JAKARTA (IFT) - The government proposed a profit-sharing scheme (split) for oil and gas between the government and contractors with work contract, the details of which will be determined after the contractor produces oil and gas. Widjajono Partowidagdo, Vice Minister of Energy and Mineral Resources, said that the proposal was made so that the split between the government and the contractor will be more equitable, since it is decided after determining actual production. This prevents having aggrieved parties from the split.
There are currently 265 contractors with work contracts in the oil and gas sector, as well as for methane gas coal (coal bed methane). A total of 69 contractors have production contracts. The remaining 196 are exploration contractors. However, the production contractors have not significantly contributed to national oil production as of yet. Based on the projection of oil production in the State Budget Amendment of 2011 at 945 thousand barrels per day, an average of 905 thousand barrels per day was produced in October 12. Meanwhile, gas production reaches 8.49 million cubic feet per day, exceeding the target in the Budget Amendment of 7.76 million cubic feet per day.
PT Indoritel Makmur Internasional Tbk (DNET)
The listed retail consumer investment company allots Rp 1.3 trillion to its associate company, PT Indomarco Prismatama, to expand Indomaret outlets in 2014. The expansion will be conducted to boost Indomarco’s revenue growth in 2014. The company plans to open 1,200-1,300 Indomaret outlets, with investments estimated to reach Rp 1 billion per outlet. Funding for the expansion is fully sourced from the company’s cash flow.
PT Ancora Indonesia Resources Tbk (OKAS)
The mining explosive provided and oil and gas drilling services company projects its 2014 revenue to reach US$ 230 million, or up 15 percent from 2013’s revenue projection of US$ 200 million. The revenue hike in 2014 will be supported by the increase in revenues from rig lease services. This business is run by the company’s subsidiary, PT Bormindo Nusantara. The subsidiary has secured a new contract worth US$ 61.5 million from PT Chevron Pacific Indonesia. The company also has carried over contracts worth US$ 121 million from last year.
PT Energi Mega Persada Tbk (ENRG)
The listed oil and gas company projects its loan interest rates for 2014 to drop US$ 26 million per year. Imam P. Agustino, President Director of Energi Mega, said the paying off of the previous debt through a syndicated loan worth US$ 203 million would reduce the company’s interest expense. The syndicated loan facility secured by Energi Mega has a five-year tenor with LIBOR+6 percent interest rate per year, which is lower than the interest rate from the company’s previous debt.
PT Logindo Samudramakmur Tbk (LEAD)
The listed offshore activity support company allots US$ 80 million for its 2014 capex, or unchanged from 2013’s capex. The company will still focus its 2014 capex for the purchase of large capacity offshore vessels that are estimated to cost US$ 18 million to US$ 32 million per vessel. The company aims to purchase vessels for deep sea operation.
PT Kertas Basuki Rachmat Indonesia Tbk (KBRI)
The listed paper company’s sales as of September of 2013 sank 70 percent YOY to Rp 10.46 billion from Rp 34.86 billion. The sales drop caused the company to obtain net loss of Rp 13.32 billion from net profit of Rp 47.45 billion in the same period in 2012. The company’s production from its paper machine only reached 5,044 tons as of September of 2013, or 30 percent lower than early 2013’s projection of 7,238 tons.