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Gross split scheme shows positive development

JAKARTA ( – 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

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