TIMOR GAP—THE INDONESIAN TAX ISSUES

1996 ◽  
Vol 36 (1) ◽  
pp. 632
Author(s):  
P. G. Le Huray

This paper focuses on the Indonesian taxation issues relevant to activities undertaken in Area A of the Zone of Cooperation in the Timor Gap by non-Indonesian (foreign) contractors and service providers. This area is controlled equally by Indonesia and Australia through the Timor Gap Treaty (Treaty) arrangements.The broad framework of how taxes will be applied to Area A activities to achieve an equal sharing between Australia and Indonesia has been agreed through the Treaty, with the administration being left to the Tax Authorities of each country.On the Indonesian side, no regulations have yet issued to provide specific guidance on, inter alia:whether the application of Indonesia taxes to foreign contractors will follow that adopted for the Indonesian oil and gas industry;the tax treatment of foreign service providers operating in Area A; andhow the agreed modifications in the Treaty to reflect shared taxing arrangements will be observed in the application of Indonesia's Taxation Laws.The absence of any guidance has created much uncertainty among foreign contractors and their service providers undertaking activities in Area A. At the time of writing, we understand from a senior officer within the Indonesian Taxation Office (ITO) that this issue is high on their agenda and regulation(s) will be forthcoming within the near future.

2019 ◽  
Vol 59 (2) ◽  
pp. 639
Author(s):  
Michael Lynn ◽  
David Wirrpanda

As oil and gas operators and service providers look to embrace automation and analytics, many of the traditional partnerships with Aboriginal communities relating to employment and career pathways are likely to be challenged. The paper explores how digital trends are affecting, and are likely to affect, Indigenous communities in their partnerships with oil and gas organisations. Workplace roles and activities are evolving in our increasingly digitised world, causing a perceived threat to employment for minority groups such as Indigenous communities. In order to ensure the ongoing presence of opportunities for Indigenous workers in the ‘future of work’, oil and gas organisations will need to augment digital technologies to cater for and enhance existing and future roles. This paper presents a framework for Indigenous communities, governments, oil and gas operators and service providers to embrace digitisation and create sustainable relationships. An approach is considered to engage with Indigenous communities with objectives of executing on their Reconciliation Action Plans and addressing culture and employment challenges that arise through digitisation. The framework positions oil and gas operators and service providers to pivot themselves not only to sustain, but also to enhance Indigenous employment opportunities in a digital workplace. Digitisation is here, but with the right approach it can positively affect and shape partnerships between oil and gas organisations and Indigenous communities.


2016 ◽  
Vol 56 (2) ◽  
pp. 585
Author(s):  
Christopher Coldrick ◽  
Rowan Fenn ◽  
David Sahota

Maintenance, repair and operating (MRO) materials typically represent 15–20% of the operating costs for a mature oil and gas asset. Of this, a substantial proportion is comprised of high-value repairable equipment such as motors, compressors and pumps. This equipment is often at bottlenecks in the production process and so the impact of materials cost on profitability is magnified by the production ramifications of an outage. Effective management of this equipment is key to the sustainable, profitable operation of any oil and gas asset, and is key to improving the competitiveness of the Australian industry. Oil and gas companies are adopting a variety of models to handle the repair process, with varying degrees of success. Challenges include: poor materials availability and lack of traceability; complex infield materials management processes resulting in costly wastages; difficulty in managing consistency, suitability and specifications of repairs; high cost for those undertaking the repairs; and, correct allocation of responsibility and risk in the materials management process. Developed in collaboration with Australian oil and gas operators, with input from case studies outside the oil and gas industry, this extended abstract discusses the roles and opportunities for the circular economy in helping companies to meet their sustainability and profitability targets. Using several real-life examples, it makes recommendations for vendors, service providers and operators that can have material impact on the profitability of the industry.


2021 ◽  
Author(s):  
Michael Ramon ◽  
Tony Wooley ◽  
Kyle Martens ◽  
Amy Farrar ◽  
Seth Fadaol

Abstract The culture of safety within the oil and gas industry has undergone an evolution since the advent of significant E&P operations in the late 1800s. The initial focus on safety was to protect property, not people. This mentality has shifted over time to include a greater focus on the safety of personnel, in parallel with technology developments that have pushed the limits of operators’ and service providers’ abilities to drill and complete more complicated wells. The safety efforts introduced to date have yielded results in every major HS&E category; however, falls and dropped objects continue to be areas in need of improvement. During cementing rig up and operations there are still many manual activities that require working at heights in the derrick. New technological advances have allowed the industry to reduce the number of hands-on activities on the rig and operators have moved to eliminate these activities by automating operations. Man lifting operations are recognized as a high-risk activity and, as such, many rigs require special permitting. During cementing operations, not only are personnel lifted into hazardous positions, but they are usually equipped with potential dropped objects. Some of these objects, if dropped, reach an impact force that could seriously injure or, in worst cases, result in a fatality. During these operations, personnel are also hoisted along with a heavy cement line in very close proximity. This introduces other dangers such as tangling, pinch points, and blunt force trauma. These risks are heavily increased when working in adverse conditions, such as high winds or rough seas. By utilizing a wireless cement line make up device, along with wireless features on a cement head to release the darts/plugs/balls and operate the isolation valves, an operator can eliminate the need for hands-on intervention. This paper will discuss current cement head technologies available to the operator that allow them to improve safety and efficiencies in operational rig time. Three field studies will be presented that detail running cement jobs with all functions related to the wireless attributes of the cement head. The field studies will present the operational efficiencies achieved by utilizing the wireless features compared to the standard manual method. Before the recent introduction of a wireless cementing line make-up device, a wireless cement head still required hands-on intervention to rig up the tools, putting people in high-risk situations.


