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 ?
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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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