Production Sharing Contract

Departemen Teknik Perminyakan

KontrakPerminyakandiIndonesia
KontrakperminyakandiIndonesiadimulai tahun1899disebutKonsesi,Pemerintah memungutRoyalty 1960terbitKontrakKarya. Karya Tugasutama kontraktoradalahmembayarpajak 1964KontrakBagiHasilyangdibagiadalahin kind(hasilnya)
Bab 1

Kontrak Perminyakan di Indonesia

Konsesi,KuasaTambangdanAsetdimilikiKontraktor, Manajemen j Operasi p ditangan g Kontraktor KontrakKarya,KuasaTambangditanganPemerintah danAsetdimilikiKontraktor, ,Manajemen j Operasi p ditanganKontraktor. g Hasil, ,KuasaTambang gditangan g KontrakBagi PemerintahdanAsetdimilikiPemerintah, ManajemenOperasiditanganPemerintah. Kontraktormelaksanakanpekerjaan.

Kontrak Perminyakan di Indonesia

K Kontrak t kperminyakan i k diI Indonesia d i di dimulai l id dengan KontrakKaryadankemudianpadatahun1971 diberlakukanKontrakBagiHasil. PerbedaanKontrakKaryadanKontrakBagiHasil adalahpadaKontrakBagiHasilmanajemenadadi tanganpemerintah,dimanasetiapkegiatan kontraktorharusdenganpersetujuanpemerintah. Pada P d K Kontrak t kB Bagi iH Hasil ilb berlaku l k pre,current, t dan d postaudit.PadaKontrakKaryahanyaberlakupost auditsaja. TugasutamakontraktordiKontrakKarya adalahmembayarpajak

Kontrak yang sedang berjalan

Kontrak yangakan dibahas adalah
Kontrak Bagi g Hasil (PSC), Kontrak TAC,dan Kontrak JOB.

Kontrak bagi g hasil

Revenue Recoverable Cost Inv. Credit Cost Rec. Equity to be Split. ES

Government Share (1-SH/ (1-t)) x ES

Contractor Share (SH/ (1-t)) x ES

Diff. Price DMO

Taxable Income Net Contr. Share Total Contractor Share Cost Contractor Cashflow

Government Tax

INDONESIA TAKE

Kontrak bagi hasil

Revenue

FTP
Equity to be Split. ES

Recoverable Cost Inv. Credit Cost Rec.

Government Share (1-SH/ (1-t)) x ES

Contractor Share (SH/ (1-t)) x ES

Diff. Price DMO

Taxable Income Net Contr. Share Total Contractor Share Cost Contractor Cashflow

Government Tax

INDONESIA TAKE

JOB J
Reimbursment

Gross Revenue (R)

Pertamina Share 50% FTP

Joint Share 50% R Recoverable bl C Cost t (REC) Investment Credit Equity to be Split ES Split, Cost Recovery

Prorata

Taxable Income Pertamina Tax Pertamina

60%

Indonesia Share (1-SH/ (1-T))* ES

Contractor Share (SH/ (1-T))* ES Taxable Income

Diff. Price DMO DDMO Tax INDONESIA TAKE

PERTAMINA TAKE Net Cont. Share Contractor Share TOTAL CONTRACTOR SHARE Cost Contractor Cash Flow

TAC
Non Shareable Oil (NSO)

Gross Revenue (R)

Shareable Oil (SO) FTP Recoverable Cost (REC) Investment Credit Equity to be Split, ES Cost Recovery y

Pertamina P t i Share Sh (1-SH/ (1-T))* ES

Contractor C t t Share Sh (SH/ (1-T))* ES Diff. Price DMO, DDMO Taxable Income

Taxable Income
60%

Tax Pertamina

Tax

Net Cont. Share

PERTAMINA TAKE

TOTAL CONTRACTOR SHARE Cost INDONESIA TAKE Contractor Cash Flow

Prinsip-prinsip Kontrak Production Sharing

SKSPMIGAS bertanggungjawab atas Manajemen Operasi. Kontraktor melaksanakan operasi menurut programkerja yangsudah disetujui. Kontraktor menyediakan seluruh dana dan teknologi yang dibutuhkan dalam operasi perminyakan. perminyakan Kontraktor menanggung biaya dan risiko operasi. Kontraktor akan menerima kembali seluruh biaya operasi setelah produksi komersial. Produksi yangtelah dikurangi biaya produksi,dibagi SKSPMIGASdan kontraktor. kontraktor Kontraktor diijinkan mengadakan eksplorasi selama 6 sampai 10tahun,dan eksploitasi 20tahun atau lebih (j k waktu (jangka k kontrak k k 30tahun). h ) Kontraktor mengajukan Programdan Anggaran Tahunan j SKSPMIGAS. untuk disetujui

