INDONESIAN LICENCING AND CONTRACT 2003 SYSTEM · PRODUCTION SHARING CONTRACT (PSC) 3. rd....
-
Upload
truongkhanh -
Category
Documents
-
view
223 -
download
0
Transcript of INDONESIAN LICENCING AND CONTRACT 2003 SYSTEM · PRODUCTION SHARING CONTRACT (PSC) 3. rd....
• Regulator
• Player
Player
Regulator
Supervisor
Previous New
1970 - 2001 2001 - recent
Oil and Gas New Policy
BackgroundBackground
• To help to people’s welfare by reforming in every aspect of state and national life
• Strategic resources control the livelihood of people and play an important role in the national company
• an important role in giving an actual added value to increased and sustainable national economic growth
• The previous oil and gas law is no longer suitable for development oil and gas business activities
SECTOR REFORMSECTOR REFORM
• Enactment of a new oil and gas law
• Ending Pertamina’s monopoly position and the opening up all aspects of the petroleum sector to greater competition while having Pertamina remain an important company.
• greater price transparency
• Establishment of new institution for upstream and downstream petroleum regulation
• Introduction of efficiency improvements in hydrocarbon exploration and production
GOVERNMENT DECREE
Oil and Gas Industries
Upstream
HSE Downstream
Regulatory Body
Implementing Body
State-owned Limited Liability Co
ELEMENTS OF PRODUCTION HANDLING
Production (Revenues)
Cost
Equity To Be Split
Split Sharing (Gross Income)
Tax
Domestic Market Obligation
Net Income (Pertamina/contractor)
Oil : 85/15; 88/12; 80/20; 65/35
Gas : 70/30; 65/35; 60/40
THE PRINCIPLES OF THE PSCTHE PRINCIPLES OF THE PSCBPMIGAS is Responsible For TheBPMIGAS is Responsible For The ManagemetManagemet Of The OperationsOf The OperationsContractor/operator IsContractor/operator Is RespobsibleRespobsible To BPMIGAS For The Execution Of The Operations To BPMIGAS For The Execution Of The Operations In Accordance With Agreed Work ProgramsIn Accordance With Agreed Work ProgramsContractor Provides All Financial And Technical Assistance RequiContractor Provides All Financial And Technical Assistance Required To Conduct red To Conduct Petroleum OperationsPetroleum OperationsContractor Carries The Risk Of The Operating CostContractor Carries The Risk Of The Operating CostContractor Shall Recover All Operating Cost After Commercial ProContractor Shall Recover All Operating Cost After Commercial ProductionductionThe Remaining Production After Deductions Of Operating Costs RecThe Remaining Production After Deductions Of Operating Costs Recovery Is Shared overy Is Shared Between BPMIGAS And ContractorBetween BPMIGAS And ContractorThe Contractor Allows 6 To 10 Years For Exploration And 30 YearsThe Contractor Allows 6 To 10 Years For Exploration And 30 Years Total Term If Total Term If Commercial Production Is EstablishedCommercial Production Is EstablishedContractor Prepares Annually A Work Program And Budget Of OperatContractor Prepares Annually A Work Program And Budget Of Operating Costs To Be ing Costs To Be Agreed ByAgreed By PertaminaPertaminaAll Equipments Purchased By Contractor And For Imported EquipmenAll Equipments Purchased By Contractor And For Imported Equipments When Landed ts When Landed In Indonesia Become The Property Of Government of IndonesiaIn Indonesia Become The Property Of Government of IndonesiaBPMIGAS has Title To All DataBPMIGAS has Title To All Data AbtainedAbtained From The OperationsFrom The OperationsContractor Is Subject To Pay Indonesian Income Taxes And BPMIGASContractor Is Subject To Pay Indonesian Income Taxes And BPMIGAS Will Reimburse Will Reimburse Contractor For The Other Taxes Paid In Conducting The OperationsContractor For The Other Taxes Paid In Conducting The OperationsContractor Is Obligated To Supply Indonesia’s Domestic RequiremeContractor Is Obligated To Supply Indonesia’s Domestic Requirement For Crude Oil, nt For Crude Oil, Natural Gas Called Domestic Market Obligation.Natural Gas Called Domestic Market Obligation.
