Pertamina Returns Two Oil and Gas Blocks to Government

Gross split still seems to be an obstacle for PT Pertamina to manage oil and gas blocks that are out of contract period. Earlier the Ministry of Energy and Mineral Resources (ESDM) gave eight oil and gas blocks that will expire in 2018, but Pertamina does not want to manage all.

Based on the evaluation, Pertamina declared East Kalimantan Block uneconomical by using the revised gross split share contract in Ministerial Regulation No. 52/2017. But it turns out Pertamina will also return the Attaka Block which is included in the eight termination blocks.

Director of Upstream Oil and Gas Supervision at the Ministry of ESDM Tunggal confirmed that it is likely Pertamina will return the Attaka Block, having previously returned East Kalimantan Block to the government.

"The two blocks are a unitization package, Pertamina wants to return East Kalimantan alone or both with Attaka, but East Kalimantan and Attaka are unitisation, so the production is not separated," said Tunggal, Wednesday (27/9).

The government is still waiting for the official letter and Pertamina related to the return of both blocks. If the letter has been filed, the government will immediately conduct a special auction of both blocks. The target before next year's special auction East Kalimantan Block and Attaka Block has begun to be auctioned.

"If it is returned, prepare data, announce, then process," he said.

IN INDONESIA

Pertamina Kembalikan Dua Blok Migas ke Pemerintah

Gross split tampaknya masih menjadi ganjalan bagi PT Pertamina mengelola blok migas yang habis masa kontrak. Sebelumnya Kementerian Energi dan Sumber Daya Mineral (ESDM) memberikan delapan blok migas yang akan habis masa kontraknya pada tahun 2018 nanti, tapi Pertamina tidak ingin mengelola semua.

Berdasarkan hasil evaluasi, Pertamina menyatakan Blok East Kalimantan tidak ekonomis dengan menggunakan kontrak bagi hasil gross split yang telah direvisi dalam Peraturan Menteri Nomor 52/2017. Tapi ternyata Pertamina juga akan mengembalikan Blok Attaka yang termasuk dalam delapan blok terminasi.

Direktur Pembinaan Hulu Migas Kementerian ESDM Tunggal membenarkan, kemungkinan Pertamina akan mengembalikan Blok Attaka, setelah sebelumnya mengembalikan Blok East Kalimantan ke pemerintah. 

"Dua blok itu merupakan paket unitisasi. Pertamina mau mengembalikan East Kalimantan saja atau dua-duanya dengan Attaka. Tapi East Kalimantan dan Attaka itu merupakan unitisasi, jadi produksinya tidak dipisah," jelas Tunggal, Rabu (27/9). 

Pemerintah masih menunggu Surat resmi dan Pertamina terkait pengembalian kedua blok tersebut. Jika Surat tersebut sudah diajukan, pemerintah akan segera melakukan lelang khusus kedua blok tersebut. Targetnya sebelum tahun depan lelang khusus Blok East Kalimantan dan Blok Attaka sudah mulai dilelang. 

"Kalau memang dikembalikan, siapkan data, umumkan, lalu proses," katanya.

Kontan, Page-18, Thursday, Sept 28, 2017

Increase Production, Petronas Drill Two Wells

Malaysian oil and gas company Petronas is committed to long-term investments in Indonesia. This is shown by investment Petronas Carigali Indonesia in the field of oil and gas Bukit Tua Ketapang Work Area. Production sharing contracts in the oil and gas working area on the north coast of Madura Island have been signed since June 1998. So far, five wells have been produced.

"The production is not only petroleum, but also gas," said Senior Manager of Corporate Affairs & Administration Petronas Carigali Andiono Setiawan in Gresik (27/9).

To channel gas production from Ketapang, Petronas constructed a 110 km seabed pipeline to the onshore receiving facilities (ORF) in Gresik. The facility has a capacity of 70 million standard cubic feet per day (mmscfd). In addition, Petronas uses a floating production storage and offloading (FPSO) unit that produces oil and flows it to Pertamina.

Although the contract was signed in 1998, the Ketapang Working Area just produced oil in May 2015. The number reached 17 thousand barrels per day (bpd). Meanwhile, gas production is conducted since August 2016 of 37 million standard cubic feet per day (mmscfd).

"We expect oil production to be boosted to an optimum yield of 20,000 bpd for gas, reaching up to 50 mmscfd of optimum production," explained Andiono.

To increase oil production, Petronas is drilling two wells in Old Quarter to develop and increase production by a target of 4 thousand bpd. The drilling is targeted for completion in February 2018. The gas produced and Bukit Tua Tua field is channeled to PLN to support electricity supply in East Java through East Java Regional Government (BUMD), Petrogas Jatim Utama (PJU).

Andiono said, Bukit Tua Field is the largest upstream oil and gas project of Petronas in Indonesia. Its investment reaches USD 800 million. Petronas owns an 80 percent stake in the operator of the Ketapang Block. The rest is controlled by PT Saka Ketapang Perdana, a subsidiary of PGN.

IN INDONESIA

Tingkatkan Produksi, Petronas Bor Dua Sumur 

Perusahaan migas asal Malaysia, Petronas, berkomitmen untuk berinvestasi jangka panjang di Indonesia. Hal itu ditunjukkan dengan investasi Petronas Carigali Indonesia di lapangan minyak dan gas Bukit Tua di Wilayah Kerja Ketapang. Kontrak bagi hasil di wilayah kerja migas di pantai utara Pulau Madura tersebut ditandatangani sejak Juni 1998. Sejauh ini, ada lima sumur yang telah berproduksi. 

