Comparative analysis of Indonesian Crude Oil Price (ICP) to gross product worth - A case study of the oil and gas industry

Dody Susanto, Asep Handaya Saputra

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The Indonesian Crude Oil Price (ICP) is determined by the Government of Indonesia. This price is used to calculate the profit sharing of the production sharing contracts in Indonesia. The price policy and methodology refer to the Minister of Energy and Mineral Resources Regulation Number 23 of 2012. ICP is formed by benchmarking and indexation of international crude oil prices and derivative products. In this process, the government considers the production continuity, quality of crude and infrastructure. Gross Product Worth (GPW) is weighted average value of the refined product components minus a refinery fuel and the loss of a barrel of the crude. It is calculated by multiplying the price of each product by its percentage share in the yield of the total barrel of crude. Through a comparison between ICP and GPW of 11 types of crude oil in Indonesia, for the period January 2019 to December 2020, it was found that some crude oil located in eastern Indonesia has a characteristic that the ICP is under the GPW consistently, Its values vary from minus 3.72 USD/Bbl to minus 11.96 USD/Bbl. While the crude oil located in western Indonesia has a characteristic that the different value of ICP to GPW vary from minus 3.76 USD/Bbl to plus 9.80 USD/Bbl. The Factors that affect the variation in values between ICP and GPW include: location, volume and impurities.

Original languageEnglish
Title of host publication3rd International Seminar on Science and Technology, ISSTEC 2021
Subtitle of host publicationScience, Technology and Data Analysis for Sustainable Future
EditorsImam Sahroni, Muhammad Miqdam Musawwa, Achmad Fauzan, Sista Werdyani, Zainiharyati Mohd Zain, Is Fatimah, Riyanto
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735445338
DOIs
Publication statusPublished - 25 May 2023
Event3rd International Seminar on Science and Technology: Science, Technology and Data Analysis for Sustainable Future, ISSTEC 2021 - Yogyakarta, Indonesia
Duration: 30 Nov 2021 → …

Publication series

NameAIP Conference Proceedings
Volume2720
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference3rd International Seminar on Science and Technology: Science, Technology and Data Analysis for Sustainable Future, ISSTEC 2021
Country/TerritoryIndonesia
CityYogyakarta
Period30/11/21 → …

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