DOCSLIB.ORG

Depleted Oil Field Is Window Into China's Corruption Crackdown

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Depleted Oil Field Is Window Into China's Corruption Crackdown CHINA An $85 million deal involving three blocks in southern Sumatra and a Chinese oil giant is under investigation. Depleted oil field is window into China’s corruption crackdown BY CHARLIE ZHU, DAVID LAGUE AND FERGUS JENSEN SPECIAL REPORT 1 CHINA CORRUPTION CRACKDOWN LIMAU, INDONESIA, DECEMBER 19, 2014 n a muddy clearing in southern Sumatra, a portable diesel power plant hammers Iaway alongside a wellhead, struggling to extract crude from a depleted reservoir that lies below farmland and rubber plantations. It was much easier to extract cash from a state-owned Chinese oil giant. A subsidiary of China National Petroleum Corporation (CNPC), PetroChina Daqing Oilfield, paid $85 million to pump from three blocks in the ageing Limau field un- der a 2013 contract with Indonesia’s state- owned oil company, Pertamina, according to senior Chinese oil industry officials with knowledge of the transaction. Today, the three Limau blocks squeeze PETRO PURGE: At least a dozen former top managers at China National Petroleum Corporation have out less than three percent of the oil been arrested as part of President Xi Jinping’s anti-corruption drive. Zhou Yongkang (below), a former pumped when output peaked in the 1960s. CNPC boss and rival to Xi, faces charges of corruption and leaking state secrets. A wellhead atop the When PetroChina Daqing announced the depleted Limau field in Indonesia (cover). REUTERS/BOGDAN CRISTEL/JASON LEE/FERGUS JENSEN deal, it didn’t disclose the seller, the price or any other financial details. “We all know it is a ridiculous invest- ment, but I have no idea where the mon- ey has actually ended up,” says a senior billion Chinese oil industry official who has seen $25 The amount that CNPC spent on budget figures for the Limau wells. The management at CNPC is now in- overseas assets in the five years vestigating the deal as part of a sweeping to 2013. crackdown on official graft by Chinese President Xi Jinping that has destroyed a Source: Based on CNPC data powerful political rival who once ran the oil giant – Zhou Yongkang. The anti-corrup- tion campaign is cutting a swathe through Indonesia’s anti-graft watchdog told Indonesia in which the CNPC group paid the senior management ranks at CNPC, Reuters last month that it plans to probe a combined $350 million to buy assets from with at least a dozen former top managers the country’s oil sector. Satoto Agustono, little-known private companies. “Basically, under arrest. director of development at Pertamina EP, they are worthless,” says the same oil in- There is vast scope for corruption inside a unit of Pertamina, told Reuters he had no dustry official who has seen the budgeting the CNPC empire, which includes its huge knowledge of the price of the Limau deal figures for the Limau deal. “It has caused listed subsidiary PetroChina Company Ltd but said oil companies sometimes paid top heavy losses for the state.” and hundreds of other units, say company dollar for risky investments. CNPC chairman Zhou Jiping told an officials familiar with the investigation. The “The oil and gas business is really crazy,” internal meeting in August that the com- group is one of the world’s biggest corpora- he said. “We do not know why they want to pany would “actively explore” new ways of tions, last year reporting revenues of $432 buy at high prices when production is low. conducting investigations in its overseas billion. Current and former senior compa- But, some people, they buy it. This is crazy.” operations as part of its crackdown on cor- ny officials say it is difficult to keep track of Chinese oil industry officials say they ruption, the company said in a statement all the businesses and deals underway. have identified two other suspect deals in on its website. A CNPC group spokesman SPECIAL REPORT 2 CHINA CORRUPTION CRACKDOWN SPENDING SPLURGE: Declining output Indonesia is relying heavily on imported oil Former CNPC head Jiang as production from its ageing oilfields falls. Jiemin spearheaded the In a bid to boost output, the government acquisition of offshore oil is encouraging investment from foreign oil reserves. He is now under companies including China’s CNPC group. arrest and has been expelled from the party. PRODUCTION VS. CONSUMPTION REUTERS/PAUL YEUNG Million barrels per day Production Consumption 1.5 1.0 in Beijing declined to answer questions to become the most senior leader to be from Reuters about the suspect deals. prosecuted since the 1981 trial of the Gang The story of the Limau transaction pro- of Four, driving figures behind the Cultural vides a window into the mechanics of what Revolution. 2002 2009 Chinese oil industry officials say is one sus- On December 6, the official Xinhua Becomes net Leaves pect deal. News Agency said Zhou had been ex- importer of oil OPEC Interviews with CNPC officials, searches pelled from the ruling Communist Party. 