Sharing Contract Research Articles

National And Public Interest Perspective on the Governance and Regulation of Carbon Capture and Storage Implementation in Indonesia

Recently Indonesian Government issued two important regulations regarding Carbon Capture Storage (CCS) namely, President Regulation No. 14/2024 and Ministry of Energy and Mineral Resources Regulations No. 2/2003. Both regulations have caused Indonesia's CCS Legal and Regulatory score by the Global CCS Institute to increase significantly. There are three criteria applied by the Global CCS Institute to define the score: regulation of trans boundaries movement of CCS, specific legal and regulatory framework, and facilitation of early project. Despite the increase in CCS score, some essential questions remain as crucial problems that are not solvable easily. Those questions regarding the national and common interest of Indonesian people by the issuance of both legal and regulations are still unclear, at least from the common people's perspective. The Presidential Regulation define dual schemes for CCS implementation: Contract Scheme and Permit Scheme. From the common people's perspective, both schemes need to be exercised further to respond to the public questions properly. Therefore, any reason behind the implementation of those two schemes as well as any potential benefit for Indonesia by implementing those two schemes in parallel are very important to be reviewed and analyzed. Reinforcement of Oil and Gas Production Sharing Contract Principles in the implementation of CCS in Indonesia are more favourable for the National and Public Interest Perspective.

Sustainability of the Model Production Sharing Contract 2023 in Bangladesh: An Historical Analysis

Abstract The significance of the Production Sharing Contract (psc) for the onshore and offshore extraction of petroleum resources from Bangladesh’s sovereign territory has grown in recent years due to maritime delimitations among its neighbouring countries. To ensure the long-term investment, social well-being, economic growth, and energy stability of the country, the Government of Bangladesh (GoB) has introduced the Model Offshore Production Sharing Contract (psc)-2023. This article aims to provide an analysis of the Model psc-2023. Through a thorough examination of the Model psc-2023, it will address any existing loopholes and provide recommendations for its improvement. This article will be instrumental in launching the future development of the offshore model offshore production sharing contract.

Multiscale and multidisciplinary data-driven reservoir characterization of a fractured carbonate field in Kurdistan

Abstract The combination of traditional subsurface interpretation techniques with advanced data analytics is a key stepping stone for better predicting reservoir quality, especially in heterogeneous and complex geological systems. The Peshkabir oil and gas field, located in the north of the Kurdistan Region of Iraq and within the Tawke Production Sharing Contract, is one such heterogeneous system. Well oil rates vary significantly across the field and cannot be simply correlated to fracture densities measured at the wells. Understanding which fractures matter and what influences reservoir deliverability is a question of major importance for maximizing oil production. The carbonate reservoirs include karstified vuggy zones and hydrothermal dolostones, in addition to an extensively developed fractured network. This paper presents a geological conceptual model for the Peshkabir field, and an application of Python based data science techniques to identify key predictors of reservoir deliverability from drilling, logging and production data. We demonstrate that the major advantage of the application of advanced data analytics is that it can enable the recognition of patterns and associations in a complex, high-dimensional parameter environment whereas traditional interpretation methods typically only allow for the comparison of two or three parameters at a time. This method allows the integration of dynamic and static data effectively and empowers the interpreter to incorporate all the available insights which, coupled with domain knowledge, allows for data-driven decision-making.

Building Economic Sustainability of the Energy Sector: How Purchasing Performance and Material Inventory Performance Influence Sustainable Economic Levels Moderated by Fiscal Term

This research investigates the relationship between purchasing performance and material inventory performance with the fiscal term as a moderating variable on sustainable economic levels in Indonesia's upstream oil and gas industry. Data were collected over five years (2017-2021) from 26 Production Sharing Contract Contractors (PSCC) in Indonesia during the preliminary Plan of Development (POD) phase. This research uses Structural Equation Modeling (SEM). The results showed that purchasing performance significantly affects sustainable economic levels, and material inventory performance has no significant effect on sustainable economic levels. Fiscal term moderation on the influence of purchasing arrangements on sustainable economic levels has a significant impact. In contrast, fiscal term moderation on the influence of material inventory performance on sustainable economic levels has an insignificant effect. This research provides a comprehensive framework by explaining the influence of purchasing performance and material inventory performance with the fiscal term moderating variable on sustainable economic levels as a novelty in this research.

