scholarly journals The Legality of Oil & Gas Production Sharing Contract Gross Split Scheme

2019 ◽  
Vol 2 (1) ◽  
pp. 29-37
Author(s):  
Fakharsyah Hanif Sugiyartomo

As an oil producing nation, Indonesia embodied its authority to manage its oil resources through article 33 paragraphs 3 of The Republic of Indonesia Constitution 1945. Regarding the article, this means that the state has the authority to manage Indonesian natural resources, directly or indirectly, through other public and/or private institutions and the profit of such activity shall be for the benefit of the people. This granted the state to appoint other institution, including a National/International Oil Company (NOC/IOC), to manage the exploration and production of oil, as that particular activity is regarded as a high risk and high capital business. In order to do so, according to Law no. 22 2001, the state may appoint a NOC/IOC through a production sharing contract. In this research, it is founded that the regulation that governed a production sharing contract with the gross split mechanism—Ministry of Energy and Mineral Resources Regulation No. 8 2017 jo. Ministry of Energy and Mineral Resources No. 52 2017—does not have a strong legal basis. In overall, the management of oil and gas through the gross split mechanism does not gives a maximum benefit for the state, and does not attract the IOC/NOC interest to explore and produce oil and gas in Indonesia. Therefore, in this paper, the reviewing of oil and gas management through a gross split mechanism is recommended. Keywords: management, gross split scheme, income taxes

BESTUUR ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 96
Author(s):  
Kirana Intaniasari

<p>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.</p><p> </p><p><strong>  </strong><strong>Keywords:</strong> Mining; Gross Split; Welfare State.</p>


2018 ◽  
Vol 15 (1) ◽  
pp. 140
Author(s):  
Cut Asmaul Husna TR

Kondisi tatanan tektonik dan geologi Aceh memiliki prospek untuk dilakukan eksplorasi dan pengembangan serta produksi Minyak dan Gas Bumi, baik di Wilayah Darat maupun di Wilayah Laut. Penemuan cadangan Minyak dan Gas baru di Aceh diharapkan dapat meningkatkan Penerimaan Negara dan Penerimaan Pemerintah Aceh dalam membangun infrastruktur dan Ketahanan Energi Aceh untuk melahirkan kembali industri-industri skala internasional. Ketentuan dalam Pasal 3 Peraturan Pemerintah Nomor 23 Tahun 2015 Tentang Pengelolaan Bersama Sumber Daya Alam Minyak dan Gas Bumi di Aceh, kewenangan pengelolaan Migas pada Wilayah Laut 12 (dua belas) sampai dengan 200 (dua ratus) mil laut yang merupakan Zona Ekonomi Eksklusif (ZEE) dikelola dan dilaksanakan Pemerintah Pusat dengan mengikutsertakan Pemerintah Aceh. Tafsir dalam 3 (tiga) Putusan Mahkamah Konstitusi No. 002/PUU-I/2003, 20/PUU-V/2007 dan Putusan Mahkamah Konstitusi No. 36/PUU-X/2012 tentang Uji Materiil Undang-Undang Nomor 22 Tahun 2001 tentang Minyak dan Gas Bumi terhadap Undang-Undang Dasar Negara Republik Indonesia Tahun 1945 bahwa penguasaan negara terhadap sumber daya alam dan cabang-cabang produksi yang penting bagi negara dan menguasai hajat hidup orang banyak dimaknai sebagai mandat yang harus dilaksanakan oleh pemerintah untuk mengadakan kebijakan (beleid), pengurusan (bestuursdaad), pengaturan (regelendaad), pengelolaan (beheersdaad), dan pengawasan (toezichthoudensdaad) untuk tujuan sebesar-besarnya kemakmuran rakyat.Conditions of tectonic and geological structure in Aceh prospect for explorating and producing Oil and Natural Gas, either in onshore or offshore. The discovery of Oil and Gas news reserved in Aceh is expected to increase the Central Government Take and Aceh Government Take to build infrastructure and Aceh’s Energy Security to regenerate industries on an international scale. The provisions in Article 3 of the Government Regulation Number 23 Year 2015 concerning Joint Management of Natural Resources Oil and Gas in Aceh, the joint management authority of Oil and Gas in Offshore 12 (twelve) to 200 (two hundreds) nautical miles of an Exclusive Economic Zone (EEZ) is managed and held by the Central Government to include the Government Aceh. Commentary within 3 (three) Decision of Constitutional Court Number 002/PUU-I/2003, 20/PUU-V/2007 and Decision of the Constitutional Court Number 36/PUU-X/2012 of Judicial Review of Law Number 22 Year 2001 concerning Oil and Gas (Oil and Gas Law) Against the 1945 Constitution of the State of the Republic of Indonesia the meaning of “controlled by the state” must be comprehended to include the meaning of a wide-ranging state occupation, as a result of the people’s sovereignty concept. The people, collectively constructed by the 1945 Constitution, provide a mandate to the state to conduct policy (beleid) and functions of administration (bestuurdaad), regulation (regelendaad), management (beheersdaad) and supervision (toezichthoudensdaad) for the greatest prosperity of the people.


