Energy Update: ESDM Formulating New Regulation on Gross Split Scheme for PSCs

Energy Update | August 9, 2017
Authors: Riley Smith, Artha Sirait, Ian Saccomanno, Gaofan Zhang, and Karin Silitonga
 
LOOKING AHEAD
 
 

September 7-9: ASEAN Economic Ministers Meeting (AEM)

September 26-28: 2017 Mission to the ASEAN Ministers on Energy Meeting (AMEM)

September 27-29: ASEAN Energy Business Forum (AEBF)/POWERTRENDS 2017

 
THE COUNCIL'S TAKE
 
 

ESDM Formulating New Regulation on Gross Split Scheme for PSCs 
On July 7, Indonesia's Deputy Minister of Energy and Mineral Resources Arcandra Tahar stated that the government is currently formulating a government regulation on the gross split scheme. The new regulation is expected to be completed at the end of July, continuing the initiatives of Minister of Energy and Mineral Resources Regulation No. 8 of 2017 (available here in Bahasa Indonesia). Deputy Minister Arcandra explained that there will be similarities to the recently revised Government Regulation No. 79 of 2010, where there will be regulations on special taxations for the oil and gas sector, in relation to the gross split scheme.

This new regulation continues the efforts that the Indonesian government has begun regarding the implementation of the gross split scheme for production sharing contracts (PSCs). This structure, which was introduced earlier this year, is centered on dividing gross production between the state and PSC Contractors without providing a mechanism for the PSC Contractors to recover sunk costs. Unlike previous PSCs, under this structure, all operation costs and risks of operation are to be carried by the PSC Contractors. The traditional cost recovery mechanism is replaced by the gross split model, with the base split for oil being 57 percent for the state and 43 percent for the Contractor, and the base split for gas being 52 percent for the state and 48 percent for the Contractor. Indonesia’s state-owned Pertamina, was the first company to try this new scheme when it renewed its contract for an offshore oil block in the Java Sea in January.

While the regulation implements changes for new PSCs, all existing PSCs (including those whose extensions have already been approved) shall remain in effect on their current terms and conditions until their expiry date. The regulation, however, will automatically apply to all new PSCs awarded by the government of Indonesia after January 16, 2017. Aside from the new gross split scheme, the general terms of the new PSC are mainly consistent with pre-existing PSCs, such as terms on market obligations and prioritization of local goods and services. These new conditions can possibly be seen as the Indonesian government’s response to creating a more conducive and attractive investment setting, given the recent lukewarm response by global energy companies towards investing in the 15 new blocks offered.  During the Council’s 2017 Indonesia Business Mission, the Deputy Minister of Energy told US companies that if they felt the government’s calculations of risk and relative “split” for a specific project was inaccurate, the government would review counter proposals from the private sector.

Political and Legal Obstacles Likely to Impede China-Philippines Joint Energy Exploration in South China Sea
Remarks by Philippine President Rodrigo Duterte and Chinese Foreign Minister Wang Yi within the last couple of weeks have fanned speculation about potential Sino-Philippine joint energy exploration in the South China Sea.  The remarks are a far cry from China’s current approach towards the Government of Vietnam regarding their offshore energy development effort in waters, which China “claims” are its territory.  However, joint exploration by China and the Philippines in the waterway’s disputed areas faces political and legal obstacles that threaten to scuttle such activities. The speculation stems from a number of comments made by Philippine and Chinese government officials in the days surrounding Duterte’s State of the Nation Address (SONA) on July 24. At a press conference following the nationally televised speech to both chambers of Congress, Duterte said that talks over joint exploration with China in the South China Sea were already under way and intimated that Beijing already has a “partner” for such activities in the body of water, though he refrained from specifying who that partner is. The next day during a two-visit to Manila, Chinese Foreign Minister Wang Yi stated that China supported the idea of joint energy exploration with the Philippines, and warned that unilateral action risked raising tensions to such an extent that any resource development would not be possible. After initially brushing aside legal complications that could stymie joint exploration activities, Philippine Foreign Affairs Secretary Alan Peter Cayetano emphasized that all energy exploration deals Philippines have with foreign partners have to be “in conformity with the Constitution and [Philippines’] local laws and any agreement will not give up a single inch of [Philippines’] territorial integrity.”

In this latest round of flirtation with joint energy exploration in the South China Sea, both Beijing and Manila are attempting to point to history and an improvement in bilateral ties in the year since Duterte took office at the end of last June. However, legal complications and a less than successful outcome from a previous attempt at joint exploration will likely prove to be obstacles to carrying out such activities, even as the Philippines looks for alternative to the Malampaya natural gas field before it is depleted by 2030. On the subject of joint exploration, Secretary Cayetano has referenced an episode that Chinese officials often cite, namely that former Chinese leader Deng Xiaoping suggested joint development to former Philippine President Corazon Aquino in 1986. Framing the proposition in this manner distances it from the Duterte administration’s still domestically controversial détente with China, particularly over South China Sea issues, by placing it within a narrative on joint exploration discussions that precedes the current administration.

A more recent example that the administration is neglecting to mention, though, offers more of a note of caution and emphasizes the potential pitfalls. In 2005 under former Philippine President Gloria Macapagal-Arroyo, the Philippine National Oil Company (PNOC) and the China National Offshore Oil Cooperation (CNOOC) signed a Joint Maritime Seismic Undertaking (JMSU) agreement. Contemporary and subsequent to the JMSU, China increased its overseas development assistance (ODA) for a number of major infrastructure projects, including rail and broadband projects. However, by 2008 the JMSU had fallen apart and several of the major infrastructure projects, most notably the broadband project with Chinese telecom provider ZTE, became wrapped up in a massive corruption scandal. After the deal fell apart, the Philippines found joint development with other companies difficult to pursue as a result, in part, of Chinese intimidation. The Philippines was once again left to try to explore and develop energy resources unilaterally.

The similarities between the 2005 JMSU and the current push for joint exploration and development are apparent, including a renewed preference for ODA to fund infrastructure projects. The main difference is the July 2016 ruling by the Permanent Court of Arbitration (PCA) in The Hague. That decision found that, by interfering in the Philippines’ attempts to exploit resources within its 200-mile exclusive economic zone (EEZ), China had violated the Philippines’ sovereignty. Even in the absence of the PCA’s decision, Beijing would likely take issue with the requirement in the Philippines’ constitution that the latter retain 60% in any joint offshore exploration project within its EEZ. With the decision, however, comes the added wrinkle that any joint exploration deal within the Philippines’ EEZ could be perceived by the public as brushing aside the Philippines’ sovereignty claim over the area and lending legitimacy to China’s own claim. The Duterte administration has thus far brushed off these concerns, citing the successful private joint venture that the Philippines entered into with Royal Dutch Shell to develop the Malampaya gas field as an example. However, the political sensitivities surrounding any joint exploration with China are likely to be a hindrance for successfully carry out such activities.

Ego Syahrial Appointed Director-General of Oil and Gas for Indonesia’s Ministry of Energy and Mineral Resources
Energy and Mineral Resources Minister Ignasius Jonan inaugurated the ministry’s new Director-General for Oil and Gas, Ego Syahrial, on August 2. Ego’s predecessor, I Gusti Nyoman Wiratmaja Puja, who served the office since 2015, will be rotating to the new position as Head of Human Resources Development Agency at the Ministry of Energy and Mineral Resources (ESDM). Ego previously served head of the ESDM’s Geology Agency and in the ministry’s R&D Center for Oil and Gas Technology. Citing Ego’s professional experience as a geologist and academic degrees in petroleum engineering, Jonan said that he hoped the new Director-General for Oil and Gas would improve the oil and gas exploration and further enhanced oil recovery (EOR) activities.