Research on Cost Sharing and Coordination of Low Carbon Supply Chain in the Context of Carbon Neutrality Strategy

For carbon emissions under the limit of supply chain cost sharing problem, based on the Shared contract perspective starkerberg game model includes the manufacturers and retailers, analyzes the cost sharing ratio, carbon trading price and unit carbon tax emissions on the supply chain, and the optimal strategy combination and carbon reduction cost allocation ratio is studied. The results show that the one-way cost sharing model is beneficial to the reduction of low carbon supply chain, while the two-way cost sharing model has a positive effect on the reduction of supply chain within the small allocation ratio. In addition, the sharing proportion of manufacturers is within a certain range, and the two-way emission reduction mode is the optimal choice for the supply chain. Meanwhile, the sharing proportion will affect the choice between decentralized and centralized decisions. In addition, the numerical analysis shows that the carbon emission reduction levels increase with the increase of carbon trading prices. The results have good reference significance for the carbon emission reduction decision and carbon reduction cost sharing contract among members of the low-carbon supply chain.

Article: Resolving Conflicts Between Production Sharing Contracts and Tax Treaties in Indonesia

This article discusses the uncertain dispute settlement for a conflict resulting from applying a reduced rate stipulated in a tax treaty or a domestic withholding tax rate agreed to in a production sharing contract (PSC) on branch profit tax (BPT) in Indonesia. The contractor, the permanent establishment of a non-resident entity in Indonesia, interpreted that a reduced rate shall apply whereas the Indonesian tax authority adhered to applying the prevailing domestic withholding tax rate at the time that the PSC was signed. The ambiguousness between the tax treaty and the PSC led the disputed entity to choose litigation as the primary alternative of dispute settlement even though the tax treaty facilitates resolving the problem through a mutual agreement procedure (MAP) or another possible dispute resolution. Further, Indonesian civil law does not implement the jurisprudence. The dispute will continue if renegotiation is not reached. To reduce the chance of a potential dispute in the future, a stabilization clause to accommodate the change of the regulation during the period of the contract has been included, however, it only applies to the latest version of the PSC. Tax treaty, production sharing contract, branch profit tax

The Sale Services, Bundling and Jointly Advertising Strategies under Profit Sharing Contract in Closed-Loop Competitive Supply Chain

The Sale Services, Bundling and Jointly Advertising Strategies under Profit Sharing Contract in Closed-Loop Competitive Supply Chain

Research on the Application of Supply Chain Revenue Sharing Contract under Omni-channel Retail BOPS Mode

Research on the Application of Supply Chain Revenue Sharing Contract under Omni-channel Retail BOPS Mode

Key Success Factors in the Trust Metaphor Framework for Profit Sharing Contracts: A Literature Review

This research aims to explore key success factors in profit-sharing-based contracts. Profit-sharing-based contracts such as mudharabah and musharakah carried out by Islamic banks are the core of financing in Islamic banks because they are directly related to the productive sector. The impact of this type of financing is greater for the industrial world than that of buying and selling-based financing. However, the facts show that there has been a decrease in the performance of the percentage of profit-sharing-based financing during the 2019-2022 period, and conversely, buying and selling-based financing has increased. In addition, the total operating profit from profit-sharing-based financing has also decreased during the 2019-2022 period. Mudharabah financing is mainly carried out on the basis of trust that arises between the owner of the funds (shahibul maal) and the business manager (mudharib). This study uses a qualitative approach with a literature review in order to gain a comprehensive understanding of the key success factors in profit-sharing-based financing contracts. Key success factors that are deepened based on the trust metaphor include knowledge of the rights and obligations of mudharib and shahibul maal, honest reporting, monitoring, and guarantees. In fulfilling the Trust, each party is required to have adequate knowledge of their rights and obligations in mudharabah and musharakah contracts. The honest and adequate presentation of financial information is disclosed by mudharib with reference to relevant Sharia accounting standards such as PSAK 101, PSAK 105, and PSAK 106. This disclosure is a form of mudharib's responsibility to shahibul maal. Regular monitoring can be carried out by shahibul maal actively or passively. Guarantees can be applied in sharing-based financing contracts other than guarantees provided by mudharib. This study produces theoretical contributions to science in the field of Sharia accounting and practice, especially for practitioners in the Sharia banking industry.

TAXING AS JOINT VENTURE OR PARTNER?

