Expect Increased State Revenue, Bonus Signatures Oil and Gas Blocks Unrestricted

INDUSTRY.co.id - Jakarta - The Ministry of Energy and Mineral Resources (ESDM) stipulates a new regulation related to the signature bonus on the oil and gas block which will end its cooperation contract to be further managed.

Previously there was a limit on the amount of signature bonus for the State of US $ 250 million, now there is no upper limit, so that the state revenue can be greater.

This is stated in the Regulation of the Minister of Energy and Mineral Resources (ESDM Minister) Number 28 of 2018 on Amendment to the Minister of Energy and Mineral Resources Regulation No. 23 of 2018 on Management of Oil and Gas Working Areas to End Cooperation Contracts enacted on May 7, 2018.

Declared from the official page of the ministry of EMR, Monday (21/05/2018) mentioned, in the latest regulations, there is a change in the provisions of Article 12 regarding the amount of signature bonuses. In the latest article mentioned that the signature bonus is at least US $ 1 million and no amount at most. Meanwhile in chapter 12 of the old rules, the signature bonus limit is pegged at least US $ 1 million and at most US $ 250 million.

Head of Communications Bureau, Public Information Service and Cooperation Ministry of ESDM Agung Pribadi stated in the absence of the upper limit allow state opinion of greater state revenues.

"The change is in order to increase state revenues on upstream oil and gas business activities by considering the benefits as much as possible for the state," said Agung.

Based on the Ministerial Regulation No. 23/2013 as amended by Minister of Energy and Mineral Resources Number 28/2018, it is stipulated that the management of oil and gas blocks whose contract expires can be done through extension by the existing contractor, Pertamina management, and joint management between contractors and Pertamina as well as at auction.

"The most important thing in the management of oil and gas termination blocks is that the work program for the sustainability of its management must be maintained in quality, both from technical and financial aspects, and must still give greater results for the state." If the result is greater, the state revenue is also better, the country is also getting bigger, "added Agung.

In the framework of determining the management of terminating oil and gas blocks, a Team comprising representatives of the ESDM Ministry and other related agencies shall be established. The team evaluates and evaluates the amount of signature bonuses to the management of the next termination of oil and gas blocks. The amount of the signature bonus shall be determined using the formula stipulated by the Minister of Energy and Mineral Resources Decree.