China's Oil and Gas giant is seeking Projects in 30 Countries

China's state-run oil company, China Petroleum and Chemical Corporation or Sinopec, is taking aim 50 projects spread across 30 countries for this year. CNBC reported, for the expansion purposes, Sinopec's management is seeking more than US $ 30 billion.

According to Sinopec's Foreign Cooperation Director, Dai Liqi, the fund is equivalent to double the investment they have overseas in 2010-2015, which amounts to US $ 16 billion. The expansion has become one of the One Belt, One Road or One Belt OBOR echoed Chinese President Xi Jinping.

Dai also believes the expansion of Sinopec's overseas efforts will strengthen China's influence and obtain new oil and gas smuggles. "For Sinopec, this campaign is profitable," he said in Beijing

China has become one of the world's largest importers of energy sources in the last decade. Dai said China's domestic energy power is very limited. "In Chongqing, for example, we have just found shale gas, but the amount is not enough to meet the needs so We were forced to look abroad, "he said.

Therefore, the Chinese government is very ambitious to seek new energy sources, One of them by acquiring assets abroad. One of Sinopec's substantial overseas investments came into being in 2013. At that time, Sinopec bought a third of Apache shares in Egypt worth US $ 3 billion when oil prices fell, Sinopec claims to maintain its performance by producing 350,000 barrels of oil per day in Egypt And made a profit of US $ 620 million.

With that achievement, Sinopec intends to re-invest US $ 1 billion in Egypt in the last three years, one of them on the petrochemical refinery project in the Suez Canal.

This year, Sinopec will acquire Chevron's oil refinery in South Africa. If the US $ 1 billion deal is materialized, Sinopec will have the first major refinery in Africa. Reuters reported Sinopec had won the auction that has been running for one year. But the acquisition process is still hampered by the South African government's stance that oil production is at the level of 110 thousand barrels per refinery per day.

In addition to Africa, Sinopec Commissioner Wang Yupu said it will finance the expansion of four oil refining facilities worth US $ 29.05 billion. The project runs from 2016-2020. Once the project is completed, the capacity of the refining facility will increase to 130 million tons per year.

IN INDONESIAN

Raksasa Migas Cina Incar Proyek di 30 Negara

Perusahaan minyak milik pemerintah Cina, China Petroleum and Chemical Corporation atau Sinopec, sedang membidik 50 proyek yang tersebar di 30 negara untuk tahun ini. CNBC mengabarkan, untuk keperluan ekspansi tersebut, manajemen Sinopec mencari dana lebih dari US$ 30 miliar.

     Menurut Direktur Kerja Sama Luar Negeri Sinopec, Dai Liqi, dana tersebut setara dengan dua kali lipat investasi yang telah mereka alirkan di luar negeri pada 2010-2015, yang mencapai US$ 16 miliar Ekspansi tersebut menjadi salah satu Wujud program One Belt, One Road atau OBOR yang digaungkan Presiden Cina Xi Jinping.

      Dai juga yakin perluasan usaha Sinopec ke luar negeri akan Inemperkuat pengaruh Cina dan memperoleh smnber minyak dan gas baru. “Bagi Sinopec, kampanye ini mendatangkan keuntungan,” kata dia di Beijing

Cina menjadi salah satu pengimpor sumber energi terbesar di dunia dalam satu dekade terakhir Dai mengatakan smnber daya energi dornestik Cina sangat terbatas.“Di Chongqing, misalnya, kami baru saja menemukan sumber gas serpih (shale gas), namun jumlahnya tidak cukup untuk memenuhi kebutuhan sehingga kami terpaksa mencari ke luar negeri,” kata dia. 

     Karena itu pula, pemerintah Cina sangat ambisius untuk mencari sumber energi baru, Salah satunya dengan mengakuisisi aset-aset di luar negeri. Salah satu investasi Sinopec yang cukup besar di luar negeri terwujud pada 2013. Saat itu, Sinopec membeli sepertiga saham proyek Apache di Mesir senilai US$ 3 miliar saat harga minyak turun, Sinopec mengklaim dapat mempertahankan kinerjanya dengan memproduksi 350 ribu barel minyak per hari di Mesir dan meraih keuntungan US$ 620  juta. 

Dengan pencapaian itu, Sinopec berniat untuk kembali menanamkan dana US$ 1 miliar di Mesir dalam tiga tahun terakhir, Salah satunya pada proyek kilang petrokimia di Terusan Suez.

Tahun ini, Sinopec akan mengakuisisi kilang minyak milik Chevron di Afrika Selatan. Jika transaksi senilai US$ 1 miliar ini terwujud, Sinopec akan memiliki kilang besar pertama di Afrika. Reuters mengabarkan Sinopec berhasil memenangi lelang yang telah berjalan selama satu tahun tersebut. Namun proses akuisisi masih terganjal sikap pemerintah Afrika Selatan yang menghendaki produksi minyak berada di level 110 ribu barel per kilang per hari.

Selain di Afrika, Komisaris Sinopec, Wang Yupu, mengatakan pihaknya akan memodali ekspansi empat fasilitas penyulingan minyak senilai US$ 29,05 miliar Proyek ini berjalan pada 2016-2020. Setelah proyek ini selesai, kapasitas fasilitas penyulingan tersebut bertambah menjadi 130 juta ton per tahun.

Koran Tempo, Page-22, Wednesday, May, 17, 2017

Gross Split Scheme Needs Re-Review

The new scheme of production sharing contract (PSC) based on gross split needs to be reviewed. There are concerns that the PSC eliminate cost recovery has the potential to reduce investment interest in the upstream sector of oil and gas (oil and gas).

"Gross split needs to be reviewed again because the scheme is now impressed on the one hand there is no cost recovery, but the government still oversees the cost," said energy observer from Reforminer Institute Pri Agung Rakhmanto

According to the based split offered by the government through gross split fairly rigid. As if it is no different from the previous PSC regime based on cost recovery, the position of the government is more dominant. Although Indonesia has abundant oil and gas resources, however, the position of this country tends to be reluctant to take risks in exploration. Though exploration is the key to converting resources into national oil and gas reserves.

