Celebrating Oil And Gas Investment Climate, Minister Of Energy And Mineral Resources Offers Interesting Terms For Investors

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed, if the government offers oil and gas working areas (WK) with attractive conditions for investors

"The government continues to strive to create a good investment climate. The Ministry of Energy and Mineral Resources, the Ministry of Finance, and SKK Migas are in the final stages of revising Government Regulations 27 and 53 of 2017. This revision aims to improve the economic eligibility of oil and gas projects," said Arifin in his remarks at the 4th International Convention on Indonesian Upstream Oil and Gas (ICIUOG) 2023 in Nusa Dua, Bali, quoted Friday, September 21.

A number of interesting conditions offered include improving the distribution of equity between governments and contractors, allowing contractors to get parts exceeding 50 percent.

Second, a flexible contract scheme that applies to cost recovery and gross split settings for conventional and non-conventional activities

Third, 10 percent of the first phase of petroleum that can be distributed and DMO with 100 percent ICP during the PSC period, fourth, tax facilities at the exploration and exploitation stage.

Next, incentives, including investment credit and accelerating data shrinkage and ease of access through membership mechanisms at the Data Repository Migas (MDR).

Furthermore, he said, during the energy transition period from fossil energy to renewable energy (EBT) with little emissions, oil and natural gas are still the mainstay of energy fulfillment in Indonesia.

For this reason, the government continues to strive for domestic fuel needs to increase existing reserves by increasing oil and gas basin exploration activities that have not been explored.

"To meet oil and gas needs, Indonesia is currently focusing on efforts to explore oil and gas basins considering that Indonesia still has many oil and gas reserves that have not been utilized. Of the 128 hydrocarbon basins, 68 of them have not been explored," concluded Arifin.

For Indonesia, during the transition to Net Zero Emission in 2060, oil and gas will continue to play an important role in securing energy supply, especially in the fields of transportation and power plants.

In addition to exploration activities, starting in 2023, the Government of Indonesia is promoting the addition of new oil and gas working areas every year. Investors can participate through the work area offering process carried out by the government or directly negotiating with the government.