SPE Magz Des-Jan09 - Hal 1-14
SPE Magz Des-Jan09 - Hal 1-14
SPE Magz Des-Jan09 - Hal 1-14
J A V A I N D O N E S I A SECTION
DEC - JAN 2009
http://java.spe.org
EXECUTIVE INTERVIEW :
Mr. R. Priyono
Chairman of Executive Body of Oil & Gas
Upstream Business (BPMIGAS)
Continued on page 4
CONTENTS
PROFILE
1, 4 - 5
Mr. R. Priyono
Chairman of Executive Body of Oil and Gas Upstream Business
(BPMIGAS)
CONTENTS
Chairmans Message
New Born
PERMANENT
SPE e-Library
26
27
8-9
10 - 11
12
13
Student Chapter
14 - 20
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CHAIRMANS MESSAGE
A Message from the Board...
Dear fellow SPE Java Indonesia Section members,
First of all, to those who celebrate it, on behalf of the SPE Java Section I wish you a Merry Christmas. Andto all of you
I wish you a Happy New Year, and hope that 2009 will be a prosperous year for all of us and our families.
In this SPE Java Newsletters you will find an executive interview with Bapak R. Priyono Chairman of the Executive
Body of the Upstream Oil & Gas Business (BPMIGAS) who shared his views on BPMIGAS roles and the industry.
We highly appreciate Pak Priyonos time
Mr. Andrew Barker of Weatherford in his Luncheon Talk of 10 December 2008 shared his experiences on A CostEffective Approach to Brown Field Rejuvenation through Re-entry Drilling Techniques, which is highly relevant to
Indonesia with all its idle wells. We encourage all of you to attend our upcoming Luncheon Talks.
Apart from the above, it gives me a great pleasure that our students showed their dynamism to animate their SPE Student
Chapters activities. I am glad that the students are performing their roles to prepare their future.
Our SPE Java tradition continued with our Shrimp Boil Party was a sell-out success. It was enjoyed by many Indonesian
and expatriates families. Pak Doug Slusher took the lead to make this event happen. We thank him, the team members
and all sponsors.
The participation and contribution of our members is one of the keys to the success of
SPE Java Section programs. The challenge is to live up to the expectation of the SPE
community. So, tell us what you think and join us. We are pleased to mail this Newsletter
to our valued external stakeholders. To receive extra copies simply email me personally
or Ms. Mega: [email protected]. Also tell us your thoughts about our
Newsletter. Your comments will assist us to meet your needs. For a downloadable version
and more information about SPE Java Section please visit http://java.spe.org
Lastly, thanks must go to the management of our oil and gas companies and our
technology providers (service companies) for their ongoing support. Thanks
also to our SPE Board Committee and all our SPE Java Section members.
We would encourage everyone to be SPE members, please fill the form on page
24-25. Also for those who need to renew their membership.
See you in next Newsletter edition with more interesting articles, as
well as next SPE events.
Sincerely,
Deden Supriyatman
Chairman of SPE Java Indonesia Section 2008-2009
PROFILE
EXECUTIVE INTERVIEW with
Mr. R. Priyono
Chairman of Executive Body of Oil & Gas
Upstream Business (BPMIGAS)
SPE Java Indonesia Section represented by Peter Adam (Former Chairman), Tri Firmanto (Secretary),
Deden Supriyatman (Present Chairman), Yani Siskartika (Section Committee) and Mega (Section Officer)
were welcomed on 23 October 2008 by Mr R. Priyono at BPMIGAS office in Patra Jasa Building, 21th
Floor, Jl Gatot Subroto, Jakarta.
The interview started with a greeting by Deden Supriyatman - Chairman of the SPE Java Indonesie
Section.
SPE: Pak Priyono, on behalf of the SPE Java Indonesia Section, I would like to thank you for your time to
have this interview in spite of your busy schedule. To start, can you please share with us your academic
background?
R. Priyono: Actually, I did not enroll in an oil and gas industry course. I enrolled in industrial technology.
But every Saturday, I noticed groups of students with back-packs, ropes and tents. So I asked who they
were, and where were they going ? It turned out those students were geology students, and they were going
for camping and rock climbing. This appealed to me, so I changed my study from industrial technology to
geology. At that time, my father was very upset. He believed that geology was a pure science, so there
was no chance to make a good career. But I believe that I made the right choice.
