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View all search resultsSixteen oil, gas contracts use gross split scheme: Ministry
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Pertamina workers are transported in a personnel transfer basket from a ship to the company’s oil rig off the coast of Madura Island in East Java. (JP/Wahyoe Boediwardhana)
T
he Energy and Mineral Resources Ministry has denied that the gross split scheme has failed to attract oil and gas investors, with an official saying that 16 production sharing contracts (IPC) have already used gross split schemes since January, 2017.
“We will see more contracts as the result of regular auctions in 2018 that will be announced in June, 2019,” said the head of the ministry’s communication, public information service and cooperation bureau, Agung Pribadi, in a statement on Friday.
He considered it a success story because no contracts were signed when the auctions were held through cost recovery schemes in 2015 and 2016.
Of the 16 contracts, six were agreed to in 2017 and 10 had been agreed to in 2018, Agung said, adding that the government would continue to improve the investment climate through consistent deregulation.
“Since early this year, the energy and mineral recourses minister has revoked 186 regulations related to business licensing. It is not only talk, but has been implemented. The results are an easier process for investment,” he added.
Meanwhile, oil company Chevron praised the move made by the ministry, saying that the ministry had listened to the thoughts of oil companies on ways to improve the gross split scheme.
“We have already seen positive changes through the revision of regulations related to the gross split scheme. The minister accepted the input from the industry to strengthen the competitiveness of the scheme,” said Chevron IndoAsia business unit managing director Chuck Taylor. (bbn)