”Produksinya bukan hanya minyak bumi, tapi juga gas,” ucap Senior Manager Corporate Affairs & Administration Petronas Carigali Andiono Setiawan di Gresik (27/9).

Untuk mengalirkan produksi gas dari Ketapang, Petronas membangun pipa dasar laut sepanjang 110 km ke onshore receiving facilities (ORF) di Gresik. Fasilitas itu berkapasitas 70 juta standar kaki kubik per hari (mmscfd). Selain itu, Petronas menggunakan unit floating production storage and offloading (FPSO) yang memproduksi minyak sekaligus mengalirkannya ke Pertamina.

Meski kontraknya telah ditandatangani pada 1998, Wilayah Kerja Ketapang baru saja memproduksi minyak pada Mei 2015. Jumlahnya mencapai 17 ribu barel per hari (bpd). Sementara itu, produksi gas dilakukan sejak Agustus 2016 sebesar 37 juta standar kaki kubik per hari (mmscfd). 

"Kami berharap produksi minyak dapat digenjot hingga hasil optimal 20 ribu bph. Untuk gas, dapat mencapai hingga produksi optimum 50 mmscfd,” jelas Andiono.

Untuk meningkatkan produksi minyak, Petronas sedang mengebor dua sumur di Lapangan Tua untuk mengembangkan dan meningkatkan produksi dengan target 4 ribu bph. Pengeboran itu ditargetkan selesai pada Februari 2018. Gas yang diproduksi dan Lapangan Bukit Tua dialirkan ke PLN untuk mendukung penyediaan listrik di Jawa Timur melalui BUMD Jatim, Petrogas Jatim Utama (PJU).

Andiono menuturkan, Lapangan Bukit Tua merupakan proyek hulu migas terbesar Petronas di Indonesia. Investasinya mencapai USD 800 juta. Petronas menguasai 80 persen saham di perusahaan operator Blok Ketapang. Sisanya dikuasai PT Saka Ketapang Perdana, anak usaha PGN.

Jawa Pos, Page-5, Thursday, Sept 28, 2017

SKK Migas Visits Pondok Pesantrem Tebuireng

Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) held a public lecture at KH Yusuf Hasyim Hall, Pondok Pesantren (PP) Tebuireng Jombang, Wednesday (27/9). Hundreds of participants attended the public lecture. They are students and lecturers Unhasy (Hasyim Asy'ari University), as well as students of Tebuireng.

Also present were the guardians of Pustok Pesantren Tebuireng KH Salahuddin Wahid or Gus Sholah, while one of the speakers was the Head of Representative of SKK Migas Java Bali and Nusa Tenggara (Jabanusa), Ali Masyhar.

Students seem enthusiastic to follow the classroom. Evidently a number of questions from them coloring the running of the forum. Similarly, the santri who attended the event. They follow the lecture from the end until the end. Ali Masyhar said, in general, oil and gas is one of the wealth of natural resources owned by Indonesia and East Java in particular. Therefore, the public must know about the natural resources.

"So we held this public lecture, so that people know how the condition of oil and gas and what kind of management. This must be known by the students as a young generation, "said Ali Masyhar.

Ali added, speaking the East Java context, can not be separated from the culture of nahdliyin and santri. Therefore, santri should know the wealth of natural resources in the area.

"Well, about santri, pesantren Tebuireng is an icon in East Java. Hence in the general lecture we present a competent speaker in his field. Primarily about oil and gas management and its rules, "he said.

The caretaker of Pesantren Tebuireng KH Salahuddin Wahid has a view, general lecture on oil and gas is very important for santri and students. Because so far they are still blind about the condition of oil and gas in Indonesia. Because the material is not given in college.

"With the material, students can better prepare themselves in the face of competition. So, general lecture on oil and gas it is very good for students and students, "said Gus Sholah.

IN INDONESIA

SKK Migas Berkunjung Pondok Pesantrem Tebuireng

Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menggelar kuliah umum di Aula KH Yusuf Hasyim, Pondok Pesantren (PP) Tebuireng Jombang, Rabu (27/9). Ratusan peserta hadir dalam kuliah umum itu. Mereka adalah mahasiswa dan dosen Unhasy (Universitas Hasyim Asy’ari), serta santri Tebuireng.

Hadir pula pengasuh Pndok Pesantren Tebuireng KH Salahuddin Wahid atau Gus Sholah, sedangkan salah satu pemateri adalah Kepala Perwakilan SKK Migas Jawa Bali dan Nusa Tenggara (Jabanusa), Ali Masyhar.

Mahasiswa nampak antusias mengikuti kuLiah umuM itu. Terbukti sejumlah pertanyaan dari mereka mewarnai berjalannya forum. Demikian juga dengan para santri yang hadir dalam acara tersebut. Mereka mengikuti kuliah dari awaL hingga akhir. Ali Masyhar mengatakan, secara umum, migas merupakan salah satu kekayaan sumber daya alam yang dimiliki Indonesia dan Jawa Timur khususnya. Oleh karena itu masyarakat wajib tahu tentang sumber daya alam tersebut.

“Makanya kami menggelar kuliah umum ini, agar masyarakat mengetahui bagaimana kondisi migas sarta seperti apa pengelolaannya. Ini wajib diketahui oleh mahasiswa sebagai generasi muda,” ujar Ali Masyhar.

Ali menambahkan, berbicara konteks Jawa Timur, tidak bisa dilepaskan dari kultur nahdliyin dan santri. Karena itu juga, santri sudah selayaknya mengetahui kekayaan sumber daya alam di daerahnya. 

“Nah, soal santri, pesantren Tebuireng adalah ikon di Jawa Timur. Makanya dalam kuliah umum tadi kita menghadirkan pemateri yang kompeten di bidangnya. Utamanya tentang pengelolaan migas dan aturan-aturannya,” katanya.

