Fertilizers hit by gas prices

The high price of industrial gas in Indonesia had an impact on the loss of several fertilizer factories owned by PT Pupuk Indonesia. Among 14 fertilizer factories owned by the company, five fertilizer factories are estimated to be losers due to gas prices and aging of old plants. Main Director of PT Pupuk Indonesia Aas Asikin Idat revealed that the ideal gas price for the fertilizer industry is USD 3 per mmbtu.

"Because, our competitor factories in the international world already enjoy the gas price of USD 1.5 to USD 3 per mmbtu. Meanwhile, fertilizer factory in the country must pay USD 6 per mmbtu, "he said yesterday (16/10).

According to him, it is further exacerbated by the excess supply of global fertilizers and the decline of world oil prices that have an impact on the decline in world fertilizer prices. The world supply of fertilizers currently reaches 240 million tons, while the world fertilizer demand is only 180 million tons per year.

World fertilizer prices fell and USD 350 to USD 400 per ton to USD 210 to USD 220 per ton. Meanwhile, the cost of production of fertilizer in Indonesia can reach USD 240 to USD 260 per ton.

IN INDONESIA

Pupuk Terpukul Harga Gas

Tingginya harga gas industri di Indonesia berdampak terhadap meruginya beberapa pabrik pupuk milik PT Pupuk Indonesia. Di antara 14 pabrik pupuk milik perseroan, lima pabrik pupuk diperkirakan merugi lantaran harga gas dan usia pabrik yang sudah tua. Direktur Utama PT Pupuk Indonesia Aas Asikin Idat mengungkapkan, harga gas ideal untuk industri pupuk adalah USD 3 per mmbtu. 

”Sebab, pabrik pesaing kita di dunia internasional sudah menikmati harga gas sebesar USD 1,5 hingga USD 3 per mmbtu. Sedangkan saat ini pabrik pupuk di tanah air harus membayar USD 6 per mmbtu," paparnya kemarin (16/10).

Menurut dia, hal itu semakin diperparah dengan adanya kelebihan pasokan pupuk global dan turunnya harga minyak dunia sehingga berdampak terhadap penurunan harga pupuk dunia. Pasokan pupuk dunia saat ini mencapai 240 juta ton, sedangkan kebutuhan pupuk dunia hanya 180 juta ton per tahun.

Harga pupuk dunia turun dan USD 350 hingga USD 400 per ton menjadi USD 210 hingga USD 220 per ton. Sementara itu, biaya pokok produksi pupuk di Indonesia bisa mencapai USD 240 hingga USD 260 per ton.

Jawa Pos, Page-5, Tuesday, October 17, 2017

Margin Restrictions for All Contracts

A maximum restriction of the commercial gas margin policy of 7% will be retroactive, applicable for all ongoing contracts as well as new contracts.

Chairman of the Indonesian Natural Gas Trader Association (INGTA) Sabrun Jamal said that in a meeting with the government related to the gas trading margin has been established there will be no transitional rules.

All contracts will follow the new rules, namely a maximum of 7% margin set by the government. Thus, consumers can calculate the gas price based on the formula so that no longer need to do the process in business.

"The contract is running [as well], there is a revision of all contracts," he said.

In the discussion on the beleid margin of gas nubagas, INGTA proposes five things. First, the adjustment of the upstream gas price component refers to Presidential Regulation No. 40/2016 on Gas Pricing, which is US $ 6 per MMBtu.

Secondly, the decrease of the tariff for gas transportation or toll fee. Third, the private sector's trade margin to be equated with state-owned enterprises (BUMN). Fourth, the depreciation of new infrastructure investment pipeline of 5 years.

Fifth, the commercial cost is calculated based on the upstream price, ie the price at the mouth of the well plus the toll fee of loss, and the volume reduction during delivery. Distribution tariffs are structured with capital plus 12% return on investment (IRR), operating and maintenance costs 10% of capital, taxes and dues. Then, for a 10% commercial cost and upstream price that accommodate marketing costs, risks and margins.

Previously, Sabrun mentioned that it only gets a 7.2% margin from upstream gas price which is used for operational cost, investment and small margin although not explained in detail the division. Meanwhile, 92.8% is a component of upstream gas price cost and gas transportation costs to be paid to gas producers and license holders of gas transponency.

He also said that with a 7% margin restriction, the government proposed to cut costs that are not needed so that the regulation can be run.

Fees such as land rent, volume reduction during delivery are promised will be eliminated. Later, the Downstream Oil and Gas Regulatory Agency (BPH Migas) will conduct an evaluation of the elimination of such costs after the rules are released.

"We ask for some, there are unusual charges in our business," he said.

PR & CSR Manager PT Pertamina Gas Hatim Ilwan said that it supports the rule. The government that conducts IRR for pipeline owners, according to him, has already considered the impact on the pipeline owners as well as the gas utilization industry.

IN INDONESIA

Pembatasan Margin untuk Semua Kontrak

Kebijakan pembatasan margin niaga gas maksimal sebesar 7% akan berlaku surut, yaitu diberlakukan untuk semua kontrak baik yang sedang berjalan maupun kontrak baru.

Ketua Indonesian Natural Gas Trader Association (INGTA) Sabrun Jamal mengatakan bahwa dalam rapat dengan pemerintah terkait dengan margin niaga gas telah ditetapkan tidak akan ada peraturan peralihan.

Semua kontrak akan mengikuti aturan baru tersebut, yaitu margin maksimal 7% yang ditetapkan pemerintah. Dengan demikian, konsumen bisa menghitung harga gas berdasarkan formula tersebut sehingga tidak perlu lagi melakukan proses secara bisnis.

“Kontrak yang berjalan [kena juga], ada revisi kontrak semua,” ujarnya. 

Dalam rapat pembahasan beleid margin niagas gas, INGTA mengusulkan lima hal. Pertama, penyesuaian komponen harga gas bumi di hulu mengacu pada Peraturan Presiden Nomor 40/2016 tentang Penetapan Harga Gas Bumi, yaitu US$ 6 per MMBtu.

