ONWJ Contract Signed Soon

  

At present, the shares of ONWJ Block by PT Pertamina Hulu Energi ONWJ 58.28%, PT Energi Mega Persada Tbk. 36.72%, and Kuwait's Foreign Petroleum Exploration Company (Kufpec) 5%. 

    However, the government has decided to take over the entire management of the oil and gas block so that 100% of ONWJ shares will become the property of PT Pertamina starting January 19, 2017. Currently, the production sharing contract / PSC scheme that applies in ONWJ uses a cost recovery scheme.

However, in the new contract model, the government will tend to use the gross split PSC model or gross profit sharing without any cost recovery (refundable oil and gas production costs).

PT Pertamina Upstream Business Development Senior Vice President Denie S. Tampubolon said the cooperation contract for the oil and gas block located on the north coast of West Java will expire on January 18, 2017. He hopes that the new contract can be signed before the deadline. If the government wants to implement a production sharing contract (PSC) with a gross split scheme in the new contract, the government needs to sign new agreements on the block more quickly.

The gross split PSC scheme does not take into account costs that can be returned or cost recovery. In the contract model, revenue from direct oil sales is shared between the government and the contractor. Meanwhile, PSC cost recovery that has been applied so far is calculated based on revenues from oil sales and then reduced income tax (PPh), the volume taken by the government each calendar year according to the agreement, and reduced cost recovery.

After deducting these costs, the profits from the block are shared between the government and the contractor in accordance with the fiscal terms and conditions stated in the contract. 

    Denie said the gross split PSC scheme was still being discussed internally within Pertamina. The government is still designing regulations governing the adoption of gross split PSCs. He hopes that the application of production sharing without cost recovery does not affect investment and production activities.

the ONWJ Block

Moreover, there is no transfer of management in the ONWJ Block because the operator is still the same, namely PT Pertamina Hulu Energi ONWJ. Oil and gas production-ready to sell or lift from the ONWJ Block in January-November 2016 reached 133 MMscfd of gas and oil at 35,900 BPD. Oil production from the block next year is targeted at 36,500 BPD. Regarding partners in managing the block, the same pattern will be applied as in the Mahakam Block.

In the new Mahakam Block contract, the government handed over management after the 2018 contract began to Pertamina. Thus, the participation of the ONWJ Block is 100% controlled by the government. After the government owns 100% shares through Pertamina, the oil and gas BUMN has the right to invite existing contractors to get involved. 

     Denie said he would offer participating shares to Energi Mega Persada (ENRG) on a new contract. Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said the implementation of the gross split PSC in the management of the ONWJ Block was still under discussion.

He said the application of the gross split was aimed at avoiding complicated business mechanisms such as budget submissions as well as the procurement process that had to go through the approval of the Special Task Force for Upstream Oil and Gas Business (SKK Migas). 

    During this time, some of the costs that contractors must incur in an oil and gas block have several uses that can be returned through cost recovery. House of Representatives Commission VII member Satya W Yudha said, the majority of the implementation of PSC cost recovery, the government only gained about 40%.

Bisnis Indonesia, Page-30, Wednesday, Dec 7,2016 

Village Head and Two Village Officials Close the Entrance of JOB-PPEJ

Hundreds of residents of Rahayu Village, Soko Subdistrict, Tuban Regency, which was the biggest in the People's Compensation Pay Movement (Gebyar Korak), held an action to demand compensation payments to the Pertamina PetroChina East Java Joint Operating Body (JOB -PPEJ). Rahayu residents refuse compensation, but we demand full 2016 compensation, said a member of the Rahayu Village Consultative Body (BPD), Soko District, Tuban Regency.

Because it has not been responded to for a long time, residents also blockaded the entrance gate of the Pertamina Petrochina East Java Joint Operating Body (PAD B). Compensation must be paid or flares must be turned off, "he added.

It is known, the oil and gas management company located at the border of Bulurejo Village, Rengel District, and Rahayu Village, Soko District, Tuban Regency, East Java, was allegedly constrained by compensation payments that would be given for two months or called compassion.

The action directly led by village officials took turns giving speeches starting from Sukisno Village Head and village head demanding compensation to be immediately disbursed. Until 10:33 WIB, none of the JOB P-PEJ management met with the masses. Information from Security Pad B, currently there are still meetings at the internal management level.

"We will go down the road in a row if the JOB P-PEJ Superintendent Field Admin, Akbar Pradima does not provide clarity when compensation will be given, Sukisno said.

Sukisno also revealed a number of compensation not yet given by JOB P-PEJ to affected residents. The amount is around Rp. 3, 4 billion from January to November 2016. Increasingly violent mobs continue to block the entrance to Pad B. Even village officials limit the time if at 11:00 WIB is not found, the masses will break the gates. 

     In addition to the Rahayu Village who gave speeches, the Head of Bulurejo Village, Yauri was also involved in the action. Also reportedly the Semutan hamlet, the Village of Bulurejo next year is not included in the list of recipients of compensation. The existence of flares that continue to ignite residents must receive compensation.

Bhirawa, Page-7,Wednesday, Dec 7,2016

Menyederhanakan Perizinan Industri Hulu Migas

    Perizinan memegang peranan penting di industri hulu minyak dan gas bumi. Banyak kegiatan eksplorasi maupun produksi yang tertunda pelaksanaannya karena masalah perizinan. Padahal, pernerintah tengah menggaungkan pentingnya kegiatan eksplorasi untuk meningkatkan jumlah cadangan dan produksi migas nasional. Berdasarkan data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), kegiatan eksplorasi dan produksi di hulu migas saat ini harus mengantongi 341 izin.

    Proses pengurusan seluruh izin tersebut melibatkan setidaknya 17 instansi/lembaga penelaah, perekomendasi, hingga penerbit izin. Selain banyaknya izin yang harus diurus, proses pengurusan pun membutuhkan waktu yang tidak singkat. Sebagai gambaran, pengurusan izin untuk melakukan survei seismik bisa memakan waktu satu tahun, bahkan lebih. Padahal, kegiatan survei seismik yang diperlukan sebelum dilakukan pengeboran eksplorasi hanya makan waktu beberapa bulan saja.

