Waiting for Uncle Sam's Response

       With the agreement to cut crude oil production to an average of 33.25 million barrels per day (BPD) next year by a number of OPEC members, it is hoped that there will be an improvement in crude oil prices in 2017.

    Some analysts even estimate that the 1.2 million BPD cut in crude oil production will increase prices to more than US$ 50 per barrel on average next year. However, the increase in crude oil prices to this level could also trigger the recovery of unconventional oil production (tight oil) in the United States.

    If this happens, it is not impossible, production cuts will be in vain because the threat of overproduction lurks again. The US Energy Information Administration/EIA also admits that there is a risk of recovery of rights oil in the US if the price of oil exceeds US$ 50 per barrel.

    In the Short-Term Energy Outlook published on Tuesday (12/6/2017) local time, the EIA revealed that in addition to the agreement to cut oil production by OPEC members, a number of non-OPEC oil producers are now also paying attention to holding back or cut production.

    The plan, on Saturday (Dec 12) in Vienna Austria, there will be a meeting between OPEC and non-OPEC to discuss production cuts and non-OPEC countries which are targeted to reach an agreement to cut as much as 600,000 BPD.

"If the production cut deal contributes to raising prices above $50 per barrel in the months ahead, this will prompt a return to increased supply of US tight oil sooner than expected," the EIA report said.

    Based on the report, the price of crude oil reaching the level of US$ 50 per barrel will increase investment by a number of US oil producers, especially those operating in the Permian Basin. 

    In fact, the report also estimates that if crude oil prices can recover by exceeding US$ 50 per barrel, it will boost the supply of US Tight Oil in other regions, not only in the Permian Basin. In addition, if this scenario starts, then non-OPEC oil producers that do not participate in the OPEC production cut plan, will also increase their supply.

    An increase in supply from US tight oil is not impossible. Moreover, US President-elect Donald Trump has a discourse that he wants to implement US energy independence policies and create greater jobs for US citizens. It is undeniable that the return to high production of tight oil, which is characterized by a large number of drilling and lower 48 US states outside Alaska and Hawaii, will require a large workforce.

    However, drilling for the right oil and shale gas using the fracking technique also cannot be separated from the attention of the US public, especially regarding the sustainability of water reserves so resistance appears to be rejected. However, until now there is no certainty as to what kind of policy Donald Trump will take regarding crude oil production and the global community is still waiting until the president-elect is sworn in in January 2017.

Donald Trump

    However, the continued increase in global crude oil supply next year is likely to hold back a number of agreements to increase global oil inventories until 2018. Globally, inventory development next year will average 400,000 BPD.

"Although crude oil production will be ready to enter the market when global oil inventories are at high levels, global economic data shows more positive expectations than before," the report said.

    The EIA report projects that there will be cuts in US crude oil production throughout 2017, though only by 100,000 bpd to 8.8 million bpd. Meanwhile, so far this year, US crude oil production is estimated to reach 8.9 million BPD. Whereas in 2015, US crude oil production reached 9.4 million BPD.

    Meanwhile, OPEC crude oil production is expected to be in the range of 33.2 million BPD next year. Apart from production cuts, there are also a number of problems, such as Nigeria's crude oil supply which is projected to weaken in line with militant attacks on oil infrastructure.

    Not only that but Libya is also projected not to reach an agreement in the short term with the Zintani militants who control the pipeline and transportation of crude oil from their large fields, including El Sharara and El Feel. However, in November, there was an increase in production, although not significantly, which almost reached 600,000 BPD. In November, a number of offshore oil fields in the North Sea Atlantic region such as England and Norway have been completed from the routine maintenance schedule.

    As a result, collective production from the North Sea increased by 100,000 BPD in November. The increase from the North Sea region, in the short term could weaken the price of Brent oil if it is with crude oil from the Middle East.

"With relatively lower shipping costs, weaker Brent oil prices will make crude oil produced from the Atlantic basin more competitive for Asian refineries, which are traditional markets for Middle Eastern oil producers," the report said.

    EIA estimates that the average Brent oil price so far this year will be at the level of US$ 43 per barrel. while the average Brent oil price next year is projected to reach US$ 52 per barrel. Meanwhile, the price of oil on the West Texas Intermediate (WTI) market next year is estimated to be US$ 1 per barrel lower than the price of Brent oil. So, will Trump pump more right oil next year to create more jobs? Or will you participate in pushing up oil prices by holding back production? Let's just wait.

Bisnis Indonesia, Page-16, Thursday, Dec 8, 2016

Kontraktor Minta Perbaikan Syarat Fiskal

    Kontraktor minyak dan gas bumi meminta pemerintah dapat menciptakan kepastian regulasi dan perbaikan syarat-syarat fiskal dalam kegiatan produksi dan eksplorasi migas pada tahun depan guna memperbaiki investasi sektor tersebut. Presiden Indonesian Petroleum Association (IPA) Christina Verchere mengatakan, asosiasi prddusen minyak itu belum bisa memprediksi sampai kapan harga minyak tetap rendah. Menurut perkiraan Wood Mackenzie, bila para anggota organisasi negara pengekspor minyak (OPEC) berkomitmen memangkas produksi minyak 1,2 juta barel per hari (bph), harga minyak akan naik menjadi US$ 55-US$ 60 per barel pada 2017.

    Jika anggota OPEC tak menjalankan komitmen itu, harga minyak berpotensi melemah ke US$ 40 per barel. Untuk menggenjot investasi hulu migas di Indonesia, katanya, pemerintah perlu mengubah persyaratan fiskal dan penghapusan sejumlah faktor penghambat investasi. Menurutnya, perusahaan secara global  melakukan restrukturasi kemampuan investasi dan memilih ulang prioritas investasi. Beberapa proyek yang membutuhkan biaya dan risiko tinggi, katanya, akan menjadi pertimbangan ketika harga minyak rendah.

    Dengan demikian, dia menyebut dua hal seperti kepastian usaha dan persyaratan fiskal (fiscal terms) menjadi akan menentukan nasib industri hulu migas. Pemerintah, memang melakukan sejumlah upaya untuk membuat investasi hulu migas semakin menarik. Namun, hingga saat ini belum terlihat membawa angin segar terhadap industri hulu migas. Sebagai contoh, lelang wilayah kerja yang dilakukan pada pertengahan tahun ini ternyata belum mendapat respons positif dari pelaku usaha. Selain itu, munculnya peraturan baru yang membuat pelaku usaha berpikir ulang apakah investasi yang membutuhkan waktu pengembalian modal yang panjang bisa terjamin.