IN INDONESIAN

Skema Gross Split Perlu Dikaji Ulang

Skema baru kontrak bagi hasil (production sharing contract/PSC) berbasis gross split perlu dikaji kembali. Ada kekhawatiran PSC yang meniadakan cost recovery itu berpotensi menurunkan minat investasi di sektor hulu minyak dan gas bumi (migas).

"Gross split perlu ditelaah lagi karena Skema yang sekarang terkesan nanggung. Di satu sisi tidak ada cost recovery, tapi pemerintah masih mengawasi cost," ujar pengamat energi dari  Reforminer Institute Pri Agung Rakhmanto 

Menurutnya based split yang ditawarkan pemerintah melalui gross split terbilang kaku. Seolah tidak ada bedanya dengan rezim PSC terdahulu berbasis cost recovery, yakni posisi pemerintan lebih dominan. Meski Indonesia memiliki sumber daya migas berlimpah, namun, posisi negara ini cenderung enggan mengambil risiko dalam eksplorasi. Padahal eksplorasi merupakan kunci mengubah sumber daya menjadi cadangan migas nasional. 

Media Indonesia, Page-16, Wednesday, May, 17, 2017

Eni Starts Cricket Field Production

The deep sea gas project

Next plan, Merake Field gas drilling

     Eni Muara Bakau BV reported the first production of the Jangkrik gas field in Muara Bakau Block, Makassar Strait, East Kalimantan on Monday. The deep-seated deep-sea gas sequestration is faster than its original target of June 2017. "The start of production is faster than targeting our strategy and capability," Eni's chief executive Claudio Descalzi said.

     The gas from the field is processed by the Cricket Refinery, which has a capacity of up to 450 million standard cubic feet per day (MMSCFD) and 4,100 barrels of condensate per day. Floating plant shaped ship size 200 x 46 x 40 meters is claimed by the government as the largest oil and gas processing facilities in Indonesia.

     The floating plant will support oil and gas production from Eni's deepwater (Eni Deepwater Development) gas project across Muara Bakau Block, about 70 kilometers from the East Kalimantan coastline. The gas will be sucked by the Italian contractor from 10 production wells, which are connected by a 79 kilometer undersea pipeline.

     Descalzi said the refinery will be utilized by domestic users in East Kalimantan and LNG refinery in Bontang. The Ministry of Energy and Mineral Resources also provides domestic gas for PT PLN's power plant

     Eni plans to use the Cricket facility to connect gas sucked from Merakes Field in East Sepinggan Block, Makassar Strait to Bontang Refinery in East Kalimantan.

     The company holds 85 percent stake, while the rest is PT Pertamina. With a gas potential of 2 trillion cubic feet (TCF), Merakes Field will be in production by 2019.

"We will also combine exploration strategies and operational models near the field as well as maximize integrated development," Descalzi said.

     Eni completed the floating processing unit (FPU) of Cricket at the end of March. The cost of this floating production fell from US $ 4.5 to US $ 4.2 billion.

     Energy Minister Ignatius Jonan had earlier appreciated the contractor for the completion of the construction of a faster ship a year from schedule. He asked Eni to combine the processing facilities with other contractor-run fields to reduce costs.

     The potential contractor is Chevron Indonesia Company, which also manages the IDD Bangka and Gendalo-Gehem projects. Eni has a 20 percent stake in the Bangka project. Jonan also asked Eni to enlarge the refinery capacity to 800 MMSCFD.

"Hopefully Chevron's IDD project can use the FPU facility. So, no need to build again, "said Jonan.

     The government signed the Jangkrik project contract with Eni in 2002. Eni discovered gas in 2009 at the Jangkrik-1 well line, followed by a second discovery in 2011. The gas project consists of two integrated development plans (POD) In 2011 and 2013. 

     The shares of the Jangkrik gas project currently owned by Eni Muara Bakau is 55 percent. The rest are Engie E & P and PT Saka Energi Muara Bakau each 33.3 percent and 11.7 percent.

IN INDONESIAN

Proyek gas laut dalam

Eni Mulai Produksi Lapangan Jangkrik

Rencana selanjutnya, pengeboran gas Lapangan Merakes

Eni Muara Bakau BV melaporkan produksi pertama lapangan gas Jangkrik di Blok Muara Bakau, Selat Makassar, Kalimantan Timur, Senin lalu. Penyedotan gas laut dalam ini lebih cepat dari target semula, yaitu pada Juni 2017. “Dimulainya produksi lebih cepat dari target mengukuhkan strategi dan kemampuan kami,” kata Kepala Eksekutif Eni, Claudio Descalzi.

Gas dari lapangan ini diolah oleh kilang Jangkrik, yang memiliki kapasitas hingga 450 juta standar kaki kubik per hari (MMSCFD) dan kondensat sebanyak 4.100 barel per hari. Kilang terapung berbentuk kapal berukuran 200 x 46 x 40 meter ini diklaim pemerintah sebagai fasilitas pengolahan minyak dan gas terbesar di Indonesia.

Kilang terapung ini akan menyokong produksi minyak dan gas dari proyek gas laut dalam (Indonesia Deepwater Development) Eni di seluruh Blok Muara Bakau, sekitar 70 kilometer dari garis pantai Kalimantan Timur.  Gas akan disedot kontraktor asal Italia ini dari 10 sumur produksi, yang terhubung oleh pipa bawah laut sepanjang 79 kilometer.

Descalzi mengatakan, hasil produksi kilang ini akan dimanfaatkan oleh pengguna domestik di Kalimantan Timur dan kilang gas alam cair (LNG) di Bontang. Kementerian Energi dan Sumber Daya Mineral juga memberi bagain gas domestik untuk pembangkit listrik PT PLN

Eni berencana memakai fasilitas Jangkrik untuk menghubungkan gas yang disedot dari Lapangan Merakes di Blok East Sepinggan, Selat Makassar ke Kilang Bontang di Kalimantan Timur.

