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Lampung III, GMB Muralim blocks change contract scheme to gross split base

JAKARTA (RambuEnergy.com) – The Indonesian Energy and Mineral Resources Ministry and two oil and gas Working Areas (WAs), namely Lampung III and GMB Muralim, have agreed to change their production sharing contract (PSC) schemes to gross split, from the existing cost-recovery base PSC scheme.

The change of PSC scheme was signed on Monday by the Deputy Minister for MEMR Arcandra Tahar and representatives from the two WAs.

According to Arcandra Tahar the gross split scheme is more efficient and simple as costs are controlled by the contractors and there are no requirement for the costs to be approved by the energy ministry.

With the PSC scheme change, there are now 39 oil and gas contracts based on the gross split scheme, said Tahar. Of these, 14 are exploration blocks, 21 are blocks whose contracts are extended and four blocks whose contracts are amended, including the latest two.

The Lampung III PSC was signed on May 5, 2009, with PT Harpindo Mitra Kharisma acting as the operator, while GMB Muralim was signed on Dec. 3, 2010, operated by Dart Energy (Muralim) Pte.

The contract period remained unchanged at 30 years. Lampung III covers an area of 919 sqm and GMB Muralim 687.92 sqm.

The costs spent by the contractors during the exploration is considered as operational costs.

The operator of Lampung III WA is committed to drill 1 exploration well with an estimated cost of US$2.3 million as well as conducting 2D seismic survey along 200 km and drilling of 4 wells.

GMB Muralim has drilled 1 exploration well and 1 new production test well with estimated costs of US$300,000. The operator is committed to drill 1 corehole drilling, 5 production test wells and drilling of 4 wells. (*)

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