Jakarta-Indonesia has started using a new gross split scheme in its upstream contracts with the Offshore North West Java block the first to be awarded under this system. The new system simplifies contracting processes by eliminating cost recovery, and is based on simply sharing gross production between the contract holders and the government in a pre-agreed split. This is expected to give companies greater autonomy in their operation decisions. The government is hopeful that this simpler system will boost investment and stem declining production.
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