Peran Engineering

Dalam Industri Gas

Kuliah Kapita Selekta

T. Kimia - Universitas Indonesia
5 Mei 2011
AGENDA
1. Introduction – Migas Industry
2. Business Development & Project Phases
3. Bisnis Gas Pertamina
4. Engineering’s Role
Introduction
Daniel S. Purba
VP Engineering & Project
Gas, PT Pertamina (Persero)

Office:
Oil Centre Building 8th Floor
Jl. MH Thamrin No. 55 Jakarta 10350

Experiences:
 GM of LNG Sales , PT Pertamina (Persero) – 2007
 GM of LNG Market Development, PT Pertamina (Persero) – 2008
 VP Proc, Sales & Market Analysis, ISC, PT Pertamina (Persero) – 2009
 VP Engineering & Project, Gas, PT Pertamina (Persero) - 2011
Introduction
Major Segment of Oil and Gas Industry:
1. Upstream Activities
• Exploration and production of oil and natural gas
2. Midstream Activities
• Transportation, storage and trading of crude oil, refined product and natural
gas
3. Downstream Activities
• Refining and Marketing Crude Oil
• Local distribution companies

Participants:
1. Majors – Integrated Oil and Gas company; involved in every aspect of integrated
business
2. Pure play companies in various area
Corporation, Business, Investment & Projects
Corporation, line of businesses
 Manufacturing & Production
 Trading, Sales, Distribution, Retail
 Services

Corporation, stages of businesses

 Starting-up new business
 Existing, on-going business
 Growth, expanding and extending business
 Closing-out, liquidation of business

Corporation, structure of business

 A going concern, profit oriented, continuously looking for growth and capital gain,
continuously looking for new businesses
 A project company, operating company, non-profit, limited or no growth objectives, no
capital gain, not allowed to seek new business.
 A SPV (Special Purposes Vehicle), paper company, investment portfolio company,
establish to isolate liabilities, arm length of a going concern companies
Corporation, Business, Investment & Projects
A Growing Concern Company
Must Survive & Grow

 Even to survive, maintain current business, a going concern

company must continuously invest
o Promotion campaign, loyalty program
o Facilities renovation, rejuvenation, up grading
o Replace obsolete equipment, software and systems

 To grow, a going concern company almost always need to invest

o Exception: wind fall, fiscal & monetary up side
o Invest for growth: start-up new business, construct new production facilities, or
establish new point of sales and point of services, or deploy new system
Project Development
Project Development
Project Development
Project Processes
The 5 Project Processes

 Initiation Process
 Planning Process
 Execution Process
 Controlling Process
 Close Out Process

Sources: PMI, A Guide to PM_BOK, 1996

Project Phases
Project Phases Is Unique and Different for Every Industry
 Typical Engineering Construction Project Phases (Per Morris),

Pertamina/Refinery Projects Fall Into This Category:

 Stage I – FEASIBILITY
 Stage II - PLANNING & DESIGN (FEED)
 Stage III - PRODUCTION or EXECUTION (EPC)
 Stage IV - TURNOVER and START UP

Typical Engineering Manufacturing Project Phases, Such As New Airplane

Project (Per US DOD 5000.2 - 1993):
 Stage I - Concept Exploration and Definition
 Stage II - Demonstration and Validation (Prototyping)
 Stage III - Engineering and Manufacturing Development
 Stage IV - Production and Deployment
 Stage V - Operation and Support
Business Dev Project Phases
PERTAMINA CURRENT GAS BUSINESS SCHEME

