Four Gross Split Contracts Signed Again

INDUSTRY.co.id - Jakarta - The government through the Ministry of Energy and Mineral Resources (ESDM) again signed four Gross Split Distribution Contracts which ended its cooperation contracts in 2019 and 2020 on Wednesday (11/7/2018) at the Office of the Ministry of Energy and Mineral Resources.

According to information obtained from the official website of the Ministry of Energy and Mineral Resources, these four Production Sharing Contracts are an extension contract and joint management between the existing contractors with Pertamina for a period of 20 years.

The four Production Sharing Contracts are, among others, the Production Sharing Contract of the Bula Area with the Contractor is Kalrez Petroleum (Seram) Ltd. who at the same time as the Operator. The Bula Existing Production Sharing Contracts currently (existing) will expire on October 31, 2019.

Then, Production Shares Contract of Salawati Working Area with Petrogas Contractor (Island) Ltd. (as well as Operator) and PT Pertamina Hulu Energi Salawati. The existing Salawati Production Sharing Contract (term) will expire on 22 April 2020.

Furthermore, the Profit Sharing Contract of the Bird's Head Working Area with Petrogas Contractor (Basin) Ltd. (as well as Operator) and PT Pertamina Hulu Energi Salawati Basin. The current Production Sharing Contract of the Bird's Head Working Area will expire on 14 October 2020.

Finally, Production Sharing Contract of Malacca Strait Working Area with EMP Contractor Malacca Strait S.A (as well as Operator) and PT Imbang Tata Alam. Production Sharing Contract the current Malacca Strait Working Area will end on August 4, 2020.

Interest participation owned by the Contractors includes 10% Interest Participation to be offered to BUMD.

The total signature bonus of 4 (four) Production Sharing Contracts is US $ 5.5 million or equivalent to Rp 73.7 billion.

While the estimated total investment value of the implementation of the first five-year commitment must be US $ 148.4 million or equivalent to Rp 1.9 trillion (assuming the Rupiah exchange rate in accordance with APBN 2018 is Rp13.400 per US dollar).

The Government also advised the Contractor, in order to continue to increase the production of oil and natural gas from the Working Area.