Region 3 assets and operations are located in Kalimantan, and PT Pertamina Hulu Indonesia (PHI) is the operation holding company of Pertamina in Region 3.
Here are the zones in Region 3 and the assets in each zone:
Zone 8 – Pertamina Hulu Mahakam (PHM), Pertamina West Ganal (PHWG), East Sepinggan
Zone 9 – Pertamina Hulu Sanga Sanga (PHSS), Sangata, Maratua, Tanjung
Zone 10 – Pertamina Hulu Kalimantan Timur (PHKT), Bunyu, Tarakan, Nunukan, East Ambalat, Simenggaris, Ambalat, Bukat
Here is the leadership team supervising Pertamina’s exploration and production activities in Region 3.
Bayu Giriansyah – VP Exploration
Arief Prasetyo Handoyo – VP Development and Drilling
Rachmad Wibowo – VP Production
Satya Nugraha – VP Business Support
Agus Amperianto – General Manager of Zone 8
Andri Haribowo – General manager of Zone 9
Raam Krisna – General Manager of Zone 10
REGION 4 – East Java and Eastern Part of Indonesia
Pertamina’s oil and assets located in the eastern part of Indonesia and East Java are under Region 4.
PT Pertamina Eksplorasi dan Produksi Cepu (PEPC) is the operation holding company in charge of Region 4.
Here are the zones in Region 4 and their assets:
Zone 11 – Alas Dara Kemuning (PEPC ADK), Cepu, West Madura Offshore (PHE WMO), Randugunting, Sukowati, Poleng, Tuban East Java
Zone 12 – Jambaran Tiung Biru (JTB), Banyu Urip
Zone 13 – Donggi Matindok, Senoro Tolidi, Makassar Strait
Zone 14 – Papua, Salawati, Kepala Burung, Babar Selaru, Semai
Here is the current leadership team of Region 4.
Ali Sundja – VP Development and Drilling
Muhamad Arifin – VP Operation and Production
Fransiono Lazarus – VP Business Support
Dedy Syam – General Manager of Zone 11
Iman Nur Akbar – General Manager of Zone 13
Djudjuwanto General Manager of Zona 14
REGION 5 – International
Pertamina also has oil and gas interests in several countries outside Indonesia. Its international E&P operations and assets fall under Region 5 and they are under the management of PT Pertamina International Eksplorasi dan Produksi (PIEP).
Here are the zones of Region 5 and their locations:
Zone 15 – Algeria
Zone 16 – Iraq
Zone 17 – Malaysia
Here is the current leadership team supervising Pertamina’s international exploration and production activities.
Fuji Koesumadewi – VP Exploration
Yosi Hiroshiadi – VP Development and Drilling
Charles P. Sialagan – VP Operation and Production
Ria Noveria – VP Business Support
Edwil Suzandi – Country Manager in Algeria
This article is adapted by Jamin Djuang – Chief Learning Officer of LDI Training – from information published by Pertamina and various other sources.
This has been a very surprising and great week for the oil industry.
The OPEC+ members – Organization of the Petroleum Exporting Countries and their Russia-led allies – held their meeting this week and decided not to increase oil production in April. As a result, oil prices and share prices of all major oil companies soared this week ending on 5 March 2021.
The price of Brent crude oil surged to $69.36 per barrel while the WTI crude oil closed higher also at $66.28 this week.
STOCK PRICES OF MAJOR OIL COMPANIES
All oil major companies saw huge gains in their stock prices this week.
Here are their closing prices and the weekly changes.
CHEVRON – $109.00 up 9%
EXXONMOBIL – $60.93 up 12.1%
CONOCOPHILLIPS – $58.34 up 12.2%
BP – $26.77 up 9.7%
ROYAL DUTCH SHELL – 18.13 EUR up 7.3%
TOTAL – 40.97 EUR up 6.7%
ENI – 10.06 EUR up 6.1%
The weekly US rig count increased to 403. The oil companies in the US added one rig last week, according to Baker Hughes Rig Counts.
The total global rig count continues its monthly gain. It increased by 87 rigs in the month of February 2021 to 1270. The total global rig count in January was 1183.
This weekly report is adapted by LDI Training from various sources of information.