    Data pada 2015 menunjukkan, ada 40 kegiatan survei yang realisasinya terkendala perizinan. Realisasi komitmen pengeboran eksplorasi pada 2015 juga menghadapi masalah dengan adanya 41 kegiatan terkendala izin dan pengadaan lahan. Tidak berbeda dengan kegiatan eksplorasi, hambatan perizinan untuk kegiatan produksi dan pengembangan terjadi pada 80 kegiatan. Kepala Bagian Humas SKK Migas, Taslim Z. Yunus, menyatakan pengurusan izin untuk kegiatan hulu migas perlu dipermudah.

    Apalagi untuk kegiatan eksplorasi yang bertujuan menemukan cadangan migas baru. Banyaknya izin yang harus dikantongi akan mengulur ulur jadwal kegiatan eksplorasi karena pengurusan izin memakan waktu cukup lama. Padahal, hasil eksplorasi baru bisa dinikrnati 10-15 tahun ke depan. “Jika eksplorasi tidak digenjot, kesempatan untuk mematok peningkatan lifting juga tidak tercapai,” kata Taslim. Ke depan, pihak yang mengurus semua izin adalah SKK Migas yang nantinya akan langsung diserahkan ke Badan Koordinasi Penanaman Modal (BKPM) untuk rnendapatkan persetujuan.

    Permasalahan perizinan yang menjadi ganjalan dalarn pelaksanaan kegiatan hulu migas tidak bisa hanya diselesaikan oleh kalangan yang bergelut di dunia migas. Butuh kerja sama dan sinergi dengan berbagai pihak guna mengurai simpul-simpul masalah yang selama ini menghambat kelancaran kegiatan usaha hulu migas. Kepala Kelompok Kerja Formalitas SKK Migas, Didik S. Setyadi, mengatakan semua pemangku kepentingan, khususnya aparat negara, perlu memahami  bahwa industri hulu migas adalah kegiatan negara. Seluruh lahan yang digunakan untuk kegiatan hulu migas juga tercatat sebagai aset milik negara, katanya. Inisiatif-inisiatif yang dilakukan pemerintah dengan berkoordinasi bersama para pemangku kepentingan diharapkan akan mendukung kelancaran pelaksanaan kegiatan usaha hulu migas. Kondisi yang kondusif juga akan mendorong peningkatan investasi di sektor hulu migas.

IN ENGLISH

Licensing simplifies the Upstream Oil and Gas Industry

    Licensing plays an important role in the upstream oil and gas. Many of the activities of exploration and production pending implementation due to licensing issues. In fact, the central governmental echoed the importance of exploration activities to increase the number of national oil and gas reserves and production. Based on data from Special Unit of Upstream Oil and Gas (SKK Migas), exploration and production activities in the upstream oil and gas at this time must be pocketed 341 permits.

    The entire process of obtaining a license involving at least 17 government agencies / institutions reviewers, the recommenders, until the publisher permission. In addition to the number of permits that must be taken care of, the maintenance process also requires a short time. As an illustration, permits to conduct seismic surveys could take a year, or more. In fact, the seismic survey activities required prior to exploration drilling took only a few months.

    Data in 2015 showed, there are 40 activities that realization is constrained licensing survey. Realization of the commitment exploration drilling in 2015 also faced problems with their 41 activities constrained permits and land acquisition. Not unlike the exploration activities, permitting barriers to the production and development activities occurred in 80 activities. Head of Public Relations SKK Migas, Taslim Z. Yunus, said permits for oil and gas upstream activities should be made easy.

    Especially for exploration activities aimed at finding new oil and gas reserves. The number of permits that must be bagged to be stalling stalling exploration activities schedule for obtaining a license to take some time. In fact, the results of new exploration could dinikrnati the next 10-15 years. "If the exploration is not encouraged, the opportunity to peg the increase in lifting is not reached," said Taslim. In the future, those who take care of all permits is SKK Migas which will be directly submitted to the Investment Coordinating Board (BKPM) to rnendapatkan approval.

    Licensing issues is a wedge dalarn implementation of upstream oil and gas activities can not only be solved by those who wrestle in the world of oil and gas. It took cooperation and synergy with various parties in order to unravel the knots to a problem that hampers the smooth operation of upstream oil and gas business. Head of the Working Group Formalities SKK Migas, Didik S. Setyadi, said all stakeholders, especially the state, need to understand that the upstream oil and gas industry is the state activity. The whole land is being used for the upstream oil and gas activities are also listed as state-owned assets, he said. The initiatives taken by the government in coordination with the stakeholders are expected to support the smooth implementation of upstream oil and gas activities. Conducive conditions will also encourage increased investment in the upstream oil and gas sector.

Koran Sindo, Page-5, Tuesday, Dec,6,2016

Waiting for the Blessing of Crude Oil

    The performance of oil and gas issuers will get hotter after world crude oil prices continue to break new records, driven by OPEC's decision to cut production by 1.2 million barrels per day. The performance of oil and gas issuers until the third quarter of 2016 was still under pressure.

    Positive performance can only be achieved by PT Medco Energi Internasional Tbk. (MEDC), of the seven oil and gas issuers listed on the Indonesia Stock Exchange. A mining stock analyst from PT Recaptal Securities Kiswoyo Adi Joe assesses the blessing of crude oil prices can be achieved by issuers as early 2017. The skyrocketing crude oil price still needs further scrutiny to project the performance of issuers in Indonesia.

    The Brent oil contract traded at US$54.46 per barrel at the close in London, up 1% from its previous close. Throughout last week, Brent posted its most drastic gain since January 2009 with a 13% increase.

    Drastic strengthening also occurred in New York. The WTI contract traded 1.2% higher to its highest since July 2015 at US$51.68 per barrel. On the other hand, the price of Indonesian crude oil in November fell by US$ 3.39 per barrel from US$ 47.55 in October to US$ 43.25.

    Kiswoyo assessed that the trend of strengthening world crude oil prices would depend on demand. Winter in Europe and other countries are projected to increase demand. If the increase in oil prices persists, it will have a positive impact on the performance of issuers because the sale of oil is not carried out on a contract basis like coal.

    The upward trend will be confirmed when winter is over, but demand is still high. He assesses that oil and gas issuers will succeed if prices stay above US$ 80 per barrel for more than three months. The average cost of producing oil by issuers in Indonesia reaches US$20-US$35 per barrel.

