Revenue Shares of Pertamina in ONWJ Block Significantly

PT Pertamina Hulu Energi (PHE) is getting an increase of 6,0027 for Offshore North West Java (ONWJ) Block from 57.5% to 73.5% for oil and gas from 62.5% to 81%. The amount of profit sharing is because PHE ONWJ gets additional from the fluctuation factor of oil price and cumulative production.

Upstream Director of PT Pertamina Syamsu Alam said that under the oil and gas contract scheme of gross split scheme, there are split base components, split variable, progressives split, and 5% minister of Energy and Mineral Resources (EMR)). Previously, ONWJ Block has been granted an additional split through ministerial discretion of 5%. Now additional splits are also obtained from the progressive split factor.

"Then with the perception that the gas production is equivalent to oil and it is agreed that the cumulative volume of production from the beginning of the contract is considered zero, then get additional split again in ONWJ Block," he said in Jakarta on Monday (21/8).

President Director of Pertamina Hulu Energi Gunung Sardjono Hadi confirmed that the split in ONWJ Block has changed from the beginning of the contract signed, ie 62.5% for gas and 57.5% for oil. With oil prices at an average of US $ 45-50 per barrel, it gets an additional 5% split for oil and 7.5% for gas. Then from the cumulative factor of production, it can increment split each 3% for oil and gas.

"So the total split for PHE ONWJ by the end of 2017 is 73.5% for oil and 81% for gas," he said.

This split amount is included with the addition of a ministerial discretion of 5%.

But the amount of split in Block ONWJ will change again next year. In the production sharing contract (PSC), it is agreed that the ONWJ Block split is dynamic. For the split in 2018, it will depend on the movement of crude oil prices and the cumulative oil and gas production from the offshore block of West Java. As for the amount of split from the factor of Domestic Content Level (TKDN) will depend on its realization. Although the split changed, he said there is no need to change the contract.

"So it has been define from the beginning, there should be no amendment of PSC every year," said Gunung Sarjono.

With this split increase, it is also more aggressive in investing in Block ONWJ. In the initial agreement, the total investment commitment of the company in this block is only US $ 8.5 billion for the entire contract period of 20 years. However, this figure was later revised up to US $ 15.9 billion.

While investment commitments in the first three years remain US $ 82.3 million. He said the increase in investment because the oil and gas production target ONWJ Block along the contract also changed to be higher. The block is targeted to produce oil and gas of 556 million barrels of oil equivalent over 20 years, with details of 331 million barrels of oil and 1.2 trillion cubic feet of gas. The government recorded oil reserves in ONWJ Block recorded at 309.8 million barrels and gas 1,114.9 billion cubic feet.

For this year, his side began to work on some activities that will be done to pursue production targets. In detail, it will work on drilling six development wells, 12 wells re-work, adding well maintenance activities, and improving production facilities.

"We will also do our best to do cost eficiency from the procurement side of goods and services that have not followed the PTK 007," said Gunung.

Still Discussed

Meanwhile, for the eight block-out of contracts assigned to Pertamina, Alam said that it is still being discussed for its work program with the Ministry of Energy and Mineral Resources and the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas). With the exception of East Kalimantan Block, it has stated that it is ready to manage the blocks under certain conditions.

Meanwhile, for East Kalimantan Block, his side requested additional time to make consideration because of the abandonment and site restoration (ASR) burden to the economy.

"We have special experience with SKK Migas for East Kalimantan Block," he said.

Syamsu Alam revealed, it is not want to slow down the certainty about the East Kalimantan Block. It is also of interest immediately that there is a solution for the block in East Kalimantan considering the contract will be completed next year. Moreover, SKK Migas also expects Pertamina to manage the block.

"But the thing is we do not want to rush to say we can manage, but then the hassles," he added.

As is known, the government commissioned Pertamina to manage eight working areas that will expire the contract. The eight working areas are Tuban Block, East Java (JOB Pertamina-PetroChina East Java); Block Ogan Komering, South Sumatera (JOB Pertamina-Talisman); Sanga-Sanga Block, East Kalimantan (Saka Energi); Southeast Sumatra Block (SES), Lampung (CNOOC SES Limited); Central Block, East Kalimantan (Total E & P Indonesie); Block of Attaka, East Kalimantan (Chevron), East Kalimantan Block (Chevron) and North Sumatra Offshore Block, Aceh (Pertamina).

WORKING AREA OIL AND GAS IN INDONESIA

Previously, Deputy Minister of EMR Arcandra Tahar explained that this block's block is given to Pertamina because the government wants to strengthen the national oil and gas company. Because the contribution of oil and gas production Pertamina compared to the national oil and gas production recorded only about 24%. While the contribution of national oil and gas companies of other countries on average reaches 90% of the total oil and gas production of the country.

"One of the ways (strengthening national oil and gas companies) offers block of contracts to Pertamina. If interested, then the government gives preference for Pertamina to manage, "he said.

IN INDONESIA

Bagi Hasil Pertamina di Blok ONWJ Naik Signifikan

PT Pertamina Hulu Energi (PHE) mendapat tambahah bagi hasil 6,0027 untuk Blok Offshore North West Java (ONWJ), yakni dari 57,5% menjadi 73,5% untuk minyak dan untuk gas dari 62,5% menjadi 81%. Besaran bagi hasil dinaikkah lantaran PHE ONWJ mendapat tambahan dari faktor fluktuasi harga minyak dan kumulatif produksi.

Direktur Hulu PT Pertamina Syamsu Alam mengatakan, sesuai kontrak migas skema bagi hasil kotor (gross split), terdapat komponen base split, variable split, progressives split, serta dikresi Menteri Energi dan Sumber Daya Mineral (ESDM) 5%. Sebelumnya, Blok ONWJ telah diberikan tambahan split melalui diskresi menteri sebesar 5%.  Kini tambahan split juga diperoleh dari faktor progressive split.

