Methane abatement in Malaysia’s upstream oil and gas sector: A marginal cost analysis for supporting long-term energy transition

The aim of this study is to analyze the role of the upstream oil and gas sector within Indonesia's economy in terms of its linkage to other sectors and the multiplier effect it produces. The input-output (IO) analysis method is applied by calculating the total, backward, and forward linkage index and multiplier effect index values of the upstream oil and gas sector. Building upon a previous study using the 2005 BPS IO Database updated in 2010 (2005 IO), this study used the 2010 IO Database released by BPS in 2015 (2010 IO) and the 2016 IO Database released in 2021 (2016 IO), processing the data using Python-based software. Based on the calculation using 2010 IO Database, there were 93 sectors with linkage to the upstream oil sector and 104 with linkage to the upstream gas sector, whereas the 2016 IO Database identified 96 sectors with linkage to the upstream oil sector and 113 with linkage to the upstream gas sector. Simulated calculation and analysis results revealed that there was an increase in total (backward and forward) linkage index values of the upstream oil and gas sector, from 3.8801 to 4.0826 for the upstream oil sector and from 3.1256 to 3.3940 for the upstream gas sector. In regard with multiplier effect, simulated calculation results also pointed towards an increase in total multiplier index values, from 6.1855 to 7.8943 for the upstream oil sector and from 4.9828 to 6.5630 for the upstream gas sector. The increase in total multiplier index in the national upstream oil and gas sector correlates with an increase in linkage between the upstream oil and gas sector and other sectors in Indonesia's economy as a whole, both backward and forward. Analysis results showed that the greater the multiplier index reported by a sector with linkage to the upstream oil and gas sector, the greater the total multiplier index produced in the upstream oil and gas sector.

Following the discovery of Oil and Gas resources in commercial quantities in the year 2007, Ghana sought foreign expertise with the much needed technical and financial resources to exploit the newly found resources. Seeing that the upstream Oil and Gas industry is a hugely technical and capital intensive area, the Government of Ghana through the Ministry of Energy and the Petroleum Commission adopted a local content policy in the year 2011, and subsequently passed a Legislative Instrument through the Parliament of Ghana in the year 2013 to enforce the policy. The motive of this move was clear. It was and is to ensure that the upstream Oil and Gas industry of Ghana provided non-fiscal benefits such as employment opportunities, avenues to allow Ghanaian businesses supply goods and services to the industry and also ensure that there is proper technology transfer to give the Ghanaian technocrat the ability to have the necessary skills and technical know-how to run the upstream Oil and Gas sector in the nearest future. The question this research seeks to answer is how well Ghana has done so far in its quest to ensure local content in the upstream Oil and Gas sector since the year 2013. Using mostly qualitative techniques and methods, this research extensively employs content analysis to organize, summarize and categorize data from which patterns and links were drawn from literature reviewed. Data is analyzed along these themes: employment opportunities allowed Ghanaians, supply chain advantages to Ghanaian businesses, technology transfer and the institutional effectiveness in enforcing local content laws in the industry. Findings suggested that Ghana had made some good strides in terms of ensuring employment for Ghanaians in the upstream Oil and Gas sector though targets with regards to ensuring that Ghanaians held almost all core technician positions in 10 years are overly ambitious. This is because of the apparent lack of the necessary technical and professional skills. On the supply of goods and services to the industry, the capital intensive nature of the industry coupled with high cost of borrowing for Ghanaian businesses makes it nearest impossible to compete fairly with foreign competitors. However, to ensure some advantage in terms of the supply of goods and services in the industry, the local content laws have earmarked some areas in the industry like transport and aviation services, financial and insurance services etc. for only Ghanaian players. It is worth noting however that foreign companies which are not obliged to comply with local content laws because Ghanaian laws do not take retroactive effect, on their own have commendable local content policies to help Ghanaians derive the necessary benefits from the Oil and Gas resource. The companies view this gesture as part of the Corporate Social Responsibility (CSR) strategy. This study further finds that the Petroleum Commission and other enforcing institutions will need to further enhance their capacities to enforce local content laws. Overall, Ghana’s local content laws are good ones with clearly stated objectives and goals and would help citizens derive the needed benefits from the upstream Oil and Gas industry if strict enforcement is prioritized and done.