The upstream oil and gas industry of Indonesia invested 10.21 billion US dollars and performed well in 2020 according to SKK Migas, the special task force in charge of upstream oil and gas activities of oil companies in Indonesia.
The oil and gas industry of Indonesia successfully met and even exceeded some of the 2020 targets that were set by the Indonesian government in the following key areas:
Reserve Replacement ratio (RRR).
Controlling the cost recovery
Revenue intake by the government
Completion of oil and gas projects
RESERVE REPLACEMENT RATIO
The reserve replacement ratio in 2020 is 101.6%. The oil industry added 705 MMBOE of reserve in 2020.
OIL AND GAS PRODUCTION
The average daily oil lifting in 2020 is 706,000 BOPD. This exceeded the government target of 705,000 BOPD.
However, daily gas production in 2020 is 5461 MMSCFD. This is below the government target of 5556 MMSCFD.
The amount of cost recovery in 2020 is US$ 8.12 billion which is in line with the government expectations.
OIL REVENUE TO GOVERNMENT
The oil industry contributed US$ 8.4 billion of revenues to the Indonesian government. This amount is 41% higher than the expected amount of US$5.86 billion.
COMPLETION OF EXPLORATION AND PRODUCTION PROJECTS
Fifteen oil and gas projects went on stream in 2020. These new projects added 9182 barrels of oil per day and 111 million SCF of gas per day.
3199 Km of 2D seismic and 1251 Km2 of 3D seismic surveys were completed in 2020.
SKK Migas was active and running in 2020 to keep the oil and gas exploration and production activities at a high level. Here are some of the key actions that SKK Migas undertook in 2020:
SKK Migas signed twenty-four PSC side letters and sixty-one letters of agreement (LoA).
The government reduced the prices of gas sold to domestic companies to stimulate economic growth.
Allowing oil and gas operators to delay topping up the Abandonment and Site Restoration fund.
Eliminating the costs to oil operators of using government assets in their exploration and production activities.
Allowing oil companies to accelerate asset appreciation.
SKK Migas and Chevron Pacific Indonesia signed the Heads of Agreement to ensure the continuity of a high level of activities such as well drilling and production optimization in the Rokan Block during the final phase of the PSC contract. Chevron will hand over the operatorship of The Rokan block to Pertamina when its production sharing contract expires in August 2021.
SKK Migas approved the Plan of Development (POD) submitted by Repsol for the development of the huge Kaliberau gas field having 445 billion SCF of gas reserve in the Sakakemang block. The total investment in this project is estimated at 359 million US dollars.
PERFORMANCE OF THE OIL AND GAS OPERATORS IN 2020
Here are the top nine oil and gas operators who exceeded their oil production targets in 2020.
Chevron Pacific Indonesia
Pertamina Hulu Mahakam
Pertamina Hulu Energi ONWJ
Pertamina Hulu Energi OSES
Petrochina International Jabung
Medco E & P Natuna
Pertamina Hulu Sanga Sanga
Medco E&P Rimau
JOB Pertamina – Medco Tomori Sulawesi
Here are the top nine oil and gas operators who exceeded their gas production targets in 2020.
Pertamina Hulu Mahakam
Eni Muara Bakau BV
JOB Pertamina – Medco Tomori Sulawesi
Premier Oil Indonesia
Petrochina International Jabung
Medco E & P Natuna
Kangean Energi Indonesia
Pearl Oil (Sebuku)
EXPLORATION AND PRODUCTION TARGETS FOR 2021
Being optimistic that Indonesia will meet the target of 1 million BOPD and 12 BSCFD of gas by 2030, SKK Migas is committed to keeping oil and gas production high in 2021. Here are its ambitious targets for oil and gas activities in 2021:
Daily oil production – 705,000 BOPD. This is the same target as in 2020.
The number of exploration wells – 43. This is a significant increase from 28, the actual number of exploration wells drilled in 2020.
The number of development wells – 616. This target is much higher compared with the 240 development wells drilled in 2020.
Number of workovers – 615
Number of well services – 26,431
2-D seismic survey – 3569 Km
3-D seismic survey – 1549 Km2
The Indonesian oil industry performed well in 2020. Mr. Dwi Soetjipto, the head of SKK Migas said: “The year 2020 was a difficult year for many oil operators due to the Covid 19 pandemic and the low oil prices. Nevertheless, the oil industry of Indonesia was able to meet several targets set by the government. Hopefully, this will help the country’s economy.”
