Medco means business in South Natuna

In a bid to exploit “offshore” momentum to its advantage, publicly listed integrated energy company PT Medco Energi Internasional has completed a full acquisition of INPEX NATUNA Ltd., which operates in the South Natuna Sea. The move, however, signals that other foreign companies may follow INPEX’s exit.

In a statement issued on Monday, Japan’s INPEX Corporation announced that it had decided to sell all its shares in INPEX NATUNA Ltd., its wholly owned subsidiary, which holds a 35 percent participating interest in the South Natuna Sea’s Block B, to PT Medco Daya Sentosa, a subsidiary of Medco Energi.

INPEX Corp. attributed the US$ 167 million share sale to the policy of optimizing its global asset portfolio, given that the contribution of INPEX NATUNA in terms of income and cash flow was expected to become relativelylimited after almost 40 years of oil production. 

By transferring ownership to Medco Daya Sentosa, INPEX Corp. has followed in the footsteps of energy giant ConocoPhillips, which gave up ownership of ConocoPhillips Indonesia Inc. Ltd. and ConocoPhillips Singapore Operations Pte. Ltd. to Medco Energi in November 2016.

ConocoPhillips Indonesia was the operator of the South Natuna Sea Block B with a 40 percent working interest and the operator of the West Natuna Transportation System, while ConocoPhillips Singapore Operations oper-ated the onshore receiving facility in Singapore.

With the latest acquisition, Medco now holds a 75 percent participating interest in the block and the remaining 25 percent is controlled by another energy giant Chevron Corp. through its Chevron South Natuna B Inc.

“The acquisition is a game changer for Medco as we want to help the government solve its energy problem,” Medco Energi Internasional president commissioner Muhammad Lutfi told.

The share acquisition is expected to be completed in May and Medco will use internal cash reserves and bank loans to finance the takeover. Lutfi claimed South Natuna would be the starting point for the company to venture deeper into offshore production. It is the first and only offshore block for Medco as its other Iive production facilities are located onshore, such as the South Sumatra Block and Lematang Block.

“We are sure we can increase the production of Natuna. We already have the human resources and our directors are experts in offshore production,” he said. The government previously decided that the gas rich Masela Block in the Malukus would be developed in an offshore scheme.

According to data from INPEX Corp., the South Natuna Sea Block B has a water depth of approximately 50 to 55 meters. The average production rate for the block for the year 2016 was approximately 20,000 barrels per day (bpd) of crude oil, 197 million standard cubic feet per day (mmscfd) of natural gas and 6,000 barrels per day (bpd) of liquefied petroleum gas. 

The oil and gas production decreased 6.54 percent and 33.45 percent in 2016, respectively. In 2015, the block produced 21,400 bpd of crude oil and 296 mmscfd of natural gas, as shown by data from the Upstream Oil and Gas Regulatory Task Force (SKK Migas). ReforMiner Institute researcher Pri Agung Rakhmanto lauded Medco’s acquisition of INPEX NATUNA, saying it was an achievement tor a local firm to take over an international oil company

However, he said the current low oil price might force other foreign firms to rearrange their portfolios, and they too might relinquish ownership of operations in Indonesia. “INPEX has stake in Masela, that’s why it had the courage to sell Natuna.”

Energy expert John Sadrak Karamoy said that along with decreasing productivity regulatory uncertainty was also a major factor behind foreign oil and gas players’ decision to leave Indonesia.

“Those foreign players wanted to quit because we do not have consistency in regulations,” he said. A major example is when the government introduced the new gross-split sliding scale to slowly replace cost recovery, which supposedly gives contractors much more freedom over their activities, but may also force them to rein in expenditure.

Jakarta Post, Page-13, Wednesday, March, 29, 2017

Pertamina Hulu Energi Coming Complete Review

PT Pertamina Hulu Energi, a subsidiary of PT Pertamina soon submit the results of the study support the continued development blocks of coal bed methane (coal bed methane / CBM) manages. Pertamina plans to release eight CBM blocks his possession because it is not economical.

President Director of Pertamina Hulu Energi Mount Sardjono Hadi explained that the review was done because Pertamina want to take ownership of the CBM block management. The review related to the penalty to be paid if Pertamina retreat without meeting the firm commitment that has been promised in the contract.

It will calculate whether cheaper to pay the penalty or implement commitments, including whether it is possible to cut costs by using cheaper technology. In doing a review, the company will also negotiate with the partners who still want to continue the development of CBM.

"We immediately conveyed our study results to shareholders, in recent weeks we say officially," he said in Jakarta on Monday (27/3).

He explained that Pertamina wanted to take ownership stakes in Block CBM because development is not economical. If using drilling rules adopted by Pertamina, the cost is quite large. While the results of the drilling of the well is only about 0,003 million standard cubic per day / MMSCFD. This figure is different from that in Australia, where the drilling of the wells can produce 0.3 MMSCFD.