    Senior Market & Technical Analyst at PT Daewoo Securities Indonesia Heldy Arifien assessed that oil and gas companies will still be the choice of market players until the end of this year. The oil and gas sector is projected to remain the prima donna of investors, especially in window dressing.

“We have a projected oil resistance of US$ 58 per barrel to US$60 per barrel. Until the end of the year, the average was US$ 48 per barrel. The oil price euphoria was used by investors for window dressing at least until the first quarter of 2017. Mining sector shares as of Thursday (Dec 1) shot up 73.76% throughout the year, far behind other sectors and the Jakarta Composite Index (JCI) which rose 13,19% (year-to-date).

Bisnis Indonesia, Page-1, Tuesday, Dec 6,2016

Harga Gas Belum Tuntas

  Pemerintah akhirnya merealisasikan janji memotong harga gas bagi industri pupuk, petrokimia, dan baja yang turun hingga US$1,5 menjadi maksimal US$ 6 per MMBTU mulai 1 Januari 2017. Sayangnya, cakupan perusahaan dan sektor yang dapat menikmati diskon tersebut masih minim, yaitu hanya perusahaan pelat merah. Berdasarkan Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) No. 40/2016 tentang Harga Gas Bumi untuk Industri Tertentu, penetapan harga gas baru berlaku pada 1 Januari 2017. Dalam beleid tersebut, pemerintah menyesuaikan harga jual gas terhadap beberapa industri juga tarif pengangkutan gas melalui pipa (toll fee) di gas tertentu.

Dalam beleid tersebut, lima perusahaan pemerintah mendapat diskon harga gas. Untuk penyesuaian tarif pengangkutan gas melalui pipa (toll fee), dua perusahaan, dari delapan, menikmati toll fee lebih rendah. Menteri Perindustrian Airlangga Hartarto belum mau memberikan tanggapan atas keputusan Menteri ESDM soal penurunan harga gas. Dirjen Industri Kimia Tekstil dan Aneka Kementerian Perindustrian Achmad Sigit Dwiwahjono mengatakan instansinya masih menunggu kelanjutan penurunan harga gas untuk tujuh sektor lainnya dan sektor kawasan industri. Dia menjelaskan diskon harga gas bagi industri bukan berdasarkan swasta atau BUMN, melainkan penggunaan gas sebagai bahan baku. “Buktinya, PT Kaltim
Methanol lndustri dan PT Kaltim Pama Industri berstatus perusahaan swasta.

Sekretaris Jenderal Industri Olefin, Aromatik, dan Plastik Indonesia Fajar Budiyono berpendapat tidak ada perbedaan harga yang jauh antara harga pada 2016 dan yang ditetapkan untuk berlaku pada 1 Januari 2017. Yang selama ini digembar-gemborkan jauh dari harapan, apa yang kami minta tidak sesuai. Mungkin negara masih butuh pendapatan. Tapi kalau harga gas diturunkan, pendapatan negara dari PPN dan PPh bisa naik karena
utilitas pabrik bisa naik hingga 95% ungkapnya.

Menurutnya, impor gas saat ini masih mungkin, tetapi itu berarti negara harus membangun fasilitas regasifikasi sehingga membutuhkan waktu yang lama. Direktur Eksekutif Asosiasi lndustri Besi dan Baja Indonesia (IISIA) Hidayat Diseputro mengatakan produsen baja swasta anggota
asosiasi itu mempenanyakan pengecualian produsen swasta dari kebijakan penurunan harga gas. Head of Corporate Communication PT Pupuk Indonesia Wijaya Laksana mengapresiasi upaya pemerintah merealisasikan komitmen menurunkan harga gas. Namun, untuk mendorong daya saing menghadapi produk impor tentu kami berharap harga gas bisa lebih kompetitif lagi,” kata Wijaya.

Pemerintah belum dapat memastikan untuk memperluas cakupan sektor industri dan perusahaan lain yang dapat menikmati diskon harga gas. “Itu biar Pak Menteri yang menjawab,” ujar Direktur Jenderal Minyak dan Gas Bumi Kementelian ESDM IGN Wiratmaja Puja. Akibat dari formula baru, penerimaan dari sektormigas secara nominal berkurang karena pemerintah dan kontraktor mengurangi bagian agar harga gas turun. Begitu pula dengan pelaku usaha yang mengantongi izin transportasi gas, katanya, juga berkorban demi menurunkan harga gas.

Industri telah menerima konsekuensi bila sewaktu-waktu harga gas melambung tinggi meski formula baru telah ditetapkan. Seperti yang tenulis pada Pasal 7, menteri bisa mengevaluasi harga gas setiap tahun atau sewaktu-waktu tergantung kondisi perekonomian nasional. “Kalau harga
produknya mahal, ya sharing the pain, sharing the gain," katanya. Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), Amien Sunaryadi, mengatakan pihaknya memfasilitasi amendemen perjanjian jual beli gas (PJBG). Hingga saat ini, pihaknya baru menyelesaikan tiga dari 10 PJBG yang ditargetkan rampung pada 31 Desember 2016. Untuk menurunkan harga gas, insititusi itu hanya bisa menekan biaya operasi kegiatan yang belum dilakukan.

Vice President Corporate Communication PT Pertamina Wianda Pusponegoro mengatakan perseroan mendukung penetapan harga gas baru bagi ketiga industri. Kami dukung untuk harga gas kompetitif terutama bagi sektor prioritas seperti pupuk, petrokimia serta pembangkit listrik dengan harapan volume penyerapan gas bisa meningkat agar utilisasi pipa pipa transmisi jug distribusi optimum

IN ENGLISH

Gas Prices Not Completed
    The government finally realize the promise of cutting the price of gas for the fertilizer industry, petrochemical and steel fell by US $ 1.5 to a maximum of US $ 6 per MMBTU effective 1 January 2017. Unfortunately, the range of companies and sectors that can enjoy the discount is still low, at only SOEs. Based on the Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 40/2016 on Natural Gas Prices for Industry Specific, new gas pricing effect on January 1, 2017, stated that the government adjust the selling price of gas to several industries also freight rates of gas through the pipeline (toll fee) at a particular gas.