 
IN THIS UPDATE
 
 
Hun Sen seeks hydropower deal with Thailand

Indonesia
AC Energy inks deal to develop small island power projects in Indonesia
Energy minister inaugurates new oil and gas top official
SKK Migas tightens asset control to prevent illegal drilling
PLN seals deal with 53 renewable developers
Indonesia Seeks Chevron, Conoco Proposals in Investment Push
Jonan`s visit to US to speed up negotiations with Freeport
Government to issue regulation on gas-grid
PHE Reports Oil and Gas Production Rise
Government invites firms to join Natuna Gas Consortium
Ministry removes oil, gas exploration tax
Energy Ministry, counterterrorism agency join forces to protect energy assets
SKK Migas Working on 14 Projects to Step Up Production
Ministry expects LNG virtual pipelines to be built by 2018
Indonesia seeks meeting with Freeport CEO to end copper mine dispute
Electricity firm PLN to offer tender for 6,000 MW power plant
Pertamina may get accounting perk to ease burdens
Malaysia’s Genting Oil to revise development plan for Kasuri block
Govt Evaluates Restoration Plan at Chevron Operated Oil Block
Energy ministry to issue gross split policy
BPH Migas starts seeking bids to build gas network worth $89 million in Sumatra
Unsold Oil and Gas Blocks up For Another Auction This Year
Govt considers offering additional split for Pertamina
Govt prioritizes four oil,gas projects
No increase in fuel oil prices: Minister
Indonesian crude price falls to $43.66 per barrel in June 2017

Malaysia
Malaysia's Petronas scraps $29 billion western Canada LNG project - ET EnergyWorld
Thailand's PTT considers taking stake in Malaysia gas facility - ET EnergyWorld
Kudat set to become Sabah's renewable energy dynamo
Khairy: Young Malaysians want clean energy
Difficult to conclude FTA with EU if palm oil continues to be discriminated: Mah
Wan Junaidi: M’sia getting smaller with global warming
M'sia may re-evaluate trade with France over bias against palm biofuels
Electricity tariff to be revised in January
Borneo power grid close to reality
Sarawak Energy in talks for power exchange

Myanmar
Exclusive: China in talks to sell electricity to Myanmar amid warming ties
Solving Myanmar’s power problem
Total in Talks with Myanmar to Build Power Plant, Supply LNG
Myanmar not on track to renewable energy: civil societies
Myanmar opens arms for the first foreign company to build an oil and gas supply base
Myanmar eyes ratifying Paris climate agreement
How to solve Myanmar's chronic electricity problems
Only high-tech firms for hydro, coal power
Remote villages to get solar power in Rakhine
Groups demand compensation for impact of Myanmar-China pipeline
The long wait for clean fuel in Myanmar

Philippines
Ban on open pit mining stays — Cimatu
The ghosts of Bataan: Will Philippines see a new era of nuclear energy soon?
The Danger of China-Philippines South China Sea Joint Development
China backs joint oil drilling with PH in disputed sea
POWERCHINA seals deal with OVPI for US$1b Philippine hydropower project
China’s biggest wind-turbine maker inks deal in PHL
EO cuts red tape in issuance of permits for power projects | BusinessMirror
BMI: Coal to remain primary power source
WESM doing wonders for power sector | BusinessMirror
DOE’s ‘Causers Pay Policy Program’ to start within the year | BusinessMirror
Energy sector seen attracting more investments | BusinessMirror
DOE sets offering of some areas near disputed West Philippine Sea for petroleum exploration  | BusinessMirror
PHL’s goal to be Southeast Asia’s LNG hub gets ‘great interests’ from 5 countries | BusinessMirror
D.O.E., DPWH agreement eases ROW acquisitions

Singapore
Singapore electricity sector to see shake-up with full liberalisation
Singapore's first e-commerce marketplace for energy powers up
EMA eyes establishing regulatory sandbox for the energy sector
Singapore solar deployment quadruples to 130MW in two years
Solar power capacity soars in Singapore
Power grid revamp among projects for $19b R&D fund
Citi warns that Singapore’s oil and gas sector is not out of the woods yet

Thailand
Thailand predicted to dominate renewables capacity growth in SEA
Thailand: Amendments to the Petroleum Act and Petroleum Income Tax Act
Amplifying Thailand's energy storage
Thailand's PTT venture takes $500 million stake in Malaysia LNG project
Petronas delivers first LNG cargo to Thailand under 15-year deal
Thailand's PTT considers taking stake in Malaysia gas facility
An IPO in Thailand sparks push for regional energy development
Kyocera to expand solar energy business in Thailand

Vietnam
Legal framework, roadmap needed for Việt Nam’s wind power
Vietnam's EVN opens new control center for 21 provinces
Vietnam Increases Oil Production
The Price Of Power In Vietnam: Not All Dollars And Cents - Energy and Natural Resources - Vietnam
Việt Nam needs to develop renewable energy
Vietnam should speed up renewable energy development - News VietNamNet
Foreign investment surges 52%
Vietnam plans to sell 34.7 pct stake in major power firm
Vietnam's fuel imports may drop as Dung Quat oil refinery tax cut finally felt
Vietnam plans oil reserves equivalent of 90 days of imports by 2020
Hanoi air polluted by thermal power plants - News VietNamNet
VN to co-operate with Saudi Arabia in renewable energy projects
Coal imports/exports remain tricky problem for Vietnam - News VietNamNet
Dung Quat Oil Refinery seeking loans of $1.26bn to expand - News VietNamNet
Concerns as Vietnam allows coal-fired power plant to dump waste near protected waters - VnExpress International
Vietnam drills for oil in South China Sea
 
ARTICLE CLIPS
 
 
Regional Affairs

Why hybrid power systems can't penetrate Southeast Asia yet Asian Power 7th Jul 2017
Cost and land availability remain as major blocks. When energy storage provider Qinous announced that it will develop hybrid microgrids in Indonesia, industry experts had mixed reactions. For its proponents, hybrid power systems are the dream of the future, integrating traditional power sources with renewable power sources, but experts warn that it can turn into a technical nightmare.

ASEAN should invest 1 percent of GDP into renewable energy Antara News 17th Jul 2017
ASEAN will need to invest one percent of its Gross Domestic Product (GDP) annually into renewable energy capacity to reach its 23 percent target.

Southeast Asia’s Growing Energy Needs CleanTechnica 9th Jul 2017
Southeast Asia is a rapidly developing region of ten countries, consisting of Brunei, Cambodia, Malaysia, Indonesia, Philippines, Vietnam, Singapore, Lao PDR, Thailand and Myanmar. These ten countries are in a regional grouping called the Association of Southeast Asian Nations (ASEAN). According to the ASEAN Centre for Energy (ACE), population will increase to 715 million by 2025 while economic growth is expected to grow on an average of 5% annually. This will contribute to a rapid industrialization and urbanization of the ASEAN nations, leading to a strong growth of 4% in energy demand annually from 2014 to 2025, while electricity demand will double over the same period. To meet the energy needs of the region, installed energy generation capacity has to increase to 428 GW and 550 GW by 2025 and 2040, respectively. Fossil fuels are expected to continue to dominate the fuel mix, with coal and natural gas the main contributors.

Brunei

Electric cars threaten Brunei plan for oil bonanza Financial Times 8th Aug 2017
The energy-rich sultanate of Brunei in Southeast Asia hopes to double oil and gas production over the coming decades but faces hurdles that include falling commercial viability, maritime boundary disputes and Opec-imposed output limits. Energy production in the tiny enclave on the island of Borneo has the potential to climb as high as 800,000 barrels of oil and gas equivalent a day as new geological surveys, extraction techniques and pipeline routes unleash growing reserves, a top official has said. But the plunge in international crude prices has thrown Brunei’s plans into doubt, and highlighted how lower market rates threaten to leave some oil-dependent countries with “stranded assets” deemed uneconomic to exploit. 