    Pasalnya, kontrak kerja sama berlaku selama 30 tahun dan diharapkan tak ada perubahan secara mendasar yang bisa mengganggu kestabilan usaha selama kontrak berjalan. Beberapa hal baru muncul seperti penawaran saham partisipasi (paniciparing interest/PI) 10% atas wilayah kerja baru atau yang habis masa kontraknya kepada Badan Usaha Milik Daerah, pengubahan formula harga gas hulu untuk beberapa industri hingga rencana pemerintah menerbitkan beleid guna mengatur kontrak bagi produksi (production sharing contract/PSC) gross split (tanpa cost recovery) yang sedang dibahas secara intens.

    Oleh karena itu, pihaknya menginginkan agar pemerintah dan pelaku usaha bisa berkomunikasi dengan baik agar investasi hulu pulih. Untuk tahun depan, kami tunggu perubahan yang bisa meningkatkan iklim investasi." Realisasi investasi hulu migas ditarget menyentuh US$ 11,4 miliar pada akhir 2016 atau lebih rendah dan target US$12,05 miliar. Padahal, target tersebut telah direvisi dan lebih rendah dan target yang dipatok sebelumnya US$ 17,21 miliar. Deputi Bidang Pengendalian Keuangan SKK Migas Parulian Sihotang mengatakan, target investasi tidak akan tercapai karena masih terdampak rendahnya harga minyak.

IN ENGLISH

The Contractor Ask Repair Fiscal Terms

    Oil and gas contractor asked the government to create regulatory certainty and improved fiscal terms in oil and gas exploration and production activities in the next year in order to improve the sector investment. President of the Indonesian Petroleum Association (IPA) Christina Verchere said the association prddusen oil it could not predict how long oil prices remain low. According to Wood Mackenzie estimates, if the members of the organization of Petroleum Exporting countries (OPEC) is committed to cut oil production of 1.2 million barrels per day (bpd), the oil price will rise to US $ 55-US $ 60 per barrel in 2017.

    If OPEC members do not carry out this commitment, the oil price will weaken to US $ 40 per barrel. To boost the upstream oil and gas investment in Indonesia, he said, the government needs to change the fiscal requirements and the elimination of a number of factors inhibiting investment. According to him, the company's global investment capabilities undertake restructuring and re-select investment priorities. Several projects are costly and high risk, he said, will be taken into consideration when oil prices are low.

    Thus, he mentioned two things like business certainty and fiscal terms (the fiscal terms) to be will determine the fate of upstream oil and gas industry. The government, indeed made efforts to make oil and gas upstream investments more attractive. However, until now this has not been seen to bring fresh air to the upstream oil and gas industry. For example, the auction area of ​​work done in the mid of this year was not yet received a positive response from businesses. In addition, the emergence of new rules that make businesses rethink whether the investments require long payback time can be guaranteed.

    Because the cooperation contract is valid for 30 years and is expected no fundamental changes that could destabilize the business during the contract runs. Some new things appear like deals participation shares (paniciparing interest / PI) 10% of the working area of ​​new or out of contract to the Regional Owned Enterprises, changing the pricing formula of gas upstream for some of the industry to the government's plan to publish a regulation to govern the contract for production ( production sharing contract / PSC) gross split (without cost recovery) is being discussed intensely.

    Therefore, it wants the government and businesses can communicate well in order to recover the investment upstream. For next year, we are waiting for changes that could improve the investment climate. "The realization of upstream oil and gas investment is targeted to reach US $ 11.4 billion at the end of 2016 or lower and the target of US $ 12.05 billion. In fact, the target has been revised and the lower and previously set target of US $ 17.21 billion. Deputy Financial Control Parulian Sitohang SKK Migas said the investment targets will not be achieved because it is still affected by low oil prices.

Bisnis Indonesia, Page-30,Thursday, Dec,8,2016

Borong 7 PROPER Emas, Pertamina Buktikan Komitmen Pengelolaan Lingkungan

    Ketersediaan listrik belum sepenuhnya dinikmati warga di seluruh wilayah Indonesia. Warga Desa Tampur Paloh di Kecamatan Simpang Jernih, Aceh Timur termasuk Salah satunya. Desa Tampur Paloh merupakan salah satu desa yang berada di sekitar wilayah operasi PT Pertamina EP Asset 1 Field Rantau, Aceh; Lokasi desa yang terisolasi membuat warga harus membiasakan hidup tanpa listrik. Sarana pendidikan berupa gedung sekolah juga masih minim. Sehari-hari, mayoritas penduduk setempat menggantungkan mata pencaharian pada kegiatan penebangan pohon. Kondisi ini menggerakkan Naufal Raziq untuk berinovasi demi memperbaiki keadaan.

    Pelajar MTSN Kecamatan Langsa Lama, Kota Langsa ini memanfaatkan pohon kedondong sebagai sumber energi listrik. Dengan dukungan PT Pertamina EP Asset 1 Field Rantau, pengembangan inovasi ini dibarengi gerakan menanam 1.100 pohon energi yang menerangi 30 rumah dan 7 fasilitas umum. DesaTampur Paloh juga makin berkembang dengan dibangunnya Madrasah Aliyah (High School Islamic) sehingga anak-anak tidak perlu lagi menempuh jarak puluhan kilometer untuk menikmati pendidikan. Sementara di pesisir utara Indramayu, Pertamina Refinery Unit VI Balongan, Jawa Barat berupaya menyelamatkan kawasan pantai yang tergerus abrasi dengan melakukan konservasi mangrove.

    Edukasi, dilakukan kepada masyarakat dengan menjadikan kawasan konservasi mangrove sebagai kawasan pembelajaran. Pengayaan vegetasi dilakukan melalui pembangunan arboretum mangrove yang dikembangkan menjadi ekowisata. Kepedulian tersebut telah membawa PT Pertamina EP Asset 1 Field Rantau dan Pertamina Refinery Unit VI Balongan meraih predikat Emas dalam Program Penilaian Peringkat Kinerja Perusahaan (PROPER) periode 2015-2016 yang di laksanakan Kementerian Lingkungan Hidup dan Kehutanan. Dua predikat ini melengkapi keberhasilan PT Pertamina memborong tujuh PROPER Emas dan 71 PROPER Hijau.

