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Economic and Legal Views of Depletion Premium in the Extraction of Petroleum Resources Arsegianto, Arsegianto
Indonesian Journal of International Law
Publisher : UI Scholars Hub

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Abstract

Production Sharing Contract (PSC) has become the model of contract of th upstream petroleum sector in Indonesia. Based on Act No. 22 Year 2001, the activity in oil and gas in upstream sector can run if there a cooperation contract whose it can be the production sharing contract or another form of cooperation contract, that it can bring more the profit to the state. In the management of the natural resources like oil and gas, it must have the allocation of the usage costs or depleting premium for replacing the taking of the a unit whose caused a lot of lost of the opportunity of a future natural resources, as a part of sustainable development. This article is trying to give a concept of depletion premium in a cooperation contract that can be realised by the government by the control at upstream oil and gas business, as stated in Article 33 constitution 1945.
Natural Gas as Petroleum Fuel Substitution: Analysis of Supply-Demand Projections, Infrastructures, Investments and End-User Prices Tjandranegara, Abdul Qoyum; Arsegianto, Arsegianto; Purwanto, Widodo Wahyu
Makara Journal of Technology Vol. 15, No. 1
Publisher : UI Scholars Hub

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Abstract

The petroleum fuels (PF) subsidy has long burdens the government spending, and discourages less expensive energy usage such as natural gas (NG). Exporting NG and importing the more expensive PF products cause financial losses to Indonesia. The lack of NG infrastructure is the main hurdle in maximizing domestic NG usage and so does the perception of its high investment costs burdening government spending and pushing the NG transportation cost up. This study calculates the required NG infrastructure and its investments for several levels of PF substitutions up to 2030. To balance the NG demands, the supply from each field and its corresponding infrastructures needed was calculated and optimized using non-linear programming with generalized reduced gradient method to calculate the lowest transportation cost for the consumers. The study shows with a favorable return on investments attractive to private investors, the NG prices can still be put much lower than PF prices, allowing subsidy, import and production cost savings in many sectors. Furthermore, the highest level of substitution scenario needs only US$ 2.07 billion a year investment, very low compare to the current US$ 14.17 billion a year PF and electricity subsidy.
Production Optimization for Plan of Gas Field Development Using Marginal Cost Analysis Soemardan, Suprapto; Purwanto, Widodo Wahyu; Arsegianto, Arsegianto
Makara Journal of Technology Vol. 17, No. 2
Publisher : UI Scholars Hub

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Abstract

Gas production rate is one of the most important variables affecting the feasibility plan of gas field development. It take into account reservoir characteristics, gas reserves, number of wells, production facilities, government take and market conditions. In this research, a mathematical model of gas production optimization has been developed using marginal cost analysis in determining the optimum gas production rate for economic profit, by employing the case study of Matindok Field. The results show that the optimum gas production rate is mainly affected by gas price duration and time of gas delivery. When the price of gas increases, the optimum gas production rate will increase, and then it will become closer to the maximum production rate of the reservoir. Increasing the duration time of gas delivery will reduce the optimum gas production rate and increase maximum profit non-linearly.