VINE ◽  
2013 ◽  
Vol 43 (1) ◽  
pp. 39-56 ◽  
Author(s):  
Jayachandra Bairi ◽  
B. Murali Manohar ◽  
Goutam Kumar Kundu

2015 ◽  
pp. 45-64 ◽  
Author(s):  
I. Kotliarov

The paper contains an analysis of advantages and disadvantages of oil service outsourcing for national oil and gas industry. It is demonstrated that the dependence on foreign oil service providers may lead to technological obsolescence of national oil and oil service industries and enables foreign operators to regulate implicitly the effectiveness of the national economy. It is shown that the dependence of Russian oil companies on foreign oil service providers in 2014 is not corporate, but sectoral. This fact, due to high importance of oil and gas industry, produces high risks for Russia’s economy in general. Main ways of development of the Russian oil service industry under sectoral sanctions are described.


2019 ◽  
Vol 59 (2) ◽  
pp. 821
Author(s):  
Mark Tipping

The oil and gas industry is moving steadily towards automation and remote control of processes, which has the added advantage of removing personnel from the immediate danger of the offshore workplace. However, significant challenges remain to be met before the more complex type of offshore facility (especially floating facilities) can be operated fully unmanned, particularly when it comes to maintenance and repair campaigns. In particular, even though human life may be protected, the consequence of a major pollution incident occurring as a result of lack of sufficient manned surveillance is increasingly unacceptable in today’s society, and solutions have to protect these requirements as well. With today’s technologies and the pace of innovation, it is not difficult to envisage facilities in the near future where manned intervention is reduced to a far lower level than currently prevalent, perhaps even eliminated as robotics steadily advance. We can already begin to consider design features and systems that will make new facilities ready for such advances so that projects can absorb benefits from innovation as it occurs. The role of independent bodies such as the classification societies is to assess the design, construction and operation of offshore facilities and issue certification that gives regulators, financiers and insurers alike the confidence to support developments. For floating facilities this includes formal classification and a requirement for detailed knowledge of the state of the structure. This paper explores the methods that the classification society can use to support the aims of the offshore industry for reduced manning with improved safety and reliability.


2016 ◽  
Vol 56 (2) ◽  
pp. 573
Author(s):  
Michael Lynn ◽  
Veronica Holmes

It is 2020 and the Australian oil and gas industry has experienced unprecedented growth. The transition to steady-state operations has been hugely successful. Australia is now well and truly on the global map for oil and gas, and is regarded as world class. Trades and technical operators are skilled, experienced, and safely delivering their jobs. The Australian collaborative training model has been successfully in place for three years, and operators and contractors are satisfied with its impact. But how did the industry successfully make this happen? Looking back to 2015, there were a number of ad hoc collaborative strategies in place to provide oil and gas related skills in Australia. The economic environment at that time, however, necessitated a new look at the collaborative mechanism for reducing operating costs and realising greater efficiencies on workforce development related activities. In 2015, the Resources Industry Training Council (a joint venture between APPEA and CME) identified workforce development collaboration opportunities, and to articulate the value that could be realised from these opportunities. This project sparked a successful Australian collaborative model for workforce development. A unique FutureNow visioning presentation will be used to bring to life a world in 2020 where workforce development collaboration is intrinsic to Australian operators’ DNA, and why and how it stuck this time round. The value will be clearly identified in terms cost optimisation, building an industry culture of trust, and how this was used as a springboard for other successful collaborative opportunities. FutureNow is a fictional representation of the Australian oil and gas industry in 2020, using storytelling to explain a possible journey and outcome for the operators, service providers, workforce, and training bodies.


SAGE Open ◽  
2017 ◽  
Vol 7 (4) ◽  
pp. 215824401773556 ◽  
Author(s):  
Emah Patrick Etokudoh ◽  
Mehraz Boolaky ◽  
Mridula Gungaphul

Not much has been researched in logistics outsourcing in the emerging countries, particularly in the oil and gas industry. This article investigates the feasibility of logistics outsourcing by the international oil and gas companies in the emerging business environment of Nigeria. An exploratory, multicase, qualitative approach was applied, involving 40 interviewees in three international oil companies and three of their logistics service providers. Findings reveal that vendors’ capabilities, host community issues, joint venture influence, and employees’ reactions challenge international oil companies’ logistics outsourcing implementation while relationship management, contract management, and change management skills enable them handle these challenges. The results also show that surveyed organizations implement logistics outsourcing piecemeal and need to scale up their current capabilities to effectively integrate logistics outsourcing. The research confirms logistics outsourcing is achievable in Nigeria, but requires synergies and symbiosis between the oil companies and their local vendors.


2021 ◽  
Author(s):  
Michael Edem ◽  
Abdullahi Alfa ◽  
Okechukwu Nwankwo

Abstract The Department of Petroleum Resources, Nigeria's oil and gas industry regulator, is an opportunity provider and business enabler. Using regulatory instruments such as Licenses, Approvals and Permits, the Department has enabled investors to unlock opportunities in the Upstream, Midstream and Downstream sectors of the industry. The Oil and Gas Industry Service Permit (OGISP) is a mandatory requirement for all service providers rendering or engaged to render technical service to the industry, in accordance with section 60A of the amended Petroleum (Drilling & Production) Regulations, 1988. Since its establishment, the Department has issued over a million permits to service providers in various areas of specialization. This paper examines the OGISP system framework; OGISP application process and requirements for permit issuance; benefits of OGISP to the industry and the Nigerian economy; and recommendations to improve the OGISP system.


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