Kedua, penurunan tarif pengangkutan gas atau toll fee. Ketiga, margin niaga badan usaha swasta agar disamakan dengan badan usaha milik negara (BUMN). Keempat, depresiasi pipa investasi infrastruktur baru sebesar 5 tahun. 

Kelima, biaya niaga dihitung berdasarkan harga hulu, yakni harga di mulut sumur ditambah toll fee kerugian, dan pengurangan volume selama penghantaran. Tarif penyaluran disusun dengan modal ditambah tingkat pengembalian investasi (IRR) 12%, biaya operasi dan perawatan 10% dari modal, pajak dan iuran. Kemudian, untuk biaya niaga sebesar 10% dan harga hulu yang mengakomodasi biaya pemasaran, risiko dan margin.

Sebelumnya, Sabrun menyebut selama ini hanya memperoleh margin 7,2% dari harga gas hulu yang digunakan untuk biaya operasi, investasi dan margin yang kecil meskipun tidak dijelaskan secara rinci pembagiannya. Sementara itu, 92,8% merupakan komponen biaya harga gas hulu dan biaya transportasi gas yang harus dibayar ke produsen gas serta pemegang izin transponasi gas.

Dia pun menuturkan bahwa dengan pembatasan margin 7 % , pemerintah diusulkan untuk memangkas biaya yang tidak diperlukan agar regulasi itu bisa dijalankan.

Biaya-biaya seperti sewa lahan, pengurangan volume selama penghantaran dijanjikan akan dihilangkan. Nantinya, Badan Pengatur Hilir Minyak dan Gas Bumi (BPH Migas) akan melakukan evaluasi terhadap penghapusan biaya tersebut setelah aturan dirilis.

“Kami minta ada beberapa, ada pungutan yang tidak wajar di bisnis kita," katanya.

PR & CSR Manager PT Pertamina Gas Hatim Ilwan mengatakan bahwa pihaknya mendukung aturan tersebut. Pemerintah yang melakukan IRR bagi pemilik pipa, menurutnya, sudah mempertimbangkan dampaknya terhadap para pemilik pipa juga industri pemanfaat gas.

Bisnis Indonesia, Page-30, Tuesday, October 17, 2017

Oil, Gas firms to be exempt from GW tax

The government is formulating a decree that will exempt upstream oil and gas contractors from paying groundwater (GW) tax, a move that will ease their burdens when they operate under the gross-split scheme.

At present, groundwater tax is calculated by each regency or municipal administration, with contractors operating in accordance to the water obtaining value (NPA) formulated by the Energy and Mineral Resources Ministry through Decree No. 20/2017.

Upstream contractors pay such a tax because they use huge amounts of groundwater to extract oil and gas. This often- happens when contractors try to maintain the productior of mature and depleted oil fields through enhanced oil recovery (EOR) activities.

“The tax should only apply to groundwater from aquifers that can be utilized for human activities. However, the Water that comes from oil and gas fields is toxic and has no use for humans That’s why We urged contractors to transfer such Water to reservoirs,” the ministry’s oil and gas director general, Ego Syahrial said recently.

“Therefore, we want to nullify the NPA of such water so that contractors don’t need to pay the groundwater tax.”

Ego said, for instance, the production of 100,000 barrels of oil at the Minas Field in Riau Islands required 4.9 million barrels of water. As a result, the field’s operator, PT Chevron Pacific Indonesia, the local unit of American oil and gas giant Chevron, was forced to pay in advance the groundwater tax to the regional administration before eventually being reimbursed by the central government through a cost recovery scheme.

However, as the government intends to replace the cost recovery scheme 'With the gross-split sliding scale for all new contracts, such a tax exemption will be crucial to make upstream projects more economical for contractors. The new scheme will no longer require the government to reimburse exploitation costs to contractors during the length of their contracts. As a result, companies`will carry the burden of these costs themselves.

Moreover, as of today the government has yet to complete the drafting process of the government regulation (PP) on gross split taxations, resulting in further uncertainties among upstream contractors.

Pri Agung Rakhmanto, a researcher with the Jakarta-based energy think-tank ReforMiner Institute, said it was the right move for the government to exempt contractors from the groundwater tax because the collection of such a tax violated the assume-and-discharge provisions stated in their production sharing contracts (PSC).

As assume-and-discharge system is touted to guarantee that investors do not have to pay additional fees or taxes during the long duration of their PSC, many of which last for more than 30 years.

“With the cost recovery scheme, it was natural for the government to apply an assume-and-discharge system because the contractors only helped produce oil and gas for the country But with the gross-split scheme, contractors had to bear all the risks, making upstream projects unattractive to them,” Pri Agung said.

The government hopes that EOR activities result in the recovering of around 2.5 billion barrels of oil in reserves by 2050. Hence, a high-tax system is feared to discourage investors from undertaking the costly EOR activities in the future.

The country’s proven oil reserves dropped to 2,959 million stock tank barrels (mmstb) at the end of last year from around 5,000 mmstb in the early 2000s due to a lack of new discoveries. Of the reserves, 55.45 percent was depleted and 3.95 percent had not been developed.

"Therefore, Energy and Mineral Resources Minister [Ignasius] Jonan has underlined the importance of making production costs more efficient. Companies should operate efficiently so that they will be able to undertake EOR activities,” said Saleh Abdurrahman, the secretary-general of the National Energy Board (DEN).

Jakarta Post, Page-13, Monday, October 16, 2017

Blunder Saka Energy in Two Oil and Gas Blocks

Saka Energi now wants to buy back its stake in Sanga-Sanga from Pertamina.