Perusahaan ini mengantongi 85 persen saham, Sementara Sisanya   PT Pertamina. Dengan potensi gas sebanyak 2 triliun kaki kubik (TCF), Lapangan Merakes akan berproduksi pada 2019.

“Kami juga akan menggabungkan strategi eksplorasi dan model operasional dekat lapangan Serta memaksimalkan pengembangan terintegrasi,” kata Descalzi.

Eni menyelesaikan fasilitas pengolahan gas terapung (floating processing unit/ FPU) Jangkrik pada akhir Maret lalu. Biaya produksi kilang terapung ini turun dari US$ 4,5 menjadi US$ 4,2 miliar.

Menteri Energi Ignasius Jonan sebelumnya mengapresiasi kontraktor tersebut atas selesainya pembangunan kapal yang lebih cepat setahun dari jadwal. Dia meminta Eni turut menggabungkan fasilitas pengolahannya dengan lapangan yang dikelola kontraktor lain untuk menekan biaya. 

Kontraktor yang bisa menjadi mitra potensial adalah Chevron Indonesia Company, yang juga mengelola proyek IDD Bangka dan Gendalo-Gehem. Adapun Eni memiliki 20 persen saham dalam proyek Bangka. Jonan juga meminta Eni bisa memperbesar kapasitas kilang menjadi 800 MMSCFD.

“Mudah-mudahan proyek IDD yang dikerjakan Chevron bisa menggunakan fasilitas FPU. Jadi, tidak usah membangun lagi,” ujar Jonan.

Pemerintah meneken kontrak proyek Jangkrik bersama Eni pada 2002. Eni baru menemukan gas pada 2009 di garis sumur Jangkrik-1, yang disusul penemuan kedua pada 2011. Proyek gas ini terdiri atas dua dokumen pengembangan (plan of development/POD) terintegrasi, yang disetujui pemerintah pada 2011 dan 2013. 

     Saham proyek gas Jangkrik saat ini dimiliki Eni Muara Bakau sebesar 55 persen. Sisanya Engie E&P dan PT Saka Energi Muara Bakau masing-masing 33,3 persen dan 11,7 persen.

Koran Tempo, Page-21, Wednesday, May, 17, 2017

Chevron Reviewing Continuation of Oil Dewatering

Chevron Pacific Indonesia has not yet determined the continuation of the enhanced oil recovery (EOR) project at Minas Field, Rokan Block, Riau. Chevron's Senior Vice President of Government Policy and Public Affairs, Yanto Sianipar, said Chevron's management is reviewing the viability of the project after the government guarantees an investment return for oil and gas blocks that will expire.

"We are evaluating how it affects our contracts," he said. Further study was followed after the Ministry of Energy and Mineral Resources issued Ministerial Regulation No. 26 of 2017, which required new managers of oil and gas blocks to reimburse the investment costs incurred by old operators.

The goal is that the old operator will not hesitate to issue an investment even though the contract will expire. Deputy Minister of Energy Arcandra Tahar pointed out, the new contractor must replace the old contractor's funds investing US $ 10 million to drill a well two years before the contract ends with the same value.

"When drilling, production is not always available right away. The increase in production is even enjoyed by new contractors. "

Based on the regulation, the payment value must be approved by the Upstream Oil and Gas Upstream Business Unit (SKK Migas).

Chevron was reluctant to continue the EOR project at Minas Field due to wait for certainty of extension of operation after 2021. The company also applied for a contract extension to the government.

      President Director Chevron Pacific Indonesia, Albert Simanjuntak, claims the EOR project could increase oil production by 17-22 percent per single point of drilling. Another reason for the termination of the project, Albert said, was the low price of oil. Chevron has already conducted two pilot phases that cost approximately US $ 222 million.

IN INDONESIAN

Chevron Kaji Ulang Kelanjutan Pengurasan Minyak

Chevron Pacific Indonesia belum menentukan kelanjutan proyek pengurasan minyak (enhanced oil recovery/EOR) di Lapangan Minas, Blok Rokan, Riau. Senior Vice President Policy Government and Public Affairs Chevron, Yanto Sianipar, mengatakan manajemen Chevron sedang mengkaji kelangsungan proyek ini setelah pemerintah menjamin pengembalian investasi untuk blok minyak dan gas yang akan habis masa berlakunya. 

“Kami sedang mengevaluasi, bagaimana dampaknya terhadap kontrak kami,” kata dia. Studi lanjutan ditempuh setelah Kementerian Energi dan Sumber Daya Mineral menerbitkan Peraturan Menteri Nomor 26 Tahun 2017, yang mewajibkan pengelola baru blok migas mengganti biaya investasi yang dikeluarkan operator lama. 

Tujuannya, operator lama tidak ragu mengeluarkan investasi meskipun kontraknya bakal kedaluwarsa. Wakil Menteri Energi Arcandra Tahar mencontohkan, kontraktor baru harus mengganti dana kontraktor lama yang menanamkan investasi US$ 10 juta untuk mengebor sumur dua tahun sebelum kontrak berakhir dengan nilai yang sama. 

“Ketika pengeboran, produksinya tidak selalu didapat saat itu juga. Kenaikan produksi malah dinikmati kontraktor baru.”

     Berdasarkan aturan tersebut, nilai pembayaran harus disetujui oleh Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

Chevron sempat tidak mau melanjutkan proyek EOR di Lapangan Minas lantaran menunggu kepastian perpanjangan masa operasi setelah 2021. Perusahaan juga mengajukan permohonan perpanjangan kontrak kepada pemerintah.

