Research Article
The Role of the State in Upstream Oil and Gas Gross Split Contracts
@INPROCEEDINGS{10.4108/eai.13-2-2019.2286069, author={Muhammad Fajri}, title={The Role of the State in Upstream Oil and Gas Gross Split Contracts}, proceedings={Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia}, publisher={EAI}, proceedings_a={ICBLP}, year={2019}, month={10}, keywords={gross split production sharing contract upstream activities}, doi={10.4108/eai.13-2-2019.2286069} }- Muhammad Fajri
Year: 2019
The Role of the State in Upstream Oil and Gas Gross Split Contracts
ICBLP
EAI
DOI: 10.4108/eai.13-2-2019.2286069
Abstract
The enactment of the Republic of Indonesia Minister of Energy and Mineral Resources Regulation Number 08 of 2017 regarding Gross Split Production Sharing Contracts marks a new era for Indonesia's Upstream Oil and Gas Industry. Gross Split was introduced as the government's answer to the dissatisfaction with the Cost Recovery scheme that has been going on for decades. Without making changes to Law No. 22 of 2001 concerning Oil and Gas, the Government considered it necessary to immediately issue regulations related to the Gross Split scheme in order to increase state revenues in the upstream oil and gas sector. Gross Split contracts also offer bureaucratic cuts in investment procedures expected to attract investors. This research aimed to analyse the legal aspect related to Gross Split regulation and to determine the extent of the government's role in implementing control and supervision of contractor activities in the Gross Split Scheme.