Prinsip pp prinsip p Kontrak ProductionSharing g

Kontraktor wajib menyisihkan/mengembalikan sebagian wilayah il h kerjanya k j k d SKSPMIGAS. kepada SKSPMIGAS Seluruh barang operasi/peralatan yangdiimpor dan dibeli j milik Negara g setelah tiba di Indonesia. kontraktor menjadi SKSPMIGASmemiliki seluruh datayangdidapatkan dari operasi. Kontraktor K t kt adalah d l h Subyek S b k Pajak P j k Penghasilan, P h il dan d menyetorkannya secara langsung kepada Negara. Kontraktor wajib j memenuhi sebagian g kebutuhan minyak y dan gasbumi dalam negeri (DMO)yangdibeli negara (maksimum 25%dari bagian KPS) Kontraktor wajib mengalihkan 10%interestnya setelah produksi komersial kepada perusahaan swasta nasional yangditunjuk SKSPMIGAS.

Kontrak Production Sharing (KPS)

G Generasi i I (1964-1977) (1964 1977)
a. b. c. d d. e e. f. Manajemen j Operasi p dipegang p g g SKSPMIGAS Kontraktor menyediakan seluruh biaya operasi perminyakan Biaya yangdapat diperhitungkan kontraktor tidak lebih dari 40% Dari60%dibagi menjadi SKSPMIGAS:65% Kontraktor:35% SKSPMIGASmembayar pajak pendapatan kontraktor Pemerintah Kontraktor wajib memenuhi kebutuhan BBMuntuk dalam negeri secara proporsional (maksimum 25%bagiannya)dengan harga US$ 0,20/Barel. g. Semua peralatan dan fasilitas yangdibeli oleh kontraktor menjadi milik Negara. h. 10%dari interest kontraktor di tawarkan kepada perusahaan nasional Indonesiasetelah lapangan dinyatakan komersial. i. Sejak tahun 1974sampai 1977,kontraktor diwajibkan membayar y tambahan kepada p Pemerintah. biaya

Kontrak Production Sharing

Generasi II (1978-1988)
a. Tidak ada pembatasan pengambilan biaya operasi yang y gdiperhitungkan p g oleh kontraktor b. Setelah dikurangi biayabiaya,pembagian hasil menjadi: Minyak:65,91% 65 91%untuk SKSPMIGAS :34,09%untuk Kontraktor Gas :31,80%untuk SKSPMIGAS :68,20%untuk Kontraktor c. Kontraktor membayar pajak 56%secara langsung k d pemerintah kepada i t h

Kontrak Production Sharing

Generasi II (1978-1988)
d. Pada tahun 1984,peraturan perundangundangan pajak baru berlaku untuk KPSdengan tarif pajak 48%dan diberlakukan mulai tahun 1987, dengan demikian pembagian hasil berubah menjadi: Minyak:71,15%untuk SKSPMIGAS :28,25%untuk Kontraktor Gas :42,31% , untuk SKSPMIGAS :57,64%untuk Kontraktor e. Bagian bersih setelah dikurangi pajak: Minyak:Indonesia/Kontraktor =85/15 Gas :Indonesia/Kontraktor =70/30 f. Kontraktor mendapat insentif Harga Ekspor penuh untuk DMOsetelah limatahun pertama produksi Insentif pengembangan 20%dari modaldikeluarkan untuk fasilitas produksi.

