Indonesia has recently introduced new fiscal model for the upstream industry. While the primary aim was to force the upstream sector to operate in a more efficient manner, the outcomes of the new regime are quite controversial.
The government is struggling to attract investment in the exploration sector, while many active PSCs are expiring and have to be extended. We look at the key items of the new fiscal terms and analyse the impact of the reform on project economics for two case studies: exploration prospects and expiring PSCs.
The slide pack available in the Downloads section covers:
Differentiation between old and new fiscal terms
Do gross split terms deter the investments more than the old ones?
Deepwater gas exploration prospects: how they are affected by the new regime
Expiring PSCs case study: how does a move to gross split affect the field economics?
Key takeaways - next steps to be taken
This report includes 1 file(s)
Indonesias gross split PSC improved efficiency at risk of lower investment II.pdf PDF - 1.72 MB
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Insight | Apr 2017
Indonesia's gross split PSC: improved efficiency at risk of lower investment?
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