Ethos Energy awarded multi-million-dollar contract by Brunei Shell Petroleum World Oil 7th Aug 2017
Ethos Energy has been awarded a multi-million-dollar, five-year maintenance service agreement by Brunei Shell Petroleum for the provision of engineers and improvement of compressor packages on the Champion 7 offshore platform in the South China Sea, off the coast of Brunei. The maintenance service agreement includes provision of two resident Critical Rotating Equipment Engineers to improve the reliability and availability of four compressor packages on BSP’s Champion 7 offshore platform.

Total to boost output Borneo Bulletin 17th Jul 2017
Total hopes to further increase its gas production capacity in Brunei Darussalam as the French oil giant is fast on track to complete its Maharaja Lela Jamalulalam Field (MLJ) offshore platform expansion project. The company is currently working to add a fifth well at the MLJ platform located at Block B Joint Venture (BBJV), Vincent Dutel, who took over as General Manager of Total E&P Borneo BV last year, told the Bulletin in an interview on the sidelines of a recent Hari Raya open house held for the company’s stakeholders and partners at Tarindak D’seni in the capital. TOTAL is currently operating four wells at the site and now waiting for its fifth well to begin production, he said, adding that the company is looking to add more wells.

Politeknik Brunei ties up with PetroEDGE Borneo Bulletin Online 11th Jul 2017
Politeknik Brunei marked another milestone when it forged its first international partnership with Singa-porean oil and gas industry training provider PetroEDGE to provide internship, career and networking opportunities for Politeknik Brunei’s students and lecturers. The Memorandum of Understanding (MoU) was signed between Politeknik Brunei and Singapore’s Asia Edge Pte Ltd, the holding company of PetroEDGE and also NrgEdge Pte Ltd, a professional networking platform for the energy industry, at a ceremony held at Politektnik Brunei in Jalan Ong Sum Ping in the capital yesterday.

Cambodia

Rising Food, Fuel Prices to Push Up Inflation, AMRO Says The Cambodia Daily 5th Jul 2017
Cambodia’s rising wages and consumer demand for food and fuel is expected to push up inflation this year, a regional research agency said following a country visit. The ASEAN+3 Macroeconomic Research Office (AMRO) estimated that Cambodia’s inflation rate would rise to about 4 percent this year, up from 3 percent last year, according to a media statement released on Monday about the visit, which concluded on June 28. Seung Hyun Hong, lead specialist for surveillance at AMRO, said food and fuel costs would drive the inflation, and noted that food items in particular made up about 45 percent of Cambodia’s Consumer Price Index (CPI) basket.

Hun Sen seeks hydropower deal with Thailand Bangkok Post 7th Aug 2017
The Cambodian government is to ask Thailand for help to build a hydropower plant in the border province of Koh Kong. Speaking at a cabinet meeting on Friday, Prime Minister Hun Sen said a possible agreement on the construction will be discussed by ministers from the two countries in Siem Reap from Sept 7-8. “We will use the third joint Cambodia-Thailand cabinet meeting to discuss an agreement to cooperate on building Stung Metek hydropower plant in Koh Kong province, on the border with Thailand’s Trat province,” the Khmer Times on Monday quoted Hun Sen as saying said. If the deal is successful, Hun Sen said it could be a good model for the country to develop its border areas with Laos and Vietnam in the future. “The more we can develop the borders the better it is for our whole country’s development. Countries develop based on two main factors -- domestic stability and development at the borders,” he said.

Indonesia

AC Energy inks deal to develop small island power projects in Indonesia Asian Power 31st Jul 2017
AC Energy will provide funding for projects with sub-50MW capacities. AC Energy International Holdings Pte Ltd., an affiliate of AC Energy Holdings, Inc. (“AC Energy”), which in turn is a wholly-owned subsidiary of Ayala Corporation, entered into a development funding arrangement with UPC Renewables Asia Pacific Holdings Ltd. and UPC Renewables Asia I Limited for the development of small island power projects in Indonesia. 

Energy minister inaugurates new oil and gas top official The Jakarta Post 3rd Aug 2017
Energy and Mineral Resources Minister Ignasius Jonan on Wednesday inaugurated the ministry’s new oil and gas director general, Ego Syahrial.  Ego replaces I Gusti Nyoman Wiratmaja Puja, who was appointed as the head of the ministry’s human resources development agency (BPSDM).

SKK Migas tightens asset control to prevent illegal drilling Antara News 3rd Aug 2017
The upstream oil and gas regulator (SKK Migas) said it is tightening control of its assets of oil and gas reserves to prevent illegal drilling. "Illegal drilling could reduce the state oil production, losses in state income and damage to the environment," senior staff of SKK Migas for southern Sumatra Haswanto Jaya said in Bangka Belitung on Thursday.

PLN seals deal with 53 renewable developers The Jakarta Post 2nd Aug 2017
State electricity company PT Perusahaan Listrik Negara (PLN) signed power purchase agreements (PPAs) with dozens of developers on Wednesday to build 53 renewable power facilities across the country, an event marked with the pulling out of a number of IPPs for other 11 renewable projects. PLN was initially scheduled to seal the deal for 64 renewable projects with a combined capacity of around 380 MW. The projects comprise of 49 mini-hydro power plants, six solar-powered plants, five biogas-fuelled plants and four biomass-fuelled plants, each with a capacity of 10 MW or less.

Indonesia Seeks Chevron, Conoco Proposals in Investment Push Bloomberg 2nd Aug 2017
Indonesia wants Chevron Corp. and ConocoPhillips to submit proposals to renew their licenses to operate oil and gas fields as the former OPEC member seeks to reverse a decline in energy investments. Energy and Mineral Resources Minister Ignasius Jonan asked Chevron executives last week to inform the ministry about the explorer’s plans for Indonesian operations beyond 2021, he said in an interview. The government expects Chevron to make a proposal within this year, he said. Jonan also told Conoco executives to prepare a proposal if they wished to seek an extension for a block set to expire in 2020.

Jonan`s visit to US to speed up negotiations with Freeport Antara News 1st Aug 2017
Minister of Energy and Mineral Resources Ignasius Jonans recent visit to the US was intended to speed up the process of negotiations with PT Freeport Indonesia. "We have met the leadership of Baker Hughes General Electric (BHGE) and Schlumberger to discuss the increase in investment opportunities in Indonesia and with Freeport McMoran CEO Richard Adkerson," he said in a press release received by ANTARA here on Monday.

Government to issue regulation on gas-grid Antara News 31st Jul 2017
Energy and Natural Resources Ministry's Directorate General of Oil and Gas is drafting the Presidential Regulation on gas-grid (jargas) in the country, the planning director, Alimuddin Baso stated here on Wednesday. "Establishing the country's gas network blueprint was not only the program of the ministry but also the provincial governments. Hence, I hope the regulation would later improve the harmonious relations among stakeholders," Baso said in Jakarta.

PHE Reports Oil and Gas Production Rise Tempo 30th Jul 2017
PT Pertamina Hulu Energi (PHE), a subsidiary of state-owned oil and gas company PT Pertamina reported a rise in the production of oil and natural gas by 14 percent on average foe one decade from 2008 until first semester this year. PHE President Director Gunung Sardjono Hadi in his written statement on Saturday said that the company’s oil and gas production in 2008 reached 62 million barrels of oil equivalent per day (boepd), while it reached 199 million boped in the first semester this year.

Government invites firms to join Natuna Gas Consortium The Jakarta Post 28th Jul 2017
After the withdrawal of ExxonMobil from the Natuna Gas Consortium, a concession holder of the East Natuna Block, the Indonesian government is inviting other companies to join the consortium. Energy and Mineral Resources Deputy Minister Arcandra Tahar said on Thursday the government would welcome the participation of any firm, including Inpex Corporation, a Japanese oil company, which is reportedly interested in joining the consortium.