“Kemudian dengan disamakannya persepsi bahwa produksi gas diekuivalenkan dengan minyak dan disepakati bahwa volume kumulatif produksi dari awal kontrak dianggap nol, maka mendapat tambahan split lagi di Blok ONWJ,” kata dia di Jakarta, Senin (21/8).

Presiden Direktur Pertamina Hulu Energi Gunung Sardjono Hadi membenarkan bahwa split di Blok ONWJ telah berubah dari awal kontrak diteken, yakni sebesar 62,5% untuk gas dan 57,5% untuk minyak. Dengan harga minyak di rata-rata US$ 45-50 per barel, pihaknya mendapat tambahan split 5% untuk minyak dan 7,5% untuk gas. Kemudian dari faktor kumulatif produksi, pihaknya dapat kenaikan split masing-masing 3% untuk minyak dan gas.

“Sehingga total split untuk PHE ONWJ sampai akhir 2017 yakni sebesar 73,5% untuk minyak dan 81% untuk gas,” katanya.

Besaran split ini sudah termasuk dengan tambahan dari diskresi menteri sebesar 5%.

Namun besaran split di Blok ONWJ ini akan berubah lagi pada tahun depan. Dalam kontrak kerja sama (production sharing contract/PSC), memang disepakati bahwa split Blok ONWJ bersifat dinamis. Untuk besaran split di 2018, nantinya akan tergantung pada pergerakan harga minyak mentah dan komulatif produksi migas dari blok di lepas pantai Jawa Barat ini.  Sementara untuk besaran split dari faktor Tingkat Kandungan Dalam Negeri (TKDN) akan tergantung pada realisasinya. Meski split berubah, dikatakannya tidak perlu ada perubahan kontrak. 

“Jadi sudah di-define dari awal, tidak perlu ada amendemen PSC setiap tahunnya,” kata Gunung Sarjono.

Dengan adanya kenaikan split ini, pihaknya juga semakin agresif dalam berinvestasi di Blok ONWJ. Dalam kesepakatan awal, total komitmen investasi perseroan di blok ini hanya sebesar US$ 8,5 miliar untuk sepanjang masa kontrak 20 tahun. Namun, angka ini kemudian direvisi naik menjadi US$ 15,9 miliar. 

Sementara komitmen investasi pada tiga tahun pertama tetap US$ 82,3 juta. Dikatakannya, kenaikan investasi lantaran target produksi migas Blok ONWJ sepanjang kontrak juga diubah menjadi lebih tinggi. Blok ini ditargetkan menghasilkan migas sebesar 556 juta barel setara minyak selama 20 tahun, dengan rincian minyak 331 juta barel dan gas 1,2 triliun kaki kubik. Pemerintah mencatat cadangan minyak di Blok ONWJ tercatat masih 309,8 juta barel dan gas 1.114,9 miliar kaki kubik. 

Untuk tahun ini, pihaknya mulai mengerjakan beberapa kegiatan yang akan dilakukan untuk mengejar target produksi. Rincinya, pihaknya akan mengerjakan pengeboran enam sumur pengembangan, kerja ulang 12 sumur, penambahan kegiatan perawatan sumur (well services), dan perbaikan fasilitas produksi. 

“Kami juga akan berusaha semaksimal mungkin melakukan cost eficiency dari sisi pengadaan barang dan jasanya yang sudah tidak mengikuti PTK 007,” kata Gunung.

Masih Dibahas

Sementara itu, untuk delapan blok habis kontrak yang ditugaskan ke Pertamina, Alam menuturkan masih dibahas untuk program kerjanya dengan Kementerian ESDM dan Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas). Kecuali Blok East Kalimantan, pihaknya sudah menyatakan siap mengelola blok-blok tersebut dengan kondisi-kondisi tertentu.

Sementara untuk Blok East Kalimantan, pihaknya meminta tambahan waktu untuk membuat pertimbangan lantaran beban dana pasca tambang (abandonment and site restoration/ ASR) yang memberatkan ke-ekonomiannya. 

“Kami ada pendalaman khusus dengan SKK Migas untuk Blok East Kalimantan,” ujarnya.

Syamsu Alam mengungkapkan, pihaknya bukan ingin memperlambat adanya kepastian soal Blok East Kalimantan. Pihaknya juga berkepentingan segera ada solusi untuk blok di Kalimantan Timur ini mengingat kontraknya akan selesai pada tahun depan. Apalagi, SKK Migas juga berharap Pertamina mengelola blok ini.

“Tetapi masalahnya kami tidak mau buru-buru bilang sanggup mengelola, tetapi kemudian kerepotan,” tambahnya.

Seperti diketahui, pemerintah menugaskan Pertamina untuk mengelola delapan wilayah kerja yang akan habis masa kontraknya. Delapan wilayah kerja tersebut yakni Blok Tuban, Jawa Timur (JOB Pertamina-PetroChina East Java); Blok Ogan Komering, Sumatera Selatan (JOB Pertamina-Talisman); Blok Sanga-Sanga, Kalimantan Timur (Saka Energi); Blok Southeast Sumatera (SES), Lampung (CNOOC SES Limited); Blok Tengah, Kalimantan Timur (Total E&P Indonesie); Blok Attaka, Kalimantan Timur (Chevron), Blok East Kalimantan (Chevron) dan Blok North Sumatera Offshore, Aceh (Pertamina).

Sebelumnya, Wakil Menteri ESDM Arcandra Tahar menjelaskan, kedepalan blok ini diberikan ke Pertamina lantaran pemerintah ingin memperkuat perusahaan migas nasional. Pasalnya, kontribusi produksi migas Pertamina dibandingkan produksi migas nasional tercatat baru sekitar 24%. Sementara kontribusi perusahaan migas nasional negara-negara lain rata-rata mencapai 90% dari total produksi migas negara tersebut.

“Salah satu caranya (memperkuat perusahaan migas nasional) menawarkan blok habis kontrak ke Pertamina. Apabila berminat, maka pemerintah beri preference untuk Pertamina untuk kelola,” ujarnya.