"When referring to Pertamina Drilling Way, it is not economical. The cost is quite large and the results are not as expected, "said Mount Sarjono. Moreover, there are still problems and non-technical licensing to face it in the field. Related kelanjutkan CBM Block development, recognized Mountains, it has been called by the Deputy Minister of Energy and Mineral Resources Arcandra Tahar.

Pertamina asked certainty to fulfill the commitments contained in the contract definitely CBM blocks hers. In some blocks, it does not meet the promised investment commitments.

However, it could not imply removing ownership as partners are still interested to continue its development, even though Pertamina is the operator. "So we have asked for time to Deputy Minister to negotiate with our partners as to what (the continuation of development)," he said.

Mount added, initially it wanted to sell its stake to another company, not backward. However, though it was offered, no other oil and gas companies who are interested to participate in the business development of CBM. Other companies also want a better prerequisite in CBM contract.

Currently, a subsidiary of PT Pertamina it has a participating interest in Block 14 with the magnitude of potential CBM 41.67 trillion cubic feet (TCF). Of these, eight blocks of which are operated by Pertamina, namely methane Sumatra 1, 3, 4, 6, and 7, Methane Tanjung II and IV, as well as methane Suban I and II.

The whole block wanted to be released by Pertamina. Meanwhile in five other blocks, it only holds an equity interest. In particular, 2 and 5 Methane Sumatra, Kalimantan Methane A and B, as well as methane Sumatra, Tanjung Enim. To kelanjutkan development of these blocks, said Mount, will be determined by a partner company that holds the operatorship rights.

Indonesia has a CBM resource of up to 453 trillion cubic feet. Until now there are 54 working area that has been given to the cooperation contract (PSC) has the potential of 138 TCF. However, no block CBM development is quite significant.

IN INDONESIAN

Pertamina Hulu Energi Segera Selesaikan Review

PT Pertamina Hulu Energi, anak usaha PT Pertamina segera menyerahkan hasil kajian kelanjutan pengembangan blok gas metana batubara (coal bed methane/ CBM) yang dikelolanya. Pertamina berencana melepas kepemilikan delapan blok CBM miliknya karena tidak ekonomis.

Presiden Direktur Pertamina Hulu Energi Gunung Sardjono Hadi menjelaskan, review dilakukan karena Pertamina ingin melepas kepemilikan Blok CBM yang dikelolanya. Tinjauan ini terkait penalti yang harus dibayarkan jika Pertamina mundur tanpa memenuhi komitmen pasti yang telah dijanjikan dalam kontrak.

Pihaknya akan menghitung apakah lebih murah membayar penalti atau melaksanakan komitmen, termasuk apakah ada kemungkinan memangkas biaya dengan menggunakan teknologi yang lebih murah. Dalam mengerjakan review, pihaknya juga akan melakukan negosiasi dengan mitra yang masih ingin melanjutkan pengembangan CBM. 

“Kami segera menyampaikan hasil kajian kami ke shareholder, minggu-minggu ini kami sampaikan secara resmi,” kata dia di Jakarta, Senin (27/ 3).

Dia menjelaskan, Pertamina ingin melepas kepemilikan saham di Blok CBM karena pengembangannya tidak ekonomis. Jika menggunakan aturan pengeboran yang dianut Pertamina, biaya yang dikeluarkan cukup besar. Sementara hasil pengeboran satu sumur hanya sekitar 0,003 million standard cubic per day/mmscfd. Angka ini berbeda dengan di Australia, di mana pengeboran satu sumur bisa menghasilkan 0,3 mmscfd.

“Kalau mengacu ke Pertamina Drilling Way, itu tidak ekonomis. Biayanya cukup besar dan hasilnya tidak sesuai harapan,” kata Gunung Sarjono. Apalagi masih ada masalah perizinan dan non-teknis yang harus dihadapi pihaknya di lapangan. Terkait kelanjutkan pengembangan Blok CBM ini, diakui Gunung, pihaknya telah dipanggil oleh Wakil Menteri Energi dan Sumber Daya Mineral Arcandra Tahar.

Pertamina diminta kepastiannya untuk memenuhi komitmen pasti yang tertuang dalam kontrak blok CBM miliknya. Di beberapa blok, pihaknya memang belum memenuhi komitmen investasi yang dijanjikan.

Namun, pihaknya tidak bisa langsung menyatakan melepas kepemilikan karena mitra masih berminat untuk melanjutkan pengembangannya, meskipun Pertamina adalah operator. “Jadi kami minta waktu ke Wakil Menteri untuk bernegosiasi dengan partner kami seperti apa (kelanjutan pengembangan) ,” kata dia.

Gunung menambahkan, awalnya pihaknya ingin menjual kepemilikan sahamnya ke perusahaan lain, bukan mundur. Namun, meski sudah ditawarkan, tidak ada perusahaan migas lain yang berminat untuk ikut di bisnis pengembangan CBM. Perusahaan-perusahaan lain juga menginginkan prasyarat yang lebih baik dalam kontrak CBM.