    Selain Refinery Unit VI Balongan dan PT Pertamina EP Asset 1 Field Rantau, unit usaha lain yang meraih PROPER Emas adalah PT Pertamina Hulu Energi West Madura Offshore (WMO) Jawa Timur, Badak NGL - Kalimantan Timur, JOB Pertamina Talisman Jambi Merang - Jambi, Marketing Operation Region IV TBBM Rewulu - DIY, dan PT Pertamina Geothermal Energy Area Kamojang - Jawa Barat. Prestasi yang ditunjukkan Pertamina sangat diapresiasi oleh Wakil Presiden RI, Jusuf Kalla.

    Keberhasilan tersebut menjadi bukti komitmen dan kedisiplinan Badan Usaha Milik Negara (BUMN), khususnya Pertamina, dalam pengelolaan lingkungan hidup. ”Tujuh predikat Emas yang diraih Pertamina Serta tiga predikat Emas lainnya yang diraih BUMN membuktikan bahwa BUMN lebih disiplin dibanding perusahaan swasta,” kata Jusuf Kalla ketika menyerahkan penghargaan PROPER 2016 di Istana Wakil Presiden, Rabu (7/ 12). Direktur Utama PT Pertamina, Dwi Soetjipto, menambahkan tujuh PROPER Emas yang diperoleh merupakan pencapaian yang sangat membanggakan bagi Pertamina. Prestasi ini merupakan pengakuan atas hasil nyata dari green action yang diterapkan di unit usaha Pertamina. ”Pertamina memiliki komitmen dan perhatian yang tinggi akan kelestarian lingkungan dan kesejahteraan masyarakat di sekitar wilayah operasi perusahaan,” katanya.

IN ENGLISH

Wins 7 Gold PROPER , Pertamina Prove Commitment to Environmental Stewardship

    Availability of electricity have not fully enjoyed by citizens in all regions of Indonesia. Villagers intervened Paloh in Simpang Clear, East Aceh including One. Paloh intervened village is one of the villages located around the area of ​​operations of PT Pertamina EP Field Rantau Asset 1, Aceh; Isolated rural location makes people have to get used to live without electricity. Educational facilities such as school buildings is still minimal. Everyday, the majority of locals livelihoods depend on felling trees. This condition stir Naufal Raziq to innovate in order to improve the situation.

    Student MTSN District of Lama Langsa, Langsa utilizes amra tree as a source of electrical energy. With the support of PT Pertamina EP Field Rantau Asset 1, the development of this innovation coupled movement to plant 1,100 trees that illuminate energy 30 houses and 7 public facilities. DesaTampur Paloh is also growing with the construction of Madrasah Aliyah (Islamic High School) so that children no longer need to travel a distance of tens of kilometers to enjoy education. While on the north coast of Indramayu, Pertamina Refinery Unit VI Balongan, West Java trying to save the coastal areas abrasion by mangrove conservation.

    Education, done to society by making the mangrove conservation area as a learning area. Enrichment vegetation is done through the development of mangrove arboretum developed into eco-tourism. Concern has brought PT Pertamina EP Field Rantau Asset 1 and Pertamina Refinery Unit VI Balongan was awarded Gold in the Program Performance Rating (PROPER) in the period 2015 to 2016 which carried the Ministry of Environment and Forestry. Two predicate complements the success of PT Pertamina bought seven gold and 71 PROPER PROPER Green.

    Besides Refinery Unit VI Balongan and PT Pertamina EP Asset 1 Field Rantau, other business units that achieve PROPER Gold is PT Pertamina Hulu Energi West Madura Offshore (WMO) in East Java, Badak NGL - East Kalimantan, JOB Pertamina Talisman Jambi Merang - Jambi, Marketing Operation Region IV TBBM Rewulu - DIY, and PT Pertamina Geothermal Energy Kamojang Area - West Java. Achievement shown Pertamina highly appreciated by the Vice President, Jusuf Kalla.

    The success is a proof of the commitment and discipline of State-Owned Enterprises (SOEs), especially Pertamina, in environmental management. "Seven predicate achieved Gold Pertamina well as three other gold predicate achieved proves that state-owned enterprises SOEs are more disciplined than the private companies," Kalla said when handing PROPER award in 2016 at the Vice President, on Wednesday (7/12). President Director of PT Pertamina, Soetjipto, adding seven PROPER Gold acquired a very proud achievement for Pertamina. This achievement is recognition of the tangible results of green actions implemented in the business units Pertamina. "Pertamina has a high commitment and concern of environmental sustainability and the well-being of communities in which the company's operations," he said.

Kompas, Page-16,Thursday, Dec,8,2016

Produksi Minyak Tahun 2017 Berharap dari Cepu

    Pemerintah menargetkan, produksi minyak pada 2017 mencapai 815.000 barel per hari atau barel oil per day (bopd) adapun produksi minyak tahun ini bisa mencapai 830.000 bph. Hal itu bisa tercapai berkat produksi di lapangan Banyu Urip yang bisa dipacu hingga mencapai 200.000 bph tahun depan. Sementara untuk produksi gas ditargetkan mencapai 6.440 mmscfd tahun depan. Produksi gas tersebut berasal dari produksi gas Blok Mahakam, blok Jabung, dan Jangkrik. "Kami optimistis, tahun 2016 target lifting tercapai, biarpun pas-pasan," kata Amien Sunaryadi, Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

    Untuk mencapai hal tersebut, menurut Amien, kontraktor migas harus melakukan sejumlah kegiatan di tahun depan agar produksi naik. Seperti menentukan skenario produksi sesuai kaidah yang benar berdasarkan kemampuan reservoir. Sehingga didapatkan tingkat pengurasan migas optimal dari melakukan penentuan skala prioritas terhadap rencana kerja dari pemboran, workover, dan well service berdasarkan produksi dan keekonomian. Board of Director Indonesia Petroleum Association (IPA) Tenny Wibowo menyatakan, pemerintah sudah melakukan perubahan positif untuk menjaga iklim investasi. Tapi tidak semua perubahan membawa dampak positif, apalagi jika perubahan dilakukan di tengah-tengah kontrak yang tengah berjalan. Perubahan-perubahan lain itu yang terbaik tidak memotong di tengah jalan

IN ENGLISH

Oil production from Cepu Wishing Year 2017

    The government is targeting oil production in 2017 reached 815 000 barrels per day, or barrels of oil per day (bopd) while oil production this year could reach 830,000 bpd. It can be achieved thanks to production at the Banyu Urip field that can be driven up to 200,000 bpd next year. As for gas production is expected to reach 6,440 MMSCFD next year. The gas production comes from gas production Mahakam Block, Jabung block, and crickets. "We are optimistic that the 2016 target of lifting is reached, even if just barely," said Amien Sunaryadi, Head of the Special Unit of Upstream Oil and Gas (SKK Migas).