PRODUCTION SHARING CONTRACTPSC STANDARD - CRUDE OIL
PRODUCTION SHARING CONTRACTPRODUCTION SHARING CONTRACTPSC STANDARD PSC STANDARD -- CRUDE OILCRUDE OIL
PRODUCTIONP
C O S TC
E T S( P - C )
CONTRACTOR26.79% (P - C)
CONTRACTOR TAKE15% (P - C)
INDONESIA73.21% (P - C)
INDONESIA TAKE85% (P - C)
TAX 44%11.79% (P - C)
+
NOTE(1) P = GROSS PRODUCTION
C = COSTETS = EQUITY TO BE SPLIT
(2) PERTAMINA RETENTION(BEFORE TAX) = 5% OF ETS
PRODUCTION SHARING CONTRACTPSC STANDARD - NATURAL GAS
PRODUCTION SHARING CONTRACTPRODUCTION SHARING CONTRACTPSC STANDARD PSC STANDARD -- NATURAL GASNATURAL GAS
PRODUCTIONP
C O S TC
E T S( P - C )
CONTRACTOR53.58 % (P - C)
CONTRACTOR TAKE30 % (P - C)
INDONESIA46.42 % (P - C)
INDONESIA TAKE70 % (P - C)
TAX 44%23.57 % (P - C)
+
NOTE(1) P = GROSS PRODUCTION
C = COSTETS = EQUITY TO BE SPLIT
(2) PERTAMINA RETENTION(BEFORE TAX) = 2 % OF ETS
NOTE(1) P = GROSS PRODUCTION
C = COSTETS = EQUITY TO BE SPLIT
(2) PERTAMINA RETENTION(BEFORE TAX) = 2 % OF ETS
PRODUCTION SHARING CONTRACTPRODUCTION SHARING CONTRACTFIRST TRANCHE PETROLEUMFIRST TRANCHE PETROLEUM--CRUDE OILCRUDE OIL
PRODUCTIONPRODUCTION(P)(P)
INDONESIAINDONESIA73.21% (80% P73.21% (80% P--C)C)
CONTRACTORCONTRACTOR26.79 % (80% P)26.79 % (80% P)
CONTRACTORCONTRACTOR15% (80% P15% (80% P--C)C)
FTP = 20 %FTP = 20 %(20 % P)(20 % P)
P P -- FTP = 20 %FTP = 20 %(80 % P)(80 % P)
INDONESIAINDONESIA73.21 % (20 %P)73.21 % (20 %P)
INDONESIAINDONESIA14.6% P14.6% P
INDONESIA INCOMEINDONESIA INCOME17.0% P + 85% (80% P17.0% P + 85% (80% P--C) = 85% (PC) = 85% (P--C)C)
CONTRACTORCONTRACTOR26.79 % (20% P)26.79 % (20% P)
CONTRACTORCONTRACTOR5.36% P5.36% P
TAX 48 %TAX 48 %2.3% P2.3% P
COSTCOST(c)(c)
E T SE T S80% P80% P--CC
TAX 44 %TAX 44 %11.79% (80% P11.79% (80% P--C)C)
CONTRACTOR INCOMECONTRACTOR INCOME3.0% P + 15% (80% p3.0% P + 15% (80% p--C) = 15 (PC) = 15 (P--C)C)
++++
++
CONTRACTORCONTRACTOR3.0 %3.0 %
PRODUCTION SHARING CONTRACT (PSC) 1st GENERATION : 1964 - 1977
Pertamina Holds The Management Of The OperationsNon-interest Bearing Fund Provided By The ContractorCost Recovery Cap : 40%Of The 60% Balance Shall Be Shared :
- Pertamina : 65%- Contractor : 35%
Pertamina Shall Pay The Contractor’s Indonesia Income Tax To The Government
25% Of The25% Of The Contracttor’sContracttor’s Share Is For Domestic Market Obligation (DMO) Valued At Us$ 0.2Share Is For Domestic Market Obligation (DMO) Valued At Us$ 0.20/bbl0/bbl
All Physical Assets Purchased By The Contractor BecomeAll Physical Assets Purchased By The Contractor Become Pertamina’sPertamina’s PropertyProperty
10% Of Participating Interest Eligible For An Indonesian Company10% Of Participating Interest Eligible For An Indonesian Company In The Early Commercial Field DevelopmentIn The Early Commercial Field Development