LNG Business Downstream

Upstream Import LPG

LNG FSRU
LNG PLANT Dit. M&T – Gas Dom

Refinery

GAS
PRODUCER

Dit. Hulu

Midstream
PSCs’ LPG
Private Industry City Gas
Companies
PIPELINE GAS

Pertagas
Power Plant
KURVA TRANSFORMASI FUNGSI GAS, PERTAMINA
Lima tahun pertama:
● Optimasi dan memberikan
Evolusi NOC
value added pada seluruh
mata rantai bisnis gas, yang
meliputi produksi gas, produksi
LNG, marketing & trading gas,
receiving & regasifikasi LNG,
transportasi gas, serta potensi
bisnis gas lainnya.
● Mengamankan posisi
Pertamina sebagai penjual
LNG Indonesia dalam bisnis
LNG internasional, serta
menjadi leader dalam bisnis
gas domestik dan usaha terkait
lainnya.
• Mengembangkan dan
mempererat jaringan dan
hubungan bisnis dengan
existing dan potential partners.
• Inisiasi bisnis power.
Phase 1: Membangun pondasi
2011
Lima tahun kedua: Lima tahun ketiga:
• Memantapkan integrasi bisnis gas, dan • Memantapkan posisi Pertamina
usaha terkait lainnya dari sektor hulu dalam bisnis gas dan power
sampai hilir di domestik. internasional.
• Penguasaan sektor hulu bisnis LNG • Mengembangkan portofolio
melalui akusisi Mahakam, farm-in di bisnis gas internasional.
lapangan Deep Water, Semai, Masela, • Mengembangkan potensi bisnis
dan CBM, serta penguasaan bisnis mini derivatif gas.
LNG untuk Indonesia Bagian Timur.
• Komersialisasi lapangan gas Natuna D-
Alpha
• Memantapkan leadership gas
Pertamina sebagai regional player Asia
Tenggara dan Asia Pasifik.
• Pengembangan bisnis power
• Memantapkan fondasi untuk berperan
dalam bisnis gas internasional. Phase 3: Go international
sebagai operator
Phase 2: Membangun
kesempurnaan operasi
(operational excellence)
2013 2018 2023 Typical
time
 INTEGRATED GAS BUSINESS PERTAMINA

Industry City Gas

PIPELINE GAS

GAS LNG FSRU Power Plant

PRODUCER LNG PLANT RETAIL GAS

CNG TRUCK

UPSTREAM MIDSTREAM (FUNGSI GAS) DOWNSTREAM

Pelaku Usaha Fungsi & Lingkup Kerja Pelaku Usaha
PT PEP a. Penguasaan bisnis gas Indonesia di bawah leadership PT Arun: GasDom,
Pertamina dengan menjalankan kegiatan operasional existing • Pencairan gas (LNG) Dir. M&T
PT PHE: sebagai penjual LNG Indonesia, dan monetisasi resources • Satelit dan Regasifikasi (LNG dan LPG), serta IPP (future) Sebagai front
hulu (conventional & unconventional) untuk mendapatkan PT Badak: liner di bidang
• Domestik
harga gas yang optimal melalui opsi skema-skema yang • Pencairan gas konvensional retail gas dan
• Internasional
tersedia, antara lain: LNG, LPG, CNG, GTL, DME, gas pipa, • Pencairan CBM (future) produk gas
listrik, dll, untuk memaksimalkan stakeholders value, • Satelit dan Regasifikasi (LNG dan LPG), serta IPP (future) lainnya.
Others: khususnya Pertamina Korporat, dengan mensinergikan • LNG service company (future)
• Domestik kegiatan bisnis hulu dan hilir. PT Nusantara Regas PLN
• Internasional b. Mensinergikan para pelaku usaha gas Pertamina, termasuk Membeli LNG, regasifikasi LNG, dan menjual gas ke PLN, Industri
pengembangan SDM-nya, agar dapat memberikan service dll Pupuk
ke anak perusahaan ataupun ke perusahaan lain. PT Donggi Senoro LNG
c. Sebagai vehicle korporasi untuk ikut serta mendukung Membeli gas, mencairkan gas menjadi LNG, menjual LNG
pencapaian target energy mix di bidang gas guna PT Pertamina Gas
memaksimalkan pemakaian gas di dalam negeri melalui a. Bisnis transportasi gas.
perundang-undangan, maupun kegiatan investasi. b. Bisnis penjualan bulk gas ke power plant, industri, dan city
gas.
d. Pemanfaatan peluang usaha melalui kegiatan trading.
c. Bisnis IPP, LNG for Vehicle, CNG (future)
Pertamina Energy Trading Limited (Petral)
• Trading LNG, LPG, dll
GAS BUSINESS CHALLENGES
• Demand is expected to double by 2020, growing at 6-8% p.a.;
Indonesian gas • Driven by gas based power plants, Industry and Fertilizer
demand poised for • Java will be a critical market, accounting for ~65% of the growth
• The cost of alternate fuels for power and industry is significantly higher than current
strong growth gas prices

