Jakarta,ruangenergi.com – Publish background Decree of the Minister of Energy and Mineral Resources Number 223.K/MG.01/MEM.M/2022 Regarding the Implementation of Provisions for Participating Interest Offers 10% (Ten Percent) To Regional-Owned Enterprises in Oil and Gas Working Areas, there is concern from the Indonesia Petroleum Association (IPA) and concern from the Regional Government (Pemda) in Indonesia.
This was stated by the Director General of Oil and Gas at the Ministry of Energy and Resources Mineral Tutuka Ariadji in a casual chat with ruangenergi.com, directly in his office, Friday (16/09/2022) in Jakarta.
Tutuka exposes, concern IPA i.e. want legal certainty that a cooperation contract (KKS) for which there is no obligation to offer a 10% PI or for which there has been an official rejection from the BUMD is not obliged to offer a 10% PI.
Then, KKS retroactive with a 10% PI obligation & the offer has not been completed, you can continue as long as it applies point forward and kept whole for the economy.
Whereas concern Local governments are experiencing a lot of PI bidding processes 10% are hampered because KKKS are not willing to offer 10% PI or stall the process .
Regions request that arrangements be made regarding sanctions for KKKS and the time more assertive.
As for the substance of the Ministerial Decree PI 10% , continued Tutuka, the following attachments are explanations / affirmations / elaboration of several articles in Ministerial Regulation 37 of 2016 and are references for units within the Ministry of Energy and Mineral Resources, SKK Migas, BPMA, Regional Governments, KKKS and BUMD in bid processing and evaluation 10% PI approval request.
Then, SKK Migas and BPMA supervise and control the offer or implementation of the 10% PI. In the event that based on supervision and control there are conditions that cause delays or failure to carry out the bidding process or implementation of the 10% PI, SKK Migas or BPMA shall provide recommendations to the Minister in the form of proposals for settlement actions or sanction.
Tutuka explains, PI 10% still in progress there are 62 Regions Work (WK). Total PI 10% with problems : 52 WK. Total PI 10% that is not problematic : 10 WK
- RETROACTIVE KKS 27 WK :
- KKS signing & approval of POD I BEFORE Permen 37/2016 : 21 WK
- Signing KKS was transferred to management BEFORE Permen 37/2016 : 6 WK
- NON-RETROACTIVE KKS proceeds 35 WK :</span >
- Signing KKS Management Transfer/Extension after Permen 37/2016 : 19 WK
- KKS before Permen 37/2016 but POD I Approval after the issuance of Ministerial Regulation 37/2016 : 13 WK
- Amendments KKS / KKS Changes and Restatements & POD I approval after the issuance of Ministerial Regulation 37/2016: 3 WK,” explained Tutuka to ruangenergi.com.
Tutuka explains, regarding additional time for setting up and appointing BUMD in 10% PI offer, that’s a total of 23 WK.
“Additional Time for Setup and Appointment of BUMD in 10% PI Offer
(Article 8 of the Minister of Energy and Mineral Resources No. 37/2016) Preparation and appointment of BUMD that exceeds a period of 1 (one) year the following provisions apply:
- For BUMD setup and designation has passed a period of 1 (one) year from the date of receipt of the letter from the Head of SKK Migas or BPMA to the Governor, an additional period of 60 (sixty) calendar days is given from the issuance of this Ministerial Decree for the Governor to appoint BUMD accompanied by complete documents. >
- In case the Governor has not been able to appoint BUMD and complete the documents as referred to in number 1 due to problems outside of administrative matters, the Governor may apply for an extension of the period of 60 (sixty) calendar days.
- Against the timeframe referred to in number 1 and number 2, the Governor may apply for an extension of the time period to SKK Migas or BPMA for 1 (one) extension of a maximum of 60 (sixty) calendar days to complete the completeness of the documents.</li >
- If within the timeframe specified in number 1 and number 2 the Governor is unable to fulfill the said obligations, then the 10% PI offer to BUMD is declared closed, “explained Tutuka again.
For a field whose area is partially within 12 nautical miles (there are 2 WK) then the terms of the 10% PI offer policy, then in the case at:
- Field that has received approval for the first field development plan; or
- Pieces recognized as existing fields in the extension or transfer of the Cooperation Contract managed, there are some areas that are above 12 (twelve) nautical miles, then the 10% PI offer can be directly given to the Governor whose administrative area covers part of the area below 12 (twelve) nautical miles.</li >
Terms of execution of 10% PI offer to BUMD that existed before EMR Ministerial Decree No. 37/2016 and which 10% PI offer has not been implemented, in which a total of 27 Retroactive CAs, to the Contractor :
- Which has received approval for the first field development plan (POD I ) prior to the issuance of the Minister of Energy and Mineral Resources No. 37/2016; or
- The Cooperation Contract extension or transfer of management has been effective prior to the issuance of the Minister of Energy and Mineral Resources No. 37/2016, in which the Cooperation Contract contains provisions regarding the offer of 10% PI and has not the offer is carried out to BUMD, the following conditions apply:
- Contractors are required to offer 10% PI with a point forward calculation concept to BUMD according to MEMR Regulation No 37/2016, within a period of no later than 60 (sixty) calendar days as of the stipulation of this Ministerial Decree.
