PROPOSED DEEP WATER FISCAL TERM TO ATTRACT OIL AND GAS INVESTMENT IN INDONESIA
Nowadays, Indonesia are facing high demand of Energy for developing the country. <br /> <br /> <br /> Energy Consumption are increasing both for domestic and industrial purposes, while <br /> <br /> <br /> energy supply from oil and natural gas is declining du...
Saved in:
Main Author: | |
---|---|
Format: | Theses |
Language: | Indonesia |
Online Access: | https://digilib.itb.ac.id/gdl/view/22991 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Institut Teknologi Bandung |
Language: | Indonesia |
Summary: | Nowadays, Indonesia are facing high demand of Energy for developing the country. <br />
<br />
<br />
Energy Consumption are increasing both for domestic and industrial purposes, while <br />
<br />
<br />
energy supply from oil and natural gas is declining due to marginal production fields <br />
<br />
<br />
and naturally decrease rate of production, meanwhile Renewable Energy is still growing <br />
<br />
<br />
but not yet able to cover Indonesia's energy needs, it is necessary to develop new oil and <br />
<br />
<br />
gas working areas that have promising potential oil and gas. As we know that most <br />
<br />
<br />
potential Oil and gas resources are currently in the deep water (> 500m water depth) and <br />
<br />
<br />
still have a minimum of supporting infrastructure. <br />
<br />
<br />
In this study aims to provide Fiscal Term proposals in which optimal state revenues are <br />
<br />
<br />
achieved, and attractive investors to conduct Deep Water Exploration and Exploitation <br />
<br />
<br />
activities. There are four (4) Factors that it should be considered. They are Contractor <br />
<br />
<br />
Profit Split (pre-tax 80% for the contractor), Domestic Market Obligation (DMO Holiday <br />
<br />
<br />
for 10 years), Tax Holiday for 7 years) as well as providing Investment Credit by 20%. <br />
<br />
<br />
The value of each factors, will depend on the characteristics of each project is calculated. <br />
<br />
<br />
Minimum recoverable Reserve is obtained. The simulation in this research is only as a <br />
<br />
<br />
model to get a general benchmark in the development of deep water exploration. <br />
<br />
<br />
Based on the economic simulation results by including the above four factors, it is found <br />
<br />
<br />
that the world oil price is around 50 US $ (at present), it is very difficult for Investor to <br />
<br />
<br />
develop Deep-water Project. The total value of the project is negative with the highest <br />
<br />
<br />
IRR level of ~ 8%, while with world oil price in the range of 100 US $, the economics of <br />
<br />
<br />
Deep-water project is interesting with IRR reach ~ 16%. With IRR values in these two <br />
<br />
<br />
price ranges, then with oil prices ranging from 75US $, the economic value can still be <br />
<br />
<br />
positive with attractive fiscal term added. |
---|