Saat ini, anak usaha PT Pertamina itu memiliki hak partisipasi di 14 Blok CBM dengan besaran potensi 41,67 triliun kaki kubik (TCF). Dari jumlah tersebut, delapan blok diantaranya dioperasikan oleh Pertamina, yakni Metana Sumatera 1, 3, 4, 6, dan 7, Metana Tanjung II dan IV, serta Metana Suban I dan II.

Seluruh blok ini ingin dilepas oleh Pertamina. Sementara itu di lima blok lainnya, Pertamina hanya memegang kepemilikan saham. Rincinya, Metana Sumatera 2 dan 5, Metanan Kalimantan A dan B, serta Metana Sumatera Tanjung Enim. Untuk kelanjutkan pengembangan blok-blok ini, kata Gunung, akan ditentukan oleh perusahaan mitra yang memegang hak operatorship. 

Indonesia memiliki sumber daya CBM hingga 453 triliun kaki kubik. Sampai saat ini terdapat 54 Wilayah kerja yang sudah diberikan kepada kontraktor kontrak kerja sama (KKKS) memiliki potensi 138 TCF. Namun, belum ada blok CBM yang pengembangannya cukup signifikan.

Investor Daily, Page-9, Wednesday, March, 29, 2017

Medco shares ahold South Natuna Sea Block B

Medco holds a majority stake South Natuna Sea Block B. The reason, Medco bought a 35% stake in Block B Inpex Corporation through PT Medco Power Sentosa (Medco), a subsidiary of PT Medco Energi Internasional Tbk. Previously, Medoo buy 40% stake in Conoco-Phillips in this block. Thus, in addition to Medco, only Chevron holds a 25% in this block.

In a release on Monday (27/3) lnpex writing, the value of the acquisition (transfer pride) shares reached US $ 167 million. Targeted the entire process of acquisition of shares in Inpex Natuna Ltd. by Medco could be completed by late May 2017.

Senior Manager of Communication and Relations Inpex Corp Usman Slamet said, Inpex still will continue its cooperation with the Government of Indonesia. "We've been 50 years in Indonesia and we will continue to continue the cooperation," said Usman.

lnpex currently listed as the operator in the LNG project Masela Abadi field since 1998 and the operator in Block Babar Selaru since November 2011. Inpex also has a right of participation in Berau Block and West Sebuku.

IN INDONESIAN

Medco Kuasai Saham Blok B Laut Natuna Selatan

Medco menguasai mayoritas saham Blok B Laut Natuna Selatan. Pasalnya, Medco membeli 35% saham Inpex Corporation di Blok B lewat PT Medco Daya Sentosa (Medco), anak usaha dari PT Medco Energi Internasional Tbk. Sebelumnya, Medoo membeli 40% saham Conoco-Phillips di blok ini. Dengan begitu, selain Medco, hanya Chevron yang memegang 25% di blok ini.

Dalam rilisnya, Senin (27/3) lnpex menulis, nilai akuisisi (transfer pride) saham tersebut mencapai US$ 167 juta. Ditargetkan seluruh proses akuisisi saham Inpex Natuna Ltd oleh Medco bisa selesai akhir Mei 2017. 

Senior Manager Communication and Relation Inpex Corp Usman Slamet mengatakan, Inpex masih akan melanjutkan kerjasama dengan Pemerintah Indonesia. "Kami sudah 50 tahun di Indonesia dan kami akan terus lanjutkan kerja sama," kata Usman.

lnpex saat ini tercatat sebagai operator di proyek LNG Lapangan Abadi Blok Masela sejak tahun 1998 dan operator di Blok Babar Selaru sejak November 2011. Inpex juga memiliki hak partisipasi di Blok Berau dan Sebuku Barat.

Kontan, Page-14, Wednesday, March, 29, 2017

Glass and Ceramics Industry Will Get Cheap Gas

Ministry of Energy and Mineral Resources (ESDM) promised there will be more industries will get a decrease in gas prices. We have already incentivized price reduction is the fertilizer industry, steel and petrochemicals through the Minister of Energy and Mineral Resources No. 40 of 2016 on Gas Prices for Industry Specific.

Director General of Oil and Gas Ministry of Energy, Puja Wiratmaja IGN stated, there are currently a number of companies that will get a decrease in gas prices. "About 80 companies was proposed by the Ministry of Industry, some reductions in Government Regulation No. 40/2016," said Wiratmaja.

Of the 80 companies that there are companies from the ceramics and glass industries. "The proposed there on the steel sector, glass, ceramics, petrochemicals," he said.

For the record, the Government Regulation No. 40/2016 states, who are entitled to incentive reduction of gas prices is the fertilizer industry, petrochemical industry, the oleochemical industry, steel industry, ceramic industry, glass industry and industrial gloves.