2021 ◽  
Vol 2 (4) ◽  
pp. 302-309
Author(s):  
Sergej A. Moiseev ◽  
Elena V. Belova ◽  
Alevtina O. Gordeeva ◽  
Elena N. Kuznecova ◽  
Larisa N. Konstantinova

Licensing of the western regions of the Republic of Sakha (Yakutia) was considered as of 03.01.2021. 76 subsoil plots were allocated on this territory and 23 companies engaged in geological exploration, exploration and production of hydrocarbons were registered. The largest volume of exploration work was carried out by PJSC Surgutneftegas and Rosneft. In the period from 2009 to 2020, 15 oil and gas fields were discovered.


2020 ◽  
Vol 49 (4) ◽  
pp. 990
Author(s):  
Parulian Paidi Aritonang

Natural gas is a very important non-renewable natural resource that controls the lives of many people. Therefore, the exploitation and utilization of natural gas must be carried out wisely and for the greatest prosperity of the people. This is mandated in Article 33 Paragraph (3) of the 1945 Constitution of the Republic of Indonesia that "Earth, water and the natural resources contained therein are controlled by country and used for the greatest prosperity of the people". With the promulgation of Law Number 22 the Year 2001 concerning Oil and Gas, there has been restructuring in the implementation of natural gas exploitation through pipelines in Indonesia. The law provides more space for private entities to engage in gas exploitation with the purpose to create healthy competition, transparency, improving national development, efficiency in exploiting natural gas and to develop competitive price so that the end consumer can enjoy the benefits. By its implementing regulations, namely, the Regulation of the Minister of Energy and Mineral Resources Number 19 of 2009, natural gas exploitation through pipelines is carried out through an “unbundling” and “open access” mechanism.


2018 ◽  
Vol 2 (3) ◽  
pp. 471
Author(s):  
Faizal Kurniawan

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.


2020 ◽  
Vol 23 (11) ◽  
pp. 1291-1312
Author(s):  
N.V. Zyleva

Subject. This article discusses the practice of ensuring the economic security of oil and gas companies operating under the terms of production sharing agreements, where minerals are the object of security. Objectives. The article aims to justify the need to apply professional judgment in the organization of reliable accounting of minerals, explored and extracted under the terms of the production sharing agreement implementation, to avoid various risks to the entity's economic security. Methods. For the study, I used the methods of deduction and modeling. Results. The article presents proposals to arrange accounting of intangible exploration assets (geological information on mineral reserves) and finished products (the part of the extracted minerals owned by the investor and the part owned by the State). Conclusions. As strategic minerals, oil and gas are the targets of various economic risks. Professionals familiar with the specifics of accounting operations in the implementation of the production sharing agreement should be prepared to prevent these risks. The results obtained can be used to design accounting policies and develop local regulations on the tasks and functions of the economic security service of the organization implementing the production sharing agreement.


2021 ◽  
Author(s):  
I.A. Firdaus

In 2008, the first Coal Bed Methane (CBM) PSC was signed in Indonesia. To date, 54 CBM PSCs have been awarded to explore and develop CBM Block in Indonesia. Twelve years later, only one PSC has submitted a Plan of Development but has not yet produced gas commercially. Most CBM PSCs have been struggling during the 10 years’ exploration period and some may receive extensions for 3 years under specific conditions. The lack of integrated authorities’ approval in the overlay of coal mining and natural gas production areas has become a great obstacle for CBM Development. Besides that, the government regulations in CBM activities have defects in PSC contract terms that may lead marginal economic value for contractors, especially due to high investment during the early development (C. Irawan, 2017). On the other hand, drilling regulations, Pipe Classing standards and Testing Standards following the Oil and Gas standards are too expensive for CBM Investment. According to our observations, CBM Regulations in Indonesia should be modified starting from the Exploration period, Production Sharing Contract Terms and Standard Operating Procedures to suit Indonesian CBM characteristics. Good coordination within government departments is a must for the success of CBM Exploration and Development.