    To achieve this, according to Amien, oil and gas contractors must undertake a number of activities in the next year so that production rose. As production scenarios according to the rules determining the correct based on the ability of the reservoir. So we get the optimal level of oil and gas depletion of conduct setting priorities of the work plan of the drilling, workover and well service based on the production and economics. Board of Director Indonesian Petroleum Association (IPA) WiboWo Tenny said the government is already making a positive change to keep the investment climate. But not all the changes have a positive impact, especially if changes are made in the midst of ongoing contracts. Other changes it is best not to cut in the middle of the road

Kontan, Page-14,Thursday, Dec,8,2016

Oil Prices have the opportunity to go up

Minister of Finance (Menkeu) Sri Mulyani said the opportunity for an increase in world oil prices after the Organization of the Petroleum Exporting Countries (OPEC) decision to cut production is still in the range of 50 percent. Sri Mulyani projected that even if there was an increase in oil prices, it would not have occurred significantly. 

    Sri explained, after OPEC's decision to cut crude oil production by 1.2 million barrels per day to 32.5 million barrels per day (bpd), questions will arise, whether from the demand or demand side, it will match the cuts made.

The former managing director of the World Bank said that with the adjustment of the European economic climate due to Brexit and the referendum in Italy, the demand for oil from European countries could change. Not to mention, the economic policy of the United States (US) under Donald Trump. This means that production cuts coupled with low demand have not been able to significantly boost oil prices.

In general, Sri believes that the Indonesian oil price assumption (ICP) set in the 2017 State Budget (APBN) of US $ 45 per barrel is still relevant despite OPEC's production cuts.

Moreover, Indonesia has chosen to temporarily freeze its membership because it is impossible for Indonesia to participate in cutting production. The Coordinating Minister for the Economy Darmin Nasution said that OPEC's steps to cut production still had to be seen on its effectiveness. 

    The risk from price increases that could occur is of course anticipated by the Government of Indonesia. Bank Mandiri Chief Economist Anton Gunawan added that the potential for an increase in world oil prices still depends on the dynamics of the demand side.

The reason is that US shale gas production continues to overshadow world oil prices, which are starting to rise. He said that when the oil price starts to reach 70 US dollars per barrel, shale gas production may be increased and the oil price will be on hold again. 

    The net increase in world oil prices has an effect on the State Revenue and Expenditure Budget (APBN), especially if the government is consistent with not general subsidies, it will not be affected by the spending side. Mostly in the form of direct subsidies. Hence, with this, there is a windfall game. The only effect might be that if the government increases the price of fuel, it will have an effect on inflation.

Republika, Page-13, Wednesday, Dec 7, 2016

Efisiensi Modal lnvestasi Pertamina

    Dominasi pengelolaan hulu migas oleh Pertamina hanya 20%, jauh di bawah NOC lain, seperti Petrobras hingga 81%, Petronas 47%, dan Statoil 58%. Upaya efisiensi merupakan sumber kekuatan PT Pertamina untuk melakukan investasi dalam pembangunan infrastruktur, khususnya kilang. Peningkatan daya beli Pertamina dalam pengadaan bahan bakar minyak tanpa menggunakan letter of credit (L/C), membuat Pertamina memiliki kemampuan keuangan yang besar sehingga dapat menghapus pinjaman jangka pendek pada November 2016 dari semula US$ 5 miliar pada 2015. Kas Pertamina juga naik dari US$ 1 miliar menjadi US$ 5,6 miliar.

    Dari situ nanti kami akan masuk ke investasi,” ujar Direktur Utama PT Pertamina Dwi Soetjipto. Pertamina merencanakan investasi Rp 1.000 triliun dalam 10 tahun ke depan untuk pembangunan kilang, infrastruktur gas, pengolahan, dan pemasaran, dengan menggandeng swasta. Investasi pembangunan infrastruktur Pertamina juga harus didukung reformasi UU migas. Saat ini cadangan migas negara belum di leverage menjadi aset yang akan berpengaruh pada kekuatan ekonomi lebih besar.

    Di sanalah nanti, dari sisi laba dan aset barangkali kita bisa mengalahkan perusahaan besar negara tetangga,” tutur Dwi. Dalam pandangan pengamat energi Universitas Gajah Mada, Fahmy Radhi, efisiensi menjadi langkah awal Pertamina untuk menjadi perusahaan energi kelas dunia. Itu modal Pertamina untuk akfif dalam ekspansi investasi di luar negeri. Tahap awal dengan akuisisi lahan migas yang sudah berproduksi. Kedua, Pertamina diberi keistimewaan menguasai dan mengusahakan lahan migas dalam negeri,” kata Fahmy.

    Selain itu, Pertamina bisa ditunjuk pemerintah untuk menguasai aset melalui monetasi. Hal itu bertujuan menaikkan international leverage Pertamina. “Selain itu, meminimkan intervensi berlebihan dalam organisasi, penambahan direksi, juga dalam pengambilan keputusan corporate actions,” katanya. Hal terpenting lainnya ialah pemberian keleluasaan kepada Pertamina untuk memanfaatkan keuntungan mereka. Tidak boleh lagi menjadi ‘sapi perah’ dan tumpuan penyetor dividen. Berikan kesempatan kepada Pertamina menggunakan dividen untuk melakukan ekspansi, terutama ekspansi di luar negeri,” ujarnya.

    Prioritas kelola hulu Pemberian keistimewaan itu wajar untuk menjadikan Pertamina sebagai BUMN energi terintegrasi dan berkelas dunia karena dominasi pengelolaan hulu migas oleh Pertamina hanya 20%, di bawah perusahaan minyak nasional (NOC) negara lain yang memiliki porsi produksi domestik besar, seperti Brazil 81%, Aljazair 78%, Norwegia 58%, dan Malaysia 47%. “Akan lebih bagus dalam revisi UU 22/2001 (UU Migas), Pertamina diberi semua privilage, tapi tidak menjadikannya sebagai regulator,” ujar anggota Komisi VII DPR, Satya W Yudha. Pemberian prioritas itu, misalnya, terkait dengan mendapat penawaran pertama untuk setiap kontrak blok migas yang akan habis (expired). “Bisa juga semua blok potensial diberikan ke Pertamina, sisanya diberikan kepada kontraktor bagi hasil (PSC) lain.

