Economic and Commercial Data

Economic & Commercial Data

PSC FISCAL REGIME

The basis of any economic evaluation is the fiscal terms contained in the PSC itself.

The fiscal terms of oil production are:

 PSC Contract Period 30 Years (Currently in 2016, the contract
was going 4 years)
 First Tranche Petroleum (Oil) 10% non-shareable
 Contractor share before tax 44%
 Government share before tax 56%
 Depreciation 5 years – 25%
 DMO Obligation / Compensation 25% / 25% (DMO holiday start from first oil
until 60 months as stated on section V)

12.1. CAPITAL COSTS

Drilling and workover/wellservices CAPEX

Tabel Drilling and Completion Cost/well

Well Cost, USD

Activity Tangible Intangible Total

Workover 250,000 50,000 300,000

Wellservice 150,000 150,000

Drilling 230,000 1,270,000 1,500,000

Facility CAPEX
Assume as per the the design capacity

12.4.1. Operating Costs (OPEX)

Fix Cost USD 3,000,000 /year
Variable Cost 10 $/Bbl with escalation factor 3% annualy.
12.4.2. ASR Cost
ASR per well = $ 250 k
ASR for surface facility 10% from total investment
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Economic and Commercial Data

12.2. OIL PRICE & GAS PRICE

Based on current word condition, we assume an oil price of US$50/bbl flat (refer
to WTI Crude Oil sept 2016).

Gas Price is 6 US$/MMBTU with escalation 3%/year.

12.3. SUNK COST

The total sunk cost is US$ 30 million, in this project sunk cost is all of the cost
that already expensed before 2017 which are consist of 3D&2D Seismic cost,
G&G study, Re-entry Beta-01 well and Beta-02, Exploratory drilling Beta-03,
Beta-04 and Beta-05 well, and SG&A.

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