2017 ◽  
Vol 30 (2) ◽  
pp. 150
Author(s):  
Oman Sukmana

The domination of the state (government) and Corporate (PT LBI) in the oil and gas resource management lead Lapindo mudflow disaster that caused misery to the people. This study aims to assess the forms of domination and injustice by the state (government) and the corporation in the case of Lapindo mudflow disaster, and how Lapindo mudflow disaster victims negotiate (resist) against the state (government) and corporations in an effort to fight for their rights. This study used a qualitative approach with case study. Subjects and informantsresearch include: (1) Lapindo mudflow disaster victims; (2) group coordinator of Lapindo mudflow disaster victims; (3) Public figures Siring village, Tanggulangin, Renokenongo, Jabon, and Jatirejo, Porong district, Sidoarjo; (4) Representation of the corporation (PT. LBI); and (5) Representation of BPLS. The data collection process using the in-deepth interviews, observation, focus group discussions, and review documents. Stage processing and data analysis includes the coding process, memoing, and concept mapping. The results showed that the government (the state) and the corporation (PT LBI) action dominating the oil and gas resource management in the area of Porong district, Sidoarjo regency, East Java, resulting misery for the victims (people). Forms of injustice felt by residents Lapindo mudflow disaster victims not only related to the issue of compensation for land and building assets alone, but more than that, including various dimensions. Through a variety of collective action, such as demonstrations and negotiations, Lapindo mudflow disaster victims filed various charges, such as demands for payment of compensation for land and building assets destroyed.


Author(s):  
Latifah Latifah ◽  
A. Rinto Pudyantoro

<p>Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) is an institution established by the Government of the Republic of Indonesia through Presidential Regulation (Perpres) No. 9 of 2013 on the Management of Upstream Oil and Gas Business Activities. The task of SKK Migas is to manage the upstream oil and gas business activities based on cooperation contracts. The purpose of the establishment of this institution so that retrieval of natural resources of oil and gas owned by the State can provide maximum benefit and acceptance for the state to the greatest prosperity of the people. Based on these tasks and objectives, SKK Migas is responsible to the state and all Indonesian people to work properly, honestly, fairly, cleanly, transparently and competently in order to achieve good governance of state institutions. Therefore, internal monitoring (internal audit) and accountability of its human resources are required. This research has a purpose to test the influence of internal audit and human resource accountability to the achievement of good governance at SKK Migas institution. This research uses survey method with population of all staffs of SKK Migas. Sampling method used is sampling with purposive sampling technique. In this study, 145 samples were taken. Methods of data collection was done by using questionnaires containing several questions with the method of data analysis using multiple regression. The result of this research is to accept both hypothesis which is internal audit have positive effect toward the achievement of good governance in SKK Migas. And the accountability of human resources positively affect the achievement of good governance in SKK Migas.</p>


Author(s):  
B.M. Das ◽  
D. Dutta

Nanotechnology encompasses the science and technology of objects with sizes ranging from 1 nm to 100 nm. Today, exploration and production from conventional oil and gas wells have reached a stage of depletion. Newer technologies have been developed to address this problem. Maximum oil production at a minimum cost is currently a huge challenge. This paper reviews nanotechnology applications in the oil and gas production sector, including in the fields of exploration, drilling, production, and waste management in oil fields, as well as their environmental concerns. The paper reviews experimental observations carried out by various researchers in these fields. The effect of various nanoparticles, such as titanium oxide, magnesium oxide, zinc oxide, copper oxide, and carbon nanotubes in drilling fluids and silica nanoparticles in enhanced oil recovery, has been observed and studied. This paper gives a detailed review of the benefits of nanotechnology in oil exploration and production. The fusion of nanotechnology and petroleum technology can result in great benefits. The physics and chemistry of nanoparticles and nanostructures are very new to petroleum technology. Due to the greater risk associated with adapting new technology, nanotechnology has been slow to gain widespread acceptance in the oil and gas industries. However, the current economic conditions have become a driving force for newer technologies.


Sign in / Sign up

Export Citation Format

Share Document