IN ENGLISH

Efficiency of Capital Investments Pertamina

    The dominance of the management of Pertamina upstream oil and gas by only 20%, far below other NOCs, such as Petrobras up to 81%, Petronas 47% and Statoil 58%. Efforts efficiency is a source of strength PT Pertamina to invest in development of infrastructure, especially refineries. Pertamina increased purchasing power in the procurement of fuel oil without using letters of credit (L / C), making Pertamina has huge financial capabilities so as to remove the short-term loan in November 2016 from US $ 5 billion in 2015. Cash Pertamina also rose from US $ 1 billion to $ 5.6 billion.

    From there we'll go into investment, "said President Director of PT Pertamina Dwi Soetjipto. Pertamina plans to invest Rp 1.000 trillion in the next 10 years for the construction of refineries, gas infrastructure, processing, and marketing, by cooperating with the private sector. Pertamina infrastructure development investment must also be supported reform of the oil and gas law. Currently oil and gas reserves in the country has not been leveraged into an asset that will affect the greater economic power.

    It was there that day, in terms of income and assets maybe we could beat the big companies neighboring countries, "said Dwi. In the view of observers energy Gajah Mada University, Fahmy Radhi, efficiency becomes the first step Pertamina to become a world-class energy company. It Pertamina's capital investment in the expansion akfif abroad. The initial stage of the acquisition of oil and gas fields already in production. Second, Pertamina was given the privilege to master and exploit oil and gas fields in the country, "said Fahmy.

    In addition, Pertamina could be appointed by the government to control assets through monetization. It aims to raise international leverage Pertamina. "In addition, to minimize excessive intervention in the organization, the addition of directors, also in decision-making corporate actions," he said. Another important thing is the provision of flexibility to Pertamina to exploit their advantage. Should no longer be a 'cash cow' and support the depositor dividends. Provide the opportunity for Pertamina to use dividends to expand, particularly in overseas expansion, "he said.

    Priority manage upstream Granting privileges was reasonable to make Pertamina as a state integrated energy and world-class because of the dominance of the management of upstream oil and gas Pertamina only 20%, below the national oil company (NOC) of other countries that have a portion of domestic production of large, such as Brazil 81%, Algeria 78%, Norway 58%, and Malaysia 47%. "It would be great in the revision of Law 22/2001 (Oil and Gas Law), Pertamina was given all the privilage, but did not make it as a regulator," said a member of House Commission VII, Satya W Yudha. Giving priority, for example, is associated with the received first offer for each contract block of oil and gas will run out (expired). "It could also be given all potential blocks to Pertamina, the rest is given to the contractor for the results (PSC) to another.

Media Indonesia, Page-19,Wednesday, Dec,7,2016

Lima Industri Nikmati Pemotongan Harga Gas

    Kebijakan diskon harga gas untuk industri ”'akhirnya dimulai. Berdasarkan Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 40 Tahun 2016, ada lima perusahaan dari industri pupuk, petrokimia dan baja, yang bakal mendapat diskon harga gas. DirekturJenderal Anggaan Kementerian Keuangan, Askolani, mengatakan kebijakan harga gas ini sama sekali tidak mengganggu penerimaan negara bukan pajak (PNBP) sektor minyak dan gas bumi. Tidak ada (pengurangan PNBP).

    Sudah diputuskan pemerintah,"katanya. Lima perusahaan yang mendapat pemotongan harga gas adalah PT Pupuk Kujang Cikampek, yang mendapat gas seharga US$ 6,03-6,05 per MMBTU, dari harga sebelumnya US$ 5,73-6,62 per MMBTU; PT Pupuk Sriwidjaja Palembang dari US$ 6,56-6,73 per MMBTU menjadi US$ 6,03-6,48 per MMBTU; dan PT Pupuk Iskandar Muda, yang memperoleh gas seharga US$ 6,3 per MMBTU, dari harga sebelumnya, US$ 7,54 per MMBTU. Pabrik baja yang mendapat gas murah adalah PT Krakatau Steel dari PT Pertamina EP sebesar US$ 6,15 per MMBTU dari harga sebelumnya, US$ 7,35. per MMBTU.

    Sedangkan harga gas yang didiskon untuk PT Petrokimia Gresik sebesar US$ 6 per MMBTU dari harga sebelumnya, US$ 6,28 per MMBTU. Gas berasal dari Kangean Energy Indonesia Ltd. Regulasi tersebut diteken Menteri Energi Ignasius Jonan pada akhir November lalu. Harga ini rencananya berlaku mulai 1 Januari 2017. “Penurunan harga gas diberlakukan untuk tiga sektor industri lebih dulu,” kata Jonan, akhir November lalu.

    Setelah harga itu ditetapkan, Menteri Energi menugasi Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) melaksanakan amendemen perjanjian jual-beli gas bumi serta dokumen administrasi lainnya. Kepala SKK Migas Amien Sunaryadi menjamin kontrak-kontrak gas terkait bakal segera diamendemen. Amendemen belum karena peraturan menterinya baru keluar,"ucap Amien. Berdasarkan Peraturan Presiden Nomor 40 Tahun 2016 tentang penetapan harga gas bumi, masih ada empat sektor industri yang belum mendapat diskon, yaitu oleochemical, keramik, kaca, dan sarung, tangan karet.

    Amien mengatakan pihaknya masih mencari komponen harga yang berpeluang dipangkas. Salah satunya memangkas biaya operasi penyedotan gas ataupun penangguhan depresiasi fasilitas migas. SKK Migas merencanakan perbaikan sistem lelang supaya barang dan jasa yang diperoleh lebih murah. Amien mengatakan upaya memangkas penerimaan negara merupakan salah satu cara efektif untuk memangkas harga. SKK Migas sudah melakukan simulasi harga gas hasil pemangkasan bagian migas negara ataupun pajak penghasilan (PPh). Namun usul ini belum disetujui Menteri Keuangan Sri Mulyani Indrawati.

