Gas Not Completed

Energy commodity trading system

The complicated complexity of the Indonesian natural gas system is urgently simplified so that abundant local supplies can be  enjoyed by user industries at affordable prices and supported by sustainable supplies.

The fulfillment of local supply at an affordable price can also prevent Indonesia from importing gas, considering that Indonesia  is a big gas producing country. Currently, part of natural gas production in the country is still exported abroad. However, on the other  hand, some industrial gas users, such as in North Sumatra, still get high relative prices.

One of the solutions offered by the government to solve the gas problem is by issuing Regulation of Minister of Energy and  Mineral Resources No.45 / 2017 which allows State Electricity Company and Independent Power Purchase (IPP) to import liquefied  natural gas (LNG), if gas price in domestic high.

This solution is utilized by PLN by holding Singapore-based company Keppel Offshore & Marine Limited (Keppel O & M) and  Pavilion Energy, although PLN has confirmed it will not import LNG from Singapore in the near future.

The Head of Agreement (HOA) PLN and Keppel signed in Singapore contain three points. First, the preparation of a more indepth feasibility study related to the distribution of liquefied natural gas to the areas of Tanjung Pinang and Natuna.

Second, the drafting of a framework for distributing LNG owned by PLN from PLN's existing contracts with Indonesian domestic  sources to small-scale power plants in Tanjung Pinang and Natuna.

Third, the development of small-scale LNG infrastructure for the Tanjung Pinang and Natuna areas adjacent to Singapore. This  cooperation has sparked speculation in Indonesia that PLN will import liquefied natural gas from Singapore, something ironic considering  Indonesia is the producer.

"There is no gas and Singapore imports. This is just cooperation to build gas infrastructure. However, we have not determined the price  and the value because it is still in the feasibility study phase, "said PLN Central Business Director Amir Rosidin, Monday (11/9).

Utilization of location proximity can streamline operational costs so as to reduce the cost of production in Sumatra. 

Nevertheless, Executive Director of the Essential Service Reform Institute (IESR) Fabby Tumiwa said the HOA, which began with the study  or study, could end up buying gas from Singapore.

"I suspect the HOA is a clause to buy gas from Singapore. Although so far no infrastructure has been built, and could have been canceled, "he said.

He explained, Keppel is a specialization company of oil and gas supporting infrastructure developers, such as rigs, LNG boats,  and others. Meanwhile, Pavilion Energy was established to become a trader of liquefied natural gas in Asia.

"Why does Indonesia import gas and Singapore without gas? Please note that the Pavilion is a gas aggregator company that has worked  with oil and gas companies such as Petronas and others. "

According to Fabby, the government should make gas aggregator to meet domestic gas needs, so there is no need to import  from other countries.

In contrast, the Natural Gas User Industry Forum (FIPGB) welcomed the plan to import gas from Singapore because the price of  energy in the country is still expensive.

"It is okay to import gas, the condition should be cheaper compared to the price of this energy in Indonesia. If domestic gas tariff continues to be unfriendly, imports become one way out" said FIPGB Chairman Achmad Safiun.

Secretary of Directorate General of Oil and Gas Ministry of Energy and Mineral Resources Susyanto said until now there has  been no recommendation of LNG import from Singapore to PLN.

IN INDONESIA

Gas Belum Tuntas

Persoalan Tata niaga gas bumi yang rumit di Indonesia mendesak disederhanakan, sehingga pasokan lokal yang melimpah bisa  dinikmati oleh industri pengguna dengan harga terjangkau dan didukung oleh suplai yang berkelanjutan.

Pemenuhan pasokan lokal dengan harga terjangkau juga dapat menghindarkan Indonesia dari importasi gas, mengingat  lndonesia adalah negara penghasil gas yang cukup besar.  Saat ini, sebagian produksi gas bumi di dalam negeri masih diekspor ke luar  negeri. Namun, di sisi lain, beberapa industri pengguna gas, seperti di Sumatra Utara, masih mendapatkan harga yang relalif tinggi.

Salah satu solusi yang ditawarkan pemerintah untuk mengatasi persoalan gas tersebut adalah dengan mengeluarkan Peraturan  Menteri ESDM No.45/2017 yang membolehkan PT Perusahaan Listrik Negara dan pengembang listrik swasta (Independent Power  Purchase/IPP) mengimpor liquefied natural gas/LNG, jika harga gas di dalam negeri tinggi.

Solusi ini dimanfaatkan oleh PLN dengan menggandeng perusahaan asal Singapura, Keppel Offshore & Marine Limited (Keppel  O&M) dan Pavilion Energy, meskipun PLN telah menegaskan pihaknya tidak akan mengimpor LNG dari Singapura dalam waktu dekat.

Head of Agreement (HOA) PLN dan Keppel yang telah ditandatangani di Singapura berisi tiga hal. Pertama, penyusunan studi  kelayakan yang lebih mendalam terkait dengan distribusi gas alam cair untuk wilayah Tanjung Pinang dan Natuna.

Kedua, pembuatan konsep kerangka kerja untuk mendistribusikan LNG milik PLN dari kontrak eksis PLN dengan sumber  domestik Indonesia ke pembangkit listrik skala kecil di Tanjung Pinang dan Natuna.

Ketiga, pengembangan infrastruktur LNG skala kecil untuk wilayah Tanjung Pinang dan Natuna yang letaknya berdekatan  dengan Singapura. Kerja sama ini sempat menimbulkan spekulasi di Indoesia bahwa PLN akan mengimpor gas alam cair dari Singapura,  sesuatu yang ironis mengingat Indonesia adalah penghasilnya.

“Tidak ada impor gas dan Singapura. Ini hanya kerja sama untuk membangun infrastruktur gas. Namun, kami belum menentukan soal  harga dan nilainya karena ini masih dalam tahap studi kelayakan," tegas Direktur Bisnis PLN Jawa Bagian Tengah Amir Rosidin, Senin  (11/9).

