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JAKARTA (RambuEnergy.com) – The gross-split scheme adopted in the production sharing contract (PSCs) has shown positive development given the increasing number of blocks that have adopted the scheme, instead of cost recovery-based PSCs.
Deputy Minister for Energy and Mineral Resources Arcandra Tahar said that since the scheme was adopted in early 2017, as many as 25 Working Areas (WAs) have implemented the scheme, either in blocks that were offered in 2017 and in 2018, as well as Working Areas whose contracts will expire.
He noted that the positive progress is also shown in the investment commitment in a number of blocks, whose contracts will expire 2018, 2019 and 2020, which is estimated to reach US$1 billion for this year.
The investment commitment was mainly contributed by PT Pertamina, which has secured Jambi Merang block with an investment commitment of US$239.3 million and Sanga-Sanga WA with investment commitment reaching US$237 million.
If the operators do not realize their investment commitment than they have to pay the State as performance bonds.
Of the 25 WAs offered in 2017, the government received a signature bonus of US$74.8 million. The 25 WAs offered in 2017, are:
1. Andaman I
2. Andaman II
3. Merak-Lampung
4. Pekawai
5. West Yamdena
Working Areas Offered in 2018
6. Southeast Jambi
7. Citarum
8. East Ganal
9. East Seram
Blocks Terminated in 2017
10. Offshore Northwest Java
Expiry Blocks in 2018
11. North Sumatera Offshore
12. Ogan Komering
13. Southeast Sumatera
14. Tuban
15. Sanga-sanga
16. East Kalimantan & Attaka
Blocks to be Terminated in 2019
17. Jambi Merang
18. Pendopo & Raja
19. Bula
20. Seram -Non Bula
Working Areas To Be Terminated in 2020
21. South Jambi B Block
22. Malacca Strait
23. Brantas
24. Salawati
25. Kepala Burung Blok A
