Saudi king, Putin eye energy, arms deals on landmark Russia visit

On a landmark visit to Russia, Saudi Arabia’s King Salman and President Vladimir Putin were set on Thursday to clinch a host of multi-billion-dollar energy and defense deals despite discord over the Syrian war.

The first official trip to Russia by a Saudi monarch will also see the leaders of the world’s largest energy exporters discuss an extension of an Organization of the Petroleum Exporting Countries (OPEC) agreement to cap oil output.

“This is the first visit by a Saudi Arabian monarch in the history of our relations and that in itself is a landmark event,” Putin said as he welcomed King Salman to Moscow in an ornate gilded Kremlin hall.

“l’m sure your visit will boost the ties between our countries,” he said. “We aim to strengthen our relations in the interests of peace and security in the interests of developing the world economy,” the Saudi king responded.

Citing Russia’s energy minister Alexander Novak, the Financial Times reported that Russia and Saudi Arabia were expected to sign deals worth over US$3 billion, including a $1 billion energy investment fund and a $1.1 billion agreement for Russia’s petrochemicals giant Sibur to build a plant in Saudi Arabia.

Russia’s Kommersarzt business daily reported Putin and Salman were also due to discuss an arms deal worth more than $3 billion, to supply Riyadh with S-400 air defense systems. Russia and Saudi Arabia are heavily dependent on oil exports and the global plunge of the price of crude that began in 2014 lashed both their economies.

OPEC members have joined with Russia and other countries in cutting crude output in a pact that has helped prop up prices. Putin said on Wednesday it was possible to extend an OPEC deal to cap oil output “at least until the end Of 2018.”

The current agreement runs until March 2018.

“We strive to continue the positive cooperation between our countries to achieve stability on World oil markets which promotes the growth of the world’s economy,” Salman said in Moscow.

The leaders held one-on-one talks, followed by broader discussions. Once they sign the expected deals, Putin will host a state dinner for Salman.

“The political will of Moscow and Riyadh for deeper cooperation on the widest range of issues is clear,” Putin’s spokesman Dmitry Peskov told journalists ahead ofthe meetings.

The 81-year-old Saudi monarch’s three-day visit got off to an awkward start on Wednesday evening after landing at Moscow’s Vnukovo-2 airport when the escalator he uses to descend from his plane malfunctioned.

The escalator stopped midway forcing the king to walk down himself, to be met by Russian officials including deputy prime minister Dmitry Rogozin and a military brass band.

His delegation of around 1,000 people occupied all the available hotel rooms in five-star hotels around the Kremlin, including one entire hotel, state RIA Novosti news agency reported.

Salman arrived in Moscow along with Energy Minister Khalid al-Falih, Foreign MinisterAdel al-Jubeir and Minister of State Musaed al-Aiban. The head of Saudi’s state-owned oil giant Aramco Amin Nasser told Rossiya 24 state television ahead of the talks that the company would sign agreements with Russia’s Gazprom, Gazprom Neft and Sibur energy companies as well as with an affiliate of Lukoil. The Kremlin said ahead of the visit that Salman and Putin would also discuss the Middle East, “especially focusing on conliict situations in the region.”

While Russia and Saudi Arabia are partners on the oil market, they are at loggerheads on Syria, where Moscow supports President Bashar al-Assad and Riyadh backs the opposition.

Jakarta Post, Page-12, Friday, October 6, 2017

Firm action prepared for unruly fuel sellers

The government has warned recalcitrant gas stations that it will shut them down or revoke their operational permits, including those that sell overpriced gasoline or trick their customers with deceptive gas meters. The government will do this to ensure the proper implementation of its one-price fuel policy.

Downstream Oil and Gas Regulatory Agency (BPH Migas) plans to team up with the Trade Ministry’s metrology directorate, the Energy and Mineral Resources Ministrys Directorate General of Oil and Gas and-the National Police’s Criminal Investigation Department to run so called compliance operations targeting fuel distribution agents nationwide. 

BPH Migas committee member Muhammad Ibnu Fajar said his team would inspect gas stations to check the validity of their operation permits, the dispenser volume, the gas meter, as well as product specifications and prices.

“We need to undertake the compliance operations to monitor the implementation of the oneprice fuel policy among fuel agents so that there are no violations, including in the prices set for customers,” Ibnu said Thursday

In the first phase, the agency will conduct field inspections at four or five gas stations in Greater Jakarta, which will be selected through a random sampling method.

Then, it will expand its coverage across the country in 2018 with the target of inspecting at least six random gas stations per month out of a total 7,680 stations nationwide. The agency will also take into account public complaints filed in determining which stations are targeted. 

As mandated by the government, state-owned energy giant Pertamina will establish by 2019 fuel distribution agents in 150 locations included in the so-called "3T regions", referring to the countryfs frontier, outermost and ‘remote regions.

ln this way, Pertamina hopes it can keep the prices of some fuel types at the same level in those locations, including Premium gasoline with a research octane number (RON) of 88 at Rp 6,450 (48 US cents) per liter and subsidized Solar diesel at Rp 5,150-per liter. 

“For recalcitrant gas stations, we can revoke their permits, close them down or even take legal action against them,” Ibnu said. 

If a gas station is proven to use inaccurate gas meters, resulting in lower-than-expected gasoline volumes received by customers, the station’s operator can be sentenced to a year in prison or slapped with a Rp 1 million fine, as stipulated in the 1981 Legal Metrology Law.

Moreover, if a gas station misuses the distribution of subsidized fuel, the operator can be sentenced to six years in prison or fined Rp 60 billion, as stated in the 2001 Oil and Gas Law, Mean-while, the misuse of non-subsidized fuel could lead to four years in prison or a Rp 40 billion fine.

As of today, Pertamina has only been able to implement the policy in 25 locations, less than half the 54 targeted locations for this year, following some problems related to permit issuance and development progress at gas stations in remote regions.