This blog article is adapted from “Kinerja Hulu Migas Gemilang Sepanjang 2020” published by SKK Migas on 4 January 2021.
This article is adapted from SKK Migas news by Jamin Djuang – Chief Learning Officer of LDI Training.
Indonesia is the second-largest geothermal energy producer in the world after the USA.
Located right on the long stretch of the ring of fire, Indonesian islands are endowed with rich geothermal resources. The total potential geothermal resources of Indonesia are estimated at 28,000 MW.
Although the geothermal potential is huge, its utilization rate is under 8%. Currently, the total installed power generating capacity from the active 16 geothermal power plants in Indonesia is 2133 MW.
Here are the top ten largest geothermal plants in Indonesia in 2020.
The Kamojang Geothermal Plant
Operating since 1982, the 235 MW Kamojang plant is the first geothermal power plant in Indonesia. Located in the Garut area in West Java, it has been operating for 38 years.
The Dutch spotted the Kamojang geothermal potential more than one hundred years ago and drilled several wells in the area. In 1926 it successfully drilled the first steam producing well in Kamojang, also the first in Indonesia.
Later in I971, Pertamina Geothermal Energi (PGE) with cooperation from New Zealand began to develop the field followed by the construction of the Kamojang power plant, the first geothermal power plant in Indonesia.
The plant is operated by Pertamina Geothermal Energi.
The Salak Geothermal Power Plant
Producing 377 MW of power, the Salak plant is the largest geothermal power plant in Indonesia and is also one of the largest in the world.
Located at Gunung Salak in West Java, the Salak plant has been operating since 1994.
The Salak geothermal resources were initially explored and developed by Unocal. In 2005, the Salak geothermal assets were taken over by Chevron who eventually sold it to Star Energy in 2017.
The Darajat Geothermal Plant
The 270 MW Darajat geothermal plant, located at Garut in West Java, started its commercial operation in 1994 and is one of the oldest geothermal power plants in Indonesia.
The Darajat geothermal assets were initially explored and developed by Amoseas. The assets were later taken over by Chevron who eventually sold it to a consortium led by Star Energi in 2017.
The Darajat resource has two special characteristics. First, it is one of only a few dry steam fields in the world.
Secondly, the Darajat wells are highly productive. While the worldwide average capacity of a geothermal well is 5 to 10 MW, a Darajat well can produce 40 MW of power.
The Sarulla Geothermal Plant
The Sarulla geothermal power plant, with 330 MW capacity, is the second-largest geothermal plant in Indonesia and is also one of the largest geothermal plants in the world.
The Sarulla geothermal resources, located in North Sumatera, were initially discovered by Unocal. Unocal conducted extensive exploration in the Sarulla geothermal working area from 1993 to 1998. It drilled a total of 13 deep wells and proved the existence of 330 MW of commercial geothermal reserves for 30 years.
However, due to the Asian financial crisis in 1997, the Unocal proposed power plant was not constructed until after the project was taken over by Sarulla Operation Limited (SOL).
Sarulla Operation Limited completed the power plant in 2016. The company is a consortium consisting of Medco Power Indonesia, INPEX, Ormat International, Itochu Corporation, and Kyushu Electric Power.
The Muara Laboh Geothermal Plant
Completed in 2019, the 85 MW Muara Laboh geothermal plant is the newest plant among the ten largest geothermal power plants in Indonesia.
The Muara Laboh geothermal plant is located in West Sumatera and is operated by Supreme Energy Muara Laboh (SEML).
It took the company 12 years to complete the geothermal project at 587 million US dollars.
The operator of the project, PT Supreme Energy Muara Laboh (SEML), is a consortium consisting of PT Supreme Energy, ENGIE, and Sumitomo Corporation.
Having proven reserves of 200MW, the company is in negotiation with PLN, the national power company, to build a second power generation unit.
The Ulubelu Geothermal Plant
Operating since 2012 and located at Lampung in Sumatera, the 220 MW Ulubelu geothermal power plant is operated by Pertamina Geothermal Energi.
The combined 220 MW power comes from the four 55 MW power generation units.