    Stated the five companies the government got a discount price of gas. Tariffs for transportation of gas through the pipeline (toll fee), two companies, eight, enjoy lower toll fee. Minister of Industry Airlangga Hartanto not want to respond to the Minister's decision about gas price reduction. Director General of Chemical Industry, Textile and Miscellaneous Industry Ministry Achmad Sigit Dwiwahjono said his office is still waiting for the continuation of the decline in gas prices for the seven other sectors and the sectors of industrial areas. He explained discount gas prices for industry and not by private or state-owned enterprises, but the use of gas as a raw material. "The proof, PT Kaltim
Industries and PT Kaltim Methanol Industry Pama status as a private company.

    Secretary General of Olefin, Aromatic and Plastic Indonesia Fajar Budiyono found no difference in price between the price far in 2016 and are set to take effect on Jan. 1, 2017. What has been heralded far from the expectations, what we're asking is not appropriate. Perhaps the state still need the income. But if gas prices lowered, revenues from VAT and income tax could rise because
utility plant could be up to 95% he said.

    According to him, gas imports is still possible, but it means that the state should build a regasification facility so it takes a long time. Executive Director of the Association of Iron and Steel Industries in Indonesia (IISIA) Diseputro Hidayat said the private steel producer member
The association of private producers mempenanyakan exclusion from policy to reduce gas prices. Head of Corporate Communication of PT Pupuk Indonesia Wijaya Laksana appreciate the government's efforts to realize the commitment to reduce gas prices. However, to encourage the competitiveness of imported products would face we expect the gas price could be more competitive again, "said Wijaya.

    The government can not be sure to widen the scope of the industrial sector and other companies can enjoy discounts on the price of gas. "It let the minister answered," said the Director General of Oil and Gas at the Energy and Mineral Kementelian IGN Wiratmaja Puja. As a result of the new formula, the acceptance of sektormigas nominally reduced because the government and contractors reduce parts that gas prices down. Similarly, businesses that permit the transport of gas, he said, also sacrifice for lower gas prices.

    Industry has to accept the consequences when the time gas prices skyrocketed despite a new formula has been set. As stated in Article 7, the minister can evaluate the price of gas every year or at any time depending on the condition of the national economy. "If the price
products are expensive, so sharing the pain, share the gain, "he said. Head of the Special Working Upstream Oil and Gas (SKK Migas), Amien Sunaryadi, said it facilitates amendments gas sales agreement (GSA). Until now , his side had completed three of 10 GSA is expected to be completed on December 31, 2016. in order to lower the price of gas, the institutions can only reduce the cost of operating activity that has not been done.

    Vice President Corporate Communications PT Pertamina Wianda Pusponegoro said the company supports the establishment of a new gas price for the three industries. We support a competitive gas prices, especially for priority sectors such as fertilizer, petrochemical and power generation with gas uptake volume expectancy can be increased so that the utilization of transmission pipeline jug optimum distribution

Bisnis Indonesia, Page-1, Tuesday, Dec,6,2016

Moratorium Kontrak Inpex Kurang dari 10 Tahun

    Menteri Koordinator Kemaritiman Luhut Binsar Pandjaitan menyatakan bahwa pemerintah menolak permintaan moratorium kontrak selama 10 tahun yang diajukan Inpex Corporation di Blok Masela,“Tidak kami kasih, kalau 10 tahun,” ujarnya setelah bertemu dengan Menteri Energi dan Sumber Daya Mineral Ignasius Jonan Serta Wakil Menteri ESDM Arcandra Tahar, di Kantor Kementerian Koordinator Kemaritiman. Menurut Luhut, pemerintah sudah punya solusi atas permintaan moratorium kontrak yang diinginkan oleh Inpex. Namun dia enggan membeberkan solusi yang akan dilakukan pemerintah.

    Sebelumnya, Inpex meminta insentif moratorium kontrak selama 10 tahun untuk mengembangkan Blok Masela. Permintaan moratorium dengan memundurkan kontrak yang seharusnya berakhir pada 2028 menjadi 2038.  Moratorium kontrak sebagai komponsasi perubahan skema pengembangan Masala dari proyek Offshore (di Iaut) menjadi onshore (di darat). Inpex menyatakan perubahan skema tersebut menyebabkan jadwal pengoperasian proyek menjadi mundur.

    Selain moratorium kontrak, dibahas soal penambahan kapasitas kilang gas yang diminta Inpex. “Itu juga kami sudah ada solusinya,” ucap dia. Selain moratorium kontrak, pemerimtah masih menunda pembahasan permintaan Inpex untuk menambah kapasitas produksi kilang dari 7,5 juta ton menjadi 9,5 juta ton per tahun. Luhut mengatakan hasil pembahasan tersebut akan dilaporkan kepada Presiden Joko Widodo. Inpex meminta tambahan kapasitas kilang agar tingkat pengembalian investasi bisa mencapai 15 persen.

    Menteri Ignasius Jonan mengatakan permintaan Inpex Soal moratorium kontrak masih dihitung. Menurut dia, Inpex boleh saja meminta moratorium 10 tahun atau kalau perlu Iebih dari 10 tahun. “Minta 50 tahun juga boleh, masih dihitung,” ujarnya. Ihwal permintaan meningkatkan kapasitas produksi gas menjadi 9,5 juta ton  per tahun, Jonan menuturkan akan ada peningkatan dari kapasitas saat ini 7,5 juta ton, Namun tambahan kapasitas tidak sampai 9,5 juta ton per tahun.

    Wakil Menteri Arcandra Tahar mengatakan dasar pemerintah tidak memberikan perpanjangan kontrak selama 10 tahun berdasarkan hitungan yang masuk akal. Dia menyebutkan hitungan pemerintah tidak sampai di angka 10 tahun. Meski begitu, Arcandra enggan menjelaskan dasar perhitungan pemerintah itu. Moratorium kontrak yang akan diberikan, kata dia, kurang dari 10 tahun. Sebelumnya, Inpex juga akan meminta pemerintah memberikan insentif atas biaya investasi yang dikeluarkan untuk satu Kilang apung LNG. Semisal" US$ 1,6 miliar. Selain itu, kontraktor asal Jepang meminta tax holiday selama 15 tahun serta potongan bagi hasil pemerintah dengan kontraktor masing-masing 50 persen.

