TEKNIK PERMINYAKAN

UNIVERSITAS TRISAKTI
JAKARTA

KURSUS 4 MAHASISWA (KURMA), June 12, 2020

PSC GROSS SPLIT

AN INTRODUCTION

Syamsul Irham
PSC GROSS SPLIT - INTRODUCTION
OUTLINE

Background
Objectives
Basic Principle
Case Discussion

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PSC GROSS SPLIT - INTRODUCTION
Background

Background
Objectives
Basic Principle
Case Discussion

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PSC GROSS SPLIT - INTRODUCTION
Background

Indonesia < 50%

 worse than
neighboring
countries

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PSC GROSS SPLIT - INTRODUCTION
Background

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 3 : Data
History 2006-2016,
PNBP ↓↓↓
PPH ↓
CT ↓
CR ↑↑↑

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 3 : Data
History 2006-2016,
PNBP ↓↓↓
PPH ↓
CT ↓
CR ↑↑↑

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 3 : Data
History 2006-2016,
PNBP ↓↓↓
PPH ↓
CT ↓
CR ↑↑↑

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 3 : Data
History 2006-2016,
PNBP ↓↓↓
PPH ↓
CT ↓
CR ↑↑↑

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 3 : Data
History 2006-2016,
PNBP ↓↓↓
PPH ↓
CT ↓
CR ↑↑↑

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 3 : Data
History 2006-2016,
PNBP ↓↓↓
PPH ↓
CT ↓
CR ↑↑↑

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PSC GROSS SPLIT - INTRODUCTION
Background

Background 4 : New Paradigm

1. The price of oil and gas is determined by the
mechanism of the world market,
2. Oil and gas contractors (K3S) must manage costs well
by taking into account:
– Cost & Risk management.
– The best cost and the best technology.
– Operating costs and sunk costs (investment) must be
increasingly efficient and effective so that the upstream
oil and gas industry will always be able to face oil and
gas price conjunctions which are increasingly difficult to
predict.

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PSC GROSS SPLIT - INTRODUCTION
Objectives

Background
Objectives
Basic Principle
Case Discussion

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PSC GROSS SPLIT - INTRODUCTION
Objectives

PSC GS : The Goals

1. Encourage more effective and faster exploration and exploitation
efforts.
2. Encourage oil and gas contractors and Oil and Gas Support
Industries to be more efficient so that they are better able to deal
with oil price volatility from time to time.
3. Encouraging the Business Process of Upstream Oil and Gas
Contractors (K3S) and SKK Migas to be simpler and more
accountable. Thus the bureaucratic procurement system and the
current debate is reduced.
4. Encourage K3S to manage its operating and investment costs by
resting on the corporate financial system rather than the state
financial system.

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PSC GROSS SPLIT - INTRODUCTION
Objectives

PSC GS : State Sovereignty

Gross Split will NOT remove state control because: :
1. Determination of the work area in the hands of the
state.
2. The determination of production and lifting capacity is
determined by the state and commercial aspects of oil
and gas.
3. Production sharing are determined by the state.
4. State revenue becomes more certain.
5. Production is divided at the point of delivery.

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PSC GROSS SPLIT - INTRODUCTION
Objectives

PSC GS : The Benefits

1. Share Pain – Share Gain
2. Business risk is mitigated through an incentive split
3. Strengthening the functions of SKK Migas and focusing
more on carrying out its functions as a supervisory and
implementing body.
4. Shorten Business Processes. It will save at least 2-3 years
in the procurement process so that Early Production will
occur.
5. TKDN is required as part of incentives.
6. Guaranteeing state revenue through PNBP.

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PSC GROSS SPLIT - INTRODUCTION
Basic Principle

Background
Objectives
Basic Principle
Case Discussion

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PSC GROSS SPLIT - INTRODUCTION
Basic Principle

Kontrak bagi hasil gross

split adalah suatu kontrak
bagi hasil dalam kegiatan
usaha hulu minyak dan gas
bumi berdasarkan prinsip
pembagian gross produksi
tanpa mekanisme
pengembalian biaya
operasi

Gross split production

sharing contract is a
production sharing contract
in the upstream oil and gas
business activities based on
the principle of gross
production sharing without a
mechanism of costs recovery

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PSC GROSS SPLIT - INTRODUCTION
Basic Principle