Pemanfaatan kedekatan lokasi dapat mengefisienkan biaya operasional sehingga dapat menurunkan biaya pokok produksi di  Sumatra. Kendati demikian, Direktur Eksekutif Institute Essential Service Reform (IESR) Fabby Tumiwa mengatakan HOA, hal yang diawali  dengan kajian atau studi tersebut, bisa saja berakhir pada pembelian gas dari Singapura.

“Saya menduga HOA ini merupakan klausul untuk membeli gas dari Singapura. Walaupun sejauh ini infrastrukturnya belum dibangun, dan bisa saja dibatalkan,” katanya.

Dia menjelaskan, Keppel merupakan perusahaan spesialisasi pengembang infrastruktur penunjang migas, seperti rig, kapal  LNG, dan Iainnya. Adapun, Pavilion Energy memang didirikan untuk menjadi trader gas alam cair di Asia.

“Mengapa Indonesia justru mengimpor gas dan Singapura yang tidak punya gas? Perlu diketahui bahwa Pavilion itu adalah perusahaan  gas agregator yang telah bekerja sama dengan perusahaan migas seperti Petronas dan lain-lain."

Menurut Fabby, seharusnya pemerintah membuat perusahaan gas agregator untuk memenuhi kebutuhan gas dalam negeri,  sehingga tidak perlu mengimpor dari negara lain.

Sebaliknya, Forum Industri Pengguna Gas Bumi (FIPGB) menyambut positif rencana mengimpor gas dari Singapura karena  harga energi tersebut di Tanah Air masih mahal.

“Boleh saja impor gas, syaratnya harus lebih murah dibandingkan dengan harga energi ini di Indonesia, Jika tarif gas dalam negeri terus  tidak bersahabat, impor menjadi salah satu jalan keluar" kata Ketua Umum FIPGB Achmad Safiun.

Sekretaris Ditjen Minyak dan Gas Bumi Kementerian ESDM Susyanto mengatakan hingga saat ini belum ada rekomendasi  impor LNG dari Singapura untuk PLN.

Bisnis Indonesia, Page-1, Tuesday, Sept 12, 2017.

Taxation still key ob stacle to gross split

Upstream oil and gas investors are still hesitant to fully embrace the government’s revised gross-split scheme as questions on taxations remain unsettled. The recent amendment to the scheme includes greater incentives for contractors in the division of profit  splitting with the government.

While the new rule - namely Energy and Mineral Resources Ministerial Decree No. 52/2017 stipulates that operational costs disbursed by contractors may contribute to the amount of taxes they must pay, it does not specify taxation methods. With such a flaw,  the Indonesian Petroleum Association (IPA) has called on the government to clarify the matter.

IPA president Christina Verchere said that while investors were extremely pleased with the changes made by the government,  uncertainty over the tax issue prevents them from committing to the scheme.

“The IPA [urges] the government to be cautious over creating more uncertainty as it could counter all the good work done to improve the  gross-split mechanism,” she said. “In the end, gross split and taxation impact investor economics.”

Introduced early this year, the gross-split scheme replaces a cost recovery scheme that requires the government to reimburse exploration and exploitation activities conducted by investors.

In a change to the former arrangement, the new scheme has allowed the investors to obtain a base split of 57 percent and 52  percent for oil production and gas production, respectively, which can be adjusted according to the characteristics of the oil or gas field.

The revision is crucial as Indonesia has been grappling with depleting reserves. Official data shows that proven crude oil  reserves in the country dropped to 3.3 billion barrels last year from 3.69 billion in 2013. Moreover, proven gas reserves only reached 101  trillion cubic feet (tcf) in 2016 from 102 tcf three years prior.

Investment in exploration activities, however, were still insignificant, with last year alone seeing only US$ 800 million, down from $1.3  billion in 2012. Responding to the industry’s concerns, Energy and Mineral Resources deputy minister Arcandra Tahar said his office was  working to settle the concerns regarding taxation.

However, the rule will likely be similar to Government Regulation (PP) No. 27/2017 on taxation under cost recovery which provides the  minister with the authority to determine the gross-split sliding scale in a cooperation contract, scrap domestic market obligations (DMO) for investors with approval from the Finance Minister, as well as fiscal incentives.

Arcandra further said that the government was more than open to suggestions from the IPA, and the Finance Ministry had even invited  the latter to discuss its concerns this week.

"The Finance Ministry has invited the IPA to a dialogue on Tuesday to discuss proposals, ideas and input from the Energy and Mineral  Resources Ministry” he said.

World Bank mining specialist Bryan C. Land commended the changes the government had made, but underlined the issue of implementation, which might be trickier than initially projected.

     Moreover, there was a possibility that contract renegotiations would be necessary after submitting the plan of development (POD)  because of the unique economics of each field.

“What I would stress is that while its fiscal aspects partly change, other non-fiscal aspects are veryimportant [.......] Oil companies have  questions on ‘what-ifs,”’ Land said. "So, the more those can be resolved, the better it will become and it is the same challenge for every country. What-ifs create uncertainty”

Jakarta Post, Page-7, Monday, Sept 11, 2017.

PGN Denies Monopoly Gas Industrial Price in Medan

PT Perusahaan Gas Negara (PGN) Tbk continues to provide explanations to the Business Competition Supervisory Commission (KPPU) concerned alleged PGN monopoly in gas pricing in Medan, North Sumatra.

KPPU is examining the practice of brokering that allegedly made the selling price of industrial gas in Medan area expensive.  PGN is one of the companies examined. Head of Marketing PGN Adi Munandir said, PGN continues to provide explanations and the  company works in accordance with the regulations issued by the government. Gas prices in Medan are all set by the Ministry of ESDM  through a Ministerial Decree. PGN has followed all the rules.

