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Government defends oil and gas gross-split scheme
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Energy and Mineral Resources Deputy Minister Arcandra Tahar speaks to journalists. (Antara/Akbar Nugroho Gumay)
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nergy and Mineral Resources Deputy Minister Arcandra Tahar has defended the gross-split scheme for new oil and gas projects, stressing that the system was efficient.
He questioned a study on the gross-split scheme.
“I want to know what variables were included in the calculations. Was time one of the variables?" said Arcandra in Jakarta on Monday as reported by Antara.
(Read also: Energy ministry teams up with BI for single energy subsidy card)
Under the gross-split scheme, profit splits between the government and contractors will “slide” up and down depending on several factors.
These variables will be added or subtracted from the base calculation, which the new regulation has set to at least 43 percent for companies in oil projects and at least 48 percent in gas projects.
The gross-split scheme would save two to three years in the business process and therefore production could start earlier, Arcandra added.
From the government side, he added, the new scheme would guarantee state income from the oil and gas sector and also strengthen the supervisory function of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas). (bbn)