SPE: Can you tell us about your early career?
R. Priyono: I start my career with a Canadian gold mining company, with an excellent salary (at that time)
of Rp. 1.6 million per month. But I didnt really enjoy it, so I choose to switch my career and work with the
government. I wanted to join Lemigas, but I was on a long waiting list, so I accepted an opportunity to join
the Ministry of Energy instead. My starting salary was Rp 31,000 per month. I was placed in the division
that handles equipment and technology for exploration activities, to promote local content.
After three years I moved into Human Resources (HR) Service. My job was very interesting because I
was responsible to ensure Indonesian professionals were given opportunities to contribute to the oil and
gas industry at high levels, replacing expatriate workers. But I soon realised that we could not really stop
companies filling their strategic positions with expatriates. So I turned the situation around, and insisted
that the companies send Indonesian people to fill an equal number of strategic positions in the companys
home country. This became known as international job swapping.
From HR, I moved to the exploration division, responsible for promoting new working areas to investors.
My challenge was how to speed up the process to increase the level of investment. Once again, the key
was turning around the situation. Historically, the government proposed working areas to investors. But I
swapped this. I invited investors to approach the government to discuss blocks they wanted to invest in. To
keep this process transparent, I created a tender team comprising a mix of people from various industries
and from academia. After implementing this scheme, there has been a significant increase in investment.
This has been one of the most enjoyable moments in my career, because the Oil & Gas Director General
gave me freedom to be creative.
SPE: Pak Priyono, you made a radical change in your career by quitting a foreign company with a big salary
to work in the government service with a tiny salary. What drove you to make this decision?
R. Priyono: I just want to give myself to my country, not just to one person or one company.
SPE: How has the culture in the Ministry of Energy has changed from the Suharto era to now?
PROFILE
R. Priyono: It is totally different. Previously, we could work without fear, since all the responsibility was taken high up in the central
government. But now, the responsibility has been pushed down to us, so we have to take care of our job, and coordinate with other
government departments. All is much more transparent now.
SPE: Pak Priyono, a common theme in your history is implementing new ideas to get better results. Will you continue in this spirit
with your plans for BPMIGAS?
R. Priyono: In BPMIGAS, the most important thing is culture. We want to change our mindset from bureaucracy
to business. I want businessman here, so we can understand the market. I have invited Dr. Ong Hang Ling
for instance, to become my expert. I want to cut bureaucracy, so we can speed up approvals, speed up
operations, and increase production.
SPE: Pak Priyono, a more personal question: how was the selection process for your current position?
R. Priyono: I had no political experience at that time, so it was going into the jungle. Part of the process
was question-and-answer sessions with political parties. One party wondered if I was too young for this job.
I answered What I offer is change. I believe with my younger age I drive more significant changes. Another
wondered about my lack of a Masters or Doctorate degree. I answered Do you want a philosopher or a
leader? I am a leader. During these sessions, I gave down-to-earth answers and did not promise anything
that I could not give. What I gave was hope. If we work together to nurture our industry, then the increased
production will give a bigger cake for all to share.
SPE: Pak Priyono, can you share us a little bit about your family ?
R. Priyono: I have two children. They are important to me, and they have fully supported me during my
career. I taught them mathematics myself, but that back-fired and neither followed me into science. I also
taught them about life, and to give charity to people less fortunate than us. Happily, these lessons stuck.
They had been very understanding about my work schedule and long hours.
SPE: Pak Priyono, how can the SPE contribute to the oil and gas industry in Indonesia
R. Priyono: The most important thing is to promote investment in Indonesia. As you know, every day
BPMIGAS faces the parliament and the KPK (Anti Corruption Committee). The challenge is to promote our
industry to these functions so they can understand more about our industry.
SPE: Pak Priyono, what are your main challenges for the Indonesian oil and gas industry?
