Indonesia to overhaul future PSCs

Indonesia

JAKARTA, December 19, 2016 – Indonesian Minister of Energy and Mineral Resources Ignasius Jonan on Monday signalled revisions to the country’s future upstream production-sharing contracts (PSCs).

To be issued in January, new regulation will seek to overhaul the present cost-recovery system in an effort to gain greater flexibility in the way production revenue is split between the government and its contractors. “It will be applied for future PSCs, and it will not disturb existing PSCs,” Jonan said in Jakarta.

Factors such as field location, either onshore, offshore or in deepwater, and the level of local content used in a given project, could be factored into the split, according to statements by deputy minister Arcandra Tahar.

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