Implementation of GCG Oil and Gas EPCI a PSC - Hansen's … · 2014-12-02 · Implementation of GCG in Upstream Oil and Gas EPCI Project‐a PSC Company IAMPI ... CPM, PMP, CSEP &PTK

Implementation of GCGin Upstream Oil and Gas EPCI Project‐ a PSC Company 

IAMPI Learning & Sharing Session XXXVPodomoro University, Agung Podomoro Land

Jakarta, 6th Nov 2014By Juanto Sitorus, MT, CPM, PMP, CSEP

Education1. University of Riau, Pekanbaru, Indonesia, majoring in physics, 19922. Master of Engineering, Civil Engineering Dept, University of Indonesia,2008

Professional QualificationCPM, PMP, CSEP & PTK

Professional AssociationAACEI, PMI & IAFMI

ChampionCOC, KPI, CHSEMS, STOP

Professional Experiences1. Panwood Engineering Pte Ltd, Project Coordinator, 1994‐19952. Thomson Television Indonesia, PPIC, 1995‐19963. PT. Rekayasa Industri, PCM, 1997‐20114. PT. PHE WMO, Performance Manager, 2011 ‐ Now

Juanto Sitorus, MT, CPM, PMP, CSEP

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Proven Reserves by Country

Ref : OPEC Annual Statistical Bulletiin 2012

This is the property of Juanto Sitorus and may not be reproduced or disseminated without the expressed written permission of Juanto Sitorus

Private and Confidential

Source : Laporan tahunan SKK MIGAS 2012

Investment Trend of PSC Companies In Indonesia

This is the property of Juanto Sitorus and may not be reproduced or disseminated without the expressed written permission of Juanto Sitorus

Private and Confidential

Production Oil vs Consumption in IndonesiaProduction Oil vs Consumption in Indonesia

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Oil Surplus/DeficitOil Consumption

Source : BP Statistical Review, June 2013 

ChinaIndonesia

Import

Why Project Management is Important ?

Page 6

Project Lifecycle vs Scope Influence Cycle

APPRAISEDSPDSP DSPDSP

SELECTDSPDSP

DEFINEDSPDSP

EXECUTE OPERATEDSPDSP

Gate

Front End LoadingFront End Loading

GateGateGateGate

Major Influence Rapidly Decreasing Influence Low Influence

INFL

UENC

EEXPENDITURES

Final Investment Decision (Sanction)

This is why we need Capital Value Process…

FEED EPCIFEASIBILITY STUDY

Pre‐FEED OPERATION

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Executive Mgmt. Set Performance Targets

(Project started)

DSP (Project Charter)

Project Completed (1 year after start up)

CVP Process in Oil & Gas Project

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Apraise Select Define Execute Operate

FEL‐0Identify

FEL‐1Apraise

FEL‐1Select

FEL‐2Optimize

FEL‐3Define

Execute Operate

Phase‐1Identify & Asses Opportunity

Phase‐2Generate & Select Alternative

Phase‐3Develop Preferred Alternative

Phase‐4Execute

Phase‐5Operate & Eval;uate

Apraisal Design Pre‐Project Basic Engineering EPSC OperationCom & Startup

Feasibility Study

Conceptual Study

Engineering Design

Construction EPCI

Operation

Pre‐POD FEED Construct Operation

EksekusiKajian LanjutSeleksiInisiasi Operasi

Good Corporate Governance

• According to the World Bank , Good Corporate Governance ( GCG ) is a collection of laws , regulations and rules that fill and encouraging performance of the company's resources in order to function efficiently

• Kepmen BUMN No. KEP/117/M‐MBU/2002 on theapplication of the practice of GCG at the state ‐ownedenterprises established that good corporate governance is aprocess and structure used by the organs of stateenterprises to improve business success and corporateaccountability in order to create shareholder value over thelong term by taking into account the interests of otherstakeholders

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Purpose of application GCG

The purpose of the application of GCG are :1. Maximize the value of the company by increasing the application of

the principles of transparency, independence, accountability,responsibility, and fairness in the conduct of the company

2. Implementation of the management of the Company in a professionaland independent

3. The creation of decision‐making by all organs of the Company that arebased on high moral values   and compliance with laws and regulationsin force;

4. The implementation of corporate social responsibility towardsstakeholders ;

5. Improving the investment climate conducively, especially in the field ofOil and Gas

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Regulation

• Law No. 31/1999 • Law No. 20/2001• Law No. 22/2001 PR No. 9/2013 • GR No. 79/2010 (Cost of Recovery)• PTK 007 Rev.2/PTK/I/2011 (Supply Chain)• PTK 007 Buku kelima (Project Management)• PTK POD• PTK 074 AFE• PTK 033 PIS• And Others PTK Issued by SKK Migas• Pertamina Guide No. A‐002/N00010/2012‐S0• COC PHE WMO

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Implementation of GCG

1. Champion CoC2. GCG – CoC Online Reporting System

Roles of Champion CoC

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1. Coordination of socialization and/ or refreshment CoC material2. Coordinating the distribution and collection of CoC Statement Letter3. Coordination of monitoring and reporting on the implementation of the

CoCThose coordination is under the coordination of Internal Audit.

Leadership in Project Execution of Oil & Gas Production Facilities

Successful completion of a project production facilities of oil and gas in Indonesia amid oilproduction deficit widening from year to year, in addition to having the technical capability andbusiness is also determined by the ability of a Project Manager Leadership of a projectorganization. The execution of all phases of the project is carried out by running the GovernanceGuidelines for the Company on which the application of the principles of Transparency,Accountability, Responsibility, Independence and Fairness to improve the performance and imageof the company.

Leadership capabilities that a project manager should have to address those challenges are :1. Integrity2. Have a high target3. Complete and fulfilled what was promised4. Speed   of decision making5. Accept the differences6. Fit and healthy

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GCG System – CoC online Reporting System

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Reporting Mechanism of CoC Violation

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Triggering Event

Discussed to CoC

Champion/Manager in each dept.

CoCChampion/ 

dept .Manager Report to 

Internal Audit dept.

Internal Audit dept. Report to Ethic 

Committee

CoCVerification by Ethic 

Committee

Action

17http://www.petrominer.co.id/berita‐pertamina‐raih‐penghargaan‐implementasi‐gcg‐dan‐3‐penghargaan‐lainnya.html#ixzz3GC3h7OO2

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RecognizeRecognize

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Kompas Investor Daily

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RATING OF GCG PERTAMINA 2004‐2012

% B

EST

PRAC

TIC

E

Veri Poor

Poor

Fair

Good

Excellence

Source: Workshop  on Strengthening Integrity Through Public‐Private Partnership: Preventing Facilitation Payment and Managing Gift Rules Medan, Indonesia,  24 June 2013

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