0.5 of company filings and documents related The statement accused him of corruption '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 to the agreement reviewed by Reuters show and leaking state secrets. Zhou’s case has PetroChina Daqing paid for control of a been handed to judicial authorities, it said CNPC IN WESTERN INDONESIA shell company registered in a tax haven, the – terminology that usually means criminal Oil/gas blocks British Virgin Islands (BVI). This transac- charges will follow. It is not known if he tion allowed PetroChina Daqing to take has a lawyer. over the operation of the three Limau blocks. Zhou built an extensive power base at Only a trickle of oil has been pumped CNPC as he rose to the top of the oil gi- MALAYSIA since the deal was announced in March ant in the 1990s. At least 11 other former Sumatra 2013, according to Chinese and Indonesian top CNPC group officials are under ar- INDONESIA SINGAPORE oil industry officials with knowledge of the rest. Two – former CNPC vice president SP field. Wang Yongchun and the former head of the The probes into the Indonesian deals group’s Indonesian operations, Wei Zhigang JABUNG are part of a much wider corruption in- – were involved in assessing the Limau in- vestigation in China that has sparked the vestment, according to Chinese oil industry SOUTH JAMBI ‘B’ LIMAU biggest political upheaval since the 1989 officials. Wang Yongchun was also president BANGKO Tiananmen protests. of PetroChina Daqing Oilfield. Zhou Yongkang, born in 1942, was a “The investigations into Wang and Wei 200 miles Jakarta member of China’s elite Politburo Standing are linked to but not limited to the Limau Committee until his retirement in 2012. A acquisition,” said one of the Chinese oil in- 200 km former head of China’s feared internal se- dustry officials. Sources: EIA; Wood Mackenzie; China National curity apparatus, he is now almost certain Two months before he was arrested in Petroleum Corporation. SPECIAL REPORT 3 CHINA CORRUPTION CRACKDOWN August last year, Wang said the company was keen to expand in Indonesia, according Probing ‘worthless’ deals to the company’s website. Wang was quot- ed hailing the Limau deal as an example of BY CHARLIE ZHU AND DAVID LAGUE for this field was $120 million. “We don’t deepening cooperation. even know if there are any reserves there,” In a November 28 report, the Communist It is particularly difficult to monitor smaller says a veteran Chinese oil industry official Party mouthpiece, the People’s Daily news- offshore investments in high risk oil and gas who visited Indonesia last year. paper, confirmed that graft busters were exploration, say current and former officials Madura has also failed to deliver for probing Zhou’s network in the petroleum at China National Petroleum Corporation Hong Kong-listed United Energy Group industry. It was the first official acknowl- (CNPC). Deals where managers engineer Ltd, a company with close ties to CNPC. In edgement the CNPC arrests were tied to kickbacks can be disguised as misjudgements June 2009, it took a 10 per cent exploration him. or blamed on faulty data, they say. stake in the field for $21.505 million. In a CNPC has disowned Zhou. “We will Alongside the investigation into the stock exchange filing, United Energy said it never provide shelter for corrupt elements,” Limau deal, CNPC officials are also probing had bought its stake from a BVI registered the company pledged in a statement coin- two other suspect oil deals in Indonesia in company, Madura Petroleum. ciding with the news of his arrest. which the group paid a combined $350 United Energy has made scant mention of Under former CNPC head Jiang Jiemin, million. the deal in its filings. A spokesman for United who was arrested last year, the group “Basically, they are worthless,” says an Energy, Zhao Pingshun, said there had been launched a headlong spending splurge, oil industry official who also investigated the no output from the field because it was still heeding a political command to secure Limau deal. “It has caused heavy losses for in the exploration stage. “We haven’t made more offshore oil reserves. In the five years the state.” any major progress in the project so there to 2013, the company spent $25 billion on In the first of these suspect deals, CNPC’s is not much information we can share with overseas assets and $241 billion on capital flagship listed unit, PetroChina Co Ltd, you,” he said. expenditure. announced in 2009 that it had acquired an In an undisclosed transaction last year, Investigators are now scrutinizing the 80 per cent stake in the Madura block in PetroChina paid about $230 million for an group’s domestic and offshore spending on East Java without providing any details of the exploration contract for a field in Sumatra, oilfields, oil service contracts and equip- vendor, price or description of the asset.