Investor Daily, Page-17, Tuesday, August 22, 2017

Scramble 'Black Gold' Time in Wonocolo

The area of ​​traditional oil mines in Wonocolo Village, Kedewan Subdistrict, Bojonegoro still continues to burst to this day. Oil fields that have been more than 100 years old is still used by the local community.

After entering the village of Wonocolo, you can immediately see the traditional oil wells scattered in the hills. Well drilling is done using simple tools, such as wooden poles and diesel engines to move the pipe.

Based on data of PT Pertamina EP Asset 4 subsidiaries of PT Pertamina currently there are about 700 oil wells in Wonocolo. However, only about 40 wells are actively producing. Currently, the area of ​​the traditional oil wells produces 400 barrels per day (bpd).

Government and Public Relation Assistant Manager of PT Pertamina EP Asset IV Pandjie Galih Anoraga said that the crude oil from Wonocolo is sold to Pertamina EP Asset IV at 70% price and Indonesian Crude Price (ICP).

"Oil from Wonocolo is sold to Pertamina," he said.

With oil prices around US $ 50 per barrel, the total value of crude oil sales from Wonocolo Village is around Rp 182 million per day (assuming Rp 13,000 per US $).

About 250 old wells in the hills of the mountains Kendeng it is a relic of the Netherlands. To avoid illegal drilling activities, the Wonocolo area is now managed by Pertamina EP Asset IV. To defend the historical value of the traditional 'black gold' mining area, the government established Wonocolo as an oil and gas tourism village in 2016.

With traditional hillside views and oil drilling activities, the region can attract tourists who want to see first hand oil drilling activities with simple tools. Wonocolo transformed into a tourist village with oil-like concept of oil area in Texas, United States.

To attract more tourists, the managers of Wonocolo Village have made a crossroad for Offroad with jeep vehicles. You can Offroad to enjoy the hilly area while walking along the old wells using a jeep. In addition, visitors can also see the rock museum. Despite the low oil prices, residents in Wonocolo Village are still doing the drilling of the old well.

Oil price fluctuations are not new. Precisely the characteristic of the black liquid price is up and down. In fact, when oil was first discovered and drilled in an oil field in Pennsylvania, the US in the 19th century, the price of black liquor was US $ 30 per barrel.

However, soon the price touched US $ 1 cent per barrel. Get down drastically. At that time, the 'price war' between the producer or the driller with the oil buyer company continued to operate. Even some say the oil business is loaded with cartels. So, do not be surprised if the price of oil can be cheaper than the price of water and at other times the price could soar high into the clouds.

The traditional oil well drilling activities at Wonocolo are inversely proportional to Banyu Urip Field, Cepu Block. PT ExxonMobil Cepu Limited, as operator of Banyu Urip Field, is able to lift oil from the earth's stomach by 201,000 bph with just 35 wells. Meanwhile, oil production in Wonocolo with 700 wells only produced 400 bpd.

A very contrasting scene, between the use of advanced technology and the traditional way. The optimal management of Wonocolo Village is believed to attract more tourists. The hilly terrain, offroad tracks, traditional oil drilling activities, the history of the Dutch oil company, the rock museum and the natural beauty of Wonocolo Village will be a magnet for tourists who want to know the history of oil in Indonesia.

IN INDONESIA

Mengais Sisa ‘Emas Hitam’ di Wonocolo

Wilayah tambang minyak tradisional di Desa Wonocolo, Kecamatan Kedewan, Bojonegoro masih terus menyembur hingga saat ini. Ladang minyak yang telah berusia lebih dari 100 tahun itu masih dimanfaatkan oleh masyarakat setempat.

Setelah masuk ke wilayah Desa Wonocolo, Anda bisa langsung melihat sumur-sumur minyak tradisional yang bertebaran di perbukitan. Pengeboran sumur dilakukan dengan menggunakan alat-alat sederhana, seperti tiang-tiang dari kayu dan mesin diesel untuk menggerakkan pipa.

Berdasarkan data PT Pertamina EP Aset 4 anak usaha PT Pertamina saat ini ada sekitar 700 sumur minyak di Wonocolo. Namun, hanya sekitar 40 sumur yang aktif berproduksi. Saat ini, wilayah sumur minyak tradisional itu menghasilkan 400 barel per hari (bph).

Government dan Public Relation Assistant Manager PT Pertamina EP Asset IV Pandjie Galih Anoraga mengatakan bahwa minyak mentah dari Wonocolo tersebut dijual ke Pertamina EP Asset IV dengan harga 70% dan harga minyak Indonesia (Indonesia Crude Price/ICP). 

"Minyak dari Wonocolo dijual ke Pertamina," katanya.

Dengan harga minyak sekitar US$ 50 per barel, total nilai penjualan minyak mentah dari Desa Wonocolo sekitar Rp 182 juta per hari (dengan asumsi Rp 13.000 per US$).

Sekitar 250 sumur tua di wilayah perbukitan pegunungan Kendeng itu merupakan peninggalan Belanda. Untuk menghindari kegiatan pengeboran illegal, wilayah Wonocolo kini dikelola oleh Pertamina EP Asset IV. Untuk mempertahankan nilai sejarah wilayah penambangan ‘emas hitam’ tradisional itu, pemerintah menetapkan Wonocolo sebagai desa wisata minyak dan gas bumi pada 2016. 

Dengan pemandangan perbukitan serta aktivitas pengeboran minyak secara tradisional, wilayah itu dapat menarik para wisatawan yang ingin melihat secara langsung kegiatan pengeboran minyak dengan alat sederhana. Wonocolo diubah menjadi desa wisata minyak dan gas dengan konsep seperti kawasan minyak di Texas, Amerika Serikat.

Untuk semakin menarik wisatawan, pengelola Desa Wonocolo telah membuat jalan lintas untuk Offroad dengan kendaraan jip. Anda bisa Offroad untuk menikmati wilayah perbukitan sambil menyusuri sumur-sumur tua menggunakan jip. Selain itu, pengunjung juga bisa melihat museum bebatuan. Kendati harga minyak masih rendah, penduduk di Desa Wonocolo masih tetap melakukan kegiatan pengeboran sumur tua tersebut.