Pengasuh Pondok Pesantren Tebuireng KH Salahuddin Wahid berpandangan, kuliah umum tentang migas sangat penting bagi santri dan mahasiswa. Karena selama ini mereka masih buta tentang kondisi migas di Indonesia. Pasalnya, materi tersebut tidak diberikan di bangku kuliah. 

“Dengan adanya materi itu, mahasiswa lebih bisa menyiapkan diri dalam menghadapi persaingan. Jadi, kuliah umum soal migas tersebut sangat bagus bagi mahasiswa dan santri,” kata Gus Sholah. 

Duta Masyarakat, Page-15, Thursday, Sept 28, 2017

Attaka & East Kal Auctioned One Package

The government not only auction East Kalimantan Block (East Kal), but also Attaka Block because of oil and gas production from both work areas.

Director of Upstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources (ESDM) Tunggal said that with the scheme of managing two oil and gas fields together, the government must auction both blocks because the processing of their products is united. Therefore, he said, if PT Pertamina will return East Kalimantan Block, it can not be returned without the Attaka Block.

"East Kalimantan and Attaka are unitisasi [merger of two blocks], the production is not separated," he said in the Mining event and Energy at JW Marriott Hotel, Wednesday (27/9).

East Kalimantan and Attaka blocks have previously been assigned to be managed by Pertamina using a gross split contract on its new contract.

In 2016, Chevron Indonesia Company as operator of the East Kalimantan Block has stated it will not renew the contract. Meanwhile, in the Attaka Block, Inex and Chevron, each holding a 50% interest in participation, did not want to manage the block after the contract expired.

On the other hand, Pertamina often mentions that the management of the East Kalimantan Block is burdened with post-mining or abandonment and site restoration (ASR) expenses.

For auction the two work areas are special. After Pertamina declared that officially its stance on both work areas and ESDM Minister Ignatius Jonan has also received an official statement from Pertamina that the auction possible to do.

"Special auction, the special auction does not have to wait next year, if it's returned, prepare the data, announce it, then process."

Upstream Director of Pertamina Syamsu Alam said that the two blocks are indeed difficult to manage. Because the economy is too low field so the company chose to restore the two blocks.

"We think the two blocks are economically heavy for us to manage."

IN INDONESIA

Attaka & East Kal Dilelang Satu Paket

Pemerintah tidak hanya melelang Blok East Kalimantan (East Kal), tetapi juga Blok Attaka karena hasil produksi minyak dan gas bumi dari kedua wilayah kerja tersebut.

Direktur Pembinaan Usaha Hulu Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Tunggal mengatakan bahwa dengan skema pengelolaan dua lapangan migas secara bersama-sama, pemerintah harus melelang kedua blok itu karena pemrosesan hasil produksinya disatukan. Oleh karena itu, dia menyebut, bila PT Pertamina akan mengembalikan Blok East Kalimantan, tidak mungkin dikembalikan tanpa Blok Attaka.  

“East Kalimantan dan Attaka itu unitisasi [penggabungan dua blok], produksinya tidak dipisah,” ujarnya dalam acara Pertambangan dan Energi di Hotel JW Marriott, Rabu (27/9).

Blok East Kalimantan dan Attaka sebelumnya telah ditugaskan agar dikelola Pertamina dengan menggunakan kontrak bagi hasil kotor (gross split) pada kontrak barunya.

Pada 2016, Chevron Indonesia Company sebagai operator Blok East Kalimantan telah menyatakan tidak akan memperpanjang kontrak. Sementara itu, pada Blok Attaka, lnpex dan Chevron yang masing-lnasing menguasai 50% saham partisipasi pun tidak ingin mengelola blok itu setelah kontrak berakhir.

Di sisi lain, Pertamina sering menyebut bahwa pengelolaan Blok East Kalimantan terbebani biaya kewajiban pascatambang atau abandonment and site restoration (ASR).

Untuk lelang kedua wilayah kerja tersebut bersifat khusus. Setelah Pertamina menyatakan bahwa secara resmi sikapnya terhadap kedua wilayah kerja itu dan Menteri ESDM Ignasius Jonan juga telah menerima pernyataan resmi dari Pertamina bahwa lelang bisa dilakukan. 

"Lelang khusus, lelang khusus itu tidak perlu menunggu tahun depan. Kalau memang itu dikembalikan, siapkan datanya, umumkan, lalu proses."

Direktur Hulu Pertamina Syamsu Alam mengatakan bahwa dua blok tersebut memang sulit untuk dikelola. Pasalnya, keekonomian lapangan terlalu rendah sehingga perseroan memilih untuk mengembalikan kedua blok tersebut. 

“Menurut kita, dua blok tersebut yang secara keekonomian berat untuk kita kelola." 

Bisnis Indonesia, Page-28, Thursday, Sept 28, 2017

Govt and investors don’t see eye-to-eye on gross-split taxation

A government regulation (PP) intended to manage taxation under the newly-introduced gross split scheme seems to be in a deadlock, due to a disagreement between the government and investors.

Deputy Finance Minister Mardiasmo confirmed that the disagreement was largely regarding whether contractors should be forced to pay taxes during an oil and gas block’s exploitation period, especially as it has become a cash cow. 

While both sides have agreed to implement a capital loss carryover during exploration widely known as being high risk and needing large amounts of investment, the Indonesian Petroleum Association (IPA) has demanded a tax exemption during production.

