“The revision is the government’s initiative to boost investment,” said Deputy Energy and Mineral Resources Minister Arcandra Tahar, as reported by tribunnews.com on Thursday, referring to the revision of Energy and Mineral Resources Ministry Regulation No. 8/2017.

Under the old cost recovery scheme, a contractor’s costs were reimbursed by the government, while under the gross split scheme, constructors will shoulder all costs themselves.

Arcandra said the revision was urgent because of tough competition for oil and gas investment due to the low oil price.

Arcandra expressed his hope that, after the revision, investors would soon make decisions on their investment. He said known Indonesian oil reserves could only fulfill the country’s demand for 12 years.

Currently, the government is auctioning seven oil and gas blocks, but none of the seven firms that have taken the auction documents have returned them to action organizers, although the government hopes the process would finish in September.

Arcandra explained that revised points included oil and gas progressive prices, cumulative production, stages of production and infrastructure development.

 “With this revision the government is giving investors business certainty,” he added. (bbn)

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