“We have three more months to go. Pertamina will work hard to expedite the implementation of the policy at the 54 locations by the end of the year,” Energy and Mineral Resources Ministry oil and gas director general Ego Syahrial said. 

Pertamina estimates that it will have to spend Rp 800 billion this year alone and Rp 5 trillion by 2019 to fully realize the one-price fuel policy. This comes amid the company’s mounting financial burdens.

As the government has maintained the prices of Premium and Solar at the same level since April 2016, Pertamina has had to bear the burden when the prices fall below their real economic value.

Jakarta Post, Page-13, Friday, October 6, 2017

Oil and Gas Blocks Unsuccessful will be auction again

The government immediately held an auction of second-quarter oil and gas blocks to re-offer unexpected oil and gas blocks at a 2016 auction. Not only that, oil and gas blocks returned by oil and gas companies will also be offered again. 

     Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said the second auction of oil and gas blocks will be held as soon as the first auction period is over. Post two times extended, auctions for the first 2017 oil and gas blocks closed in November.

"The auction (second period) could be next year, this year, it will not depend on the year (the implementation)," he said in Jakarta on Thursday (5/10). Blocks auctioned in the second period, including oil and gas blocks that have been officially returned to the state and which are not interested in the previous year's auction. Especially for the returned blocks, not limited to this year only. Oil and gas blocks returned in previous years will also be re-tendered.

Data of Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) in 2013 ago, there are 18 oil and gas blocks returned to the country. The cause is there are several factors, namely the absence of oil and gas reserves, the amount of reserve is not economical, or the risk is too high.

These 18 oil and gas blocks include Banyumas Block, Anadarko Papalang, East Ambalat, North East Madura-III, Bengkulu, Offshore Lampung-II, Pasanglayu, Surumana, and Amborip VI. Furthermore, it also includes Kuma Block, Mandar, Sageri, Karama, Scissors, Arafura Sea, Rangkas, and South East Palung Aru.

Meanwhile, the recently returned PT Pertamina East Kalimantan Block and Attaka. These two blocks, according to Arcandra, must be auctioned off soon.

"The block auction must be fast for the blocks that operate now because of the long transition period," he said.

East Kalimantan Block completes its contract in October 2018, while the Attakan Block by the end of this year.

Oil and Gas Block

Meanwhile, at last year's auction, there were 14 oil and gas blocks that were not won by oil and gas companies. In detail, the Ebuny Block, Onin, West Kaimana, West Bukit, Batu Gajah Dua, Kasongan Sampit, and Ampuh. The next offered regularly are South CPR Oti Block, Suremana I, Mamuju Manukra, South East Mandar, North Arguni, and Kasuri II. 

     Referring to Regulation of the Minister of Energy and Mineral Resources No. 52 of 2017, termination blocks and new contracts will use the production sharing contract (PSC) of gross split scheme. The government claims this scheme will make the contractor economy more attractive, comparable or even better than the Cost Recovery scheme.

As is known, the rate of return on capital (internal rate of return / IRR) of oil and gas blocks is predicted to rise about 6.55% according to Ministerial Regulation 52/2017. the simulation has been done, it appears that 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 that in this simulation the IRR soared to 12%. However, this oil and gas IRR averaged an increase of 6.55%.

There are eight improvement points 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 plan of development (POD 2) adds a 3% split, from the split hyodgen sulfide (H2S) split may increase up to 5%, and the availability of infrastructure could boost the split by 4%.

IN INDONESIA

Blok Migas Tidak Laku Dilelang Ulang

Pemerintah segera, menggelar lelang blok migas periode kedua untuk menawarkan kembali blok migas yang tidak diminati pada lelang 2016 silam. Tidak hanya itu, blok migas yang dikembalikan oleh perusahaan migas juga akan ditawarkan kembali. 

     Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, lelang blok migas periode kedua tersebut bakal digelar segera setelah lelang periode pertama selesai. Pasca diperpanjang dua kali, lelang blok migas periode pertama 2017 ditutup pada November nanti.

"Lelangnya (periode kedua) bisa tahun depan, bisa tahun ini. Tidak tergantung tahun (pelaksanaannya) ," kata dia di Jakarta, Kamis (5/ 10). Blok yang dilelang pada periode kedua, meliputi blok migas yang telah resmi dikembalikan ke negara dan yang tidak diminati di lelang tahun sebelumnya. Khusus untuk blok yang dikembalikan, tidak dibatasi untuk tahun ini saja. Blok migas yang dikembalikan pada tahun-tahun sebelumnya juga akan dilelang ulang.

Data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) pada 2013 silam, terdapat 18 blok migas yang dikembalikan ke negara. Penyebabnya ada beberapa faktor, yakni tidak ditemukannya cadangan migas, besaran cadangannya tidak ekonomis, atau resikonya terlalu tinggi.

Ke-18 blok migas ini meliputi  Blok Banyumas, Anadarko Papalang, East Ambalat, North East Madura- III, Bengkulu, Offshore Lampung-II, Pasanglayu, Surumana, dan Amborip VI. Selanjutnya, juga termasuk Blok Kuma, Mandar, Sageri, Karama, Gunting, Arafura Sea, Rangkas, dan South East Palung Aru.

Sementara yang baru saja dikembalikan PT Pertamina yakni Blok East Kalimantan dan Attaka. Dua blok ini, menurut Arcandra, harus segera dilelang. 

"Lelang blok harus cepat untuk blok-blok yang beroperasi sekarang karena masa transisinya lama," tegas dia. 

Blok East Kalimantan selesai kontraknya pada Oktober 2018, sementara Blok Attakan pada akhir tahun ini.

