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Effective 2017, all new upstream licences are awarded under new Gross Split PSC terms. The mechanism involves revenue sharing between the contractor and the government, based on a number of parameters. The parameters include base split, incremental variable split (10 parameters), plus progressive split (linked to oil price and cumulative production). The corporate income tax is also payable. A contractor may be obliged to offer a 10% participating contract interest to a regional government owned company, following development approval of the first field in the contract area.
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Indonesia upstream fiscal summary PDF - 390.42 KB 16 Pages, 18 Tables, 12 Figures
Description
Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.
This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.
Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.
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Country report | Jun 2017
Indonesia upstream fiscal summary
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