"We are not involved in the practice of monopoly or gas brokering in Medan, and the KPPU also has not found strong evidence," he said  in Cisarua, Bogor.

The price of gas in North Sumatra has reached US $ 12 per mmbtu and many industry players in Medan are complaining. PGN  only requested a tariff of US $ 1.35 per mmbtu for pipeline management of 600 km, while the remaining US $ 11 is a cost component  from upstream such as distribution.

It has followed the Minister of Energy and Mineral Resources decree No. 19 of 2009 and the price component is very  transparent.

"The gas price from PGN is very clear and it is not possible to engage in fraudulent practices," he said.

Based on the latest information obtained by PGN, KPPU has started checking gas traders without infrastructure. KPPU continues to seek information and reports about traders. Previously, the Ministry of Industry (Kemenperin) proposed industrial area can  import gas directly.

Minister of Industry Airlangga Hartarto said direct gas imports were proposed, as industrial estates did not receive special gas  allocations or gas price discounts, as previously requested. Later, the price of gas is left to each industrial area.

"So it will depend on import prices and the managers of each industrial area," said Airlangga.

The Ministry of Industry also assesses that the price of gas for the steel industry is still too expensive, although it has been cut  from US $ 7.35 to US $ 6 per mmbtu. Therefore, the Ministry of Industry proposes that the price of steel industry gas will be cut by 31-47% to US $ 3-4 per mmbtu to increase production.

The high gas price makes PT Krakatau Steel Tbk (KS), the largest national steel producer, has not yet operated its crude iron and  steel (slab and billet) factories. As a result, most domestic slab and billet requirements are obtained from imports.

IN INDONESIA

PGN Bantah Monopoli Harga Gas Industri di Medan

PT Perusahaan Gas Negara (PGN) Tbk terus memberikan penjelasan kepada Komisi Pengawas Persaingan Usaha (KPPU) terkait dugaan monopoli PGN dalam penetapan harga gas di wilayah Medan, Sumatera Utara.

KPPU sedang memeriksa praktik percaloan yang diduga membuat harga jual gas industri di wilayah Medan mahal. PGN  termasuk salah satu perusahaan yang diperiksa. Head of Marketing PGN Adi Munandir mengatakan, PGN terus memberikan penjelasan  dan perusahaan bekerja sudah sesuai dengan peraturan yang dikeluarkan pemerintah. Harga gas di Medan semuanya ditetapkan  Kementerian ESDM melalui keputusan Menteri. PGN sudah mengikuti semua aturan tersebut.

“Kami tidak terlibat praktik monopoli atau percaloan gas di Medan, dan KPPU juga belum menemukan bukti yang kuat,” ujar dia di  Cisarua, Bogor.

Harga gas di Sumatera Utara pernah mencapai US$ 12 per mmbtu dan pelaku industri di Medan banyak yang mengeluh. PGN  hanya meminta tarif US$ 1,35 per mmbtu untuk pengelolaan pipa sepanjang 600 km, sedangkan sisanya US$ 11 merupakan komponen  biaya dari hulu seperti distribusi.

Pihaknya sudah mengikuti keputusan Menteri ESDM Nomor 19 tahun 2009 dan komponen harganya sangat transparan. 

“Harga gas dari PGN sangat jelas dan tidak mungkin terlibat praktik curang,” ujar dia.

Berdasarkan informasi terbaru yang didapat PGN, KPPU sudah mulai memeriksa trader gas tanpa infrastruktur. KPPU terus  mencari keterangan dan laporan tentang trader. Sebelumnya, Kementerian Perindustrian (Kemenperin) mengusulkan kawasan industri dapat mengimpor gas secara langsung. 

Menteri Perindustrian Airlangga Hartarto mengatakan, impor gas langsung diusulkan, karena kawasan industri tidak  mendapatkan alokasi gas khusus maupun diskon harga gas, seperti yang diminta sebelumnya. Nantinya, harga gas diserahkan kepada  masing-masing kawasan industri.

“Jadi nanti tergantung harga impornya dan pengelola masing-masing kawasan industri,” kata Airlangga.

Kementerian Perindustrian juga menilai, harga gas untuk industri baja masih terlalu mahal, kendati telah dipangkas dari US$  7,35 menjadi US$ 6 per mmbtu. Oleh sebab itu, Kementerian Perindustrian mengusulkan harga gas industri baja dipangkas lagi berkisar 31-47% menjadi US$ 3-4 per mmbtu untuk menaikkan produksi.

Harga gas yang masih tinggi membuat PT Krakatau Steel Tbk (KS), produsen baja terbesar nasioal, belum juga mengoperasikan  pabrik besi dan baja kasar (slab dan billet). Alhasil, kebutuhan slab dan billet domestik mayoritas diperoleh dari impor.

Investor Daily, Page-8, Monday, Sept 11, 2017.

IRR Oil and Gas Project Expected to Increase Up to 6.55%

7 contract immediately signed

The internal rate of return (IRR) of the oil and gas block using the gross spree contract refers to the Minister of Energy and  Mineral Resources Regulation No. 52/2017, no less competitive than referring to cost recovery contract. The IRR rate is predicted to rise  by 6.55%. Following the issuance of this new regulation, seven oil and gas contracts were signed shortly in early October.

EMR Deputy Minister of Energy and Mineral Resources, Arcandra Tahar, said that in simulations that have been conducted on  several oil and gas blocks, the actual results show that IRR gross split contract is better than cost recovery. This condition is much better  than when the gross split contract is still referring to the old rule, namely Ministerial Regulation 8/20 2017. In this simulation seen, once  the reference is changed to Ministerial Regulation 52/2017, IRR oil and gas blocks rose significantly.

In some oil and gas blocks, the IRR increase is about 2-5%. However, there are also oil and gas blocks in the IRR this drastically  up by 12%. However, this oil and gas IRR averaged an increase of 6.55%.