The Lahendong Geothermal Plant
The 120 MW Lahendong geothermal plant is located in Tomohon in North Sulawesi. The Lahendong plant started to operate commercially in 2001 and Pertamina Geothermal Energi (PGE) is the operator.
Its combined 120 MW power is generated from the five 20 MW power generation units.
The Wayang Windu Geothermal Plant
Located in the Bandung area in West Java, the 227 MW Wayang Windu geothermal plant began its commercial operation in 1999.
Star Energy operates the Wayang Windu geothermal assets under a joint cooperation contract with Pertamina Geothermal Energi.
The Dieng Geothermal Plant
The 60 MW Dieng geothermal power plant started to operate in 1998. The Dieng plant is located in the Dieng area in Central Java and is operated by Geo Dipa Energi.
Geo Dipa Energi is currently working on the following projects in the Dieng work area:
Adding a small 10 MW power plant.
Developing a 55 MW Dieng-2 power plant (PLTP Dieng Unit 2)
Developing a 55 MW Dieng-3 power plant (PLTP Dieng Unit 3)
The Patuha Geothermal Plant
The 55 MW Patuha geothermal plant located at the Ciwidey area in West Java has been in operation since 2014.
Geo Dipa Energi as the operator is committed to drill 12 new wells beginning in 2021 and construct a second 55 MW power plant. Its long-term plan is to increase the Patuha power generation capacity to 400 MW.
Other Geothermal Plants in Indonesia
Sixteen geothermal power plants are operating in Indonesia currently. Besides the above top ten largest plants, here are two other geothermal plants that are worth mentioning.
The Lumut Balai Geothermal Plant
The 55 MW Lumut Balai geothermal plant, located at Muara Enim in South Sumatera, started to operate commercially in 2019.
Pertamina Geothermal Energi operates the Lumut Balai assets and the company is planning to build a second power generation unit.
The Sorik Marapi Geothermal Plant
The 45 MW Sorik Marapi geothermal power plant, located in Mandailing Natal in North Sumatera, came online in 2019.
PT Sorik Marapi Geothermal Power operates the Sorik Marapi assets and the company is currently constructing its second 45 MW power plant. This second unit is expected to operate in 2021.
Geothermal is Rising in Indonesia
The list of the top largest power plants in Indonesia will likely change in 2021 as several new power plants will be completed in near future. In 2021 we expect the 86 MW Rantau Dadap geothermal plant to begin to operate.
The Indonesian government is very keen to develop its vast geothermal resources to increase the contribution of renewable energy in its energy mix. Its targets are to increase the geothermal power generation capacity to 7500 MW by 2025 and 9300 MW by 2035.
To meet these targets, the government will provide funds to help companies in their exploration drillings, provide tax holidays, and remove certain taxes.
With a total of 265 potential sites for geothermal plants located across the country, the utilization of the geothermal resources should continue to increase long into the future in Indonesia.
Written by Jamin Djuang – Chief Learning Officer of LDI Training and author of The Story of Oil and Gas: How Oil and Gas Are Explored, Drilled, and Produced
This year, Medco Energi is celebrating its forty years of continuing successes and presence as one of the leading energy companies in Indonesia and South East Asia.
Medco Energi International became a public company in 1994, and today it operates in eight countries.
It has interests in oil and gas exploration and production, geothermal power generation, gas distribution and trading, and mining.
The Beginning of Medco
Medco Energi has come a long way in a short time since it started as an oil drilling service company in 1980, Meta Epsi Pribumi Drilling Company (MEDCO).
Founded by Mr. Arifin Panigoro, Medco Energi is a trailblazer ever since its beginning.
The Acquisition of Stanvac Indonesia
The first breaks that made Medco became big and successful were the acquisition of Stanvac’s oil and gas assets in South Sumatera in 1995, and the following discovery of the big oil fields in Kaji and Semoga in the Rimau Block, in South Sumatera.
Stanvac Indonesia, set up by Standard Oil of New Jersey in 1912, was one of the oldest and biggest oil companies in Indonesia during the Dutch colonial era.
The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B PSC
The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B
Medco Energi further expanded in 2016 when it purchased ConocoPhillips’s 40% interest in the West Natuna Sea Block B and took over the operatorship of the block.
This acquisition added substantial gas and liquids reserves and increased Medco Energi’s daily production by over 35%.
