Indonesian government frees the manager of oil and gas working area to determine a business scheme that is believed to provide confidence for business expansion. The Energy and Mineral Resources (ESDM) Ministry said the new oil and gas gross split production sharing contract (PSC) reflected in the EMR minister regulation Number 12 of 2020 signed by the minister, Arifin Tasrif, on July 15.
This change is to provide legal certainty and increases an investment in upstream oil and gas business activities. Some of the amended articles are Articles 2 and 4, which regulate the form and main provisions of the gross split PSC.
While, for the state-owned energy producers, PT Pertamina or its affiliates as managers of new working areas whose cooperation contracts have not been signed, the minister has determined the form of the cooperation contracts.