IN ENGLISH

Moratorium Contract Inpex Less than 10 Years

    Coordinating Minister maritime Luhut Binsar Pandjaitan stated that the government rejected the demand for a moratorium on the contract for 10 years filed Inpex Corporation in Masela, "Do not we love, if 10 years," he said after meeting with the Minister of Energy and Mineral Resources Ignatius Jonan well as the Deputy Minister of Energy and Mineral Resources Arcandra Tahar, in the Office of the Coordinating Ministry for maritime. According Luhut, the government already has a solution upon request moratorium contract desired by Inpex. But he was reluctant to reveal the solution that will be done by the government.

    Earlier, Inpex asked for a moratorium incentive contract for 10 years to develop the Masela block. Demand moratorium by extending a contract that should have ended in 2028 became 2038. Moratorium contract as komponsasi schema changes Masala development of projects Offshore (in Iaut) into onshore (land). Inpex declare the schema changes cause the operation of the project schedule into retreat.

    In addition to the moratorium contract, discussed about the refinery capacity additions requested Inpex gas. "That we have the solutions," he said. In addition to the moratorium contract, pemerimtah still postpone the discussion of Inpex request to increase refinery production capacity from 7.5 million tons to 9.5 million tons per year. Luhut said the results of these discussions will be reported to the President Joko Widodo. Inpex asked for additional refinery capacity so that the return on investment can reach 15 percent.

    Minister Ignatius Jonan said Inpex Problem demand a moratorium on the contract is still being calculated. According to him, Inpex is okay to ask for a moratorium of 10 years or if necessary exceeding 10 years. "Ask for 50 years may also still be calculated," he said. About the demand increase gas production capacity to 9.5 million tons per year, Jonan said that there will be increased from the current capacity of 7.5 million tons, but not until the additional capacity of 9.5 million tons per year.

    Deputy Minister Arcandra Tahar said basic government does not provide a 10-year contract extension that makes sense based on the count. He mentioned the government count is not up in the 10 years. Even so, Arcandra reluctant to explain the basis for calculating the government. Moratorium contracts to be awarded, he said, less than 10 years. Earlier, Inpex will also ask the government to provide incentives for investment costs incurred for a floating LNG refinery. Like "US $ 1.6 billion. In addition, a Japanese contractor requested tax holiday for 15 years as well as pieces for the results of government by the contractor each 50 percent.

Koran Tempo, Page-14,Tuesday, Dec,6,2016

Pemerintah Tolak Dua Permintaan Inpex

    Pemerintah memutuskan tidak memenuhi dua permintaan kontraktor kontrak kerjasama (KKKS) Blok Masela, yakni Inpex Corporation. Dua permintaan perusahaan asal Jepang tersebut terkait dengan perpanjangan kontrak 10 tahun dan peningkatan kapasitas produksi hingga 9,5 juta ton per tahun (mtpa). “Bersama Kementerian ESDM kami sudah memutuskan tidak memenuhi dua permintaan Inpex. Itu diputuskan setelah dilakukan perhitungan.

    Inpex minta kompensasi perpanjangan kontrak 10 tahun, tapi kita sudah ada jalan keluarnya. Tidak kita kasihlah kalau 10 tahun,” tegas Menteri Koordinator Bidang Kemaritiman Luhut B Pandjaitan. Permintaan tambahan kapasitas produksi gas Blok Masela tidak bisa dipenuhi. Sebelumnya, Inpex meminta kompensasi perpanjangan kontrak selama 10 tahun. Hal itu diminta karena lnpex menganggap pemerintah yang meminta revisi skema pengembangan Blok Masela dari di laut (offshore) menjadi di darat (onshore). Karena itu, masa kontrak pengelolaan Blok Masela diminta lnpex mundur dari yang semestinya rampung 2028 menjadi 2038.

    Selain itu, Inpex ingin menaikkan kapasitas produksi gas Blok Masala dari 7,5 juta mtpa menjadi 9,5 juta mtpa. Namun, pemerintah menyanggupi permintaan Inpex terkait dengan biaya penggantian masa produksi (cost recovery). “Cost recovery sudah US$ 1,4 miliar,” imbuhnya. Menteri ESDM Ignasius Jonan menambahkan pamerintah masih mempertimbangkan kenaikan kapasitas produksi Blok Masela dan kompensasi moratorium kontrak lnpex. “Kira-kira lebih sih dari 7,5 juta mtpa, tapi tidak banyak karena ada juga permintaan Kementerian Perindustrian agar gas dari sana dialokasikan untuk industri hilir, misalnya petrokimia. Ini lagi dihitung tambahannya,” papar Jonan. Kompensasi waktu Inpex berkontrak di Blok Masela juga masih dihitung. “Dalam hitungan kita tidak sampai segitu. Kita akan kasih, tapi tidak 10 tahun,” imbuh Wakil Menteri ESDM, Arcandra Tahar.

IN ENGLISH

Government Refuses Two Requests Inpex

    The government decided not to meet two demands contractor cooperation contract (PSC) Masela, namely Inpex Corporation. Two Japanese companies demand related to 10-year contract extension and increased production capacity to 9.5 million tonnes per annum (mtpa). "Together with the Ministry of Energy we have decided not to meet two requests Inpex. It was decided after calculation.

    Inpex asked for compensation for the contract extension of 10 years, but we had no way out. Not us is love if 10 years, "said Coordinating Minister for maritime Luhut B Pandjaitan. Request additional Masela gas production capacity could not be fulfilled. Earlier, Inpex seeks compensation for 10-year contract extension. It was requested because lnpex government considers requesting a revision of the Masela block development schemes at sea (offshore) be on land (onshore). Therefore, future management contract Masela asked lnpex retreat of which should be completed in 2028 into 2038.

    In addition, Inpex want to increase gas production capacity of 7.5 million block Masala mtpa to 9.5 million mtpa. However, the government undertakes Inpex request related to the replacement cost of the production period (cost recovery). "Cost recovery is already US $ 1.4 billion," he added. EMR Minister Ignatius Jonan adding the governments are still considering the increase in production capacity and compensation moratorium Masela lnpex contract. "Roughly more hell than 7.5 million mtpa, but not much because there is also a growing demand for the gas from the Ministry of Industry, there is allocated for downstream industries, such as petrochemicals. This again is calculated enhancements, "said Jonan. Compensation at the time of contract Inpex Masela also still counted. "In a matter of us not to much. We will love, but not 10 years, "added Vice Minister of Energy and Mineral Resources, Arcandra Tahar.