Load more

Recommended publications
  • Borderless, Boundless
    Borderless, boundless. 2011 Greater China outbound M&A spotlight Chinese Services Group Contents 1 Foreword 2 Executive summary 4 Methodology 5 Greater China outbound M&A activity 12 Consumer Business & Transportation M&A activity 18 Energy & Resources M&A activity 25 Global Financial Services Industry M&A activity 30 Life Science & Health Care M&A activity 34 Manufacturing M&A activity 40 Technology, Media & Telecommunications M&A activity 46 Private equity M&A activity 54 A view from the other side - a target's perspective of a cross-border M&A deal 57 The impact of the 12th Five Year Plan on outbound M&A opportunities 60 The regulatory roundup 64 Introducing the Chinese Services Group 65 Expanding around the globe… 66 Deloitte's CSG network 67 Contacts 68 Notes Foreword Barclays, IBM, Sony, Tommy Hilfiger and Volvo - all renowned, market-leading champions in their particular fields - and all owned, or partly owned, by a business headquartered in Greater China. As the list goes on, individual names become unimportant. What is of importance is the irrefutable fact that cross-border acquisitions emanating from Greater China have grown of late, not only in stature, as the above can attest to, but also in scope and breadth. The stature of deal-making in this particular market has certainly increased over time. In 2005, less than one-out-of-five (19 percent) transactions were valued at more than US$250m. Over the first six months of 2011, this proportion rose to 27 percent, with the market's growing maturity also evident from a global standpoint.
    [Show full text]
  • 2016 EITI Report
    Contents List of Abbreviations ......................................................................................................................6 Executive Summary........................................................................................................................8 1. EITI in Iraq .............................................................................................................................. 14 1.1. About the Extractive Industries Transparency Initiative (EITI) ................................... 14 1.2. EITI Implementation in Iraq .................................................................................................. 14 1.3. EITI Governance and leadership in Iraq (Requirement 1.1 – 1.3) ................................ 16 1.4. MSG Governance (Requirement 1.4) .................................................................................. 17 1.5. MSG Workplan (Requirement 1.5) ....................................................................................... 18 2. Legal Framework and Fiscal Regime for the Extractive Industries (Requirement 2.1) . 20 2.1. National Governance Structures ......................................................................................... 20 2.2. Overview of the regulations applicable to extractive industries ................................. 21 2.2.1. Extractive sector regulations in federal Iraq ........................................................................ 21 2.2.2. Overview of the corporate income tax and withholding tax regimes applicable
    [Show full text]
  • Structuring Petroleum-Sector Institutions
    Briefing October 2014 Considerations for Indonesia’s Universitas New Government: Structuring Gadjah Mada Petroleum-Sector Institutions Patrick Heller and Poppy Ismalina As Indonesia’s new government seeks to maximize the country’s benefits from the petroleum sector, one of its most important tasks will be to resolve the longstanding uncertainty surrounding the roles and responsibilities of the public institutions responsible for managing the sector. This briefing offers a perspective based on global experience in oil and gas as well as Indonesia’s own history. WHY PETROLEUM-SECTOR INSTITUTIONAL STRUCTURE MATTERS Effectively allocating roles and responsibilities among ministries, Pertamina, and other government agencies is crucial if Indonesia is to tackle the challenge of reinvigorating its petroleum sector. Indonesia faces declining petroleum reserves and production, rising consumption, costly fuel subsidies and a desire to boost the performance of Pertamina. The country therefore requires an institutional structure that will enable it to execute a coherent strategy and that empowers the assigned entities to manage exploration, production, relationships with contractors, tax collection and the enforcement of Indonesia’s laws and contracts. Most importantly, the government must decide whether to house regulatory (i.e., monitoring and oversight) responsibilities within Pertamina or in another body. The new government has an opportunity to reconcile the Constitutional Court’s decision on BP Migas and build a coherent, effective, forward-looking structure. In the aftermath of the 2012 Constitutional Court decision—which invalidated the role of independent regulator BP Migas as established in 2001 on the grounds that it did not meet the state’s responsibilities under Article 33 of the constitution—there has been confusion about the present and the future of government responsibility for the petroleum sector.
