Kepodang Force Majeure, Petronas Carigali Muriah Ltd Must Take Responsibility

The gas depreciation of Kepodang Field in Muriah Block still leaves a question mark. Although Petronas calls gas depreciation as force majeure, energy observers judge the Malaysian government company to be responsible for the conditions.

Fahmi Radi, Energy Observer from Gadjah Mada University, argues that if Petronas is a contractor proposing a plant of development (POD) then they should be responsible for the gas shrinkage claimed by the force.

"So did the parties agree on POD," he said.

Furthermore, Fahmi suspects that there are conspiracy efforts in the establishment of gas reserves in the POD that are not in accordance with gas reserves in the field. The production capacity proposed in the POD of 116 mmscfd is estimated to be exhausted in 2021.  While with the status of that field, gas field Kepodang will run out in 2018.

Jugi Prajogio, a member of the Downstream Oil and Gas Regulatory Agency (BPH Migas) Committee, said that the field headquarters of Kepodang kahar field is still a debate between Kalimantan Gas (KJG) and Petronas.

"BPH Migas is trying to work out how to utilize this pipeline in the future," he said.

Blogger Agus Purnomo in Petronas Carigali

Information only, Petronas Carigali Muriah Ltd. is the owner of 80% of Kepodang Field shares. PT Perusahaan Gas Negara Tbk  through PT Saka Energi Indonesia owns 20% of the remaining shares.

IN INDONESIA

Kepodang Kahar, Petronas Carigali Muriah Ltd Harus Bertanggung Jawab

Penyusutan gas Lapangan Kepodang di Blok Muriah masih meninggalkan tanda tanya. Biarpun Petronas menyebut penyusutan  gas sebagai force majeure atau kahar, pengamat energi menilai perusahaan Pemerintah Malaysia itu harus bertanggung jawab atas  kondisi yang terjadi.

Fahmi Radi, Pengamat Energi dari Universitas Gadjah Mada berpendapat, kalau Petronas merupakan kontraktor yang  mengajukan plant of development (POD) maka mereka harus bertanggung jawab atas terjadinya penyusutan gas yang diklaimnya kahar  itu. 

"Begitu juga yang pihak menyetujui POD," ujar dia

Lebih dari itu, Fahmi menduga ada upaya konspirasi dalam penetapan cadangan gas dalam POD yang tidak sesuai dengan  cadangan gas yang ada di lapangan. Kapasitas produksi yang diajukan dalam POD sebanyak 116 mmscfd diperkirakan habis tahun 2021.  Sementara dengan status kahar tersebut, gas Lapangan Kepodang bakal habis pada tahun 2018.

Jugi Prajogio, Anggota Komite Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) mengatakan kondisi kahar Lapangan  Kepodang kahar masih menjadi perdebatan antara Kalimantan Jawa Gas (KJG) dan Petronas. 

"BPH Migas sedang mencoba upaya bagaimana utilitasi pipa ini ke depan," katanya.

Sebagai informasi saja, Petronas Carigali Muriah Ltd. adalah pemilik 80% saham Lapangan Kepodang. Sementara PT Perusahaan Gas  Negara Tbk melalui PT Saka Energi Indonesia memiliki 20% saham sisanya.

Kontan, Page-18, Tuesday, Sept 12, 2017.

PLN: Not Gas Imports, Mutual Cooperation

Gas imports from Singapore continue to trigger pros and cons. State electricity company PT PLN explained the signing of a  head of agreement (HOA) last week with two State firms, Keppel Offshore and Marine and Pavilion Gas, not for gas imports. However, this  is only limited to the study of the utilization of gas facilities together.

According to PLN, the study aims to utilize the location of the Singapore LNG terminal as the location of the LNG hub.  Singapore was chosen with consideration of the location adjacent to several gas-powered plants on the island of Sumatra, primarily for  power plants in Tanjung Pinang and Natuna.

There are three agreements in the HOA, firstly, an agreement to develop a more in-depth feasibility study on LNG distribution.  Second, the agreement to draft a framework for the distribution of LNG owned by PLN from an existing contract. The sources from  domestic Indonesia are then sent to small-scale power plants. Third, the agreement undertakes a study on the development of small-scale  LNG infrastructure.