Direct measurement of methane emissions from the upstream oil and gas sector: Review of measurement results and technology advances (2018–2022)

Environmental Performance Rating for Business Program (PROPER) is a compliance tool, which has been developed by Indonesian Ministry of State for Environment (MOE) since in 1994. The main purpose of PROPER is to improve compliance status of companies through public disclosure. The difference between PROPER and other environmental audit program is that PROPER emphasizes on the output of company's environmental management. The rating in PROPER was categorized in five different colors, i.e. black, red, blue, green and gold. Briefly, black and red give to the non-compliance category; blue was given to the companies, which is complied with the minimal requirement of regulation; while green and gold are awarded for companies, which show "beyond compliance" category. Based on the results of PROPER audit in 1995-1997, it showed that. PROPER was effective to improve the company compliance percentage to 9.4% from 213 industries at various sectors of industries including manufactures, mining, energy, oil and gas and agriculture sectors. This paper will only focus on the upstream oil and gas sectors involved in PROPER program. As a result, in 2002 PROPER for upsteam oil and gas sectors showed that five upsteam oil and gas companies were rated blue colour (compliance category) and one company was rated red colour (non compliance category). While, the PROPER's result in 2003 showed that 11 upsteam oil and gas companies (73.3%) were shown as compliance category (blue rating) among 15 companies audited, while the rest (26.7%) were categorized as non-compliance companies (red rating). In PROPER's 2004 outcome, the finding showed that 36 upstream oil and gas industries were awarded as compliance companies (blue color) exhibiting 72% among 50 industries audited. While, 14 upstream oil and gas companies were categorized as non-compliance companies (28%). The major incompliance aspects stressed upon the mismanagement of hazardous and toxic wastes. In this finding, no green rating was found in the upstream oil and gas sectors. We found that PROPER is an effective compliance tool to improve environmental performace of upstream oil and gas companies. The program results in the increase of regulatory compliance awareness mainly due to its incentive reputation encouragement for companies.

Nigeria’s upstream oil and gas sector is extensively contributing to the economic growth of the country, but the sector is plagued with challenges around corporate social responsibility (CSR) and taxation practices. The Petroleum Industry Act (PIA) was introduced to tackle these challenges towards promoting sustainable development in Nigeria. The aim of this study is to explore the PIA’s provisions on CSR and taxation, identify the Act’s implementation challenges and improvement opportunities, propose an integrated framework for monitoring and evaluating the PIA’s impact on CSR and taxation over time, and recommend measures for enhancing the PIA’s impact on CSR and taxation support for sustainable development in Nigeria’s upstream oil and gas sector. This study adopts the qualitative desk review method to analyse the existent literature, reports, and documents regarding the PIA’s provisions on CSR and taxation. The findings reveal that the PIA’s provisions greatly emphasize CSR initiatives and taxation transparency in improving responsible ethical business behaviour. An integrated framework for monitoring and evaluating the PIA’s impact over time is developed. This study concludes that the PIA’s provisions can balance CSR and taxation practices for sustainable development. The study’s recommendations include using the integrated framework as a structured strategy for monitoring and evaluating the PIA’s impact. This study contributes to the discussion on the imperatives of ethical business practices and regulatory frameworks for sustainable development drive in the oil and gas sector.

The upstream petroleum industry includes associated service businesses such as seismic and drilling contractors, service rig operators, engineering firms and various scientific, technical service and supply companies. These extremely high-tech activities require the continuous inflow of knowledge and technologies for reconfiguring and rebuilding capabilities that fit with the continuous changes in the marketplace for sustaining a competitive advantage. To that end, infrastructures and policy orientations are required to create a conducive environment for knowledge transfer (KT) to enhance knowledge capability. This paper aims to explore how strategic alliances lead to KT that enhances organizational capabilities. We analyze the case of the National Iranian Oil Company (NIOC) to test the fuzzy Delphi model (FDM) framework. We develop a conceptual framework establishing the link between the strategic alliances (SA) and their facilitators for developing the knowledge capabilities of upstream oil and gas companies. We tested the proposed model using FDM to show how international strategic alliances (ISA) in the upstream oil and gas sector transfer knowledge and have positive effects on developing the NIOC’s knowledge capability. Positive outcomes include knowledge acquisition from partners, developing knowledge management techniques and facilitating the implementation of knowledge-based structure, developing high-tech production and exploration methods, increasing investment in innovation, and developing human resources and information technology uses. Keywords: Knowledge Transfer, Upstream Oil and Gas Sector, International Strategic Alliances, Emerging Countries To cite this document: Salman Kimiagari, Samira Keivanpour, Md. Samim Al-Azad, and Muhammad Mohiuddin, "Using the Fuzzy Delphi Method to Apply a Model of Knowledge Transfer through International Strategic Alliances in Up-Stream Oil and Gas Sectors", Contemporary Management Research, Vol.11, No.4, pp. 409-428, 2015. Permanent link to this document: http://dx.doi.org/10.7903/cmr.13183