PT Saka Energi Indonesia is being upset. Because the Block Sanga-Sanga and Block Muriah, Kepodang field that has been purchased now the status is not clear. Even rumored subsidiary of PT Perusahaan Gas Negara Tbk (PGN) is willing to buy back shares Sanga-Sanga Block because the status of the block has been given to PT Pertamina.

As is known, Saka Energy bought 26.25% stake in BP in Sanga-Sanga Block in November 2016 with a value of US $ 30 million. Within three months of the purchase, in January 2017, the Minister of Energy and Mineral Resources (EMR) Ignatius Jonan handed over 100% of the Sanga-Sanga Block to Pertamina.

Jonan's decision was in accordance with the Minister of Energy and Mineral Resources Regulation No. 30 of 2016 on Management of Working Areas of Oil and Gas which will end Samanya Contract of Work published on October 13, 2016. Thus, if you want to participate in managing Sanga-Sanga Block, Saka must buy shares Sanga -Sanga from from Pertamina.

The purchase decision at that time was questioned by the Economist and Energy Observer of Gajah Mada University (UGM), Fahmy Radhi said that Saka's move to buy BP shares in November 2016 in Sanga-Sanga Block was wrong.

"The Sanga-Sanga Block is handed over to the Government," Fahmy said.

Fahmy suspects that the purchase of BP shares in the Sanga-Sanga Block is Saka Energi's strategy to become an operator in Sanga-Sanga.

"Saka Energy's decision to buy Sanga-Sanga shares because in addition to the potential reserve is still large, Saka also still want to become an operator," he said.

Reportedly, Saka Energy has applied for a loan of US $ 285 million to buy Sanga-Sanga shares from Pertamina. Unfortunately, President Director Saka Energi Tumbur Parlindungan did not answer the question. He just said, Saka's efforts to participate in the Sanga-Sanga contract is purely to increase production.

"Saka as a joint operator with Eni through Vico in Sanga-Sanga Block is committed to increase production as we did in the first half of 2017," he said.

Tumbur also once asserted, Saka's decision to buy shares in the Sanga-Sanga Block did not bring harm to the company. Because all the risks have been calculated before doing a corporate action.

"Oil prices go up, at least, that's the advantage," he said.

Saka Energi also made a blunder in the purchase of shares in Blok Muriah, Kepodang Field in October 2014 ago. Currently Kepodang Field production is gradually down from 116 mmscfd to 80 mmscfd. Unfortunately, Tumbur did not answer the question as to why it bought 20% stake from Sunny Ridge Offshore Limited for US $ 40 million. Fahmy explained that the purchase of shares in Blok Muriah was also the fault of Saka Energy.

"Kahar Kepodang field one of the blunders by Saka Energy, the blunders must be harmful, not only for Saka, but also for the parent, PGN.

IN INDONESIA

Blunder Saka Energi di Dua Blok Migas

Saka Energi kini malah ingin membeli kembali sahamnya di Sanga-Sanga dari Pertamina.

PT Saka Energi Indonesia sedang gundah gulana. Pasalnya Blok Sanga-Sanga dan Blok Muriah, Lapangan Kepodang yang sudah dibeli kini statusnya tidak jelas. Bahkan dikabarkan anak usaha PT Perusahaan Gas Negara Tbk (PGN) itu rela membeli kembali saham Blok Sanga-Sanga karena status blok itu sudah diberikan kepada PT Pertamina.

Seperti diketahui, Saka Energi membeli 26,25% saham BP di Blok Sanga-Sanga pada November tahun 2016 dengan nilai US$ 30 juta. Berselang tiga bulan dari pembelian itu, pada Januari 2017, Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan menyerahkan 100% saham Blok Sanga-Sanga kepada Pertamina.

Keputusan Jonan itu sudah sesuai Peraturan Menteri ESDM Nomor 30 tahun 2016 tentang Pengelolaan Wilayah Kerja Minyak dan Gas Bumi yang akan berakhir Kontrak Kerja Samanya yang terbit pada 13 Oktober 2016. Dengan demikian, jika ingin ikut mengelola Blok Sanga-Sanga, Saka wajib membeli saham Sanga-Sanga dari dari Pertamina.

Keputusan pembelian saat itu sempat dipertanyakan Pengamat Ekonomi dan Energi Universitas Gajah Mada (UGM), Fahmy Radhi bilang, langkah Saka membeli saham BP pada November 2016 di Blok Sanga-Sanga kala itu adalah keputusan yang salah.

"Pasalnya Blok Sanga-Sanga malah diserahkan kepada Pemerintah," kata Fahmy.

Fahmy menduga, pembelian saham BP di Blok Sanga-Sanga merupakan siasat Saka Energi untuk menjadi operator di Sanga-Sanga. 

"Keputusan Saka Energi membeli saham Sanga-Sanga karena di samping potensi cadangan masih besar, Saka juga tetap ingin menjadi operator," katanya.

Kabarnya, Saka Energi sudah mengajukan pinjaman hingga US$ 285 juta untuk membeli lagi saham Sanga-Sanga dari Pertamina. Namun sayang, Direktur Utama Saka Energi Tumbur Parlindungan tidak menjawab soal itu. Dia hanya bilang, upaya Saka tetap ikut dalam kontrak Sanga-Sanga adalah murni untuk meningkatkan produksi. 

"Saka sebagai operator bersama dengan Eni melalui Vico di Blok Sanga-Sanga berkomitmen meningkatkan produksi seperti yang kami lakukan di semester I 2017,“ ujarnya. 

Tumbur juga pernah menegaskan, keputusan Saka membeli saham di Blok Sanga-Sanga tidak membawa kerugian bagi perusahaan tersebut. Sebab semua risiko telah dihitung sebelum melakukan sebuah aksi korporasi. 

"Harga minyak naik. Paling tidak, itu keuntungannya," katanya.