IN INDONESIAN

Industri Kaca dan Keramik Akan Mendapat Gas Murah

Kementerian Energi dan Sumber Daya Mineral (ESDM) berjanji akan ada lagi industri yang akan mendapatkan penurunan harga gas. Saat ini yang sudah mendapatkan insentif penurunan harga adalah industri pupuk, baja dan petrokimia melalui Peraturan Menteri ESDM No 40 tahun 2016 tentang Harga Gas untuk Industri Tertentu.

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM, IGN Wiratmaja Puja menyatakan, saat ini ada sejumlah perusahaan yang akan mendapatkan penurunan harga gas. "Sekitar 80 perusahaan ini diusulkan oleh Kementerian Perindustrian mendapat penurunan sesuai Peraturan Pemerintah No 40/2016," kata Wiratmaja. 

Dari 80 perusahaan itu terdapat perusahaan dari sektor industri keramik dan kaca. "Yang diusulkan ada dari sektor baja, gelas, keramik, petrokimia," katanya.

Sebagai catatan, Peraturan Pemerintah No 40/2016 menyebutkan, yang berhak mendapatkan insentif penurunan harga gas adalah industri pupuk, industri petrokimia, industri oleochemical, industri baja, industri keramik, industri kaca dan industri sarung tangan.

Kontan, Page-14, Wednesday, March, 29, 2017

New Contract 8 Block Oil and Gas Accelerated

Transition Working Area

The Government continues to discuss a new contract to eight oil and gas blocks whose contract expires in 2017 and 2018. Eight oil and gas block will use the scheme dirty or gross revenue share split.

Eight working areas namely Tuban Block (JOB Pertamina-Petrochemicals East Java), Block Ogan Ogan (JOB Pertamina-Talisman), Sanga-Sanga (Saka Energy), Block Southeast Sumatra (CNOOC SES Ltd), Block North Sumatra Offshore (Pertamina ), Central Block (Total E & P lndonesie), Block East Kalimantan (Chevron Indonesia Company), and Block Attaka (Chevron).

Currently, eight oil and gas blocks that still use the scheme for the results of operating costs that can be restored or cost recovery. Meanwhile, through a gross revenue share split scheme, the contractors will get the results that cover production costs already incurred.

The government is still discussing clauses in the eight new cooperation contract which is using the split target gross contract could be signed this year. In January 2017, the Minister of Energy and Mineral Resources (ESDM) lgnasius Jonan has determined the fate of the eight areas of work out of contract in 2017 and 2018.

Government commissioned PT Pertamina to manage the eight oil and gas blocks to run out the contract. Director of Upstream Oil and Gas Ministry of Energy and Mineral Resources Tunggal said MEMR still discussing contract clauses new partnership for the eight oil and gas blocks. According to him, the government wants the new contract be signed so that the acquisition activities of oil and gas block management can begin.

Agreement that will be signed using gross production sharing contract. The new contract for eight oil blocks are expected to be signed this year.

Scheme for the results of eight oil and gas block will switch from the scheme operating costs can be refunded (cost recovery) be gross split. Conditions split gross scheme set out in Regulation of the Minister of Energy and Mineral No. 8/2017 on Contracts Gross Split that the economic level of oil and gas field is maintained. "Still under discussion by the team," he said.

PT Pertamina Upstream Director Syamsu Alam said, the transition management of eight oil and gas blocks that can not be started if a new contract was not signed. According to him, Pertamina has no legal support for activities in the block without a new contract. Moreover, some oil and gas blocks of which are managed by another contractor without involving the participation of Pertamina.

Susidiary 

    He added, the faster the signing of a new contract done, activities in transition can be quickly started. He cited the Mahakam block transition can only begin when the new contract was signed in 2015. Exploration and production of oil and gas in the transition period, he said, at least started a year before the contract expires so that the rate of decline in production could be arrested. "Soon it should be for the next year of transition," he said.

Syamsu explained, the new work areas will be managed by a new subsidiary PT Pertamina Hulu Indonesia (PHI). Management of the adjacent working area location such as Block Attaka, Sanga-Sanga, and Block East Kalimantan will be under the management of PHI. It aims to facilitate the coordination of the operational aspects.

IN INDONESIAN

Kontrak Baru 8 Blok Migas Dipercepat

Pemerintah terus membahas kontrak baru terhadap delapan blok minyak dan gas bumi yang kontraknya berakhir pada 2017 dan 2018. Delapan blok migas tersebut akan menggunakan skema bagi hasil kotor atau gross split.

Delapan wilayah kerja tersebut yaitu Blok Tuban (JOB Pertamina-Petrokimia East Java), Blok Ogan Komering (JOB Pertamina-Talisman), Blok Sanga-Sanga (Saka Energi), Blok Southeast Sumatera (CNOOC SES Limited), Blok North Sumatera Offshore (Pertamina), Blok Tengah (Total E&P lndonesie), Blok East Kalimantan (Chevron Indonesia Company), dan Blok Attaka (Chevron).