    Direktur Jenderal Minyak dan Gas Bumi, I Gusti Nyoman Wiratmaja, mengatakan pemangkasan pajak dan bagian migas berpeluang menurunkan harga US$ 0,94-2,11 per MMBTU. Risikonya, negara bakal kehilangan pendapatan US$ 544 juta -1,26 miliar per tahun. Anggota Dewan Energi Nasional, Andang Bachtiar, meminta pemerintah tidak terburu-buru memberikan diskon gas. Pengurangan harga seharusnya ditujukan bagi industri yang sudah terbukti menghasilkan nilai tambah. “Industri juga harus transparan. Harus sharing the pain.

IN ENGLISH

Five Industry Experience Cutting Gas Prices

    Policy discount gas prices for industry '' has finally begun. Based on the Regulation of the Minister of Energy and Mineral Resources No. 40 of 2016, there were five companies of the fertilizer industry, petrochemical and steel, which will get discounts on the price of gas. Anggaan the Director General of the Ministry of Finance, Askolani, said gas pricing policy is in no way interfere with non-tax revenues (non-tax) of oil and gas sector. No (reduction of non-tax revenues).

    Already the government decides, "he said. The five companies receiving gas price cut is PT Pupuk Kujang Cikampek, which gets gas at US $ 6.03 to 6.05 per MMBTU, from the previous price of US $ 5.73 to 6.62 per MMBTU ; PT Pupuk Sriwidjaja Palembang from US $ 6.56 to 6.73 per MMBTU to $ 6.03 to 6.48 per MMBTU; and PT Pupuk Iskandar Muda, who obtain gas at US $ 6.3 per MMBTU, priced previously, US $ 7.54 per MMBTU. the steel mills who get cheap gas is PT Krakatau steel of PT Pertamina EP amounted to US $ 6.15 per MMBTU from the previous price, US $ 7.35, per MMBTU.

    While gas prices are discounted for PT PKG, $ 6 per MMBTU from the previous price, US $ 6.28 per MMBTU. Gas comes from Kangean Energy Indonesia Ltd. The regulation was signed by Energy Minister Ignatius Jonan at the end of November. This price plans effective January 1, 2017. "The decline in gas prices imposed for the first three industrial sectors," said Jonan, last November.

    Once the price was established, the Minister of Energy assigns Special Unit of Upstream Oil and Gas (SKK Migas) to implement amendments to the contract of sale of natural gas and other administrative documents. SKK Migas head Amien Sunaryadi guarantee contracts associated gas would soon be amended. Amendment not because the new ministers rule out, "said Amien. Based on Presidential Regulation No. 40 Year 2016 concerning the pricing of natural gas, there are still four industrial sectors that have not got a discount, ie oleochemical, ceramics, glass, and gloves, rubber gloves.

    Amien said it is still looking for component prices likely to be cut. One of them cut the operating costs of gas siphoning oil and gas facilities or deferral of depreciation. SKK Migas planning improvements auction system so that goods and services obtained cheaper. Amien said efforts to cut state revenue is one effective way to cut the price. SKK Migas has done a simulation result of gas prices and gas trimming or state income tax (VAT). However, this proposal has not been approved by the Minister of Finance Sri Mulyani Indrawati.

    Director General of Oil and Gas, I Gusti Nyoman Wiratmaja, said the tax cuts and parts of the oil and gas likely to lower the price of US $ 0.94 to 2.11 per MMBTU. The risk, the state would lose revenue of US $ 544 million -1.26 billion per year. Members of the National Energy Board, Andang Bachtiar, asked the government not to rush give gas discounts. Price reduction should be for the industry which has been proven to generate added value. "The industry should also be transparent. Must share the pain.

Koran Tempo, Page-14,Wednesday, Dec,7,2016

Moratorium Kontrak Blok Masela Belum Final

    Direktur Pembinaan Usaha Hulu Migas Direktorat Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral, Tunggal, mengatakan pemerintah belum memberikan keputusan atas permintaan moratorium kontrak yang diajukan kontraktor Blok Masela, Inpex Corporation Limited. Alasannya, sampai saat ini Inpex belum mengajukan Studi pre-feed sebagai bekal penyusunan rencana pengembangan (plan of development/POD) gas Masela.

    Tunggal mengungkapkan, Studi pre-feed nantinya dilakukan Inpex dengan pengawasan langsung oleh Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas (SKK Migas). Namun, sebelum studi ini dimulai, pihaknya harus memastikan proyek gas Masela bisa menguntungkan pemerintah dan kontraktor “Syarat-syaratnya belum bisa saya jelaskan,” ujar Tunggal. Sebelumnya, Menteri Koordinator Kemaritiman Luhut Binsar Pandjaitan menargetkan dokumen POD bisa rampung tahun depan.

    Dengan begitu, keputusan akhir investasi (final invesment decision) bisa keluar pada 2019. Awal tahun lalu, pemerintah menolak rencana Inpex mengembangkan blok melalui kilang terapung (offshore). Presiden Joko Widodo menginginkan gas diolah melalui kilang darat (onshore). Juru bicara Inpex, Usman Slamet, menyatakan optimistis pemerintah bakal memberikan keputusan untuk meningkatkan skala keekonomian proyek gas Lapangan Abadi Masela.

    Ihwal penolakan pemerintah atas permintaan moratorium kontrak selama 10 tahun, Usman menolak berkomentar. Alasannya, hingga kini Inpex belum mendapat keputusan dari pemerintah. “Sejauh ini, kami terus bertemu dengan Kementerian Energi dan SKK Migas membahas kondisi yang dibutuhkan,” ujarnya. Menteri Energi dan Sumber Daya Mineral Ignasius Jonan menyebutkan, pemerintah masih menimbang permintaan moratorium kontrak Inpex. Boleh saja meminta 10 tahun, minta 50 tahun juga boleh, masih dihitung, kata Jonan.

IN ENGLISH

Moratorium Contract Masela Not Final

    Director of Upstream Oil and Gas Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tunggal, said the government has yet to give a decision on the request moratorium proposed contract contractor Masela, Inpex Corporation Limited. The reason, until now Inpex has not submitted a pre-feed studies as a provision for the preparation of the development plan (plan of development / POD) Masela gas.

    Revealed a single, pre-feed studies will be done Inpex with direct supervision by the Special Unit of Upstream Oil and Gas (SKK Migas). However, before this study started, it must ensure Masela gas project could benefit the government and the contractor "The requirements have not been able to explain," said Son. Earlier, Coordinating Minister maritime Luhut Binsar Pandjaitan targeting POD document could be completed next year.