• Lack of critical transmission and distribution infrastructure preventing supply from

However, growth Kalimantan & Sulawesi to Java
constrained by • Low upstream gas prices preventing development of higher cost upstream assets
pricing & and infrastructure development
infrastructure • Significant margins in midstream & downstream make integrated value chain
economics attractive

• Pertamina should control critical transmission infrastructure to improve margins and help
Pertamina should development of upstream gas assets
become ”Integrated – Lead development of critical T&D infrastructure-1 FSRU, additional Regas facility
value chain (TBD), East West Jawa pipeline & CNG network
developer” – Help capture improved margins across value chain

• Need a focused business unit to take an integrated, commercially oriented view of gas
Implementation business
needs focused • Develop partnerships to bridge skills gaps & accelerate execution
organization & • Develop a robust implementation plan with key milestones, responsibilities assigned
partnerships which can be monitored to ensure successful execution
 Indonesian domestic gas demand is expected to grow
significantly (6- 8% p.a.) until 2020
Total domestic gas demand (excluding gas demand for export, LNG plants and re-injection
for oil production)1
Mmscf/d CAGR 2008-20
Actual Forecast Percent
5,500 82
Demand growth
5,000
driven by
4,500 6 • Strong growth in
new gas fired
4,000
power and
3,500 Demand forecast range substituting oil
3,000 based plants
(8-10% pa)
2,500
Forecast for Indonesian • Industry demand
2,000 gas demand 6.0-8.0% annual growth
between (5-7%
1,500 pa)
1,000 • Gas demand by
fertilizer to grow
500
(by 5-6% pa)
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1 Historical actual data aligned for different sources

2 High scenario could potentially be higher by ~300 Mmscfd if additional planned PLN capacity to replace Bojonegara is instal led
 Bulk of this demand and projected growth is expected
in Java (~65%)
2008 Actuals
Gas demand by region 2008-2020 gas demand
Mmscf/d Forecasted gas
demand
Kalimantan % Gas demand
growth, CAGR
~6% p.a.

~570 ~700 Sulawesi

~350

Actuals Forecast Forecast ~6% p.a.

20081,2 2015 2020
~90 ~100
~50
Sumatra
Actuals Forecast Forecast
~6% p.a. 20081,2 2015 2020

~770 ~920
~450

Actuals Forecast Forecast

20081,2 2015 2020
Java

~9% p.a.

~3,000 ~3,400
~1,200

Actuals Projected Projected • Most of gas demands are located

20081,2 2015 2020 in Java, far from the resources
• Gas transportation infrastructure
1 Energy Balance 2008 by Ministry of Energy and Mining Resources have to be developed for the supply
2 Sector level assumption of gas demand used to split total Indonesian demand over regions demand integration
SOURCE: FACTS; BPPT; PLN; PGN: Pertamina; team analysis

18
 PERTAMINA EMERGING GAS PROJECTS
Arun Receiving Terminal
Location : Arun
Capacity : 320 mmscfd
Project Owner : PNA Location : Luwuk
Main Consumer: PIM, PLN’s power plants, Capacity : 2 MTPA
Aceh Industrial Project Owner : Fungsi Gas PERTAMINA
Main Consumer: Japan, Korea

Independent Power Provider

Location : Lhokseumawe, Aceh
Project Owner : Pertamina-PDPA
On-stream Target : 2011

