"This year, we have offered 26 new oil and gas contracts of work to investors," an expert staffer for strategic planning of the Energy and Mineral Resource Ministry, Yudo Dwinanda, stated.
The ministry, he noted, has improved the regulation on production-sharing contract under gross split scheme for upper stream oil and gas business.
The government has issued ministerial regulation no. 52/2017 on the amendment of ministerial regulation no. 8/2017 on gross split contract.
Yudo remarked that the ministerial regulation is aimed at addressing various issues that have hampered the investment in the sector, while investment has been a key for economic growth.
"The gross split scheme is one breakthrough to overcome the problem, as a substitute for regulation on Production Sharing Contract (PSC)," he added.
Among the stimulus in gross split scheme would be fiscal incentive. On the other hand, the government has revoked 90 regulations, which were seen to have hampered investment, and simplified the licensing process to create a conducive climate for investment.
However, the government did not set such a high target for oil and gas contract of work in 2018.
"Of the total 26 contracts of work we offered, it would be good to get at least 13 contracts, or half of it," he explained.
The government did not make any offer during 2015 to 2016 period, while in 2017, it offered five contracts of work.
"So far, investors have shown a positive response, and it is not true that the gross split scheme is discouraging," Yudo revealed.
Reported by Faisal Yunianto
(S022/INE)
(T.SYS/A/KR-BSR/B/H-YH)
Reporter: SYSTEM
Editor: Heru Purwanto
Copyright © ANTARA 2018
