Revenues from PSC operations set to drop<\/p>\n
JAKARTA (JP): Combined gross revenues from state oil and gas
\ncompany Pertamina's production sharing contractors (PSC) are
\nlikely to drop to US$11.6 billion this year from $14.6 billion
\nlast year due to a drastic fall in oil prices, Pertamina said.<\/p>\n
Pertamina's foreign contracts division head, Gatot K.
\nWiroyudo, said Tuesday that Pertamina had initially estimated
\nthat its PSCs would generate $14.18 billion in gross revenue this
\nyear.<\/p>\n
The projection was based on an estimated output of 543 million
\nbarrels of annual crude oil and condensate and an annual output
\nof 1.86 trillion cubic feet (TCF) of natural gas.<\/p>\n
It assumed that crude oil and gas prices would average $17.19
\nper barrel and $2.57 per barrel oil equivalent (BOE) respectively
\nthis year, Gatot said.<\/p>\n
But crude oil prices have been decreasing since early this
\nyear due to an oversupply on the world market. The Organization
\nof Petroleum Exporting Countries' (OPEC) prices hit a level of
\n$11 per barrel last month.<\/p>\n
Gatot said the reduced target of $11.5 billion in gross
\nrevenue from PSCs this year was based on revised assumptions that
\ncrude oil and gas prices would average $14 per barrel and $2.12
\nper BOE respectively this year.<\/p>\n
There are currently 155 PSCs active in the oil and gas sector
\nhere.<\/p>\n
Gatot said the PSCs contributed 95 percent of the country's
\noil and condensate output of about 1.5 million barrels per day.<\/p>\n
The PSCs generated a combined gross revenue of $14.6 billion
\nlast year with a total output of 526 million barrels of petroleum
\nand condensate and 1.7 TCF of natural gas.<\/p>\n
Oil and gas prices respectively averaged $17.36 per barrel and
\n$2.87 per BOE that year.<\/p>\n
In 1996, when crude oil jumped to $20.15 per barrel and gas
\nprices to $3.04 per BOE, Indonesia's PSCs yielded a combined
\ngross revenue of $15.8 billion with a total output of 532 million
\nbarrels of crude oil and condensate and $1.6 TCF of natural gas.<\/p>\n
Under its PSC contracts, the government takes between 75
\npercent and 90 percent of net revenues (gross revenue minus
\ncosts), leaving the remainder to the contractors.<\/p>\n
Last year, the government raked in about $9 billion from its
\nPSC contracts, including taxes, down from $10 billion in 1996.<\/p>\n
Gatot said the government initially expected to collect $8.2
\nbillion from the PSCs this year, but under its revised
\nprojections its revenue would likely total $5.9 billion.<\/p>\n
Gatot said the PSCs currently employed 21,250 people,
\nincluding 800 expatriates.<\/p>\n
PSCs employed 22,161 people in 1997, including 786
\nexpatriates. In 1996, expatriates numbered 828 out of a total of
\n22,732 PSC employees. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/revenues-from-psc-operations-set-to-drop-1447893297",
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