“If they [contractors] have started making a profit and are becoming rich, then they should start paying value-added tax and property tax. This is something we still need to find a compromise for,” Mardiasmo told reporters on the sidelines of the 2017 Mining and Energy Expo in Jakarta on Tuesday

The gross-split production sharing scheme (PSC) was introduced earlier this year to slowly phase out the current cost recovery scheme - which makes it compulsory for the government to reimburse contractors’ exploration and exploitation activities. 

While it has since been revised to accommodate investor concerns, many have remained hesitant toward the gross-split scheme due to a lack of clarity on the taxation mechanism.

The government has disclosed that the upcoming PP would largely be similar to Government regulation (PP) No. 27/2017 on taxation under cost recovery which provides the minister with the authority to determine the sliding scale split in a cooperation contract and scrap the domestic market obligation (DMO) for investors with an approval from the Finance Minister, as well as detailed fiscal incentives. 

Moreover, Mardiasmo also confirmed that income tax would be cut to 25 percent from the initial 35 percent. Meanwhile, the ReforMiner Institute recently issued a report containing its simulation of the option to tax gross revenue under the gross-split scheme, in comparison to the current taxable income system.

Based on PteforMiner’s simulation, implementing tax on gross revenue caused the oil and gas block’s net present value (NPV) to decrease by 40 percent for every 1 percent hike in taxes. In comparison, using the current tax system would only cause it to decrease by 28 percent.

Furthermore, taxing gross revenue would also cause the internal rate of return (IRR) to decrease by a whopping 0.49 percent, in comparison to 0.09 percent using the taxable income scheme.

“Based on the comparison, a normal taxation system would give a healthier cash How because the level of sensitivity is much smaller, meaning that it will produce better results and tax rates,” the report stated. 

“This is important to ensure an enticing project and also the longevity of the oil and gas industry during a period of unstable oil prices and a change in Indonesia’s fiscal system.”

The recent revision of the gross-split regulation and its subsequent effect on the upcoming Government regulation (PP) on taxation has forced the Energy and Mineral Resources Ministry to once again postpone the deadline until November for the oil and gas blocks it has put on auction this year.

The ministry has put up 15 oil and gas blocks this year, all under the gross-split scheme. “[Investors] have asked us to be clear on taxation before they are willing to resubmit their bids for the blocks they wish to operate,” Deputy Energy and Mineral Resources Minister Arcandra Tahar said.

The gross-split scheme was initially established to entice more investors to Indonesia’s upstream sector, in addition to unburdening the government’s coffers.  In 2015, the government found no suitable winners for all 11 blocks it had put on auction that year. This is in stark contrast to the 2012-2014 period when there were 89 winners in auctions for a total of 50 blocks.

Separately, IPA executive director Marjolijn declined to confirm the contents of the association’s discussion with the government on the issue of taxation. “We cannot speak about it publicly since we are still discussing the details,” she said.

Jakarta Post, Page-19, Wednesday, Sept 27, 2017

Bojonegoro will get DBH Oil Rp 200 Billion

The government of Bojonegoro regency, East Java, will get Rp 200 billion for the third quarter (DBH) of oil and gas revenue, lower than the target set at Rp225 billion due to the new regulation of the Ministry of Finance.

Head of Bojonegoro Regency Revenue Agency, Herry Sudjarwo, in Bojonegoro, Tuesday, explained that according to Finance Minister Decree Noi 112 year 2017 for oil and gas DBH with 80 percent ceiling is reduced to 70 percent. In the region, the target for the acquisition of the third quarter of the oil and gas projection is projected at Rp 225 billion, therefore, due to the new PMK, the gain is only around Rp200 billion.

"The Ministry of Finance will transfer DBH oil and gas in the third quarter next week," he added. He further explained that according to Presidential Regulation (Perpres) no. 2016 on the translation of APBN 2017 for oil and gas DBH in the region is projected to Rp 903.3 billion. However, in Presidential Regulation no. 86 of 2017 on the translation of APBN 2017 changes in the amount of DBH acquisition the oil and gas sector was raised to Rp1,035 trillion, but in the distribution of oil and gas DBH decreased to only 70 percent.

"Yes DBH oil and gas in the APBN Changes rise, but the ceiling is lowered yes the same no change," he said.

He gave an illustration of the increase of oil and gas DBH in the Revised State Budget because of the influence of the increase in oil production in the region so that to Rp 1.035 trillion is no different from before. In the new provision of oil and gas DBH disbursement with 70 percent ceiling, the amount of oil and gas DBH is only Rp 724 billion, whereas the projected oil and gas DBH of Rp 903.3 billion with the ceiling of 80 percent acquisition of oil and gas DBH Rp 722 billion.

"Not to mention the acquisition of oil and gas DBH should be cut by Rp 147 billion (quarter I) due to the excess of saliva remaining in 2015 amounting to Rp 549.5 billion," he said.

IN INDONESIA

Bojonegoro akan  Peroleh DBH Migas Rp 200 Miliar

Pemerintah Kabupaten (Pemkab) Bojonegoro, Jawa Timur, akan memperoleh dana bagi hasil (DBH) migas triwulan III sekitar Rp 200 miliar, lebih rendah dari target yang ditetapkan sebesar Rp225 miliar karena ada ketentuan baru Kementerian Keuangan.

Kepala Badan Pendapatan Daerah Pemkab Bojonegoro Herry Sudjarwo, di Bojonegoro, Selasa, menjelaskan sesuai Peraturan Menteri Keuangan (PMK) Noi 112 tahun 2017 untuk DBH migas dengan pagu 80 persen diturunkan menjadi 70 persen. Di daerahnya, target perolehan DBH migas triwulan III diproyeksikan sebesar Rp 225 miliar, sehingga karena adanya PMK yang baru itu maka perolehan turun hanya sekitar Rp200 miliar.