Ministry removes oil, gas exploration tax Antara News 20th Jul 2017
The Ministry of Energy and Mineral Resources exempts oil and gas exploration taxes for those who want to invest in Indonesia. "Government Regulation No. 27 of 2017 on Refundable Operating Costs and the Treatment of Income Tax in Oil and Gas Business Sector is the governments response to complaints on tax rules which is mentioned in Regulation No. 79 of 2010," Secretary General of Oil and Gas at the Ministry, Susyanto, said here on Wednesday.

Energy Ministry, counterterrorism agency join forces to protect energy assets The Jakarta Post 19th Jul 2017
The Energy and Mineral Resources Ministry has teamed up with the National Counterterrorism Agency (BNPT) to protect the country’s energy assets from terrorist attack. Under an agreement between both parties, the BNPT will undertake preventive measures to guarantee the security of all activities in the sector. In addition, they will also exchange data and information.

SKK Migas Working on 14 Projects to Step Up Production Tempo 18th Jul 2017
The Special Unit for Upstream Oil and Natural Gas Business Activities (SKK Migas) chief Amien Sunaryadi said that his office will be working on 14 oil and gas projects to step up national production. The projects include HCML Madura BD, PCML Kepodang-Phase II, PHE WMO PHE 12, PHE WMO PHE 24, E Sengkang-Kampung Baru COMP, Eni Muara Bakau, Petrochina Jabung-Westbetara/Southbetara, JOB Pertamina-Medco Simenggaris, PEP Meatindok, PEP Paku Gajah, PEP CTDP, PEP SKG Musi Timur and PEP-L Parigi. "The projects are expected to increase gas production," Amien Sunaryadi said yesterday at a joint meeting with the House Energy Commission in Jakarta.

Ministry expects LNG virtual pipelines to be built by 2018 Antara News 13th Jul 2017
The Ministry of Energy and Mineral Resources expects virtual pipelines for the distribution of liquefied natural gas (LNG) to be built by 2018. Director General of Oil and Gas IGN Wiratmaja Puja stated here on Thursday that the government is awaiting the results of a study conducted by state-owned oil company Pertamina, National Gas Company PT Perusahaan Gas Negara (PGN), and the state-owned electricity company PT PLN that will build the virtual pipelines.

Indonesia seeks meeting with Freeport CEO to end copper mine dispute Reuters 11th Jul 2017
Indonesia says it will invite the head of mining giant Freeport McMoRan Inc to Jakarta this month to try to settle a festering dispute over a new deal to operate the world's second-largest copper mine. The Arizona-based company resumed copper concentrate exports from the mammoth Grasberg mine in April after a 15-week outage related to the argument over mining rights, but a permanent solution to the row is yet to be found.

Electricity firm PLN to offer tender for 6,000 MW power plant The Jakarta Post 10th Jul 2017
State-owned electricity company PLN has announced a plan to hold a tender for a power plant construction project with a capacity of 6,000 megawatt (MW). The project is part of the government’s 35,000 MW electricity procurement program scheduled for completion by 2019 or 2020. The tender will be directed more toward mine-mouth power plants because they offer a faster process of power yields and cheaper costs as no logistic fees will be charged, said PLN’s procurement director Supangkat Iwan Santoso.

Pertamina may get accounting perk to ease burdens The Jakarta Post 10th Jul 2017
The government is considering allowing state-owned energy giant Pertamina to readjust its accounting method to ease the company’s mounting financial burdens. Pertamina’s negative operating cash flow of US$800 million with $11.4 billion in debts in the first quarter of 2017 has led to a delay in its refinery development projects, including the Cilacap refinery upgrade it will jointly build with Saudi Arabian oil giant Saudi Aramco and the new Tuban refinery with Russia's Rosneft Oil Company.

Malaysia’s Genting Oil to revise development plan for Kasuri block The Jakarta Post 10th Jul 2017
The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) has asked Malaysian oil and gas company Genting Oil to revise its development plan for gas fields at the Kasuri block in West Papua. SKKMigas deems Genting’s plans to be too costly. The gas fields are the Asap, Kido and Merah fields, which are expected to produce 285 million standard cubic feet per day (mmscfd) of gas starting in 2019.

Govt Evaluates Restoration Plan at Chevron Operated Oil Block Tempo 8th Jul 2017
Energy Deputy Minister Arcandra Tahar observed the oil well in Rokan Minas and Duri Block managed by Chevron Pacific Indonesia. Arcandra examine the problem directly himself of the aging pipeline and the crude oil contaminated soil. “I’m checking the suggestion on pipe replacement and environmental restoration,” said Arcandra on Thursday, July 6. He himself observed the old main oil pipe in Riau. He said that the government should at least acknowledged the attempts done by Chevron to maintain the 50 years old main oil pipeline before the restoration process is started.

Energy ministry to issue gross split policy Antara News 8th Jul 2017
The Ministry of Energy and Mineral Resources will issue a Government Regulation on tax system for a gross split-sharing scheme to make oil and gas investments more attractive to investors. Deputy Minister of Energy and Mineral Resources Arcandra Tahar said here, Friday, the regulation that would be issued later this month would set up a tax system similar to the Government Regulation No. 79/2010, through the Government Regulation No. 27/2017 on cost recovery schemes.

BPH Migas starts seeking bids to build gas network worth $89 million in Sumatra The Jakarta Post 7th Jul 2017
The Downstream Oil and Gas Regulatory Agency (BPH Migas) has started the tender process for developing the Pusri-Muntok gas transmission pipeline connecting South Sumatra and Bangka Belitung worth Rp 1.2 trillion (US$89.6 million). BPH Migas head M. Fanshurullah Asa said that interested investors were required to submit their feasibility study and front-end engineering design plans of the project to the agency.

Unsold Oil and Gas Blocks up For Another Auction This Year Tempo 7th Jul 2017
Indonesia’s oil and gas blocks are up for another auction this year as they attracted no investors last year. I Gusti Nyoman Wiratmaja, director general of oil and gas at the Energy and Mineral Resources Ministry, hopes that the auction will be held in the second semester of 2017. “The oil and gas blocks will be up for another auction on the second semester,” Wiratmaja said on Friday, July 7.

Govt considers offering additional split for Pertamina The Jakarta Post 6th Jul 2017
The government is considering providing an additional split as an incentive for state-owned energy giant Pertamina to implement the gross split scheme in some of its oil and gas projects. The government has mandated that Pertamina take over eight expired oil and gas blocks and operate them using a gross split scheme next year. The blocks are the Tuban, Ogan Komering, Sanga-sanga, Southeast Sumatra, North Sumatra Offshore, Tengah, East Kalimantan and Attaka blocks.

Govt prioritizes four oil,gas projects Antara News 5th Jul 2017
Deputy Minister of Energy and Natural Resources Arcandra Tahar here on Tuesday said four oil and gas projects have been included in the National Strategic Projects list because they have large capacity of gas, and therefore, their production will meet future energy needs. The four projects are Tangguh Liquefied Natural Gas (LNG) Train 3 owned by British Petroleum (BP) Berau Ltd, Masela block operated by Inpex Corporation, Indonesia Deepwater Development (IDD) of Chevron, and Jambaran-Tiung Biru unit operated by PT. Pertamina EP Cepu.

No increase in fuel oil prices: Minister Antara News 5th Jul 2017
Energy and Mineral Resources (ESDM) Minister Ignasius Jonan said that the government will not raise the prices of fuel oils and liquefied petroleum gas (LPG) from July 1 to Sept 30, 2017. The ESDM Ministry stated in a press statement here on Tuesday that President Joko Widodo (Jokowi) had announced that the prices of Premium gasoline and diesel oil will not increase from July 1, 2017. The prices will not be raised due to the downward trend in the worlds crude price.