Media Indonesia, Page-18,Tuesday, Dec,6,2016

Target Lifting Migas 2016 Bisa Tercapai

    Target produksi terjual (lifting) minyak dan gas bumi dalam APBN-P 2016 sudah tercapai. Proyeksi itu berdasarkan data produksi hingga 30 November 2016 yang menyebut dari target lifting minyak 820 ribu bph diperkirakan dicapai 821,8 ribu bph dan untuk gas dari target 6.438 mmscfd diperkirakan tercapai 6.643 mmscfd. ”Dari sisi produksi per 30 November kemarin untuk minyak outlook-nya 8315 ribu bph, sedangkan untuk gas 7.945 mmscfd, sedikit di atas target, pas-pasan,” terang Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas (SKK Migas) Amien Sunaryadi.

    Produksi minyak dari Blok Cepu masih menjadi andalan untuk menopang lifting 2016. Produksi blok migas yang dikelola Exxon Mobil Indonesia itu masih konsisten di 165 ribu bph. Blok Cepu diperkirakan masih menjadi penopang lifting minyak nasional dengan rencana peningkatan produksi minyak mencapai 200 ribu bph. “Untuk lifting migas 2017 (815 ribu bph dan gas 1.150 juta setara minyak per hari), kita optimistis walau harus ada kegiatan pengeboran, skenario produksi sesuai kaidah untuk meningkatkan produksi,” Amien.

    Tahun ini, imbuhnya, ada 37 plan of development dan plan of future development (POFD) yang sudah disetujui. “Dari itu kita bisa mendapat tambahan cadangan 204 juta barel setara minyak dengan total investasi US$2,85 miliar, potensi pendapatan negara US$6,55 miliar, tapi tiap-tiap POD memiliki durasi yang agak berbeda,” terang Amien. Amien juga melaporkan, untuk total investasi pada 2016 diperkirakan mencapai US$ 10,43 miliar dengan US$ 10,3 miliar di sektor produksi dan hanya US$ 900 ribu untuk eksplorasi.

IN ENGLISH

Lifting Gas Can Target Achieved 2016

    Target production sold (lifting) of oil and gas in the APBN-P 2016 has been reached. The projection was based on the production data through November 30, 2016 calling on the oil lifting target of 820 thousand bpd estimated to reach 821.8 thousand bpd and for the gas target is estimated reached 6,438 MMSCFD 6643 MMSCFD. "In terms of production as of November 30 yesterday for oil outlook for its 8315 thousand bpd, while for gas 7945 MMSCFD, slightly above the target, just barely," said Head of the Special Working Upstream Oil and Gas (SKK Migas) Amien Sunaryadi.

    Oil production from the Cepu block is still a mainstay for lifting prop 2016. Production of oil and gas blocks are managed by Exxon Mobil Indonesia was still consistently at 165 thousand bpd. Cepu expected to remain the backbone of the national oil lifting with plans to increase oil production reached 200 thousand bpd. "For the oil and gas lifting 2017 (815 thousand bpd and gas 1,150 million oil equivalent per day), we are optimistic although there should be drilling, production scenarios according to the rules to increase production," Amien.

    This year, he added, there are 37 plan of development and plan of future development (POFD) has been approved. "From that we can get additional reserves 204 million barrels of oil equivalent with a total investment of US $ 2.85 billion, a potential state revenue of US $ 6.55 billion, but each POD has a duration that is slightly different," said Amien. Amien also reported, for a total investment in 2016 is estimated to reach US $ 10.43 billion to US $ 10.3 billion in the production sector and $ 900 thousand for exploration.

Media Indonesia, Page-17,Tuesday, Dec,6,2016

Januari, Harga Gas Lima Industri Turun US$ 1,5 MMBTU

    Harga gas untuk lima industri pupuk, petrokimia, dan baja turun hingga US$ 1,5 per MMBTU mulai 1 Januari 2017. Hal ini sesuai dengan Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) No 40 Tahun 2016 tentang Harga Gas Untuk Industri Tertentu yang baru saja diterbitkan oleh pemerintah. Direktur jenderal Minyak dan Gas Bumi Kementerian ESDM l Gusti Nyoman Wiratmaja mengatakan, penurunan harga gas ini diperoleh dengan mengubah formula harga gas yang berlaku. Jika sebelumnya harga gas dipatok tetap, kini harga gas dihitung dengan formula yang memasukkan pergerakan harga komoditas pupuk, amoniak, dan baja.
   
    Namun, mengingat harga ketiga komoditas itu saat ini sangat rendah, harga gas yang dipakai adalah harga dasarnya. “Jadi yang berlaku adalah floor pricenya. Ada yang harga gasnya US$ 6 per MMBTU, US$ 5,8 per MMBTU, dan ada juga yang sekitar US$ 3 per MMBTU,” kata dia. Harga gas baru akan naik ketika harga urea, amoniak, dan baja naik. Diakui Wiratmaja, penggunaan formula ini berbeda dengan rencana awal. Sesuai dengan Peraturan Menteri 40/2015, harga gas ditekan dengan mengurangi bagian negara dari penerimaan penjualan gas. Tetapi dengan menggunakan formula, penurunan harga gas ini ditanggung bersama oleh pemerintah dan produsen migas. Sehingga tidak ada pengurangan prosentase bagian negara. "Bukan pengurangan prosentase, tetapi secara nominal turun,” jelas dia.

    Pasalnya, formula harga gas baru menyebabkan penerimaan dari penjualan gas bakal berkurang. Dalam penurunan harga gas kali ini, disebutnya, hanya PT Pertamina yang terkena dampaknya. Pasalnya, dari sepuluh kontrak penjualan gas ke industri pupuk, petrokimia, dan baja, blok migas yang menjadi sumbernya dikelola oleh Pertamina dan aifiliasinya. Dalam hal ini, Pertamina memang diminta untuk berkorban. “Setengahnya itu berkorban Pertamina melalui efisiensi. Pertamina sudah diajak diskusi,” kata Wiratmaja.