PLN believes that the existing cooperation in the HoA is based on the principle of equality and mutual benefit of a validity  period of only six months.

"If it is not efficient, stop cooperation and end without efficiency follow-up," said Amir Rosidin, Director of Central Java Regional Business  of PLN at PLN Head Office on Monday (11/9).

IN INDONESIA

PLN: Bukan Impor Gas, Kerjasama Saling Untung

Impor gas dari Singapura terus memicu pro dan kontra. PT Perusahan Listrik Negara atawa PLN menjelaskan penandatanganan  head of agreement (HOA) pekan lalu dengan dua perusahaan Negeri Singa, yakni Keppel Offshore and Marine dan Pavillion Gas bukan untuk impor gas. Namun, ini hanya sebatas Studi pemanfaatan fasilitas gas secara bersama.

Menurut PLN, kajian tersebut bertujuan untuk memanfaatkan lokasi terminal Singapore LNG sebagai lokasi hub LNG.  Singapura dipilih dengan pertimbangan lokasi yang berdekatan dengan beberapa pembangkit berbahan gas di Pulau Sumatra, utamanya  untuk kebutuhan pembangkit listrik di Tanjung Pinang dan Natuna.

Ada tiga kesepakatan dalam HOA tersebut, pertama, kesepakatan untuk menyusun studi kelayakan yang lebih mendalam  mengenai distribusi LNG. Kedua, kesepakatan pembuatan konsep kerangka kerja untuk mendistribusikan LNG milik PLN dari kontrak yang  sudah ada. Sumbernya dari domestik Indonesia lalu dikirim ke pembangkit listrik skala kecil. Ketiga, kesepakatan melakukan Studi  pengembangan infrastruktur LNG skala kecil.

PLN meyakini kerjasama yang ada dalam HoA berdasarkan atas azas kesetaraan dan saling menguntungkan masa berlakunya  hanya enam bulan. 

"Kalau memang tidak efisien, berhenti kerjasamanya dan berakhir tanpa tindak lanjut efisiensi," kata Amir Rosidin, Direktur Bisnis  Regional Jawa Bagian Tengah PLN di Kantor Pusat PLN, Senin (11/9).

Kontan, Page-18, Tuesday, Sept 12, 2017.

ConocoPhillips Runaway, Pertamina Choose Defense

PT Pertamina will retain ownership of the right to manage oil and gas working areas in Block B South Jambi despite ConocoPhillips South Jambi Limited as the operator plans to restore the working area.

President Director of PT Pertamina Hulu Energi Gunung Sardjono Hadi said that it will not follow ConocoPhillips' move to abandon the block that will expire in 2020. According to him, Pertamina will survive in the oil and gas block located in Jambi because it  still has prospects for the integration of operations with another block, namely Jabung Block.

In Block B South Jambi, ConocoPhillips South Jambi Limited is partnering with PetroChina with 30% stake and 25% for  Pertamina. In addition to its continuing gas production, the development of Block B of South Jambi also faces the challenge of high levels  of carbon dioxide (CO2) and its location in contact with protected forests.

In an area of ​​594 square miles near Jambi, the gas from the oil and gas block whose contract expires in 2020 will supply gas to  Singapore Power via pipeline. Meanwhile, its condensate production was flown to Central Ramba and transported to the Plaju Refinery.

From the data of PHE's 2016 annual report, Bay of Low and Geger Kalong fields in South Jambi Block B no longer produce oil  due to depreciation.

"[ConocoPhillips] returns [Block B South Jambil, but we want to take it. We're still there. If we take it, we want to integrate it with Jabung,  "he said on Monday (9/11).

Meanwhile, Jabung Block is still operated by PetroChina international Jabung Limited until 2025. On the block, PHE has a  participation stake of 14.28%.

Based on data from the Special Unit for Upstream Oil and Gas Business (SKK Migas) as of June 30, 2017, Jabung gas production  reached 256 million cubic feet per day (MMscfd) from the target of 258 MMscfd. Earlier, Deputy of Oil and Gas Operations Migas  Fataryani said that Block B South Jambi had operated in 2004 to 2010 with production of 25 MMscfd. Meanwhile, production comes  from Teluk Besar and Geger Kalong fields.