“Kementerian Keuangan akan mentrasfer DBH migas triwulan III pekan depan,” ucapnya menambahkan. Lebih lanjut ia menjelaskan sesuai Peraturan Presiden (Perpres) No. 2016 tentang penjabaran APBN 2017 untuk DBH migas di daerahnya diproyeksikan sebesar Rp 903,3 miliar. Namun dalam Perpres No. 86 tahun 2017 tentang penjabaran APBN Perubahan 2017 besarnya perolehan DBH

migas daerahnya dinaikkan menjadi Rp1,035 triliun, tetapi dalam penyaluran DBH migas diturunkan menjadi hanya 70 persen.

“Ya DBH migas di dalam APBN Perubahan naik, tetapi pagu diturunkan ya sama saja tidak ada perubahan,” ujarnya.

Ia memberikan gambaran adanya kenaikan DBH migas di dalam APBN Perubahan karena pengaruh kenaikan produksi minyak di daerahnya sehingga menjadi Rp 1,035 triliun tidak ada bedanya dengan sebelumnya. Di dalam ketentuan yang baru penyaluran DBH migas dengan pagu 70 persen maka besarnya perolehan DBH migas hanya Rp 724 miliar, padahal proyeksi DBH migas Rp 903,3 miliar dengan pagu 80 persen perolehan DBH migas Rp 722 miliar. 

“Belum lagi perolehan DBH migas harus dipotong Rp 147 miliar (triwulan I) karena adanya kelebihan sisa salur pada 2015 sebesar Rp 549,5 miliar,” ucapnya.

Investor Daily, Page-23, Wednesday, Sept 27, 2017

Gross Split Oil and Gas Still Negotiable

The government continues to draft a regulation on tax schemes in a share-sharing contract for gross splits. Understandably, oil and gas contractors waiting for this tax regulation are highly anticipated oil and gas contractors. In order for this rule to be published soon, Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar continues to ask the Ministry of Finance to issue a regulation on gross split tax.

Mardiasmo, Deputy Ministry of Finance, states, will make the rules that adopt Government Regulation No. 27/2017. That way, the government will not impose taxes during the exploration period. 

    While in times of exploitation, the government will only impose tax when it has reached the economic period. This means that when the initial production period, the contractors do not pay indirect tax such as Value Added Tax (VAT). However, the draft regulation is still contrary to the investor's proposal regarding gross split tax.

Mardiasmo stated, investors want during the period of exploration and exploitation is not taxable. He explained that the government still wants to impose taxes during the exploitation period, but only when the company has reached the project economy.

"If forever all projects are not subject to VAT and PBB, other taxes, this is looking for a solution," he explained, Tuesday (26/9).

In addition to asking for tax freedom, Mardiasmo said investors also asked not to get lost carry forward scheme. "This is not cost recovery, but it could be tax deducted, can be deducted," he said.

IN INDONESIA

Pajak Gross Split Migas Masih Dinegosiasi

Pemerintah terus merancang peraturan mengenai skema pajak dalam kontrak bagi hasil gross split. Maklum, kontraktor minyak dan gas saat menanti peraturan pajak ini sangat dinanti kontraktor migas. Supaya aturan ini bisa segera terbit, Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar terus meminta Kementerian Keuangan segera menerbitkan peraturan soal pajak gross split.

Mardiasmo, Wakil Kementerian Keuangan, menyatakan, akan membuat aturan yang mengadopsi Peraturan Pemerintah Nomor 27/2017. Dengan begitu, pemerintah tidak akan mengenakan pajak selama masa eksplorasi. Sementara di masa eksploitasi, pemerintah hanya akan mengenakan pajak ketika sudah mencapai masa keekonomian. 

    Ini berarti ketika masa awal produksi, para kontraktor tidak membayar indirect tax seperti Pajak Pertambahan Nilai (PPN). Namun rancangan peraturan tersebut masih bertentangan dengan usulan investor terkait pajak gross split. 

Mardiasmo menyatakan, investor ingin selama masa eksplorasi dan eksploitasi tidak terkena pajak. Dia menjelaskan, pemerintah tetap ingin mengenakan pajak selama masa eksploitasi, tapi hanya ketika perusahaan sudah mencapai keekonomian proyek. 

"Kalau selamanya semua proyek tidak dikenakan PPN dan PBB, tax lainnya, ini sedang mencari solusi," jelasnya, Selasa (26/9).

Selain meminta kebebasan pajak, Mardiasmo menyebut investor juga meminta tidak terkena skema lost carry forward. "Ini bukan cost recovery, tapi bisa jadi tax deducted, bisa dikurangkan,“ katanya.

Kontan, Page-18, Wednesday, Sept 27, 2017

New Scheme Will Be Published in October

Tax incentive schemes for upstream oil and gas investments with the gross split regime are due for release in October. This scheme is expected to be an incentive to encourage investment in upstream oil and gas business. Deputy Finance Minister Mardiasmo said here on Tuesday that the draft government regulation governing investment provisions in the upstream oil and gas business with the gross split regime or profit sharing is expected to be completed and published in October.

Previously, the government has issued Government Regulation No. 27 of 2017 on Amendment to Government Regulation Number 79 of 2010 on Refundable Operating Costs and the Treatment of Income Tax in Upstream Oil and Gas Business. This applies to old investors who have been investing in a product sharing contract with cost recovery or recovery costs as one of its components.

In an interactive discussion on Mining and Energy Expo 2012 Mardiasmo said some articles on Government Regulation No. 27/2017 are not suitable for the gross split regime applied to potential investors. Therefore, new regulations are prepared. His spirit, referring to Government Regulation No 27/2017, in exploration, the government exempts import duties, Income Tax, Import Value Added Tax (VAT), Domestic VAT, and Land and Building Tax.

