World crude steel production for the 64 countries reporting to the World Steel Association (Worldsteel) was 162.7 million tons (Mt) in May 2019, a 5.4% increase compared to May 2018. China’s crude steel production for May 2019 was 89.1 Mt, an increase of 10.0% compared to May 2018. India produced 9.2 Mt of crude steel in May 2019, up 5.1% in May 2018. 

Subject to approval from the House of Representatives (DPR), the ministry of energy & mineral resources’ budget for 2020 could be doubled to Rp9.67 trillion. Most of the increase is attributable to a more aggressive approach in the development of city gas infrastructure, which could save the State budget from a ballooning subsidy for liquefied petroleum gas (LPG). 

The Indonesian government has set its coal benchmark price for June at US$81.48 per ton, sliced 0.46% from May at US$81.86 a ton, marking a tenth straight monthly drop for the benchmark price and the lowest price since July 2017. The Indonesian benchmark price has been under pressure in recent months due to import restrictions in markets like China and India, although the decline rate in June slowed from the previous month’ rate.

PT Energi Mega Persada Tbk (ENRG), a company controlled by Bakrie Family, currently has market capitalization of Rp610 billion only. Medco Energi (MEDC), controlled by Panigoro Family, is valued Rp13.7 trillion. The two, of course, can’t be compared in the context of market capitalization, because MEDC has non oil and gas businesses, including its shares in copper & gold miner PT Amman Mineral Nusa Tenggara (previously Newmont Nusa Tenggara, wherein Bakrie Family used to be the second largest shareholder). ENRG, meanwhile, is focused on oil and gas business. 

The Ministry of Energy and Mineral Resources (ESDM) is working on amending the Oil and Gas Law (RUU Migas). Among the things they seek to include in the RUU Migas is the gross split arrangement. The ESDM’s Director General for Oil and Gas Djoko Siswanto told us on June 16 that the Government wanted the gross split included in the draft.

The Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan had to lobby Saudi Aramco himself to make sure that they will move forward with PT Pertamina to develop the Cilacap refinery. This planned cooperation has been a plan since 2014.

The Masela Block project in the Tanimbar islands of Maluku has entered a new stage. On Sunday June 16, INPEX and the The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) signed a Heads of Agreement (HOA) for the development of the Abadi field.

The average price of crude palm oil/CPO (c.i.f. Rotterdam) for the first five months of the year was US$533 per tonne, a significant reduction from the US$663 per tonne during the equivalent period in 2018. Who will survive in the prolonged weak prices?

After 20 years of discussion, the prospect of Masela Block in the Arafura Sea, Maluku gets sees the light as Government of Indonesia, and Japan’s Inpex Corporation have agreed on the profit sharing scheme (50% : 50%). Ignasius Jonan, Minister of Energy and Mineral Resources (ESDM) has on Monday (May 27) agreed with Inpex in Tokyo on some strategic issues, relating to the development of Masela Block.

Global crude prices rose on Thursday (May 9) after a revival of investors hope that the United States could reach a trade deal and avert a hit to global economic growth, which would crimp oil demand. West Texas Intermediate (WTI) and Nymex’s crude oil gained 0.9% to US$62.24 a barrel.