The Petroleum Income Tax Act of 1967 (PITA) is a reference point for taxation during the implementation of the Production Sharing Contract regime in Malaysia. The term person under the purview of the PITA encompasses partnerships, which, includes joint venture. The present study aims to elucidate the intricate interplay of relationships and transactions within a joint venture, with a specific focus on comprehending the underlying rationale for considering the entire joint venture as the chargeable person under the PITA, as opposed to taxing individual partners separately. The methodology is based on Research Onion Framework with qualitative research and inductive approach leveraging on action research. Analysing literature review to delves into the structural of the joint ventures and the preparatory measures aimed at ensuring the equitable participation of the involved parties in the joint venture arrangement, particularly in managing various alternative activities that may arise alongside the primary Joint Operating Agreement (JOA) activities, often manifesting as sole risk projects. The engagement in various non-monetary activities and the collective contributions of all partners, particularly in mitigating risks and ensuring the success of upstream exploration and production, are regarded as contributions that may not lend themselves to a straightforward division, which support the joint ventures as a chargeable person. The outcomes derived from this methodological approach culminate in a model that elucidates the rationale for taxing joint ventures as opposed to individual partners within the joint venture. This clarification is essential for all involved parties, including taxation agencies, industry stakeholders, and policymakers. Novelty: The study represents an initiative within Malaysia, to explore the interpretation of the PITA. The motivation was sparked by inquiries from industry stakeholders, who expressed apprehensions regarding the tax assessment processes, whether in the context of joint ventures or individual taxpayers.

LEGAL PROTECTION OF THE NATIONAL OIL AND GAS ENERGY BY LAW NUMBER 22 OF 2001

National Oil and Gas Energy for Indonesia so plays an important role in the field of oil and gas industry. Pertamina is the only State Oil and Gas Company submitted the task to manage all activities of the Indonesian Oil and Gas Energy from upstream to downstream and export activities, is the beginning of a political era of international cooperation in the upstream oil and gas activities with the use of system agreement Produktion Sharing Contract (kps). The purpose of this paper is the settlement of disputes in the mining oil and gas energy is by starting with the principles and definitions, basic law and the law of oil and gas resources that exist in Indonesia, as contained in Act No. 22 of 2001 and aspects of legal protection in the oil and gas energy mining system , and the settlement of disputes in the national oil and gas energy, namely; 1). court; 2). Alternative dispute resolution; view of Islamic law on mining energy as a result of the earth and the results of its use for the welfare of the people in line with the Islamic religion that results or benefits can be used for the welfare of the people

Profit-Loss Sharing Contract as an Alternative to Solve Unemployment in Sudan through Investment in Livestock Breeding

<p>The profit-loss sharing (PLS) or <em>Mudārabah</em> is an Islamic contract in which one side provides capital and the other side provides work. Profits are to be shared in the proportion that was agreed upon before the contract was implemented. This paper aims to highlight the role of the <em>Mudārabah</em> contract in financing livestock projects, and its use in solving the problem of unemployment in Sudan, where livestock breeding is a productive activity that provides employment opportunities and increases the incomes of the workers, and increases the rates of economic growth, especially since Sudan is ranked among the richest Arab and African countries with its livestock and agricultural wealth, and there is a large number of the population of Sudan working in the agricultural sector including the animal and plant subsectors. A large number of Sudan’s population works in the agricultural sector. The paper also intends to examine the applications of the <em>Mudārabah</em> contract as an investment alternative that can be more effectively utilized in providing employment opportunities for university graduates and job seekers in Sudan. a descriptive-analytical approach was used to define the <em>Mudārabah</em> concept and show the types of its application, and the methods of employing it to finance livestock projects in Sudan. The paper reached several results, the most important of which is that <em>Mudārabah</em>, such as in the Prophet’s practice and its contemporary applications, is one of the most significant investment formulas that can be used to finance productive projects in the livestock sector, especially small and medium-sized enterprises in the field of livestock breeding in Sudan.</p>

Fiscal Moderating Effect for Sustaining the Upstream Petroleum Field Economics and Profitability: Inventory and Purchasing Performance