This article examines the challenges faced by indigenous oil companies operating in Nigeria's upstream oil and gas sector. It provides a comprehensive analysis of the historical background, conceptual clarifications, and the legal framework applicable to these companies and offers recommendations for mitigating these challenges. The historical background highlights the introduction of marginal oil fields and local content policies as initiatives to encourage indigenous participation in the oil and gas industry. However, despite these efforts, indigenous oil companies continue to encounter significant hurdles such as paucity of funds, security risks, shortage of skilled personnel among others. This article adopts the doctrinal legal research methodology with consideration of both the primary and secondary sources of law. The legal framework analysis focuses on relevant statutes such as the Nigerian Oil and Gas Industry Content Development Act, 2010, the Petroleum Industry Act, 2021, the Companies and Allied Matters Act, 2020, the Companies Income Tax Act, 2007 and the Finance Act, 2023. The study examined some of the challenges faced by indigenous oil companies including limited access to financing, technological and technical expertise constraints, infrastructure deficiencies, and a lack of patronage from multinational oil corporations. The study found that these challenges hinder the ability of indigenous companies operating in Nigeria’s upstream oil and gas sector to invest in exploration and production activities. These challenges further reduce operational efficiency, and impede healthy competitiveness. In conclusion, as a contribution to knowledge, the study designs a hybrid strategy or panacea for promoting the sustainability of indigenous oil companies in Nigeria. The study recommends strengthening the implementation of existing legal frameworks, enhancing access to financing, investing in infrastructure development, encouraging collaboration and strategic partnerships between indigenous and multinational oil companies, and implementing market support and protection policies. Addressing these recommendations can help mitigate the challenges faced by indigenous oil companies, allowing them to contribute more effectively to Nigeria's economy, upstream sector and the overall growth of the oil and gas industry sustainability.

The upstream oil and gas sector faces a transformative challenge: achieving sustainable growth while maintaining profitability in an evolving global energy landscape. This paper proposes a conceptual framework to address this dual objective by examining critical dimensions of the sector's operations. It explores strategies for balancing sustainability and profitability, emphasizing the integration of innovative technologies such as carbon capture and renewable energy solutions. Commercialization strategies for emerging energy technologies are analyzed, highlighting the importance of scaling and stakeholder collaboration. Additionally, the paper investigates the influence of global and regional energy policies, market mechanisms, and future trends, including net-zero initiatives and green hydrogen development, on sustainable energy growth. The findings underscore the necessity of adopting sustainable practices, leveraging policy incentives, and fostering collaboration across the value chain. Recommendations are presented for industry stakeholders to align their strategies with sustainability goals, ensuring long-term competitiveness and environmental stewardship in the upstream sector.

In recent decades, India has increasingly felt the need to reduce its dependence on imported crude oil by augmenting domestic production. In such pursuance, India recently enacted the Hydrocarbon Exploration Licensing Policy (HELP) to attract private investments in India’s upstream oil and gas sector. One of the salient features of HELP is the Open Acreage Licensing Policy (OALP), which sought to liberalize auctioning and licensing process of upstream oil and gas sector in India. This article analyses the salient features of the OALP to argue that it has remedied most of the problems associated with previous licensing regimes. Even though India has significantly liberalized the auction and licensing process, the fiscal terms governing the revenue sharing between the operator and the government have served as a deterrent to make India an attractive destination for foreign investors. Therefore, this article suggests that India must offer more attractive fiscal terms to oil companies to incentivize them to undertake the risk of investing in India’s upstream sector.