Saka Energi juga melakukan blunder dalam pembelian saham di Blok Muriah, Lapangan Kepodang pada Oktober 2014 lalu. Saat ini produksi Lapangan Kepodang berangsur turun dari 116 mmscfd menjadi 80 mmscfd. Sayangnya, Tumbur tidak menjawab pertanyaan terkait alasan saat itu membeli 20% saham dari Sunny Ridge Offshore Limited senilai US$ 40 juta. Fahmy menerangkan, pembelian saham di Blok Muriah itu juga kesalahan Saka Energi. 

"Kahar lapangan Kepodang salah satu blunder yang dilakukan Saka Energi. Berbagai blunder itu pasti merugikan, tidak hanya bagi Saka, tapi juga bagi induknya, yakni PGN.

Kontan, Page-14, Monday, October 16, 2017

Pertamina Adds Refinery Capacity

The national fuel supply (BBM) will increase. That is in line with the addition of refinery capacity ready to operate next year. Marketing Director of PT Pertamina Muchamad Lskandar said, currently stock average level reached 26 days. If possible, next year the company is ready to increase stock levels up to 30 days.

"But we also follow the demand, if the demand has not been growing fast, the stock level will not rise until 30 days," he said yesterday (15/10).

Currently, Pertamina's total refinery capacity reaches 1.046 million barrels. The figure is from six refineries. Yalkni, UPH Dumai, UP III Plaju, UP IV Cilacap, UP V Balikpapan, UP VI Balongan, and UP VII Kasim. Pertamina gasoline sales per day reached 80 thousand kiloliters.

Sales of diesel reached 60 thousand kilo liters. The details, solar PSO (public service obligation) reached 40 thousand kiloliters and non-PSO diesel 20 thousand kiloliters. New grassroots refinery (NGRR) development, among others, is in Tuban and Bontang. NGRR Tuban, which operates next year with a capacity of 100 thousand kiloliters per day.

Then, there is a Tanjung Uban refinery in Riau with a capacity of twice 20 thousand kiloliters (40 thousand kiloliters). The refinery in Wayame, Maluku, has a capacity of about 10 thousand kiloliters per day and a refinery in Bali of 5 thousand kiloliters per day.

"In addition, there are still some refineries in the area that will operate, some are small and some are big," he said.

Actually, Pertamina has plans to export diesel fuel. However, increased activity in the mining sector has caused increased demand for diesel export plans.

IN INDONESIA

Pertamina Tambah Kapasitas Kilang

Pasokan Bahan Bakar Minyak (BBM) nasional akan bertambah. Itu seiring dengan tambahan kapasitas kilang yang siap beroperasi tahun depan. Direktur Pemasaran PT Pertamina Muchamad lskandar mengatakan, saat ini level stok rata-rata mencapai 26 hari. Jika memungkinkan, tahun depan perseroan siap meningkatkan level stok hingga 30 hari. 

"Tetapi, kami juga mengikuti permintaan. Jika permintaannya belum tumbuh cepat, level stoknya belum sampai akan naik hingga 30 hari. Hanya, secara fasilitas, kami siap,” katanya kemarin (15/10).

Saat ini kapasitas total kilang Pertamina mencapai 1,046 juta barel. Angka tersebut berasal dari enam kilang. Yalkni, UPH Dumai, UP III Plaju, UP IV Cilacap, UP V Balikpapan, UP VI Balongan, dan UP VII Kasim. Penjualan gasoline Pertamina per hari mencapai 80 ribu kiloliter.

Penjualan solar mencapai 60 ribu kilo liter. Perinciannya, solar PSO (public service obligation) mencapai 40 ribu kiloliter dan solar non PSO 20 ribu kiloliter. Pembangunan kilang minyak baru (new grassroots refinery/NGRR), antara lain, ada di Tuban dan Bontang. NGRR Tuban yang beroperasi tahun depan berkapasitas 100 ribu kiloliter per hari.

Lalu, ada kilang Tanjung Uban di Riau dengan kapasitas dua kali 20 ribu kiloliter (40 ribu kiloliter). Kilang di Wayame, Maluku, memiliki kapasitas sekitar 10 ribu kiloliter per hari dan kilang di Bali 5 ribu kiloliter per hari.

"Selain itu, masih ada beberapa kilang di daerah yang akan beroperasi. Ada yang kecil dan ada yang besar," ujarnya.

Sebenarnya Pertamina memiliki rencana untuk mengekspor solar. Namun, meningkatnya aktivitas di sektor pertambangan membuat permintaan solar meningkat Rencana ekspor pun batal.

Jawa Pos, Page-7, Monday, October 16, 2017

SKK Migas Clarifies BPK's Audit

SKK Migas immediately provided clarification regarding the findings of the Supreme Audit Agency (BPK) worth US $ 1.16 billion for the calculation of oil and gas share sharing in 2015. In Summary of I / 2017 Semester Examination Results (IHPS), BPK still found cost- costs that should not be charged in the cost of oil and gas production returned by the government to the contractor (cost recovery).

In addition, BPK discovers the weaknesses of internal control and non-compliance with prevailing laws and regulations. The findings resulted in reduced non-tax state revenues (PNBP) of oil and gas from excessive cost recovery of 2015 worth US $ 956.04 million.

The state can not take advantage of tax funds worth US $ 209.25 million and the potential loss of imposition of fines or tax interest for the fiscal year 2015 worth US $ 11.45 million. Continuity of very low pressure compression rental contract or VLP compression rental service by VICO that is not covered by appropriate implementation guarantees in 2014.

Secretary of Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) Arief Handoko said that the process of clarification is still running. Based on data from SKK Migas, the total findings of US $ 1.16 billion on profit sharing calculations in 2015 amounting to US $ 542.37 million are the issuance of a change of order on the EPC-1 contract of Banyu Urip field production facility, Block Cepu.

BPK assessed that the issuance of the change of order had not been approved by SKK Migas, exceeded the maximum limit, and did not consider the contractual and commercial aspects. In addition, there are penalties for unapplied workmanship as well as imposition of estimated cost charges that are not in accordance with the contract.

