Gross Split Scheme Attracts Big Companies to Participate

JAKARTA - The announcement of Conventional Oil and Gas Work Area Bid 2017 held on Wednesday (1/31) has proven than Gross Split scheme attract investors. Big companies participated in upstream oil and gas management by using Gross Split scheme.

"I affirm that the winner of the bid are big companies, not small companies. Those winning the blocks are companies seriously invest and have three important things: financially, technically, and legally good," explained Arcandra in the announcement of Conventional Oil and Gas Work Area Bid 2017 in Ministry of EMR, Wednesday (1/31).

The implementation of Gross Split scheme for big upstream oil and gas companies will ease the business and efficient the management. "We have to promote Gross Split scheme because ease of doing business will be better. If we talk about efficiency and affectivity, then Gross Split is the answer," affirmed the Vice Minister.

Arcandra also appreciated the period of the bid that was faster than the previous. "Usually it needs two, three, four to six months to bid. For the bid, I targeted that we will announce the winner one month after the closing. All the process are transparent. There are assessment why those are deserved to be the winner. All process could be accepted by all sides" said Arcandra.

The Government announced 5 companies as the winner of Conventional Work Area Bid Stage I 2017. The total investment of the bid is for US$ 23.5 million and signature bonus for US$ 3.5 million. Those five companies are Mubadala Petroleum (SE Asia) Ltd for Andaman I, Consortium Premier Oil Far East Ltd, Kriss Energy (Andaman II) BV, Mubadala Petroleum (Andaman II JSA) Ltd for Andaman II, PT Tansri Madjid Energi for Merak-Lampung and PT. Saka Energi Sepinggan for Pekawai and West Yamdena.

The bid has been extended for four times since the end of May 2017 as waiting for the approval of Governmental Regulation on Gross Split Taxation that issued in the end of December 2017 that is PP 53/2017. (AK)

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