State revenue realization from the upstream oil and gas sector during January-November 2017 reached US$25.38 billion, or 93 percent of the revised State Budget's target of US$27.28 billion. This achievement comprises revenue from KKKS contractors (US$4.37 billion), cost recovery (US$9.69 billion), and the government's share (US$11.33 billion).
Although still below target, 2017 upstream oil and gas revenue exceeded the 2016 achievement of only US$24.89 billion. The rise in oil prices to US$60 per barrel has not been able to significantly boost revenue from this sector.
For information, the lack of certainty regarding the implementation of the gross split scheme, replacing the previous Production Sharing Contract (PSC), has caused oil and gas industry players to hold back on investment. The results of the new oil and gas block auction offered by the government have been postponed again, awaiting the completion of the Government Regulation on taxation under the new scheme.
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