Sementara pada lelang tahun lalu, terdapat 14 blok migas yang tidak dimenangkan satu pun oleh perusahaan migas. Rincinya, Blok Ebuny, Onin, West Kaimana, Bukit Barat, Batu Gajah Dua, Kasongan Sampit, dan Ampuh. Berikutnya yang ditawarkan secara reguler yakni Blok South CPR Oti, Suremana I, Manakarra Mamuju, South East Mandar, North Arguni, dan Kasuri II. 

     Mengacu pada Peraturan Menteri ESDM Nomor 52 Tahun 2017, blok-blok terminasi maupun yang kontrak baru nantinya akan menggunakan kontrak kerja sama (production sharing contract/ PSC) skema bagi hasil kotor (gross split). Pemerintah mengklaim skema ini akan membuat keekonomian kontraktor menjadi lebih menarik, sebanding atau bahkan lebih baik dari skema Cost Recovery.

Seperti diketahui, tingkat pengembalian modal (internal rate of return/ IRR) blok migas diprediksi bisa naik sekitar 6,55% mengacu Peraturan Menteri 52/ 2017. Pada. simulasi yang telah dilakukan, tampak bahwa 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 melejit hingga 12%. Namun, IRR blok migas ini rata-rata naik 6,55%.

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%.

Investor Daily, Page-11, Friday, October 6, 2017

Oil and Gas Block Will Be Re Auction

The government will re-auction the oil and gas working area that has been offered, but has not received a positive response from investors. Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said that it will auction off blocks that are not interested investors at auction 2016.

Oil and gas block auction in 2016 no new contracts are signed. That is, there are no blocks of interest to contractors. Last year, the government offered 14 oil and gas working areas. Despite offering a new skill to attract investors through profit-sharing, exploration commitments and signature bonuses, up to now no single auction of oil and gas blocks has attracted investors.

Seven blocks are offered directly, namely Bukit Barat (offshore Riau Islands), Batu Gajah Dua (onshore Jambi), Kasongan Sampit (onshore Central Kalimantan), Ampuh (offshore Java Sea), Ebuny (offshore Southeast Sulawesi), Onin (onshore-offshore West Papua) and West Kaimana (onshore-offshore West Papua).

Meanwhile, seven other blocks are offered through regular auction schemes, namely South CPP (onshore Riau), Suremana I (offshore Makassar Strait), SE Mandar (offshore South Sulawesi-West Sulawesi), North Arguni (onshore West Papua), Kasumi II onshore West Papua), Manakarra Mamuju (offshore Makassar Strait and Oti (offshore East Kalimantan).

"All last year that was not taken any we open the auction," he said, Thursday (5/10).

Meanwhile, for the returned Working Area will also be auctioned. From the data of Special Unit for Upstream Oil and Gas Business Executor (SKK Migas) semester I / 2017, the working area currently operates 277 with 85 blocks in the production stage and 192 in the exploration stage. 

     In addition, there are 43 oil and gas blocks in termination process with 37 conventional oil and gas blocks and 6 non-conventional oil and gas blocks. The number of oil and gas blocks in operation has continued to decline since 2013 with 321 blocks, 2014 of 318 blocks, 2015 down to 312 blocks, and 2016 by 280 blocks.

"If the block has been officially returned then we will auction. All the returned blocks will be our auction, "he said.

On the other hand, the block that is already operating and will expire its contract will be auctioned off first.

"This auction should be fast for the blocks that are operating now. The transition period is long "he said.

IN INDONESIA

Blok Migas Akan Dilelang Ulang

Pemerintah akan melelang ulang Wilayah kerja minyak dan gas bumi yang telah ditawarkan, tetapi belum mendapat respons positif dari investor. Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan bahwa pihaknya akan melelang blok yang tidak diminati investor pada lelang 2016.

Lelang blok migas pada 2016 tidak ada kontrak baru yang ditandatangani. Artinya, tidak ada satu pun blok yang diminati kontraktor. Pada tahun lalu, pemerintah menawarkan 14 Wilayah kerja migas. Kendati telah menawarkan skerna baru untuk menarik minat investor melalui penawaran bagi hasil, komitmen eksplorasi dan bonus tanda tangan, hingga kini belum ada satu pun lelang blok migas yang diminati investor.

Tujuh blok ditawarkan secara langsung, yakni Bukit Barat (offshore Kepulauan Riau), Batu Gajah Dua (onshore Jambi), Kasongan Sampit (onshore Kalimantan Tengah), Ampuh (offshore Laut Jawa), Ebuny (offshore Sulawesi Tenggara), Onin (onshore-offshore Papua Barat) dan West Kaimana (onshore-offshore Papua Barat).

Sementara itu, tujuh blok lainnya ditawarkan melalui skema lelang reguler, yaitu South CPP (onshore Riau) , Suremana I (offshore Makassar Strait), SE Mandar (offshore Sulawesi Selatan-Sulawesi Barat), North Arguni (onshore Papua Barat), Kasumi II (onshore Papua Barat), Manakarra Mamuju (offshore Makassar Strait dan Oti (offshore Kalimantan Timur).

“Semua tahun lalu yang tidak diambil pun kita buka lelangnya,” ujarnya, Kamis (5/10) .

Sementara itu, untuk Wilayah kerja yang dikembalikan juga akan segera dilelang. Dari data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) semester I/2017, saat ini Wilayah kerja yang beroperasi sebanyak 277 dengan 85 blok di tahap produksi dan 192 di tahap eksplorasi. 

     Selain itu, ada 43 blok migas dalam proses terminasi dengan 37 blok migas konvensional dan 6 blok migas non-konvensional. Jumlah blok migas yang beroperasi terus turun sejak 2013 dengan 321 blok, 2014 sebanyak 318 blok, 2015 turun menjadi 312 blok, dan 2016 sebanyak 280 blok.

“Kalau blok yang sudah resmi dikembalikan maka akan kita lelang. Semua blok yang dikembalikan akan kita lelang, " katanya.

