HOW TO DETERMINE OPTIMUM SPLIT PERCENTAGE FOR CONTRACTORS, A SCENARIO ANALYSIS BASED ON CURRENT CONDITION

摘要

Indonesia Government decided to use a new system (gross split) for the new contract of oil and gas and Working Area extension contract through Regulation of the Ministry of Energy and Mineral Resources Number 8 of 2017 (amended through Regulation of the Minister of Energy and Mineral Resource Number 52 of 2017). Based on the previous studies, the authors assume, from the contractor perspective, the gross split contract will be more attractive if the percentage of contractor take in the gross split is higher than the previous contract. This paper presents a comparative analysis of the percentage of contractor take towards gross sales (gross revenue) by using three scenarios in accordance to the calculation of the gross split system compared with the amount/quantity of contractor take within the last 6 years under the existing production sharing system.