Introduction: The study literature's obvious limits with a complete fiscal term model for moderating variables are crucial to our investigation. In order to preserve petroleum field economics and profitability in Indonesia's petroleum business context, this study examines the relationship between material inventory performance, purchasing performance, and fiscal term moderating influence with an agglomeration approach. Theoretical Framework: Industry character strongly influences the inventory and purchasing performance relationship (Basu & Wang, 2011); Hofer et al., 2012); (Priniotakis & Argyropoulos, 2018). Despite circumstances and fiscal terms that were not adaptive to environmental dynamism (Acquah-Andoh et al., 2019), Production Sharing Contract (PSC) Contractors' upstream field economics deteriorated compared to the initial (Paramita, 2022). Financial term in fossil sector draws investors, ensuring fair economic performance and cost balance (Mardiana et al., 2019; Yun et al., 2020). Methodology: Cross-sectional time series data were collected over five years from 26 Production Sharing Contract (PSC) Contractors from Indonesia's upstream oil industry in the preliminary Plan of Development (POD) phase. Econometric analysis using multivariate structural equation modeling will test the model. Results and Discussions: The results showed that different financial performance agglomerations showed an inconsistent relationship between inventory performance, petroleum field economics, and profitability, but purchasing performance showed a positive relationship in any scheme, and fiscal terms significantly strengthened the relationship between variables. Conclusion: This study sheds light on whether fiscal term strengthening variables in the upstream petroleum company affect decision-making.

The Synergetic Economic Evaluation of PSC Cost Recovery and Gross Split Schemes on Field A

In month of August, year 2021, there was an alteration in the production-sharing contract for this field. The contract previously used was Production Sharing Contract (PSC) Cost Recovery, which changed to PSC Gross Split. This contract comparison aims to synergetically evaluate the comparison of the two economic models and also to determine a more efficient and appropriate scheme to be applied to field A, as well as to analyze the parameters that can affect the economic indicators of field A. The results of the economic analysis that has been carried out show that the PSC Gross Split scheme is better than the PSC Cost Recovery scheme. For PSC Cost Recovery, the Net Present Value (NPV) obtained for 30 wells is equal to 13,848,000 US$, the average Interest Rate of Return (IRR) is 118%, the average Pay Out Time (POT) is 1.43 years, the Contractor Take is 20,740,000 US$, and the Government Take is 176,587,000 US$. Whereas for PSC Gross Split, the NPV obtained for 30 wells was US$ 37,906,000, the average IRR was 245%, the average POT was 1.30 years, the Contractor Take was US$ 52,544,000, and the Government Take was 136,402,000 US$. The sensitivity analysis that has been carried out shows that the parameters of the amount of oil production and the price of oil have a significant effect on both schemes.

Revenue/cost production sharing contract (psc) fiscal regime on marginal gas fields in Malaysia: Case study

Despite the increasing global demand for natural gas, there are many marginal oil and gas fields that lie idle and are not developed mainly due to the uneconomic feasibility of the project. One of the main factors hindering the monetization of these small fields is the unfavourable fiscal conditions. This is the main reason why many potential marginal fields that do not meet the economic criteria required for commercial development are stranded. Thus, this paper aims at assessing the existing Revenue/Cost (R/C) Production Sharing Contract (PSC) fiscal regime on marginal gas fields in Malaysia via sensitivity and scenario analysis studies. It is found that reduction in cost of capital, tax rate or other PSC payments parameters helps to improve the NPV however the analysis shows the R/C tranches consists of cost recovery limit, excess cost recovery and profit-sharing percentage are the significant factors driving the cash flow.

Lack of Profit-and-Loss Sharing Contracts in Moroccan Islamic Banks: An Investigation During the Coronavirus Pandemic

Purpose — The purpose of this paper is to examine the challenges and barriers to implementing profit-and-loss sharing (PLS) contracts in Moroccan Islamic banks (IBs). Design/Methodology/Approach — The paper presents the results of exploratory qualitative research based on face-to-face interviews with local managers of Moroccan IBs in the Rabat–Casablanca region. The investigation was carried out in September 2020, during the Coronavirus (COVID-19) pandemic. Findings — The findings reveal that various challenges, mainly institutional and operational, as well as the implications of the COVID-19 pandemic have been the main barriers to implementing PLS contracts in Moroccan IBs. Originality/Value — The findings are supported by field research targeting the managers who are directly concerned with the commercialisation of PLS contracts. Moreover, the present paper discusses the subject within the Moroccan context, where Islamic banking is a relatively recent phenomenon. Research Limitations/Implications — Given the limited number of IBs in Morocco and the COVID-19 lockdown measures, bank managers in the Rabat–Casablanca region were considered. Consequently, only 14 managers agreed to contribute to the present research. The findings depend on the experience of the respondents on the topic of the research; therefore, other factors and challenges may exist. Practical Implications — The present paper may remind scholars and practitioners of the importance of PLS instruments, especially under the pressure of COVID-19. It is an attempt to explain the challenges faced by these agreements and to make some recommendations in the hope that they will see the light of day in the Moroccan market.