Indonesian crude price falls to $43.66 per barrel in June 2017 Antara News 4th Jul 2017
The Energy and Mineral Resources Ministry announced on Tuesday Indonesian Crude Price (ICP) fell by US$3.43 to US$43.66 per barrel in June 2017 from US$47.09 per barrel a month earlier. "ICP fell for the second month in a row. ICP stood at US$49.56 per barrel in April, fell to US$47.09 per barrel in May, and further went down to US$43.66 per barrel in June," Energy and Mineral Resources Minister Ignasius Jonan said.

Malaysia

Malaysia's Petronas scraps $29 billion western Canada LNG project - ET EnergyWorld ETEnergyworld.com 27th Jul 2017
Malaysian oil company Petronas has scrapped a proposed C$36 billion ($29 billion) liquefied natural gas (LNG) project in western Canada due to weak prices, in a blow to both its global ambitions and Canada's hopes of becoming a major LNG player.

Thailand's PTT considers taking stake in Malaysia gas facility - ET EnergyWorld ETEnergyworld.com 20th Jul 2017
Thailand's state-owned oil and gas giant PTT Plc is considering taking a stake in a natural gas liquefaction plant to be built in Malaysia, a company spokesman said on Thursday.

Kudat set to become Sabah's renewable energy dynamo NST Online 29th Jun 2017
Sabah's northernmost town, Kudat, is undergoing development to transform it into the state's centre for renewable energy (RE). According to Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, Kudat’s sunny climate makes it an ideal location for solar photovoltaic (PV) electricity generation. "To date, some 58 megawatts of solar PV plants have been approved (for construction in Kudat) by (my) Ministry and the Sustainable Energy Development Authority (Seda). "About 2 megawatts will be channelled to the local Kudat grid, while the bulk will be injected into the transmission line for distribution across the whole of Sabah. "About 50 megawatts are entirely funded by the private sector, and will create job opportunities for locals in terms of technical and management (positions)," he said in a statement. The federal government will also look into harnessing wind energy in both Kudat and Kota Marudu, where studies by Universiti Malaysia Terengganu and power agencies from China and Thailand have determined that up to 300 megawatts of wind energy can be generated. There are also plans to set up a research centre for renewable wind and solar PV energy in Kudat, which would see a collaboration between local universities and Asean energy institutes. Ongkili said that these efforts are part of the government's plan to reduce diesel subsidies in the country and diminish greenhouse gas emissions.

Khairy: Young Malaysians want clean energy The Star Online 18th Jul 2017
KUALA LUMPUR: Young Malay­sians want to see a Malaysia that relies mostly on sustainable and green energy in the future.This was one of the aspirations relayed to Youth and Sports Minister Khairy Jamaluddin yesterday during a National Transformation 2050 (TN50) dialogue held between him and young professionals working in Petronas.

Difficult to conclude FTA with EU if palm oil continues to be discriminated: Mah NST Online 17th Jul 2017
Malaysia's free trade agreement talks with the European Union (EU) is not likely to conclude if palm oil continues to be discriminated with tariff and technical trade barriers, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said today. "The EU is our biggest palm oil market. Last year, we exported RM10 billion worth of palm products to the EU. The EU is a very important trading partner," he told reporters after the ministry's Aidilfitri open house celebration here today. "If the EU continues to discriminate against palm oil, I think it would be very difficult to conclude the free trade agreement. We don't want trade barriers to work against our palm oil exports," he said.

Wan Junaidi: M’sia getting smaller with global warming The Star Online 16th Jul 2017
BEIJING: Malaysia will be 10% smaller in less than a century if climate change continues.Natural Resources and Environ­ment Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar warned that global warming was serious and should be tackled to prevent a devastating crisis.

M'sia may re-evaluate trade with France over bias against palm biofuels NST Online 11th Jul 2017
Malaysia will consider to restrict purchase of French products if the country proceeds with discriminating and attacking the palm oil industry, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said today. “The French Environment Minister Nicolas Hulot allegation that palm biofuel is linked to vast deforestation is misplaced. It’s misguided and not true. “France should stop attacking palm oil. France should cherish 60 years of diplomatic relations with Malaysia. If France goes on discriminating the palm oil industry, Malaysia will consider to restrict purchase of French products,” he said.

Electricity tariff to be revised in January The Star Online 9th Jul 2017
  KUALA LUMPUR: The next electricity tariff revision for Peninsular Malaysia will be in January next year. The Government had earlier agreed to maintain the power tariff rebate of 1.52 sen/kWh from July 1 to Dec 30 this year.

Borneo power grid close to reality BorneoPost Online 26th Jul 2017
The Borneo Grid is a step closer towards becoming a reality with the commissioning of the 275kV interconnection linking Mambong in Sarawak and Bengkayang in West Kalimantan in January 2016. This was highlighted at the 5th BIMP EAGA (Brunei, Indonesia, Malaysia and Philippines East Asean Growth Area) meeting for the Power and Energy Infrastructure Cluster (PEIC) here yesterday.

Sarawak Energy in talks for power exchange The Star Online 24th Jul 2017
Sarawak Energy Bhd (SEB) is currently in talks with Brunei and Sabah authorities on proposed power exchange agreements.Chairman Datuk Amar Abdul Hamed Sepawi said the agreements would provide a platform for SEB to develop the proposed Borneo power grid that would pave the way for Sarawak to export electricity to neighbouring Brunei and Sabah. He said SEB, which is now undertaking the fourth hydroelectric dam project in Baleh in central Sarawak, had taken the first step towards establishing a Trans-Borneo power grid with its first interconnection to west Kalimantan, Indonesia, last year.

Myanmar

Exclusive: China in talks to sell electricity to Myanmar amid warming ties Reuters 4th Aug 2017
Energy-hungry Myanmar is in initial talks to buy electricity from China, according to officials and documents reviewed by Reuters, in the latest sign of warming ties with Beijing under leader Aung San Suu Kyi. Since taking office in April last year, Suu Kyi has sought to repair relations that were strained when a previous semi-civilian government in 2011 blocked a China-backed dam, which was supposed to send most of its electricity to China's Yunnan province.

Solving Myanmar’s power problem The Myanmar Times 2nd Aug 2017
ABB believes microgrids are the solution to Myanmar’s power shortage problems. A senior executive at the power grid company explains how it can be done. Khun Chiayot: The Myanmar economy has been growing fast and the country’s infrastructure has not been able to keep up with the demand. Photo - Supplied

Total in Talks with Myanmar to Build Power Plant, Supply LNG Bloomberg.com 20th Jul 2017
Total SA is in talks with Myanmar to supply the country’s most populous city, Yangon, with liquefied natural gas. The French energy giant may also build a power plant, according to Xavier Preel, general manager of Total E&P Myanmar. Total, which sold about 11 million tons of LNG last year, is seeking to expand its footprint in downstream activities like regasification terminals, pipelines and power plants to help create new gas demand as it refocuses away from oil.

Myanmar not on track to renewable energy: civil societies The Myanmar Times 17th Jul 2017
Myanmar not on track to renewable energy: civil societies MYANMAR has been focusing on coal and large hydropower projects and is not on track to develop renewable energy sources, local and international civil societies said in a recent statement.

Myanmar opens arms for the first foreign company to build an oil and gas supply base Mizzima 13th Jul 2017
MOSB Limited (MOSB), has received approval from the Myanmar Investment Commission (MIC) on 11July, 2017 to build and operate a supply base in Mon State, with the endorsement from the Ministry of Energy.