    Presiden Direktur Chevron Pacific Indonesia, Albert Simanjuntak, mengklaim proyek EOR bisa menambah produksi minyak hingga 17-22 persen per satu titik pengeboran. Alasan lain penghentian proyek, kata Albert, adalah rendahnya harga minyak. Chevron sudah melakukan dua tahap uji coba yang menghabiskan biaya sekitar US$ 222 juta.

Koran Tempo, Page-21, Wednesday, May, 17, 2017

Inpex to start works for Masela plan

NATURAL LNG

After protracted negotiations and politically-driven changes in the development plan, Japanese oil and gas firm lnpex Corp. has reiterated its readiness to soon kick off preparation works in the gas-rich Masela block.

Inpex CEO Toshiaki Kitamura expressed this commitment during a meeting with Energy and Mineral Resources Minister Ignasius Jonan in Tokyo, Japan, on Tuesday according to a press statement issued by the ministry. 

The response came up after Jonan called on Inpex to start discussions with the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), so that the process of the pre-front-end engineering design (pre-FEED), which comprises of the production capacity and onshore liquefied natural gas (LNG) plant location, can begin soon, the statement said.

The location of the plant has been a point of contention since President Joko “Jokowi” Widodo demanded the project be developed onshore rather than offshore, as initially planned.

However, Jonan confirmed that lnpex, which has a 65 percent share in the block, could pick one of three islands, namely Selaru, Aru or Yamdena in Maluku.

“The government does not have any preference on the location,” Jonan said, adding that the two parties had agreed to determine the site after the pre-FEED completion.

The project has been in the spotlight since the President decided last March that it must be carried out according to an onshore scheme on considerations of greater multiplier effects on the regional economy, particularly job creation, such as through the construction of petrochemical and fertilizer plants nearby.

The earlier offshore scheme, however, would have allowed the gas field to commence production as well as operations sooner, namely by 2024 and 2026, respectively just two years shy of the expiration of the contracts of Inpex and its partner, Royal Dutch Shell.

To compensate for the potential loss of time caused by the scheme’s revision, the government has promised an additional seven years to their contracts and considered Inpex’s request for cost recovery worth US$1.2 billion following an audit.

The two contractors originally submitted their plan of development (POD) for an offshore scheme in 2010, but the discovery of larger reserves led both to submit a revised POD last year to adjust the floating LNG plant capacity to 7.5 million tons per year (mtpa), up from 2.5 million tons.

The government has officially offered them two options for the LNG plant capacity namely 'Z5 mtpa with 474 million standard cubic feet of pipe gas per day (mmscfd) or 9.5 mtpa with 160 mmscfd. Located in Indonesia’s eastern province of Maluku, the gas-rich Masela block is estimated to produce 1,200 mmscfd and 24,000 barrels of condensate each day for 24 years.

The project is expected to cost a maximum US$16 billion, much less than the $22 billion estimated previously.

However, the negotiations dragged on even after Japanese Prime Minister Shinzo Abe met with Jokowi in January. Following the apparent standstill, Jonan threatened to revoke the production-sharing contract (PSC) if the contractors fail to conduct a pre-FEED in the near future.

Separately, Inpex spokesman Usman Slamet told The Jakarta Post that the firm kept its target to execute the project in the most economically and technically feasible way.

Jakarta Post, Page-13, Wednesday, May, 17, 2017

Gas Flares will be sold through Open Auction

The government will launch flare gas from oil and gas fields throughout Indonesia through an open auction. The auction will be conducted by the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas).

This decree is in accordance with the Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 32 of 2017 on the utilization and selling price of flare gas in upstream oil and gas activities published earlier this month. The beleid is intended to increase the utilization of flare gas while minimizing the burning of this residual gas, as well as reducing greenhouse gas emissions from upstream oil and gas activities.

Article 4 beleid stipulates that the buyer of gas flare shall be determined through the bid mechanism by SKK Migas. The bid is based on the data of the potential of the flare gas that has been prepared in advance.

To carry out this auction, SKK Migas is required to establish a Potential Gas Supply Team consisting of personnel with technical, economic, financial, legal, and other competencies. For the flare gas price, pursuant to Article 12, will be proposed SKK Migas based on the results of the bidding. Later ESDM Minister will set the price and its allocation. For the selling price of this flare gas, no escalation, take or pay (TOP) and standby letter of credit (SBLC) are required. No limits on the sale price of this flare gas.

"In the future, bidding, (flare gas price) could be US $ 4 per MMBTU, could be US $ 3 per MMBTU, whatever," said Deputy Minister of Energy and Mineral Resources Arcandra Tahar

For companies or government agencies interested in purchasing gas flares, must submit an application to SKK Migas. In accordance with Article 7, the prospective buyer shall also attach the offer price, investment commitment, the time period of onstream, the implementation guarantee of 1% of the investment value, the proof of annual tax payment, and the application letter with the prospective buyer profile.

Furthermore, the Team for Potential Gas Supply Supply will evaluate the document within 15 days of receipt. The next stage, from the evaluation result, the Team will propose the prospective buyer to SKK Migas by addressing to the Director General of Oil and Gas with an assessment of investment commitment.

SKK Migas then submits the results of this auction to the Minister of Energy and Mineral Resources authorized to determine the buyer of flare gas. However, if there is only one candidate in the auction, then SKK Migas can appoint a potential buyer to be proposed to the Minister of EMR.

Meanwhile, if there are no interested buyers or no offer that meets the price according to the formula, the ESDM Minister may assign assignments to government agencies, BUMN, BUMD or national private companies.

Meanwhile, for the sale of flared gas which has been signed before Minister Regulation 32/2017 issued pursuant to Article 16, is declared to remain in force. Then for the use of flare gas and the contract has not been signed, the price is set at least US $ 0.35 per million british thermal unit (MMBTU) and maximum US $ 3.67 per MMBTU.

"Later, like Gross Split, we use an average of US $ 3.67 per MMBTU," said Arcandra, adding that the reducing factors are H2S and C02. So if in the utilization of the already running flare gas buyers have built processing facilities and no substance follow-up, the gas price is set at US $ 3.67 per MMBTU.