The block is in approximately 300 feet of water and had 11 offshore platforms, four producing subsea fields, and one FPSO – the Belanak FPSO – in addition to two dedicated floating storage and offloading vessels.
The Belanak FPSO was described as one of the most complex FPSO in the world. It was the first offshore liquefied petroleum gas (LPG) facility on a floating vessel in the Asia Pacific region when it was commissioned in 2004.
The fields include the Belanak field, South Belut field, Hiu field, Kerisi field, North Belut field and Bawal field.
The produced natural gas is sold to Singapore and Malaysia through a 654 KM long 28 inch gas pipeline.
Medco Energi also assumed the operatorship of the Onshore Receiving Facility in Singapore following the acquisition.
Acquisition of Ophir Energy
Medco Energi Internasional continued to expand by acquiring Ophir Energy, a London-based independent in 2019.
The acquisition of Ophir Energy increased Medco Energi’s daily oil and gas production by 29% to 110,000 BOE per day.
By taking over the operatorship of Ophir Energy’s offshore Bualuang field in Thailand, Medco Energi became a leading regional oil and gas player in South East Asia.
Besides acquiring producing assets, Medco Energi is also active in exploring for new oil and gas reserves.
Its 2020 exploration drilling campaign in the South Natuna Sea Block B is 100% successful. It tested hydrocarbon in all the four exploration wells it drilled. The wells are Bronang-2, Kaci-2, Terubuk-5, and West Belut-1.
Medco Energi is planning to develop these fields.
As Medco Energi celebrates its 40 years of progress, with its solid management team, it certainly will continue to march toward an even brighter future.
Here is the top management team of Medco Energi.
Muhammad Lutfi – President Commissioner
Hilmi Panigoro – President Director
Roberto Lorato – Chief Executive Officer
Anthony R Mathias – Chief Financial Officer
Ronald Gunawan – Chief Operating Officer
Amri Siahaan – Chief Human Capital and Business Support Officer
Myrta Sri Utami – VP Corporate Planning & IR
Siendy K Wisandana – Head of Legal Counsel and Secretary
Since the early 1900s, with oil discoveries in Sumatera in 1885, Java in 1887, and Kalimantan in 1891, Indonesia has been recognized as an important oil-producing country outside America.
By 1900 there were already 18 oil companies operating in Indonesia. It is interesting to note that only companies registered in Nederland and managed by the Dutch could operate in Indonesia at that time. The reason for this was up until World War II, Indonesia was under the administration of the Netherlands East Indies (NEI).
These old Dutch oil companies played important roles in putting Indonesia on the world map as a significant producer of crude oil and fuels. They discovered and developed many oilfields in Indonesia, and even built refineries in Sumatera, Java, and Borneo. By 1938, oil production had reached 140,000 barrels per day.
By 1945, the year when Indonesia declared its independence, due to acquisitions and mergers, the number of oil companies had reduced to just four: BPM (Bataafsche Petroleum Maatschappij), NIAM (Nederlands Indische Aardolie Maatschappij), STANVAC, and CALTEX.
Stanvac and Caltex which were owned by their American parent companies started as Dutch-registered companies.
After 1965, when Pertamina acquired BPM, all the oil companies with Dutch names no longer existed. Nevertheless, their names appeared in many old and new articles and are often cited in research papers.
Since the names of the old Dutch oil companies in Indonesia consisted of long Dutch words, they were often written in their acronyms.
Here is the glossary of the acronyms of some of the old Dutch oil companies that operated in Indonesia in the past.
The first oil exploration in Indonesia started not long after Colonel Drake successfully drilled the first oil discovery well in Pennsylvania in the United States in 1859.
By 1869, Dutch businessmen in Indonesia, known as the Netherlands East Indies at that time, had noticed and recorded 53 oil seepage locations in Sumatera, Java, and Kalimantan.
Then the first oil well drilling in Indonesia took place in 1871 in West Java.
However, commercial discoveries were made only several years later when a Dutch businessman drilled successful exploration wells in Pangkalan Brandan in North Sumatera in 1885 and Sanga-Sanga in East Kalimantan in 1892.
These two discoveries caught the attention of the world and put Indonesia on the map as one of the countries with interesting oil potentials.
