K3S Asked to Participate in Developing Sumenep Tourism Destination

Sumenep regency government asks contractor cooperation contract (K3S) or oil and gas wells management company that operates the eastern district of Madura Island to participate in developing the existing tourist destinations with programs in the form of development of the tourist attraction.

Vice Regent of Sumenep, Achmad Fauzi, said that K3S does have its own procedure in determining the program in any form. However, as the local government still requested that KSS participate in the success of local government programs, one of which visit Sumenep 2018. "K3S activities have been compiled and determined through the procedures it has. However, we ask that in the preparation of the program there are programs that are encouraging to the development of tourism in Sumenep, "said Vice Regent Sumenep Achmad Fauzi, Tuesday (9/5).

According to Fauzi, Santos Pty Ltd Coordination Operations Supervision (PPO) Meeting on the Santos PPO plan in Giligenting sub-district in the hall of one of the hotels in Kecamatan Kota (9/5) is a momentum to include the tourism development program in Gili Genting. Because in the area there are a number of tourist destinations like Sembilan Beach and Kahuripan Beach. "Our hope Santos not forget the existence of existing tourist destinations in the Gili Genting Region and helped develop as a form of concern to the potential of Sumenep Regency," he said.

Since the end of 2016, the Government of Sumenep Regency has gradually arranged the local tourism destinations for the successful launching of the Visit Sumenep 2018 program. During this time, the arrangement of tourism destinations has involved other stakeholders, including third parties, because it is impossible for local governments to only rely on APBD. "We want a synergy between the local government and other parties, including KSS. For that, we believe K3S can program the development of tourism through PPO activities and social responsibility K3S, "he said.

Santos Pty Ltd is a K3S that manages the Madura Offshore Block which is partly operational in Sumenep, Gili Genting District. Not only Santos, for other K3S will also be required to participate in programming activities that are increasingly to the tourist attraction. "We will also request for oil and gas wells companies operating in Sumenep to have supportive programs for the development of tourist destinations."

In Sumenep there are many tourist destinations that become tourist destinations, both domestic and foreign. However, in the year of the visit, the local government wanted three superior tourist destinations namely Giliyang Health Island, Dungkek District which has the second best oxygen in the world, Gili Labak Beach in Talango Subdistrict, and Sembilan Beach in Gili Genting Subdistrict.

IN INDONESIAN

K3S Diminta Ikut Kembangkan Destinasi Wisata Sumenep

Pemerintah Kabupaten Sumenep meminta Kontraktor Kontrak Kerjasama (K3S) atau perusahaan pengelola sumur minyak dan gas bumi yang beroperasi kabupaten ujung timur Pulau Madura ini ikut serta mengembangkan destinasi wisata yang ada dengan program yang berbentuk pengembangan terhadap objek wisata tersebut.

Wakil Bupati Sumenep Achmad Fauzi mengatakan, K3S memang memiliki prosedur tersendiri dalam penentuan program dalam bentuk apa pun. Namun, selaku pemerintah daerah tetap meminta agar KSS ikut andil dalam menyukseskan program pemerintah daerah, salah satunya visit Sumenep 2018. “Kegiatan K3S memang telah tersusun dan ditentukan melalui prosedur yang dimilikinya. Namun, kami meminta dalam penyusunan program itu ada program yang sifatnya mendorong terhadap pengembangan wisata di Sumenep,” kata Wakil Bupati Sumenep Achmad Fauzi, Selasa (9/5).

Menurut Fauzi, rapat Koordinasi Penyusunan Program Penunjang Operasi (PPO) Santos Pty Ltd tentang rencana PPO Santos di Kecamatan Giligenting di aula salah satu hotel di Kecamatan Kota (9/5) merupakan momentum untuk memasukkan program pengembangan destinasi Wisata di wilayah Gili Genting. Karena di wilayah tersebut terdapat sejumlah destinasi wisata seperti Pantai Sembilan dan Pantai Kahuripan. “Harapan kami Santos tidak melupakan keberadaan destinasi wisata yang ada di Wilayah Gili Genting tersebut dan ikut membantu pengembangannya sebagai bentuk kepedulian terhadap potensi yang dimiliki Kabupaten Sumenep,” katanya.

Sejak akhir 2016, Pemerintah Kabupaten Sumenep secara bertahap telah menata destinasi wisata setempat untuk menyukseskan pencanangan program Visit Sumenep 2018. Selama ini, penataan destinasi wisata itu telah melibatkan para pemangku kepentingan lainnya, termasuk pihak ketiga, sebab tidak mungkin pemerintah daerah hanya menggantungkan diri pada kekuatan APBD. “Kami menginginkan ada sinergi antara pemerintah daerah dengan pihak lain, termasuk KSS. Untuk itu, kami yakin K3S bisa memprogramkan pengembangan wisata melalui kegiatan PPO maupun tanggung jawab sosial K3S," tegasnya.

Santos Pty Ltd merupakan K3S yang mengelola Blok Madura Offshore yang sebagian wilayah operasionalnya berada di Sumenep, yakni Kecamatan Gili Genting. Tidak hanya Santos, bagi K3S yang lain juga akan diminta untuk ikut memprogramkan kegiatan yang sifatnya peningkatan terhadap objek wisata. “Kami juga akan meminta bagi perusahaan pengelola sumur minyak dan gas bumi yang beroperasi di Sumenep agar ada program yang bersifat mendukung terhadap pengembangan destinasi wisata,”.

Di Sumenep terdapat banyak destinasi wisata yang menjadi tujuan wisatawan, baik domestik maupun mancanegara. Namun, pada tahun kunjungan tersebut, pemerintah daerah menginginkan ada tiga destinasi wisata yang menjadi unggulan yakni Pulau Kesehatan Giliyang, di Kecamatan Dungkek yang memiliki oksigen terbaik kedua di dunia, Pantai Gili Labak di Kecamatan Talango, dan Pantai Sembilan di Kecamatan Gili Genting.

Bhirawa, Page-1, Wednesday, May, 10, 2017

Govt Holds Onto Gross-Split Scheme Despite Complaints

The government has remained headstrong in endorsing its latest production-sharing contract (PSC) scheme for upstream oil and gas projects despite numerous complaints that it was economically unfeasible.

