Gov?t offers bigger contractors? split for 11 exploration blocks

Government on Wednesday announced that it offered more generous split for investors for the 11 exploration blocks it offered this year.

According the release from ministry of energy and mineral resources, investors will get between 20 percent to 25 percent split for oil and 35 percent to 45 percent for gas. Normally for standard PSC terms, government only offered 15 percent split for oil and 30 percents for gas. The government also set first tranche petroleum at 10 percent, down from 20 percent previously.

The incentives are valid only for the 11 blocks offered.

?Evaluation shows that current PSC, terms is less attractive compared to those offered by another Asia-Pacific countries, and therefore government deems it important to give more incentive to enhance oil and gas exploration in Indonesia,? said the ministry in a statement.

Government offered 11 new exploration blocks in Central Sumatra, East Java and East kalimantan in February this year. (godang)

No.	Block Name	Area (km2)	Government Revenues (%)			Contractor Revenues (%)
			After Tax		FTP	After Tax		?IC (for gas only)
			Oil	Gas		Oil	Gas
1.	Merangin I - Onshore Central Sumatra	3,247	75	60	10	25	40	55
2.	Merangin II - Onshore Central Sumatra	2,847	75	60	10	25	40	55
3.	Rembang - Offshore North Central Java?	4,220	75	60	10	25	40	55
4.	Bulu - Offshore North Central Java	3,494	80	65	10	20	35	55
5.	South Madura - Offshore East Java	1,586	80	65	10	20	35	0
6.	Northeast Madura I - Offshore East Java	3,434	80	65	10	20	35	0
7.	Northeast Madura II - Offshore East Java	4,617	75	60	10	25	40	0
8.	East Kangean - Offshore East Java	5,448	75	60	10	25	40	0
9.	North Bali I - Offshore East Java	3,954	75	55	10	25	45	0
10.	North Bali II - Offshore East Java	3,869	75	55	10	25	45	0
11.	Tarakan - Offshore East Kalimantan	638	75	60	10	25	40	0
FTP = First Tranche Petroleum; IC = Investment Credit