Kontrak Production Sharing

Generasi III (1989 sekarang) Paket Insentif 31 Agustus 1988 Pemberian investmentcredit,dengan syarat bahwa pemerintah harus memperoleh 49%dari pendapatan kotor tidak berlaku lagi. Penetapan komersilitas,jaminan minimum25%dari pendapatan kotor untuk Pemerintah tidak diperlukan. Harga g DMO, ,10%dari harga g ekspor p setelah selesai 60bulan pertama. Penyisihan minyak pertama 20%dari produksi disisihkan sebelum dikurangi biaya operasi kemudian dibagi antara SKSPMIGASdan Kontraktor. Pembagian produksi daerah frontier
Sampai dengan 50MBOPD=90/10

50 150MBOPD=85/15 lebih dari 150MBOPD=90/10

Tatacara Tt perijinan iji di d h k disederhanakan

Kontrak Production Sharing g

Generasi II Th 1989Sekarang (Lanjutan) Paket P k t Insentif I tif 22Pebruari P b i 1989 Pembagian untuk lapangan marginal dan tertiary EORpada wilayah y konvensional 80/20dan wilayah y f frontier 75/25. Pembagian untuk produksi di daerah pretertiary dan laut dalam Pembagian tambahan untuk produksi di frontier (lihat 1). 1) Investmentcredit untuk laut dalam 110%minyak dan 55% gas. Perpanjangan masa eksplorasi 6tahun 1x14tahun. Harga gasdiorientasikan pada komersialitas pengembangan lapangan. lapangan Akses Datatidak terbatas pada lahan yangditenderkan Perolehan datalapangan p g dilakukan oleh SKSPMIGASdan terbuka bagi kontraktor.

FISCAL TERMS
1. 2 2. 3. 4. 5. 6. 7 7. FirstTranchePetroleum(FTP) TaxStructure SharingSplit InvestmentCredit y CostRecovery DomesticMarketObligation(DMO) Capital&NonCapitalExpenditures(Cost)

1. First Tranche Petroleum (FTP) ( )

PSC STANDARD CLAUSE : ... The Th Parties P ti shall h ll be b entitled titl d to t take t k and d receive each year 20% 20% of all Petroleum produced and saved ...before ...before any deduction for the recovery of Investment Credit and Operating Cost... Cost ...Such Such First Tranche Petroleum shall be shared between SKSPMIGAS SKSP MIGAS and CONTRACTOR in accordance with sharing splits splits... ... FTPdiffersfromRoyalty: FTPissharedbetweentheParties. FTPhasnoimpactwhenfinancialoperationrunsnormally. FTPisdesignedtoensuretheminimumincomefortheState.
Note :forthePSCsignedin2002&2003,thewholeFTPgoestoSKSP SKSPMIGAS MIGAS(Govt Govt) )

1. First Tranche Petroleum ( (FTP) )

PSCgenerasisebelum1988:untukmemperoleh komersialitas investorharusmenjaminIndonesia komersialitas, menerimaminimal49%darirevenueselamaumur lapangan. PSC19881989:FTPmenggantikansyaratminimal penerimaanpemerintah49%. FTP:Penyisihan20%dariproduksisebelumInvestment Credit&CostRecovery. CostRecoverydibebankankepadasisaproduksiyang 80%(Jadi,padadasarnyaFTPadalahsemacam pembatasanmaximumcostrecovery) p y) FTPdibagikansesuaidengansplitIndonesianSharedan ContractorShare

1. First Tranche Petroleum (FTP)

FTPdibagisesuaidengansplitIndonesianShare danContractorShare(Oil=85:15afterTaxSplit)
A B C D E F G H I Gross Revenue FTP TAX Contractor Share Indonesian Share FTP Contractor T of Tax f Contractor C t t FTP Net Contractor FTP Net Indonesian FTP 100 % 20 % 44 % 26.7857 % 73.2143 % 5.3571 % 2 3571 % 2.3571 3.0000 % A 17 0000 % A 17.0000 15% / (100-C) (100 D) (D x B) (C x F) (F G) (B H) A (20% x A)