    [Show full text]
  • Asia's Energy Security
    the national bureau of asian research nbr special report #68 | november 2017 asia’s energy security and China’s Belt and Road Initiative By Erica Downs, Mikkal E. Herberg, Michael Kugelman, Christopher Len, and Kaho Yu cover 2 NBR Board of Directors Charles W. Brady Ryo Kubota Matt Salmon (Chairman) Chairman, President, and CEO Vice President of Government Affairs Chairman Emeritus Acucela Inc. Arizona State University Invesco LLC Quentin W. Kuhrau Gordon Smith John V. Rindlaub Chief Executive Officer Chief Operating Officer (Vice Chairman and Treasurer) Unico Properties LLC Exact Staff, Inc. President, Asia Pacific Wells Fargo Regina Mayor Scott Stoll Principal, Global Sector Head and U.S. Partner George Davidson National Sector Leader of Energy and Ernst & Young LLP (Vice Chairman) Natural Resources Vice Chairman, M&A, Asia-Pacific KPMG LLP David K.Y. Tang HSBC Holdings plc (Ret.) Managing Partner, Asia Melody Meyer K&L Gates LLP George F. Russell Jr. President (Chairman Emeritus) Melody Meyer Energy LLC Chairman Emeritus Honorary Directors Russell Investments Joseph M. Naylor Vice President of Policy, Government Lawrence W. Clarkson Dennis Blair and Public Affairs Senior Vice President Chairman Chevron Corporation The Boeing Company (Ret.) Sasakawa Peace Foundation USA U.S. Navy (Ret.) C. Michael Petters Thomas E. Fisher President and Chief Executive Officer Senior Vice President Maria Livanos Cattaui Huntington Ingalls Industries, Inc. Unocal Corporation (Ret.) Secretary General (Ret.) International Chamber of Commerce Kenneth B. Pyle Joachim Kempin Professor; Founding President Senior Vice President Norman D. Dicks University of Washington; NBR Microsoft Corporation (Ret.) Senior Policy Advisor Van Ness Feldman LLP Jonathan Roberts Clark S.
    [Show full text]
  • Chinabrief in a Fortnight
    ChinaBrief Volume XIV s Issue 13 s July 3, 2014 VOLUME XIV s ISSUE 13 s JULY 3, 2014 In This Issue: IN A FORTNIGHT Brief by David Cohen 1 WITH ZHOU’S CIRCLE DOWN, XI’S PURGE MAY TURN TO HU By Willy Lam 3 CHINA’S STRATEGIC ROCKET FORCE: SHARPENING THE SWORD (PART 1 OF 2) By Andrew S. Erickson and Michael S. Chase 6 China’s PLA Second Artillery appears more confident, having made progress CHINESE HIGH SPEED RAIL LEAPFROG DEVELOPMENT on the “conventionalization of deter- By Clark Edward Barrett 10 rence” (Source: China Military Online) INDONESIA AVOIDS OPEN TERRITORIAL DISPUTE WITH CHINA, DESPITE CONCERNS China Brief is a bi-weekly jour- By Prashanth Parameswaran 13 nal of information and analysis CORRECTIONS 16 covering Greater China in Eur- asia. China Brief is a publication of In a Fortnight The Jamestown Foundation, a private non-profit organization ON PARTY’S BIRTHDAY, PROMISES OF A CONTINUED PURGE based in Washington D.C. and is edited by David Cohen. By David Cohen The opinions expressed in China Brief are solely those On the 93rd anniversary of the founding of the Chinese Communist Party of the authors, and do not (CCP), General Secretary Xi Jinping highlighted his campaign to fight corruption necessarily reflect the views of and improve cadres’ “work style,” making it the focus of a speech delivered at The Jamestown Foundation. a Politboro meeting the day before the anniversary (Xinhua, June 30). Official commentary surrounding top-level arrests approved at the same meeting makes it clear that this purge is intended to continue indefinitely.
