In a double blow to Indonesia’s attempt to boost its natural gas production, supermajor ExxonMobil and Thailand’s national oil company, PTTEP have both pulled out of the East Natuna project within days of each other last week. This leaves state oil firm Pertamina as the only player left in Southeast Asia’s largest undeveloped gas resource; a role that it cannot afford to undertake alone.
In a statement, PTTEP said that ‘under current production sharing contract terms and market conditions, commercialising the hydrocarbon resources in this area would be difficult,’ as it confirmed its pullout after the results of a Technology and Market Review (TMR). ExxonMobil’s statement was more terse – stating in a letter to the Indonesian authorities that East Natuna was ‘uneconomical for the company under current terms.’
There are two ways reading into those statements. The first is the market conditions are tough. East Natuna is located on the southern edge of the South China Sea, where the border between Malaysia and Indonesia kinks upwards unexpectedly. Not only is this area isolated (and claimed by China), it is also far away from any existing infrastructure – requiring either a floating production unit or long pipelines, both of which will be expensive. The payoff was once worth it – reserves at East Natuna are estimated at 222 tcf, of which at least 46 tcf is recoverable. But high carbon dioxide content (exceeding 70%) requires expensive processing that needs significant capex. With an estimated price tag of at least US$40 billion, East Natuna needs LNG prices of US$10-15/mmBtu to break even – and that’s hard to justify when Asian spot prices are now languishing at US$6/mmBtu.
The second is more pointed – the ‘current production sharing contract terms.’ Under the current Indonesian PSC structure, natural gas producers have to meet a Domestic Market Obligation (DMO) – that at least 25% of the production must be supplied to the local market. There is leeway for the government to demand more if the need arises. That is a huge chunk of output taken away from any project. Upstream producers in Indonesia have long championed reform to the DMO, arguing that it stifles investment. But Indonesia needs the DMO as well – its domestic consumption is growing and its argument is that Indonesian resources should also stay in Indonesia instead of being exported; at subsided prices, of course.
The first can change, depending on market conditions, but money is on LNG prices in Asia to remain below the range required by East Natuna, with the tsunami of Australian, American and Canadian LNG on its way. The second is tougher – the Indonesian government has tried for years to streamline its PSC structure to balance both domestic requirements and stimulating investment. But it will have to, sooner of later, if it wants to reverse the chronic decline in Indonesia upstream output. In the meantime, the long-running East Natuna project has claimed two other victims. Discovered in 1973, the first PSC to develop it was formed by Pertamina and pre-merger Exxon. Over the next four decades, Petronas and Total would be involved in various other attempts to commercialise the discovery, with ExxonMobil and PTTEP now giving up as well. ExxonMobil did offer an olive branch, stating that it would help with technology and technical assistance if needed. Indonesia replied that it might make a ‘special incentive’ to keep the project viable. That would have to be a very special incentive indeed; but given projected market conditions, possibly still far from enough to keep the project alive. East Natuna remains a pipe dream, for now.
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Funko Action Figuresare a popular collectible toy that is now being incorporated into the workplace to motivate employees. The action figures have been used as an alternative to the traditional desk calendar or as a prize for top performers. With this type of incentive, employers can expect their employees to feel more motivated and productive.
Many employers have found that Funko Action Figures are a great way to motivate their employees and provide incentives for high performance at work. Funko Action Figures are a popular collectible toy that is now incorporated into the workplace. These small collectibles are given to employees to motivate them. Funko figures were once only available at comic book stores, but now they are being used in offices for this purpose.
The company is called Zappos and they first introduced this idea back in 2009. They gave these figurines to their employees as a way of motivating and rewarding them for their hard work and dedication. Although it’s not very clear why the action figures themselves motivate people, we can see that it has been working well for Zappos as they have continued to use it since 2009. These soft-bodied vinyl figures, often called "Pop!" Figures were originally conceived by Mike Becker and founded by Alan Becker.
The Funko Pop! Action Figure is a line of collectible toys produced by the company Funko LLC. They are typically stylized vinyl figures depicting characters from various media and entertainment. First introduced to the public in 2005, the company was originally founded as a bobblehead company in 1998 and became popular through distribution at chain retailers such as Walmart and Target. The first wave of Funko Pops was based on Disney properties like Mickey Mouse as well as other popular culture icons such as Conan O’Brien and Catwoman.
Funko Action Figures are collectible figurines that often depict pop culture characters. They are often used in the office to motivate employees and provide a sense of community. Funko has established itself as a major player in the toy industry with its trademarked Pop! vinyl figures. This company is taking on new ventures like collecting by introducing Funko Action Figures, for example, Boba Fett from the Star Wars movies. This type of product is sometimes called a 'blind box' because you don't know which figure you're getting until you open it. The Boston-based company, BuzzFeed, has introduced this type of toy into their office to help with team building and morale. The employees at this company seem to have a lot of fun with them.
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