Indonesia launches 2017 licensing round: gross split terms under the spotlight
Indonesia is offering 10 blocks in its first licensing round under recently enacted Gross split PSC terms, through the Regular Tender & Direct Proposal scheme. Despite unsuccessful 2016 licensing round, the authorities are looking to attract exploration interest with the new fiscal scheme. However, non-fiscal commercialisation challenges remain major barriers to development in Indonesia. The majority of the offered blocks are far from any existing oil and gas infrastructure or gas markets.