    [Show full text]
  • China Turns up Heat on Ex-Security Chief with Crash Probe
    CHINA PRIME TARGET: Zhou Yongkang was head of domestic security and a member of the Communist Party Standing Politburo Committee, making him one of the most powerful people in China, until he stepped down in 2012. REUTERS/STRINGER Authorities have begun investigating a crash in 2000 that killed the first wife of Zhou Yongkang, the prime target in China’s biggest corruption scandal, Reuters source says. China turns up heat on ex-security chief with crash probe BY BENJAMIN KANG LIM, CHARLIE ZHU AND DAVID LAGUE SPECIAL REPORT 1 CHINA’S POWER STRUGGLE BEIJING/HONG KONG, SEPTEMBER 12, 2014 ittle is known about the exact circum- stances in which Wang Shuhua was Lkilled. What has been reported, in the Chinese media, is that she died in a road ac- cident sometime in 2000, shortly after she was divorced from her husband. And that at least one vehicle with a military license plate may have been involved in the crash. Fourteen years later, investigators are looking into her death. Their sudden inter- est has nothing to do with Wang herself. It has to do with the identity of her ex-hus- band – once one of China’s most powerful men and now the prime target in President Xi Jinping’s anti-corruption campaign. Investigators are probing the death of the first wife of Zhou Yongkang, China’s HUNTING TIGERS: President Xi Jinping has launched the biggest corruption crackdown since the retired security czar, a source with di- communists came to power in 1949, going after “tigers” or high-ranking officials as well as “flies”.
    [Show full text]
  • Media Monitoring Online Pertamina Projects Stall Amid Policy
    Media Monitoring Online Pertamina Projects Stall Amid Policy Flip-flops, Refinery Blaze Tanggal : Rabu , 31 Maret 2021 Media : The Jakarta Post Halaman : 2 Wartawan : Vincent Lingga Muatan Berita : Netral Narasumber : None () Rubrik : Headlines Topik : Kilang Minyak Nilai Iklan : Rp. 78.000.000 This is really bad news for energy, an extremely vital component of the economy. While Pertamina’s four refinery upgrade projects and two greenfield refinery projects launched in 2014 have been delayed by several years or even canceled, an inferno fire gutted the state-owned oil and gas giant’s newest refinery at Balongan, West Java, early Monday morning. Even though Pertamina has made assurances that the incident would not disrupt fuel supply and distribution, we cannot help but be concerned about the damage incurred on the downstream oil industry. Already Southeast Asia’s largest net importer of crude oil, gasoline and gasoil at an annual volume of almost 1 million barrels per day (bpd), Indonesia may have to import more refined fuel until the Balongan refinery resumes production at its 125,000 bpd full capacity. Pertamina’s six old refineries, which have a combined capacity of 1 million bpd, are able to produce only 850,000 bpd of refined fuel, barely half of national demand. Importing more fuel means stronger pressures on the balance of payments and larger drain on the foreign exchange reserves. The Balongan refinery, which came on stream in 1994, was the last plant Pertamina built. Many new greenfield and expansion projects that have been planned since then have suffered cancellations or prolonged delays due to the country’s notorious policy flip-flops and bureaucratic barriers.