    Saat ini, delapan blok migas itu masih menggunakan skema bagi hasil biaya operasi yang dapat dikembalikan atau cost recovery. Sementara itu, melalui skema bagi hasil gross split, kontraktor kontrak kerja sama akan mendapatkan bagi hasil yang mencakup biaya produksi yang telah dikeluarkan.

Pemerintah masih membahas klausul dalam delapan kontrak kerja sama baru yakni menggunakan kontrak gross split yang targetnya bisa ditanda tangani tahun ini. Pada Januari 2017, Menteri Energi dan Sumber Daya Mineral (ESDM) lgnasius Jonan telah menetapkan nasib delapan wilayah kerja yang habis masa kontraknya pada 2017 dan 2018.

Pemerintah menugaskan PT Pertamina untuk mengelola delapan blok migas yang segera habis kontrak tersebut. Direktur Pembinaan Usaha Hulu Minyak dan Gas Bumi Kementerian ESDM Tunggal mengatakan, Kementerian ESDM masih membahas klausul kontrak kerja sama yang baru untuk delapan blok migas. Menurutnya, pemerintah menginginkan kontrak baru itu segera diteken sehingga kegiatan akuisisi pengelolaan blok migas bisa mulai dilakukan.

Perjanjian yang akan ditanda tangani tersebut menggunakan kontrak bagi hasil kotor. Kontrak baru untuk delapan blok migas tersebut diharapkan ditanda tangani tahun ini.

Skema bagi hasil delapan blok migas tersebut akan beralih dari skema biaya operasi yang bisa dikembalikan (cost recovery) menjadi gross split. Ketentuan skema gross split tertuang dalam Peraturan Menteri ESDM No. 8/2017 tentang Kontrak Gross Split agar tingkat keekonomian lapangan migas tetap terjaga. “Masih dalam pembahasan oleh tim,” katanya.

Direktur Hulu PT Pertamina Syamsu Alam mengatakan, transisi pengelolaan delapan blok migas itu belum bisa dimulai bila kontrak baru belum ditandatangani. Menurutnya, Pertamina tidak memiliki dukungan secara hukum untuk melakukan kegiatan di blok tersebut tanpa ada kontrak baru. Apalagi beberapa blok migas di antaranya dikelola oleh kontraktor lain tanpa melibatkan partisipasi dari Pertamina.

ANAK USAHA

Dia menambahkan, semakin cepat penandatanganan kontrak baru dilakukan, kegiatan dalam masa transisi bisa cepat dimulai. Dia mencontohkan, transisi Blok Mahakam saja bisa dimulai ketika kontrak baru ditandatangani pada 2015. Kegiatan eksplorasi dan produksi migas pada masa transisi, katanya, paling lambat dimulai setahun sebelum kontrak berakhir agar laju penurunan produksi bisa ditahan. “Secepatnya mestinya karena tahun depan transisi,” katanya.

Syamsu menjelaskan, wilayah kerja yang baru akan dikelola anak usaha baru yakni PT Pertamina Hulu Indonesia (PHI). Pengelolaan wilayah kerja yang berdekatan lokasinya seperti Blok Attaka, Blok Sanga-Sanga, dan Blok East Kalimantan akan berada di bawah pengelolaan PHI. Hal itu bertujuan untuk memudahkan koordinasi dari aspek operasional.

Bisnis Indonesia, Page-30, Wednesday, March, 29, 2017

Medco More Aggressive

Medco Group intensified explore business in oil and gas, mining, and infrastructure since the second half of last year, the business group owned by the tycoon Panigoro family that has spent at least US $ 3.16 billion.

Arifin Panigoro

Most recently, PT Medco Energi Internasional Tbk. (MEDC) to buy a 35% stake in Inpex participation Natuna Limited which manages the South Natuna Block B which is equivalent to the US $ 167 million. 

   Purchases made through PT Medco Power Sentosa that make Medco as the majority shareholder with control of 75% of the shares. The remaining 25% of shares are in the hands of Chevron.

Certainty purchase was delivered directly by Inpex through its official page and MEDC President Director Hilmi Panigoro explanation. The signing of the transactions carried out in Tokyo, Monday (27/3). The process of transfer of shares scheduled to be completed in May 2017. We just signing yesterday. So, there is an additional 35% stake in the South Natuna Block B. [Medco] to 75%, "said Hilmi

the South Natuna Block B

Medco Power Sentosa, which buy shares of Inpex Natuna Limited, was established on November 1, 2016. A total of 99% owned by Medco Energi and the remaining 1% of shares owned by PT Medco Power Abadi Lestari, with total assets of Rp. 550 million.

