Govt to raise revenue split for oil and gas contractors

Minister of Mineral Resources and Energy Purnomo Yusgiantoro said on Tuesday that the government would provide incentives to oil and gas firms making oil exploration in remote and deep-water areas including a greater revenue split.

Purnomo was quoted by the Bisnis Indonesia daily as saying that the new policy was expected to increase interest among investors to make exploration in the two type of areas.

Purnomo did not provide details. Under the current production-sharing contract with the state-owned oil and gas firm Pertamina, private oil and gas contractors receive 15 percent of the revenue while Pertamina gets 85 percent.

Some have earlier demanded the government to provide a 50:50 percent revenue split for oil exploration in frontier areas.(*)