Di sisi lain, blok yang sudah beroperasi dan akan habis masa kontraknya akan dilelang lebih dulu. 

“Lelang ini harus cepat untuk blok-blok yang beroperasi sekarang. Masa transisinya itu lama" katanya.

Bisnis Indonesia, Page-30, Friday, October 6, 2017

Gresik Migas Asks Participating Interest to PGN Saka

PT Gresik Migas is eyeing Participating Interest (PI) rights in gas management to PT PGN Saka. The wish is based on Ministerial Regulation 37/2016 of Participating Interest (PI). President Director of PT Gresik Migas, Bukhori, said the Regent of Sambari has issued a letter of application for the right of Participating Interest (PI) to the Governor of East Java some time ago. But until now the letter is still under discussion.

Explained, during the period of plan of development, his side has been offered the right Participating Interest (PI) by PGN Saka. However, the current rules mention, if you want to get PI rights, the region must build the installation first.

"At that time we did not take because the value of large investments," he said.

However, Bukhori said, since the regulation changed through Minister of Energy and Mineral Resources Regulation 37/2016, that KKKS can wake up the installation of Participating Interest (PI) for BUMD. Thus, the Government of Gresik Regency through BUMD Gresik Migas again requested this Participating Interest (PI) to the Governor.

"For the Participating Interest (PI) scheme of cooperation, the Governor coordinates, prepares and appoints BUMD beneficiaries Participating Interest (PI) 10 percent. Then, the contractor finances the size of the BUMD's obligations first. This means that the construction of the installation is done by KKKS first, "he explained.

Furthermore, the return of financing to the contractor will be done by Gresik Migas annually without interest from the production by ensuring revenue sharing for the BUMD. Confirmed this, Public Relations SKK Migas Jabanusa, Prihandono Hemanto admitted, to get the right Participating Interest (PI) can be through two options. Each at the beginning of the POD and at the time of the contract renewal or renewal period.

"PGN Saka contract will expire until 2028. So it can not be in the middle of contract of Gresik Migas requesting Participating Interest (PI). Of course this is against the rules, "he said.

Nevertheless, it will be coded with the Provincial Government of East Java regarding this matter. Given the Participating Interest (PI) application letter from Gresik Regency has been sent.

"However, the involvement of the regions should be a priority, with the record not rammed rules that have been made," he said.

IN INDONESIA

Gresik Migas Minta Pl ke PGN Saka

PT Gresik Migas mengincar hak Participating Interest (PI) dalam pengelolaan gas ke PT PGN Saka. Keinginan itu didasarkan pada Peraturan Menteri ESDM 37/ 2016 tentang Hak Participating Interest (PI). Direktur Utama PT Gresik Migas, Bukhori mengatakan, Bupati Sambari telah mengeluarkan surat permohonan bagian Participating Interest (PI) ke Gubernur Jawa Timur beberapa waktu lalu. Namun sampai saat ini surat tersebut masih dalam pembahasan.

Dijelaskan, pada periode plan of development, pihaknya sudah ditawari hak Participating Interest (PI) oleh PGN Saka. Namun, aturan saat itu menyebutkan, jika ingin mendapatkan hak Participating Interest (PI), daerah harus membangun instalasi dulu. 

”Saat itu kami tidak ambil karena nilai investasinya besar,” ujarnya. 

Namun, kata Bukhori, sejak aturan berubah melalui Peraturan Menteri ESDM 37/2016, bahwa KKKS dapat membangunkan instalasi Participating Interest (PI) untuk BUMD. Sehingga, Pemerintah Kabupaten Gresik melalui BUMD Gresik Migas kembali meminta jatah Participating Interest (PI) ini kepada Gubernur.

“Untuk Participating Interest (PI) skema kerja sama, Gubernur mengkoordinir, menyiapkan dan menunjuk BUMD penerima penawaran Participating Interest (PI) 10 persen. Kemudian, kontraktor membiayai lebih dulu besaran kewajiban BUMD. Artinya pembangunan instalasi dilakukan oleh KKKS terlebih dahulu,” paparnya.

Selanjutnya, pengembalian pembiayaan kepada kontraktor akan dilakukan oleh Gresik Migas setiap tahun tanpa bunga dari hasil produksi dengan tetap menjamin penerimaan bagi hasil untuk BUMD. Dikonfirmasi hal ini, Humas SKK Migas Jabanusa, Prihandono Hemanto mengaku, untuk mendapatkan hak Participating Interest (PI) dapat melalui dua opsi. Masing-masing saat awal POD dan pada saat periode perpanjang kontrak atau pembaruan kontrak.

“PGN Saka kontraknya akan berakhir hingga 2028. Jadi tidak bisa ditengah-tengah kontrak Gresik Migas meminta jatah Participating Interest (PI). Tentu ini menyalahi aturan,” ujarnya. 

Kendati demikian, pihaknya akan berkodinasi dengan Pemerintah Provinsi Jatim perihal hal ini. Mengingat Surat permohonan Participating Interest (PI) dari Pemkab Gresik sudah dikirimkan.

“Bagaimanapun juga keterlibatan daerah harus menjadi prioritas, dengan catatan tidak menabrak aturan yang sudah dibuat,” katanya.

Radar Gresik, Page-4, Friday, October 6, 2017

Shell cancels sale of Thai gas field stakes to Kuwait Firm

Royal Dutch Shell said on Wednesday' it has cancelled a US$ 900 million deal to sell' its gas field stakes in Thailand to Kuwait Foreign Petroleum Exploration Company (KUFPEC). Shell and KUFPEC announced the deal in January, and it was due to be completed in the first quarter of 2017. 

“Although Shell and the Thai government have worked together closely and collaboratively on the matter, the different interpretations of the treatment of share sale transactions were not resolved within Shell and KUFPEC’s agreed timeframe,” a Shell spokeswoman said in an email.

