9 Of 11 Oil and Gas Blocks Gross Split Scheme Has Production Status
By : Hariyanto And Aldo Bella Putra | Wednesday, April 18 2018 - 18:30 IWST
INDUSTRY.co.id - Jakarta - Production sharing contract for oil and gas (oil and gas) with gross split scheme will soon be targeted to 8 (eight) Termination Working Areas (WK) of oil and gas. The implementation of the scheme follows three previous blocks, namely Andaman I, Andaman II and Offshore North West Java (ONWJ) Block.
Based on Regulation of Minister of Energy and Mineral Resources Number 8 Year 2017 concerning Production Sharing Contract of Gross Split, as amended by Minister of Energy and Mineral Resources Number 52 Year 2017, block terminated or termination and not extended must apply gross split scheme in its management.
Information received by INDUSTRY.co.id, Wednesday (18/4/2018) states that the eight blocks are North Sumatera Offshore (NSO), Ogan Komering, Tuban, East Kalimantan, Attaka, Central, Sanga-Sanga and South East Sumatra (SES). The government itself has decided to establish PT Pertamina (Persero) as the new manager of eight oil and gas blocks whose contract expires this year.
After the process of determining the eight new blocks is completed, there are 11 (eleven) oil and gas blocks operating using the Production Sharing Contract of Oil and Gas gross split scheme.
Of the total 11 blocks, nine of them are already in production status, namely 8 termination blocks and ONWJ block operated by Pertamina Hulu Energi (PHE) whose contract is signed on January 18, 2017. While the Andaman I and Andaman II blocks are still in the process of exploration.
In addition, there are 3 oil and gas blocks of the 2017 auction gross split scheme, but are in progress for contract signing. Meanwhile, the 2018 oil and gas block auction process is still going on as many as 26 oil and gas blocks, all of which use gross split.
The government believes the change of oil and gas revenue sharing scheme from cost recovery to gross split can boost investor interest in upstream oil and gas sector.