THE PREPARATION OF OWNER ESTIMATE IN RIG SERVICE CONTRACTS IN UPSTREAM OIL AND GAS BUSINESS ACTIVITIES ACCORDING TO LEGAL CERTAINTY PRINCIPLES.
DOI:
https://doi.org/10.19166/glr.v3i1.4716Keywords:
Oil and Gas, Owner Estimates Development, KKKS & Rig ProviderAbstract
As one of the vital and strategic natural resources, due to its vital role that could impact society, oil and gas is one of the sources of state revenue to support national development. To implement Article 33 of the 1945 Constitution, in particular to realize the welfare and prosperity of the people, UU Migas No 22, 2001 mandated SKK Migas to oversee upstream activity done by contractors (KKKS).
Contractors conduct rig procurement processes with their Owner Estimate (OE) in alignment to Perpres No 12, 2021 and PTK 007, 2017. Due to that reason, legal certainty is needed to deal with problems at the implementation level.
This dissertation research covers two legal issues, namely the regulation and implementation of the preparation of the HPS Value in the Rig contract.
The theoretical basis used is agreement theory, legal certainty theory and Per Se Illegal and Rule of Reason approach. The research analysis is using normative juridicals which are supported by empirical studies.
The result of this research concludes that normatively, OE preparation guidelines provide multiple interpretations, inconsistencies and a legal vacuum.
In practice, problems related to aspects of legal certainty, namely HPS offers are not confidential and/or confidential, extreme price cut due to offers below 80% of HPS are being allowed, the existence of negotiations even though the price offer is already the lowest and below the HPS . It opens for conspiracy in the procurement. For this reason, it is necessary to amend Perpres and PTK 007 in order to achieve compliance according to the principles of agreement, legal certainty and fair business.
The change in regulation will provide legal certainty, efficiency and effectiveness so that SKK Migas and KKKS and Rig Providers can carry out upstream business activities properly and optimally to support the social welfare of the Indonesian.
Keywords: Oil and Gas, Owner Estimates Development, KKKS & Rig Provider
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC-BY-SA 4.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website). The final published PDF should be used and bibliographic details that credit the publication in this journal should be included.