Oil and Gas Contractors Wants More Split Portions

Summary

The Energy and Mineral Resources (ESDM) Ministry revealed several oil and gas contractors (KKKS) asked for extra production-sharing percentages or splits for oil and gas block operations. “We received many requests [of additional splits] from KKKS, including from Pertamina,” ESDM Ministry’s Secretary-General, Ego Syahrial, revealed on Thursday (11/19). Unfortunately, he did not tell other contractors requesting additional splits.

However, Ego then ensured that the government did not want to make additional splits the only incentive. Oil and gas contractors could also maximize the benefit of taxation or investment credits. “In the future, the government will encourage oil companies to take advantage of all available incentives that have been given before asking for changes. Lots of upstream oil and gas incentives are provided through Government Regulation No. 27/2017 and No. 53/2017,” he explained.

Moreover, the Energy and Mineral Resources Ministry will also listen to all parties’ inputs to discuss additional incentives. “Currently, we are reviewing the split requests and hope that a win-win solution will come up. The government’s task is to make upstream oil and gas activities in Indonesia continue, especially amid the COVID-19 pandemic,” he added.

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