"We modified one of the progressive split components, namely the cumulative oil and gas production. Then, add new component of  progressive split, that is price We also improve split variable based on field characteristic he said.

This refinement is called to answer the complaints and suggestions of oil and gas companies. Referring to Ministerial Regulation  8/2017, the contractor's split of the initial five years is far below the contract with the cost recovery scheme, from about 90% to 80%.  Although, the contractor's allocation in the gross split contract will then be better than cost recovery in subsequent years.

"We have to make the contractor's share in the first five years not much different from the cost recovery system and after that be better  than cost recovery," said Arcandra.

He specifies that there are eight points of improvement in Ministerial Regulation 52 / 2017. In detail, on the cumulative factor  of production there is an additional split up to 10%, from the split production phase can rise up to 10%, the existence of a plan of  development (POD 2) split 3%, from split hyodgers sulphide (H2S) split could increase to 5%, and infrastructure availability factor could  boost split up to 4%.

Not only that, the additional split as an impact of oil and gas price movements is calculated based on the formula. This makes  the oil and gas company a chance to get an additional 11.25% split on oil prices of US $ 40 per barrel and 5% when its gas price is only US  $ 5 per million British thermal units (mmbtu).

"We also open the split limit that can be given from ministerial discretion so that oil and gas blocks can be developed economically" he  said. 

This is to avoid any oil and gas blocks that the government wants to develop, but can not be economical after all incentives are given. World Bank Mining Expert Bryan C Land revealed that the economy of the oil and gas blocks is significant if the gross split  contract refers to Ministerial Regulation 8/20 2017. However, the revised beleid has made the IRR and nett present value (NPV) of oil and  gas blocks no worse than contract costs recovery, even in some cases can be higher.

Of course it remains to be seen whether efficiency is successful, but at least incentives are available, "he said. Only, he saw that  the implementation of gross split contract would be difficult to implement. The current gross split system is too complicated and its  implementation may not be as expected. Especially with the unique condition of each oil and gas block and additional split through the  minister's discretion, then it is possible that each contract should be renegotiated when POD is submitted.

"Then, the revision of this fiscal regime needs to be followed by improvements in the non-fiscal regime if Indonesia wants to attract more  upstream oil and gas investment," said Bryan.

Wait for Taxation

Chairman of the Indonesian Petroleum Association (IPA) Christina Verchere states, changes in Ministerial Regulation 52/2017  quite enhance Indonesia's competitiveness in the oil and gas sector. However, it is waiting for certainty and clarity about the mechanism  of taxation that will be applied in this gross split contract. It asked the government to be careful in preparing this taxation mechanism so  as not to arise uncertainty.

"In the end, gross split and taxation contracts will have an impact on investors' economics," he said.

Arcandra said, the economic model used to compile the gross split tax refers to Government Regulation No. 27 of 2017.  However, PP 27/2017 itself only regulates taxation on oil and gas contract cost recovery. The latest progress in the preparation of the tax-free beleid of the gross split is the Ministry of Finance will invite the IPA.

 "The IPA will be invited to dialogue about the proposal we have submitted to the Ministry of Finance and convey its views," he said.

In his proposal, his party said that IPA wants a tax mechanism that is not much different from PP 27 / 2017. In line with  Christina, President Director of PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi also ask for tax certainty.

According to him, by using Ministerial Regulation 52/2017, the termination block assigned to his side is quite economical. It is  noted that there is no tax treatment and asset rental cost equal to Offshore North West Java (ONWJ) Block.

"This means that the tax remains 36.25% consisting of PPH, if the VAT and PBB remain," he said.

While the asset lease pegged 3-5% multiplied fair value plus 70% discount. Previously, Pertamina through PT Pertamina Hulu  Energi has signed offshore oil contracts Offshore North Westjava using a gross split contract. However, this block contract refers to the old  regulation, Ministerial Regulation 8/2017.

After the contract was signed earlier this year, the split block has been revised to be higher because to boost its economy, from  57.5% to 73.5% for oil and 62.5% to 81% for gas. Together with the split increase, Pertamina Hulu Energi becomes more aggressive in its  investment.

Ready to Sign Contract

Gunung Sarjono added that his side is ready to sign the termination block contract assigned to him. It has submitted a proposal  for the development of these blocks to the ESDM Ministry. Then, with the issuance of Ministerial Decree 52/2017, the five blocks handed  over to PHE have already reached a sufficient economy.

"So there is an additional split 67% (with Ministerial Regulation 52/2017) .If we see from the contractor take and NPV better," he said, his  side will also continue to make efficiency.

He said the economy of the oil and gas block with the scheme of gross split contract can be achieved in two ways. First, the  contractor makes efficiency. Secondly, if a split addition of vaxiabel split and progressive split can not boost the economy, the contractor  may request an additional which is a ministerial discretion.

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); Ogan Komering Block, South Sumatera (JOB Pertamina- Talisman); Sanga-Sanga Block, East Kalimantan (Saka Energy, Southeast Sumatra Block (SES), Lampung (CNOOC SES Limited); Central  Block, East Kalimantan (Total E & P Indonesie); Attaka Block, East Kalimantan (Chevron), East Kalimantan Block (Chevron ) and North Sumatra Offshore Block, Aceh (Pertamina).

PHE will manage five blocks, namely Tuban Block, Ogan Komering, South-east Sumatra, Lampung and North Sumatra Offshore.  The other two blocks will be managed by a new subsidiary of PT Pertamina, PT Pertamina Hulu Indonesia (PHI). The entire block, said  Gunung, will be signed in the near future. "The eight blocks are targeted (signature contract) in late September or early October," he  explained.

Head of Special Unit for Oil and Gas Business Activities (SKK Migas) Amien Sunaryadi said that currently there is only one block  using the gross split contract. In the future, oil and gas block with cost recovery contract will decrease due to switch to gross split.