Then, there are findings from SKK Migas activities that have not yet audited the cost of Deepwater Asgard ship's drill farm out to the Gulf of Mexico for US $ 266 million. No audit has been conducted, according to the BPK, causing the imposition of the cost of farm out of the vessel has not been able to be reasonably believed.

The BPK also notes receipts other than the late fines of 17 contracted contractors (KKKS), which are income tax, dividend and royalty (PBDR) interest until 2015 worth US $ 209.25 million.

BPK also notes the imposition of fees for remuneration, pension contributions, incentive bonuses, insurance and income tax expense of Foreign Workers (TKA) amounting to US $ 89.94 million. The reasons for BPK's notes are that the charges are not in accordance with Supreme Court decisions, government regulations, Minister of Finance Regulations and Working Procedures (PTK) SKK Migas.

IN INDONESIA

SKK Migas Klarifikasi Temuan BPK

SKK Migas segera memberikan klarifikasi terkait dengan temuan Badan Pemeriksa Keuangan (BPK) senilai US$ 1,16 miliar atas perhitungan bagi hasil minyak dan gas bumi pada 2015. Dalam Ikhtisar Hasil Pemeriksaan Semester (IHPS) I/2017, BPK masih menemukan adanya biaya-biaya yang tidak seharusnya dibebankan dalam biaya produksi migas yang dikembalikan oleh pemerintah kepada kontraktor (cost recovery).

Selain itu, BPK menemukan kelemahan-kelemahan pengendalian internal serta ketidakpatuhan terhadap ketentuan dan perundangan yang berlaku. Temuan itu mengakibatkan berkurangnya pendapatan negara bukan pajak (PNBP) minyak dan gas bumi dari kelebihan pembebanan cost recovery 2015 senilai US$ 956,04 juta.

Negara pun tidak bisa memanfaatkan dana pajak senilai US$ 209,25 juta dan kehilangan potensi dari pengenaan denda atau bunga pajak untuk tahun pajak 2015 senilai US$ 11,45 juta. Kelangsungan pekerjaan kontrak sewa kompresi bertekanan sangat rendah atau VLP compression rental service oleh VICO yang tidak dilindungi jaminan pelaksanaan yang sesuai pada 2014.

Sekretaris Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Arief Handoko mengatakan bahwa saat ini proses klarifikasi masih berjalan. Dari data SKK Migas mencatat total temuan sebesar US$ 1,16 miliar atas perhitungan bagi hasil pada 2015 dengan US$ 542,37 juta diantaranya merupakan penerbitan perubahan order atas kontrak EPC-1 fasilitas produksi lapangan Banyu Urip, Blok Cepu.

BPK menilai penerbitan perubahan order itu belum mendapat persetujuan SKK Migas, melebihi batas maksimal, dan tidak mempertilnbangkan aspek kontraktual dan komersial. Selain itu, terdapat denda keterlambatan pengerjaan yang belum dikenakan juga pembebanan biaya jumlah yang diperkirakan yang tidak sesuai dengan kontrak.

Kemudian, terdapat temuan dari kegiatan SKK Migas yang belum melakukan audit pembebanan biaya farm out kapal pengeboran Deepwater Asgard ke Teluk Meksiko senilai US$ 266 juta. Belum dilakukannya audit, menurut BPK, menyebabkan pembebanan biaya farm out kapal itu belum dapat diyakini kewajarannya.

BPK juga memberi catatan terhadap penerimaan selain denda keterlambatan belum dipungut dari 17 kontraktor kontrak kerja sama (KKKS), yakni berupa pajak penghasilan, bunga deviden dan royalti (PBDR) sampai 2015 senilai US$ 209,25 juta.

BPK pun memberi catatan pada pembebanan biaya atas remunerasi, iuran pensiun, bonus insentif, asuransi serta tunjangan pajak penghasilan Tenaga Kerja Asing (TKA) senilai US$ 89,94 juta. Alasan catatan BPK yakni pembebanan biaya-biaya itu tidak sesuai dengan putusan Mahkamah Agung, peraturan pemerintah, Peraturan Menteri Keuangan dan Pedoman Tata Kerja (PTK) SKK Migas.

Bisnis Indonesia, Page-30, Monday, October 16, 2017

Reviewing the Convoluted Licensing in Upstream Oil and Gas

Minister of Energy and Mineral Resources (ESDM) lgnasius Jonan predicts oil and gas lifting production by the end of 2017 will not reach the target set.

Although lifting targeting always declines every year, lifting is almost never achieved. Target lifting in 2012 is set at 950,000 barrels per day (bpd), realization reached 910,000 bpd. Likewise with the target lifting in 2017 set at 815,000 bph, realization until the end of September reached 792,000 bpd.

Indeed, the decline in world oil prices is the main factor causing the decline of Indonesian oil and gas lifting. However, the decline in oil and gas production in Indonesia has actually occurred since several years ago.

Data of SKK Migas shows that in 2003 Indonesia's oil production could still reach 1,012,900 barrels of oil per day (BOPD). Since 2003, oil production has declined steadily to an average of 762,820 BOPD in 2013. Whereas in the period 2003-2008, world oil prices still increased. In 2003 world oil prices reached US $ 35.55 per barrel, then rose to US $ 100.01 per barrel in 2008.

Based on data on declining Indonesian oil production and data on world oil price hike, it indicates that there are other factors that cause the decline of oil production in Indonesia. The factor is the decrease of investment in upstream oil and gas in Indonesia which tend to decrease. Until September 2017, the realization of upstream oil and gas investment reached 29%.

Achievement is still below the target Work Plan and Budget (RKA) which has been agreed SKK Migas. In addition to low world oil prices, complicated investment licenses in upstream oil and gas become one of the causes of the RKA targets not reaching it.