Through the introduction of the gross-split sliding scale, the government hopes that the scheme will eventually phase out the current plan, dubbed cost recovery which compels the government to reimburse contractors’ exploration and exploitation activities in oil and gas fields.

Unlike cost recovery, the new scheme relies on several variables to decide the profit split between the government and contractors. The Energy and Mineral Resources Ministry has repeatedly argued that the new scheme will be fairer and more transparent as oil and gas companies can calculate the potential profit split before pursuing a gross-split contract.

Even so, investors remain doubtful that anyone would bite since most calculations show that the new scheme is economically unfeasible. Some have even argued that the scheme would backfire if the government was ever faced with an oil and gas field that was only economically feasible if contractors received 99 percent of the profit split. 

Energy and Mineral Resources Deputy Minister Arcandra Tahar fired back that it was impossible for such a profit split to ever result for the gross-split scheme based on the calculations the government made of 10 existing oil and gas fields. 

“How would [contractors] ever get a 90 percent split? The regulation is clear. We have already simulated split calibrations based on the PSCs of 10 existing conventional fields, which represent the characteristics of fields across Indonesia,” he said on Monday on the sidelines of a workshop on the implementation of the new scheme.

The 10 fields that were used as a basis for the gross-split scheme were BP’s Tangguh, ExxonMobil Cepu Limited’s (EMCL) Banyu Urip, PT Pertamina EP Cepu’s (PEPC) Jambaran-Tiung Biru, Eni’s Jangkrik, Chevron’s IDD Bangka, Joint Operating Body (JOB) Pertamina-Medco E&P Tomori’s Senoro, PT Medco Energy Internasional’s Block A, Petronas’ Kepodang, and PT Pertamina EP’s (PEP) Donggi and Matindok.

Moreover, Arcandra said that many investors complaining about the scheme had forgotten about other factors that made the gross-split scheme more appealing, including the potential for a shorter duration between the pre-front-end engineering design (pre-FEED) and first production.

Official data from the ministry show that using the gross-split scheme would cut the process down to two to three years compared to the current scheme because contractors would no longer have to go through the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) for budgeting and procurement purposes.

For example, the data shows that while it took 152 months between pre-FEED and production for EMCL’s Banyu Urip field under the cost recovery scheme, the government estimated that it would have only taken the contractors 120 months.

“The minister can also add an additional 5 percent to the split [if contractors feel it is economically unfeasible], which can add up to US$500 million in some cases. If that still isn’t enough then I don’t know what kind of field you’re looking at,” Arcandra said.

The government needs to demonstrate that the new gross-split scheme has the potential to be beneficial for all parties if it hopes to increase the dwindling investments in the upstream oil and gas sector. SKKMigas data shows that investment only reached US$12.01 billion last year, dropping from $15.9 billion in 2015.

This year the government has set a year-end investment of $13.8 billion, with $1.9 billion already achieved at the end of this year’s first quarter. Investors still seem to find the new PSC scheme hard to swallow. Ronald Gunawan, chief operating officer of oil and gas firm PT Medco Energy Internasional, claims that initial calculations by the firm show that the gross-split scheme would only benefit those with small investment profiles.

“Furthermore, the gross-split is much less attractive than the current PSC because of the time value of money,” he said while acknowledging that the firm had not taken into account the potential shorter duration before production.

Meanwhile, Sammy Hamzah of Ephindo ‘Energy Pte Ltd. said that there seemed to be no wiggle room in the sector under the current administration as the government seemed less willing to compromise despite an urgent need to boost investment in the upstream sector.

“The authorities now say that if you don’t do it this way don’t do it, look somewhere else. That’s the government's attitude.

Jakarta Post Page-13, Tuesday, May, 9, 2017

Add Split Block ONWJ Still Calculated

The government and PT Pertamina are still counting the additional split for the Offshore North West Java (ONWJ) Block. So far both have agreed on the details of the count.

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said he has not received additional proposals split proposed by Pertamina. In the last meeting last week, the government and the company only agreed on details of split and other additional counting procedures.

"Split, I have not received submitted how many. But the details (calculation procedure) have been, "he said after giving explanation about Contract Cooperation Scheme Gross Split to oil and gas company in Jakarta, Monday (8/5).

According to him, after this agreement, Pertamina will calculate the economics of the ONWJ Block. If the split is obtained less, then Pertamina hnaya proposed additional split to the government. The addition of split will follow the Regulation of the Minister of Energy and Mineral Resources No. 8 Year 2017.

The government will only see, a maximum (split) increase of 5%. So just follow the Minister's Rule. Previously, Pertamina said the additional split needed one of them due to the un-recovered cost of US $ 453 million. According to Arcandra, this un-recovered cost is not included in additional split calculations. The reason, following Ministerial Regulation number 26/2017, un-recovered costs to be borne by a new contractor in this case is Pertamina.

Pertamina that bear, Pertamina also receives the production. Previously, Pertamina also became a contractor in ONWJ Block. The same is also expressed by President Director of PT Pertamina Hulu Energi Gunung Sardjono Hadi. According to him, there has been no additional split decision for ONWJ Block. He also did not want to specify how the additional split will be submitted to the government.

As is known, the government and PHE have signed the ONWJ Block ONWJ production sharing contract with a gross split scheme or for gross misstatement earlier this year. Under this scheme, the profit share for the country versus is set at 37.5: 62.5 for gas and 42.5: 57.5 for oil.

IN INDONESIAN

Tambah Split Blok ONWJ Masih Dihitung

Pemerintah dan PT Pertamina masih menghitung tambahan bagi hasil (split) bagi di Blok Offshore North West Java (ONWJ). Sejauh ini keduanya baru menyepakati rincian penghitungannya.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, dirinya belum menerima usulan tambahan split yang diajukan Pertamina. Dalam rapat terakhir pada pekan lalu, pemerintah dan perseroan hanya menyepakati rincian prosedur penghitungan tambahan split dan lainnya.

