Government has on Wednesday (July 11) signed the contract extension of four oil and gas blocks, with their scheme changes into the gross split from previously cost recovery-based. The government securing investment commitment of US$148,4 million in five years from the deal. The contracts are the oil and gas blocks expired in 2019 and 2020; Bula block, Malacca Strait, Kepala Burung block, and Salawati block.
Two blocks are extension contracts and the others are a joint management contract between the existing contractor with Pertamina for 20 years. The government hopes the contractors can immediately take over management to maintain and improve production.