Fulfill Obligations

On the other hand, Article 10 of this Ministerial Regulation 32/2017 specifies the obligations of the purchaser of flare gas. First, the buyer must begin the process of flare gas activity no later than three months from the date of stipulation. Then, within a year thereafter, the buyer must utilize the on-air flare gas.

When the buyer does not perform this obligation, SKK Migas may propose the revocation of the stipulation of the gas flotation buyer and its allocation to the Minister of EMR. Meanwhile, if the utilization expires beyond the time period, then the guarantee of execution will be disbursed and deposited to the state treasury. The duration of utilization of the flare gas itself, according to Article 15, is until the gas runs out.

"In the event of potential flare gas passing through the term of production sharing contract (PSC), the new contractor or extension contractor shall extend the utilization of the flare gas," read Article 16 of Ministerial Regulation 32/20 17.

The government does not restrict the utilization of this flare gas. In Article 3 mentioned flare gas in use for electricity generation, gas utilization through industrial or household pipes, compressed natural gas (CNG), liquefied petroleum gas (LPG), Dimethyl Ether, or other purposes According to the composition.

Based on data from the Ministry of Energy and Mineral Resources, in 2016, the potential for flare gas to reach 200 mmscfd. But following the report on combustion implementation, the flare gas utilized was about 83.4 mmscfd. The distribution of flare gas is in West Java, Central Java, East Java, East Kalimantan, South Sumatra, Jambi, Aceh which is spread over about 175 chimney burning.

The total gas burned daily is about 170 mmscfd. In addition to the small volume and difficult to predict its continuity, flare gas generally has a fairly high impurities of CO2 and H2S.

IN INDONESIAN

Gas Suar akan Dijual Lewat Lelang Terbuka

Pemerintah akan menavvarkan gas suar (flare gas) dari Iapangan-lapangan migas di seluruh Indonesia melalui lelang terbuka. Lelang akan dilakukan oleh Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

Ketetapan ini sesuai dengan Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) No 32 Tahun 2017 tentang pemanfaatan dan harga jual gas suar pada kegiatan hulu migas yang diterbitkan pada awal bulan ini. Beleid ini dimaksudkan untuk meningkatan pemanfaatan gas suar sekaligus meminimalkan pembakaran gas sisa ini, serta mengurangi emisi gas rumah kaca dari kegiatan hulu migas.

Pasal 4 beleid ini menetapkan pembeli gas suar ditetapkan melalui mekanisme penawaran yang dilakukan oleh SKK Migas. Penawaran dilakukan berdasarkan data potensi gas suar yang telah disusun terlebih dahulu.

Untuk melaksanakan lelang ini, SKK Migas diwajibkan membentuk Tim Penawaran Potensi Gas Suar yang terdiri dari tenaga yang memiliki kompetensi di bidang teknis, ekonomi, keuangan, hukum, dan bidang lainnya. Untuk harga gas suar, sesuai Pasal 12, akan diusulkan SKK Migas berdasarkan hasil penawaran. Nantinya Menteri ESDM yang akan menetapkan harga dan alokasinya. Untuk harga jual gas suar ini ditetapkan tidak diberlakukan eskalasi, take or pay (TOP), dan stand by letter of credit (SBLC). Tidak ditentukan pula batasan harga jual gas suar ini.

“Ke depan itu bidding, (harga gas suar) bisa US$ 4 per MMBTU, bisa US$ 3 per MMBTU, terserah,” kata Wakil Menteri ESDM Arcandra Tahar 

Bagi perusahaan atau lembaga pemerintah yangi berminat membeli gas suar, harus menyampaikan permohonan kepada SKK Migas. Sesuai Pasal 7, calon pembeli juga wajib melampirkan harga penawaran, komitmen investasi, jangka waktu onstream, jaminan pelaksanaan sebesar 1% dari nilai investasi, bukti pembayaran pajak tahunan, dan surat permohonan yang dilengkapi profil calon pembeli.

Selanjutnya, Tim Penawaran Potensi Gas Suar akan mengevaluasi dokumen tersebut paling lama 15 hari sejak diterima. Tahap berikutnya, dari hasil evaluasi, Tim akan mengusulkan calon pembeli kepada SKK Migas dengan ditujukan kepada Direktur Jenderal Minyak dan Gas Bumi dengan penilaian komitmen investasinya. 

SKK Migas kemudian menyampaikan hasil lelang ini kepada Menteri ESDM yang berwenang menetapkan pembeli gas suar. Namun jika dalam lelang hanya terdapat satu calon, maka SKK Migas bisa menunjuk langsung calon pembeli untuk diusulkan ke Menteri ESDM.

Sementara jika tidak terdapat calon pembeli yang berminat atau tidak ada penawaran yang memenuhi harga sesuai formula, Menteri ESDM dapat memberikan penugasan kepada lembaga pemerintah, BUMN, BUMD, atau perusahaan swasta nasional.

Sementara untuk penjualan gas suar yang telah diteken sebelum Peraturan Menteri 32/2017 diterbitkan mengacu Pasal 16, dinyatakan tetap berlaku. Kemudian untuk pemanfaatan gas suar dan kontraknya belum diteken, harganya ditetapkan minimal US$ 0,35 per juta british thermal unit (MMBTU) dan maksimal US$ 3,67 per MMBTU.

"Nanti seperti Gross Split, dipakai rata-rata US$ 3,67 per MMBTU. Nanti dikurangi faktor pengurang, yaitu H2S dan C02," kata Arcandra. Sehingga jika dalam pemanfaatan gas suar yang sudah berjalan pembeli telah membangun fasilitas pengolahan dan tidak ada zat ikutan, harga gasnya ditetapkan US$ 3,67 per MMBTU.

