The gross split scheme would save time two to three years in the process of business that production could start earlier under more efficient administration, Arcandra said.Jakarta (ANTARA News) - Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar defended the new system of gross split in oil production sharing saying it is more efficient in cost and time.
"There was a study saying that the gross split scheme is less attractive and interesting. I want to know what variables were included in the calculation. Is time included?" Arcandra queried in seeking to socialize the gross split scheme here on Monday.
He said the gross split scheme will save mush time and that would also automatically save cost in distribution up to production.
The gross split scheme would save time two to three years in the process of business that production could start earlier under more efficient administration, he said.
This scheme is expected to guarantee state income in non tax revenues, and strengthens the function of the Special Unit of Upstream Oil and Gas (SKK Migas) to be able to concentrate on its function of supervision and implementer, he said.
He denied suggestion that the gross split scheme would hurt the state as the government maintains control including in determining production split for the state.
He said the split for the government and contractor are already calculated based on the calibration to 10 oil and gas concessions considered representing the production sharing contract (PSc) in Indonesia.
The oil splits are 57 percent for the government and 43 percent for contractor holding the cooperation contract (KKKS). The gas splits are 52 percent for the government and 48 percent for contractors.
"The splits are gross , the operational cost is to be paid by the contractors. Under the PSC scheme, the government does have a largest share of 85 percent for oil and 70 percent for gas but it has to pay for cost recovery," he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
