The Ministry of Energy and Mineral Resources (ESDM) has revised regulations governing upstream oil and gas investments to enhance flexibility for Cooperation Contractors (KKS) in Indonesia. Director Ariana Soemanto emphasized that these changes are designed to facilitate business operations by allowing contractors to choose between contract types based on their preferences, enabling them to transition between gross split and cost recovery models. The new gross split scheme, detailed in Ministerial Regulation No. 13 of 2024, ensures profit-sharing certainty of 75-95%, making Non-Conventional Oil and Gas Work Areas (MNK) more appealing for investment.

The new policy applies to contracts signed after the regulation's issuance and offers existing contracts the opportunity to transition under specific conditions. Notably, old gross split contracts for MNK and those in the exploration phase without government approval for the first plan of development can adopt the new scheme. As of now, at least five contractors have shown interest in this revised gross split scheme, signaling an effort by the Ministry to create a more attractive investment climate to stimulate discoveries and production in the oil and gas sector.

Source: https://www.borneonews.co.id/berita/389382-sulawesi-barat-dorong-investasi-untuk-pulau-balakbalakang