BASE SPLIT OIL GAS

Government 57% 52%
Contractor 43% 48%

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PSC GROSS SPLIT - INTRODUCTION
Basic Principle

Non-konvensional 16%
VARIABLE 6 Kandungan CO2
1 Status Lapangan <5 0%
POD I 5% 5≤x<10 1%
POD II 3% 10≤x<20 1%
20≤x<40 2%
NO POD 0%
40≤x<60 2%
2 Lokasi Lapangan x≥60 4%
Onshore 0% 7 Kandungan H2S (ppm)
Offshore (0<h<20) 8% <100 0%
Offshore (20<h<50) 10% 100≤x<1000 1%
Offshore (50<h<150) 12% 1000≤x<2000 2%
Offshore (150<h<1000) 14% 2000≤x<3000 3%
3000≤x<4000 4%
Offshore (h>1000) 16%
x≥4000 5%
3 Kedalaman res (m) 8 SG
≤2500 0% <25 1%
>2500 1% ≥25 0%
4 Ketersediaan Infrastruktur Pendukung 9 TKDN
Well Developed 0% 30≤x<50 2%
New Frontier Offshore 2% 50≤x<70 3%
70≤x<100 4%
New Frontier Onshore 4%
10 Tahapan Produksi
5 Jenis reservoir Primer 0%
Konvensional 0% Sekunder 6%
Non-konvensional 16% Tersier 10%

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PSC GROSS SPLIT - INTRODUCTION
Basic Principle

PROGRESSIVE
1 Harga Minyak Bumi (US$/bbl)
(85-ICP)x0.25/100

2 Harga Gas Bumi (US$/MMBTU)

<7 (7-GasPrice)x2.5/100
7 s/d 10 0
>10 (10-GasPrice)x2.5/100

3 Kumulatif Produksi (MMBOE)

<30 0 10%
30≤x<60 30 9%
60≤x<90 60 8%
90≤x<125 90 6%
125≤x<175 125 4%
≥175 175 0%

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PSC GROSS SPLIT - INTRODUCTION
Basic Principle

Sharing split Sharing split

F.T.P
100 %
I.C
100 %
C.R
Sharing split Sharing split

E.T.S

F.T.P
I.C
F.T.P
C.R
Equity Share
Equity share
DMO DMO
TAX

Government Take Contractor Take

Contr Share : Subject
to Indonesian income
tax

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

Background
Objectives
Basic Principle
Case Discussion

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

• WK “XY” akan
GROSS REVENUE GROSS REVENUE
berakhir kontrak 912.80 912.80

2023. FTP GOVERNMENT FTP 20% FTP CONTRACTOR SPLIT

107.93 182.56 74.63
GOVERNMENT SHARE CONTRACTOR SHARE
COST RECOVERY 304.08 608.72
• Masih ada 258.41

investasi di tahun GOVERNMENT SHARE EQUITY TO BE SPLIT CONTRACTOR SHARE

DEDUCTABLE EXPENSES
258.41
2018 dan 2019 290.76 471.83 181.07
DMO
DMO 59.70
59.70
• CASE-1 : WK “XY” DMO FEE (15%)
DMO FEE (FULL PRICE ICP)
59.70
mengajukan 8.96
TAX 40%
perpanjangan TAX (48%) 140.12

kontrak periode 51.24

GOVERNMENT TAKE CONTRACTOR TAKE
2018 – 2031 GOVERNMENT TAKE
500.68 54.9% GR
CONTRACTOR TAKE
GR 45.1% 412.12
444.20 49% GR GR 51% 468.59

dengan pilihan
menggunakan
sistem kontrak RESULT : CT PSC-GS > CT PSC-CR
PSC-CR atau
PSC-GS

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

Case 1 (Contract Extend 2018) Case 2 (Contract Extend 2023)