IN INDONESIA

IRR Proyek Migas Diperkirakan Naik Hingga 6,55 %

Tingkat pengembalian modal (internal rate of return/IRR) blok migas yang menggunakan kontrak gross sp/it mengacu  Peraturan Menteri ESDM No 52/2017, tidak kalah kompetitif jika dibandingkan mengacu kontrak cost recovery. Tingkat IRR diprediksi  bisa naik sekitar 6,55%. Pasca terbitnya aturan baru ini, tujuh kontrak migas segera diteken pada awal Oktober.

Wakil Menteri ESDM Arcandra Tahar mengatakan, dalam simulasi yang telah dilakukan pada beberapa blok migas, hasil simulai  justru menunjukkan IRR kontrak gross split lebih baik dibandingkan dengan cost recovery. Kondisi ini jauh lebih baik dibandingkan ketika  kontrak gross split masih mengacu aturan lama, yakni Peraturan Menteri 8/ 2017. Pada simulasi ini terlihat, begitu acuannya diubah  menjadi Peraturan Menteri 52/ 2017, IRR blok migas naik signifikan. 

Di beberapa blok migas, kenaikan IRR sekitar 2-5%. Namun, ada juga blok migas yang dalam siMulasi ini IRR-nya naik drastis  hingga 12%. Namun, IRR blok migas ini rata-rata naik 6,55%.

“Kami memodifikasi salah satu komponen progressive split, yakni kumulatif produksi migas. Kemudian, menambah komponen baru  progressive split, yaitu harga Kami juga memperbaiki variabel split berdasarkan karakteristik lapangan kata dia.

Perbaikan ini disebutnya untuk menjawab keluhan dan saran perusahaan migas. Pasalnya, mengacu Peraturan Menteri 8/ 2017, bagi hasil (split) kontraktor pada lima tahun awal memang jauh di bawah kontrak dengan skema cost recovery, yakni dari sekitar 90% ke 80%. Walaupun, jatah kontraktor dalam kontrak gross split ini kemudian akan lebih baik dibanding cost recovery di tahun-tahun  berikutnya.

“Kami harus membuat bagi hasil kontraktor pada lima tahun pertama tidak beda jauh dengan sistem cost recovery dan setelah itu  menjadi lebih baik dari cost recovery,” ujar Arcandra. 

Dia merinci, terdapat delapan poin perbaikan dalam Peraturan Menteri 52/ 2017. Rincinya, pada faktor kumulatif produksi  terdapat tambahan split hingga 10%, dari fase produksi split bisa naik hingga 10%, adanya rencana pengembangan lanjutan (plan of  development/ POD 2) menambah split 3%, dari kandungan hirodgen sulfida (H2S) split bisa meningkat sampai 5%, dan faktor  ketersediaan infrastruktur bisa mendongkrak split hingga 4%.

Tidak hanya itu, tambahan split sebagai dampak pergerakan harga minyak dan gas dihitung berdasarkan formula. Hal ini  membuat perusahaan migas berkesempatan mendapat tambahan split 11,25% pada harga minyak US$ 40 per barel dan 5% ketika harga  gas miliknya hanya US$ 5 per juta british thermal unit (mmbtu).

“Kami juga membuka batasan split yang bisa diberikan dari diskresi menteri sehingga blok migas bisa dikembangkan secara ekonomis"  tuturnya. Hal ini untuk menghindari adanya blok migas yang pemerintah ingin kembangkan, namun tidak bisa ekonomis setelah semua  insentif diberikan.

Ahli Pertambangan Bank Dunia Bryan C Land mengungkapkan, keekonomian blok migas turun signifikan jika kontrak gross split  mengacu pada Peraturan Menteri 8/ 2017. Namun, revisi beleid yang dilakukan telah membuat IRR dan nett present value (NPV) blok  migas tidak lebih buruk dari kontrak cost recovery, bahkan dalam beberapa kasus bisa lebih tinggi. 

Tentu saja masih harus diperhatikan apakah efisiensi berhasil dilakukan, tetapi setidaknya insentif sudah tersedia,” ujarnya.  Hanya saja, dia melihat bahwa penerapan kontrak gross split bakal sulit di implementasikan. Sistem gross split saat ini terlalu rumit dan  penerapannya bisa jadi tidak sesuai harapan. Terlebih dengan kondisi unik setiap blok migas dan tambahan split melalui diskresi menteri,  maka ada kemungkinan setiap kontrak harus direnegosiasi ketika POD diajukan.

“Kemudian, revisi rezim fiskal ini perlu diikuti dengan perbaikan di rezim non-fiskal jika Indonesia ingin menarik lebih banyak investasi  hulu migas,” tegas Bryan.

Tunggu Perpajakan

Ketua Indonesian Petroleum Association (IPA) Christina Verchere menyatakan, perubahan dalam Peraturan Menteri 52/2017  cukup meningkatkan daya saing Indonesia di sektor migas. Namun, pihaknya menunggu kepastian dan kejelasan soal mekanisme  perpajakan yang akan diterapkan dalam kontrak gross split ini. Pihaknya meminta pemerintah berhati-hati dalam menyusun mekanisme  perpajakan ini agar tidak timbul ketidakpastian.

“Pada akhirnya, kontrak gross split dan perpajakan akan berdampak pada keekonomian investor,” kata dia. 

Arcandra menuturkan, model ekonomi yang digunakannya untuk menyusun pajak gross split mengacu pada Peraturan  Pemerintah No 27 Tahun 2017. Namun, PP 27/2017 sendiri hanya mengatur perpajakan pada kontrak migas cost recovery. Progres  terbaru penyusunan beleid pajak gross split ini yakni Kementerian Keuangan akan mengundang IPA.

 “IPA akan diajak berdialog tentang proposal yang telah kami masukkan ke Kementerian Keuangan dan menyampaikan pandangannya,”  tuturnya.