During 1970-1990, Indonesia emerged as one of the world's largest producers of oil and natural gas. Its management required direct foreign investment due to the need for capital, technology, and skilled human resources. Foreign direct investment activities in Indonesia typically involved the establishment of subsidiaries by foreign and Indonesian companies, necessitating legal regulation governing the relationship between subsidiaries and their holding companies. This study aims to analyze the legal correlation between subsidiaries and holding companies in foreign direct investment, the authority and intervention of holding companies in subsidiaries, and the barriers faced by foreign investment in the upstream oil and gas sector in Aceh. Normative juridical analysis was employed throughout the study period, involving analysis of various books, journals, research papers, and relevant legislative regulations. Consistent with the findings, the legal relationship between subsidiaries and holding companies in direct foreign investment in the upstream oil and gas sector in Aceh is not extensively detailed in Law Number 40 of 2007 concerning Limited Liability Companies. Instead, it is determined by the articles of association and cooperation contracts. As majority shareholders, holding companies have the ability to influence decisions concerning the financial, strategic, business, and operational aspects of subsidiaries. However, foreign investments in this sector encounter challenges related to environmental concerns and the complexity of regulations and administration.

Proposing a conceptual model for cloud computing adoption in upstream oil & gas sector

This research examines legal vacuums in the management of state assets derived from Cooperation Contracts (KKKS) in the upstream oil and gas sector in Indonesia. Despite a legal framework established by Law No. 22 of 2001 and Government Regulation No. 35 of 2004, field practices reveal discrepancies between regulations and implementation, leading to difficulties in the recording and reporting of assets, as well as the determination of depreciation values and operational costs. The impact of this legal vacuum not only affects state revenue and transparency but also has significant social and economic implications. Through case study analysis, this research suggests improvements to existing regulations, capacity building for KKKS, and strengthening oversight mechanisms to optimize the management of state assets in the upstream oil and gas sector.

Indonesia's upstream oil and gas sector, a vital engine of the national economy projected to generate USD 9.68 billion in transactions and create over 18,000 jobs by 2024 (SKK Report 2023), relies on Local Content Requirements (LCRs) as pivotal policies for deepening domestic value capture through enhanced participation, supplier competitiveness, and economic multiplier effects. This study investigates the future trajectory of LCR implementation in Indonesia's upstream sector by 2034, employing qualitative methodologies—including pre-questionnaires, expert interviews, and focus group discussions—to systematically identify 24 Key Driving Factors (KDFs) spanning regulatory, economic, technical, socio-political, and energy transition dimensions that critically shape LCR outcomes. Utilizing an inductive scenario planning framework, three plausible futures were constructed to explore strategic challenges and opportunities for multinational corporations (MNCs): Long Way to Marathon Race characterizes sustained hydrocarbon growth underpinned by robust local capabilities; Shifting the Baton in Relay Race is defined by energy transition dynamics reshaping priorities toward renewables; while Run Through the Obstacle depicts operational pressures from declining traditional sectors coupled with sluggish renewable adoption. The research underscores that strategically implemented LCRs, by cultivating competitive domestic supply chains, are fundamental to maximizing the sector's contribution to sustainable economic growth, technological advancement, and regional prosperity, thereby equipping MNCs with essential foresight for navigating Indonesia's evolving upstream landscape through these scenario-based insights.

The Indonesian government continues to set oil and gas lifting targets every year. This is done to encourage the upstream oil and gas industry to increase lifting to meet national energy needs and optimize state revenue. However, these targets are often not achieved due to the low level of oil and gas exploration activities in Indonesia. Efforts to improve the business climate for upstream oil and gas activities are always carried out in various sectors, one of which is the management of goods and equipment for upstream oil and gas business activities. These goods and equipment are designated as State-Owned Assets (BMN) managed by the Indonesian government c.q. Ministry of Finance. In this regard, in order to encourage investment interest among investors in the upstream oil and gas sector and to pay attention to the mandate of Law 22 of 2001, it is necessary to carry out good management of upstream oil and gas assets so that it can assist Production Sharing Contractors (KKKS) in managing and providing assets needed in upstream oil and gas business activities. Good management of upstream oil and gas BMN can be carried out through adaptive policies so that it can meet every need and problem faced by KKKS, SKK Migas, and the Indonesian government. This adaptive policy will support the resolution of problems that have not been accommodated in normative regulations so that each legal subject can ensure the completion of its responsibilities in accordance with the provisions of laws and regulations.

The Application of New Article 33, Section 4 of Indonesia's Constitution to Indonesia's Upstream Oil and Gas Legal Framework