    Tak hanya di hulu, penurunan harga gas juga diperoleh dari pemangkasan tarif pengangkutan gas bumi. Sesuai Peraturan Menteri 40/2016 ini, tarif yang dipangkas yakni untuk gas dari Kangean Energy Indonesia Limited ke PT Petrokimia Gresik melalui pipa East Java Gas Pipeline (EJGP) dan dari PT Pertamina EP ke PT Krakatau Steel melalui pipa Cilimaya-Cilegon. Kedua pipa ini milik PT.Pertamina Gas (Pertagas), anak usaha Pertamina. "Jadi yang berkorban industri midstream, hulu, sama pemerintah, sesuai formula saja. In sharing the pain, sharing the gain seperti yang dibilang Pak Menteri,” ujar Wiratmaja. Dalam Peraturan Menteri 40/ 2016, terdapat delapan industri yang dapat harga gas khusus.

    Namun, harga gas untuk PT Kaltim Parna Industri, PT Kaltim Methanol lndustri, dan PT Pupuk Kalimantan Timur masih sesuai dengan formula harga yang berlaku saat ini. Hal ini lantaran harga gas untuk ketiga industri ini masih cukup rendah, yakni sekitar US$ 2,85 per MMBTU sampai US$ 5,86 per MMBTU. Sementara untuk empat industri  lain, formula harga gasnya diubah. Untuk PT Pupuk Kujang Cikampek, harga gas dari Pertamina EP turun dari US$ 6,62 per MMBTU menjadi US$ 6 per MMBTU dan dari Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) turun menjadi US$ 5,73 per MMBTU.

    Selanjutnya harga gas untuk PT Pupuk Sriwidjaja Palembang dari Pertamina EP turun dari US$ 6,54-6,73 menjadi US$ 6 per MMBTU dan JOB PHE-Talisman dari US$ 6,56 menjadi US$ 6,48 per MMBTU. Selanjutnya, untuk PT Pupuk Iskandar Muda, harga gas dari JOB PHE North Sumatera B dan North Sumatera Offshore turun dari US$ 7,54 menjadi US$ 6 per MMBTU. Harga gas untuk PT Petrokimia Gresik dari Kangean Energy Limited turun US$ 6,28 menjadi US$ 6 per Mmbtu. Terakhir, harga gas PT Krakatau Steel dan PT Pertamina EP turun dari US$ 7,35 menjadi US$ 6 per MMBTU.

    Disinggung harga gas yang masih kisaran US$ 6 per MMBTU, Wiratmaja menyebut hal tersebut telah didiskusikan bersama dengan pembeli gasnya. Walaupun harga ini masih di atas permintaan Kementerian Perindustrian yang hanya sekitar US$ 4 per MMBTU. Dia optimis harga yang sudah ditetapkanakan diterima oleh industri bersangkutan lantaran sudah dibahas bersama. Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Amien Sunaryadi mengatakan, pihaknya akan memfasilitasi amendemen kontrak jual beli gas yang harganya harus disesuaikan ini.

    Pasalnya, amendemen perjanjian jual beli gas (PJBG) juga diamanatkan oleh Peraturan Menteri 40/ 2016. “Yang selesai amendemen PJBG) baru tiga,” kata dia. Total terdapat sepuluh PJBG yang perlu diamendemen. Penurunan harga gas, lanjutnya, memang sedikit mengurangi penerimaan negara. Namun, industri hulu migas juga akan melakukan efisiensi biaya operasi agar harga gas bisa lebih rendah lagi. Efisiensi dilakukan pada proyek migas di masa mendatang, bukan yang sudah berjalan. “Salah satunya depresiasi proyek migas ditangguhkan,” jelas Amien.

    Vice President Corporate Communication Pertamina Wianda Pusponegoro mengatakan, Pertamina mendukung upaya pemerintah menetapkan harga gas yang kompetitif bagi industri maupun konsumen akhir. Harga gas yang kompetitif diharapkan akan meningkatkan volume penyerapan gas sehingga utilisasi pipa-pipa transmisi dan distribusi dapat optimal. “Untuk beberapa area kerja (blok migas) yang menghasilkan gas, sudah kami buatkan skenario harga gas sesuai dengan aturan,” kata dia.

    Furthermore, the price of gas to PT Pupuk Sriwidjaja Palembang from Pertamina EP down from US $ 6.54 to 6.73 to US $ 6 per MMBTU and PHE-JOB Talisman of US $ 6.56 to US $ 6.48 per MMBTU. Furthermore, to PT Pupuk Iskandar Muda, the price of gas from PHE JOB North Sumatra and North Sumatra Offshore B fell from US $ 7.54 to US $ 6 per MMBTU. The price of gas to PT PKG from Kangean Energy Limited fell US $ 6.28 to US $ 6 per Mmbtu. Lastly, the price of gas to PT Krakatau Steel and PT Pertamina EP down from US $ 7.35 to US $ 6 per MMBTU.

    Touched gas prices are still around US $ 6 per MMBTU, Wiratmaja refers to this have been discussed together with the gas purchaser. Although the price is still at the request of the Ministry of Industry which was only about US $ 4 per MMBTU. He is optimistic that the price that has been accepted by the industry concerned ditetapkanakan because already discussed together. Head of the Special Unit of Upstream Oil and Gas (SKK Migas) Amien Sunaryadi said it would facilitate the amendment of a gas sales contract that costs have to be adjusted.

    Because the amendments gas sales agreement (GSA) is also mandated by Regulation 40/2016 "The complete amendment GSA) has three," he said. In total there are ten GSA needs to be amended. The decline in gas prices, he added, was slightly reduced state revenues. However, upstream oil and gas industry will also conduct operating cost efficiency in order to lower gas prices again. Efficiency is done in oil and gas projects in the future, not already running. "One of them suspended depreciation of oil and gas projects," said Amien.

    Vice President Corporate Communications of Pertamina Wianda Pusponegoro said Pertamina support government efforts to establish a competitive gas prices for industry and the end consumer. Competitive gas prices are expected to increase the volume of gas absorption so that the utilization of transmission pipes and distribution can be optimized. "For some of the work area (block oil and gas) that produce ga

IN ENGLISH

January, Industrial Gas Five Prices Dropped $ 1.5 MMBTU

    The price of gas for five fertilizer industry, petrochemical and steel fell to $ 1.5 per MMBTU effective 1 January 2017. This is in accordance with the Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 40 of 2016 on Gas Price For Industry Certain has just been published by the government. Director General of Oil and Gas Ministry of Energy and Mineral l Gusti Nyoman Wiratmaja said the decline in gas prices is obtained by changing the gas pricing formula applicable. If before the price of gas remained pegged, now the price of gas is calculated by a formula that includes the movement of commodity prices of fertilizers, ammonia, and steel.

