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Six more oil, gas blocks to convert to gross split scheme
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Deputy Energy and Mineral Resources Minister Arcandra Tahar (JP/Dhoni Setiawan)
T
he Energy and Mineral Resources Ministry has said six operators of oil and gas blocks will amend their production sharing contracts (PSC) from cost-recovery to gross-split schemes.
Deputy energy minister Arcandra Tahar expected the six amended contracts to be signed no later than February, two of which will be inked late this month.
Under the new scheme, Arcandra said, the operators were given more certainty, simplicity and efficiency. “Therefore, I believe a lot of investors will prefer to alter their contracts into gross-split schemes,” he said referring to the scheme introduced in January 2017.
The six blocks are Duyung Block in West Natuna, Muralim Block in South Sumatra, Tanjung Enim Block in South Sumatrai, North Arafura Block in Papua, Bungamas Block in South Sumatra and Sebatik Block in North Kalimantan.
Once the six blocks officially amend their contracts, 36 blocks would be managed under the gross-split scheme.
Of the six, only Tanjung Enim Block is a non-conventional unit, meaning that discovering resources in the block is more complex compared with the others. “And it [Tanjung Enim] will also become the first non-conventional unit to be managed under the gross-split scheme,” Arcandra said. (bbn)