1. First Tranche Petroleum

Cost to be Recovered Lifting, Mbbl Price $/bbl Gross Revenue Contr Split After Tax Effective Tax Rate Contractor Split (before tax) Govt Split (before tax) = 100% - G FTP, % FTP * D, Mbbl Gross Revenue after FTP Investment Credit Cost Recovery (Recoverable Cost) ETS CONTRACTOR SHARE Contr FTP Contr Equity DMO, 20% DMO fee (new oil = 100%Price)) T Taxable bl Sh Share Govt.Tax Net Contractor Share Total Contractor Take U Unrecovered dC Cost t=A A-L L Govt FTP Govt Equity Total Indonesia Take A B C D E F G H i I J K L M N O P Q R S T U V W Y Z FTP NO-FTP 10.000 10.000 1.000 1.000 20 20 20 000 20.000 20.000 20 000 15% 15% 48% 48% 0,2885 0,2885 20% 4.000 16.000 500 10.000 5.500 1.154 1 154 1.587 1.442 1.442 3 240 3.240 1.555 1.685 11.685 0 2.846 3.913 8.315 0% 0 20.000 500 10.000 9.500 0 2.740 1.442 1.442 3 240 3.240 1.555 1.685 11.685 0 0 6.760 8.315 FTP NO-FTP 20.000 20.000 1.000 1.000 20 20 20 000 20.000 20.000 20 000 15% 15% 48% 48% 0,2885 0,2885 20% 4.000 16.000 0 16.000 0 1.154 1 154 0 0 0 1 154 1.154 554 600 16.600 4 000 4.000 2.846 0 3.400 0% 0 20.000 0 20.000 0 0 0 1.442 1.442 0 0 0 20.000 0 0 0 0

IRR SENSITIVITY Sensitivity Price/Prod Op.Cost

Investment

50

70% 80% 90% 100% 110% 120% 130% 140%

a b c d e

19,0 19 0 21,0 23,0 25,0 27 0 27,0 29,0 31,0 34,0

gbr

34,0 34 0 32,0 27,0 25,0 22 0 22,0 20,0 17,0 15,0

32,0 32 0 29,0 27,0 25,0 21 0 21,0 18,0 15,0 12,0

SENSITIVITY ANALISYS

40

30
25% <MARR 125% * 2.5 84% * 1 77% * 32 tdk layak 3,125 0 84 0,84 24,64

IRR, % I
20 10

Price/Prod Investment

Op.Cost

0 70% 80% 90% 100% 110% 120% 130% 140%

SENSITIVITY, %

2. Tax Structure
ContractorshallpaytheincometaxtoGOI Excludedothertaxesandlevies
1994 30% 20% 1984 35% 20% Prior to 1984 45% 20%

INCOME TAX STRUCTURE C Corporate t Tax T (CT) Dividend Tax (DT) Taxable Income 100% Corporate Tax (CT) Dividend Tax: DT ( 100%-CT ) Effective Tax Rate

30% 14% 44%

35% 13% 48%

45% 11% 56%

1 2 3 4 5

Penghasilan Kotor FTP Penghasilan Kotor FTP Cost Recovery Equity to be Split Contractor Share

4,000,000.00 Produksi x harga 800,000.00 20 % x Ph Ph. . Kotor 3,200,000.00 1,200,000.00 1 200 000 00 2,000,000.00 No. No. 3 No No. .4

6 7 8 9 10 11 12

Contractor FTP Share C t t Equity Contractor E it Share Sh Taxable Share Corporate Tax Branch Profit Tax (Dividen Tax) Total Tax Total Net Contractor Share

214,240.00 26,78% x No. 2 535 600 00 26,78% 535,600.00 26 78% x No. N 5 749,840.00 No. 6 + No. 7 224,952.00 30% x No. 8 104,977.60 20% x (No.8No.9) 329,929.60 No.9 + No.10 419 910 40 No. 419,910.40 No 8 No. No 11

1 2 3 4 5

Penghasilan Kotor FTP Penghasilan Kotor FTP Cost Recovery Equity i to be b Split li

4,000,000.00 800,000.00 3,200,000.00 1,200,000.00 2,000,000.00

Produksi x harga 20 % x Ph Ph. . Kotor

No No. . 3 No No. .4

Contractor Share 6 7 8 9 10 11 12 Contractor FTP Share Contractor Equity Share Taxable Share Corporate p Tax Branch Profit Tax (Dividen Tax) Total Tax Total Net Contractor Share 214,240.00 535,600.00 749,840.00 224,952.00 , 104,977.60 329,929.60 419 910 40 419,910.40 26, 26,78% 78% x No No. .2 26, 26,78% 78% x No No. .5 No No. . 6 + No No. .7 30% 30% x No No. .8 20% 20% x (No (No. .8No No. .9) No No. .9 + No No. .10 No. No . 8 No No. . 11