Fluktuasi harga minyak bukan hal baru. Justru ciri khas dari cairan hitam itu harga yang naik turun. Bahkan, saat pertama kali minyak ditemukan dan dibor di kawasan minyak di Pennsylvania, AS pada abad 19, harga cairan hitam pekat itu US$ 30 per barel.

Namun, tidak lama kemudian harga menyentuh US 1 sen per barel. Turun drastis. Saat itu, ‘peperangan harga’ antara produsen atau pengebor dengan perusahaan pembeli minyak terus berlanggsung. Bahkan beberapa kalangan menyebutkan bisnis minyak penuh dengan kartel. Jadi, tidak heran jika harga minyak bisa lebih murah dari harga air dan pada waktu lain harga bisa membumbung tinggi jauh ke awan.

Kegiatan pengeboran sumur minyak secara tradisional di Wonocolo berbanding terbalik dengan Lapangan Banyu Urip, Blok Cepu. PT ExxonMobil Cepu Limited, sebagai operator Lapangan Banyu Urip, mampu mengangkat minyak dari perut bumi sebanyak 201.000 bph hanya dengan 35 sumur. Sementara itu, produksi minyak di Wonocolo dengan 700 sumur hanya menghasilkan 400 bph.

Sebuah pemandangan yang sangat kontras, yaitu antara pemakaian teknologi canggih dan cara tradisional. Pengelolaan Desa Wonocolo secara optimal diyakini bakal menarik wisatawan lebih banyak lagi. Wilayah perbukitan, lintasan offroad, aktivitas pengeboran minyak secara tradisional, sejarah perusahaan minyak Belanda, museum bebatuan, dan keindahan alam di Desa Wonocolo bakal menjadi magnet bagi para wisatawan yang ingin mengetahui sejarah minyak di Indonesia.

Kontan, Page-18, Wednesday, August 23, 2017

The Gross Split Rule of Oil and Gas Scheme Finally Changed

This revision will only raise incentive variables for the division basis to increase.

The Ministry of Energy and Mineral Resources (ESDM) finally revised the Regulation of the Minister of Energy and Mineral Resources No. 8/2017 on the Gross Split Revenue Contract. Deputy Minister of EMR, Arcandra Tahar explained, the revision is based on government evaluation and input from Contractor Cooperation Contracts (KKKS), especially those that are following the auction Working Area (WK) Oil and Gas 2017. He claimed, ESDM listened input from KKKS.

"We have said that every human product can be revised if things are found that are not exciting or less stimulating investment," said Arcandra, Tuesday (22/8)

Arcandra hopes revision of Ministerial Regulation number 8/2017 can be completed and published.

"Insya Allah in the near future," he said.

As an illustration, through a gross split scheme, the government provides the initial share of the larger split for the contractor. Namely base split for gas contractor part 48%, while government 52%.

While base oil split contractor part by 43% and government equal to 57%. Yet this initial revenue share includes all the investment and costs that contractors have to incur.

The government has no longer implemented cost recovery. Therefore, to sweeten, the government provides additional split of several variables

In the revision, the government will not only provide 5% split (share) for the first Plan of Development (POD), but will also add a 5% split in the second or continued PoD.

"If it's in a block, then there's a new PoD, this new field in a block, if not given incentives, will not develop? Well now we give the second POD also incentives," said Arcandra.

The addition of a split in the second PoD is based on the KKKS's suggestion that the gross split rule is made only on the basis of data from the existing fields, not counted from the field beginning to be explored. In addition, KKKS feels, in conducting exploration activities there is no incentive given by the government.

In addition, Arcandra also said the government will make Net Present Value (NVP) and Rate Of Return (ROR) the same or even greater than the scheme of production sharing contract aka Product Sharing Contract NPV equal to cost recovery PSC.

"Before we launch, we invite the KKKS to take the bid round, our discussion," he said.

The government will provide more variables for additional splits. Meanwhile, for existing variables and progressive splits will also be added from the revenue share.

Executive Director of Indonesian Petroleum Association (IPA) Marjolijn Wahjong said IPA basically requested that the fiscal term given could raise Indonesia's competition level to attract investment for the oil and gas industry to Indonesia.

Energy Observer from Gadjah Mada University Fahmi Radhi stated, gross split substance is correct and need not be revised again. More revisions to its application obligations. At the beginning of its application should not be required as a replacement of cost recovery, but as a complement.

"The contractor is given the option to choose gross split or cost recovery for five years," he said.

He was not sure the addition of base split stimulates contractors for investment in oil and gas.

"Contractors are already comfortable with PSC cost recovery, suddenly required to use gross split," he said.

IN INDONESIA

Aturan Skema Gross Split Migas Akhirnya Diubah

Revisi ini hanya akan menaikkan variabel insentif agar basis pembagian meningkat.

Kementerian Energi dan Sumber Daya Mineral (ESDM) akhirnya merevisi Peraturan Menteri ESDM Nomor 8/2017 tentang Kontrak Bagi Hasil Gross Split. Wakil Menteri ESDM, Arcandra Tahar menjelaskan, revisi tersebut berdasarkan evaluasi pemerintah dan masukan dari Kontraktor Kontrak Kerja Sama (KKKS) terutama yang sedang mengikuti lelang Wilayah Kerja (WK) Migas 2017. Ia mengklaim, ESDM mendengarkan masukan dari KKKS. 

"Kami sudah bilang, setiap produk manusia ini bisa direvisi kalau ditemukan hal-hal yang tidak menggairahkan atau kurang menggairahkan investasi," kata Arcandra, Selasa (22/8)

Arcandra berharap revisi Peraturan Menteri nomor 8/2017 tersebut bisa segera selesai dan diterbitkan.

"Insya Allah dalam waktu dekat," katanya.

Sebagai gambaran, melalui skema gross split, pemerintah memberikan bagi hasil di awal alias base split lebih besar bagi kontraktor. Yaitu base split untuk gas bagian kontraktor 48%, sementara pemerintah 52%.