Penuhi Kewajiban

Di sisi lain, Pasal 10 Peraturan Menteri 32/2017 ini merinci kewajiban-kewajiban pembeli gas suar. Pertama, pembeli wajib memulai proses kegiatan gas suar paling lama tiga bulan sejak tanggal penetapan. Kemudian, dalam satu tahun setelahnya, pembeli harus memanfaatkan gas suar yang telah diberikan (on stream).

Ketika pembeli tidak menjalankan kewajiban ini, SKK Migas dapat mengusulkan pencabutan penetapan pembeli gas suar dan alokasinya kepada Menteri ESDM. Sementara jika dimulai pemanfaatannya melebihi jangka waktu, maka jaminan pelaksanaan akan dicairkan dan disetorkan ke kas negara. Jangka waktu pemanfaatan gas suar sendiri, sesuai Pasal 15, adalah sampai gas tersebut habis.

“Dalam hal potensi gas suar melewati jangka waktu kontrak kerja sama (production sharing contract/ PSC) , kontraktror yang mendapat perpanjangan atau kontraktor baru wajib memperpanjang pemanfaatan gas suar," demikian tertulis dalam Pasal 16 Peraturan Menteri 32/ 20 17.

Pemerintah tidak membatasi pemanfaatan gas suar ini. Dalam Pasal 3 disebutkan gas suar dalam dipakai untuk keperluan pembangkitan listrik, pemanfaatan gas melalui pipa untuk industri atau rumah tangga, gas terkompresi (compressed natural gas/ CNG), gas minyak cair (liquefied petroleum gas/ LPG), Dimetil Eter, atau keperluan lainnya sesuai dengan komposisinya.

Berdasarkan data Kementerian ESDM, pada 2016, potensi gas suar mencapai 200 mmscfd. Namun mengikuti laporan pelaksanaan pembakaran, gas suar yang dimanfaatkan sekitar 83,4 mmscfd. Sebaran gas suar ada di Jawa Barat, Jawa Tengah, Jawa Timur, Kalimantan Timur, Sumsel, Jambi, Aceh yang tersebar di sekitar 175 cerobong pembakaran. 

Total gas yang dibakar tiap hari sekitar 170 mmscfd. Disamping volumenya kecil dan sulit diperkirakan kelangsungannya, gas suar umumnya memiliki kotoran yang cukup tinggi yaitu CO2 dan H2S.

Investor Daily, Page-9, Wednesday, May, 17, 2017

Oil Imports Predicted 2.2 million bpd by 2025

Indonesia is expected to import 2.2 million barrels of oil per day by 2025 if not accompanied by an increase in domestic production. Domestic oil production is currently at an average of 800,000 bpd.

"Imports of that with the assumption that the refinery in the country has been built.If the refinery capacity is still not increased, the import is done at a more expensive price," said Energy Expert from Tri Sakti University Pri Agung Rakhmanto

According to him, to increase oil production in the country need support from the government because it requires a big investment. Otherwise, the size of any oil reserves in Indonesia will only be a potential if there is no effort to produce. In terms of reserves currently only 3.3 billion barrels.

He also mentioned oil potential in Indonesia reached 151 billion barrels with reserves of 3.3 billion barrels. Until whenever it will only be a potential if there is no investment effort.

Therefore, the upstream oil and gas industry needs investment guarantees and long-term solutions from the government so that the upstream oil and gas industry is enthusiastic in the midst of declining world oil prices. He considered related licensing bureaucracy is still a major obstacle to oil and gas exploration.

Not only that, the oil and gas industry is also concerned with the concept of oil and gas revenue sharing using gross split to replace cost recovery. The concept of gross profit sharing based on oil and gas gross production is considered not attractive to investors because the base split is set before the reserve amount is found.

Based on Regulation of the Minister of Energy and Mineral Resources (ESDM) No. 8/2017 base split for oil 57% for government and 43% to be part of contractor. While the gas is set at 52% government and the remaining 48% of the contractor.

He thinks the base split for the government is too big because the cost of developing the entire working area is borne by the contractor, not to mention burdened with taxes. Base split should be negotiated according to reasonableness with a range of 30-35% for the government.

He said the more profit-sharing the contractors receive to develop sustainable upstream oil and gas projects. In addition, the concept of gross split should not apply to all oil and gas contracts in Indonesia. This concept should be offered as a form of contract option only.

We recommend that the gross split concept be applied selectively to oil and gas blocks to attract investment and exploration interests. All can not be equated. Therefore, the profit-sharing figures in the gross split should be something that can be negotiated, not the direction of the government.

Meanwhile, Senior Vice President of Policy, Government and Public Affairs of Chevron Pacific Indonesia Yanto Sianipar said that currently CPI is still monitoring the various new policies issued by the government. Chevron's continuing investment is not only seen from the availability of reserves, but also from various aspects that affect business certainty.

"We see investments from all sides, especially in terms of business certainty, not one or two are seen, but a lot of things." From the regulation side, the certainty of the implementation of the law becomes a concern to be considered, "he said.

     Executive Director of IPA Marjolijn Elisabeth Wajong said that upstream oil and gas investment continues to decline. It said upstream oil and gas investment in 2016 decreased 27% compared with the previous year.

IN INDONESIAN

lmpor Minyak Diprediksi 2,2 juta bph pada 2025

Indonesia diperkirakan akan mengimpor minyak mentah 2,2juta barel per hari pada 2025 jika tidak dibarengi dengan peningkatan produksi di dalam negeri. Produksi minyak di dalam negeri saat ini rata-rata sebesar 800.000 bph.

"Impor sebesar itu dengan asumsi kilang di dalam negeri sudah terbangun. Apabila kapasitas kilang masih belum bertambah, impor dilakukan dengan harga yang lebih mahal," ujar Pakar Energi dari Universitas Tri Sakti Pri Agung Rakhmanto

Menurut dia, untuk meningkatkan produksi minyak di dalam negeri perlu dukungan dari pemerintah karena membutuhkan investasi besar. Jika tidak, sebesar apa pun cadangan minyak di Indonesia hanya akan menjadi potensi bila tidak ada upaya melakukan produksi. Dari sisi cadangan saat ini hanya 3,3 miliar barel.