Indonesia Share 13 14 15 16 Government FTP Share Government Equity Share Government Tax Entitlement Total Indonesia Take 585 760 00 73 585,760.00 73, ,22 22% % x No No. .2 1,464,400.00 73, 73,22% 22% x No No. .5 329,929.60 No. No. 11 2,380,089.60 No. No. 13 + 14 + 15

3. Sharing Split
SharingSplitsincludetaxcomponent SharingSplitisapplicabletoFTP,EquitytobeSplit,andDomestic MarketObligation(DMO) ContractorSplit(beforetax)=(ATS)/(1T) BPMIGASSplit(beforetax)=1 ContractorSplit
Tax Rate 56% 48% 44% 56% 48% 44% Contractor Split BPMIGAS Split (before tax) (before tax) 34.091% 28.846% 26 786% 26.786% 68.182% 57.692% 53 571% 53.571% 65.909% 71.154% 73 214% 73.214% 31.818% 42.308% 46 429% 46.429%

After Tax Split (ATS) OIL 85% / 15% GAS 70% / 30%

4. Investment Credit
PSC STANDARDCLAUSE: Contractormayrecoveraninvestmentcreditamounting to17%ofthecapitalinvestmentcostdirectlyrequired fordevelopingcrudeoilproductionfacilities facilities...of ofeach newfieldoutofdeductionfromgrossproductionbefore recoveringoperatingcost,commencingintheearliest productionYearorYearsbeforetaxdeduction(tobepaid inadvanceinsuchproductionYearwhentaken). Theinvestmentcreditmaybeappliedtonewsecondary recoveryandtertiaryrecoveryEORprojectsbutisnot applicabletointerimproductionschemesorfurther investmenttoenhanceproductionandreservoir drainageinexcessofwhatwascontemplatedinthe original i i lproject j asapproved dby b SKSPMIGAS

4. Investment Credit
Cost to be Recovered Lifting mbbl Price $/bbl Gross Revenue Contr Split After Tax Effective Tax Rate Contractor Split (before tax) Govt Split (before tax) = 1 - G FTP % FTP, FTP, 20% * D Gross Revenue after FTP Investment Credit A B C D E F G H i I J K NO IC NO-IC 10.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 0 IC 10.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 2.000 NO IC NO-IC 20.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 0 IC 20.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 100

4. Investment Credit
Perbandingan IC & NO-IC NO-IC Cost Recovery (Recoverable Cost) L 10,000 Total Recoverables M 10,000 ETS N 6,000 CONTRACTOR SHARE Contr FTP O 1,154 Contr Equity P 1,731 DMO, 20% Q 0 DMO fee (new oil = 100%Price)) R 0 Taxable Share S 2,885 Govt.Tax T 1,385 Net Contractor Share U 1,500 Total Contractor Take V 11,500 U Unrecovered dC Cost t=A A-L L W 0 Govt FTP X 2,846 Govt Equity Y 4,269 Total Indonesia Take Z 8 500 8,500 IC 10,000 12,000 4,000 1,154 1,154 1,442 1,442 4,308 2,068 2,240 12,240 0 2,846 2,846 7 760 7,760 NO-IC 16,000 16,000 0 1,154 0 0 0 1,154 554 600 16,600 4 000 4,000 2,846 0 3 400 3,400 IC 15,900 16,000 0 1,154 0 0 0 1,254 602 652 16,552 4 100 4,100 2,846 0 3 448 3,448

4. Investment Credit
Cost to be Recovered Lifting mbbl Price $/bbl Gross Revenue Contr Split After Tax Effective Tax Rate Contractor Split (before tax) Govt Split (before tax) = 1 - G FTP, % FTP, 20% * D Gross Revenue after FTP Investment Credit C tR Cost Recovery (R (Recoverable bl C Cost) t) Total Recoverables ETS CONTRACTOR SHARE Contr FTP Contr Equity DMO, 20% DMO fee (new oil = 100%Price)) Taxable Share Govt.Tax Net Contractor Share Total Contractor Take Unrecovered Cost = A-L Govt FTP Govt Equity Total Indonesia Take A B C D E F G H i I J K L M N O P Q R S T U V W X Y Z NO IC NO-IC 10.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 0 10 000 10.000 10.000 6.000 1.154 1 154 1.731 0 0 2 885 2.885 1.385 1.500 11.500 0 2.846 4.269 8.500 IC 10.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 2.000 10 000 10.000 12.000 4.000 1.154 1 154 1.154 1.442 1.442 4 308 4.308 2.068 2.240 12.240 0 2.846 2.846 7.760 NO IC NO-IC 20.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 0 16 000 16.000 16.000 0 1.154 1 154 0 0 0 1 154 1.154 554 600 16.600 4.000 2.846 0 3.400 IC 20.000 1.000 20 20.000 15% 48% 0,2885 0,7115 20% 4.000 16.000 100 15 900 15.900 16.000 0 1.154 1 154 0 0 0 1 254 1.254 602 652 16.552 4.100 2.846 0 3.448

