Ministry hopes regulation on gross split tax system to be issued before tender deadline

The Ministry of Energy and Mineral Resources hopes that the government regulation on taxation system of the gross split oil and gas production sharing contract can be issued before November 27, the tender deadline of oil and gas blocks being offered to investors this year.

?I hope it (the government regulation) to be issued before November 27,? Director General of Oil and Gas at the ministry, Ego Syahrial said in a statement obtained on Saturday.

He, however, reiterated an earlier statement that if the government regulation is not issued before November 27, there?s possibility for the oil and gas block tender deadline to be extended again.

The government is offering 15 oil and gas blocks, comprising of 10 conventional and 5 non-conventional blocks to investors. The government will apply the new gross split scheme in the oil and gas contracts.

The ministry has repeatedly delayed the deadline for bidders in submitting the tender document in a bid to lure more bidders following last year?s failure in getting investors. The latest deadline for bidders to submit tender documents was set for November 27 in the hope that the government regulation on the taxation system of the gross split scheme could be introduced before that date.

Editing by Reiner Simanjuntak