Dia pun menyebut potensi minyak di Indonesia mencapai 151 miliar barel dengan cadangan sebesar 3,3 miliar barel. Sampai kapan pun hanya akan menjadi potensi jika tidak ada upaya investasi.

Karena itu, industri hulu migas perlu jaminan investasi dan solusi jangka panjang dari pemerintah supaya industri hulu migas bergairah di tengah merosotnya harga minyak dunia. Dia beranggapan terkait birokrasi perizinan masih menjadi kendala utama eksplorasi migas.

Tidak hanya itu, industri migas saat ini juga risau dengan konsep bagi hasil migas menggunakan gross split menggantikan cost recovery. Konsep bagi hasil kotor berdasar produksi bruto migas dinilai belum menarik investor karena base split jauh ditetapkan sebelum jumlah cadangan ditemukan.

Berdasarkan Peraturan Menteri Energi dan Sumber Daya Mineral (ESDM) No 8/2017 base split untuk minyak 57% untuk pemerintah dan 43% menjadi bagian kontraktor. Sementara gas ditetapkan sebesar 52% pemerintah dan sisanya sebesar 48% bagian kontraktor.

Dia beranggapan base split untuk pemerintah terlalu besar karena biaya pengembangan wilayah kerja secara keseluruhan ditanggung kontraktor, belum lagi dibebani dengan pajak. Base split sebaiknya dinegosiasikan sesuai kewajaran dengan kisaran 30-35% untuk pemerintah.

Dia mengatakan, bagi hasil lebih yang diterima kontraktor untuk mengembangkan proyek hulu migas secara berkelanjutan. Di samping itu, sebaiknya konsep gross split tidak diberlakukan terhadap seluruh kontrak migas di Indonesia. Konsep ini sebaiknya ditawarkan sebagai salah satu bentuk pilihan kontrak saja. 

Sebaiknya konsep gross split diterapkan secara selektif terhadap blok migas untuk menarik minat investasi dan eksplorasi. Semua tidak bisa disamakan. Karena itu angka-angka bagi hasil dalam gross split sebaiknya menjadi sesuatu yang bisa dinegosiasikan, bukan searah dari pemerintah.

Sementara itu, Senior Vice President Policy, Government and Public Affairs Chevron Pacific Indonesia Yanto Sianipar mengatakan bahwa saat ini CPI masih terus memantau berbagai kebijakan baru yang dikeluarkan pemerintah. Kelanjutan investasi Chevron tidak hanya dilihat dari sisi ketersediaan cadangan, namun juga dari berbagai aspek yang memengaruhi kepastian usaha. 

"Kami melihat investasi dari seluruh sisi, khususnya dari sisi kepastian usaha bukan satu-dua saja yang dilihat, tapi banyak hal. Dari sisi regulasi, kepastian pelaksanaan undang-undang menjadi konsen yang harus dipertimbangkan,” kata dia.

     Direktur Eksekutif IPA Marjolijn Elisabeth Wajong mengatakan, investasi hulu migas terus mengalami penurunan. Pihaknya menyebut investasi hulu migas pada 2016 menurun 27% dibandingkan dengan tahun sebelumnya.

Koran Sindo, Page-8, Wednesday, May, 17, 2017

The Upstream Oil and Gas Business Is Hampered By Rules

In recent years, upstream oil and gas investment in Indonesia is in declining trend. In addition to the oil price factor, certainty of rules in the sector is also a consideration for investors investing in the sector.

From year to year oil and gas production in Indonesia continues to decline. The price of oil that continues to slip more and more causes upstream oil and gas activities in the country more lethargic.

Substitution of national leadership from Susilo Bambang Yudhoyono to Joko Widodo still not able to change the condition of upstream oil and gas business in Indonesia. It is not surprising that Fraser Institute institutions place Indonesia under Timor Leste and even Papua New Guinea in an attractive country for upstream oil and gas investment in the Oceania region.

The classic problem with no solution in this business is a matter of return on investment in upstream oil and gas and business certainty. Especially lately, the government hobby to change the rules of oil and gas business. Two things become the main reference of investors if they want to invest in upstream oil and gas.

For global oil companies, before deciding to invest in Indonesia it will definitely compare the two conditions with other countries. Understandably, this upstream oil and gas investment requires very thick money and the rate of return takes a long time.

Syamsu Alam, Upstream Director of PT Pertamina acknowledged the condition. But on the other hand, upstream oil and gas investment in the country is still attractive. This is evident from the presence of several oil and gas fields ready for exploration. "The investment climate will be attractive if the clear regulation and return of investment are also adequate.The classic issue is still disturbing investors investing in this sector," he said.

Freeing investors

Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs of Chevron Indonesia revealed the same thing. When will invest, the company from Uncle Sam's country must see many things. One of the crucial things is from the certainty of investing in upstream oil and gas.

So according to Yanto, many things of concern. "As regulation, certainty of implementation, contract, law, become one accumulation of concern that we should consider when investing in Indonesia,"

Marjolijn Wajong, Executive Director of Indonesia Petroleum Association (IPA) stated that the government's attention under President Joko Widodo in oil and gas sector is still lacking. This is reflected in the state's income in the oil and gas sector that is leaning down, besides the impact of the world oil price.

Actually, the government is no less trying to boost the oil and gas business in the country. The Ministry of Energy and Mineral Resources (ESDM) has issued various regulations. "A lot of good rules, but still less competitive, this should be improved," said Marjolijn.

An energy observer from the Reforminer Institute, Pri Agung Rakhmanto, considers that domestic oil and gas upstream investment is not competitive rather than domestically because there are crucial issues to be addressed. Ie about the uncertainty of the rules of the game in this sector. He showed the revision of the Oil and Gas Law which is still not completed yet.

