GROSS SPLIT SCHEME ENCOURAGES INVESTMENT IN OIL

by Andi Abdussalam

Jakarta, May 5 (Antara) - The government has changed its production sharing contract (PSC) scheme in its cooperation with contractors (KKKS) in the oil and gas exploration business in the country.          It has introduced the adoption of the Gross Split PSC scheme, replacing the Cost Recovery PSC system, claiming that the investment process has become smoother and many oil working areas have received investment from contractors.          "It is not true that there is only one contractor who has made investment through the gross split system. Since January 2017, up until early in May 2018, there have been 16 working areas that have received investment using the gross split scheme," Agung Pribadi, the head of Information and Public Cooperation of the Energy and Mineral Resources (ESDM) Ministry, said in Jakarta on Friday (May 4).          He made the statement clarifying that the gross split scheme did not discourage businesses to make investment in the oil and gas sector.