“Therefore, both parties jointly decided to terminate the transaction,” she said.

The sale was part of efforts by the Anglo-Dutch company to reduce debt after buying smaller rival BG Group for $70 billion.

“To date, the company has more than $25 billion in completed, announced or in progress divestments, on track to meet its target of $30 billion of divestments between 2016 and 2018,” Shell said in a statement.

The deal had called for Shell to divest its shares in two subsidiaries Shell Integrated Gas Thailand Pte. Ltd. (SIGT) and Thai Energy Co. Ltd. (TEC) - to KUFPEC’s unit in Thailand. SIGT and TEC together hold a 22.222 percent equity stake in the Bongkot natural gas field and adjoining acreages offshore Thailand consisting of blocks 15, 16, 17 and G12/48.

PTT Exploration and Production PCL operates the offshore Bongkot field with a 44.445 percent equity. France’s Total has a 33.33 percent stake. Besides continuing to support operations and development at Bongkot, SIGT also intends to participate in the forthcoming licensing round for the extension of the Bongkot concession, Shell said.

“Having almost met its $30 billion divestment target, there’s no longer the same pressure on Shell to sell,” said Andrew Harwood, research director of Asia Pacific upstream oil and gas at Wood Mackenzie.

“Thailand remains a small but profitable part of Shell’s portfolio in Southeast Asia,” he said. “With the Bongkot concession set to expire in 2023, we’d expect Shell and the other Bongkot partners to bid in the upcoming auction for the next phase of the project.”

Earlier Kufpect said that the acquisition would provide it with 68 million barrels of oil equivalent in proved and probable reserves and approximately 39,000 barrels of oil equivalent per day of production.

Jakarta Post, Page-15, Thursday, October 5, 2017

Potential Losses of Oil and Gas Sector Reach Rp. 15.89 Trillion

The Supreme Audit Agency (BPK) found potential losses on state revenues worth USD 1.18 billion or equivalent to Rp 15.89 trillion from the oil and gas sector. It is contained in the Semester Examination Results Overview (IHPS) in the first half of this year.

The biggest cause of the loss is improper cost loading in reimbursement of oil and gas operations cost (cost recovery) value reaches USD 956 million or about Rp 12.9 trillion. In addition, there is also a delay in the settlement of tax obligations of 17 contractors of cooperation contracts (KKKS) until tax year 2015 worth USD 209.25 million.

It is then augmented with the potential loss of state revenues from the imposition of a fine or minimum tax interest for a tax year worth USD 11.45 million. On the other hand, BPK also found potential loss from Pertamina Gas (Pertagas) after the ineffectiveness of a number of projects. 

    Referring to IHPS in the first half of 2017, Pertagas's potential losses stem from the non-optimal business and gas transportation business of companies in a number of areas ranging from Jakarta, North Sumatra, South Sumatera and East Java period 2014 Until 1st / 2016.

In gas trading activities, Pertagas assumes a loss of revenues of USD 16.57 million and the incidence of bad debts worth USD 11.86 million due to depreciation of nominations, commercial schemes and operation of Pondok Tengah gas utilization which does not consider operating conditions. Also the transfer of gas allocation for Compressed Natural Gas (CNG) needs to PT Mutiara Energy, "said Chairman of BPK Moermahadi Soerja in IHPS I 2017.

In addition to the above losses, Moermahadi said Pertagas also has the potential to experience losses in the Belawan pipeline project that connects the Medan Industrial Estate (IKM). From the Rp 813 billion project, Pertagas is believed to bear the loss in the long term because until now the Belawan pipeline project has not been completed yet.

First, there is a commissioning job item that can not be implemented because until now there is no consumer who can receive gas and in this case is not the responsibility of the partner. Second, the completion of the contract amendment process is related to the added work less so that the final calculation can not be done related to the completion of the work.

Departing from that, the BPK ranks have recommended Pertagas management to evaluate and establish procedures for determining the maximum number of shipperstocks, nomination redirections, to the mechanism of delivering information on rate inforce under certain conditions.

Satya W Yudha

Not only that, Pertagas management is recommended to make efforts to collect bad debts against PT Mutiara Energy. Vice Chairman of the House of Representatives Commission VI Satya W Yudha asked the Special Unit for Upstream Oil and Gas Operations (Migas) to anticipate potential losses in the oil and gas sector, as well as Pertagas.

"We ask SKK Migas to overcome the potential loss to be followed up," he said.

IN INDONESIA

Potensi Kerugian Sektor Migas Capai Rp. 15,89 Triliun

Badan Pemeriksa Keuangan (BPK) menemukan potensi kerugian pada penerimaan negara senilai USD 1,18 miliar atau setara Rp 15,89 triliun dari sektor minyak dan gas bumi. Hal itu tertuang dalam lkhtisar Hasil Pemeriksaan Semester (IHPS) pada paruh pertama tahun ini.

Adapun penyebab kerugian terbesar ialah pembebanan biaya-biaya yang tidak semestinya dalam penggantian biaya operasional migas (cost recovery) nilainya mencapai USD 956 juta atau sekitar Rp 12,9 triliun. Selain itu, juga adanya keterlambatan penyelesaian kewajiban pajak dari 17 kontraktor kontrak kerja sama (KKKS) hingga tahun pajak 2015 senilai USD 209,25 juta. 

Kemudian ditambah dengan potensi kehilangan penerimaan negara dari pengenaan denda atau bunga pajak minimal untuk tahun pajak senilai USD 11,45 juta. Di sisi lain, BPK juga menemukan adanya potensi kerugian dari Pertamina Gas (Pertagas) setelah tidak efektifnya sejumlah proyek. 