• WK “XY” akan Parameter Unit PSC-CR PSC-GS PSC-CR PSC-GS CASE-2 : WK
berakhir kontrak Oil Production MMBBL 9.65 9.65 4.86 4.86 “XY”
BSCF 21.79 21.79
2023. Gas Production
TBTU 22.66 22.66
13.14
13.67
13.14
13.67
mengajukan
LPG Production MMBBL 1.48 1.48 0.89 0.89 perpanjangan
Oil Price US$/BBL 65.00 65.00 65.00 65.00
• Masih ada LPG Price US$/BBL 48.47 48.47 48.47 48.47 kontrak
investasi di tahun
Gas Price
Gross Revenue
US$/MMBTU
MUS$
9.43
912.80
9.43
912.80
9.43
487.78
9.43
487.78
periode 2023
2018 dan 2019 Expenditure MUS$ 258.41 258.41 64.84 64.84 – 2031
Capex MUS$ 128.44 128.44 N/A N/A
OPEX MUS$ 119.86 129.97 57.95 57.95
menggunakan
ASR MUS$ 10.11 10.11 6.89 6.89 sistem
• CASE-1 : WK “XY” Cost Recovery/Paid Expenses
MUS$ 258.41 258.41 64.84 64.84
kontrak PSC-
mengajukan % Cost Recovery @GR MUS$ 28.31% 28.31% 13.29% 13.29%
Contractor
CR atau PSC-
perpanjangan Cont. NCF MUS$
153.71 210.19 81.79 156.15
% Cont. NCF @GR %
16.84% 23.03% 16.77% 32.01% GS, dan tidak
kontrak periode IRR %
22.77% 38.09% N/A N/A
ada lagi
2018 – 2031 NPV at 10% MUS$
71.59 99.18 63.81 109.99
POT Year
4.40 3.87 0.00 0.00 INVESTASI
dengan pilihan Government
menggunakan Tax
Gov. Take
MUS$
MUS$
51.24
500.68
140.12
444.20
78.08
341.15
104.10
266.79
sistem kontrak % Gov. Take @GR % 54.85% 48.66% 69.94% 54.69%

PSC-CR atau
PSC-GS RESULT : Contractor Econ Indicator PSC-GS > PSC-CR

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

PRICE sensitivity to Contractor NPV

gas oil cond lpg
Year
$250.00 $/mmbtu $/bbl $/bbl $/boe
2018 6.88 65 65 48.47
$200.00
NPV, MMUSD

$150.00
$100.00 Cost Recovery
$50.00 Gross Split
$0.00
60% 80% 100% 120% 140%
Sensitivity

Price < 80% Price > 80%

GS < CR GS > CR

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

OPEX sensitivity to Contractor NPV

$150.00
PSC GS is more sensitive to opex than PSC CR
NPV, MMUSD

$100.00

$50.00 Cost Recovery

Gross Split
$0.00
60% 80% 100% 120% 140%
Sensitivity

Opex < 140% Opex > 140%

GS > CR GS < CR

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

TOTAL
Year
MM$ CAPEX sensitivity to Contractor NPV
2018 35.61
2019 85.97 $140.00
2020 4.55
2021
$120.00
NPV, MMUSD
2022 2.31 $100.00
2023
$80.00
2024
2025 $60.00 Cost Recovery
2026 $40.00
2027
$20.00 Gross Split
2028
2029 $0.00
2030
2031 60% 80% 100% 120% 140%
TOTAL 128.44
Sensitivity

Capex < 150% Capex > 140%

GS > CR GS < CR

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PSC GROSS SPLIT - INTRODUCTION
DISCUSSION

PRODUCTION sensitivity to Contractor NPV

$200.00
NPV, MMUSD

$150.00

$100.00
Cost Recovery
$50.00
Gross Split
$0.00
60% 80% 100% 120% 140%
Sensitivity

Production < 60% Production > 60%

GS < CR GS > CR

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PSC GROSS SPLIT - INTRODUCTION
References

References

1. Tahar, Archandra : Rancangan Gross Split,

Kementerian ESDM, Jakarta, 19 Januari 2017
2. Permen no.8, 16 Januari tahun 2017
3. Permen no.52, 29 Agustus tahun 2017
4. PP 53, 27 Desember tahun 2017

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I express my gratitude to IATMI and Trisakti
University for this opportunity to share my
knowledge and experiences with students
and IATMI members
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PSC GROSS SPLIT - INTRODUCTION
References

PSC GS, TAX STRUCTURE

PROFIT TAX STRUCTURE PSC GS

Corporate Tax (PPH) 25%
Dividend Tax (DT) 20%
Effective Tax Rate 40%

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PSC GROSS SPLIT - INTRODUCTION
References

PSC GS, FISCAL INCENTIVES

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