    Thus, a final investment decision (final investment as decision) could come out in 2019. Early last year, the government refused Inpex plans to develop a block through an offshore plant (offshore). President Joko Widodo wants gas is processed through the refinery land (onshore). Inpex spokesman, Usman Slamet, expressed optimism the government will leave the decision to increase economies of scale Abadi field Masela gas project.

    About the government's refusal on request moratorium contract for 10 years, Usman declined to comment. The reason, until now Inpex has not received a decision from the government. "So far, we continued to meet with the Ministry of Energy and Oil and Gas SKK discuss the necessary conditions," he said. Minister of Energy and Mineral Resources Ignatius Jonan said the government is still considering the request moratorium Inpex contract. It's okay to ask for 10 years, asked for 50 years may also still be calculated, said Jonan.

Koran Tempo, Page-5,Wednesday, Dec,7,2016

Gross - Split Scheme Still Bone of Contention

    The government has yet to bring the House of Representatives to terms over its plan to replace the cost recovery scheme for the upstream oil and gas industry with the so-called gross-split sliding scale. Under the cost recovery scheme, which was initially applied in 2010, the government is forced to reimburse various production costs to contractors with a vast range of variables such as the purchase of heavy equipment and enhanced oil recovery (EOR) to ramp up production.

    Meanwhile, the gross-split sliding scale will let contractors decide by themselves about how they operate with no reimbursement scheme and just straightly split production with the government at the end of the road. “However, We must be very careful as the gross-split scheme could make the government lose its entire grip as contractors will have greater freedom inltheir operations. It means we will no longer be able to intervene in terms of the management of the country’s natural resources,” Satya Widya Yudha, a member of House Commission VII overseeing energy, said.

    Satya said such a mechanism would contradict Article 33 of the Constitution, which mandates state control over all natural resources. Hence, the government should not hastily implement the gross-split scheme just to attract more investors to the country he added. So, it needs to be clear first. How much income can the country actually get from the new scheme? ls it really that profitable for us in the long run?” Satya went on. Commission VII deputy chairman Mulyadi also saw eye-to-eye with Satya.

    He even called on the government to test the gross-split scheme with one project first, before fully implementing it in the future. Last year, the government was forced to pay out $13.9 billion for cost recovery exceeding- the $12.86 billion in non-tax revenue obtained from the sector. Bisman Bhaktiar, the executive director of the Center for Energy and Mining Law (Pushep), said the cost recovery scheme, indeed, had been seen as unattractive for investors, as the split ratio of government to contractor is 85:15 for oil and 70:30 for gas.

    Hence, he said there had been some allegations that contractors could mark up their cost recovery report to get a better result in their top lines. According to the Supreme Audit Agency (BPK) report, the contractors marked up cost recovery by Rp 3.9 trillion (US$293 million) last year, by adding many variables such as expatriation costs for foreign employees, thus reducing state revenue. “So the real problem is in the control and supervision, while the gross-split scheme, on the contrary, will reduce the government’s ability to oversee such matters,” Bisman said.

    Meanwhile, Energy and Mineral Resources Deputy Minister Arcandra Tahar disagreed with such criticism as he said all projects had to be observed case by case and the gross split scheme would only bring more efficiency for all oil and gas cooperation contract holders (KKKS). Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Amien Sunaryadi confirmed the gross-split scheme would be first implemented in the extension of production sharing contract (PSC) for Offshore Northwest Java (ONWJ).

IN INDONESIAN

Skema Gross - Split  Masih Jadi Rebutan

    Pemerintah belum membawa DPR untuk berdamai atas rencana untuk mengganti skema cost recovery untuk industri minyak dan gas hulu dengan apa yang disebut skala gross-split geser. Di bawah skema cost recovery, yang awalnya diterapkan pada tahun 2010, pemerintah dipaksa untuk mengganti berbagai biaya produksi untuk kontraktor dengan berbagai macam variabel seperti pembelian alat berat dan enhanced oil recovery (EOR) untuk meningkatkan produksi.

    Sementara itu, gross-split skala geser akan membiarkan kontraktor memutuskan sendiri tentang bagaimana mereka beroperasi tanpa skema penggantian dan hanya lurus membagi produksi dengan pemerintah di ujung jalan. "Namun, kita harus sangat berhati-hati sebagai skema gross-split bisa membuat pemerintah kehilangan seluruh grip sebagai kontraktor akan memiliki kebebasan yang lebih besar inltheir operasi. Artinya kita tidak akan lagi dapat mengintervensi dalam hal pengelolaan sumber daya alam negara itu, "kata Satya Widya Yudha, anggota Komisi VII DPR yang membawahi bidang energi,.

    Satya mengatakan mekanisme tersebut akan bertentangan Pasal 33 dari Konstitusi, yang mengamanatkan penguasaan negara atas semua sumber daya alam. Oleh karena itu, pemerintah seharusnya tidak buru-buru menerapkan skema gross-split hanya untuk menarik lebih banyak investor ke negara tambahnya. Jadi, itu harus jelas dulu. Berapa banyak pendapatan bisa negara benar-benar mendapatkan dari skema baru? ls itu benar-benar menguntungkan bagi kita dalam jangka panjang? "Satya melanjutkan. Komisi VII wakil ketua Mulyadi juga melihat mata ke mata dengan Satya.

    Dia bahkan meminta pemerintah untuk menguji skema gross-split dengan satu proyek pertama, sebelum sepenuhnya menerapkan itu di masa depan. Tahun lalu, pemerintah dipaksa untuk membayar $ 13.900.000.000 untuk cost recovery exceeding- yang $ 12.860.000.000 pendapatan non-pajak yang diperoleh dari sektor ini. Bisman Bhaktiar, direktur eksekutif dari Pusat Energi dan Pertambangan Hukum (Pushep), mengatakan skema cost recovery, memang, telah dipandang sebagai tidak menarik bagi investor, sebagai rasio pemecahan pemerintah untuk kontraktor adalah 85:15 untuk minyak dan 70 : 30 untuk gas.

    Oleh karena itu, ia mengatakan ada beberapa tuduhan bahwa kontraktor bisa mark up laporan pemulihan biaya mereka untuk mendapatkan hasil yang lebih baik di baris atas mereka. Menurut laporan Badan Pemeriksa Keuangan (BPK), kontraktor ditandai cost recovery sebesar Rp 3,9 triliun (US $ 293.000.000) tahun lalu, dengan menambahkan banyak variabel seperti biaya pengusiran bagi karyawan asing, sehingga mengurangi penerimaan negara. "Jadi masalah sebenarnya adalah dalam kontrol dan pengawasan, sedangkan skema gross-split, sebaliknya, akan mengurangi kemampuan pemerintah untuk mengawasi hal-hal tersebut," kata Bisman.