However, production continued to fall until finally the contractor, ConocoPhillips South Jambi Limited, stopped production  activities since 2015. The working area signed in 1990, Fataryani said, is in the process of being returned to the government.

"In the process of relinguishment by COPI [ConocoPhillips]," he said.

Meanwhile, the government has granted the upstream gas price increase from the Corridor Block (ConocoPhillips Grissik  Limited) to be supplied to PT Perusahaan Gas Negara Tbk. Batam area 1.

EMR Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that the government's consideration was to raise  the gas price of Grissik's Hand because of the proposed price adjustment from ConocoPhillips.

IN INDONESIA

ConocoPhillips Hengkang, Pertamina Pilih Bertahan

PT Pertamina akan mempertahankan kepemilikan hak kelola wilayah kerja minyak dan gas bumi di Blok B South Jambi kendati ConocoPhillips South Jambi Limited sebagai operator berencana untuk mengembalikan wilayah kerja tersebut.

Presiden Direktur PT Pertamina Hulu Energi Gunung Sardjono Hadi mengatakan bahwa pihaknya tidak akan mengikuti langkah  ConocoPhillips untuk meninggalkan blok yang akan habis masa kontraknya pada 2020 itu. Menurutnya, Pertamina justru akan bertahan  di blok migas yang berlokasi di Jambi itu karena masih memiliki prospek untuk pengintegrasian operasi dengan blok lain, yakni Blok  Jabung.

Pada Blok B South Jambi, ConocoPhillips South Jambi Limited bermitra dengan PetroChina yang memiliki saham paitisipasi  30% dan Pertamina 25%. Selain karena produksi gasnya yang terus turun, pengembangan Blok B South Jambi juga menghadapi  tantangan tingginya kandungan karbondioksida (CO2) dan lokasinya yang bersinggungan dengan hutan lindung.

Di wilayah seluas 594 mil persegi dekat Jambi ini, gas dari blok migas yang kontraknya akan berakhir pada 2020 itu memasok  gas ke Singapore Power melalui pipa. Sementara itu, produksi kondensatnya dialirkan ke Central Ramba dan diangkut ke Kilang Plaju.

Dari data laporan tahunan 2016 PHE, Lapangan Teluk Rendah dan Geger Kalong di Blok B South Jambi tidak lagi memproduksi  minyak karena terjadi penyusutan.

“[ConocoPhillips] mengembalikan [Blok B South Jambil, tetapi kita mau ambil. Kita masih ada di situ. Kalau itu kita ambil, kita mau  integrasikan dengan Jabung,” ujarnya, Senin (11/9).

Sementara itu, Blok Jabung saat ini masih beroperasi dioperasikan oleh PetroChina international Jabung Limited hingga 2025.  Pada blok tersebut, PHE memiliki saham partisipasi sebesar 14,28%.

Berdasarkan data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) per 30 Juni 2017,  produksi gas Jabung tercapai 256 juta kaki kubik per hari (MMscfd) dari target 258 MMscfd. Sebelumnya, Deputi Operasi SKK Migas  Fataryani mengatakan bahwa Blok B South Jambi pernah dioperasikan pada 2004 hingga 2010 dengan produksi 25 MMscfd. Adapun,  produksi berasal dari lapangan Teluk Rendah dan Geger Kalong.

Namun, produksi terus turun hingga akhirnya kontraktor yakni ConocoPhillips South Jambi Limited menghentikan kegiatan  produksi sejak 2015. Wilayah kerja yang ditandatangani pada 1990 itu, ujar Fataryani, sedang dalam persiapan untuk dikembalikan  kepada pemerintah. 

“Dalam proses relinguishment [pelepasan] oleh COPI [ConocoPhillips],” ujarnya.

Sementara itu, pemerintah telah mengabulkan penaikan harga gas di hulu yang berasal dari Blok Corridor (ConocoPhillips  Grissik Limited) yang akan dipasok ke PT Perusahaan Gas Negara Tbk. area Batam 1.

Wakil Menteri ESDM Arcandra Tahar mengatakan bahwa pertimbangan pemerintah untuk menaikkan harga gas Iapangan  Grissik karena usulan penyesuaian harga dari ConocoPhillips.

Bisnis Indonesia, Page-28, Tuesday, Sept 12, 2017.

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.