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Duyung block changes contract to gross split-based PSC scheme

JAKARTA ( – Duyung Working Area (WA), operated by West Natuna Exploration has agreed to change its production sharing contract (PSC) scheme to gross-split based from previously cost-recovery based.

 The change of the contract scheme was signed late last week, which was witnessed by Deputy Energy and Mineral Resources Ministry Arcandra Tahar.

The PSC contract was signed on Jan. 16, 2007, based on cost-recovery scheme. The change of the contract has no impact on the operator’s right to develop the block until Jan. 16, 2037. The Duyung block, which is 100-percent owned by West Natuna Exploration Ltd, covers 926.94 square kilometers.

West Natuna Exploration Ltd is the second PSC that changed its contract to gross split-based PSC contract, after Eni East Sepinggan signed on Dec. 11, 2018.

So far, as many as 37 oil and gas production sharing contracts have adopted the gross-split scheme, in line with the energy ministry’s regulation.

The energy ministry called on the operator to carry on the plan of development (PoD) of the block, so that it can move ahead to production stage.

According to Arcandra, five more Working Areas will change their contracts to gross-split scheme in the near future.

The five WAs are Muralim, Tanjung Enim, North Arafura, Bungamas and Sebatik. He expects these Working Areas’ PSC contract will change to gross split-based scheme.

He argues the change of PSC scheme will let the operators to control the costs in developing oil and gas blocks. (*)

Written by Staff Writer

Edited by Roffie Kurniawan (email:

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