Dalam proposalnya, pihaknya menyampaikan bahwa IPA menginginkan mekanisme pajak yang tidak jauh berbeda dengan PP  27/ 2017. Senada dengan Christina, Presiden Direktur PT Pertamina Hulu Energi (PHE) Gunung Sardjono Hadi juga meminta kepastian perpajakan.

Menurutnya, dengan menggunakan Peraturan Menteri 52/ 2017, blok terminasi yang ditugaskan ke pihaknya sudah cukup  ekonomis. Hal ini dengan catatan tidak ada perlakuan pajak dan biaya sewa aset sama dengan Blok Offshore North West Java (ONWJ).

“Artinya tax tetap 36,25% yang terdiri dari PPH, kalau PPN dan PBB tetap,” ujarnya. 

Sementara sewa aset dipatok 3-5% dikali fair value ditambah diskon 70%. Sebelumnya, Pertamina melalui PT Pertamina Hulu  Energi telah meneken kontrak migas Blok Offshore North Westjava menggunakan kontrak gross split. Namun, kontrak blok ini mengacu  pada peraturan lama, yakni Peraturan Menteri 8/2017. 

Pasca kontrak diteken awal tahun, split blok ini telah direvisi menjadi lebih tinggi lantaran untuk mendongkrak keekonomiannya, yakni dari 57,5% menjadi 73,5% untuk minyak dan 62,5% menjadi 81% untuk gas. Bersama dengan kenaikan split,  Pertamina Hulu Energi menjadi lebih agresif dalam investasi.

Siap Teken Kontrak

Gunung Sarjono menambahkan pihaknya siap meneken kontrak blok terminasi yang ditugaskan kepadanya. Pihaknya telah  mengirimkan proposal rencana pengembangan blok-blok ini kepada Kementerian ESDM. Kemudian, dengan terbitnya Peraturan Menteri  52/2017, lima blok yang diserahkan pengelolaannya ke PHE sudah mencapai keekonomian yang mencukupi.

"Jadi ada tambahan split 67% (dengan Peraturan Menteri 52/ 2017). Ini kalau kami lihat dari contractor take maupun NPV lebih bagus,”  kata dia, Pihaknya juga akan terus melakukan efisiensi.

Dikatakannya, keekonomian blok migas dengan skema kontrak gross split ini dapat dicapai dengan dua cara. Pertama,  kontraktor melakukan efisiensi. Kedua, jika memang tambahan split dari vaxiabel split dan progressive split tidak dapat mendongkrak  keekonomian, kontraktor dapat meminta tambahan yang merupakan diskresi menteri.

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).

PHE akan mengelola lima blok, yaitu Blok Tuban, Ogan Komering, South-east Sumatera, Lampung, dan North Sumatera  Offshore. Sementara dua blok lainnya akan dikelola anak usaha PT Pertamina yang baru, yakni PT Pertamina Hulu Indonesia (PHI).  Seluruh blok tersebut, kata Gunung, akan diteken kontraknya dalam waktu dekat “Delapan blok itu targetnya (tanda tangan kontrak)  akhir September atau awal Oktober,” jelasnya.

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Minyak dan Gas Bumi (SKK Migas) Amien Sunaryadi mengatakan, saat  ini memang hanya satu blok yang menggunakan kontrak gross split. Ke depannya, blok migas dengan kontrak cost recovery akan  semakin berkurang karena beralih ke gross split.

Investor Daily, Page-7, Monday, Sept 11, 2017.

Lemigas Will Determine the Fate of Kepodang

The decision of Petronas Carigali Muriah Ltd to set Kepodang Field in force majeure or majeure in July 2017 then got many puzzles. The cause of force majeure is that production continues to decline. Currently Lemigas-Oil Research and Development Center for  Oil and Gas Technology-is conducting an investigation into the incident.

The puzzle is because the field in Muriah Block, Central Java has just been produced in August 2015, but it is predicted to be  empty in 2018. Indicator, production continues to decline from initially 116 mmscfd to 80 mmscfd.

Head of Program and Communication Division SKK Migas Wisnu Prabawa Taher is still reluctant to explain more related to the  circumstances of this force majeure. It is still awaiting the study which is still being carried out by Lemigas.

"Still waiting for the latest study on subsurface, we will update soon,"

While Vice Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said it has not received reports from Lemigas, so can not take action.

"It may still be evaluated.Waiting for subsurface of Lemigas after that we can act," he said.

Bambang Widarsono, Head of Oil and Gas Research and Technology Center Lemigas has not replied to confirm when the  completion of the investigation on Kepodang.

Senior Manager of Corporate Affairs & Administration Petrnonas Carigali Indonesia Andiono Setiawan disclosed Kepodang  related issues, it will discuss and coordinate with PT Perusahaan Lislirik Negara (PLN) and PT Kalimantan Java Gas, a joint venture of PT  Perusahaan Gas Negara (PGN) and PT Bakrie and Brothers Tbk as owner of Kalija pipeline.

"Whatever the outcome of Lemigas, we wait," he said.

Meanwhile, Executive Director of Reforminer Institute Komaidi Notonegoro argues, force majeure is the state of the parties in the contract that can not meet the obligations, because things that can not be predicted. For example, natural disasters, national  emergencies, or similar events.

If gas pressure is lacking due to unforeseen circumstances (force majeure) and Petronas can prove it, it should not be penalized  from PLN.

"But if the gas pressure is less because it is not the unexpected situation, Petronas is responsible," he explained.

IN INDONESIA

Lemigas Akan Tentukan Nasib Kepodang

Keputusan Petronas Carigali Muriah Ltd monetapkan Lapangan Kepodang dalam keadaan force majeure atau kahar pada Juli  2017 lalu mendapat banyak teka-teki. Penyebab force majeure adalah produksinya terus menurun. Saat ini Lemigas-Pusat Penelitian dan  Pengembangan Teknologi Minyak dan Gas Bumi-sedang melakukan investigasi atas kejadian itu.