By 1900 there were already 18 oil companies searching for oil in the Netherlands East Indies (NEI). All these companies were either Dutch companies or non-Dutch companies registered in Nederland. The high level of activities resulted in significant oil discoveries in the early 1900s.
Following the oil discoveries, refineries were built in Pangkalan Brandan in North Sumatera in 1892, Sungei Gerong in South Sumatera in 1926, Balikpapan in East Kalimantan in 1922. By 1940, there were already seven refineries in NEI: three in Sumatera, three in Java, and one in Kalimantan.
In 1938, the daily crude oil production was about 140,000 BOPD and in 1953 it was about 190,000 BOPD.
The high level of oil production and refining activities from 1900 to 1940 made Indonesia well-known as one of the world’s significant crude oil producers and refined product suppliers at that time. In fact, Indonesia was so well-known for its oil it became involved in World War II.
Recognized as a significant oil producer, Indonesia was invited to become a member of OPEC 1962.
The three oil companies that produced about 90% of all the petroleum in Indonesia during the Dutch colonial period are:
BPM – Bataafsche Petroleum Maatschappij
STANVAC – Standard Vacuum Oil Company
Here are the amazing stories of these three big oil companies operating in Indonesia before 1945.
BPM is Bataafsche Petroleum Maatschappij, also called the Batavian Oil Company. Batavia, which is Jakarta today, was the center of the NEI government.
BPM was established in 1907 by KNPM (Koninklijke Nederlandsche Petroleum Maatschappij) also known as Royal Dutch Petroleum Company and Shell Trading and Transport Company to explore and produce oil in the Netherlands East Indies.
Royal Dutch Petroleum Company owned 60% and Shell owned 40% of BPM.
Before BPM was set up, there were already as many as 18 oil companies operating in the Netherlands East Indies (NEI) from North Sumatera, Java, Borneo, and all the way to Papua.
BPM quickly took over almost all of these companies and dominated the oil industry in Indonesia. By 1920, it had controlled more than 95% of crude oil production in Indonesia.
In 1921, as the government of the Netherlands East Indies wanted to take part in the booming oil business in Indonesia, NEI and BPM formed another company called NIAM (Nederlands Indische Aardolie Maatschappij).
Many big changes took place in the oil industry after Indonesia declared its independence in 1945. The first big change was the takeover by the government of Indonesia the NEI’s 50% ownership in NIAM.
This marked the beginning of an Indonesian government-owned oil company. It also started a working relationship between BPM and the government of Indonesia. With this relationship, BPM managed to extend its activities in Indonesia until 1965.
In 1965, BPM sold all its assets in Indonesia to the Indonesian state-owned company PN Permina for US$110 Million. Permina later became Pertamina.
BPM operations in Indonesia were extensive. They stretched from the western part of Indonesia to the eastern part of Indonesia.
Here are the operations of BPM in various parts of Indonesia.
BPM In Borneo
In 1907, right after it was formed, BPM acquired the oil fields and refinery in Balikpapan from Mathilda company. It also acquired the oil fields in Sanga Sanga and Tarakan which had been discovered previously by KNPM (Koninklijke Nederlandsche Petroleum Maatschappij).
BPM expanded its exploration and production aggressively in East Borneo and continued to discover several other fields in these areas.
On the small island of Tarakan, BPM drilled 700 oil wells and built a refinery.
Production continued to increase and in the 1920s the Tarakan wells produced about 18,000 BOPD, a third of the total oil production in the whole Dutch East Indies.
BPM in North Sumatera
BPM acquired from KNPM the oil fields and the refinery located at Pangkalan Brandan. BPM also took over the operations of the oil tanking and the oil export facilities at Pangkalan Susu. Pangkalan Susu was the first oil-exporting port in Indonesia.
BPM in Java
In Java, BPM acquired the oil assets of DPM (Doordsche Petroleum Maatschappij), a Dutch oil company established by Adriaan Stoop in 1887.
DPM had discovered and operated the Kruka Field and the Djabakota Field near Surabaya in East Java. DPM also had built the oil refinery in Wonokromo. Completed in 1893, this was the first oil refinery in Indonesia.
By acquiring DPM, BPM also became the owner of some thirty oil fields in East Java including another refinery located in Cepu which was built in 1894.