Myanmar eyes ratifying Paris climate agreement Coconuts 12th Jul 2017
Myanmar’s Ministry of Natural Resources and Environmental Conservation, along with other Union-level agencies, submitted a proposal to parliament yesterday recommending the ratification of the Paris Agreement – an international agreement to reduce greenhouse gas emissions.

How to solve Myanmar's chronic electricity problems Frontier Myanmar 12th Jul 2017
UPGRADING MYANMAR’S power sector is vital to expand economic growth. Job creation, tourism, telecommunications, financial services and governance are all placing increasing demands and strains on its power supply.

Only high-tech firms for hydro, coal power The Myanmar Times 11th Jul 2017
Only high-tech firms for hydro, coal power Only companies and countries with access to the latest technologies and technologies which minimise environmental impact will be considered to take part in hydro and coal power projects in Myanmar, a senior official from the Ministry of Electricity and Energy told The Myanmar Times.

Remote villages to get solar power in Rakhine The Myanmar Times 11th Jul 2017
Villages more than 10 miles from the national grid in Rakhine State that do not get electricity within the next 10 years will get solar power systems, said U Nyi Nyi Swe, assistant director of the state’s Rural Development Department.

Groups demand compensation for impact of Myanmar-China pipeline The Myanmar Times 10th Jul 2017
Groups demand compensation for impact of Myanmar-China pipeline Fourteen findings of environmental impact along the Myanmar-China oil and gas pipeline and seven demands by Pyin Oo Lwin farmers in Mandalay have been released and will be submitted to the government.

The long wait for clean fuel in Myanmar Frontier Myanmar 10th Jul 2017
A LINE of around 20 cars, mostly taxis, snakes south along the upper block of Theinbyu Road, in Mingalar Taung Nyunt Township. The drivers are waiting to fill their vehicles at the Max Energy station, yet just a few hundred metres away is a rival operator. The price is virtually the same, but there’s no queue.

Philippines

Ban on open pit mining stays — Cimatu philstar.com 1st Aug 2017
The order banning all prospective open-pit mines in the country will remain in effect and will be taken up at the interagency Mining Industry Coordinating Council (MICC), Environment Secretary Roy Cimatu said.

The ghosts of Bataan: Will Philippines see a new era of nuclear energy soon? Asian Power 31st Jul 2017
Some experts think it may be high time to revist the Bataan NPP. The Philippines, a nation of 100 million inhabitants scattered over 7,000 islands, has all the makings for a solid nuclear industry, as well as tremendous baggage and legacy. Can a new partnership with a nuclear elder statesman see the Southeast Asian archipelago through to a new era?

The Danger of China-Philippines South China Sea Joint Development The Diplomat 27th Jul 2017
While the attention in the Philippines was centered on President Rodrigo Duterte’s second State of the Nation Address (SONA) on July 24, the headline item ended up being his suggestion at a press conference following his remarks that Sino-Philippine joint exploration in the South China Sea could be underway soon. Despite Duterte’s optimism about immediate opportunities, which was echoed by visiting Chinese Foreign Minister Wang Yi during his trip to Manila this week, this masks serious risks related to the past, current context, and the near future.

China backs joint oil drilling with PH in disputed sea Inquirer.net 26th Jul 2017
Chinese Foreign Minister Wang Yi on Tuesday said that he supported the idea of joint energy exploration with the Philippines in the heavily disputed South China Sea, warning that unilateral action could cause problems and damage to both sides.

POWERCHINA seals deal with OVPI for US$1b Philippine hydropower project Asian Power 18th Jul 2017
The proposed pumped-storage hydropower project's capacity is 500MW. Renewable energy developer Olympia Violago Water & Power, Inc. (OVPI) has signed an agreement with the Power Construction Corporation of China (POWERCHINA) for the design, procurement and construction of the proposed 500MW Wawa Pumped-Storage Hydropower Project (Wawa PSP) in Rizal Province, the Philippines. The Wawa PSP is being developed by San Lorenzo Ruiz Builders and Developers and Equis Energy (Equis), one of Asia-Pacific's largest renewable energy independent power producers.

China’s biggest wind-turbine maker inks deal in PHL Business World 13th Jul 2017
Xinjiang Goldwind Science & Technology Co., China’s biggest wind-turbine maker, is expanding its footprint abroad with new deals in the Philippines and Australia. During the second quarter, Goldwind and Shanghai Electric Power Design Institute Co. signed a turbine supply agreement for the 132-megawatt Pasuquin wind farm in the Philippines, the first deal for a Chinese turbine maker in the market, unit Goldwind International Holdings (HK) Ltd. said in an e-mailed report. Goldwind in May agreed to buy the Stockyard Hill wind farm in Australia’s Victoria state from Origin Energy Ltd. The project has planned capacity of 530 megawatts. The deals come as turbine orders in China fall as growth slows. Goldwind International said it has signed contracts for almost 2 gigawatts outside China as of the end of June. Last month, Goldwind reached an in-principal agreement with Aurora Energy Pty to build a 144-megawatt wind farm at Cattle Hill in Tasmania’s Central Highlands, according to the report. Goldwind also presented its new 3-megawatt platform to its key clients in Africa in May, the unit said. -- Bloomberg

EO cuts red tape in issuance of permits for power projects | BusinessMirror BusinessMirror 4th Jul 2017
Industry players will now only need 30 days—from the current 1,340 days—to secure the necessary permits and licenses to start a big-ticket power project, thanks to Executive Order (EO) 30 issued by President Duterte on June 30.

BMI: Coal to remain primary power source BusinessWorld 8th Aug 2017
COAL-FIRED power plants will be the primary driver of growth in the country’s power infrastructure segment in the next 10 years, Fitch Group’s BMI Research said in an Aug. 4 report released on Monday.The research group said coal’s dominance will extend even to the Visayas and Mindanao whose electricity mixes have so far been dominated by renewables, particularly geothermal and hydropower, respectively.

WESM doing wonders for power sector | BusinessMirror BusinessMirror 2nd Aug 2017
Conclusion The Department of Energy (DOE) has approved changes to the Wholesale Eletricity Spot Market (WESM) rules enhancing the market’s design and operations. The approved enhancements are 1) shortening of dispatch interval from one hour to five minutes to lessen intra-hour deviations and imbalances; 2) single-pricing mechanism as a result of the shortened dispatch interval that will no longer require ex-post runs; 3) automatic pricing re-runs that will yield to availability of prices in real-time; 4) reduction of gate closure from one hour to 30 seconds or less that will provide trading participants flexibility in managing risks for unplanned events; and 5) co-optimized energy and reserves that will ensure optimal scheduling of energy and ancillary services.

DOE’s ‘Causers Pay Policy Program’ to start within the year | BusinessMirror BusinessMirror 19th Jul 2017
The Department of Energy (DOE) will no longer allow “negligent and incompetent” power-industry players to pass on to consumers the additional costs incurred in sourcing higher priced electricity when a power outage occurs. Energy Undersecretary Felix William Fuentebella said this will be the objective of the DOE’s soon-to-be-released policy, dubbed as the “Causers Pay Policy Program”.

Energy sector seen attracting more investments | BusinessMirror BusinessMirror 16th Jul 2017
The chairman of the Senate Committee on Energy is optimistic that more investors will be encouraged to closely look at the Philippine energy market as the government jump-starts the implementation of vital reforms to eliminate red tape in the energy sector.

DOE sets offering of some areas near disputed West Philippine Sea for petroleum exploration  | BusinessMirror BusinessMirror 12th Jul 2017
THE Department of Energy (DOE) said on Wednesday that some areas near the disputed West Philippine Sea (WPS) will be offered to investors for petroleum exploration activities.