Future Potential Projects

1. Utilization of Arun LNG Facility for
LPG Trading, Condensate Cracking,
Location : Jakarta Bay O&M Yard
2. Utilization of Bontang LNG Facility
Capacity : 3 MTPA (400 MSCFD)
for mix scheme business (CBM
Project Owner : Fungsi Gas PERTAMINA - JV Co Location (tahap I): Balikpapan, Samarinda, liquefaction), IPP, LNG/LPG Trading,
Main Consumer: PLN’s power plants Pesanggaran, Kendari O&M Yard
(Tanjung Priok&Muara Karang) Capacity : 0.7 MTPA 3. CNG Network
Project Owner : Joint Venture Company 4. City Gas
(JV Co), PNA dan PLN 5. Mini LNG Plant
Location : Tanjung Mas, Semarang 6. Monetization of Masela Gas Field
Capacity : 3 MTPA (400 MMSCFD) Main Consumer: PLN’s power plants 7. Monetization of Natuna
Project Owner : Fungsi Gas PERTAMINA 8. PT Badak / PT Arun LNG
Main Consumer: PLN’s power plants Java Trans Pipeline independent service company
(Semarang) Location : Java Island 9. Others
Project Owner : Pertamina
On-stream Target : 2013-2015
Engineering’s Role
1. Business Development Phase
2. Project Phase
Project Planning & Design Phase
 Pre-FEED Activities
 FEED Bid Processes
 FEED

Pre-FEED Activities
o Objective: to Prepare Adequate Data and Information to Be Ready for the FEED
Bidding Processes
o Environmental Base Line Data
o Site Selection (for Grassroots)
o Land Right Acquisition (for Grassroots)
o Site Survey (for Grassroots)
o Conceptual Design Work (for Grassroots & Some Brownroot Project)
o Technology Selection
o Major Equipment and Process System Selection
Engineering’s Role
Front End Engineering Design (FEED)
 Project Management Establishment
 FEED Work
 Plant (for Main EPC Contract)
 Infrastructures (Housing Community, Airport)
 AMDAL Studies
 Community Development Studies
 Sales & Market Confirmation
Post FEED Activities
 FEED Contract Close Out Report
 Audit Findings Handling and Settlement
 FEED Post Audit Close Out Report
FEED Work Deliverables
 FEED, Product & Capacity Specifications
 Document Management & Numbering System
 FEED Work Breakdown Structures
 Deliverables Review & Approval System
 Applicable Codes & Standards
 Project Design Philosophies
 Project Specifications
 Studies & Simulations
 PFD & P&ID
 Instrumentation Function Diagram
 Material Selection Diagram
 Plot Plan & Layout
 Isometrics & Cable Routings
 Equipment Data Sheets
 Piping Bill of Materials
 Information System Design
 Construction Planning
 Approved Manufacturers List
 Value Engineering
Engineering’s Role
Project Execution Phase
 Pre-EPC Activities
 EPC
Pre-EPC Activities
 EPC Condition Precedence
Agreements
 Sales (Off take) Agreement
 Feedstock Supply Agreement
 Financing Agreement
 Transportation Agreement
 Early Procurement Activities
 EPC Bid Processes
Engineering Management in EPC
 Engineering WBS and Deliverables Planning
 Engineering Progress Measurement
 Technical Review of Contractor‟s Engineering
Work
 Procurement WBS and Deliverables Planning
 Procurement Progress Measurement
 Approval of Bidder List (Not Always)
 Approval of Contractor Bid Tabulation (Selected)
 Approval of Vendor Documents (Selected)
 Interface With Logistic and Gov. Authorities
 Approval of FAT Result for Critical Items
 QC of Construction Work
 Approval of Plant Performance Test
 Approval of Warranty Period Inspection Result
 Punch List and Deficiency Items Resolution
 Project Documents Transfer to Operating
Company
Engineering Deliverables in EPC
Equipment Mechanical Drawings
 Procurement Specifications
 Technical Specifications
 Spare parts Specifications
Commercial Terms & Conditions
 Government Inspection & Certification
Requirement
 Documentation & Manual Requirement
 Shipping Instructions
 Vendor Support Requirement
 Vendor Training Requirement
 Approved Bidder List
 Bid Clarification & Revision
 Vendor Selection
 Fabrication Drawings
 Shop Fabrication Procedures
 Welding Specification & Qualification
 Shop QA/QC Procedures
 FAT Procedures
 Pre-shipment & Shipment Procedures
 Installation Drawing &
 Procedures
 Field Inspection & Test
Procedures
 Equipment Certification & Calibration
 Tie In Procedures
 Cleaning & Blowing Procedures
 Equipment Solo Run Test Procedures
 Circuit Function Test Procedures
 System Test Procedures
 Operating & Maintenance Manual
 Plant Operation Worthiness Permits (SKPI)
Engineering’s Role
Procurement Activities
 Vendor List
 Bidders List
 Procurement Specification
 Expediting Plan
 Fabrication Specification
 Factory Acceptance
 Shipping Tracking
 Custom Clearance
Construction Management
 Construction Planning
 Construction Resources Material Planning
 Labor & Manpower Planning
 Construction Safety Management
 Pioneer Facilities Planning
 Construction Shops Planning & Specifications
 Light & Heavy Equipment Specifications
 Rigging Procedures
 Construction Training Facilities Specifications
Engineering’s Role
Turn Over & Start Up
 Mechanical Completion
 Commissioning & Start Up
 Project Support for Operating Company
Establishment
 Operational Acceptance
 Warranty Inspection
 Dispute & Deficiency Resolution
 Final Acceptance
 Project Audit Program
 Project Close Out
Engineering’s Role
Project Control
• Control Philosophy
• Project Control Cycle
• Activities Planning & Schedule
Management
• Budget & Cost Management
• Quality Planning & Control
• Risk Identification & Control
Project Organization
Typical Project Organization for
Initial Portion of Definition Phase
PROJECT MANAGER