    [Show full text]
  • Process Technologies and Projects for Biolpg
    energies Review Process Technologies and Projects for BioLPG Eric Johnson Atlantic Consulting, 8136 Gattikon, Switzerland; [email protected]; Tel.: +41-44-772-1079 Received: 8 December 2018; Accepted: 9 January 2019; Published: 15 January 2019 Abstract: Liquified petroleum gas (LPG)—currently consumed at some 300 million tonnes per year—consists of propane, butane, or a mixture of the two. Most of the world’s LPG is fossil, but recently, BioLPG has been commercialized as well. This paper reviews all possible synthesis routes to BioLPG: conventional chemical processes, biological processes, advanced chemical processes, and other. Processes are described, and projects are documented as of early 2018. The paper was compiled through an extensive literature review and a series of interviews with participants and stakeholders. Only one process is already commercial: hydrotreatment of bio-oils. Another, fermentation of sugars, has reached demonstration scale. The process with the largest potential for volume is gaseous conversion and synthesis of two feedstocks, cellulosics or organic wastes. In most cases, BioLPG is produced as a byproduct, i.e., a minor output of a multi-product process. BioLPG’s proportion of output varies according to detailed process design: for example, the advanced chemical processes can produce BioLPG at anywhere from 0–10% of output. All these processes and projects will be of interest to researchers, developers and LPG producers/marketers. Keywords: Liquified petroleum gas (LPG); BioLPG; biofuels; process technologies; alternative fuels 1. Introduction Liquified petroleum gas (LPG) is a major fuel for heating and transport, with a current global market of around 300 million tonnes per year.
    [Show full text]
  • Jtb Steps on the Indonesian
    FEATURES JTB STEPS ON THE INDONESIAN GAS LATHAM & WATKINS, INTERNATIONAL LEGAL COUNSEL TO THE SPONSOR AND THE BORROWER IN THE FINANCING OF THE JAMBARAN-TIUNG BIRU PROJECT, PROVIDES AN OVERVIEW OF THE DEAL AND INSIGHT INTO SOME OF ITS NOTABLE FEATURES. BY CLARINDA TJIA-DHARMADI, PARTNER, TIM G FOURTEAU, COUNSEL, AND MEREDITH STRIKE, ASSOCIATE. The Jambaran-Tiung Biru Project (JTB Project) is 315m standard cubic feet per day of raw among the largest upstream oil and gas projects gas, the designing and installing of gas to reach financial close in Indonesia in the past processing facilities with a maximum capacity decade, and marks several important milestones of 330m standard cubic feet per day and the for project financings in the region. development of gas flow lines from the wells The limited recourse project financing to the gas processing facilities and sales gas utilised a trustee borrowing structure (TBS) and pipelines from the gas processing facilities to is the first project financing in the region to the Gresik-Semarang pipeline. comprise conventional interest-bearing tranches PEPC and PT Pertamina EP (PEP), a wholly- with Islamic financing tranches. owned subsidiary of Pertamina, are sponsoring It is also the first limited recourse project the development of the JTB Project (though financing to feature a subsidiary of Indonesian PEP is not a party to the financing). PEPC will state-owned oil and gas company PT Pertamina operate and maintain the JTB Project, including (Persero) (Pertamina), namely PT Pertamina EP the gas fields, pipelines and gas processing Cepu (PEPC), as the anchoring sponsor. facilities. Containing extensive Indonesian participation PEPC and PEP own 92% and 8% of the unit throughout the structure, it is also the first oil interests in the unitised JTB field, respectively, and gas project financing in Indonesia to be and will share a proportionate amount of supported by an all domestic offtake, with no project revenues, capital costs and operating government support, solidifying the trend set expenditures.
    [Show full text]
  • Sopa-Scoopzhoutarget
    Friday, August 30, 2013 A3 Beam me up LEADING THE NEWS K-pop stars are embracing hologram COMMERCE Oil giants technology to reach a wider audience > L I F E C 7 banned Unwelcome guest Create your dream home Health headache from new Aquino cancels visit to China: Chic, stylish furniture Migraines can cause INVESTMENT TEAMS TO BE REINED IN Beijing says he was never and accessories for permanent brain damage projects invited in the first place discerning buyers and raise risk of strokes Commerce Ministry targets extravagance by delegations sent Foreign direct investment is a Previously, investment jun- key economic indicator used to kets were believed to be immune > LEA D ING T HE N EWS A 3 > 20-PAG E SPE CIA L REP O R T > WORLD A15 to Hong Kong and Macau to seek investment for their regions gauge officials’ performance, and from the campaign against offi- Beijing makes state ................................................ dozens of delegations from local cial extravagance. overstated the number of partici- His remarks followed the flag- governments flock to Hong Kong The The People’s Daily said busi- energy companies pay Daniel Ren pants and the value of deals ship newspaper’s harsh criticism every year to seek such invest- ness delegations stayed in five- [email protected] phenomenon the price for failing to signed during their promotional on Monday of investment dele- ments. star hotels and invited business- activities. gations travelling to Hong Kong. Yao admitted that the delega- reflects a severe men to expensive restaurants, meet pollution targets The Ministry of Commerce has “They were desperate to get This was the first time that a tions played a positive role in level of spending as much as 1,000 yuan pledged to rein in extravagance abig number of foreign business- Communist Party mouthpiece spurring the nation’s economic (HK$1,260) per head for a break- ...............................................