“Split, saya belum terima yang diajukan berapa. Tetapi detailnya (prosedur penghitungan) sudah,” kata dia usai memberikan penjelasan soal Kontrak Kerja Sama Skema Gross Split kepada perusahaan migas di Jakarta, Senin (8/5).

Menurutnya, setelah ada kesepakatan ini, Pertamina akan menghitung keekonomian dari Blok ONWJ. Jika ternyata split yang diperoleh kurang, maka Pertamina hnaya mengajukan usulan tambahan split kepada pemerintah. Pemberian tambahan split akan mengikuti Peraturan Menteri ESDM N0 8 Tahun 2017.

Pemerintah hanya akan melihat, tambahan (split) maksimum 5%. Jadi ikuti saja Peraturan Menterinya. Sebelumnya, Pertamina menyatakan tambahan split dibutuhkan salah satunya karena adanya biaya investasi yang tidak kembali (un-recovered cost) sebesar US$ 453 juta. Menurut Arcandra, un-recovered cost ini tidak masuk dalam penghitungan tambahan split. Pasalnya, mengikuti Peraturan Menteri nomor 26/2017, un-recovered cost menjadi tanggungan kontraktor baru yang dalam hal ini adalah Pertamina.

Pertamina yang menanggung, Pertamina juga yang menerima hasil produksi. Sebelumnya, Pertamina juga menjadi kontraktor di Blok ONWJ. Hal yang sama juga diungkapkan Presiden Direktur PT Pertamina Hulu Energi Gunung Sardjono Hadi. Menurutnya, belum ada keputusan tambahan split untuk Blok ONWJ. Dirinya juga tidak mau merinci berapa tambahan split yang bakal diajukan kepada pemerintah.

Seperti diketahui, pemerintah dan PHE telah menandatangani tangani kontrak kerja sama (production sharing contract PSC) Blok ONWJ dengan skema gross split atau bagi hasi kotor pada awal tahun ini. Dengan skema ini, maka bagi hasil untuk negara dibanding ditetapkan sebesar 37,5:62,5 untuk gas dan 42,5:57,5 untuk minyak.

Investor Daily, Page-9, Tuesday, May, 9, 2017

Using Gross Split, Large Oil and Gas Projects Less Interesting

The implementation of production sharing contract (PSC) of gross split scheme is considered unattractive for oil and gas projects with high investment requirement. Efficiency is not expected to significantly boost the project economy.

Director of Operations of PT Medco Energi Internasional Ronald Gunawan said the implementation of gross split contract on oil and gas field with small investment makes the project more attractive than using cost recovery contract. However, it has data showing that the implementation of gross split contracts on oil and gas blocks with high investment needs, making the project not reach the economy.

We see, for PSC-PSC which is oil and investment profile is not too high, it (gross split) okay. But for PSC oil or gas with high investment profile, it is quite far (gross split) with PSC, "he said during a workshop session on Gross Split Contract and Return of Investment of Upstream Oil and Gas Activities in Jakarta on Monday (8/5) .

Nevertheless, he acknowledges that in his simulation has not included the assumption of the cutting time of oil and gas project work. The Gross Split Scheme eliminates the length of the procurement period pursuant to the Working Guidance Manual (PTK) No.007 in the Special Unit for Upstream Oil and Gas Business Unit (SKK Migas).

However, even with the efficiency, the economy of this large oil and gas project is also not very attractive. We make the plot and it's big enough, it can not be opened here. So even if there is efficiency, it is not realistic anymore (the economics of the project), "said Ronald.

For that, he assessed the need for further gross split with the government about the implementation of this contract of oil and gas gross split. Primarily, both the government and oil and gas contractors, need to equate any assumptions used in looking at the impact of gross split contracts on the oil and gas block.

There may be certain things that both parties have that miss. Moreover, the company has a long-term plan, in addition to the provisions in the contract, which should be included as an assumption in the simulation. Executive Director of Indonesian Petroleum Association (IPA) Marjolijn Majong also expressed the same thing. Although not directly involved, it receives information that many oil and gas projects are uneconomical when simulated using a gross split scheme contract. Therefore, it encourages contractors to conduct direct dialogue, in detail with the government about the results of the calculation.

"If indeed there are many who do not enter the economy, is there any room to change the Ministerial Regulation (Gross Split) to be more attractive?"

Another thing he worries about is the implementation of a new tax regime by applying the gross split contract. This development is called making oil and gas companies tend to wait until the arrangement is clear before finally deciding to use gross split.

Calculate Efficiency

Concerning these responses, Vice Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar asserted that the efficiency of time side of oil and gas project work as a result of gross split implementation should be included in the simulation by oil and gas company. Because this time savings have a big impact on the company's cash flow.

Time efficiency is referred to as the procurement of goods carried out by oil and gas companies themselves. There is by doing independent procurement efforts how much impact saving cost him. If not included, gross split is supposing food without salt, tasteless. Precisely the power of gross split it from there.

It has made the calculation of time efficiency of 10 oil and gas fields in Indonesia. From the Ministry of Energy and Mineral Resources data, the time frame of the development of working area when using gross split is faster than if using cost recovery contract.

In the simulation at Tangguh Square, Papua (BP), the duration of previewed pre-engineering design (Pre-FEED) of 105 months was cut to 83 months, at Banyu Urip Field (ExxonMobil Cepu Limited) from 152 months to 120 months, (Tiara Biru), 86 months to 73 months, 84 months of cricket field (ENI) to 71 months, and Bangka Field (Chevron) from 106 months to 83 months.

Then, the time savings were also seen in the simulation at Donggi Square (Pertamina EP) from 104 months to 91 months, Matindok Field (Pertamina EP) from 88 months to 73 months, Senoro Field (JOB Medco Tomori) 130 months and to 116 months, Block A (Medco) 136 months to 118 months, and Kepodang Field (Petronas) from 134 months to 113 months.

If it is lacking (split it), there is an additional 5% split bumper through the Ministry of Energy and Mineral Resources, "said Arcandra With an investment of US $ 10 billion, split can be obtained equivalent to US $ 500 million.