PHL’s goal to be Southeast Asia’s LNG hub gets ‘great interests’ from 5 countries | BusinessMirror BusinessMirror 12th Jul 2017
The Philippine government has received “great interests” from five countries that want to be involved in the liquefied natural gas (LNG) sector. “Japan, China, Russia, Korea and including Indonesia—these are countries that have shown great interest in the project,” Secretary Alfonso G. Cusi said on Wednesday after the agency’s “E-Power Mo” Energy Consumers and Stakeholders conference in Manila.

D.O.E., DPWH agreement eases ROW acquisitions BusinessMirror 11th Jul 2017
TO fortify the Duterte administration’s aggressive infrastructure development, the Department of Public Works and Highways (DPWH) and the Department of Energy (DOE) inked on Monday a joint circular to ease right-of-way (ROW) acquisitions.

Singapore

Singapore electricity sector to see shake-up with full liberalisation The Business Times 8th Aug 2017
THE future of Singapore's electricity sector is starting to take shape as the country approaches the last leg of a long journey in the liberalisation of the market. With 25 electricity retailers slugging it out for a pie of the market that will be fully liberalised next year, the range of new services they will offer - by tapping various new technologies and new business models - will no doubt bring immense benefits to end-consumers.

Singapore's first e-commerce marketplace for energy powers up Eco-Business 8th Aug 2017
Southeast Asia’s first e-commerce platform for electricity has launched, making it easier for businesses in Singapore to choose renewable energy to power their operations. Electrify.sg was set up by two former Sunseap executives and officially launched on July 12. 

EMA eyes establishing regulatory sandbox for the energy sector Singapore Business Review 8th Aug 2017
They want industry players to test new products and services in a safe space. The Energy Market Authority (EMA) of Singapore is following the footsteps of the Financial Technology sector in setting up a regulatory sandbox for players to test their new products.

Singapore solar deployment quadruples to 130MW in two years PV Tech 2nd Aug 2017
Singapore ended Q1 2017 with 129.8MW of installed solar PV, four times more than the 33.1MW it had at the end of 2014, according to the annual energy report from Singapore’s Energy Market Authority (EMA). EMA said the sharp acceleration in PV uptake had been driven by 955 new installations in 2016 and the first quarter of this year combined. By end Q1 2017, there were a total of 1,898 solar PV installations across Singapore.

Solar power capacity soars in Singapore The Straits Times 1st Aug 2017
The capacity for solar photovoltaic (PV) systems to generate electricity here has nearly quadrupled in the past three years as solar panels have mushroomed all over Singapore. The total installed capacity of such systems has swelled from 33.1MW peak (MWp) in 2014 to 129.8MWp in the first quarter of this year, according to data released by the Energy Market Authority (EMA) yesterday.

Power grid revamp among projects for $19b R&D fund The Straits Times 22nd Jul 2017
Singapore's power distribution system could see its most ambitious overhaul a decade from now, following research on a new Grid 2.0 power system. This new energy grid aims to consolidate gas, solar and thermal energy into a single intelligent network, with the end goal of more efficient, sustainable and resilient energy networks.

Citi warns that Singapore’s oil and gas sector is not out of the woods yet CNBC 5th Jul 2017
Even as Singapore faces brighter economic prospects this year, one sector could remain a sticking point for the export-reliant country. Citi pointed the finger at oil and gas in a research note published on Tuesday. The Southeast Asian city-state is home to the world's largest offshore rig builders, Keppel Corporation and Sembcorp Marine, who had slashed jobs and closed down yards to cope with the downturn.

Thailand

Thailand predicted to dominate renewables capacity growth in SEA Asian Power 31st Jul 2017
Government eyes cutting reliance on imported natural gas. Thailand will be an outperformer in the Southeast Asia region in terms of total installed renewables capacity over the coming decade according to BMI Research.

Thailand: Amendments to the Petroleum Act and Petroleum Income Tax Act Lexology 30th Jun 2017
On June 17, 2017, the Petroleum Act (No. 7) B.E. 2560 and the Petroleum Income Tax Act (No. 7) B.E. 2560 were both enacted, amending their predecessor laws. The amendments to both statutes entered into force on June 23, 2017. The amendments had been anticipated for some time, introducing production sharing agreements (PSAs) and service contracts as alternative host government instruments by which upstream oil and gas producers may invest in Thailand. Traditionally, the concession has been the sole means by which oil and gas could be explored for or produced in Thailand. Acting similarly to a license, the Thai concession stipulates that petroleum is the property of the state, though ownership transfers to the concessionaire at the wellhead. The amendments to the Petroleum Act do not eliminate the potential use of concessions, but rather provide two new instruments for the Ministry of Energy (MOE) to utilize when contracting with petroleum producers. The MOE will now be permitted to define appropriate blocks to be explored and produced by way of a PSA. Sections 53/1 through 53/8 of the Petroleum Act now outline a number of basic principles relating to PSAs and clauses to be found in the PSA itself, including the following: Unlike concessions, under the PSA the Thai state will retain ownership over a portion of the petroleum after it has been produced. Similar to PSAs, the MOE will now be permitted to determine appropriate blocks to be exploited via a service contract. Unlike the PSA or the concession, where the private oil and gas producer obtains ownership in some or all of the produced petroleum, produced petroleum under the service contract belongs exclusively to the Thai state.

Amplifying Thailand's energy storage Bangkok Post 2nd Aug 2017
Thailand's ambitious plan to be a global production base for energy storage technology is shaping up well, with the government lending full support at a time when private firms have been pouring billions of baht into developing the power storage sector, say industry officials and experts. Deputy Energy Minister Surasak Srisak said the government plans to include the energy storage issue in the latest revision of its national renewable development plan (PDP:2015-36). That move comes as the Energy Ministry has been monitoring the issue for some time, having found that it should promote energy storage technology alongside plans to promote renewable energy to help mitigate potential blackouts and other problems affecting the country's energy grid. He said lending full support to encourage rising investment in renewable power without implementing new measures to develop storage facilities to secure power supply could result in economically adverse power disruptions, as has happened in the United States.

Thailand's PTT venture takes $500 million stake in Malaysia LNG project Reuters 27th Jul 2017
PTTEP, the exploration and production arm of Thailand's oil and gas giant PTT Group, said on Thursday their liquefied natural gas (LNG) venture had taken a $500 million stake in a project with Malaysia's Petronas. Announcing second-quarter results - which were roughly in line with analysts' expectations - PTTEP said it was looking to expand further in Southeast Asia and was awaiting the results of a few bid proposals for exploration projects in the region. It said a joint venture with its parent company - PTT Global LNG Company - had bought a 10 percent stake in liquefaction plant MLNG Train 9 in Malaysia. The announcement comes barely a day after Petronas scrapped a proposed C$36 billion ($29 billion) LNG project in Canada due to weak prices, dealing a blow to the Malaysian state company's global ambitions and leaving it with a bill for work already done. "Investment with a leading company, Petronas, would support the LNG business of the company in expanding our operations in Malaysia in the future," PTTEP said in a statement.

Petronas delivers first LNG cargo to Thailand under 15-year deal The Star Online 21st Jul 2017
Petroliam Nasional Bhd (Petronas) has delivered its first liquefied natural gas (LNG) cargo to Thailand under a long-term sale and purchase agreement (SPA) between its subsidiary Petronas LNG Ltd and PTT Public Co Ltd.   The national oil company said the cargo was delivered on Thursday, July 20, to the Map Ta Phut Terminal at Rayong on the east coast of the Gulf of Thailand from the Petronas LNG Complex in Bintulu, Sarawak. Petronas’ and PTT’s management were present at the terminal to witness the delivery via LNG vessel Puteri Intan Satu, which is owned and operated by Petronas’ subsidiary MISC Bhd.    Petronas said Petronas LNG was committed to delivering up to 1.2 million tonnes per annum (MTPA) of LNG to PTT for a period of 15 years. It was previously reported that Thailand’s energy policy committee had in December last year approved state-owned PTT’s proposal to buy 1 MTPA of LNG from Petronas this year and in 2018, and 1.2 MTPA from 2019 onwards.