During this time, the licensing regime in upstream oil and gas is very convoluted, long and tiered. The licensing procedure involves many agencies, both at the central and at the local government level. There are about 19 central and local government agencies authorized to issue investment licenses, which are divided into four phases of activities. Survey and exploration phase there are 117 permits, development and construction phases 137 permits, production phase 109 permits, and 10 post-operative phase permits. Total investment permits in upstream oil and gas that must be passed by investors as much as 373 licensing process.

The permission of oil and gas drilling permit must be done in stages, starting from the permit of regent or mayor, governor to minister, which takes about 3 months. Meanwhile, the permission to use explosives from the police takes about 1 month.

For drilling equipment that is still imported must undergo inspection in the form of master list which takes about 3 months. If a drilling site in a protected forest area is required a permit from the forestry minister takes 2 months. Likewise with the exploration approval from the Ministry of Energy and Mineral Resources as soon as possible for 4 months.

Duration of all licensing arrangements can reach more than 1-2 years. Difficult licensing in the upstream sector of oil and gas is certainly very detrimental to investors, which ultimately losses are borne by the state.

In the use of production sharing contract (PSC), the investor's losses will be charged to the state in the cost of recovery scheme, which is allocated in the APBN. The potential losses imposed on the country are estimated to be around US $ 315 million per year. If there are 10 Cooperation Contracts (KKS) experiencing a 1-year production delay, with the production capability of each KKS around 10,000 BOPD, the potential loss of the state could reach US $ 1.58 billion (assuming world oil price of US $ 50 per barrel) or Rp 20.48 trillion per year (assuming US $ 1 is equivalent to Rp 13,000).

LICENSE REFORM

In order to minimize the potential losses and decline in oil and gas production due to the convoluted licensing, there needs to be systemic and sustainable efforts to reform licensing in upstream oil and gas. These reforms include downsizing agencies authorized to grant permits, simplify and accelerate the licensing process conducted in one roof at BKPM, while the relevant agencies simply recommend only.

Recommendations on oil and gas engineering and security aspects were issued by the Ministry of ESDM and Polri, spatial planning by local government, infrastructure aspects by the Ministry of Public Works, and environmental aspect recommendations issued by the Ministry of Environment.

The number of licenses that up to now is still 373 licensing processes should be cut into 16 licensing processes. Each phase is shortened to a maximum of four permitting processes for each phase based on defined cluster. The entire licensing process should be completed within a maximum of 3 months.

In addition, all licensing arrangements and recommendation submissions are made by SKK Migas which facilitates KKS, while licensing fees are still charged to the contractor. Facilitated by SKK Migas, the contractor can focus on survey, development and construction, and production activities. Even since the contractor has submitted a request for permit to SKK Migas, that is when the contractor is allowed to start the survey activity.

Without the regime permit reform in the upstream oil and gas sector, do not expect Indonesia's oil production to be improved. Even the lifting target set in the APBN in each year will never be achieved, as it has been so far.

IN INDONESIA

Menyoal Perizinan Berbelit di Hulu Migas

Menteri Energi dan Sumber Daya Mineral (ESDM) lgnasius Jonan memprediksi produksi siap jual (lifting) minyak dan gas pada akhir 2017 tidak akan bisa mencapai target yang ditetapkan. 

Kendati penetapan target lifting selalu menurun pada setiap tahunnya, tetapi realisasi lifting hampir tidak pernah tercapai.  Target lifting pada 2012 ditetapkan sebesar 950.000 barel per hari (bph), realisasi dicapai sebesar 910.000 bph. Begitu juga dengan target lifting pada 2017 ditetapkan sebesar 815.000 bph, realisasinya hingga akhir September baru mencapai 792.000 bph.

Memang penurunan harga minyak dunia menjadi faktor utama yang menyebabkan penurunan lifting migas Indonesia. Namun, kecenderungan penurunan produksi migas Indonesia sesungguhnya sudah terjadi sejak beberapa tahun lalu.

Data SKK Migas menunjukkan pada 2003 produksi minyak Indonesia masih bisa mencapai 1.012.900 barrel oil per day (BOPD). Sejak 2003, produksi minyak mengalami penurunan secara berkelanjutan hingga mencapai rata-rata 762.820 BOPD pada 2013. Padahal pada periode 2003-2008, harga minyak dunia masih mengalami kenaikan. Pada 2003 harga minyak dunia mencapai sebesar US$ 35,55 per barel, lalu naik menjadi US$ 100,01 per barel pada 2008.

Berdasarkan data penurunan produksi minyak Indonesia dan data kenaikan harga minyak dunia, hal itu mengindikasikan bahwa ada faktor lain yang menjadi penyebab penurunan produksi minyak di Indonesia. Faktor itu adalah adanya penurunan investasi di hulu migas di Indonesia yang cenderung mengalami penurunan. Hingga September 2017, realisasi investasi hulu migas baru mencapai 29%. 

Pencapaian itu masih di bawah target Rencana Kerja dan Anggaran (RKA) yang sudah disepakati SKK Migas. Selain rendahnya harga minyak dunia, izin investasi yang rumit di hulu migas menjadi salah satu penyebab tidak tercapainya target RKA itu.

Selama ini, rezim perizinan di hulu migas sangat berbelit, panjang dan berjenjang. Prosedur perizinan melibatkan banyak instansi, baik di pusat maupun di tingkat pemerintah daerah. Ada sekitar 19 instansi pemerintah pusat dan pemerintah daerah yang berwenang mengeluarkan izin investasi, yang dibagi dalam empat fase kegiatan. Fase survei dan eksplorasi ada 117 izin, fase pengembangan dan konstruksi 137 izin, fase produksi 109 izin, dan fase pasca operasi 10 izin. Total izin investasi di hulu migas yang harus dilewati investor sebanyak 373 proses perizinan.

Pengurusan izin prinsip pengeboran migas harus dilakukan secara berjenjang, mulai dari izin bupati atau walikota, gubernur hingga menteri, yang membutuhkan waktu sekitar 3 bulan. Sementara itu, pengurusan izin penggunaan bahan peledak dari kepolisian membutuhkan waktu sekitar 1 bulan.