Nevertheless, he admits that additional acceleration is still needed from the permit handling side. Unfortunately, there are still ministries or other institutions related to upstream oil and gas operations that must be followed by regulations such as the Ministry of Environment and Forestry. One by one, we are aware of many of the old licenses, for that to be sought the way how permits are accelerated. Then, educate all the other ministries, We hope the same understanding.

IN INDONESIAN

Menggunakan Gross Split, Proyek Migas Besar Kurang Menarik

Penerapan kontrak kerja sama (production sharing contract/PSC) skema bagi hasil kotor (gross split) dinilai kurang menarik untuk proyek minyak dan gas dengan kebutuhan investasi tinggi. Efisiensi diperkirakan tidak akan signifikan mendongkrak keekonomian proyek.

Direktur Operasi PT Medco Energi Internasional Ronald Gunawan mengatakan, penerapan kontrak gross split pada lapangan migas dengan investasi kecil, memang membuat proyek menjadi lebih menarik daripada menggunakan kontrak cost recovery. Namun, pihaknya memiliki data-data yang menunjukkan bahwa penerapan kontrak gross split pada blok migas dengan kebutuhan investasi tinggi, membuat proyek tidak mencapai keekonomian.

Kami lihat, untuk PSC-PSC yang memang oil dan investment profile tidak terlalu tinggi, itu (gross split) oke. Tetapi untuk PSC oil atau gas yang investment profile-nya tinggi, itu cukup jauh (selisih keekonomian) gross split dengan PSC,” kata dia dalam sesi workshop tentang Kontrak Gross Split dan Pengembalian Investasi Kegiatan Hulu Migas di Jakarta, Senin (8/5).

Meski demikian, dia mengakui bahwa dalam simulasi yang dilakukannya belum memasukkan asumsi adanya pemangkasan waktu pengerjaan proyek migas. Skema Gross Split menghilangkan panjangnya jangka waktu pengadaan barang (procurement) sesuai Pedoman Tata Kerja (PTK) No.007 di Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

Namun, bahkan dengan adanya efisiensi, keekonomian proyek migas besar ini juga tidak terlalu menarik. Kami bikin plot-nya dan itu cukup besar, tidak bisa dibuka di sini. Jadi kalaupun ada efisiensi, tidak realistik lagi (keekonomian proyeknya),” kata Ronald. 

Untuk itu, dirinya menilai perlu adanya gross split lebih lanjut dengan pemerintah soal penerapan kontrak migas gross split ini. Utamanya, baik pemerintah maupun kontraktor migas, perlu menyamakan asumsi-asumsi apa saja yang dipakai dalam melihat dampak kontrak gross split terhadap ke ekonomian blok migas.

Mungkin ada certain thing yang both parties ada yang miss. Apalagi perusahaan memiliki rencana jangka panjang, selain ketentuan dalam kontrak, yang harus dimasukkan sebagai asumsi dalam simulasi. Direktur Eksekutif Indonesian Petroleum Association (IPA) Marjolijn Majong juga mengemukakan hal yang sama. Meski tidak terlibat langsung, pihaknya menerima informasi bahwa banyak proyek migas tidak ekonomis ketika disimulasi menggunakan kontrak skema gross split. Karenanya, pihaknya mendorong kontraktor untuk melakukan dialog langsung, secara rinci dengan pemerintah soal hasil hitungan tersebut.

“Kalau memang betul banyak yang tidak masuk keekonomiannya, apakah ada ruang untuk mengubah Peraturan Menteri (Gross Split) menjadi lebih menarik?" 

Hal lain yang dikhawatirkannya adalah adanya rencana penerapan rezim pajak baru dengan berlakukan kontrak gross split. Perkembangan ini disebutnya membuat perusahaan migas cenderung menunggu sampai pengaturannya jelas sebelum akhirnya memutuskan untuk menggunakan gross split.

Hitung Efisiensi

Atas berbagai tanggapan itu, Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar menegaskan, efisiensi dari sisi waktu pengerjaan proyek migas sebagai hasil penerapan gross split seharusnya dimasukkan dalam simulasi yang dilakukan perusahaan migas. Pasalnya, penghematan waktu ini berdampak cukup besar terhadap arus kas perusahaan.

Efisiensi waktu disebutnya sebagai hasil pengadaan barang dilakukan sendiri oleh perusahaan migas. Ada dengan melakukan procurement mandiri ada usaha-usaha berapa impact saving cost-nya. Kalau tidak dimasukkan, gross split itu ibaratnya makanan tanpa garam, hambar. Justru kekuatan gross split itu dari situ.

Pihaknya telah membuat perhitungan efisiensi waktu dari 10 lapangan migas di Indonesia. Dari data Kementerian ESDM, tata waktu pengembangan wilayah kerja saat menggunakan gross split justru lebih cepat dibandingkan jika memakai kontrak cost recovery.

Pada simulasi di Lapangan Tangguh, Papua (BP), durasi kajian desain rinci awal (pre front engineering design/ Pre-FEED) 105 bulan terpangkas menjadi 83 bulan, di Lapangan Banyu Urip (ExxonMobil Cepu Limited) dari 152 bulan menjadi 120 bulan, Lapangan jambaran-Tiung Biru (Pertamina EP Cepu) 86 bulan menjadi 73 bulan, Lapangan Jangkrik (ENI) 84 bulan menjadi 71 bulan, dan Lapangan Bangka (Chevron) dari 106 bulan menjadi 83 bulan.

Kemudian, penghematan waktu juga terlihat pada simulasi di Lapangan Donggi (Pertamina EP) dari 104 bulan menjadi 91 bulan, Lapangan Matindok (Pertamina EP) dari 88 bulan menjadi 73 bulan, Lapangan Senoro (JOB Medco Tomori) 130 bulan dan menjadi 116 bulan, Blok A (Medco) 136 bulan menjadi 118 bulan, serta Lapangan Kepodang (Petronas) dari 134 bulan menjadi 113 bulan.

Kalau masih kurang (split-nya), ada bemper tambahan split 5% melalui dikresi Menteri ESDM," ujar Arcandra. Dengan investasi US$ 10 miliar, bisa didapatkan split setara US$ 500 juta.