BPM In South Sumatera
In South Sumatera, BPM took over SPPM (Sumatera Palembang Petroleum Maatschappij). SPPM had been operating the oil fields in its concessions in Banyuasin and Jambi.
BPM also acquired the oil assets of MEPM (Muara Enim Petroleum Maatschappij). MEPM had discovered the Muara Enim field and built the Plaju Refinery.
BPM In Irian Jaya
In 1935 BPM expanded its search for oil into Irian Jaya. For this venture, along with other partners, BPM formed a joint venture company named NNGPM (Nederlandsche Nieuw Guinea Petroleum Maatschappij) with exploration rights for 25 years.
By 1938 they had discovered the Klamono oil field. followed by Wasian, Mogoi, and Sele fields.
However, for commercial reasons, these fields were not developed.
STANVAC – Standard Vacuum Oil Company – started as NKPM (Nederlandsche Koloniale Petroleum Maatschappij) in 1912. NKPM was set up in Nederland by the American company Standard Oil of New Jersey so it could explore for oil in Indonesia.
Since Indonesia was under the control of the Netherlands East Indies at that time, Jersey Standards had to set up NKPM as a Dutch-registered and Dutch-managed company with headquarters located in The Hague.
NKPM began to make exploration in Java and South Sumatera in 1914.
It was in South Sumatera NKPM found its liquid gold. Operating from the city of Palembang, it discovered the Petak field in 1914, the Trembule field, and the huge Talang Akar field in 1921. These discoveries prompted NKPM to construct the famous Sungai Gerong oil refinery.
In 1922 NKPM changed its name to SVPM (Standard-Vacuum Petroleum Maatschappij).
It also constructed the 130 Km long pipeline from Pendopo area to Sungai Gerong to bring the crude oil from the prolific Talang Akar field to the refinery.
The Sungai Gerong refinery began operating in 1926 and became the largest and important oil refinery in South East Asia.
It was so important that the refinery was occupied by Japanese forces from 1942 to 1945 during World War II.
To meet the increasing demands for petroleum products in Africa and the Asia Pacific, Standard Oil Company of New Jersey and SOCONY (Standard Oil Company of New York) jointly created STANVAC (Standard Vacuum Oil Company) in 1933.
This was a synergistic partnership as Standard Oil Company of New Jersey had the oil production capacity and SONONY had the marketing facility.
The newly created Stanvac in the Netherlands East Indies consisted of three companies: Standard Vacuum Petroleum Maatschappij (SVPM), the Standard Vacuum Sales Company (SVSC), and the Standard Vacuum Tankvaart Maatschappij (SVTM).
Stanvac took over all the assets of SVPM in Indonesia and became a full-fledged oil company involved in oil exploration and production, refining, transportation, and distribution in more than 50 countries.
However, Stanvac continued to operate under its Dutch company name – SVPM – in the NEI.
Stanvac produced oil from many fields in South Sumatera. The notable ones were Talang Akar, Djirak, Benakat, Radja fields.
In 1934, Stanvac expanded its operations to Central Sumatera. Here it discovered and developed the well-known Lirik field and later the Binio field.
Things began to change after World War II and the declaration of independence of Indonesia.
It was after the declaration of independence by Indonesia in 1945, to distance itself from its Dutch connection, Stanvac began calling itself Stanvac Indonesia as its company name to show its American origin.
In so doing, Stanvac was able to keep its assets and continue to operate in the newly independent Indonesia.
In 1960, as Indonesia wanted to have more control of the oil operation and business, it introduced the 1960 Oil Law which stated that all foreign oil companies must operate as a contractor for the Indonesian government.
On 24 September 1963, Stanvac signed the “Contract of Work” agreement with Indonesia’s Pertambangan Minjak Nasional (Permina).
The contract allowed Stanvac to continue to have full control of its oil exploration and production operations in Indonesia. Under this agreement, Stanvac must sell its refinery within ten to fifteen years.
However, Stanvac had to sell its Sungai Gerong refinery to Pertamina in 1969.
Stanvac Indonesia continued to operate its oil fields until finally, it left Indonesia in 1995 when it sold all its assets to Medco Energi for 88 million USD.
CALTEX was established in 1936 by Standard of California and Texaco to explore and produce oil in Indonesia and to expand its oil business in the Asia Pacific.
