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

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Indonesia , oil and gas , equity , commodity , energy

   

Next In Business News

CPO futures to trade on upside bias next week on expectation of weaker output
Oil gains over 2% but posts seventh weekly decline
In China’s slowing beauty market, big-brand discounts won’t cut it
YTL Power and Nvidia in AI collaboration
Westports inks deal with govt to expand terminals
Succession planning and moving in the right direction
Bank Pembangunan has plenty of potential
Setting the standards the Gamuda way
Singapore signs deal with Latin American bloc
Critical factors to consider before MLFF rollout

Others Also Read