View
213
Download
0
Category
Tags:
Preview:
Citation preview
EXECUTIVE AGENCY for UPSTREAM OIL & GAS BUSINESS ACTIVITIES (BPMIGAS) - Republic of Indonesia
Coral Triangle Initiative – Regional Business Forum 2011Kuala Lumpur, October 10th 2011
Sustainable Marine Business Solution: BPMIGAS Perspective
AGENDA
Up-stream Oil and Gas Industry: Legal Framework
BPMIGAS Roles and Function
BPMIGAS Policy on CSR: from Charity to Operational Support
Jakarta
Kuala Lumpur
Conclusion
PRODUCTION SHARING CONTRACT
STRUCTURE GOVERNANCE LAW of PRODUCTION SHARING CONTRACT
National Constitution 1945Ch.5 (1),(2),4(5)
Ps 33 (2),(3)
GR 42 of 2002 GR 35 of 2004
Law No. 22 of 2001
6
BPMIGAS Roles & ResponsibilitiesM
anag
eria
l Rol
es
To approve WP&B, POD, AFE, Procurement Plan and Human Resources Deployment Plan
To represent The Gov’t on Contractual stand position
Technical and Financial Audit
Part
ners
hip
Role
s Routine consultation
Negotiating partners on commercial deal
Responding and Tackling isues as one side front
Supp
ort s
ervi
ces
faci
litat
ors
Facilitating required authorities permits
Assist Contractors dealing with local communities
Expedite approval process
•Contractor “shall conduct an environmental baseline assessment at the beginning of CONTRACTOR’s activities”;
•Contractor “shall take the necessary precautions for protection of ecological systems, navigation and fishing and shall prevent extensive pollution of the area, sea or rivers and other as the direct result of operations undertaken under the Work Program;
•Contractor “shall after the CONTRACT expiration or termination, or relinquishment of part of the Contract Area, or abandonment of any field, remove all equipment and installations from the area in a manner acceptable to BPMIGAS and GOI, and perform all necessary site restoration activities in accordance with the applicable Government regulations to prevent hazards to human life and property of others or environment...”
INDONESIAN PRODUCTION SHARING CONTRACT on Environment Aspect (1)
INDONESIAN PRODUCTION SHARING CONTRACT on Environment Aspect (2)
•Contractor “shall include with requisite Plan of Development for each commercial discovery, an abandonment and site restoration program required after relinquishment of any part of Contract Area or abandonment of any Field together with a funding procedure for such program.......
•Contractor “shall include in the annual Budget of Operating Costs, an estimate of the anticipated abandonment and site restoration costs for each exploratory well in the Work Program...”
•Contractor “shall comply with all applicable laws of the Republic of Indonesia. It is also understood that the execution of the Work Program shall be exercised so as not to conflict with obligations imposed on GOI by international laws”
INDONESIAN PRODUCTION SHARING CONTRACT on Social Aspect
•“Contractor furnish such other funds and be responsible to conduct a community development programs relating to the community surrounding and/or adjacent of the Contract Area during the term of the Contract.“
•Contractors “shall prepare and carry out plans and programs for industrial training and education of Indonesians for all job classifications with respect to operations contemplated hereunder”.
• Contractor “shall agree to employ qualified Indonesian personnel in its operation and undertake the schooling and training of Indonesian personnel for labor and staff positions including administrative and executive management positions”
2010 © BPMIGAS – All rights reserved
Shiting Paradigm: From West to East
Deep Water Area > 200m
Western part Eastern part
Deep Water mostly in eastern part Indonesia
6 PSC’s :-StatOil
-Chevron-ExxonMobil Oil
-Marathon-Talishman Sageri
-COPHI
Mostly Tertiary
from Onshore in the West to Offshore in the East
socia
l obje
ctive
s
econ
omic objectives
environmental objectives
SustainableGrowth
Upstream oil and gas Industry Sustainable Performance
Courtesy of Novo Nordisk & WRI
GrowthEfficiencyInnovation
Shareholder value
Energy, waste & water use Emissions & climate change Design, reuse & recycle
Ecosystem integrity Biodiversity
Cultural identity Health & safety Fraud & corruption Community developmentEmpowerment & equity
Drivers & Dimensions of Business Sustainability
Business DriversLicense to OperateCost ReductionMarket GrowthNew MarketsProfitable GrowthCompetition
External ForcesEnvironmental ChangeDemographic TrendsTechnological ChangePolitical Pressure
OrganizationalLeadershipVisionValuesBusiness ModelsMeasurementChange Business
SustainabilityEconomic ValueSocial ValueEnvironmental Value
SecurityStability
Sources ofrevenues
Sources ofenergy and feedstock
CreatingSustainable Multiplier
effect
Indonesia’s Sustainable Economic Development
SHIFTING THE PARADIGM:From Revenue to Sustainable Growth
GAS
OIL
& Past approach: Maximize revenues
Current approach:
People prosperity Pro poor, pro job,
pro growth, pro environment
16
BPMIGAS BRIGHT AND GREEN INITIATIVES
BRIGHT:(1)ENERGY SUPPY FOR SURROUNDING AREAS (2)SOCIO-ECONOMIC ENLIGHTMENT & EMPOWERMENT
GREEN :(1)ENVIRONMENT PROTECTION RESTORATION(2)SOCIO-ECONOMIC BENEFIT
LICENSE to
OPERATE
BPMIGAS POLICY on CSR: from Charity to Operational Support
1. COMMUNITY DEVELOPMENT1) ECONOMY2) EDUCATION & CULTURE3) HEALTH4) SOCIAL INFRASTRUCTURE5) ENVIRONMENT
2. SOCIAL PROGRAM FOR OPERATIONAL SUPPORT1) INFRASTRUCTURE2) COMPENSATION3) LICENSE4) REGULATION
Synergy with local authorities to prevent duplication, public consensus, continuos benefit to the society, in-kind, no ideology or politic agenda
0
100
200
300
400
2005 2006 2007 2008 2009 2010
133.
1 231.
9
216.
5
261.
3
298.
4 349.
7
86.2
186.
7
169.
7
97.5
231.
1 311.
2
AnggaranRealisasi
Budget
Actual
COMMUNITY DEVELOPMENT EXPENDITURES
Mio IDR
Community Development Activities 2010
Education
Education
Economy
Health
Social Infrastructre
Environment
©2010 BPMIGAS. All rights reserved. The information consist in this document is exclusively designed and prepared for BPMIGAS’ purposes only. No part of this publication can be reproduced, stored in an information access system, used in a spreadsheet, or distributed in any format or media – electronic, mechanical, photocopy, recording, or any other form – without the written permission from BPMIGAS
21
Rupi
ah
Total: IDR 265.053.617.700 eq USD 29,450.402
32.4%
67,7%
CONCLUSION
1. BPMIGAS WILL ENCOURAGE THE PARTICIPATION OF ALL PRODUCTION SHARING CONTRACTORS OPERATING IN SURROUNDING OPERATION AREAS TO SUPPORT ANY PROJECT IN LINE WITH THE BRIGHT AND GREEN POLICY
2. BPMIGAS IS WILLING TO GET INVOLVED IN MULTI STAKEHOLDERS DIALOG OR WORKING GROUP TO SEARCH FOR SUSTAINABLE FINANCING SOURCES TO SUPPORT RELEVANT PROJECTS WITHIN THE UP-STREAM OIL AND GAS ACTIVITIES
Recommended