JAKARTA: Indonesia announced over the weekend that it had made revisions to a 2017 law that will give oil and gas (O&G) investors more flexibility when choosing their contract options for exploration.
The revisions, which came into effect on July 16, allow contractors to choose between different sharing contracts including the “cost recovery” and “gross split” systems in an effort to boost investment.
Indonesia adopted the “gross split” scheme for O&G production deals in 2017, in which contractors shoulder the cost of exploration and production in exchange for retaining a bigger portion of the O&G they recover.
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