Insight

Three years of Gross Split in Indonesia – is this the end?​

Get this report

$1,350

You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- FAQs about online orders
- Find out more about subscriptions

28 August 2020

Three years of Gross Split in Indonesia – is this the end?​

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 1 images and tables including:

  • Gross Split timeline

What's included

This report contains:

  • Document

    Three years of Gross Split in Indonesia.pdf

    PDF 1.16 MB