Page Inpex said after about 40 years of production, earnings and cash flows they are more limited than the block. To optimize the asset portfolio globally, Inpex release all of its shares in Inpex Natuna Limited.

Hilmi Panigoro

Hilmi targets to increase participation rights of ownership could encourage efficient Block B South Natuna. From the range of US $ 13 per Barrel of Oil Equivalent/BOE, he expects production costs down to $ 11 and even below $ 10 per BOE.

Previously, Medco disbursed US $ 2.6 billion for the acquisition of 82.20% stake in PT Newmont Nusa Tenggara (NNT) in June 2016 with funding support from the state-owned banks.

Giving credit worth US $ 360 million which is distributed by PT Bank Mandiri Tbk. Medco to support corporate action today has been entirely withdrawn. "It has drawn full," said Bank Mandiri Corporate Banking SEVP Alexandra Askandar

In addition to loans from Bank Mandiri business group owned by Arifin Panigoro's getting credit from PT Bank Negara Indonesia Tbk. worth US $ 240 million and PT Bank Rakyat Indonesia Tbk. US $ 150 million. In addition to loans for acquisition mine in West Nusa Tenggara, the bank also disbursed loans to Medco for some other projects. There is, but I do not remember the number, "said Alexandra.

Medco corporate action continues in September with a controlled subsidiary of ConocoPhillips holds operator rights and shareholding of 40% participation in Block B South Natuna. The acquisition was worth US $ 240 million. Outside the oil and gas and mining sectors, in January of this year, Medco wins water treatment project in Umbulan, East Java, worth Rp 2.1 trillion, equivalent to US $ 157 million.

SHARE OUTLOOK

Senior Securities Analyst PT Binaanha Parama Reza Priyambada assess the acquisition will provide positive impacts to the stock performance MEDC. Moreover, commodity price projections for this year is relatively better so hopefully can encourage a positive outlook from Medco's future performance.

Reza reveals aggressiveness acquired Medco is quite intense so that there is a problem related to the liability of the company. However, management remains quiet for optimism.

"Liability is quite high, but they are quiet. This means that there is optimism. The Company does not fix DER but to improve their performance, "he said.

Binaartha several times to revise the MEDC stock price forecast of 1,300 to 3,460 range addition to performance enhancements, revisions as well as technical reasons where immediate resistance at that level.

Bisnis Indonesia, Page-1, Wednesday, March 29, 2017

Arcandra: Mackenzie Research Problem Gross Split It Wrong

Ministry of Energy and Mineral Resources (ESDM) did not agree with the results of the analysis of consultants and research institutes in the fields of energy, metals and mining Wood Mackenzie. In KONTAN Daily News March 13, the company said gross split scheme could deter investment in the upstream oil and gas.

Once it appears that analysis, the Deputy Minister Arcandra Tahar Wood Mackenzie discussions with officials last week. The result, says Arcandra, Wood Mackenzie: WRONG ", because it does not include all the advantages contractor cooperation contract (PSC) of the gross split.

He said, the gross profit split not only "ABOUT EFFICIENT", but were able to shorten the time, so it can produce oil and gas PSC earlier. "If you shorten the period of two years to three years, which means more production early. Three years was equal to how much money? If you split it, cost recovery with gross split does not make any difference, "

Arcandra said.

He also cited the preliminary process from end engineering design (pre-FEED). The process of pre-FEED administration can take 8 months to 1.5 years. While the completion of the process of pre-FEED for only 6 months. The government asked for Wood Mackenzie show the correct data. Because Indonesia is already at the cap does not appeal to upstream oil and gas investment. "Show me the data is correct, the reviews will be updated again," said Arcandra. While Ignatius Jonan Minister claim, it does not apply pressure to revise the analysis.

IN INDONESIAN

Arcandra: Riset Mackenzie Soal Gross Split Itu Salah

Kementerian Energi dan Sumber Daya Mineral (ESDM) tidak setuju dengan hasil analisis konsultan dan lembaga riset di bidang energi, logam dan tambang Wood Mackenzie. Dalam berita Harian KONTAN 13 Maret lalu, perusahaan itu menyebutkan, skema gross split bisa menghalangi investasi di hulu migas.

Setelah muncul analisis itu, Wakil Menteri ESDM Arcandra Tahar berdiskusi dengan petinggi Wood Mackenzie pekan lalu. Hasilnya, kata Arcandra, Wood Mackenzie :SALAH", karena tidak memasukkan semua keuntungan kontraktor kontrak kerjasama (KKKS) dari gross split.

Kata dia, keuntungan gross split bukan hanya "TENTANG EFISIEN", tapi mampu mempersingkat waktu, sehingga KKKS bisa memproduksi migas lebih awal. "Kalau mempersingkat waktu dua tahun tiga tahun, artinya produksi lebih

awal. Tiga tahun itu equal dengan uang berapa? Kalau split saja, cost recovery dengan gross split tidak ada bedanya," kata Arcandra.