    However, considering the price of the three commodities are currently very low, the price of gas used is essentially the price. "So the effect is pricenya floor. There is a gas price of US $ 6 per MMBTU, $ 5.8 per MMBTU, and some are around US $ 3 per MMBTU, "he said. The new gas price will rise when the price of urea, ammonia, and steel rose. Wiratmaja Admittedly, the use of this formula is different from the original plan. In accordance with Regulation 40/2015, the price of gas is pressed to reduce the state's share of gas sales revenue. But using the formula, the decline in gas prices is borne jointly by the government and oil and gas producer. So there is no reduction in the percentage of parts of the country. "Not reducing the percentage, but nominally down," he explained.

    Because the new gas pricing formula led to earnings from the sale of gas will be reduced. In the drop in gas prices this time, he calls, only PT Pertamina affected. The reason, of ten contracts for gas sales to the fertilizer industry, petrochemical and steel, oil and gas blocks which became the source managed by Pertamina and aifiliasinya. In this case, Pertamina was asked to make sacrifices. "Half of it is sacrificed Pertamina through efficiency. Pertamina has been invited to the discussion, "said Wiratmaja.

    Not only in the upstream, gas price reduction also cuts freight rates obtained from natural gas. The corresponding regulation 40/2016, which trimmed the rates for gas from Kangean Energy Indonesia Limited to PT PKG via pipeline East Java Gas Pipeline (EJGP) and of PT Pertamina EP PT Krakatau Steel through pipes Cilimaya-Cilegon. Both of these pipes belong PT.Pertamina Gas (Pertagas), a subsidiary of Pertamina. "So who sacrificed industry midstream, upstream, the same government, according to the formula alone. In sharing the pain, share the gain as practically Minister," said Wiratmaja. In Regulation 40/2016, there are eight industries that can be priced specialty gases.

    However, the price of gas to PT Kaltim Parna Industri, PT Kaltim Methanol Industries, and PT Pupuk Kalimantan Timur still in accordance with the pricing formula applicable today. This is because the price of gas for the third industry is still quite low, which is about US $ 2.85 per MMBTU to US $ 5.86 per MMBTU. As for the four other industry, the gas price formula was changed. For PT Pupuk Kujang Cikampek, the price of gas from Pertamina EP down from US $ 6.62 per MMBTU to $ 6 per MMBTU and from Pertamina Hulu Energy Offshore North West Java (PHE ONWJ) fell to US $ 5.73 per MMBTU.

Investor Daily, Page-9,Tuesday, Dec,6,2016

2016 Oil Investment Realization is Estimated to Reach US $ 11.4 Billion

    This investment is mostly used to finance oil and gas production activities, followed by development and exploration. In detail, the costs for the exploitation block are the US $ 10.3 billion and the exploration blocks are US $ 94 million. So the main component of expenditure is for production. 

    He explained that the investment realization was still below the target of US $ 12 billion because the number of several activities carried out had not been as planned. In detail, the realization of exploration well drilling was recorded at only 43 units of the target of 67 units and new development drilling wells of 223 wells out of the target of 245 wells.

Blogger Agus Purnomo in SKK Migas

"Until the end of the year, the possibility of realizing investment is the only US $ 11.4 billion," said Deputy of Financial Control of SKK Migas, Parulian Sihotang.

    The decline in the number of oil and gas activities is the main cause. However, SKK Migas noted that there were 10 new oil and gas production facilities that could be completed in 2016. 

ExxonMobil Cepu Limited (EMCL)

    In detail, Train-B Blok Cepu by ExxonMobil Cepu Limited (EMCL), onshore receiving facility (ORF) Bukit Tua Field by Petronas Carigali Ketapang 2 Limited,

Blogger Agus Purnomo in Petronas Carigali Ketapang

Donggi and Pondok Makmur by PT Pertamina EP Dayung Compression-2 by ConocoPhilips Grissik Ltd, IDD Bangka by Chevron Indonesia Company, North Duri Development Area 13 by PT Chevron Pacific Indonesia, Karendan by Ophir Energy, KRA South by Star Energy Kakap Ltd, and Ario Damar-Sriwijaya Phase 1 by Tropik Pandan Energy.

PT Chevron Pacific Indonesia

    Although the investment is below the plan, SKK Migas is optimistic that it can achieve the oil and gas production and lifting targets in accordance with the 2016 Revised State Budget. Amien explained that as of 30 November, oil production was recorded at 833 thousand BPD and gas 7,966 mmscfd. 

    Meanwhile, the realization of oil lifting was 821.23 thousand BPD and gas 6,643 mmscfd. Based on this realization, SKK Migas estimates that the achievement by the end of the year will exceed the oil target of 820 thousand BPD and gas 6,438 mmscfd. In detail, the estimated oil production is 831.5 thousand BPD and gas 7,945 mmscfd.

    Meanwhile, the outlook for lifting until the end of the year will be the same as the realization this November, namely 2 million barrels of oil equivalent per day from the target of 1.9 million barrels of oil equivalent per day.

"So from production and lifting, we are optimistic that what is set in the 2016 Revised State Budget will be achieved," said Amien.

    This year, SKK Migas has approved 27 development plans / PODs as well as plans of future development / POFD. The entire POD and POFD are estimated to be able to increase oil and gas reserves by 204 million barrels of oil equivalent. From this POD there is also an oil and gas investment plan in the future of up to the US $ 2.85 billion.

"From a total of 27 POD and POFD, the government can receive the US $ 6.55 billion," he said.

    The estimated gross revenue from oil and gas until December 31 will reach the US $ 23.98 billion. This figure includes a cost recovery of US $ 11.47 billion. Net revenue is US $ 12.5 billion, of which the contractor's share in the US $ 3.22 billion and the government is the US $ 9.29 billion.

"This is decreasing from last year," he said.

Investor Daily, Page-9, Tuesday, Dec 6, 2016