5. COST RECOVERY
CostRecoveryadalah semua biaya operasi yangdapat dikembalikan kpd kontraktor,diambilkan dari sebagian Grossrevenue(=GrossRev FTP IC).Costrecovery merupakan bagian dari perolehan Kontraktor. Kontraktor Jika (GrossRev FTP IC)<CostRecovery,maka sisa Cost recoverydi carryoverke k tahun t h berikutnya. b ik t Untuk setiap tahun produksi komersial,CostRecovery terdiri d dari d : Currentyearnoncapitalcost Currentyeardepreciation d i i f forcapital i lcost,and d Prioryearsunrecoveredcost(carryover)

5 COST RECOVERY 5.
Oil&Gascostdipisahkan karena sharingsplitminyak dan gasadalah berbeda RecoveryOil&GasCost: Setelah produksi dinyatakan komersial,Gas Revenuetidak dibolehkan untuk fullrecoverygas cost,sebagian harus diambilkan dari OilRevenue. Begitu juga sebaliknya Jika produksi dari (salah satu saja)gassaja atau oil saja dinyatakan telah komersial,sementara yg satu lainnya belum,maka biaya dialokasikan sesuai peruntukannya.

5. COST RECOVERY NON CAPITAL COST

1. Eksploratory Survey:Tenaga kerja,material&jasa yg digunakan utk surveyudara, udara geological, geological topografi, topografi geofisika &seismik,&coring. 2 Eksploratory Drilling:Tenaga kerja, 2. kerja material&jasa yg digunakan untuk pemboran sumur2eksplorasi . 3. Other 3 Ot e Exploratory p o ato yExpenditures pe d tu es:Fasilitas2 as tas se sementara e ta a yg digunakan dlm eksplorasi &pembelian informasi G&G lainnya . 4. DevelopmentDrilling:Intangibledevelopmentdrilling, termasuk pembuatan akses jalan. 5. ProductionOperations:Tenaga kerja,material&jasa yg digunakan untuk operasi sumur,productionfacilities, operasi secrec,handling,transportasi &deliveryhasil produksi,repairs&maintenance,dll .

5. COST RECOVERY NON CAPITAL COST

6. OfficeService&GeneralAdministration:Technicalservices& relatedservices,materialservices,transportation,rentalof heavyengineeringequipment,siterental&otherrentalof services&property,personnelexpenses,publicrelations,and otherexpensesabroad. 7. OverheadAllocation/HomeOfficecharges: Overhead:determinedbyadetailedstudyapprovedby BPMIGAS,appliedconsistentlyandsubjecttoreviewby BPMIGAS&Contractor. Directcharges:identifiable.

8 Interest 8. I Recovery R :bunga b pinjaman i j dapat d direcover, di tdk dk melebihitingkatbungakomersialygwajar/umum,yg diperuntukaninvestasikapital(biasanyaproductionfacilities). D ildari Detil d irencanafinancial fi i ldicantumkan di k dalam d l annual lWP&B. WP&B

5 COST RECOVERY CAPITAL COST 5.

1 ConstructionUtilities&Auxiliaries:Workshops, 1. Workshops power&water facilities,warehouse,fieldroads&canals. Co st uct o Housing ous ga and dWelfare e a e:Housing, ous g,recreational ec eat o a 2. Construction facilities,etc. g development p drilling, g,wellhead, , 3. ProductionFacilities:Tangible flowlines,gatheringstation,treatingplant&equipment,secrec system,gasplantsandsteamsystem,deliverylines,storage platform,j jettiesandanchorages. g facilities,offshorep 4. Moveables :Drilling&productiontools,equipment& instruments,barges,aircraft,automotive,construction equipment,furniture&officeequipment,etc.

