New Rounds in Oil and Gas Industry
- There have been many fundamental changes in the oil and gas business in 2020, including policies related to the oil and gas investors' flexibility to choose between cost recovery and gross split schemes in the management contracts of working areas as operators. Thus, the gross split regime as a single policy ended.
- The Job Creation Bill submitted to the House of Representatives promises many conveniences in the oil and gas business, including a simpler bureaucracy related to the management of environmental impact analysis (AMDAL), for example. The new bill will exempt the regional government's authority and direct it entirely to the central government.
- The easily-changing regulations still pose a risk that may burden business activities in the oil and gas sector. Changes to the rule indicate two things: the absence of domestic long-term oil and gas development scenarios and policymakers' favor, which plays an essential role in the birth of decisions that have an impact on business.