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Indonesia applies gross split scheme in 7 PSC contracts

Djoko Siswanto (2nd from right) briefs reporters after PSC contract signing (Photo credit: Energy Ministry)

JAKARTA (RambuEnergy.com) – The Indonesian Energy and Mineral Resources Minister Ignasius Jonan on Friday (April 20) has approved seven production sharing contracts (PSC) out of eight expiry PSC contracts. Of the seven PSC contracts, six contracts have been handed over to Pertamina as new operator and one contract, PSC Mahakam is an amended contract.

All of the PSC contracts are based on gross split PSC scheme, instead of cost recovery-based PSC as applied in the past.

The government received signature bonus of US$33.5 million or Rp448.9 billion out of investment commitment of US$556.45 million or Rp7.45 trillion planned by the PSC operator.

Director General for Oil and Gas of the energy ministry Djoko Siswanto told reporters that the government wants Pertamina to maintain production level in those seven oil and gas blocks.

He said 10% of the investment commitment will be reserved for performance bonds to guarantee that Pertamina will realize its commitment.

“If Pertamina did not realize its commitment, the performance bonds will be transferred to the government treasury. If the commitments are realized, the funds can be withdrawn,” he said.

Following is the details of the PSCs and gross split schemes:

 

No Working Area/Block Contractor Split Investment Commitment in 1st 3 Years Signature Bonues
      Govt PSC Holder    
1 TUBAN PT Pertamina Hulu Energi Tuban East Java Oil: 44%

Gas: 39%

Oil: 56%

Gas: 61%

US$42.25 million Rp5 million
2 OGAN KOMERING PT Pertamina Hulu Energi Ogan Komering Oil: 46%

Gas: 41%

Oil: 54%

Gas: 59%

US$23.3 million US$5 million
3 SANGA SANGA PT Pertamina Hulu Sanga-Sanga Oil: 51%

Gas: 54%

Oil: 49%

Gas:54%

US$237 million US$10 million
4 SOUTHEAST SUMATRA PT Pertamina Hulu Energi Offshore Souteast Sumatera Oil: 31.5%

Gas: 26.5%

Oil: 68.5%

Gas: 73.5%

US$130 million US$10 million
5 NORTH SUMATRA OFFSHORE PT Pertamina Hulu Energi NSO Minyak: 35,5%

Gas: 30,5%

 

Minyak: 64,5%

Gas: 69,5%

 

US$18.5 million US$1.5 million
6. EAST KALIMANTAN & ATTAKA PT Pertamina Hulu Kalimantan Timur Minyak: 39%

Gas: 34%

 

Minyak: 61%

Gas: 66%

 

US$79.3 million US$1 million
7 TENGAH

(Mahakam merged with Tengah WK)

 

PT Pertamina Hulu Mahakam     US$26.1 million US$1 million
  Total       US$556.45 million US$33.5 million

 

 

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