Distribution of 10% Participation Interest On Natural Gas Source Masela: Rights or Liabilities?
By : Maya *)
District of Southwest Maluku (Maluku Barat Daya/MBD), Maluku Province is a young district that has not been much to get development, both the Central Government and Provincial Government of Maluku. However, the natural energy content contained in the region has a huge potential to replace non-renewable energy sources that have been used by Indonesia. Energy content of the universe lies in Masela Island which is precisely located in Arafura Sea, bordering with the province of NTT and Timor Leste. In the region, claimed to have potential reserves of natural gas are very large.
Potential gas reserves now in field in the Masela estimated to be greater than potential preserved energy, Papua. However, proven reserves field is currently only half of the potential energy preserves there. Director General of Oil and Gas Ministry of Energy and Mineral Resources (ESDM), Evita Legowo said, most likely gas reserves could exceed Tangguh.
Therefore, with only two exploration wells drilled, proven reserves in the field has reached 6.05 trillion cubic feet (tcf).
“The possibility is out there, waiting to be proven. So, we cannot say much now,” he said.
With reserves of 6.05 tcf, It’s required investment of 9-10 billion USD for the development.
As a local government, Maluku provincial government also wants share of the profits from the management of the gas, which is currently operated by a Japanese contractor named Inpex Corporation. Top Masela, Maluku provincial government requested the right Participating Interest (PI) as much as 10% of the activity.
As of 17 times the Local Government Maluku to Jakarta to fight for the rights Participating Interest (PI) 10 Percent of Oil and Gas Management (Oil and Gas) located Masela Masela Island, District of Southwest Maluku (MBD). In fact, the legislative Maluku province also requires the profit sharing, by basing the request of the Government Regulation No. 35 Year 2004 on the Upstream Oil and Gas in Article 34 which reads from the approved field development plan was first produced in an area of work, the contractor is required to offer a 10 percent participating interest to the Regional Enterprise.
“Plans Directorate General for Energy and Mineral regulate the distribution system PI 10% Masela with other provisions of the division between the Maluku provincial government 3%, 3% for West Southeast Maluku district, 3% for Southwest Maluku district and 1% other urban districts in Maluku,” explains Richard Rahakbauw (Deputy Chairman of the Parliament of Maluku province on the rights of the Maluku provincial government revenues.
However, whether the profit sharing is a right? Due to the PI account administration also need to fund the investments needed to support the project Eternal Field, Masela, Arafuru Sea, Maluku. The total funds should be prepared for US $ 1.4 billion, or 10% of the total investment Masela which reached US $ 14 billion were disbursed Inpex Masela Ltd.
Maluku Governor Said Assegaf ensuring, Maluku local government is optimistic the funds needed to manage a 10% participating interest in the participation rights alias Masela it will be available. Maluku provincial government plans to hold talks with the House of Representatives (DPRD) of the fund if the central government will provide 10% participating interest in the block.
By sharing 10% PI, the Maluku provincial government must return profits back to the community there. At least, citizen of MBD is the party entitled to benefit from the presence of management Masela it. The government should menyertkan MBD development, as a form of responsibility to the people.
Conditions MBD district located on the border led to many parties want this region to obtain a special fee. Despite its natural wealth with mining results are quite abundant, but until now people in the District of Southwest Maluku (MBD) still live below the poverty line, it is more due to the high economic turnaround is difficult to reach by public.
Hopefully, by the processing of natural gas in Masela, with the distribution of 10% to the Government of Maluku province, district parent MBD as the location of the gas can be developed into minapolitan location and keep the border region between Indonesia and Timor Leste with favorable economic conditions.
*) The Author Is Maluku Regional Contributors
