Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) said that currently there are several companies applying to transfer oil and gas contracts from the scheme Gross Split to the schema Cost Recovery.
The Director General of Oil and Gas (Dirjen Migas) of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that among the companies that have applied for a switch to the contract scheme is Pertamina. “(Submissions) from Pertamina are quite good (a few). They will still be submitted and will be processed later,” he said at the ESDM Ministry Office, Jakarta, Monday (15/1/2024).
That way, said Tutuka, his party will issue the latest Ministerial Regulation which will regulate the transfer of the contract scheme to Simplified Gross Split.
“We will issue (the regulations), hopefully this will be possible, if not this month, next month. The new Ministerial Regulation (Permen) regarding gross split will simplify gross split. So, there are a lot of old parameters, so there are only 3,” he explained.
That way, if the new regulations governing the simplified gross split are issued, then oil and natural gas (oil and gas) companies can apply for a transfer of the contract scheme.
“Sometimes if you use gross split and sometimes one field is not possible, even giving 100% to KKKS is still negative. So maybe you have to move,” he said.
“It's actually simplified gross split The main goal is for MNK unconventional. For example, the KKKS cost recovery (scheme) is reluctant. “So he wants to get the royalty tax quickly, it doesn't exist yet in Indonesia, right,” he concluded.
Previously, the Head of SKK Migas, Dwi Soetjipto, said that currently his party was facing many requests from KKKS to transfer the cooperation contract. Previously, the Ministry of Energy and Mineral Resources required KKKS to use a gross split contract scheme in carrying out upstream oil and gas business activities in Indonesia.
However, recently the government has provided flexibility in other forms of contracts, namely Production Sharing Contracts Cost Recovery which was implemented earlier. “We have indeed entered a period where everything has to be done Gross Split. But now the government has opened up the possibility of voting Cost Recovery or Gross split. Of the work areas where tenders have just been opened, almost all of them chose Cost Recovery. Meanwhile, those who have Gross Split are currently asking to move to Cost Recovery,” said Dwi in the Opinion Listening Meeting (RDP) with the DPR RI Baleg, Wednesday (30/8/2023).
However, Dwi said that currently his party is looking for a strong enough reason before submitting this to the Minister of Energy and Mineral Resources, Arifin Tasrif.
According to Dwi, in principle, because the upstream oil and gas sector has a fairly high level of risk, the scheme Cost Recovery more in demand by business actors involved in the upstream oil and gas industry. “If with Cost Recovery the risk can be borne together, with Cost Recovery in general they are very aggressive in investing and exploring, which Gross Split “We always have to woo them because they have already spent money first,” he said.
[Gambas:Video CNBC]
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