University:
Duke University
Course:
MMS 450 | Markets and Management Capstone
Academic year:

2023
Views:

463

Pages:

3
Author:

B. Duniawi

Production Sharing Contract Type of Contract Production Sharing Contrace (PSC/FTP) Management Pertamina / Pertamina Control Body MPS Directorate Participating Interest Contractor Operator Contractor Investment Contractor Term 30 years Initial Phase Exploration (Seismic + 1 Exploration Drilling) Commitment Determined in the contract, firm first 2 3 years Termination/ Back-out Only after 2/3 years Commerciality Pertamina/Contractor Declaration Of Commercial Viability of the Project Development Phase Approved Work Program + Budget Proceeds (Oil) After Cost Recovery Pertamina/Contractor Corporate Taxes Yes (44%) Cost Recovery Full Recovery/Depreciation Past Expenditure No Investment Credit Yes (17%) Interest on Loan Yes Gas Entitled 85/15, Domestic market obligation 10% of export price after 5 years Entitlement to Equipment Become Property of Pertamina Operating Body COMPANY (PSC) Relinquishment Gradually, year 3 = 25%, year 6 = 25% and year 10 = 30% On the new Indonesian Oil and Gas Law PERTAMINA as Govt agency is replaced or represented by Minester of Energy & Mineral Resources and MPS is replaced by Govt. PSC Flow of Oil In recognition of the heightened risks involved in oil and gas ventures in certain areas, the Government of Indonesia has offered the following sharing splits for new working areas: Oil Gas Makassar Strait 65: 35 70: 30 Bawean 85: 15 70: 30 Natuna 85: 15 70: 30

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