    Mengacu IHPS paruh pertama 2017, potensi kerugian Pertagas bersumber dari tidak optimalnya bisnis niaga dan transportasi gas perusahaan di sejumlah wilayah mulai dari Jakarta, Sumatera Utara, Sumatera Selatan, dan Jawa Timur periode 2014 Hingga semester 1/ 2016.

Pada kegiatan niaga gas, Pertagas menanggung kehilangan pendapatan senilai USD 16,57 juta dan timbulnya piutang macet senilai USD 11,86 juta akibat penyusutan nominasi, skema niaga, dan operasi pemanfaatan gas Pondok Tengah yang tidak mempertimbangkan kondisi operasi. Juga pengalihan alokasi gas untuk kebutuhan Compressed Natural Gas (CNG) kepada PT Mutiara Energy,” tulis Ketua BPK Moermahadi Soerja dalam IHPS I 2017.

Selain kerugian di atas, Moermahadi mengatakan, Pertagas juga berpotensi mengalami kerugian dalam pengerjaan proyek pipanisasi Belawan yang menghubungkan Kawasan lndustri Medan (IKM). Dari proyek senilai Rp 813 miliar itu, Pertagas diyakini akan menanggung kerugian dalam jangka waktu panjang karena hingga kini proyek pipanisasi Belawan juga belum selesai.

Pertama, terdapat item pekerjaan commissioning yang tidak bisa dilaksanakan karena sampai saat ini belum ada konsumen yang dapat menerima gas dan dalam hal ini bukan menjadi tanggung jawab rekanan. Kedua, belum selesainya proses amandemen kontrak terkait dengan pekerjaan tambah kurang sehingga belum bisa dilakukan kalkulasi akhir terkait dengan penyelesaian pekerjaan.

Berangkat dari hal itu, jajaran BPK telah merekomendasikan manajemen Pertagas melakukan evaluasi dan menetapkan prosedur mengenai penentuan jumlah maksimum shipperstock, pengalihan nominasi, hingga mekanisme penyampaian informasi atas rate inforce pada kondisi tertentu.

Tidak hanya itu, manajemen Pertagas direkomendasikan melakukan upaya penagihan terhadap piutang macet terhadap PT Mutiara Energy. Wakil Ketua Komisi VIl DPR Satya W Yudha meminta kepada Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Migas (SKK Migas) mengantisipasi potensi adanya kerugian di sektor migas, begitu juga dengan Pertagas. 

“Kami meminta SKK Migas menanggulangi adanya potensi kerugian untuk dapat ditindak lanjuti,” katanya.

Koran Sindo, Page-20, Thursday, October 5, 2017

ICP September Breaks US $ 52.47 Per Barrel

The average Indonesian Crude Price (ICP) in September was at US $ 52.47 per barrel, up from US $ 48.43 per barrel in the previous month. While ICP SLC rose from US $ 49.17 per barrel to US $ 53.17 per barrel in September.

The increase in ICP is in line with rising crude oil prices in world markets. In September, Dated Brent prices rose from US $ 51.64 per barrel to US $ 56.05 per barrel, Brent (ICE) increased from US $ 51.87 per barrel to US $ 55.51 per barrel, WTI soared from US $ 48.06 per barrel to US $ 49.88 per barrel, and OPEC basket rose drastically from US $ 49.6 per barrel to US $ 53.35 per barrel.

According to the Indonesian Oil Price Team, there are several factors that increase the price of oil in the international market. First, based on OPEC's publication last September, world crude oil demand rose 1.42 million barrels per day (bpd) compared to last month's publication. In 2018, world oil demand is expected to grow 1.35 million bpd from previous month's report. This is reinforced by the decline in stock and supply of crude oil and its products.

"Based on OPEC's publication last month, world oil supply fell 410 thousand bpd compared to August to 96.75 million bpd. While non-OPEC supplies fell 320 thousand bpd to 57.68 million bpd, "said the Indonesian Oil Price Team in a written statement on Wednesday (4/10).

The decline in stocks of crude oil products recorded Energy Information Administration (EIA) takes place in the United States. The agency's report said the level of US distillate fuel oil and gasoline stocks during September fell compared to the previous month. US distillate fuel oil stocks are down 11.2 million barrels compared to August stocks. Furthermore, gasoline stock last month was 12.6 million barrel lower than August stock.

Not only that, Baker Hughes Incorporated's data and OPEC publications also report a reduction in the number of operating rigs. On September 8, the number of oil rigs dropped three units to 756 rigs. On the other hand, economic growth is revised upward.

"Based on OPEC's publication in September, the world economic growth in 2017 has been revised up from 3.4% to 3.5%," said the Indonesian Oil Price Team.

Particularly in the Asia Pacific region, there are two additional factors that boost the price of oil. First, based on OPEC publications last month, there was an increase in crude demand in China, India and South Korea.

"Later, the International Energy Agency (IEA) publication reported an increase in operating capacity of refineries in China and the operation of Petrochina and CNOOC's new refineries, "said the Indonesian Oil Price Team.

ICP has been on record for the third consecutive month since July. ICP recorded the lowest point in June at US $ 43.66 per barrel. Furthermore, ICP rose to US $ 45.48 per barrel in July, US $ 48.43 per barrel in August and reached US $ 52.47 per barrel. 

     During the initial six months, ICP continues to fluctuate. At the beginning of the year, ICP reached US $ 50 per barrel, at US $ 51.88 per barrel in January and US $ 52.5 per barrel in February. Then, ICP fell to US $ 48.71 per barrel in March, continuing to increase to US $ 49.56 per barrel in April. ICP fell back to US $ 47.09 per barrel in May and fell again to US $ 43.66 per barrel in June.

Based on the realization as of September, the average ICP was recorded at 48.86 per barrel. This figure has slightly exceeded the ICP assumption in the state budget of US $ 48 per barrel.