"But there's still work for loss carry forward. If the pre-vailing model using the rule of law, can only be applied for the next five years. While the exploration is more than five years. We are looking for a solution, "said Mardiasmo.

Separately, Deputy Minister of Energy and Mineral Resources Arcandra Tahar welcomed the progress of the preparation of the rules. He hopes the results can effectively encourage investment in upstream oil and gas.

"I am optimistic with the Ministry of Finance. We have an intensive discussion "said Arcandra.

IN INDONESIA

Skema Baru Akan Terbit pada Oktober

Skema insentif pajak untuk investasi di hulu minyak dan gas bumi dengan rezim gross split direncanakan terbit Oktober. Skema ini diharapkan jadi insentif untuk mendorong investasi di usaha hulu minyak dan gas bumi. Wakil Menteri Keuangan Mardiasmo di Jakarta, Selasa (26/9), mengatakan, rancangan peraturan pemerintah yang mengatur ketentuan investasi di usaha hulu migas dengan rezim gross split atau bagi hasil ini diharapkan selesai dan terbit pada Oktober.

Sebelumnya, pemerintah telah menerbitkan Peraturan Pemerintah (PP) Nomor 27 Tahun 2017 tentang Perubahan terhadap Peraturan Pemerintah Nomor 79 Tahun 2010 tentang Biaya Operasi yang Dapat Dikembalikan dan Perlakuan Pajak Penghasilan di Bidang Usaha Hulu Minyak dan Gas Bumi. Ini berlaku untuk investor lama yang selama ini berinvestasi dengan kontrak bagi hasil (product sharing contract) dengan cost recovery atau biaya pemulihan sebagai salah satu komponennya.

Dalam diskusi interaktif pada Pertambangan dan Energi Expo 2012 Mardiasmo mengatakan, beberapa pasal pada Peraturan Pemerintah No 27/2017 tidak cocok untuk rezim gross split yang diterapkan untuk calon investor. Karena itu, disiapkan peraturan yang baru. Semangatnya, mengacu pada Peraturan Pemerintah No 27/2017, dalam eksplorasi, pemerintah membebaskan bea masuk, Pajak Penghasilan, Pajak Pertambahan Nilai (PPN) impor, PPN dalam negeri, serta Pajak Bumi dan Bangunan.

”Tapi masih ada pekerjaan rumah untuk loss carry forward. Kalau model pre-vailing dengan menggunakan aturan undang-undang, hanya bisa diterapkan untuk lima tahun ke depan. Sementara eksplorasi Iebih dari lima tahun. Ini sedang kita cari solusinya,” kata Mardiasmo.

Secara terpisah, Wakil Menteri Energi dan Sumber Daya Mineral Arcandra Tahar menyambut baik perkembangan penyiapan aturan itu. Ia berharap hasilnya bisa efektif mendorong investasi di hulu migas. 

”Saya optimistis dengan Kementerian Keuangan. Kami berdiskusi dengan intensif” kata Arcandra.

Kompas, Page-20, Wednesday, Sept 27, 2017

PGN Asks Gas Allocation from Pertamina

PT Perusahaan Gas Negara hopes to get gas supply from Jambaran-Tiung Biru Field, Cepu Block about 60 million cubic feet per day. President Director of Perusahaan Gas Negara Joni Triananda Hasjim admitted that his party has expressed his desire to absorb gas from the Jambaran-Tiung Biru field to the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan.

He hopes to get 50 million cubic feet of gas per day (MMscfd) up to 60 MMscfd which will be distributed to industrial, household, commercial, and transportation consumers. The company has a gas distribution network in Gresik, Probolinggo, Mojokerto, and Surabaya.

"Our hope is 50, 60 [MMscfd] we are ready because our network exists from Gresik to Probolinggo, Mojokerto to Surabaya. In terms of infrastructure, we are ready in addition to electricity, "he said, Monday (25/9).

He considered that the gas allocation from the gas field located in Bojonegoro, East Java could increase PGN gas distribution in East Java. The first gas production projection operated by PT Pertamina EP Cepu was in 2021, in line with the increasing demand for gas in East Java and could be an opportunity to increase gas distribution.

PGN is working on the Gresik-Lamongan-Tuban gas pipeline project and its network in Pasuruan. According to him, the construction of pipeline infrastructure must be built first without having to wait for the emergence of gas demand. The reason, there is a gap of about 5 years between infrastructure development and the growth of the market.

For example, on the South Sumatra West Java (SSWJ) pipeline project, new gas consumers emerge 4 ~ 5 years after the pipeline is built. In the first semester of 2017, PGN has a PGN gas pipeline infrastructure of 7.337 km or an increase of 1.7% compared to the achievement in the first semester of 2010/2012 along 7,212 km.

PGN supplies natural gas to 1,659 large industries and power plants, 1,928 commercial customers such as hotels, restaurants, hospitals and small and medium enterprises (SMEs) as well as 170,094 household customers spread across North Kalimantan and Papua. From those customers, during the period of January-June 2017, PGN managed natural gas of 1,470 MMscfd down compared to the same period last year 1,613 MMscfd.

In detail, the volume of distribution gas is 749 MMscfd and transmission of 721 MMscfd contributed by PGN and its subsidiaries PT Transportasi Gas Indonesia (TGI) and PT Kalimantan Jawa Gas (KJG). Jobi assessed that the government needs infrastructure in many areas either in the form of gas pipeline or storage and regasification facilities.