Untuk peralatan pengeboran yang masih diimpor harus menjalani pemeriksaan dalam bentuk master list yang membutuhkan waktu sekitar 3 bulan. Jika lokasi pengeboran di area hutan lindung diperlukan izin dari menteri kehutanan yang membutuhkan waktu 2 bulan. Begitu juga dengan persetujuan eksplorasi dari Kementerian ESDM paling cepat selama 4 bulan.

Jangka waktu pengurusan seluruh perizinan bisa mencapai lebih dari 1-2 tahun. Sulitnya perizinan di sektor hulu migas itu tentunya sangat merugikan bagi investor, yang ujung-ujungnya kerugian itu ditanggung negara.

Dalam penggunaan Production Sharing Contract (PSC), kerugian investor itu akan dibebankan kepada negara dalam skema cost of recovery, yang dialokasikan dalam APBN. Potensi kerugian yang dibebankan kepada negara itu diperkirakan bisa mencapai sekitar US$ 315 juta per tahun. Jika terdapat 10 Kontrak Kerja Sama (KKS) yang mengalami keterlambatan produksi selama 1 tahun, dengan kemampuan produksi setiap KKS sekitar 10.000 BOPD, potensi kerugian negara bisa mencapai US$ 1,58 miliar (dengan asumsi harga minyak dunia sebesar US$ 50 per barel) atau sebesar Rp 20,48 triliun per tahun (asumsi US$ 1 setara Rp 13.000).

REFORMASI PERIZINAN

Untuk menekan potensi kerugian dan penurunan produksi migas akibat berbelitnya perizinan, perlu ada upaya sistemis dan berkelanjutan untuk reformasi perizinan di hulu migas. Reformasi tersebut meliputi perampingan instansi yang berwenang memberikan izin, penyederhanaan dan percepatan proses perizinan yang dilakukan dalam satu atap di BKPM, sedangkan instansi terkait cukup memberikan rekomendasi saja. 

Rekomendasi aspek teknik migas dan keamanan dikeluarkan oleh Kementerian ESDM dan Polri, aspek tata ruang oleh pemerintah daerah, aspek infrastruktur oleh Kementerian Pekerjaan umum, dan rekomendasi aspek lingkungan hidup dikeluarkan oleh Kementerian Lingkungan Hidup.

Jumlah perizinan yang hingga kini masih sebanyak 373 proses perizinan harus dipangkas menjadi 16 proses perizinan. Masing-masing fase dipersingkat menjadi paling banyak empat proses perizinan untuk setiap fase berdasarkan klaster ditetapkan. Seluruh proses perizinan tersebut harus dapat diselesaikan paling lama dalam 3 bulan saja.

Selain itu, seluruh pengurusan perizinan dan pengajuan rekomendasi dilakukan oleh SKK Migas yang memfasilitasi KKS, sedangkan biaya pengurusan perizinan tetap dibebankan kepada kontraktor. Dengan difasilitasi SKK Migas, kontraktor bisa fokus pada kegiatan survei, pengembangan dan konstruksi, dan produksi. Bahkan sejak kontraktor sudah mengajukan permintaan pengurusan izin ke SKK Migas, pada saat itulah kontraktor diperbolehkan untuk memulai kegiatan survei.

Tanpa adanya reformasi rezim perizinan di sektor hulu migas, jangan harap produksi minyak Indonesia akan dapat ditingkatkan. Bahkan target lifting yang ditetapkan dalam APBN pada setiap tahunnya tidak akan pernah tercapai, seperti yang terjadi selama ini.

Bisnis Indonesia, Page-2, Saturday, October 14, 2017

Margin Restriction Regulation Ready Released

The Ministry of Energy and Mineral Resources has completed a final draft minister margin restriction regulation for gas traders. Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said the draft regulation has been completed. The draft regulation stipulated a 7% margin limit for gas sellers and an 11% internal rate of return (IRR) for gas delivery companies.

In the draft of the regulation, the government will guarantee that gas traders will get an investment return of 11%. The goal is that gas traders can contribute to build gas pipeline infrastructure.

In addition to IRR, the government will set a trading margin of about 7%. Later, the new formula of gas delivery tariffs through pipes and commercial margins will be regulated in ministerial regulations on gas prices.

Meanwhile, other components that are also regulated in the regulation is the existing economic life of existing distribution pipelines and new pipes 15 years. In addition, the volume of gas used in accordance with the allocation or 60% of the initial design capacity of the larger distribution pipeline. As for the commercial margin calculation, it will be determined that the commercial trade margin is less than or equal to 7% and the price of upstream gas.

The 7% assumption also includes commodity management costs, marketing and customer management costs, risk costs and trading margins. When gas distribution through two commercial business entities is facilitated to reach the final consumer, the commercial cost of 7% is divided into the two business entities. This formula has actually existed since the meeting held in March 2017.

PREPARE SANCTIONS

In addition to the draft of the Ministerial Regulation, the government prepares sanctions in the form of two written warnings, written termination as well as revocation of business license and cancellation of allocation and utilization of gas. Sanctions shall be granted if the business actor violates all the provisions stipulated in the Minister Regulation concerning Downstream Gas Price. The impact of sanctions becomes a burden that is borne by the Business Entity.

"The Ministerial Regulation has finished," he said at the Ministry of Energy and Mineral Resources, Friday (13/10). On the same occasion, Head of Communication, Information and Cooperation Bureau of Ministry of Energy and Mineral Resources, Dadan Kusdiana said that the draft regulation has not been signed by the Minister of Energy and Mineral Resources, Jonathan.

Now, the design is still in the synchronization stage in the Coordinating Ministry for the Ministry of Marine Affairs. "Not signed, being synchronized at the Coordinating Minister for Maritime," he said.

