Insight
Three years of Gross Split in Indonesia – is this the end?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Indonesia introduced Gross Split terms in 2017 to reduce bureaucracy and improve efficiency in the upstream industry. On the back of the government's decision in July to allow a choice between gross split and cost recovery, this report analyses how successful gross split terms were in achieving these goals. The majority of awards and commitments were attributed to contract extensions, with only 17% of commitment spend on new exploration licences. Vague criteria for the discretionary ministerial split and the regressive nature of the Gross Split terms have proven unpopular, particularly in the current low oil price environment. The need for further change has been recognised, with proposals on the table for several additional incentives. As global upstream investment shrinks in the face of the short-term and long-term challenges, what else can Indonesia do to boost its upstream outlook?
Table of contents
- Executive summary
Tables and charts
This report includes the following images and tables:
- Gross Split timeline
What's included
This report contains:
Other reports you may be interested in
Asset Report
Guixi copper smelter
A detailed analysis of the Guixi copper smelter.
$2,250
Asset Report
Tujuh Bukit gold mine
A detailed analysis of Tujuh Bukit gold mine
$2,250
Asset Report
West Ganal (Maha) (LNG)
The West Ganal PSC was originally carved out of the Makassar PSC. It covers an area of 1,129 km2 and is adjacent to the Jangkrik and ...
$3,720