From 1974 Up To 1977, Contractor Shall Be Obliged To Pay An AddiFrom 1974 Up To 1977, Contractor Shall Be Obliged To Pay An Additional Cash Payment To The Governmenttional Cash Payment To The Government
PRODUCTION SHARING CONTRACT(PSC)
2nd GENERATION : 1978-1987
Changes As Compared To The 1st Generation PSC
No Cost Recovery Cap
Split Sharing After Cost Recovery Is :Oil : 65.91% / 34.09% (Pertamina/contractor)Gas : 31.80% / 68.20% (Pertamina/contractor)
Contractor Pays 56% Tax To The Government
Net Income (After Tax) :
• Oil : Indonesia/contractor = 85/15
• Gas : Indonesia/contractor = 70/30
Contractor Gets Incentives :
• Full Export Price For Dmo Over The Initial 5 Years Of Production
• Investment Credit Of 20% Of Capital Expenditures For Production Facilities
PRODUCTION SHARING CONTRACT (PSC)3rd GENERATION 1988 - CURRENT
PRODUCTION SHARING CONTRACT (PSC)PRODUCTION SHARING CONTRACT (PSC)33rdrd GENERATION 1988 GENERATION 1988 -- CURRENTCURRENT
InvestmentInvestmentCreditCredit
CommercialityCommerciality
DMO PriceDMO Price
First Trances Petroleum (FTP)First Trances Petroleum (FTP)
Condition That The Government Has To Obtain In Condition That The Government Has To Obtain In Minimum Of 49 % Of The Gross Revenue Not Valid Minimum Of 49 % Of The Gross Revenue Not Valid Anymore.Anymore.
25 % Minimum Guarantee Of The Gross Revenue For 25 % Minimum Guarantee Of The Gross Revenue For The Government Is Not Required.The Government Is Not Required.
10 % Of The Export Price After The First Five Year’s 10 % Of The Export Price After The First Five Year’s Production.Production.
20 % Of Production To Be Shared First Between 20 % Of Production To Be Shared First Between PertaminaPertamina And Contractor.And Contractor.
A. INCENTIVES PACKAGE SEPTEMBER 23, 1988A.A. INCENTIVES PACKAGE SEPTEMBER 23, 1988INCENTIVES PACKAGE SEPTEMBER 23, 1988
B. INCENTIVES PACKAGE FEBRUARY 23, 1989B.B. INCENTIVES PACKAGE FEBRUARY 23, 1989INCENTIVES PACKAGE FEBRUARY 23, 1989
Split For Marginal Field And For TertiarySplit For Marginal Field And For TertiaryEorEorSplit For PreSplit For Pre--tertiary And Deep Sea tertiary And Deep Sea ProductionProductionInvestment Credit Deep SeaInvestment Credit Deep SeaExtension To The Six (6) Years Extension To The Six (6) Years Exploration PeriodExploration PeriodGas PricingGas PricingAccess To DataAccess To DataField Data AcquisitionField Data Acquisition
Conventional Area : 80/20Conventional Area : 80/20Frontier Area : 75/25Frontier Area : 75/25Incremental Split For Frontier Production (See A)Incremental Split For Frontier Production (See A)110 % (Oil) And 55 % (Gas)110 % (Oil) And 55 % (Gas)1 X 4 Years1 X 4 YearsOriented To Wards Field Development EconomicsOriented To Wards Field Development EconomicsNot Restricted To Areas Opened For BiddingNot Restricted To Areas Opened For BiddingWill Be Conducted ByWill Be Conducted By PertaminaPertamina And Will Be Available To And Will Be Available To Contractors. Contractors.