IN INDONESIA

Regulasi Pembatasan Margin Siap Dirilis  

Kementerian Energi dan Sumber Daya Mineral telah menyelesaikan draf final peraturan menteri pembatasan margin bagi trader gas. Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan, rancangan regulasi itu telah selesai disusun. Dalam rancangan regulasi tersebut diatur batas margin sebesar 7% bagi penjual gas dan angka pengembalian investasi (internal rate of return/IRR) sebesar 11% bagi badan usaha pengantar gas.

Dalam materi draf regulasi itu, disebutkan pemerintah akan menjamin pedagang gas mendapat pengembalian investasi sebesar 11%. Tujuannya agar trader gas bisa turut berkontribusi membangun infrastruktur pipa gas.

Selain IRR, pemerintah pun akan menetapkan margin niaga sekitar 7%. Nantinya, formula baru tarif penghantaran gas melalui pipa dan margin niaga akan diatur dalam peraturan menteri tentang harga gas.

Adapun, komponen lain yang turut diatur dalam regulasi tersebut yakni umur keekonomian pipa distribusi yang eksisting dan pipa baru 15 tahun. Selain itu, volume gas yang digunakan sesuai dengan alokasi atau 60% dari kapasitas desain awal pipa distribusi yang lebih besar. Adapun, pada perhitungan margin niaga, akan ditetapkan bahwa margin niaga gas sebesar kurang atau sama dengan 7% dan harga gas hulu.

Asumsi 7 % itu pun telah meliputi biaya pengelolaan komoditas, biaya pemasaran dan pengelolaan pelanggan, biaya risiko dan margin niaga. Bila penyaluran gas melalui dua badan usaha niaga berfasilitas untuk mencapai konsumen akhir, biaya niaga sebesar 7% dibagi ke dua badan usaha tersebut. Formula ini sebenarnya sudah ada sejak rapat yang digelar pada Maret 2017.

SIAPKAN SANKSI

Tambahan dalam materi draf Peraturan Menteri tersebut yakni pemerintah menyiapkan sanksi berupa dua kali peringatan tertulis, penghentian tertulis juga pencabutan izin usaha serta pembatalan penetapan alokasi dan pemanfaatan gas. Sanksi diberikan apabila pelaku usaha melanggar semua ketentuan yang diatur dalam Peraturan Menteri tentang Harga Gas Hilir itu. Dampak pemberian sanksi pun menjadi beban yang turut ditanggung Badan Usaha.

“Sudah selesai Peraturan Menteri-nya,” ujarnya di Kementerian ESDM, Jumat (13/10). Dalam kesempatan yang sama, Kepala Biro Komunikasi, Layanan Informasi dan Kerja Sama Kementerian ESDM, Dadan Kusdiana mengatakan, saat ini draf regulasi belum ditandatangani Menteri ESDM lgnasius Jonan.

Adapun, kini rancangannya masih dalam tahap sinkronisasi di Kementerian Koordinator Bidang Kemaritiman. “Belum ditandatangani, sedang sinkronisasi di Menteri Koordinator Maritim,” katanya.

Bisnis Indonesia, Page-10, Saturday, October 14, 2017

Pertamina EP Supports Flow Meter Installation

The government continues the installation of flow meters as monitoring in real time production and production of ready-to-sell (lifting) of oil and gas. This time the installation was done in an oil field managed by PT Pertamina EP Asset 3 Jatibarang Field. 

    Arcandra Tahar, Deputy Minister of Energy and Mineral Resources (ESDM), said the installation of flow meters in a number of production oil fields is a step to increase accountability and transparency of petroleum production and lifting in real time.

"To the implementer of the installation of flow meter and all involved, I advise to be careful running this program because this budget comes from the state budget that will be accounted for its implementation," said Arcandra in the release, Friday (13/10).

Nanang Abdul Manaf, President Director of PT Pertamina EP, said that Pertamina EP strongly supports this monitoring system because in addition to supporting the national oil calculation it also supports the company's performance to be better.

"This facilitates the monitoring of Pertamina EP and Oil and Natural Gas Mining and Oil & Gas Directorate's performance as well as assisting the performance of KKKS that can support national oil calculations," Nanang said.

Currently, the ESDM Ministry has identified as many as 200 fields of oil and gas blocks that will be fitted with flow meters.

IN INDONESIA

Pertamina EP Mendukung Pemasangan Flow Meter

Pemerintah melanjutkan pemasangan flow meter sebagai monitoring secara real time produksi dan produksi siap jual (lifting) migas. Kali ini pemasangan dilakukan di lapangan minyak yang dikelola oleh PT Pertamina EP Asset 3 Jatibarang Field. 

     Arcandra Tahar, Wakil Menteri Energi dan Sumber Daya Mineral (ESDM), bilang, pemasangan flow meter di sejumlah lapangan minyak produksi merupakan langkah meningkatkan akuntabilitas dan transparansi terhadap produksi dan lifting minyak bumi secara real time.

"Kepada pelaksana pemasangan flow meter dan semua yang terlibat, saya berpesan agar berhati-hati menjalankan program ini karena ini anggarannya berasal dari APBN yang akan dipertanggungjawabkan pelaksanaannya," kata Arcandra dalam rilisnya, Jumat (13/10).

Nanang Abdul Manaf, Direktur Utama PT Pertamina EP mengatakan, Pertamina EP sangat mendukung sistem monitoring ini karena selain bisa mendukung perhitungan minyak nasional juga turut mendukung kinerja perusahaan agar menjadi lebih baik.

"Ini mempermudah pengawasan kinerja Pertamina EP dan SKK Migas dan Dirjen Migas Kementerian ESDM serta membantu kinerja KKKS yang dapat mendukung perhitungan minyak nasional," kata Nanang. 

Saat ini, Kementerian ESDM sudah mengidentifikasi sebanyak 200 lapangan blok migas yang akan dipasangi flow meter.

Kontan, Page-14, Saturday, October 14, 2017