A revised government regulation pertaining to cost recovery and taxation in the upstream oil and gas sector will be issued this week to attract more investors.
Interim energy and mineral resources minister Luhut Pandjaitan claimed that the revised regulation, which will soon be signed by President Joko “Jokowi” Widodo, will eradicate the need for upstream oil and gas companies to pay value-added tax and property tax.
Some of the largest mining companies in the world have called for companies, including those in the oil and gas industry, to stop mining in World Heritage Sites.
The International Council on Mining and Metals (ICMM), comprising 23 companies including Rio Tinto, BHP, and Anglo American, made an agreement in 2003 to stop mining in protected sites as part of their efforts to make mining more sustainable, Reuters reports, reinforcing the halt on Monday.
The government hopes the revised 2009 Mining Law permits companies that have made significant progress in smelter development to continue exporting semifinished mineral products, although miners say such a move will instead create another policy flip-flop. Prevailing law prohibited the export of unprocessed mineral ore in 2015 in hopes that it would push development of the downstream sector. However, the ban was pushed back until Jan. 11, 2017, due to complaints from the mining industry that the ban was a hasty move.
The International Council on Mining and Metals (ICMM) has released the 2015 mining safety report, with five members recording zero fatalities for the year, Codelco, Sumitiomo, Teck, Mitsubishi Material, JX Nippon.
This is the third annual report produced by ICMM, and aims to encourage information and knowledge-sharing among members in order to improve safety throughout the industry.
German shipowner Reederei NSB has chosen Marlink to deliver VSAT satellite communications across its fleet of more than 50 vessels. NSB (Niederelbe Schiffahrtsgesellschaft) has begun installing Ku-band terminals on its container ships to enhance crew welfare services and operational communications.
The government is looking to increase investment attractiveness in the upstream oil and gas industry by revising a number of regulations deemed as hampering the growth of business deals in the sector.
Oil and Gas Director General at the Energy and Natural Resources Ministry IGN Wiratmaja Puja said it is currently in the midst of revising the 2010 government regulation on taxation and cost recovery in the oil and gas industry, as well as planning to create a regulation on special incentives for activities in deep sea and remote areas.
The fact that the Saudis and Russians are exploring ways to stabilise the oil market gives some idea about the carnage being wrought on the big producers' economies by the collapse in prices.
They are the biggest producers by a wide margin and anything but natural allies; indeed their enmity is deeply rooted - but their announcement off to the side of the this weeks' G20 that they were considering engineering a production freeze in their sphere of influence has suddenly become the big driver of short term market dynamics.
The future of Indonesia’s oil and gas sector continues to look bleak with latest estimates showing oil lifting rates plunging by almost half from current levels by 2020, with no new discoveries amidst low oil prices.
Due to the continued depletion of oil reserves, ready-to-sell oil production will decline to 480,000-550,000 bopd by 2020 if no new discoveries are made, according to estimates from the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).
The government’s policy of pushing mineral resources up the value-added chain by banning metal concentrate exports seems to be trapped in yet another debacle. Despite a three-year postponement of the ban until January next year, not a single smelter has been completed.
State-owned oil and gas company Pertamina has amended a crude-processing deal with Royal Dutch Shell in order to accommodate Indonesia’s rising use of non-subsidized fuel.
In June, Pertamina appointed Shell to process 1 million barrels of crude oil every month that it purchased from Iraq. Shell will process the crude into Premium brand gasoline — subsidized fuel with a research octane number (RON) of 88 — at a Singapore refinery to minimize Indonesia’s fuel imports.
Oil and gas giant Pertamina will soon get the go-ahead from the government and oil and gas regulator to carry out early investment in the gas-rich Mahakam block next year. The government is planning to issue several legal instruments to enable Pertamina to invest in the Mahakam block before it officially takes over operation in 2018 from current operator Total E&P Indonesia.