Teka-teki itu lantaran lapangan di Blok Muriah, Jawa Tengah ini baru saja produksi Agustus 2015, tapi diprediksi kosong pada  tahun 2018. Indikatornya, produksi terus menurun dari awalnya 116 mmscfd menjadi 80 mmscfd.

Kepala Divisi Program dan Komunikasi SKK Migas Wisnu Prabawa Taher masih enggan menjelaskan lebih banyak terkait  keadaan force majeure ini. Pihaknya masih menunggu kajian yang masih terus dilakukan oleh Lemigas. 

"Masih menunggu kajian terbaru mengenai subsurface, nanti secepatnya akan kita update," 

Sementara Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, pihaknya belum menerima  laporan dari Lemigas, jadi belum bisa melakukan tindakan. 

"Mungkin masih dievaluasi. Menunggu subsurface dari Lemigas setelah itu kita bisa bertindak," katanya.

Bambang Widarsono, Kepala Pusat Penelitian dan Teknologi Minyak dan Gas Bumi Lemigas belum membalas konfirmasi  kapan  selesainya investigasi pada Kepodang.

Senior Manager Corporate Affair  & Administration Petrnonas Carigali Indonesia Andiono Setiawan mengungkapkan terkait  masalah Kepodang, pihaknya akan diskusi dan koordinasi dengan PT Perusahaan Lislirik Negara (PLN) dan PT Kalimantan Jawa Gas,  perusahaan patungan PT Perusahaan Gas Negara (PGN) dan PT Bakrie and Brothers Tbk sebagai pemilik pipa Kalija. 

"Yang pasti apapun hasil dari Lemigas, kami tunggu," ungkap dia.

Sementara itu, Direktur Eksekutif Reforminer Institute Komaidi Notonegoro berpendapat, force majeure merupakan keadaan  pihak-pihak dalam kontrak yang tidak dapat memenuhi kewajiban, karena hal-hal yang tidak dapat diprediksi. Misalnya, bencana alam,  keadaan darurat nasional, atau peristiwa-peristiwa sejenis itu. 

Jika tekanan gas yang kurang karena hal tidak diduga (force majeure) dan Petronas bisa membuktikan, seharusnya tidak bisa  dikenakan penalti dari PLN. 

"Tapi kalau tekanan gas kurang karena bukan keadaan yang tidak diduga itu, Petronas yang tanggungjawab," terangnya.

Kontan, Page-18, Monday, Sept 11, 2017.

KKKS Still Evaluate the Auction of 15 Oil and Gas Blocks

The Cooperation Contract Contractor (KKKS) is still likely to evaluate its participation in the 15-block oil and gas auction that has been offered since last May 2017. Whereas the Regulation of the Minister of Energy and Mineral Resources (ESDM) regarding gross  split has been revised some time ago.

Erwin Maryoto, Vice President of Public and Government Affairs of ExxonMobil Indonesia, said it appreciated the government's  efforts to revise the gross split scheme. "The government is listening to our inputs, it will be very interesting," Erwin said last week.

To that end, EXXonMobil continues to evaluate the oil and gas blocks offered.

"We see which one fits our portfolio, ExxonMobil has certain criteria, not just economical, but look at where the oil or gas focus is," he  said.

President Director of Indonesian Petroleum Association (IPA) Christina Verchere said investment decisions in upstream oil and  gas will be handed over to each oil and gas company.

"We look forward to the best for members who follow this year's auction as well as contract renewal negotiations," Christina said.

President and General Manager of Total EP Indonesia Arividya Novianto said, it is still evaluating the auction of oil and gas  blocks this year. ESDM Ministry itself finally on Friday (8/9) gives blessing for Total EP gets 39% stake Mahakam. In the near future, Total  EP will get an official letter about it.

IN INDONESIA

KKKS Masih Mengevaluasi Lelang 15 Blok Migas

Kontraktor Kontrak Kerja Sama (KKKS) tampaknya masih akan mengevaluasi keikutsertaannya dalam lelang 15 blok migas yang  sudah ditawarkan sejak Mei 2017 lalu. Padahal Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) mengenai gross split sudah  direvisi beberapa waktu lalu.

Erwin Maryoto, Vice President Public and Goverment Affairs ExxonMobil Indonesia, mengatakan, pihaknya menghargai upaya  pemerintah merevisi skema gross split. "Pemerintah mendengarkan berbagai masukan kami. Ini akan sangat menarik," kata Erwin pekan  lalu.

Untuk itu, EXXonMobil terus melakukan evaluasi blok-blok migas yang ditawarkan. 

"Kami melihat mana yang cocok dengan portofolio kami. ExxonMobil memiliki kriteria tertentu, tidak hanya ekonomis, tapi melihat  minyak atau gas fokusnya di mana," ujarnya.

Presiden Direktur Indonesian Petroleum Association (IPA) Christina Verchere mengatakan, keputusan investasi di hulu migas  Indonesia akan diserahkan ke masing-masing perusahaan migas. 

"Kami mengharapkan yang terbaik bagi anggota yang mengikuti lelang tahun ini dan juga negosiasi perpanjangan kontrak," kata  Christina.

Presiden dan General Manager Total EP Indonesia Arividya Novianto bilang, pihaknya masih mengevaluasi lelang blok migas  tahun ini. Kementerian ESDM sendiri akhirnya pada Jumat (8/9) memberikan restu bagi Total EP mendapat 39% saham Mahakam. Dalam  waktu dekat, Total EP akan mendapatkan surat resmi soal itu.

Kontan, Page-18, Monday, Sept 11, 2017.

