Govt seeks additional share split from blocks extension
Saturday, November 27 2004 - 02:18 AM WIB
The government intends to increase its revenue share split from production sharing contractors as a condition for an extension of the contract.
“The spirit is how to generate additional revenue for the government,” said Novian Thaib, exploration and production director at the Ministry of Energy and Mineral Resources said on Friday.
Under the PSC, the share split is 85-15 percent for oil and 70-30 percent for gas, with the largest portion going to the government and the remainder to the contractor.
Novian said PT Energi Mega Persada had agreed to give up a 2.5 percent of its share split for oil and gas produced from the extension of the Kangean PSC to the government.
Novian said further that the government is currently in negotiation with Tangguh project shareholder over the share split. (godang)