Ia juga mencontohkan proses preliminary from end engineering design (pre FEED). Proses administrasi pre-FEED bisa membutuhkan waktu 8 bulan hingga 1,5 tahun. Sedangkan proses penyelesain pre-FEED hanya 6 bulan. Pemerintah meminta Wood Mackenzie menunjukkan data yang benar. Pasalnya Indonesia sudah di cap tidak menarik bagi investasi hulu migas. "Tunjukkan data yang benar, review akan diperbarui lagi," kata Arcandra. Sementara Ignasius Jonan Menteri ESDM mengklaim, pihaknya tidak melakukan tekanan untuk merevisi analisis tersebut.

Kontan, Page-14, Monday, March, 27, 2017

Indonesia Oil and Gas Exploration in Eastern Need Incentives

Along with the rapid depletion of oil and natural gas, the government is now intensifying the exploration and production to Eastern Indonesia. Moreover, 80% of oil and gas potential in the region known to have not been explored.

Therefore, according to energy analyst from Reforminer Institute Komaidi Notonegoro, the government should provide incentives to stimulate the interest of investors or cooperation contract (PSC) to not only play in the conventional area. Providing incentives, said is very important, given the development of oil fields in the eastern region overshadowed by a number of challenges, ranging regional characteristics more alien to the deeper ocean.

  The most important how incentives prepared by the government to investors. Actual gross imposition split is also one incentive, "said Komaidi.

IN INDONESIAN

Eksplorasi Migas di Indonesia Timur Butuh Insentif

Seiring dengan menipisnya cadangan minyak dan gas nasional, pemerintah kini gencar mendorong eksplorasi dan produksi ke wilayah Indonesia Timur. Apalagi 80% potensi migas di kawasan tersebut diketahui belum di eksplorasi.

Oleh karena itu, menurut pengamat energi dari Reforminer Institute Komaidi Notonegoro, pemerintah perlu memberikan insentif dalam menggairahkan minat investor atau kontraktor kontrak kerja sama (KKKS) agar tidak hanya bermain di wilayah konvensional. Pemberian insentif, dikatakannya sangat penting, mengingat pengembangan lapangan migas di kawasan timur dibayangi sejumlah tantangan, mulai karakteristik wilayah yang lebih asing hingga lautan yang lebih dalam.

Paling utama bagaimana insentif yang disiapkan pemerintah untuk investor. Sebenarnya pemberlakuan gross split juga menjadi salah satu insentif," kata Komaidi.

Media Indonesia, Page-18, Monday, March, 27, 2017

Open Government Opportunities Change Split ONWJ

The government is ready to accept the proposal of additional demand for the results (split) the Offshore North West Java (ONWJ) of PT Pertamina Hulu Energi. Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said it was still awaiting additional proposed split of Pertamina Hulu Energi. Because, until now Pertamina Hulu Energi has not put the proposal.

"Later, when it was proposed, we see. Currently I'm waiting from Pertamina Hulu Energi, "he said in Jakarta last weekend.

According Arcandra, it could not ensure the split ONWJ will be raised. Moreover, it is working on a new beleid which regulates the unrecovered costs incurred due to the change of the regime's contract cost recovery (investment costs that can be returned) to gross split (for gross proceeds).

However, he said there is the possibility of a split is increased if the project becomes uneconomic. "Wait a minute, (split plus) if it is not economically viable. Ministers Regulation alone is not finished, "said Arcandra.

Earlier, President Director of Pertamina Hulu Energi Mount Sardjono Hadi said it would submit proposed improvements ONWJ split by the end of the first half. Because, when it was still calculating how many additional figures split the right to ensure they are ONWJ still economical.

According to him, there are three factors that were previously not included in the determination of the split ONWJ. Details, their operating costs are not refunded by the government (unrecovered cost) amounted to $ 453 million, the obligation to bear the cost in advance of granting the right of participation (participating interest / PI) to local governments 10%, and the emergence of the burden of Value Added Tax (VAT) after the contract turns into gross split.

Unfortunately, Mount reluctant to specify the exact number of proposed additional split. He also did not want to argue that additional discretionary 5% split in accordance with Article 8 Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 8 of 2017 is sufficient.

IN INDONESIAN

Pemerintah Buka Peluang Ubah Split Blok ONWJ

Pemerintah siap menerima usulan permintaan tambahan bagi hasil (split) Blok Offshore North West Java (ONWJ) dari PT Pertamina Hulu Energi. Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, pihaknya masih menunggu usulan tambahan split dari Pertamina Hulu Energi. Pasalnya, sampai saat ini Pertamina Hulu Energi belum mengajukan usulan tersebut.

“Nanti kalau sudah diusulkan, kami lihat. Saat ini saya sedang menunggu dari Pertamina Hulu Energi,” kata dia di Jakarta, akhir pekan lalu.