R. Priyono: My main challenge is to increase our national oil production. We have the reserves, but we need
to turn this into production. My other challenges are to further improve the investment climate or environment
and relations between BPMIGAS and the Contractors. I always remind the presidents of oil companies
in Indonesia that they put their signature in the same page as the head of BPMIGAS, which mean we are
partners, and we should work together and build the trust to reach the same objectives.
SPE: What about the shortage of engineers, geologist and other personnel needed for industry growth in
Indonesia. What do you think is the best way to cope with this?
R. Priyono: We have to understand the root of the problem
first. I ask oil companies in Indonesia Please dont compete
with other PSCs, but compete with other countries. Cooperate with other companies in Indonesia to ensure the
future of Indonesia oil and gas industry.
SPE: Thank you for your time to give this interview.
EVENTS
NEW BORN
2009
JANUARY
SPE LUNCHEON TALK
Date:
15th January 2009
Topic:
Floating LNG, is it the right option for Indonesias Abadi
Field?
Speaker: Jamie Taylor from Wood Mackenzie
Venue:
Gran Melia Hotel Jakarta
SPE TECHNICAL DISCUSSION GROUP
Date:
TBA
Topic:
Advances in Contractors Safety
Speaker: Satrio Pratomo (EMP) and M. Najib (Total Indonesie)
FEBRUARY
SPE DISTINGUISHED LECTURER
Date:
18th February 2009
Topic:
Higher-Order Methods in Reservoir Simulation: Luxury or
Necessity?
Speaker: Hussein Hoteit from ConocoPhillips Co.
Venue:
Gran Melia Hotel Jakarta
SPE TECHNICAL DISCUSSION GROUP
Date:
TBA
Topic:
Indonesia Gas Business: Pricing Policy and Practices
Speaker: Kardaya Warnika (Former Head of BPMIGAS), Martin Tiffen
(Total) and Richard Fuller (Pendawa)
10th SPE BBQ
Date:
21st February 2009
Venue:
TBA
MARCH
SPE DISTINGUISHED LECTURER
Date:
TBA
Topic:
National Energy Sustainability Programs in Indonesia
Speaker: Prof. Widjajano (National Energy Council)
APRIL
SPE DISTINGUISHED LECTURER
Date:
21st April 2009
Topic:
Cutoofs (AE, k,Sw) in Gas Reservoirs and Their
Implications in Reservoir Simulation
Speaker: Ahmed Mousa Al-Hamadah from Saudi Aramco
Venue:
Gran Melia Hotel Jakarta
SPE GOLF TOURNAMENT
Date:
24th April 2009
Venue:
TBA
leven practicing engineers from various companies joined the SPE-TDGs special session at the Trisakti University, Jakarta,
on November 7, 2008. The informal session was co-hosted by SPE member and IATMI activist Mukmin Taslim, replacing
Professor Wahyudi Wisaksono of the School of Energy & Mineral Science of that University, who initially called for the meeting
and put together the discussion agenda. Two visiting sustainability experts from Colorado State University facilitated a one-hour
discussion on the basics of sustainability management practices within the oil & gas industry globally, which then lead to the
recent case example of the LUSI mud volcano incident in Sidoarjo, East Java.
Shown in the picture below are (sitting from left to right) : Prof.M.Albertson (blue shirt), Prof.Ed Shinn, Mukmin Taslim (in
white shirt), Agoestanzil Sjahroezah of EMP (in batik shirt), Ms.Eleonora Sofilda and Ms.Renny Hafild of Trisakti University,
Syarif Kusumanegara of IATMI and Ismail Widadi of the Ministry of Public Works. TDGs coordinator Prijo Hutomo is seen
sitting on right side upfront, working on a PC to document the discussion.
The discussion also went on to review some lessons learned from the new Plan B.3.0 Book authored by Dr.Lester Brown (see
picture on the next page) of the Earth Policy Institute (EPI). This newly produced book can be downloaded at no charge from
the EPI website : http://www.earth-policy.org/Books/PB3/index.htm.
It is decision time now, said Professor Maurice Albertson, quoting this inspiring book. Like earlier civilizations that got into
serious energy crisis and environmental trouble, we have to make a choice. We can stay with business as usual (Plan A) and watch
our economy decline and our civilization unravel, or we can adopt Plan B and be the generation that mobilizes to save civilization.