Sedangkan base split minyak bagian kontraktor sebesar 43% dan pemerintah sebesar 57 %. Namun bagi hasil di awal ini sudah termasuk seluruh investasi dan biaya yang harus dikeluarkan kontraktor.

Pemerintah sudah tidak menerapkan lagi cost recovery. Oleh karena itu untuk mempermanis, pemerintah menyediakan tambahan split dari beberapa variabel

Dalam revisi tersebut pemerintah tidak hanya memberikan tambahan split (bagi hasil) sebesar 5% untuk Plan of Development (POD) pertama, tetapi juga akan memberikan tambahan split sebesar 5% dalam PoD kedua atau lanjutan. 

"Jika sudah ada dalam satu blok, kemudian ada PoD baru. Lapangan baru ini dalam satu blok, kalau tidak diberi insentif, apakah mau tidak mengembangkan? Nah sekarang kami beri POD kedua juga insentif," kata Arcandra.

Penambahan split dalam PoD kedua berdasarkan pada saran KKKS yang menilai aturan gross split dibuat hanya berdasarkan data dari lapangan-lapangan eksisting, bukan dihitung dari lapangan mulai dieksplorasi. Selain itu, KKKS merasa, dalam melakukan kegiatan eksplorasi tidak ada insentif yang diberikan pemerintah.

Selain itu, Arcandra juga bilang pemerintah akan membuat Net Present Value (NVP) dan Rate Of Return (ROR) yang sama atau bahkan lebih besar dari skema kontrak bagi hasil alias Product Sharing Contract NPV sama dengan PSC cost recovery. 

"Sebelum kami launching, kami undang KKKS yang mengambil bid round, kami diskusi," ujarnya. 

Pemerintah akan memberikan lebih banyak variabel untuk tambahan split. Sementara itu untuk variabel yang telah ada saat ini dan progresif split juga akan ditambahkan dari jumlah bagi hasilnya.

Direktur Eksekutif Indonesian Petroleum Association (IPA), Marjolijn Wahjong mengatakan, IPA pada dasarnya meminta agar fiscal term yang diberikan bisa menaikkan tingkat kompetisi Indonesia untuk menarik investment untuk industri minyak bumi dan gas ke Indonesia.

Pengamat Energi dari Universitas Gadjah Mada Fahmi Radhi menyatakan, subtansi gross split sudah benar dan tidak perlu direvisi Iagi. Revisi lebih pada kewajiban penerapannya. Di awal penerapannya tidak harus diwajibkan sebagai pengganti cost recovery, tetapi sebagai pelengkap.

"Kontraktor diberikan opsi memilih gross split atau cost recovery selama lima tahun," kata dia.

Ia tak yakin penambahan base split merangsang kontraktor untuk investasi di migas. 

"Kontraktor sudah mersa nyaman dengan PSC cost recovery, tiba-tiba diharuskaan menggunakan gross split," kata dia.

Kontan, Page-18, Wednesday, August 23, 2017

The ONWJ portion rises drastically

The Government provides additional significant revenue share for PT Pertamina Hulu Energi Offshore North West Java in the ONWJ Block. The offshore oil and gas block located on the north coast of West Java implements a gross split scheme signed on 18 January 2017.

In the gross split scheme, the initial share (base), for petroleum is 57% of the state, while 43% of the contractor's share. For natural gas of 52% of the state and 48% of the contractors.

In the ONWJ Block share-sharing contract, the final profit-sharing scheme is for the government 47.5% oil and 52.5% of the contractor's share. For gas, 57.5% of the government and 62.5% of contractors.

However, the government is currently increasing its revenue share for PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), as the ONWJ Block operator, so it is quite a drastic increase. Currently, the operator gets a 73.5% split share for oil and 81% for natural gas.

Additional revenue-sharing is gained and progressive revenue-sharing is attributed to oil price factors and cumulative production. For the oil price factor, with an average of US $ 45 to US $ 50 per barrel, the oil structure gets an additional profit of 5% and 7.5% gas.

The additional split from cumulative oil and gas production is 3% each. In addition, it also received additional from the Minister of Energy and Mineral Resources discretion of 5%.

"Total split for PHE ONWJ, oil 73.5% status until the end of 2017, gas 81%," said President Director of PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi.

According to him, the profit sharing will be in effect until the end of 2017. Meanwhile, the oil price and cumulative factor of production will change as it enters 2018. Despite the changes and still will change due to several factors, it does not need to amend the contract because since the signing has been defined factors - factors that affect split change.

"So it has been defined from the beginning. There is no need for an amendment every year, "he said.

In addition, for the 10% participation share offer to BUMD still in process. Because, since getting a contract extension, 100% of ONWJ Block is now controlled by PHE ONWJ.

"For PI 10% BUMD is currently on progress," he said.

Regardless, the government has not set the tax treatment on the gross profit sharing contract.

CAPITAL SHOPPING

After obtaining additional profit-sharing, PHE ONWJ is targeting this year's capital expenditure of US $ 400 million with the addition of contractor's share through the scheme of production sharing contract.

Mount said that with the increase of revenue share, it is targeting additional investment. PHE ONWJ's capital expenditure this year is targeted to reach US $ 400 million.

According to PHE ONWJ will conduct drilling of six wells for development and improvement of production facilities. Based on the contract signed in January 2018, investment commitments in the first 3 years amounted to US $ 82.3 million and US $ 8.5 billion over the 20-year contract period.

"Target capex [capital expenditure] 2017 US $ 400 million."

An energy observer from Trisakti University Pri Agung Rakhmanto said that in the draft regulation on gloss split taxation it is estimated that it will only regulate the tax facilities as regulated in Goverment Regulation 27/2017 on the Refundable Operating Costs and the Treatment of Income Tax in Upstream Oil and Gas.

The amount of tax percentage will make the contract unattractive to investors. Moreover, the government is offering several working areas through auction schemes and direct offers.