Project Investment Analysis on New Oil and Gas Field Development (M-X) at Pt. PTM

PT.PTM as one of major oil and gas company in Indonesia contributes highly to fulfilling oil and gas demand in Indonesia. However, with more than 40 years of operation, PT. PTM is currently at its declining phase. Aggressive development projects have been planned to sustain PT. PTM production. The latest development project is M-X new field developments. This Final Project is intended to assess the M-X Project feasibility in terms of economic terms considering possible dynamic changes in several factors. The results of this final project will help PT.PTM management decide whether to invest in the development of the M-X field. Both Discounted and Non-Discounted Cash Flow (DCF and Non DCF) will be used in the M-X Project investment analysis. Revenue and cost breakdown will follow Production Sharing Contract (PSC) – Cost Recovery scheme as applied for PT. PTM. The Non-DCF analysis shows that 264.65 MMUSD net cash flow will be generated for the Government due to M-X development while PT. PTM will gain 49.97 MMUSD with payback period of 3 years after M-X production. DCF analysis result shows that Project Net Present Value (NPV) is 4.35 MMUSD with an IRR of 12%. Financial risk due to dynamic changes in oil and gas project is analyzed using Montecarlo simulation that resulted on 23.3% probability to have negative NPV with Mean NPV of 13.93 MMUSD. The analysis result from Non-DCF and DCF method shows positive result for PT. PTM management to proceed with investment planning for M-X field development.

Coordination Mechanism of Revenue Sharing Contracts in Port Supply Chains: A Case Study of China’s Nantong Port

Considering the port function’s importance, the supply chain’s overall and individual revenues, and the port supply chain’s uniqueness, a game model for a two-stage port supply chain composed of port service providers and port enterprises was developed. Using revenue sharing contracts (RSCs) as a coordination mechanism, game equilibriums were investigated under two conditions: price-sensitive or price-insensitive port logistics service demand. The results suggested that RSCs can achieve Pareto improvement in both cases, thereby coordinating port supply chain revenues. Led by the port logistics service provider and port enterprise, the coordination mechanisms based on RSCs of port supply chain were discussed using logistics service capacity as the coordination link. Despite differing decision orders, the RSC model can coordinate the port’s supply chain with its service provider, while the port and logistics service provider determine the retention ratio. This paper also proposed coordination measures for the Nantong Port, one of the most important ports in China, to maximize the logistics capacity of iron ore supply chain and enhance the port logistics’ value-added services.

Securing State’s Asset: Legal Protection of Natural Resources of Oil and Gas

The legal framework for oil and natural gas activities in Indonesia is established by Law Number 22 of 2001 concerning Oil and Natural Gas, which was officially published in the State Gazette in 2001. SKK Migas, which replaced BP Migas, is responsible for the management of upstream oil and gas activities based on Cooperation Contracts (KKS). The upstream activities are conducted through Cooperation Contracts (KKS) as specified in Article 6 of the Oil and Gas Law. According to Article 1, number 19 of the Oil and Gas Law, a Production Sharing Contract (PSC) refers to a cooperative arrangement that aims to maximize the benefits from exploration and exploitation activities for the state and ensure the welfare of the people.

Permit Simplification for Upstream Oil and Gas Operation in Indonesia: The Development Administration and Good Governance Perspectives

According to the Indonesian Constitution, any Vital and Strategic Sectors for the People's Interests have to be managed by the State. Oil and Gas until now are two of the Strategic and Vital Business Sectors in Indonesia. Therefore Indonesia establishes an institution namely the Special Task Force of Executive Oil and Gas Business Activity (SKK Migas). SKK Migas deals with Production Sharing Contracts with Exploration and Exploitation (Upstream) Oil and Gas Companies. In its activities, there are many regulations apply and required to obtain permits. The current problem nowadays are related to the type of the permits, the regulations and procedures to follow, as well as institutions/permit issuers to deal with are too many so that the permit system for Upstream Oil and Gas have caused handicaps for the industry to grow competitively. While on the other hand Indonesia still has a high dependency on Oil and Gas Industry for State Income reason and Energy Resilience. The old paradigm of the bureaucracy system in one the most causes of inefficiency and ineffectiveness of bureaucracy in Indonesia. Even though the reformation has been started since 1998 however the change of old bureaucratic system and mentality of the bureaucrats into the new paradigm of good governance is still very less and tend to be progressing very slowly. Overlapping and redundancies of regulations, authorities have caused Indonesia is less competitive destination comparing to the neighboring countries in attracting foreign investment.