Earlier in 1924, The Standard of California had sent its team of geologists to Indonesia.
To operate in the Netherlands East Indies at that time, Caltex must obtain oil concessions from the government of NEI (Nederlands East India) who was the ruler of Indonesia at that time. To do so, Caltex established NPPM (Nederlandsche Pacific Petroleum Maatschappij), a Nederland registered company with its headquarters located in The Hague. Also, the company must be run by Dutch nationals.
In the same year, Caltex received its first oil concession in the Rimba area which is now known as the Rokan Block in Central Sumatera.
Soon after that Caltex began to find oil, but it was in 1941 that Caltex discovered the huge Duri field. Due to the high pour point of its low gravity crude oil, it was necessary to use steam-flood to drive out the oil. Due to the success of the steam flood method, the Duri field became known as one of the largest steam-flood projects in the world. In spite of the huge challenges to produce the field, it has produced more than 2.64 billion barrels of oil so far.
Several years later Caltex went on to discover another giant oil field, The Minas field.
The story of the Minas field discovery is very interesting. In 1940, at the beginning of World War II, Caltex had started the drilling of its exploration well in the Minas area. However, before the drilling was completed, Caltex had to abandon the drilling as the Japanese army was coming to occupy the area and to take over the oil facilities.
The Japanese army engineers resumed the drilling of the well in 1943 and discovered oil when it drilled down to 2600 feet deep.
At the end of the war, Caltex regained control of its oil assets and continued to investigate the Minas field. After drilling several additional wells, Caltex confirmed the discovery of the huge Minas oil field.
Caltex went on to discover many smaller oil fields in its concession area.
By the late 1950s, Caltex became one of the largest oil producers in Indonesia. At its peak in 1973, Caltex produced about 1 million BOPD from the Duri, the Minas, and about 80 smaller oil fields. Caltex holds the record of having the highest daily crude oil production rate in Indonesia.
Caltex completed the construction of a crude oil export terminal in Dumai in 1958.
Caltex signed a work contract agreement with Indonesia in 1961 giving it the right to continue to operate the Rokan block until 2001. Later on, Caltex managed to obtain a work contract extension to operate the block for another 20 years until 2021.
The two owners of CALTEX, Chevron, and Texaco merged in 2001 to become ChevronTexaco Corporation. Later on, in 2005, ChevronTexaco Corporation dropped the name Texaco and renamed the company as Chevron Corporation.
Following the name change of its parent company, Caltex in Indonesia which was initially incorporated as PT Caltex Pacific Indonesia changed its name to PT Chevron Pacific Indonesia.
By 2008, Chevron Pacific Indonesia had produced 11 billion barrels of crude oil from the extremely prolific Rokan block.
Although the Rokan block has been producing oil for more than 80 years, it still has 2 billion barrels of estimated producible reserves. It is considered as an important block in Indonesia’s ambition to increase the daily oil production in Indonesia to one million barrels by 2030.
Although the name Caltex disappeared in Indonesia after the name change, the Caltex petroleum brand is still alive in many countries in the Asia Pacific.
These three companies of the past were great companies to work for. Since most of their oilfields were located in the middle of a jungle, the companies provided good and well-rounded facilities – schools, clinics, cafeterias, places for worship, sports, and entertainment – to their employees and their families.
Many people and children of those who had worked for these companies have fond and colorful memories of the companies.
To me, the one that is the most interesting is BPM.
The joint venture of Royal Dutch Petroleum Company and Shell Trading and Transport Company that formed BPM – Bataafsche Petroleum Maatschappij – in Indonesia in 1907 sowed the seed that eventually grew into the current giant Shell Oil Company.
Also, BPM had a role in the rise of Pertamina when Pertamina took over all the assets of BPM in 1965.
The Indonesia government will drill geothermal exploration wells in 20 geothermal work areas in Indonesia beginning in 2020 until 2024, according to Ida Nuryatin Finahari, Director of Geothermal in the Ministry of Energy and Mineral Resources.
The purpose of this initiative is to gather information on the geothermal potentials in each work area and to pass this information to potential investors.
The Indonesia government hopes this four year project will stimulate the interests of investors and accelerate the development of geothermal energy in Indonesia.
Here are the twenty geothermal work area where the government of Indonesia will drill exploration wells.