Then still added to the issue of taxation because there is Government Regulation No. 79 of 2010 on cost recovery. "Then the old bureaucracy, the decision-making process, the licensing is not simple either at the center or in the regions," said Pri Agung

The government itself, according to Pri Agung cautiously respond to these conditions. This is evidenced by the re-emergence of a number of rules in the upstream sector of oil and gas. One is about the gross split scheme. However Pri Agung criticized the rule, because it could burden the upstream oil and gas investors. Moreover, the condition of oil prices is still not fully awake.

He suggested, one of the rules of the base split is not actually applied rigidly, but based on negotiations. According to him, the split range for government royalty is between 30-35% only.

The second solution is the government must be consistent. If you want to use a gross split scheme similar to law and royalty, the government should quit the production sharing contract (PSC) scheme. The final solution does not force investors to use the gross split scheme. The goal is to make investors comfortable. "So the investor can choose, the current rules are conditioned to no choice," said Pri Agung.

IN INDONESIAN

Bisnis Hulu Migas Terbentur Aturan

Beberapa tahun terakhir, investasi hulu migas di Indonesia dalam tren menurun. Selain faktor harga minyak, kepastian aturan di sektor tersebut juga menjadi pertimbangan bagi para investor menanamkan modal di sektor tersebut.

Dari tahun ke tahun produksi minyak dan gas bumi Indonesia terus menurun. Harga minyak yang terus terpeleset semakin menyebabkan kegiatan hulu migas di tanah air semakin lesu.

Pergantian kepemimpinan nasional dari Susilo Bambang Yudhoyono ke Joko Widodo masih belum mampu mengubah kondisi bisnis hulu migas di Indonesia. Tidak heran bila lembaga Fraser Institute menempatkan Indonesia di bawah Timor Leste bahkan Papua Nugini dalam urutan negara yang atraktif bagi investasi hulu migas di kawasan Oseania.

Masalah klasik yang tidak ada kunjung solusi di bisnis ini adalah soal pengembalian investasi di hulu migas dan kepastian berbisnis. Apalagi belakangan ini, pemerintah hobi mengubah aturan bisnis migas. Dua hal menjadi acuan utama investor bila ingin berinvestasi di hulu migas. 

Bagi perusahaan minyak global, sebelum memutuskan berinvestasi di Indonesia sudah pasti akan membandingkan kedua kondisi tersebut dengan negara lain. Maklum, investasi hulu migas ini membutuhkan uang sangat tebal dan tingkat imbal hasil membutuhkan waktu panjang.

Syamsu Alam, Direktur Hulu PT Pertamina mengakui kondisi tersebut. Tapi di sisi lain, investasi hulu migas di tanah air masih menarik. Hal ini terbukti dari masih adanya beberapa lapangan migas yang siap eksplorasi. "lklim investasi akan menarik bila regulasi clear dan return of invesment juga memadai. Isu klasik memang masih mengganggu investor berinvestasi di sektor ini," katanya

Membebaskan investor

Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs Chevron Indonesia mengungkapkan hal senada. Tatkala akan berinvestasi, perusahaan asal negeri Paman Sam tersebut harus melihat banyak hal. Salah satu hal krusial adalah dari sisi kepastian berinvestasi di hulu migas.

Jadi menurut Yanto, banyak hal yang menjadi perhatian. "Seperti regulasi, kepastian pelaksanaan, kontrak, undang-undang, menjadi satu akumulasi concern yang harus kami pertimbangkan bila berinvestasi di Indonesia," 

Marjolijn Wajong, Direktur Eksekutif Indonesia Petroleum Association (IPA) justru menyebutkan, perhatian pemerintah di bawah pimpinan Presiden Joko Widodo di sektor migas masih kurang. Ini tercermin dari pendapatan negara di sektor migas yang condong turun selain memang imbas lesunya harga minyak dunia.

Sebenarnya, pemerintah tidak kurang berupaya mendongkrak bisnis migas di tanah air. Kementerian Energi dan Sumber Daya Mineral (ESDM) sudah menerbitkan beragam aturan. "Banyak aturan bagus, tapi tetap kurang kompetitif, ini yang harus ditingkatkan," tegas Marjolijn.

Pengamat energi dari Reforminer Institute, Pri Agung Rakhmanto, menilai, tidak kompetitifnya investasi hulu migas di dalam negeri daripada di dalam negeri karena ada masalah krusial yang harus dibenahi. Yakni soal ketidakpastian aturan main disektor ini. Ia menunjukan revisi Undang Undang Migas yang hingga kini masih belum rampung.

Lalu masih ditambah lagi dengan persoalan perpajakan karena ada Peraturan Pemerintah Nomor 79 tahun 2010 tentang cost recovery. "Kemudian birokrasi lama, proses pengambilan keputusan, perizinan tidak sederhana baik di pusat maupun di daerah," kata Pri Agung

Pemerintah sendiri, menurut Pri Agung bersikap hati-hati merespons kondisi tersebut. Ini terbukti dengan munculnya kembali sejumlah aturan di sektor hulu migas. Salah satunya adalah tentang skema gross split. Namun Pri Agung mengkritisi aturan tersebut, karena bisa memberatkan investor hulu migas. Apalagi kondisi harga minyak memang masih belum sepenuhnya siuman.

Ia menyarankan, salah satu aturan yakni base split sebenarnya tidak diterapkan secara kaku, tapi berdasarkan negosiasi. Menurutnya, rentang split untuk royalti pemerintah di antara 30-35% saja.

Solusi kedua adalah pemerintah harus konsisten. Jika ingin menggunakan skema gross split yang mirip dengan law and royalty, pemerintah harus keluar dari skema production sharing contract (PSC). Solusi terakhir, tidak memaksakan investor menggunakan skema gross split. Tujuannya adalah agar para investor nyaman. "Jadi invostor bisa memilih, peraturan yang sekarang itu mengkondisikan untuk tidak ada pilihan," tegas Pri Agung.

Kontan, Page-12, Wednesday, May, 17, 2017