Indonesia changes production-sharing terms

The government of Indonesia has implemented new production-sharing terms for oil and natural gas.

The Ministry of Energy and Mineral Resources issued regulations for the new “gross-split contract,” which is based on gross production with no mechanism for cost recovery.

Shares are adjusted for new contracts from government-contractor “base splits” starting at 57-43 for oil and 52-48 for gas.

The government-contractor splits under the former contract, which provided for cost recovery, were 85-15 for oil and 70-30 for gas.

PT Pertamina Hulu Energi signed the first contract under the new scheme, covering an extension of the Offshore North West Java (ONWJ) block.

The ONWJ government-contractor splits are 47.5-52.5 for oil and 37.5-62.5 for gas.

At the end of last year, the block produced 35,800 b/d of oil and 155 MMscfd of gas.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...