IN INDONESIA

Porsi ONWJ Naik Drastis

Pemerintah memberikan Tambahan bagi hasil cukup signifikan bagi PT Pertamina Hulu Energi Offshore North West Java dalam pengeloaan Blok ONWJ. Blok minyak dan gas bumi lepas pantai yang berlokasi di pantai utara Jawa Barat itu menerapkan skema bagi hasil kotor (gross split) yang ditandatangani pada 18 Januari 2017. 

Dalam skema gross split, bagi hasil awal (basis), untuk minyak bumi sebesar 57% bagian negara , sedangkan 43% bagian kontraktor. Untuk gas bumi sebesar 52% bagian negara dan 48% bagian kontraktor.

Dalam kontrak bagi hasil gross split Blok ONWJ, skema final bagi hasil yang ditetapkan adalah untuk minyak 47,5% bagian pemerintah dan 52,5% bagian kontraktor. Untuk gas, 57,5% bagian pemerintah dan 62,5% bagian kontraktor.

Namun, saat ini pemerintah menambah bagi hasil bagi PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), sebagai operator Blok ONWJ, sehingga naik cukup drastis. Saat ini, operator mendapatkan porsi split sebesar 73,5% untuk minyak dan 81% untuk gas bumi.

Tambahan bagi hasil itu diperoleh dan bagi hasil progresif yang dikaitkan dengan faktor harga minyak dan kumulatif produksi. Untuk faktor harga minyak, dengan rata-rata sebesar US$ 45 sampai US$ 50 per barel, struktur minyak mendapat tambahan bagi hasil sebesar 5% dan gas 7,5%.

Tambahan split dari kumulatif produksi minyak dan gas masing-masing sebesar 3%. Selain itu, pihaknya pun mendapat tambahan dari diskresi Menteri Energi dan Sumber Daya Mineral sebesar 5%.

“Total split buat PHE ONWJ, oil 73,5% status sampai akhir 2017, gas 81%,” kata Presiden Direktur PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi.

Menurutnya, bagi hasil tersebut akan berlaku hingga penghujung 2017. Sementara itu, untuk faktor harga minyak dan kumulatif produksi akan berubah saat memasuki 2018. Kendati mengalami perubahan dan masih akan berubah karena beberapa faktor, pihaknya tidak perlu melakukan amendemen kontrak karena sejak penandatanganan sudah didefinisikan faktor-faktor yang memengaruhi perubahan split.

“Jadi sudah di-defined dari awal. Tidak perlu ada amendemen setiap tahun,” katanya.

Selain itu, untuk penawaran saham partisipasi 10% kepada BUMD masih berproses. Pasalnya, sejak mendapat perpanjangan kontrak, 100% saham Blok ONWJ kini dikuasai PHE ONWJ. 

“Untuk PI 10% BUMD saat ini sedang on progress," katanya.

Terlepas dari itu, pemerintah belum mengatur perlakuan perpajakan pada kontrak bagi hasil kotor.

BELANJA MODAL

Setelah mendapatkan tambahan bagi hasil, PHE ONWJ menargetkan belanja modal tahun ini sebesar US$ 400 juta dengan penambahan bagi hasil kontraktor melalui skema kontrak bagi hasil kotor.

Gunung mengatakan bahwa dengan bertambahnya bagi hasil, pihaknya menargetkan penambahan investasi. Belanja modal PHE ONWJ pada tahun ini ditargetkan bisa menyentuh US$ 400 juta.

Menurutnya PHE ONWJ akan melakukan pengeboran enam sumur pengembangan dan perbaikan fasilitas produksi. Berdasarkan kontrak yang diteken pada Januari 2018, komitmen investasi pada 3 tahun pertama sebesar US$ 82,3 juta dan US$ 8,5 miliar selama masa kontrak 20 tahun. 

“Target capex [belanja modal] 2017 US$ 400 juta."

Pengamat energi dari Universitas Trisakti Pri Agung Rakhmanto mengatakan bahwa dalam draf peraturan tentang perpajakan gloss split itu diperkirakan hanya akan mengatur tentang fasilitas perpajakan seperti yang diatur dalam Peraturan Pemerintah No. 27/2017 tentang Biaya Operasi yang Dapat Dikembalikan dan Perlakuan PPh di Hulu Migas.

Besarnya persentase pajak akan membuat kontrak tersebut tidak menarik bagi investor. Apalagi, pemerintah sedang menawarkan beberapa wilayah kerja melalui skema lelang dan penawaran langsung. 

Bisnis Indonesia, Page-32, Tuesday, August 22, 2017

Gas Production Trends Continue to Soar

The government targets gas production in 2018 to be 1.19 million barrels to 1.23 million barrels of oil equivalent. While oil production only amounted to 771,000 barrels-815,000 barrels. Gas production trends higher than this oil production will last until 2025. This is because several major projects will start production.

Head of Program and Communications Division of Upstream Oil and Gas Special Unit (SKK Migas) Wisnu Prabawa Taher says, gas production will be higher than oil by 60% by 2025 because some national strategic projects start production.

"From the new Jangkrik field on stream in May 2017, Tiung-Biru Jambaran Field, Tangguh Train 3 Block, Masela Block and Deepwateer Development Chevron Indonesia," he said.

For information, the Jangkrik Field gas production, Muara Bakau Block is targeted to reach 450 mmscfd to 600 mmscfd. Then Blok Indonesia Deepwater Development Gehem Field 420 mmscfd, Gendalo Field 700 mmscfd, Masela Block between 7.5 Milllion tonnes per year (MTPA) - 9,5 MTPA. And Tiung Biru Jambaran Field according to plan of development (POD) reached 227 mmscfd, while peak production reached 315 mmscfd.

Director General of Oil and Gas ESDM Ministry Ego Syahrial said gas production until August 15, 2017 amounted to 7,577 mmscfd.

"Most of the production comes from four large KKKS," he said.

The four are Total E & P lndonesie 1,464 mmscfd, BP Berau is 1,150 mmscfd and PT Pertamina reaches 996 mmscfd. The last of ConocoPhilips in Grissik reached 962 mmscfd.