    Sementara itu, Energi dan Sumber Daya Mineral Wakil Menteri Arcandra Tahar tidak setuju dengan kritik seperti dia mengatakan semua proyek harus diamati kasus per kasus dan skema perpecahan kotor hanya akan membawa efisiensi lebih untuk semua pemegang kontrak minyak dan kerjasama gas (KKKS). Hulu Minyak dan Gas Bumi Peraturan Task Force Khusus (SKKMigas) kepala Amien Sunaryadi dikonfirmasi skema gross-split akan diterapkan pertama kali pada perpanjangan bagi hasil kontrak (PSC) untuk Offshore Northwest Java (ONWJ).

Jakarta Post, Page-13,Wednesday, Dec,7,2016

PSC East Natuna Diteken Awal 2017

    Kementerian Energi dan Sumber Daya Mineral (ESDM) memasang target kontrak bagi hasil (production sharing contract/PSC) Blok East Natuna diteken pada awal 2017 nanti. Sedianya kontrak itu ditandatangani pada 14 November 2016. Wakil Menteri ESDM Arcandra Tahar mengatakan PSC sudah disodorkan ke konsorsium East Natuna yakni PT Pertamina, ExxonMobil dan PTTEP Thailand.

    Kontrak yang ditawarkan itu dengan bagi hasil pemerintah sebesar 40 persen. Arcandra menuturkan ada beberap ketentuan dalam kontrak tersebut yang dirasa belum menguntungkan. Salah satunya terkait bagi hasil (split). Hanya saja dia enggan membeberkan seperti apa pembahasan split tersebut. “Salah satu masalahnya split,” ujarnya. Percepatan pengembangan Blok East Natuna dilakukan guna menjaga kedaulatan Indonesia. Pasalnya ada upaya dari negara lain yang menarik garis batas wilayahnya melewati batas Nusantara.

    Dengan diteken PSC maka kegiatan eksplorasi bisa segera dilakukan. Cadangan minyak di Blok East Natuna diperkirakan sekitar 46 juta barel. Sementara cadangan gasnya 42 triliun kaki kubik. Di tempat yang sama, Senior Vice President of Upstream Business Development Pertamina Danie S. Tampubolon menuturkan terdapat dua struktur di Blok East Natuna. Struktur AP mengandung minyak dan gas sedangkan struktur AL hanya mengandung gas. Dia bilang potensi gas di Natuna memang besar namun memiliki kandungan CO2 hingga 71 persen.

    Ada sejumlah teknik untuk memisahkan CO2 tersebut. Namun CO2 tidak bisa dibuang ke atmosfer lantaran bisa menyebabkan hujan asam. Bisa saja CO2 di injeksi ke area itu kembali. Tapi kontraktor memerlukan tambahan insentif dari pemerintah untuk penyimpanan CO2 ini,” ujarnya. Anggota Komisi VII Dewan Perwakilan Rakyat (DPR) Satya Yudha meminta pemerintah segera menyelesaikan PSC Blok East Natuna. Pasalnya Blok ini sudah ditemukan sejak tahun 70-an namun belum digarap hingga saat ini.

    Dia mengungkapkan pembahasan mengenai East Natuna sudah sejak jaman Bacharuddin Jusuf Habibie menjabat sebagai Menteri Riset dan Teknologi. Kita sudah beberapa kali kehilangan momentum pengembangan East Natuna. Kami sudah mendorong eksekutif tapi tetap saja kehilangan momentum,” ujarnya. Satya menuturkan untuk skema bagi hasil lebih baik menerapkan sliding scale. Namun dia menegaskan skema ini berlaku untuk semua Blok Migas bukan hanya untuk East Natuna. Dia bilang skema ini mampu menghadapi fluktuasi harga minyak dunia. “Mengurangi bagian negara saat harga minyak rendah akan tetapi bagian negara akan bertambah ketika harga minyak meningkat,” ujarnya

IN ENGLISH

East Natuna PSC Signed Early 2017

    Ministry of Energy and Mineral Resources (ESDM) set a target of production sharing contracts (production sharing contract / PSC) East Natuna Block was signed in early 2017. Originally, the contract was signed on November 14, 2016. Deputy Minister Arcandra Tahar said the PSC has been presented to the East Natuna consortium of PT Pertamina, ExxonMobil and PTTEP of Thailand.

    Contracts are offered with the results of government by 40 percent. Arcandra said that there are several provisions in the contract are deemed not profitable. One of them is related to the profit sharing (split). Only she was reluctant to reveal what the split discussions. "One of the problems split," he said. Accelerating the development of East Natuna Block is done in order to maintain the sovereignty of Indonesia. Because there are efforts of other countries to draw a line over the edge region of the archipelago.

    With the PSC signed exploration activities can be done immediately. Oil reserves in the East Natuna Block is estimated at about 46 million barrels. While gas reserves, 42 trillion cubic feet. In the same place, the Senior Vice President of Upstream Business Development Pertamina Danie S. Tampubolon said that there are two structures in East Natuna Block. AP structure contains oil and gas while the structure of the AL just gassy. He says in the Natuna gas potential is huge, but has a CO2 content of up to 71 percent.

    There are a number of techniques to separate the CO2. However, CO2 can not be discharged into the atmosphere because it can cause acid rain. It could be CO2 injection into the back area. But contractors require additional government incentives for CO2 storage, "he said. Member of Commission VII of the House of Representatives (DPR) Satya Yudha asked the government to resolve the East Natuna Block PSC. Because these blocks have been found since the 70s but has not been taken until now.

    He expressed the discussion of East Natuna has been since the days Bacharuddin Jusuf Habibie served as Minister of Research and Technology. We've been several times to lose the momentum of development of the East Natuna. We already encourage executives but still lose the momentum, "he said. Satya said to scheme for better results apply a sliding scale. But he insisted the scheme is applicable to all oil and gas blocks not only for the East Natuna. He says the scheme is able to deal with fluctuations in world oil prices. "Reducing parts of the state when oil prices are low but the state's share will increase when oil prices rise," he said

Investor Daily, Page-9,Wednesday, Dec,7,2016