Meski demikian, diakuinya masih diperlukan percepatan tambahan dari sisi pengurusan izin, Sayangnya, masih terdapat kementerian atau institusi Iain yang berkaitan dengan kegiatan operasi hulu migas yang harus diikuti aturannya seperti Kementerian Lingkungan Hidup dan Kehutanan. Satu per satu, kami sadari banyak izin yang lama, untuk itu harus dicari caranya bagaimana izin dipercepat. Kemudian, edukasi semua kementerian lain, Kami harap sama pengertiannya.

Investor Daily, Page-9, Tuesday, May, 9, 2017

Gross Split Scheme Accelerates Oil and Gas Project

The government ensures the profit sharing concept based on gross oil and gas production or gross split can accelerate the development time of oil and gas blocks from planning to production. The scheme is considered more simple than the concept of cost recovery or cost recovery.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said, when using cost recovery, contractor cooperation contract (KKKS) takes 15-16 years since the search for oil until the production stage. However, using the gross split, it can save 2-3 years time calculated from the stage of basic design design (pre front end engineering design / FEED) to on stream.

They (KKKS) are free to arrange FEED to EPC (engineering, procurement, and construction) because they no longer have to ask for approval from SKK Migas. This time savings should be sought by KKKS as Government incentives, "Archandra said

According to him, the concept of gross split is in line with the simplification of administrative and bureaucratic affairs, which has an impact on the acceleration of oil and gas business decisions. Even so, KKKS should also be able to take advantage of these opportunities in terms of time efficiency in the process before first oil to on stream. So, the incentive to just split, will not be attractive.

The existence of gross split will have early production plus generated derivative efficiency. Should be included in the calculation. Arcandra added, there are 10 large oil and gas blocks that have been calculated to pre-FEED time on stream can be more efficient. Among them Tangguh Train 3 Tangguh when using cost recovery takes 105 months, while with gross split only 83 months.

The Cepu Banyu Urip Block is also handled for 152 months to 120 months, the Jambaran Tiung Biru Block from 86 months to 73 months, the Jangkrik Block from 84 months to 71 months, IDD Bangka Block 106 months to 83 months, Donggi from 104 months to 91 Month, Matindok Block 88 months to 73 months, Senoro Block 130 months to 116 months, Block A from 136 months to 118 months, and Kepodang Block from 134 months to 113 months.

Energy expert from Trisakti University, Pri Agung Rakhmanto, said the gross split concept can not be applied to all oil and gas contracts in Indonesia. This concept should be offered as a form of contract option only.

IN INDONESIAN

Skema Gross Split Percepat Proyek Migas

Pemerintah memastikan konsep bagi hasil kotor berdasar produksi bruto minyak dan gas bumi atau gross split dapat mempercepat waktu pengembangan blok migas dari perencanaan hingga produksi. Skema tersebut dinilai Iebih sederhana dibanding konsep pengembalian biaya operasi atau cost recovery.

Wakil Menteri Energi dan Sumber Daya Mineral Arcandra Tahar mengatakan, saat menggunakan cost recovery, kontraktor kontrak kerja sama (KKKS) butuh waktu 15-16 tahun sejak usaha pencarian minyak hingga tahap produksi. Namun, dengan menggunakan gross split, bisa menghemat waktu 2-3 tahun dihitung dari tahapan desain perencanaan dasar (pre front end engineering design /FEED) hingga on stream.

Mereka (KKKS) bebas menyusun FEED hingga EPC (engineering, procurement, and construction) karena tidak perlu lagi minta persetujuan SKK Migas. Seharusnya penghematan waktu ini dapat dicari KKKS sebagai insentif Pemerintah," kata Archandra

Menurut dia, konsep gross split sejalan dengan penyederhanaan urusan administrasi dan birokrasi sehingga berdampak pada percepatan pengambilan keputusan bisnis migas. Meski begitu, KKKS juga harus dapat memanfaatkan peluang tersebut dari sisi efisiensi waktu dalam proses sebelum first oil hingga on stream.  Jadi, insentif kalau hanya bicara split, tidak akan atraktif.

Adanya gross split akan ada early production ditambah efisiensi turunan yang dihasilkan. Seharusnya masuk dalam perhitungan tersebut. Arcandra menambahkan, terdapat 10 blok migas besar yang telah dihitung waktu pre-FEED hingga on stream bisa lebih hemat. Di antaranya Blok Tangguh Train 3 Tangguh ketika menggunakan cost recovery membutuhkan waktu 105 bulan, sedangkan dengan gross split hanya 83 bulan. 

Blok Cepu Banyu Urip juga dari pengurusan selama 152 bulan menjadi 120 bulan, Blok Jambaran Tiung Biru dari semula 86 bulan menjadi 73 bulan, Blok Jangkrik dari 84 bulan menjadi 71 bulan, Blok IDD Bangka 106 bulan menjadi 83 bulan, Donggi dari 104 bulan menjadi 91 bulan, Blok Matindok 88 bulan menjadi 73 bulan, Blok Senoro 130 bulan menjadi 116 bulan, Blok A dari pengurusan 136 bulan menjadi 118 bulan, dan Blok Kepodang dari 134 bulan menjadi 113 bulan.

Pakar energi dari Universitas Trisakti Pri Agung Rakhmanto menilai konsep gross split tidak bisa diberlakukan terhadap seluruh kontrak migas di Indonesia. Konsep ini sebaiknya ditawarkan sebagai salah satu bentuk pilihan kontrak saja.

Koran Sindo, Page-9, Tuesday, May, 9, 2017

Pertamina Refinery Production Minimal Type Pertamax

Iran's oil imports can only enter 10% in Cilacap refinery, due to high sulfur content

PT Pertamina stated that the current Refinery Development Masterplan Program (RDMP) project will be able to process oil with high sulfur content. The goal is to produce minimal Pertamax producing oil.

Toharso, Director of Processing of PT Pertamina, said that there are three RDMP project objectives. First, the project

Will reduce oil imports to 700,000 barrels per day (bpd). Currently the production capacity of six refineries is around 1.04 million bpd, but since each refinery is in maintenance and must be shutdown, it is reduced by about 900,000 bpd. The fuel needs of 1.6 million bpd.