IN INDONESIA

Tren Produksi Gas Terus Membubung

Pemerintah menargetkan, produksi gas pada tahun 2018 sebesar 1,19 juta barel sampai 1,23 juta barel setara minyak. Sedangkan produksi minyak hanya sebesar 771.000 barel-815.000 barel. Tren produksi gas lebih tinggi dibandingkan produksi minyak ini akan berlangsung sampai tahun 2025. Hal ini karena beberapa proyek besar akan mulai produksi.

Kepala Divisi Program dan Komunikasi Satuan Kerja Khusus Hulu Minyak dan Gas Bumi (SKK Migas) Wisnu Prabawa Taher bilang, produksi gas akan lebih tinggi dari minyak sebesar 60% di tahun 2025 lantaran beberapa proyek strategis nasional mulai produksi. 

"Dari lapangan Jangkrik baru on stream Mei 2017, Lapangan Jambaran Tiung-Biru, Blok Tangguh Train 3, Blok Masela,dan Indonesia Deepwateer Development Chevron," katanya.

Sebagai informasi, produksi gas Lapangan Jangkrik, Blok Muara Bakau ditargetkan mencapai 450 mmscfd hingga 600 mmscfd. Lalu Blok Indonesia Deepwater Development Lapangan Gehem 420 mmscfd, Lapangan Gendalo 700 mmscfd, Blok Masela antara 7,5 Milllion tonnes per year (MTPA) - 9,5 MTPA. Dan Lapangan Jambaran Tiung Biru sesuai plan of development (POD) mencapai 227 mmscfd, sedangkan produksi puncak mencapai 315 mmscfd.

Direktur Jenderal Minyak dan Gas Bumi Kementerian ESDM Ego Syahrial bilang, produksi gas hingga 15 Agustus 2017 sebesar 7.577 mmscfd. 

"Sebagian besar produksi tersebut berasal dari empat KKKS besar," katanya.

Keempatnya adalah Total E&P lndonesie 1.464 mmscfd, BP Berau 1.150 mmscfd dan PT Pertamina mencapai 996 mmscfd. Terakhir dari ConocoPhilips di Grissik mencapai 962 mmscfd.

Kontan, Page-18, Tuesday, August 22, 2017

Cepu Block Production 200 thousand barrels

Currently Cepu Block accounts for 25% of the national oil lifting target.

Crude oil production from Banyu Urip oil field in Cepu Block continues to show improvement. Last year production was still in the range of 160 thousand to 185 thousand barrels per day (bpd), while in August it has been able to reach 200 thousand bpd.

Vice President of Public and Government Affairs of Exxon Mobil Indonesia Erwin Maryoto said it is now getting an environmental impact analysis (amdal) to produce at 220 thousand bpd.

"The achievement of 200 thousand bpd means about 25% of the national lifting target," said Erwin Marwoto

Cepu Block is managed by Exxon Mobil with 45% ownership, Pertamina EP 45%, and BUMD 10%. The Banyu UriP oil and gas field is estimated to have reserves of 729 million barrels and has a management contract period of up to 2035.

The production of Cepu Block is indeed expected to have a bigger role in the decline of oil production from other blocks that have already existed. Rokan (Chevron), the largest oil contributor in the first quarter of 2017, produced only 230,000 bpd from 2014 at 264 thousand bpd.

Minister of Energy and Mineral Resources Ignasius Jonan while visiting the United States some time ago hoping that the production of Cepu Block could reach 300 thousand bpd.

Keeping Lifting

Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) assesses the role of Pertamina EP is very large to help maintain Indonesian oil lifting. This is because Pertamina EP controls the relatively large oil and gas blocks of other cooperation contractors.

"If you rely on a relatively small contractor, it will be more difficult. So indeed we hope in Pertamina EP to be able to increase production, "said Internal Supervisor SKK Migas, Taslim Z Yunus.

It must be admitted that oil and gas investment climate in Indonesia especially exploration activities in recent years is still low. This year, oil and gas investors will only drill 32 wells to seek new oil and gas potential.

"Whereas before 2014, at least per year reaches 100 wells," said Taslim.

The main cause of this is the low world crude oil prices that currently range below US $ 50 per barrel.

"Only investors who have money or who have funds from retained earnings will be able to explore," he said.

Therefore, it will make a number of efforts to convince investors in the oil and gas sector, between another approach personally (one on one).

"Next week at least 10 investors of the working area owners will be approached," he said.

Investing in this sector in Indonesia is still promising profit (margin) despite crude oil price around US $ 50 per barrel.

"There is still a margin because the average production cost per barrel of oil in Indonesia is US $ 18. In fact, some field owners in Indonesia are below US $ 10," he said.

IN INDONESIA

Produksi Blok Cepu 200 Ribu Barel

Saat ini Blok Cepu menyumbang 25% dari target lifting minyak nasional.

Produksi minyak mentah dari lapangan migas Banyu Urip di Blok Cepu terus menunjukkan peningkatan. Tahun lalu produksinya masih berada di kisaran 160 ribu hingga 185 ribu barel per hari (bph), sedangkan pada Agustus ini sudah dapat mencapai 200 ribu bph.

Vice President Public and Goverment Affairs Exxon Mobil Indonesia Eerwin Maryoto mengatakan pihaknya kini sudah mendapatkan analisis mengenai dampak lingkungan (amdal) untuk berproduksi di level 220 ribu bph.

“Pencapaian 200 ribu bph ini berarti sekitar 25% dari target lifing nasional," kata Erwin Marwoto

Blok Cepu dikelola Exxon Mobil dengan tingkat kepemilikan saham 45%, Pertamina EP 45%, dan BUMD 10%. Lapangan migas Banyu UriP diperkirakan memiliki cadangan 729 juta barel dan memiliki masa kontrak pengelolaan hingga 2035.