IN INDONESIA

ICP September Tembus US$ 52,47 Per Barel

Rata-rata harga minyak Indonesia (Indonesian Crude Price/ ICP) pada September lalu tercatat sebesar US$ 52,47 per barel, naik dari bulan sebelumnya US$ 48,43 per barel. Sementara ICP SLC naik dari US$ 49,17 per barel menjadi US$ 53,17 per barel pada September ini.

Peningkatan ICP ini sejalan dengan kenaikan harga minyak mentah di pasar dunia. Pada September lalu, harga Dated Brent naik dari US$ 51,64 per barel menjadi US$ 56,05 per barel, Brent (ICE) meningkat dari US$ 51,87 per barel menjadi US$ 55,51 per barel, WTI melejit dari US$ 48,06 per barel menjadi US$ 49,88 per barel, serta Basket OPEC naik drastis dari US$ 49,6 per barel menjadi US$ 53,35 per barel.

Menurut Tim Harga Minyak Indonesia, terdapat beberapa faktor yang menaikkan harga minyak di pasar internasional. Pertama, berdasarkan publikasi OPEC September lalu, permintaan minyak mentah dunia naik 1,42 juta barel per hari (bph) dibandingkan publikasi bulan lalu. Pada 2018, permintaan minyak dunia diperkirakan tumbuh 1,35 juta bph dari laporan bulan sebelumnya. Hal itu diperkuat dengan turunnya stok dan pasokan minyak mentah beserta produknya. 

“Berdasarkan publikasi OPEC bulan lalu, pasokan minyak dunia turun 410 ribu bph dibandingkan dengan Agustus menjadi 96,75 juta bph. Sementara pasokan non-OPEC turun 320 ribu bph menjadi 57,68 juta bph,” kata Tim Harga Minyak Indonesia dalam keterangan tertulisnya, Rabu (4/10) .

Penurunan stok produk minyak mentah dicatat Energy Information Administration (EIA) terjadi di Amerika Serikat. Laporan lembaga itu menyebutkan tingkat stok distillate fuel oil dan gasoline Amerika Serikat selama September turun dibanding bulan sebelumnya. Stok distillate fuel oil Amerika Serikat turun 11,2 juta barel dibandingkan stok Agustus. Selanjutnya, stok gasoline bulan lalu lebih rendah 12,6 juta barel dibandingkan dengan stok Agustus.

Tidak hanya itu, data Baker Hughes Incorporated dan publikasi OPEC juga melaporkan pengurangan jumlah rig yang beroperasi. Pada 8 September, jumlah rig minyak turun tiga unit menjadi 756 rig. Di sisi lain, pertumbuhan ekonomi justru direvisi naik. 

“Berdasarkan publikasi OPEC pada September, kondisi pertumbuhan ekonomis dunia 2017 telah direvisi naik dari 3,4% menjadi 3,5%,” ujar Tim Harga Minyak Indonesia.

Khusus di Kawasan Asia Pasifik, terdapat dua faktor tambahan yang menggenjot harga minyak. Pertama, berdasarkan publikasi OPEC bulan lalu, terjadi kenaikan permintaan minyak mentah di Tiongkok, India, dan Korea Selatan. 

“Kemudian, publikasi International Energy Agency (IEA) melaporkan adanya peningkatan kapasitas operasi kilang-kilang di Tiongkok dan beroperasinya kilang baru Petrochina dan CNOOC,” tutur Tim Harga Minyak Indonesia.

ICP tercatat terus naik dalam tiga bulan berturut-turut sejak Juli laiu. ICP tercatat mencapai titik terendah pada Juni lalu pada angka US$ 43,66 per barel. Selanjumya, ICP naik menjadi US$ 45,48 per barel pada Juli, US$ 48,43 per barel pada Agustus dan mencapai US$ 52,47 per barel. Selama enam bulan awal, ICP terus berfluktuasi. 

       Di awal tahun, ICP sempat mencapai US$ 50 per barel, yakni US$ 51,88 per barel pada Januari dan US$ 52,5 per barel pada Februari. Kemudian, ICP turun menjadi US$ 48,71 per barel pada Maret, dilanjutkan peningkatan menjadi US$ 49,56 per barel pada April. ICP kembali turun menjadi US$ 47,09 per barel pada Mei dan turun lagi menjadi US$ 43,66 per barel pada Juni.

Berdasarkan realisasi hingga September ini, rata-rata ICP tercatat mencapai 48,86 per barel. Angka ini sudah sedikit melampaui asumsi ICP dalam APBN sebesar US$ 48 per barel.

Investor Daily, Page-9, Thursday, October 5, 2017

BUMD Aceh Asks Shares Above 10%

The Aceh Oil and Gas Management Agency requires a share offering of more than 10% participation to the Aceh-Owned Enterprises on the management of the North Sumatra B Block. Currently, the North Sumatra B Block (NSB) is managed by a subsidiary of PT Pertamina, PT Pertamina Hulu Energi. Meanwhile, the government has commissioned the NSB Block to be taken over by Pertamina after the contract expires on October 15, 2015.

Pertamina Hulu Energi takes over two oil and gas blocks owned by ExxonMobil, the NSB Block and North Sumatera Offshore Block (NSO) on October 1, 2015. The head of BPMA Marzuki Daham said it had submitted a recommendation to the governor for the management of NSB Blocks conducted by a subsidiary of Pertamina.

Recommendations from BPMA require several things, such as next year's drilling commitments and more than 10% participating interest (PI) offer to Aceh-Owned Enterprises.

For the participation of share offer, still need more discussion because there are some BUMD that will be offered NSB Block shares. In addition, he said, efforts to maintain the production of oil and gas well maintained must be done this year.

