Indonesia revises Gross Split PSC terms

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26 October 2017

Indonesia revises Gross Split PSC terms

Report summary

On 5th September, the Ministry of Energy and Mineral Resources enacted a new regulation (52/2017), that finalised amendments to the law governing the 'Gross Split' PSC that was released earlier this year (08/2017). Based on the revision, the contractor's share of revenues can be increased based on a number of revised and new variable factors. The revised factors include new shares and thresholds for cumulative production, revised shares for different production stages, sulphur content, field status, infrastructure access, and linkage to oil price. The new scale based on a linear formula linked to gas prices is introduced. The revised terms apply to the ongoing licensing round, which is due on November, 27th 2017.

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