- In the event that the Contractor experiences economic decline as a result of implementing the 10% PI offer, the Contractor may submit a request for improvement provisions in the Cooperation Contract to the Minister through SKK Migas or BPMA within a period of no later than 60 (sixty) calendar days since this Ministerial Decree is stipulated.
- A request for improvement of the provisions in the Cooperation Contract is submitted by attaching the results of the evaluation of the economic impact of the 10% PI offer and the proposal for improving the provisions of the Contract Cooperation needed to maintain the economic integrity of the Contractor to be the same as before the 10% PI entered.
- After the Minister’s decision on improving the provisions in the Cooperation Contract as referred to in letter b, the Contractor is obliged to offer 10% PI to BUMD in accordance with the Minister of Energy and Mineral Resources No. 37/2016, within a period of no later than 60 (sixty) calendar days after the date of the SKK Migas submission letter to the Contractor based on the Minister’s decision.
- If within the period as referred to in letter a or letter d the Contractor still does not fulfill the obligation to offer 10% PI, SKK Migas or BPMA provides recommendations regarding changes to the provisions in the Cooperation Contract which will be determined by the Minister.
How about a Cooperation Contract that Not Required to Offer PI 10% ? Tutuka explained;
- Cooperation Contracts that do not regulate the existing 10% PI offer prior to the MEMR No. 37/2006, remains in effect until the expiration of the Cooperation Contract.
- To contractors who have offered 10% PI to BUMD before the issuance of this Ministerial Decree , but the BUMD has submitted a written rejection letter, the 10% PI offer to the BUMD is declared closed,” said Tutuka.
Unfinished data access process and the deadline for submitting a 10% PI transfer for applications that have not been submitted there are 8 CAs.< /p>
“For Contractors who have submitted a 10% PI offer and BUMDs that have submitted a statement of interest and ability to accept a 10% PI offer, the following provisions apply:
- Against process access (opening) data that has not been completed after the lapse of 180 (one hundred and eighty) calendar days since the submission of the statement of interest and ability, so that the parties can resolve the problem of access to (open) data within 60 (sixty) calendar days as of the stipulation of this Ministerial Decree.
- Against the process of transferring PI 10% (farm in farm out) which has not been submitted for application, so that the Contractor completes the transfer agreement of PI 10% made before a notary along with other complete documents (for Operation Agreement/JOA completed by the Parties after the approval of the transfer of the 10% PI by the Minister) and submit a request for the transfer of the 10% PI to the Minister through SKK Migas or BPMA with a maximum period of 60 (sixty) calendar days since this Ministerial Decree is stipulated. Excepted from the provisions of letter E number 1, Contractors who have submitted an offer of 10% PI based on a statement of ability to offer 10% PI to BUMD, the process will continue and the provisions in letter F will apply,” explained Tutuka. >
Supervision and control of bids or implementation of 10% PI where there are 5 CAs.
1. SKK Migas or BPMA supervises and controls the offer or implementation of the 10% PI.
2. In the event that based on the supervision and control as referred to in number 1 there are conditions that affect the continuation of operations in the Work Area, including:
1) POD revision;</em >
2) proposed improvements to the terms of the Cooperation Contract due to the implementation of the PI offer 10%;
3) proposed termination of the Cooperation Contract; and/or
4) unitization proposal,
SKK Migas or BPMA may delay the 10% PI process after receiving a written request from the Contractor and report to the Minister.
3. The postponement as referred to in number 2 is carried out until there is a decision Government on the revision of the POD, proposed improvements to the provisions of the Cooperation Contract due to implementation of the 10% PI offer, the proposed termination of the Cooperation Contract, and/or the proposed unitization.
4. In the event that based on the supervision and control as referred to in number 1, it is known that there are parties that hinder the process of data access (opening) or the request for transfer of the 10% PI as referred to in letter F number 1 and number 2, SKK Migas or BPMA shall provide recommendations to the Minister in the form of proposals for settlement actions. or sanctions,” concluded Tutuka.
Source: https://www.ruangenergi.com/ini -yes-explanation-dirjen-oil and gas-tutuka-ariadji-about-kepmen-number-223-year-2022/