Secondly, RDMP will be able to meet European Emission Standart environmental standards alias Euro5. Thirdly, the RDMP result will be able to process high sulfur oil into low sulfur oil. Although Pertamina will produce Pertamax minimum, Pertamina will still produce premium until the community no longer needs it. Toharso said it could not remove the premium, because there are still buy. Especially when there is a fuel policy of one price of premium and diesel. If I wanted only the production of Pertamax Turbo, Toharso said.

He stated that Pertamina is only the operator and the government as the shareholder needs the fuel assignment, namely premium and diesel for the outermost, leading and left behind. Different if the revision of the Oil and Gas Law requires having to do production with low sulfur.

Moreover, Pertamina is very concerned about environmental issues, so that Pertamina's refineries in the future is indeed towards Euro 5 or more than required, that is Euro 4. If you want to know, we also sell BBM to brand holder agent, it contains five liter Pertamax, what it means ? They just recommend Pertamax, not premium, but when it fell to buyers do not know replaced type of fuel, "he said.

Processing Sweet

Meanwhile, during this six refineries Pertamina is only able to process crude oil with a type of sweet crude oil or oil with low sulfur. As a result, if processing oil with high sulfur will damage the refinery machine.

Toharso said that Pertamina refinery machine is not damaged, so it does blending. "After that we though, because if put directly, yes wassalamualaikum refinery," he said.

Since the Pertamina refinery stands sweet supply of sweet oil originated from Duri Field which once produced 700,000 bpd, but currently only between 200,000 bpd to 300,000 bpd. Now it's hard to find sweet oil for the 6 refineries.

Currently the supply from the Banyu Urip field, Cepu Block is also blending to be processed in the high grade sulphate Banyu Urip oil field refinery. No exception oil imported as much as 1 million barrels from Iran, has been tested and the results can only enter about 10% of the production of 348,000 bpd. Because oil sulfur from Iran is too high. While in other refineries, Iran's oil type can not be processed. So far the majority of oil in Cilacap comes from Saudi Arabia.

IN INDONESIAN

Produksi Kilang Pertamina Minimal Jenis Pertamax  

lmpor minyak Iran hanya bisa masuk 10% di Kilang Cilacap, karena kadar sulfur tinggi

PT Pertamina menyatakan, proyek Refinery Development Masterplan Program (RDMP) yang tengah dijalankan akan mampu mengolah minyak dengan kadar sulfur tinggi. Tujuannya agar menghasilkan minyak minimal memproduksi Pertamax.

Toharso, Direktur Pengolahan PT Pertamina mengatakan, tujuan proyek RDMP ada tiga. Pertama, proyek itu akan mengurangi impor minyak hingga 700.000 barel per hari (bph). Saat ini kapasitas produksi enam kilang sekitar 1.040.000 bph, tetapi karena setiap kilang ada perawatan dan harus shutdown, maka berkurang sekitar 900.000 bph. Adapun kebutuhan BBM 1,6 juta bph.

Kedua, RDMP akan mampu memenuhi standar lingkungan European Emission Standart alias Euro5. Ketiga, kiIang hasil RDMP itu akan mampu mengolah minyak dengan sulfur tinggi menjadi minyak bersulfur rendah. Meskipun minimal memproduksi Pertamax, Pertamina masih akan tetap memproduksi premium hingga masyarakat tidak membutuhkan lagi. 

      Toharso mengatakan, pihaknya tidak bisa menghapus premium, karena masih ada yang membeli. Terlebih saat ini ada kebijakan BBM satu harga jenis premium dan solar. Kalau saya maunya hanya produksi Pertamax Turbo, kata Toharso.

Dia menyatakan, Pertamina hanya operator dan pemerintah sebagai pemegang saham membutuhkan BBM penugasan, yakni premium dan solar untuk masyarakat terluar, terdepan dan tertinggal. Beda kalau revisi Undang-Undang Migas meminta harus melakukan produksi dengan sulfur rendah.

Apalagi memang Pertamina sangat concern dengan isu lingkungan, sehingga kilang-kilang Pertamina ke depan memang menuju Euro 5 atau lebih dari yang disyaratkan, yakni Euro 4. Kalau ingin tahu, kami juga jual BBM ke agen pemegang merek, isinya lima liter Pertamax, artinya apa? mereka saja sudah merekomendasikan Pertamax, bukan premium, tetapi ketika sudah jatuh ke pembeli tidak tahu diganti jenis BBM-nya," kata dia.

Mengolah Sweet

Sementara itu, selama ini enam kilang Pertamina memang hanya bisa mengolah minyak mentah dengan jenis sweet crude oil atau minyak dengan sulfur rendah. Alhasil, jika mengolah minyak dengan sulfur tinggi akan merusak mesin kilang tersebut.

Toharso bercerita, agar mesin kilang Pertamina tidak rusak, maka pihaknya melakukan blending. "Setelah itu kami olah, karena kalau dimasukan langsung, ya wassalamualaikum kilangnya," kata dia.

Sejak kilang Pertamina berdiri pasokan minyak sweet berasal dari Lapangan Duri yang dahulu bisa produksi 700.000 bph, tetapi saat ini hanya antara 200.000 bph sampai 300.000 bph. Sekarang sulit mencari minyak sweet untuk kebutuhan 6 kilang itu.

Saat ini pasokan dari lapangan Banyu Urip, Blok Cepu juga juga di blending agar bisa diolah di kilang jenis minyak Lapangan Banyu Urip bersulfur tinggi. Tidak terkecuali minyak yang di impor sebanyak 1 juta barel dari Iran, sudah diuji coba dan hasilnya hanya bisa masuk sekitar 10% saja dari produksi 348.000 bph. Karena Sulfur minyak dari Iran terlalu tinggi. Sementara di kilang lain, jenis minyak Iran tidak bisa diolah. Sejauh ini mayoritas minyak di Cilacap berasal dari Arab Saudi.

Kontan, Page-14, Tuesday, May, 9, 2017

KKKS indecisive Gross Split Profitable

As long as these concerns arise, the application of the results of the gross split pattern causes upstream oil and gas investment to be less attractive. Of course the government denies. No one has told me it is not economical, "said Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar.