"Maybe more than 10%. The requirement is what will be discussed again, "he said

The NSB block started production in 1977 with peak gas production reaching approximately 3,400 million cubic feet per day (MMscfd), while the NSO Block started production in 1996 with a production peak of about 400 MMscfd. He said, from the initial phase of discussion, there are several BUMDs for the provincial and district levels.

BUMD whose position is quite dominant, ie from the district level who want to be able to get the offer of NSB Block participation rights. Currently, recommendations along with the terms have been submitted and are just waiting for a response from the governor so that activities can keep running. 

     Referring to Government Regulation no. 23/2015 on Joint Management of Natural Resources Oil and Gas in Aceh, BPMA reserves the right to propose contractors of contracts (KKKS) on certain blocks to regain management rights after the contract expires.

Similarly, for the work area to be auctioned, a definite commitment of a contractor who has a working area in Aceh to contract with the contractor for acting as an extension of the government's hand. From the BPMA proposal, it will have to wait for the approval of the governor and the Minister of Energy and Mineral Resources (ESDM).

From the data (Ministry of Energy and Mineral Resources, oil and gas block that has been operating in Aceh, namely Krueng Mane Block (Eni Krueng Mane Ltd.), Block Pase (Triangle Pase Inc.), Block A (Medco Energi), NSB Block and North Sumatrea Offshore (NSO ) previously managed by ExxonMobil and then moved to Pertamina since 2015.

The management of the NSB Block is integrated with the NSO Block. However, because the NSO is over 200 miles, the central government is entitled to determine its fate. The NSO block is one of eight contract-depleted working areas assigned to Pertamina for its management on a gloss split contract.

"We have recommended Pertamina Hulu Energi to keep managing. If the Governor agrees with BPMA, it can start. "

IN INDONESIA

BUMD Aceh Minta Saham di Atas 10%

Badan Pengelola Migas Aceh mensyaratkan penawaran saham partisipasi lebih dari 10% kepada Badan Usaha Milik Daerah Aceh atas pengelolaan Blok North Sumatera B. Saat ini, Blok North Sumatera B (NSB) dikelola oleh anak perusahaan PT Pertamina, PT Pertamina Hulu Energi. Sementara itu, pemerintah telah menugaskan agar Blok NSB diambil alih oleh Pertamina setelah kontrak berakhir pada 15 Oktober 2015.

Pertamina Hulu Energi mengambil alih dua blok migas milik ExxonMobil, yakni Blok NSB dan Blok North Sumatera Offshore (NSO) pada 1 Oktober 2015. Kepala Badan Pengelola Migas Aceh (BPMA) Marzuki Daham mengatakan bahwa pihaknya telah menyampaikan rekomendasi kepada Gubernur agar pengelolaan Blok NSB bisa dilakukan oleh anak usaha Pertamina.

Rekomendasi dari BPMA mensyaratkan beberapa hal, seperti komitmen pengeboran pada tahun depan dan penawaran hak partisipasi (participating interest/PI) lebih dari 10% kepada Badan Usaha Milik Daerah Aceh.

Untuk penawaran saham partisipasi, masih perlu pembahasan lebih lanjut karena terdapat beberapa BUMD yang akan ditawarkan saham Blok NSB. Selain itu, menurutnya, upaya untuk menjaga produksi sumur migas tetap terjaga harus dilakukan pada tahun ini.

“Mungkin lebih dari 10%. Persyaratannya itulah yang mau dibahas lagi,” ujarnya 

Blok NSB mulai berproduksi pada 1977 dengan puncak produksi gas mencapai sekitar 3.400 juta kaki kubik per hari (MMscfd), sedangkan Blok NSO mulai berproduksi pada 1996 dengan puncak produksi sekitar 400 MMscfd.  Dia menuturkan, dari pembicaraan tahap awal, terdapat beberapa BUMD untuk tingkat provinsi dan kabupaten. 

BUMD yang posisinya cukup dominan, yakni dari tingkat kabupaten yang menginginkan agar bisa mendapatkan penawaran hak partisipasi Blok NSB. Saat ini, rekomendasi beserta syaratnya telah disampaikan dan tinggal menanti respons dari gubernur sehingga kegiatan bisa tetap berjalan. 

    Mengacu pada Peraturan Pemerintah No. 23/2015 tentang Pengelolaan Bersama Sumber Daya Alam Minyak dan Gas Bumi di Aceh, BPMA berhak mengusulkan kontraktor kontrak kerja sama (KKKS) pada blok tertentu untuk mendapatkan kembali hak pengelolaan setelah kontrak berakhir.

Begitu pula, untuk wilayah kerja yang akan dilelang, komitmen pasti kontraktor yang memiliki wilayah kerja di Aceh hingga berkontrak dengan kontraktor karena berperan sebagai perpanjangan tangan pemerintah. Dari usulan BPMA, nantinya harus menanti persetujuan gubernur dan Menteri Energi dan Sumber Daya Mineral (ESDM).

Dari data (Kementerian ESDM, blok migas yang telah beroperasi di Aceh, yakni Blok Krueng Mane (Eni Krueng Mane Ltd.), Blok Pase (Triangle Pase Inc.), Blok A (Medco Energi), Blok NSB dan North Sumatrea Offshore (NSO) yang sebelumnya dikelola ExxonMobil kemudian beralih kepada Pertamina sejak 2015.

Pengelolaan Blok NSB diintegrasikan dengan Blok NSO. Namun, karena NSO berada lebih 200 mil, pemerintah pusat yang berhak menetapkan nasibnya. Blok NSO merupakan satu dari delapan wilayah kerja habis kontrak yang ditugaskan kepada Pertamina pengelolaannya pada kontrak bagi hasil kotor (gloss split).

“Kita telah rekomendasikan Pertamina Hulu Energi tetap mengelola. Kalau Gubemur setuju dengan BPMA, bisa dimulai."

Bisnis Indonesia, Page-30, Thursday, October 5, 2017