    [Show full text]
  • Low Probability High Consequences Oil Spill Response Plan: Promoting Cooperation and Networking Emergency Respond
    PAJ Oil Spill Workshop 2017 “Considerations for future oil spill response management and operations” Tokyo | 12 December 2017 Low Probability High Consequences Oil Spill Response Plan: Promoting Cooperation and Networking Emergency Respond Dr. I Gusti Suarnaya Sidemen Direectorate General of Oil and Gas (MIGAS) Ministry of Energy and Mineral Resources 1 1 Kementerian ESDM Republik Indonesia CONTENTS 1. Potential Risk of Oil Spill 2. Existing Oil Spill Response Strategy 3. Changing Circumstances 4. New Oil Spill Response Strategy 2 2 Kementerian ESDM Republik Indonesia 1. Potential Risk Of Oil Spill 3 3 Kementerian ESDM Republik Indonesia Indonesia Oil Outlook Crude Oil Balance Projection Key Issues: 1. Oil Still play Important Role in Indonesia Energy Supply 2. Import dependency growing 3. Sea-lane security will become more and more important 4. National capacity in securing sea lane security growing 5. Risk of oil spill is in place Fuel Consumption Projection 6. Bilateral and multilateral cooperation to secure sea-lane and supply security and is needed 7. Bilateral and multilateral cooperation is need to combat oil spill Projection Source: BPPT IEO 2017 Ministry of Energy and Mineral Resources Republic of Indonesia POTENTIAL RISK OF OIL SPILL EXPLORATION AND REFINING PRODUCTION DISTRIBUTION INTERNATIONAL TRADE 2. Existing Oil Spill Response Staretgy Oil Spill Response Development Ministry of Transport Regulation No.: 58/2013 Oil Spill in Waters and Port Preparedness Joint President Regulation No. 109/2006 Decision/Regulation concerning DGOG and DGSC: Oil Spill In Indonesian Water DKP/49/1/1 No. Emergency Response 01/KPTS/DM/MIGAS/1 981 Permanent 13 Procedure concerning 11 Protection of Strait 06 Malacca again Pollution.
    [Show full text]
  • China Politics Update – July 2014
    China Politics Update – July 2014 Premier Li Keqiang paid his first official visit as Premier to London, 16-19 June for the annual UK-China Summit. Li was received by the Queen and held wide ranging talks with Prime Minister David Cameron covering bilateral, prosperity and global issues. They discussed improvement to UK visa services. There was a discussion of economic cooperation covering Chinese investment in UK infrastructure; a clearing bank in London for the RMB; and the concept of EU/China FTA. On foreign policy they discussed Iraq, Iran and Ukraine and regional security in Asia Pacific. They also covered climate change, cyber issues and Hong Kong. A wide range of agreements were signed during the summit from a £12Bn LNG deal between CNOOC and BP to a £400m joint venture on solar energy. The total commercial value was £14Bn. During his speech at Chatham House, Li said “China will work more closely with the UK in infrastructure, manufacturing, urbanization and other areas to increase two-way trade and investment.” In a joint conference, the Prime Minister acknowledged the commitment with China to ensure the growing economic and political ties of the two countries also contribute to much stronger links between the people. General Secretary Xi Jinping presided over a meeting of the Central Leading Group on Financial and Economic Affairs, urging greater efforts to improve energy technology. Analysts said Xi’s leading role in the body implies he has further consolidated his powers. In recent years the key policy coordinating body has been run by the Premier not Party Secretary.
    [Show full text]