Partnerships in oil and gas production‐sharing contracts

This study aims to determine the model of oil and gas governance in Indonesia in terms of the interests of the State to protect natural resources that should be controlled for maximum use for the prosperity of the people. This study is based on the results of normative legal studies that are descriptive. The type of data used is secondary data obtained from literature study data collection techniques, which are then analyzed by carrying out systematic interpretation of the law. Systematic means, making a classification of written legal materials, to facilitate the work of analysis and construction. The results of this study show that oil and gas management arrangements began in the Dutch colonial period and continue to change with the times up to now, specifically the regulation of upstream oil and gas. Upstream oil and gas management has changed several times, namely the Concession system, the Contract of Work system, Production Sharing Contract (PSC) and finally the Gross Split Production Sharing Contract. The emergence of Gross Split aims to improve the PSC system and improve the efficiency and effectiveness of oil and gas production sharing patterns. Even though Gross Split still has weaknesses, but when compared to the previous system, Gross Split is more in line with the country's goal of being as broad as possible for the people. Keywords: Mining; Gross Split; Welfare State.

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Success Story from Drilling Program Evaluation of Development Wells in 2018 & 2019, and How to Promote An Effective Drilling Program for 2020 and Beyond for Indonesia

Proc. Indon. Petrol. Assoc., Digital Technical Conference, 2020 ◽

10.29118/ipa20-e-45 ◽

2020 ◽

Author(s):

S. Faisal

Keyword(s):

Oil And Gas ◽

Gas Production ◽

Oil And Gas Production ◽

Actual Performance ◽

Oil Companies ◽

Drilling Performance ◽

Production Sharing ◽

Drilling Parameters ◽

Drilling Parameter ◽

Drilling Cost

There are 32 oil companies in Indonesia that will perform development drilling in 2020 with total number of development drilling plans are 395 comparison, there were 289 development wells in 2018 and 322 development wells in 2019 respectively were drilled and contributed to national oil and gas production. All development drilling activities are reported to Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) by the Production Sharing Contract (PSC) contractors in the form of spreadsheets. SKK Migas will then evaluate the development drilling performance to be used as references and for consideration in the drilling program approvals for the following year in the Work Program & Budget event. The evaluation includes important drilling parameters. During the last 3 years, SKK Migas has managed to collect data and actual report programs from all PSC’s. Based on that data, an evaluate was exercised and will be used as reference for the next development drilling program for the same PSC or other PSCs which has the similar subsurface challenges or operates in the same areas. This will therefore make a good engineering future plan and will achieve the efficiency of the drilling cost, and can be challenged to be more efficient and effective. For the future, these drilling parameter data will become as benchmark such as a cost/ft or cost/day per PSC per well which is already drilled in Indonesia. There will be more data for PSC’s when making a Plan of Development (POD) proposal from some areas which will be developed into a prospective targets for producing oil and gas, and will also enable SKK Migas to get effective calculations for the related economic issues. This paper will illustrate how SKK Migas manages development drilling program activities in Indonesia using spreadsheets. This paper also illustrates how historical data of actual performance is compared, evaluated and analyzed for future reference.

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BENTUK PERLINDUNGAN HUKUM TERHADAP KEKAYAAN MINYAK DAN GAS BUMI SEBAGAI ASET NEGARA MELALUI INSTRUMEN KONTRAK

JURNAL HUKUM DAN PERADILAN ◽

10.25216/jhp.2.3.2013.471-492 ◽

2018 ◽

Vol 2 (3) ◽

pp. 471

Author(s):

Faizal Kurniawan

Keyword(s):

Oil And Gas ◽

Gas Production ◽

The State ◽

Oil And Gas Production ◽

State Immunity ◽

Production Sharing ◽

General Welfare ◽

The Government ◽

Main Instrument ◽

Government Contract

State has the power to manage natural resources for the sake of social justice, the general welfare and are used as much as possible the greatest benefit for the greatest welfare of people. Contract law is the main instrument used to protect the state assets including oil and gas. Production Sharing Contract as a legal safeguard for oil and gas, is a fundamental pillar in the effort and utilization management activities of oil and gas. In the contracts involving the Government, called government contract, there is a unique characteristic which is not entirely subject to private law. In principle, the state should not be harmed, called as state immunity. This principle also applies universally in the interest of protecting the state assets. Keywords: Production Sharing Contract, Government Contract, State Immunity, Protection of State Assets Clause.

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