According to him, the government set a gross split scheme after calibration in 10 major fields. Among them are Rokan, ONWJ, Tangguh, Cepu, Deepwater West Seno and Natuna.

By using gross split, the duration of the exploration stage until the first oil cuts the time up to 20 months. BP Indonesia for example takes 105 months to reach first oil. Meanwhile, Cepu Block if using gross split can be reduced for 30 months. On average it can save 2-3 years, says Arcandra.

But in reality, the Cooperation Contract Contractor (KKKS) still doubts the application of gross split can make the oil and gas company profitable. Even oil and gas investment blocks are not suitable for gross splits.

The gross split policy debate is still ongoing. Whereas the Regulation of Minister of Energy and Mineral Resources Number 8 the Year 2017 About Gross Split Distribution Contract has been published in January.

In the meantime, consultants and research institutes in the energy, metal and mining fields of Wood Mackenzie published an analysis in March 2017, the gross split sharing scheme would negatively impact the economy of upstream oil and gas projects, compared to cost recovery schemes.

Operations Director of PT Medco Energi International, Tbk Ronald Gunawan admitted, it has reviewed the economic calculations in four production sharing contracts consisting of two oil blocks and two gas blocks. From the assessment, according to Ronald, the oil block contract with the investment rate is not too high is still quite economical to use gross split.

However, oil and gas block contracts with high investment profile, in terms of the economic level of the field between gross Split and cost recovery contracts. If I look at that assumption, the gross split is no more attractive than cost recovery results due to time value money, said Ronald, during a gross split discussion at SKK Migas Office, City Plaza, South Jakarta, Monday (8/5).

While Arcandra requested KKKS recalculate by entering the acceleration factor of time that can be obtained if using gross split scheme. That way there will be a cost saving.

IN INDONESIAN

KKKS Ragu Gross Split Menguntungkan

Selama ini muncul kekhawatiran, penerapan bagi hasil pola gross split menyebabkan investasi hulu migas menjadi kurang menarik. Tentu saja pemerintah membantah. Belum ada yang bilang kepada saya tidak ekonomis," kata Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar.

Menurutnya, pemerintah menetapkan skema gross split setelah melakukan kalibrasi di 10 lapangan besar. Di antaranya Rokan, ONWJ, Tangguh, Cepu, Deepwater West Seno dan Natuna.

Dengan memakai gross split, durasi dari tahapan eksplorasi sampai minyak pertama memangkas waktu hingga 20 bulan. BP Indonesia misalnya, membutuhkan waktu 105 bulan untuk mencapai first oil. Sementara itu, Blok Cepu jika menggunakan gross split bisa dikurangi selama 30 bulan. Rata-rata bisa save 2-3 tahun, kata Arcandra. 

Tapi kenyataannya, Kontraktor Kontrak Kerja Sama (KKKS) masih meragukan penerapan gross split bisa membuat perusahaan migas untung. Bahkan blok migas dengan investasi tinggi tidak cocok memakai gross split. 

Perdebatan kebijakan gross split tersebut masih terus berlangsung. Padahal Peraturan menteri ESDM Nomor 8 Tahun 2017 Tentang Kontrak Bagi Hasil Gross Split sudah terbit Januari lalu.

Sebelunmya, konsultan dan lembaga riset di bidang energi, logam dan tambang Wood Mackenzie menerbitkan analisis pada Maret 2017 lalu, skema bagi hasil gross split justru berdampak negatif bagi keekonomian proyek hulu migas, dibandingkan dengan skema cost recovery.

Direktur Operasi PT Medco Energi lnternasional,Tbk Ronald Gunawan mengaku, pihaknya telah mengkaji perhitungan keekonomian di empat kontrak bagi hasil yang terdiri dari dua blok minyak dan dua blok gas. Dari kajian tersebut, menurut Ronald, kontrak blok minyak dengan tingkat investasi tidak terlalu tinggi masih cukup ekonomis menggunakan gross split. 

Tapi, kontrak blok migas dengan profil investasinya tinggi, dari sisi tingkat keekonomian lapangan antara gross Split dengan kontrak bagi hasil cost recovery. Kalau saya melihat dari asumsi itu, gross split tidak lebih menarik dari bagi hasil cost recovery karena time value money, kata Ronald, saat diskusi gross split di Kantor SKK Migas, City Plaza, Jakarta Selatan, Senin (8/5).

Sementara Arcandra meminta KKKS menghitung ulang dengan memasukan faktor percepatan waktu yang bisa didapat jika menggunakan skema gross split. Dengan begitu akan ada biaya yang dihemat.

Kontan, Page-14, Tuesday, May, 9, 2017

Long Process of Discovery Oil Reserves

The government continues to encourage exploration activities and increase oil and gas production in the country. On the other hand, the Special Unit for Upstream Oil and Gas Business (SKK Migas) and oil and gas upstream business actors also mentioned the length of time that must be passed from the search period of oil and gas sources (exploration activities) to oil and gas production is so long.

From WoodMackenzie data, since the 2000s era, with the size of the findings of 10 million barrel to oil equivalent / MMboe reserves, it takes time to find new sources and achieve the first production of about 7 years for oil and gas working areas on land.

Meanwhile, in shallow water areas, the process until production reaches 10 years, while for deep-sea 15 years and ultra deep sea up to 25 years. In general, compared to other countries, the process of exploration to the first production in Indonesia takes 10 years.

From data from SKK Migas, from the first year to the 6th year of activities, the contractor still has not benefited. In fact, the contractor's cash flow is the lowest when it reaches the development stage due to a front end engineering design (FEED), preparation of a plan of development (PoD) and physical construction of a production facility.

Beginning in the 7th year, contractors begin to feel the advantage that is when the first production begins. At the exploration stage, the contractor's cash flow could be negative US$ 100 million. Negative numbers continue to grow around US$ 300 million in the development stage.

Cash flow began to turn positive in year 9, ie after 3 years of production. Deputy Chief of SKK Migas Zikrullah said that in the end, the length of time wasted to make the production field must be replaced by a cost recovery scheme (the cost of oil and gas production is borne by the government.) Therefore the sooner a field is commercialized, the contractor gets results fast.