Thailand's PTT considers taking stake in Malaysia gas facility Reuters 20th Jul 2017
Thailand's state-owned oil and gas giant PTT Plc is considering taking a stake in a natural gas liquefaction plant to be built in Malaysia, a company spokesman said on Thursday. PTT's board will on Friday consider the project, to be built with Malaysia's Petronas, making a decision on the size of any potential stake, the spokesman added. That came after the Bangkok Post on Wednesday cited Wirat Uanarumit, chief operating officer of PTT's upstream petroleum and gas business, as saying that the company was looking to hold a 10-percent stake in the new facility.

An IPO in Thailand sparks push for regional energy development UPI 19th Jul 2017
A regional development bank said it spent more than $50 million on shares in a Thai power company in order to help develop renewable energy in Southeast Asia. The Asian Development Bank acquired 123 million shares in the initial public offering for B. Grimm Power Public Co., one of the largest private energy companies in Thailand. The power company operates 12 natural gas-powered plant, 15 solar power plants and plans to more than double its renewable energy generation capacity to 30 percent. Jackie Surtani, who directs private sector operations for the ADB, said the investment will help B. Grimm diversify and expand its reach into developing countries in Southeast Asia. "In doing so, the project will help the Association of Southeast Asian Nations in its transition to a low-carbon economy through the development of renewable energy," she said in a statement.

Kyocera to expand solar energy business in Thailand Asian Power 17th Jul 2017
It eyes almost tripling its sales in the country. Kyocera Corporation is expanding its solar energy business in Thailand, with plans to increase sales in the country by 2.5 times during the year ending March 31, 2018 compared with the previous year. Environmental, social and governance (ESG) investing is expanding globally as well, with 30% of total managed assets said to be considering ESG factors.

Vietnam

Legal framework, roadmap needed for Việt Nam’s wind power vietnamnews.vn 31st Jul 2017
Việt Nam needs to develop a legal framework and feasible roadmap to turn its wind energy potential into reality, which will help to meet the country’s rapidly rising electricity demand, experts have said. Tobias Cossen, head of GIZ’s project on supporting the up-scaling of wind power said that Việt Nam has great potential to develop wind power as the country possesses around 3,000 km of coastline with excellent wind conditions. The Vietnamese government has approved several programmes to encourage the development of renewable energy in the country. As many as five wind farms with total capacity of almost 200MW are currently in operation. More than 50 other projects are in the construction and planning phase. However, a number of regulatory and market barriers as well as the lack of capacity have been identified as obstacles for investors in wind projects, according to Cossen. Specifically, the major challenge for wind power investment is the Feed in Tariff (Fit) of 7.8 US cent/kWh, which is too low for investors to overcome the perceived risks for wind power development.

Vietnam's EVN opens new control center for 21 provinces Asian Power 7th Jul 2017
The center is to remotly monitor medium and low-voltage grids. In June 2017, Siemens and the state-run energy company, Electricity of Vietnam Southern Power Corporation (EVN SPC), opened a new main control center in Ho Chi Minh City. The Vietnamese energy provider had Siemens develop, design and build the facilities in the main control center in order to be able to remotely monitor and control the medium- and low-voltage grids in 21 provinces in the southern part of the country. This project will significantly improve the availability and efficiency of the distribution grids in this region and reduce power outages, thus contributing to the economic development.

Vietnam Increases Oil Production Prensa Latina - Agencia Latinoamericana de Noticias 8th Aug 2017
The Vietnam Oil and Gas Group (PetroVietnam) produced 9,230,000 tons of oil in the first seven months of the year, accounting for $12.2 million revenues, according to official sources today.

The Price Of Power In Vietnam: Not All Dollars And Cents - Energy and Natural Resources - Vietnam mondaq 7th Aug 2017
It's clear that meeting Vietnam's substantial energy demands over the coming years is a tall order even in the best of circumstances. It is hoped that renewable energy sources will play a large part in the country's energy generation landscape, however, the dominance of large SOEs is blocking the entry of more efficient private operations and slowing down the pace of change.

Việt Nam needs to develop renewable energy vietnamnews.vn 7th Aug 2017
Associate Professor Nguyễn Minh Duệ, chairman of the Việt Nam Energy Science Council speaks to Tuổi trẻ (Youth) newspaper about the need to develop renewable energy in Việt Nam.

Vietnam should speed up renewable energy development - News VietNamNet VietnamNet 7th Aug 2017
Vietnam should speed up renewable energy development Vietnam should develop renewable energy sources in a timely manner in order to meet the rising demand for electricity in the years to come, according to industry watchers.

Foreign investment surges 52% vietnamnews.vn 28th Jul 2017
Việt Nam attracted US$21.93 billion in foreign direct investment (FDI) during the first seven months of this year, a surge of 52 per cent year-on-year, the highest rate since 2011, according to the latest Foreign Investment Agency statistics.

Vietnam plans to sell 34.7 pct stake in major power firm The Times of India 27th Jul 2017
Vietnam plans to sell a 34.7 percent stake in power producer Vinacomin Power Holding Corp , worth about 3.3 trillion dong ($145.4 million), the government said on its website on Thursday.

Vietnam's fuel imports may drop as Dung Quat oil refinery tax cut finally felt The Times of India 25th Jul 2017
Vietnam's fuel imports may drop as the effects of a tax cut on sales of gasoline and diesel fuel from the country's Dung Quat oil refinery start to be felt as earlier term contracts expire.

Vietnam plans oil reserves equivalent of 90 days of imports by 2020 Reuters 19th Jul 2017
Vietnam's prime minister has approved a plan for the country's total crude oil and oil product stocks to be at least 90 days' worth of net imports by 2020.

Hanoi air polluted by thermal power plants - News VietNamNet VietnamNet 12th Jul 2017
Inspection tours by the General Directorate of Environment at 19 thermal power plants have found that regulations on environmental protection have been violated at many plants. 

VN to co-operate with Saudi Arabia in renewable energy projects vietnamnews.vn 12th Jul 2017
Việt Nam’s FECON Corporation and Saudi Arabi’s Acwa Power on Monday signed a Memorandum of Understanding (MOU) for co-operation on joint development of renewable energy projects in Việt Nam.

Coal imports/exports remain tricky problem for Vietnam - News VietNamNet VietnamNet 11th Jul 2017
While a large amount of coal was exported in the first months of the year, most coal used in the country was imported.  Coal exports have had a sharp export growth rate. GDC said that coal exports from the beginning of the year to May 15 reached 709,624 tons, worth $106.73 million, which represented an increase of 375 percent in quantity and 660 percent in value in comparison with the same period last year.

Dung Quat Oil Refinery seeking loans of $1.26bn to expand - News VietNamNet VietnamNet 11th Jul 2017
Dung Quat Oil Refinery seeking loans of $1.26bn to expand The Binh Son Refining and Petrochemical Co. (BSR), the operator of the Dung Quat Oil Refinery in central Quang Ngai province, plans to take out loans of a combined $1.26 billion to expand its capacity, according to a plan unveiled by the Ministry of Industry and Trade.

Concerns as Vietnam allows coal-fired power plant to dump waste near protected waters - VnExpress International VnExpress International – Latest news, business, travel and analysis from Vietnam 11th Jul 2017
Vietnam’s environment ministry has given a power company permission to dump nearly one million cubic meters of mud from a coastal thermal plant into the sea.

Vietnam drills for oil in South China Sea BBC News 5th Jul 2017
Vietnam has begun drilling for oil in an area of the resource-rich South China Sea also claimed by China. An oil industry consultant told the BBC that a drilling ship on contract to international firm Talisman-Vietnam was working off Vietnam's south-east coast.