Higher Income Sharing For Oil and Gas Investors

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  • Kilang minyak Bashneft-Novoil terlihat saat matahari terbenam di luar Ufa, Bashkortostan, Rusia, 29 Januari 2015. REUTERS/Sergei Karpukhin

    Kilang minyak Bashneft-Novoil terlihat saat matahari terbenam di luar Ufa, Bashkortostan, Rusia, 29 Januari 2015. REUTERS/Sergei Karpukhin

    TEMPO.CO, Jakarta - The government promised bigger part for oil and gas prospective contractors in eight areas of work offered this year. The amount depends on the location and level of difficulty of the field.

    "We want to attract more investors," said Director of Upstream Oil and Gas Djoko Siswanto, as released by the Directorate General of Oil and Gas, Friday, September 11, 2015.

    There are eight working area of non-conventional oil and gas offered in 2015. However, until now there has been no incoming requests from potential investors.

    The sharing promised for investors was 30 to 35 percent for oil and 35 to 40 percent for gas. This portion was increased from 15 and 30 percent for oil and gas, respectively.

    Djoko promised, from the eight working areas offered, oil sharing amounted to 30:70 only imposed on the working areas of South West Benggara, Rupat Labuhan, and Nimbrung. Other work areas oil revenue sharing amounted to 35:65.

    As for gas, the increase in the sharing portions are 35:65 only in working area of South West Benggara. The rest, 40:60.

    Other investment incentives promised are property tax exemption for the period of exploration. "We also are working with the Ministry of Finance so that all relevant tax related to exploration will be exempted,” said Djoko.

    Until last semester, oil and gas investment receded to a figure of US$ 5.9 billion. This quantity is not up to half of the investment target by year-end target of US$ 24.8 billion.

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