Indonesia to allow equity greater than 50% for contractors in new oil and gas blocks

JAKARTA: Indonesia's energy minister on Thursday said the government has made improvements in its oil and gas terms that would allow contractors to have equity shares greater than 50% in some new blocks to attract investment.

The archipelago nation is keen to boost output from its rich gas reserves while it still can, as global investors shift increasingly away from fossil fuels.

Minister Arifin Tasrif said the new terms are being offered starting from the third bidding round this year that was announced on Wednesday.

"The government is offering new working areas with more attractive terms and conditions, including improvements in the equity split between the government and contractors, enabling contractors to secure a share exceeding 50%," he told participants at an energy conference.

The government is also in the final stages of revising regulations to improve the economic viability of oil and gas projects in Indonesia, he added, without elaborating. - Reuters