Gross Split Higher Return Guarantee

The Ministry of Energy and Mineral Resources (ESDM) has revised the ministerial regulation on oil and gas revenue sharing. The  government provides eight incentives to oil and gas contractors for investment in upstream oil and gas more attractive. Executive Director  of Reforminer Institute Komaidi Notonegoro rate, the revision of the rules on gross split gives a positive sentiment for the oil and gas  investment climate. The difference lies in the velocity side of the money that the contractor earns.

Nevertheless, the new regulation provides a better guarantee of the internal rate of return (IRR) that still attracts investors to  explore new oil and gas fields.

"It is not as fast as cost recovery, but if the new regulation says that the IRR will be positive, I think the contractor can guarantee the  profit," said Komaidi.

The government and contractors should indeed benefit from oil and gas investment. From the government side, state revenues  increase, while contractors still benefit from investment in upstream oil and gas sector to continue to explore new oil fields.

"If you only see the exploitation side of the source of tax revenue and do not think about the interests of investors, tax revenues from oil  and gas will remain slow" Komaidi said.

The government has indeed calibrated 12 oil and gas fields to provide higher IRR. The lowest IRR rate was set at 2.1 percent to  a high of 15.7 percent. The addition of IRR is done through a larger gross split scheme of 6.5 percent of the old gross split.

Thus, the average IRR obtained in the new gross split is 28.8 percent, the IRR is higher than the average IRR when using a cost  recovery system that is only 24.8 percent.

President of the Indonesian Petroleum Association (IPA) Christina Verchere appreciated the revision of the rule. According to  Christina, oil and gas investment is closely related to the business climate, legal certainty, and competitive fiscal issues.

The decline in the profitability of oil and gas business makes investors more selective in investing their capital. Only oil and gas  projects with competitive returns will be done. With the change in the rules of profit sharing, Christina believes the competitiveness of oil  and gas industry in Indonesia is increasing.

Appreciation is also given for incentive increment to contractors in addition to progressive split (in gas prices), as well as a  progressive split increase in the early stages of production. Christina also appreciated the incentives for the development of the field  beyond the initial plan of development.

"We are also pleased that the option of contract type for PSC extension is still maintained," he added.

IPJ Executive Director Marjolijn Wajong assessed that the new scheme of gross split is more interesting than ever before.  However, contractors are still recalculating when compared to cost recovery.

"Every field is different, some are better, some are lower, some are big," Marjolijn said.

IN INDONESIA

Gross Split Jamin Return Lebih Tinggi

Kementerian Energi dan Sumber Daya Mineral (ESDM) telah merevisi peraturan menteri tentang bagi hasil migas. Pemerintah  memberikan delapan insentif kepada kontraktor migas agar investasi di hulu migas lebih menarik. Direktur Eksekutif Reforminer Institute  Komaidi Notonegoro menilai, revisi aturan tentang gross split tersebut memberikan sentimen positif bagi iklim investasi migas. Perbedaan terletak pada sisi perputaran uang yang diperoleh kontraktor.

Meski demikian, peraturan baru itu memberikan jaminan tingkat pengembalian biaya investasi (internal rate of return/IRR)  yang Iebih baik sehingga masih menarik investor untuk melakukan eksplorasi lapangan migas baru.

"Memang (balik modal dengan metode gross split) tidak secepat cost recovery. Tapi, kalau di peraturan baru dikatakan bahwa IRR akan  positif, saya kira kontraktor sudah dapat jaminan akan untung,” kata Komaidi.

Pemerintah dan kontraktor memang harus diuntungkan dalam investasi migas. Dari sisi pemerintah, penerimaan negara  bertambah, sedangkan kontraktor tetap mendapat keuntungan dari investasi di sektor hulu migas agar tetap mau mengeksplorasi Iadang  minyak baru.

"Kalau hanya melihat sisi eksploitasi yang menjadi sumber penerimaan pajak dan tidak memikirkan kepentingan investor, penerimaan  pajak dari migas akan tetap lambat" kata Komaidi.

Pemerintah memang telah melakukan kalibrasi terhadap 12 lapangan migas untuk memberikan IRR yang lebih tinggi. Tingkat  IRR terendah ditetapkan 2,1 persen hingga yang tertinggi 15,7 persen. Penambahan IRR dilakukan melalui skema gross split yang lebih  besar 6,5 persen dari gross split lama.

Dengan begitu, rata-rata IRR yang didapatkan pada gross split baru sebesar 28,8 persen, IRR tersebut lebih tinggi dibandingkan  rata-rata IRR saat menggunakan sistem cost recovery yang hanya 24,8 persen.

Presiden Indonesian Petroleum Association (IPA) Christina Verchere mengapresiasi revisi aturan tersebut. Menurut Christina,  investasi migas terkait erat dengan iklim usaha, kepastian hukum, dan persoalan fiskal yang kompetitif.

Penurunan tingkat keuntungan dari bisnis migas membuat investor semakin selektif menanamkan modalnya. Hanya proyek  migas dengan imbal hasil kompetitif yang akan dikerjakan. Dengan perubahan aturan tentang bagi hasil tersebut, Christina meyakini daya  saing industri migas di Indonesia semakin meningkat. 

Apresiasi juga diberikan untuk kenaikan insentif kepada kontraktor penambahan progressive split (dalam harga gas), serta  kenaikan progressive split pada tahap awal produksi. Christina juga mengapresiasi adanya insentif untuk pengembangan Iapangan di Iuar  rencana pengembangan (plan of development) awal. 

"Kami juga senang opsi tipe kontrak untuk PSC perpanjangan masih dipertahankan,” imbuhnya.

Direktur Eksekutif IPA Marjolijn Wajong menilai, skema baru gross split lebih menarik dibandingkan sebelumnya. Namun,  kontraktor masih melakukan kalkulasi ulang jika dibandingkan dengan cost recovery. 

"Setiap lapangan pasti berbeda. Ada yang Iebih bagus, ada yang lebih rendah, ada yang besar" kata Marjolijn.

Jawa Pos, Page-6, Monday, Sept 11, 2017