5 COST RECOVERY CAPITAL COST DEPRECIATION 5. DEPRECIATION ASSETS - GROUP 1

For the group s of c a p ita l a ssets for a ny crude oil project or natural gas projects having reserves of seven years or less, a p p ly useful lives a s follows:

Automobiles T rucks light (less than 13,000 pounds) and tractor units T rucks heavy (more than 13,000 pounds) B Buses Aircraft Construction equipment u uea and do office ce equ equipment p e Furniture

1.5 years 2.0 years 3.0 years 4 5 years 4.5 3.0 years 3.0 years 5.0 5 0 yea years s

For the groups of c apital assets for natural gas projects having reserves of more than 7 years, apply useful lives as follows:

Automobiles T rucks light (less than 13,000 pounds) and tractor units T rucks heavy (more than 13,000) and trailers

3.0 years 4.0 years 6.0 years

5 COST RECOVERY CAPITAL COST DEPRECIATION 5. DEPRECIATION ASSETS - GROUP 2

For the group s of c a p ita l a ssets for a ny crude oil project or natural gas projects having reserves of seven years or less, a p p ly useful lives a s follows:
Construc tion utilities and auxiliaries Construc tion housing and welfare Produc tion fac ilities Railroad c ars and loc omotives Vessels, barges, tugs and similar water transportation Drilling and produc tion tools, equipment & instruments 5.0 years 10.0 years 5.0 years 7 5 years 7.5 9.0 years 5.0 years

For the groups of c apital assets for natural gas projects having reserves of more than 7 years, apply useful lives as follows:
Airc raft 6.0 years Vessels barges Vessels, barges, tugs and similar water transportation 18.0 18 0 years Drilling and produc tion tools, equipment and instruments 8.0 years Construc tion equipment 6.0 years Furniture and offic e equipment 10.0 years

5 COST RECOVERY CAPITAL COST DEPRECIATION 5. DEPRECIATION ASSETS - GROUP 3 (Gas (G ( G Only Gas O l ) Only)
For the groups of c apital assets for natural gas projects having reserves of more than 7 years, apply useful lives as follows:
Construction utilities and auxiliaries Construction housing and welfare Production facilities R ail road cars and locomotives 8.0 years 20 0 years 20.0 8.0 years 15.0 years

5. COST RECOVERY CAPITAL COST DEPRECIATION

DecliningBalanceMethod;Depletionfactor Group1:50% Group p2:25% Group3:10%

6. Domestic Market Obligation g ( DMO )

PSC STANDARDCLAUSE: Aftercommercialproductioncommences,...Contractor agreestosellanddeliveraportionoftheshareofcrude oiltowhichitisentitledpursuanttoSection6.1.3and 6.3.1(6.1.3=Equityshare;6.3.1=FTPshare)...
Whenaportionofoperatingcostsremainsunrecoverd,contractorshall bereleasedfromtheobligation obligation. Kewajiban Contractormenyerahkan sebagian (25%)shareminyak mentahnya kpd Pemerintah untuk jaminan kebutuhan pasar domestik. domestik

EffectiveFormulaforDMO:25%xSharingSplitx Production
5tahun pertama,investormendapat feeDMO=harga minyak pasar. Setelah 5tahun, tahun investormendapat feeDMO:US$/bbl0.20, 0 20 15% 15%, 20%,25%dari harga pasar,sesuai bunyi kontrak.

6. Domestic Market Obligation ( DMO )

Case-1 Case-2 Case-3 Cost to be recovered, M$ 18000 18000 18000 Total Lifting Lifting, Mbbl 1000 1000 1000 Price, US$/bbl 25 20 23 Investment Credit, $ 0 0 0 Computation in bbl Cost to be recovered, Mbbl 720 900 783 Total Lifting Lifting, Mbbl 1000 1000 1000 FTP 20%, Mbbl 200 200 200 Investment Credit, Mbbl 0 0 0 C tR Cost Recovery, Mbbl 720 800 783 Equity to be Split 80 0 17 Contractor FTP Share 58 58 58 Contractor Equity Share 23 0 5 Total Contractor Share 81 58 63 DMO (normal) 72 72 72 DMO Delivered 72 0 63