33 Oil and Gas Blocks to Utilize Gross Split in 2025

The government targets 33 oil and gas blocks out of a total of 86 Working Areas to utilize the gross split scheme by 2025. Currently, only one oil and gas block employs a Production Sharing Contract (PSC) with a gross split scheme, namely ONWJ, signed in January 2017. This will be supplemented by 32 oil and gas PSC cost recovery blocks whose contracts expire between 2018 and 2025.

To extend the expired cost recovery PSCs, the Contractor Contract Work Partners (KKKS) must utilize the gross split revenue-sharing scheme in accordance with the Ministry of Energy and Mineral Resources Regulation Number 08 of 2017 concerning gross split. If deemed uneconomical and not to be extended, the oil and gas blocks under their management may be returned to the government.

Because Ministry of Energy and Mineral Resources Regulation Number 08 of 2017 was considered unattractive to investors and received input from various parties, the government revised the regulation. As an improvement to the previous regulation, the government issued Ministry of Energy and Mineral Resources Regulation Number 52 of 2017 concerning amendments to the gross split revenue-sharing contract concept in the upstream oil and gas industry.