In addition to pipes, the company manages and distributes natural gas for transportation to 10 gas refueling stations (SPBG) and four mobile refueling units (MRU). President Director of PT Pertamina Elia Massa Manik said that Pertamina through its subsidiary, PT Pertamina Gas (Pertagas), is completing the construction of 267 km of Gresik-Semarang gas transmission line. Physical construction has now reached 85%.

IN INDONESIA

PGN Minta Alokasi Gas dari Pertamina

PT Perusahaan Gas Negara berharap agar bisa mendapatkan pasokan gas dari Lapangan Jambaran-Tiung Biru, Blok Cepu sekitar 60 juta kaki kubik per hari. Direktur Utama Perusahaan Gas Negara Jobi Triananda Hasjim mengaku bahwa pihaknya telah menyampaikan keinginannya untuk menyerap gas dari Lapangan Jambaran-Tiung Biru kepada Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan.

Dia berharap agar bisa mendapatkan gas sebanyak 50 juta kaki kubik per hari (MMscfd) hingga 60 MMscfd yang akan didistribusikan kepada konsumen industri, rumah tangga, komersial hingga transportasi. Pasalnya, perseroan telah memiliki jaringan distribusi gas di Gresik, Probolinggo, Mojokerto, dan Surabaya.

“Harapan kita ya 50, 60 [MMscfd] kita siap karena jaringan kita ada dari Gresik sampai Probolinggo, Mojokerto ke Surabaya. Dari sisi infrastruktur, kita siap selain untuk listrik ya,” ujarnya, Senin (25/9).

Dia menilai bahwa alokasi gas dari lapangan gas yang berlokasi di Bojonegoro, Jawa Timur itu bisa menambah penyaluran gas PGN di Jawa Timur. Proyeksi produksi pertama lapangan gas yang dioperasikan oleh PT pertamina EP Cepu itu pada 2021, sejalan dengan kebutuhan gas di Jawa Timur yang sudah naik dan bisa menjadi peluang peningkatan distribusi gas.

PGN sedang mengerjakan proyek pengembangan pipa gas Gresik-Lamongan-Tuban dan jaringan di Pasuruan. Menurutnya, pembangunan infrastruktur pipa harus dibangun lebih dulu tanpa harus menanti munculnya permintaan gas. Alasannya, terdapat jeda sekitar 5 tahun antara pembangunan infrastruktur dan tumbuhnya pasar. 

Sebagai contoh pada proyek pipa South Sumatera West Java (SSWJ), konsumen gas baru bermunculan 4~5 tahun setelah pipa dibangun. Pada semester I/2017, PGN memiliki infrastruktur pipa gas PGN sepanjang 7.337 km atau naik 1,7% dibandingkan dengan capaian pada semester 1/2016 sepanjang 7.212 km.

PGN memasok gas bumi ke 1.659 industri besar dan pembangkit listrik, 1.928 pelanggan komersial seperti hotel, restoran, rumah sakit, dan usaha kecil menengah (UKM) serta 170.094 pelanggan rumah tangga yang tersebar hingga Kalimantan Utara dan Papua. Dari pelanggan tersebut, selama periode Januari-Juni 2017, PGN mengelola gas bumi sebesar 1.470 MMscfd turun dibandingkan dengan periode yang sama tahun lalu 1.613 MMscfd.

Rincinya, volume gas distribusi sebesar 749 MMscfd dan transmisi sebesar 721 MMscfd yang dikontribusikan oleh PGN dan anak perusahaan PT Transportasi Gas Indonesia (TGI) dan PT Kalimantan Jawa Gas (KJG). Jobi menilai bahwa pemerintah membutuhkan infrastruktur di banyak wilayah baik berupa pipa gas maupun fasilitas penyimpanan dan regasifikasi. 

Selain pipa, perseroan mengelola dan menyalurkan gas bumi untuk transportasi ke 10 stasiun pengisian bahan bakar gas (SPBG) dan empat mobile refueling unit (MRU). Direktur Utama PT Pertamina Elia Massa Manik mengatakan, Pertamina melalui anak perusahaan, PT Pertamina Gas (Pertagas), sedang menyelesaikan pembangunan pipa transmisi gas ruas Gresik-Semarang sepanjang 267 km. Konstruksi fisik kini telah mencapai 85%.

Bisnis Indonesia, Page-28, Wednesday, Sept 27, 2017

Pertamina Spends Rp 20.46 Trillion For JTB

PT Pertamina through its subsidiary, PT Pertamina EP Cepu (PEPC) will issue an investment fund worth 1.547 billion US dollars or Rp 20.46 trillion for the Jambaran-Tiung Biru Gas Fieldization (JTB) field project. Investment in projects that are part of the national strategic project is expected to provide a multiplier effect for the national economy.

President Director of PT Pertamina Elia Massa Manik explained that the development of Jambaran-Tiung Biru will be a new hope for Indonesia, especially to overcome the gas supply deficit in Central Java and East Java. With JTB gas reserves of 2.5 trillion cubic feet (TCF) Pertamina expects the industries in Central Java and East Java to have sufficient gas supply to drive the national economy.

"The development of the JTB field will also create employment directly and indirectly and in turn will reduce the poverty rate which is one of President Joko Widodo's priority programs," Massa said in Bojonegoro, Monday (25/9).

Currently, according to Massa, Pertamina is still completing the negotiation of the transfer of participating interest (PI) in the development of JTB. Pertamina now has a 45 percent PI. However, after managing it, Pertamina will control PI up to 91 percent and the remaining nine percent will be owned by regionally owned enterprises (BUMD).

Along the process of negotiation, has been a lot of progress achieved JTB project. Progress is among others the achievement of a gas purchase agreement with PT PLN at a price of 7.6 US dollars per Million Metric British Thermal Unit (MMBTU) on August 8, 2017.