Menurut Arcandra, pihaknya tidak dapat memastikan split Blok ONWJ bakal dinaikkan. Apalagi, pihaknya sedang menyusun beleid baru yang mengatur soal unrecovered cost yang timbul akibat pergantian kontrak dari rezim cost recovery (biaya investasi yang dapat dikembalikan) ke gross split (bagi hasil kotor).

Namun, dia menyebut ada kemungkinan split dinaikkan jika memang proyek menjadi tidak ekonomis. “Tunggu dulu, (split ditambah) kalau tidak ekonomis. Peraturan Menterinya saja belum selesai,” kata Arcandra.

Sebelumnya, Presiden Direktur Pertamina Hulu Energi Gunung Sardjono Hadi mengatakan, pihaknya akan menyerahkan usulan perbaikan split Blok ONWJ paling lambat akhir semester pertama. Pasalnya, saat ini pihaknya masih menghitung berapa angka tambahan split yang tepat untuk memastikan pengerjaan Blok ONWJ tetap ekonomis.

Menurutnya, terdapat tiga faktor yang sebelumnya belum dimasukkan dalam penetapan split Blok ONWJ. Rincinya, adanya biaya operasi yang belum dikembalikan oleh pemerintah (unrecovered cost) sebesar US$ 453 juta, kewajiban menanggung biaya terlebih dahulu dari pemberian hak partisipasi (participating interest/PI) ke pemerintah daerah 10%, dan munculnya beban Pajak Pertambahan Nilai (PPN) setelah kontrak berubah menjadi gross split.

Sayangnya, Gunung enggan merinci berapa pastinya tambahan split yang diusulkan. Dia juga tidak ingin menyatakan bahwa diskresi tambahan split 5% sesuai pasal 8 Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) Nomor 8 Tahun 2017 sudah cukup. 

Investor Daily, Page-14, Monday, March, 27, 2017

Inpex State There is a point of Light Masela Project

Inpex Corporation, as the operator in the Masela still doing preliminary front end engineering design (pre-feed) for the progress of the oil and gas projects. In fact, last week the government had already decided, Inpex immediately pre-feed at two locations and two capacities.

Namely, Inpex Mandatory create two scenarios project with a capacity of 9.5 million tonnes per year and a million tons per annum (MTPA) plus 150 million standard cubic feet per day (MMSCFD) and 7.5 MTPA plus 474 MMSCFD. Inpex also must perform a pre-feed for two locations, namely on the island of Aru and yamdena.

Vice President Corporate Service Inpex Corporation, Nico Muhyiddin admitted, decisions Block Masela of the Minister of Energy and Mineral Resources (ESDM) lgnasius Jonan indeed bring a bright spot fate Block Masala project continuation. "It's already started to appear," said Nico.

Even so, it still will negotiate with the government about the decision. "Yes, we are still discussions about the letter to the government, so that later we can give an answer," said Nico.

He also said that discussions with the new government started last week. Jonan themselves hope with this government decision, Inpex could soon run pre-feed. According Jonan, details will be run by SKK Migas. "I have sent a letter," said Jonan.

IN INDONESIAN

Inpex Nyatakan Ada Titik Terang Proyek Masela

Inpex Corporation, selaku operator di Blok Masela masih belum melakukan preliminary front end engineering design (pre feed) demi kemajuan proyek minyak dan gas tersebut. Padahal pekan lalu pemerintah sudah memutuskan, Inpex segera melakukan pre-feed di dua lokasi dan dua kapasitas.

Yakni, Inpex Wajib membuat dua skenario proyek dengan kapasitas 9,5 juta ton per tahun dan million tons per annum (MTPA) plus 150 million standard cubic feet per day (mmscfd) dan 7,5 MTPA plus 474 mmscfd. Inpex juga harus

melakukan pre-feed untuk dua lokasi, yakni di Pulau Aru dan Pulau Yamdena.

Vice President Corporate Service Inpex Corporation, Nico Muhyiddin mengaku, keputusan terkait dengan Blok Masela dari Menteri Energi dan Sumber Daya Mineral (ESDM) lgnasius Jonan memang membawa titik terang

nasib kelanjutan proyek Blok Masala. "Sekarang sudah mulai kelihatan," kata Nico.

Biarpun begitu, pihaknya masih akan berunding dengan pemerintah mengenai keputusan tersebut. "Ya, kami masih diskusi mengenai Surat itu dengan pemerintah, supaya nanti kami bisa memberi jawaban," kata Nico.

Dia juga menyebutkan, diskusi dengan pemerintah baru dimulai pada pekan lalu. Jonan sendiri berharap dengan keputusan pemerintah tersebut, Inpex bisa segera menjalankan pre-feed. Menurut JOnan, detailnya akan dijalankan oleh SKK Migas. "Saya sudah mengirimkan surat," kata Jonan.

Kontan, Page-14, Monday, March, 27, 2017