InvestmentInvestmentCreditCredit
DMO PriceDMO Price
SplitSplit
Development Area:Development Area:•• Pre Pre –– Tertiary Reservoir Rocks = 110% for oil and gasTertiary Reservoir Rocks = 110% for oil and gas•• Water deep of 200 Water deep of 200 –– 1500 m = 110% for Oil and Gas1500 m = 110% for Oil and Gas•• Water deep > 1500 m = 125% for Oil and GasWater deep > 1500 m = 125% for Oil and Gas
15 % of The Export Price After The First Five Year’s 15 % of The Export Price After The First Five Year’s ProductionProduction
For Oil:For Oil:•• Field developed in the frontier areas = 80% : 20%Field developed in the frontier areas = 80% : 20%•• Field developed in water depth > 1500 m = 75% : 25% Field developed in water depth > 1500 m = 75% : 25% For Gas:For Gas:•• Field developed in conventional areas = 65% : 35%Field developed in conventional areas = 65% : 35%•• Field developed in the frontier areas = 60% : 40%Field developed in the frontier areas = 60% : 40%•• Field developed in water depth > 1500 m = 55% : 45% Field developed in water depth > 1500 m = 55% : 45%
C. INCENTIVES PACKAGE AUGUST, 1992C.C. INCENTIVES PACKAGE AUGUST, 1992INCENTIVES PACKAGE AUGUST, 1992
D. INCENTIVES PACKAGE DECEMBER, 1993D.D. INCENTIVES PACKAGE DECEMBER, 1993INCENTIVES PACKAGE DECEMBER, 1993DMO PriceDMO Price
First First Tranche Tranche Petroleum (FTP)Petroleum (FTP)
SplitSplit
25 % of The Export Price After The First Five Year’s25 % of The Export Price After The First Five Year’s
15% of Production taken before deduction of cost recovery 15% of Production taken before deduction of cost recovery and will be split between government and contractorand will be split between government and contractor
For Oil : 65% : 35%For Oil : 65% : 35%For Gas : 60% : 40%For Gas : 60% : 40%*) For eastern Indonesia areas and part of western Indonesia *) For eastern Indonesia areas and part of western Indonesia areas having similar geological and geophysical condition.areas having similar geological and geophysical condition.
Average Ranking For Attractive Feature of Average Ranking For Attractive Feature of Investing In Indonesia’s Oil and Gas SectorInvesting In Indonesia’s Oil and Gas Sector
0 1 2 3 4 5
Geological prospectivity
The existing PSC framework
Trained workforce
Foreign Ownership Regulatory
Contract and project approval process
Infrastructure
Regulatory framework
(1=Most attractive, 5= Least attractive)
Modified from Price Water House Coopers 2002
EXPLORATORY WELLS STATISTIC1997 - 2002
'97 '98 '99 '20 '01 '02
YEAR
020406080
100120140160
WEL
LS
0
10
20
30
40
50
60
SUC
CES
S R
ATI
O
Discovery Dry Total Wells Success Ratio (%)
Discovery 46 75 50 54 56 37Dry 54 70 39 38 39 38
Total Wells 100 145 89 92 87 75Success Ratio (%) 46 52 56 54 52 46
Tertiary Sedimentary Basins in IndonesiaTertiary Sedimentary Basins in Indonesia
-10
100 105 110 115 120 125 130 135 140
5
0
-5
Drilled basin, no discovery yetProducing Basin
Drilled and proven discovery, but not producing yet
Frontier Basin
Sedimentary Basins in Indonesia (60)
No Producing Yet (8)Producing (15)
Un-drilled (22) Drilled (38)
Discovery (23) No Discovery Yet (15)
Indonesia's Contract Sign Indonesia's Contract Sign 1961 1961 -- 20022002
0
5
10
15
20
25
30
35
Tota
l Con
trac
t
