Oil contractors to get higher share
Wednesday, November 1 2000 - 04:00 AM WIB
The government plans to offer a 80:20 production sharing contracts (PSCs) in its attempt to attract foreign oil contractors, Mines and Energy Minister Purnomo Yusgiantoro said here yesterday.
"We will review this formula if there are no investors interested," the minister said.
The current split of 85:15, in favor of the government, is expected to fail to lure contractors needed to help Indonesia meet a new oil quota set by the Organization of Petroleum Exporting Countries (OPEC). OPEC's Asian only member, Indonesia produces 1.30 million barrels per day (bpd) of crude, below its new quota of 1.36 million bpd.
"We need to give incentives. There is a possibility of changing the split to 80:20 instead of 85:15," Purnomo said.
Purnomo said the government and the state oil company Pertamina can measure the interests of the oil contractors in the upcoming oil-production tender.
Pertamina is set to tender for foreign oil contractors to develop six blocks in the Makassar Straits. (*)