"The agreement was the beginning to be able to develop gas field JTB, because there are already buyers," said Massa.

Massa later explained that JTB field has a high complexity with 34 percent CO2 content, 330 million cubic feet per day gas processing facility (MMSCFD), and gas selling 172 MMSCFD. The pod project will begin drilling after PEPC appointed PT Rekayasa Industri (Rekind) and PT Japan Gas Corporation which has won the tender. "

     Massa also added that currently, Pertamina through its subsidiary, PT Pertamina Gas (Pertagas) is completing the construction of 267 kilometers of Gresik-Semarang pipeline with investment value of approximately 515.7 million US dollars or Rp 6.70 trillion

"With EPC progress now reaching 85 percent, it is estimated that this project will be onsntream in the middle of 2018," said Massa.

President Director of PT Pertamin EP Cepu (PEPC) Adriansyah confirmed that the JTB gas field development project project will have a multiplier effect for the local community. That is none other than because the project will absorb about 6,000 local workers at the peak of the project.

"The JTB project will employ 6,000 local workers in Bojonegoro and surrounding areas. Our commitment to contribute to boost the regional economy is by creating jobs for local communities," Adriansyah said.

Adriansyah added, indeed for early civil work (ECW), currently there are only about 200 unskill labor in the project. However, as more work on JTB projects will be built in the future, local labor needs will also increase.

IN INDONESIA

Pertamina Alirkan Rp 20,46 Triliun Untuk JTB

PT Pertamina melalui anak perusahaan, PT Pertamina EP Cepu (PEPC) akan mengeluarkan dana investasi senilai 1,547 miliar dolar AS atau Rp 20,46 triliun untuk proyek unitisasi Lapangan Gas Jambaran-Tiung Biru (JTB). Investasi terhadap proyek yang merupakan bagian proyek strategis nasional tersebut diharapkan dapat memberikan multiplier effect bagi ekonomi nasional.

Direktur Utama PT Pertamina Elia Massa Manik menjelaskan, pengembangan Jambaran-Tiung Biru akan menjadi harapan baru bagi Indonesia, khususnya untuk mengatasi defisit pasokan gas di Jawa Tengah dan Jawa Timur. Dengan cadangan gas JTB sebesar 2,5 triliun kaki kubik (TCF) Pertamina berharap industri di Jawa Tengah dan Jawa Timur akan mendapat suplai gas yang cukup menggerakkan ekonomi nasional.

"Pengembangan lapangan JTB juga akan membuka lapangan kerja secara langsung maupun tidak langsung dan pada gilirannya akan mengurangi angka kemiskinan yang menjadi salah satu program prioritas Presiden Joko Widodo," kata Massa di Bojonegoro, Senin (25/ 9).

Saat ini, menurut Massa, Pertamina masih terus menuntaskan negosiasi pengalihan hak partisipasi (participating interest/PI) dalam pengembangan JTB. Pertamina kini memiliki PI 45 persen. Namun, setelah alih kelola, Pertamina akan menguasai PI hingga 91 persen dan sisanya sembilan persen akan dimiliki badan usaha milik daerah (BUMD).

Seiring proses negoisasi tersebut, telah banyak kemajuan diraih proyek JTB. Kemajuan yang dimaksud antara lain tercapainya kesepakatan jual beli gas bumi dengan PT PLN dengan harga 7,6 dolar AS per Million Metric British Thermal Unit (MMBTU) pada 8 Agustus 2017.

"Kesepakatan itu menjadi awal untuk bisa mengembangkan lapangan gas JTB, karena sudah ada pembelinya," ujar Massa.

Massa kemudian menjelaskan, lapangan JTB memiliki kompleksitas tinggi dengan kandungan CO2 34 persen, fasilitas pemrosesan gas 330 juta kaki kubik per hari (MMSCFD), dan produksi gas jual 172 MMSCFD. Adapun pod proyeknya akan dimulai pengeborannya setelah PEPC menunjuk PT Rekayasa Industri (Rekind) dan PT Japan Gas Corporation yang sudah memenangkan tender."   

Massa juga menambahkan, saat ini, Pertamina melalui anak perusahaan, PT Pertamina Gas (Pertagas) sedang menyelesaikan pembangunan pipa Gresik-Semarang sepanjang 267 kilometer dengan nilai investasi sekitar 515,7 juta dolar AS atau Rp 6,70 triliun

"Dengan progres EPC saat ini sudah mencapai 85 persen, diperkirakan proyek ini akan onsntream pada per-tengahan tahun 2018," kata Massa. 

Direktur Utama PT Pertamin EP Cepu (PEPC) Adriansyah memastikan proyek proyek pengembangan Lapangan gas JTB akan memiliki multiplier effect bagi masyarakat setempat. Itu tidak lain karena proyek tersebut akan menyerap sekitar 6.000 pekerja lokal pada  masa puncak proyek.

"Proyek JTB akan mempekerjakan 6.000 tenaga lokal di Bojonegoro dan sekitarnya, Komitmen kami untuk bisa berkontribusi mendorong perekonomian daerah salah satunya adalah dengan menciptakan lapangan kerja bagi masyarakat setempat,” kata Adriansyah 

Adriansyah menambahkan, memang untuk early civil work (ECW), saat ini baru saja terdapat sekitar 200 orang unskill labour dalam proyek tersebut. Namun, sejalan dengan makin padatnya pengerjaan proyek JTB di masa mendatang, kebutuhan tenaga kerja lokal juga akan semakin meningkat. 

Republika, Page-19, Tuesday, Sept 26, 2017