Cost recovery for the upstream oil and gas industry in the first half of 2017 reached US$4.87 billion, or 46 percent of the targeted US$10.49 billion. Meanwhile, the targeted cost recovery for 2018 is projected to increase to US$11.39 billion.
In 2016, cost recovery reached US$11.99 billion, or 115 percent of the targeted US$10.4 billion. Meanwhile, oil and gas lifting reached 2,009 thousand barrels of oil equivalent per day (Mboepd) from a target of 1,970 Mboepd.
Through the Minister of Energy and Mineral Resources Regulation Number 8 of 2017, the government has changed the Production Sharing Contract (PSC) to a gross split scheme. Therefore, all new oil and gas contracts will use the new scheme. Previously, production costs in the upstream oil and gas industry were reimbursed by the government, but under the gross split scheme, they will become the responsibility of the contractors.
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