Our generation will make the decision, but it will affect life on earth for all generations to come.
Plan B 3.0 is a comprehensive plan for reversing the trends that are fast undermining our future. Its four overriding goals are
to stabilize climate, stabilize population, eradicate poverty, and restore the earths damaged ecosystems, commented Professor
Ed Shinn. Failure to reach any one of these goals will likely mean failure to reach the others as well.
In the Plan B energy economy, wind is the centerpiece. It is abundant, low cost, and widely distributed; it scales easily and can
be developed quickly. The goal is to develop at wartime speed 3 million megawatts of wind-generating capacity by 2020, enough
to meet 40 percent of the worlds electricity needs. This would require 1.5 million wind turbines of 2 megawatts each. These
turbines could be produced on assembly lines by reopening closed
automobile plants, much as bombers were assembled in auto plants
during World War II.
In the development of renewable energy resources, Brown notes,
we are seeing the emergence of some big-time thinkingthinking
that recognizes the urgency of moving away from fossil fuels.
Nowhere is this more evident than in Texas, where the state
government is coordinating an effort to build 23,000 megawatts
of wind-generating capacity (the equivalent of 23 coal-fired power
plants). This will supply enough electricity to satisfy the residential
needs of over 11 million Texanshalf the states population. Oil
wells go dry and coal seams run out, but the earths wind resources
cannot be depleted.
Solar technologies also provide exciting opportunities for getting us
off the carbon treadmill. Sales of solar-electric panels are doubling
8 . SPE News . Dec-Jan 2009
Event:
LUNCHEON TALK
SPE Luncheon Talk
Thursday, 06th November 2008
Ritz Carlton Hotel, Jakarta
by
Dr. Abdul Muin
Vice Chairman - the Executive Agency of Indonesian Upstream Oil and Gas Business Activities
(BPMIGAS)
How We Anticipate the Financial Crisis Impacts in
Upstream Oil & Gas Industry in Indonesia
The Distinguished Lecturer scheduled on Thursday 06th November 2008 was cancelled due to some internal reason, but SPE
Java Section was honored to have Dr. Abdul Muin to replace it just in time. It was successful and was attended by 65 people.
The summary of the talk as follows;
The oil and gas sector is still important for Indonesian economy and national security. PSCs and technology providers (service
companies) play a major role as they work closely with government in finding, developing and producing as much volume as
possible of oil and gas. The present financial crisis indicated by the down of the US stock market sharply has an effect to the
entire world including electricity and transportation, for instance.
Therefore, without exception it may have an impact into E&P activities of oil & gas industry including services and material
procurement.
Dr. Muin discussed how we anticipate the above financial crisis in upstream of our oil & gas industry, and then followed by
question and answer.
On behalf of SPE Java Section, we would like to thank Dr. Muin for his willingness to give such an interesting talk in such
a short notice. Really appreciate it and hope to have another topic again soon.
DISTINGUISHED LECTURER
Society of Petroleum Engineers
Distinguished Lecturer 2008-09 Lecture Season
STUDENT CHAPTER
Break-Fasting with SPE SC ITB
Date: Friday, 19 September 2008
efore leaving for the orphanage, we prepared from 14.30 until 15.00, talking about the rundown of event from
starting until ending, and collecting some stuff to be used in the Wisma Putra Orphanage.
We arrived at the Wisma Putra Orphanage at 15.00 then we decorated the meeting room quickly.
We started the event at 15.30 by reading the Al-quran. After that, the head of the orphanage (Mr. Ace Rokhmat)
greeted us.
Then Ibnu Hafi dz from the SPE SC ITB made a presentation on petroleum knowledge to the children from the
orphanage, who were junior high school students. At the end of the presentation, Ibnu Hafi dz asked question to the
children about his presentation, and the children who answered the question got the Cookies.
After Ibnus Presentation, Mr. Randy gave a tausiah about being happy. The children paid attention well; it can
be concluded by their interest in offering the question about tausiah. At 17.30, we shared the tajil then waiting for the
fast breaking at 18.00.
Then all the children and the SPE members shalat together in their masjid at 18.15 then returned to the meeting
room at 18.30 for dinner. After dinner, we took a photo for documentation.