He admitted, the oil and gas production process in some areas is so long. As in East Java for offshore areas takes over 15 years. Riau takes 15 years, off the coast of East Kalimantan 10 years, while in the mainland Maluku and Kalimantan take about 7 years. The reason, each region has a different administration that makes the process longer.

Arifin, Chairman of Commercial, LNG, & Gas Indonesian Petroleum Association (IPA) said the length of time needed to arrive at commercialization eventually raises the selling price of gas upstream. Because the cost to be incurred more and more.

Other factors that also contribute, the smaller the size of the field is getting smaller. In fact, in terms of drilling costs compared to the size of large and small structures may be relatively the same. The longer the discovery and commercialization, the automatic price increases as each year the project team remains, there is a cost. Because the cost is always there.

In addition, the fiscal terms of the cooperation contract also affect. For example, with the application of a PoD basis, the search for new sources in the same work area becomes increasingly difficult.

MANY FACTORS

Upstream Oil & Gas Analyst Asia Pacific WoodMackenzie Johan Utama said the length of the commercialization process is due to several things. From the contractor side, usually due to capital factor. From the side of the structure, gas field tends to take longer because of the buyer's search process due to price and infrastructure.

Other causes of the volume are too small to develop. On the other hand, the factors that make the exploration process until production is longer is the difficulty of land acquisition, the licensing process, the certainty of gas allocation, the procurement process as well as budgeting due to the bad perception of cost recovery that often ends in the state loss opinion.

IN INDONESIAN

Proses Panjang Penemuan Cadangan

Pemerintah terus mendorong kegiatan eksplorasi dan peningkatan produksi minyak dan gas bumi di Tanah Air. Di sisi lain, Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) dan pelaku usaha hulu migas pun menyinggung terkait lamanya waktu yang harus dilewati dari masa pencarian sumber migas (kegiatan eksplorasi) menuju produksi migas begitu panjang.

Dari data WoodMackenzie, sejak era 2000-an, dengan ukuran temuan cadangan 10 million barreloil equivalent/MMboe, diperlukan waktu yang ditempuh untuk mencari sumber baru dan mencapai produksi pertama sekitar 7 tahun untuk wilayah kerja migas di darat.

Sementara itu, di daerah perairan dangkal, proses hingga produksi mencapai 10 tahun, sedangkan untuk laut dalam 15 tahun dan ultra laut dalam hingga 25 tahun. Secara umum, dibandingkan dengan negara lain, proses eksplorasi hingga produksi pertama di Indonesia membutuhkan waktu 10 tahun.

Dari data SKK Migas, dari tahun pertama hingga tahun ke-6 kegiatan, kontraktor masih belum mendapatkan keuntungan. Bahkan, arus kas kontraktor paling rendah ketika menyentuh tahap pengembangan karena melakukan kajian pendefinisian proyek (front end engineering design/FEED), penyusunan rencana pengembangan (plan of development/PoD) dan konstruksi fisik fasilitas produksi. 

Mulai tahun ke-7, kontraktor mulai merasakan keuntungan yaitu pada saat produksi pertama dimulai. Pada tahap eksplorasi, arus kas kontraktor bisa negatif US$100 juta. Angka negatif terus bertambah di sekitar US$300 juta pada tahap pengembangan. 

Arus kas mulai berubah menjadi positif pada tahun ke-9, yaitu setelah 3 tahun produksi. Wakil Kepala SKK Migas Zikrullah mengatakan, pada akhirnya, memang lamanya waktu yang terbuang untuk membuat lapangan berproduksi harus diganti melalui skema bagi hasil cost recovery (biaya produksi migas ditanggung pemerintah. Oleh karena itu semakin cepat suatu lapangan dikomersialisasikan, kontraktor cepat mendapatkan hasil.

Dia mengakui, proses produksi migas di beberapa daerah begitu panjang. Seperti di Jawa Timur untuk wilayah lepas pantai membutuhkan waktu di atas 15 tahun. Riau membutuhkan 15 tahun, di lepas pantai Kalimantan Timur 10 tahun, sedangkan di daratan Maluku dan Kalimantan butuh sekitar 7 tahun. Alasannya, masing-masing daerah memiliki administrasi yang berbeda sehingga membuat proses semakin panjang. 

Chairman Commercial, LNG, & Gas Indonesian Petroleum Association (IPA) Arifin mengatakan, panjangnya waktu yang dibutuhkan untuk sampai tahap komersialisasi akhirnya menaikan harga jual gas di hulu. Pasalnya, biaya yang harus dikeluarkan semakin banyak.

Faktor lainnya yang juga berkontribusi, semakin kecilnya ukuran lapangan yang semakin kecil. Padahal, dari sisi biaya pengeboran dibandingkan antara ukuran struktur besar dan kecil mungkin relatif sama. Semakin lama discovery dan komersialisasi, otomatis harga naik karena tiap tahun tim proyek itu tetap ada, tetap ada biaya. Karena biaya itu selalu ada. 

Selain itu, faktor ketentuan fiskal dalam kontrak kerja sama juga  memengaruhi. Sebagai contoh, dengan penerapan PoD basis, pencarian sumber baru di wilayah kerja yang sama menjadi semakin sulit.

BANYAK FAKTOR 

Analis Hulu Migas Asia Pasifik WoodMackenzie Johan Utama mengatakan, lamanya proses komersialisasi disebabkan beberapa hal. Dari sisi kontraktor, biasanya karena faktor permodalan. Dari sisi struktur, lapangan gas cenderung membutuhkan waktu lebih panjang karena proses pencarian pembeli karena terkait harga dan infrastruktur. 

Penyebab lainnya volume yang terlalu kecil untuk dikembangkan. Dari sisi lainnya, faktor yang membuat proses eksplorasi hingga produksi semakin panjang yakni sulitnya pembebasan lahan, proses perizinan, kepastian alokasi gas, proses pengadaan serta penganggaran akibat persepsi buruk dari cost recovery yang sering berakhir pada opini kerugian negara.

Bisnis Indonesia, Page-30, Tuesday, May, 9, 2017