Engineering Project Control Administration Operation Reps.

Design Criteria Project Control Systems AFE documentation requirements Process input
Material/Equipment Availability Cost Control, Analysis and Accounting procedures Design review
Major Contractor Evaluation Reporting Procedures Tax requirements Maintenance review
Cost Estimates Manpower Planning/Surveys Organizational planning
Site Selection Cost Estimates Standard form contract
Scope Definition Major Contractor Selection Major Contractor evaluation
Environmental requirement
Project Organization
Typical Project Organization for
Design and Construction Phase
PROJECT MANAGER

Operation Reps Procurement Corporate Oper. Company

Start Up training Public Affairs Technical Support
Operating procedures Internal Audit Employee Relation
Safety Insurance Labor Relations
Operability review Tax Health & Safety
Maintenance Planning Legal Inspector
Labor Relation

ENGINEERING Project Control Construction Administration

Design Engineering Planning Construction Eng. Project Wide Internal
Process Engineering Scheduling Planning & Scheduling control
Project Engineering Cost Estimating Field Cost Control Accounting
Environmental Eng. Cost & Schedule Cost Engineering Financial Reporting
Safety Engineering control procedures Contract Management Fiscal Budgeting
Planning & Scheduling Cost & Schedule Material Management Contract Administr.
Material & Equip. Std. control Logistics Office Services
Quality Assurance Budgeting Safety Management General Administr.
Shop Inspection Project Reporting Quality Control
Cost Engineering Project Reporting
Project Reporting
Project Organization
Typical Owner's FEED Team Organization
Project Manager

Project Control Mgr. Engineering Mgr. Design Audit

Contract Adm. EHS

Project Engr. Discipline Engr. Resident Engr.
Cost/Sched. Operation
Marine Process System
Construction
Vendor Pre-Qual. Rotating Eq. Facilities
QA
Infrastructures Mechanical Doc. Control

EPC Package Control/IT

Electrical

Civil
Project Organization
Typical Owner's EPC Team Organization
Project
Manager

Project Control Engineering Construction

Services Mgr.
Mgr. Mgr. Mgr.

Contract Adm. System Eng. Plant Infrastructures HRD

Cost/Sched. Facilities Eng. LNG Trains Harbour Accounting

Doc. Control SHE Offsites Community Logistic

QA/QC Field Eng. Airport

RFO

IT/Telecom

Project Engr.
30