Produksi Blok Cepu ini memang diharapkan memiliki peran yang lebih besar di saat menurunnya produksi minyak dari blok-blok lain yang telah lebih dulu ada. Untuk diketahui, Blok Rokan (Chevron) yang menjadi penyumbang produksi minyak terbesar kini pada triwulan pertama 2017 hanya memproduksi 230 ribu bph dari sebelumnya di 2016 sebesar 264 ribu bph.

Menteri Energi dan Sumber Daya Mineral Ignasius Jonan saat berkunjung ke Amerika Serikat beberapa waktu lalu berharap agar produksi Blok Cepu bisa mencapai 300 ribu bph.

Menjaga Lifting

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menilai peran dari Pertamina EP sangat  besar untuk bisa membantu mempertahankan lifting minyak Indonesia. Hal itu karena Pertamina EP menguasai blok-blok migas yang relatif besar dari kontraktor kerja sama lainnya.

“Kalau mengandalkan kontraktor yang relatif kecil, akan lebih sulit. Jadi memang kita berharap pada Pertamina EP untuk bisa meningkatkan produksi,” ujar Pengawas Internal SKK Migas, Taslim Z Yunus.

Harus diakui iklim investasi migas di Indonesia khususnya kegiatan eksplorasi dalam beberapa tahun terakhir masih rendah. Pada tahun ini investor migas hanya akan mengebor 32 sumur untuk mencari potensi minyak dan gas baru.

“Padahal sebelum 2014, paling tidak per tahun mencapai 100 sumur," kata Taslim.

Penyebab utama hal itu ialah rendahnya harga minyak mentah dunia yang saat ini berkisar di bawah US$ 50 per barel.

“Hanya investor yang punya duit atau yang punya dana dari laba yang ditahan yang akan mampu melakukan eksplorasi,” katanya.

Oleh karena itu, pihaknya akan melakukan sejumlah upaya untuk meyakinkan para investor di sektor migas, antara lain pendekatan secara personal (one on one).

“Pekan depan setidaknya 10 investor pemilik wilayah kerja akan kita dekati,” katanya.

Berinvestasi di sektor ini di Indonesia masih menjanjikan profit (margin) meski harga minyak mentah sekitar US$50 per barel.

“Masih ada marginnya karena rata-rata biaya produksi per barel minyak di Indonesia itu US$ 18. Bahkan, beberapa pemilik lapangan di Indonesia ada yang di bawah US$ 10,” katanya.

Media Indonesia, Page-17, Monday, August 21, 2017

BPH Migas eyes Bp lt for one-fuel price policy

The Downstream Gil and Gas Regulatory Agency (BPH Migas) has proposed giving Pertamina Rp 1 trillion annually to ease the financial burden of the state-owned oil and gas firm in its quest to fully implement the one-fuel price policy Pertamina needs Rp 5 trillion (US$ 374,27 million) to sell subsidized Premium gasoline and Solar diesel fuel at Rp 6,450 per liter and Rp 5,150 per liter, respectively in 150 locations nationwide, including frontier, outermost and remote areas, known as the 3T regions. It has thus far covered only 22 locations, costing the firm Rp 300 billion in losses.

 The agency’s contribution would come from its annual non-tax revenue (PNBP) totaling Rp 1.2 trillion, BPH Migas head M. Fanshurullah Asa recently said. The PNBP comes from companies transporting or selling fuel or natural gas as stipulated in Government Regulation No. 1/2006.

“Within the past live years, BPH Migas only used about Rp 200 billion of its total PNBP each year. Consequently, the  remaining Rp 1 trillion was just recorded as additional state income,” Fanshurullah said. “So why don’t we use another Rp 1 trillion to help Pertamina develop the infrastructure needed for the one-price fuel policy?”

 The proposed funds from the agency may help Pertamina to expand the coverage of the policy which aims to cut down on the price disparity of fuel between regions across the sprawling archipelago of more than 17,000 islands.

 This year, it needs an estimated Rp 800 billion to support the policy adding to the burden of the energy giant, which last year struggled with financial woes caused by the government’s debt of Rp 22 billion from sales of subsidized 3-kilogram liquefied petroleum gas (LPG) canisters and subsidized Solar diesel as well as an additional Rp 8.4 trillion in debt from gasoline it supplied to the Indonesian Military (TNI) in 2014.

 The government planned to repay its debt from the TNl’s gasoline consumption in the revised 2017 state budget, while the reimbursement for LPG and solar subsidies is outlined in the 2018 budget.

 According to BPH Migas, the 150 locations targeted in the one fuel price policy cover 2,000 districts and 21,000 villages. The additional funds from the agency could be used to develop thousands of new sub-distributors in those locations, with each requiring an investment of between Rp 20 million and Rp 30 million, Fanshurullah said.

“Pertamina’s official gas stations will serve as hubs that supply fuel to sub-distributors there,” he said. The agency also expects the establishment of these sub-distributors to put illegal gasoline kiosks, locally known as “Pertamini,” out of business, particularly in 3T regions. These kiosks often sell fuel above regulated prices.

 To support the plans, the regulator plans to set a maximum profit margin of Rp 500 per liter for all fuel distributors and subdistributors. At present, the profit margin in Premium gasoline sales at gas stations stands at Rp 270 per liter.

“These Pertamini kiosks have actually helped distribute gasoline to many regions out of Pertamina’s reach. However, they are illegal and operate without a proper license,” Fanshurullah explained. 

“Therefore, the middle ground is to develop new sub-distributors that will operate under proper safety standards and regulated margins.”

 Fanshurullah said he expected BPH Migas to realize its plan to transfer a large amount of its revenue to Pertamina next year after first discussing the matter with the Energy and Mineral Resources Ministry and the House of Representatives.

 Pertamina president director Elia Massa Manik said he hoped the plan would materialize as soon as this year to help the firm reduce its mounting financial burdens.

“We are certainly pleased with an additional option to realize the one-price fuel policy One thing for sure is that we have committed to implementing it [the policy] in 150 locations by 2019,” Elia said.

Jakarta Post, Page-18, Monday, August 21, 2017