PSC-std PSC-ext JOB\JOA TAC EOR
EOR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1 1 3 1 0 0 0 0 0
TAC 3 3 2 1 2 1 1 5 3 10 6 7 3 4 1
JOB\JOA 1 1 7 6 3 0 0 0 4 4
PSC-ext 3 3 3 3 0 1 2 1 0 2 2 1
PSC-s td 1 1 1 2 5 17 8 10 3 2 4 1 5 2 1 9 9 8 13 3 2 3 2 7 3 6 9 18 4 6 1 9 7 17 15 4 1 9 1
'61 '62 '63 '64 '65 '66 '67 '6 8 '69 '70 '71 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '20 '01 '02
FLOW OF REVENUE OF INDONESIA PSC (NEW)
GROSS PRODUCTION
Investment Credit
Max. Cost Recovery : 100%
EQUITY TO BE SPLIT
FTP Max. 10%
INDONESIA SHARE
CONTRACTOR SHARE
DMO Fee
DMO Max.25%
Tax 44%
INDONESIA TAKE CONTRACTOR TAKE
Taxable Income
(+) (-)
(+)(-)
(-)(+)
(+)
(+)
(-)
(-)(+)
(-)
GROSS PRODUCTION
Investment Credit
Max. Cost Recovery : 100%
EQUITY TO BE SPLIT
FTP Max. 20%
INDONESIA SHARE
CONTRACTOR SHARE
DMO Fee
DMO Max.25%
Tax 44%
INDONESIA TAKE CONTRACTOR TAKE
Taxable Income
(+) (-)
(+)(-)
(-)(+)
(+)
(+)
(-)
(-)(+)
(-)
FLOW OF REVENUE OF INDONESIA PSC (OLD)
FLOW OF REVENUE OF INDONESIA PSC (NEW)
GROSS PRODUCTION
Investment Credit
Max. Cost Recovery : 100%
EQUITY TO BE SPLIT
FTP Max. 10%
INDONESIA SHARE
CONTRACTOR SHARE
DMO Fee
DMO Max.25%
Tax 44%
INDONESIA TAKE CONTRACTOR TAKE
Taxable Income
(+) (-)
(+)(-)
(-)(+)
(+)
(+)
(-)
(-)
(+)
(-)
DEPARTMENT OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GAS
NEW FISCAL TERM APPLIED TO THE 11 OPEN ACREAGE OFFERED
25
25
25
25
25
20
20
20
25
25
25
OIL
AFTER TAX
CONTRACTOR TAKE (%)
40
45
45
40
40
35
35
35
40
40
40
GAS
0
0
0
0
0
0
0
55
55
55
55
INVESTMENT CREDIT(Only For Gas Field
Developments)
AFTER TAX FIRST TRANCHE
PETROLEUMGASOIL
75
75
75
75
75
80
80
80
75
75
75
GOVERNMENT TAKE (%)
60
55
55
60
60
65
65
65
60
60
60
638
3,869
3,954,38
5,448
4,617
3,434
1,586
3,494
4,220
2,847
3,247
SIZE(Sq Km)
10
10
10
10
10
10
10
10
10
10
10
TARAKAN – OFFSHORE EAST KALIMANTAN
11
NORTH BALI II – OFFSHORE EAST JAVA
10
NORTH BALI I – OFFSHORE EAST JAVA
9
EAST KANGEAN –OFFSHORE EAST JAVA
8
NORTH EAST MADURA II –OFFSHORE EAST JAVA
7
NORTH EAST MADURA I –OFFSHORE EAST JAVA
6
SOUTH MADURA –OFFSHORE EAST JAVA
5
BULU – OFFSHORE NORTH CENTRAL JAVA
4
REMBANG – OFFSHORE NORTH CENTRAL JAVA
3
MERANGIN II – ONSHORE CENTRAL SUMATERA
2
MERANGIN I – ONSHORE CENTRAL SUMATERA
1
BLOCKNO
FLOW OF TENDER PROCEDUREFLOW OF TENDER PROCEDURE
Bid Evaluation
Determination ofthe Successful Bidder
Announcement Clarification ForumBid Information
• Announcement of Blocks Release, February 01, 2003
Bid Participation(submission)
• Access to Bid Information, February 17-July 21, 2003
• Pre-Tender Open Question and Answer Session (clarification forum), February 24 –July 22, 2003
• Bid Document Submission, July 31, 2003
• Contract Signing, August, 2003 Contract Signing(BPMIGAS & Contractor)
Provisional New Acreage To Be Offered 2003Provisional New Acreage To Be Offered 2003Provisional New Acreage To Be Offered 2003
THANK YOUFor further information, please contact :
Directorate General of Oil and Gas Directorate Exploration and Exploitation
Attn. Secretariat of New Working Acreage of Oil and Gas ManagementPlaza Centris, 1st and 7th Floor
Jalan HR. Rasuna Said Kav. B-5, Jakarta 12929, IndonesiaPhone : 62-21-5268963, 62-21-5268910 ext. 136, 135, 132
Facsimile : 62-21-5269129E-mail : [email protected]
Htpp : www.geomigas.com