The Government of Indonesia has appointed state-owned oil and gas firm Pertamina to operate 8¬†oil & gas blocks after contracts with existing operators expire in 2018. Indonesia’s new gross profit sharing scheme, which replaced the nation’s cost recovery scheme, will be applied to the new contracts in 2018. Under the gross profit sharing scheme the Indonesian Government and contractors agree up front on the proportion for splitting gross profit from oil and gas exploration (implying that all exploration and production costs are now borne by the operator).To subscribe please click here