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Indonesia Upstream Fiscal and Regulatory Report - 2nd 2018 Bid Round Opened under Gross Split Terms

Indonesia Upstream Fiscal and Regulatory Report - 2nd 2018 Bid Round Opened under Gross Split Terms

Summary

Indonesia has introduced gross split PSAs for investment in its upstream oil and gas sector. Following the regulatory overhaul, the government is looking to promote exploration through new licensing rounds. In August 2018, the second conventional regular tender bid round opened, which for the first time includes production acreage. Going forward, Pertamina intends to increase its role as an upstream operator in the sector, this may introduce new third-party opportunities.

“Indonesia Upstream Fiscal and Regulatory Report - 2nd 2018 Bid Round Opened under Gross Split Terms”, presents the essential information relating to the terms which govern investment into Indonesia’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Indonesia’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Indonesia
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Indonesia.
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Indonesia’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making.


  • Regime Overview
    • Table Regime Overview
    • Table Figure 1: Regime Flow Chart – Gross Split PSA
    • Table Figure 2: Regime Flow Chart – Cost Recovery PSA
  • State Take Assessment
    • Table Figure 3: Indonesia, Indicative NPV10/boe, IRR and State Take Comparison, Regional
  • Key Fiscal Terms
    • Bonuses
      • Table Indonesia, Production Bonuses (US$ mil), Selected Contracts
    • Gross Split Production Sharing (Contracts from 2017 Onwards)
      • Table Indonesia, Base Gross Split Ratio
      • Variable Adjustment Factors
        • Table Indonesia, Gross Split, Field Development Status Adjustment Factor
        • Table Indonesia, Gross Split, Field Terrain Adjustment Factor
        • Table Indonesia, Gross Split, Reservoir Depth Adjustment Factor
        • Table Indonesia, Gross Split, Supporting Infrastructure Availability Adjustment Factor
        • Table Indonesia, Gross Split, Reservoir Type Adjustment Factor
        • Table Indonesia, Gross Split, CO2 Content Adjustment Factor
        • Table Indonesia, Gross Split, H2S Content Adjustment Factor
        • Table Indonesia, Gross Split, Crude Oil Gravity Adjustment Factor
        • Table Indonesia, Gross Split, Local Content Adjustment Factor
        • Table Indonesia, Gross Split, Production Phase Adjustment Factor
      • Progressive Adjustment Factors
        • Table Indonesia, Gross Split, Crude Oil Price Adjustment Factor
        • Table Indonesia, Gross Split, Gas Price Adjustment Factor (Introduced by Regulation 52/2017)
        • Table Indonesia, Gross Split, Cumulative Oil and Gas Production Adjustment Factor
    • First Tranche Petroleum (Pre-2017 Contracts)
      • Table Indonesia, First Tranche Petroleum, 1988–2016 Contracts
    • Investment Credit (Pre-2017 Contracts)
      • Table Indonesia, Third-Generation Production Sharing Contract Investment Credit
    • Cost Recovery (Pre-2017 Contracts)
      • Cost Recovery Limit
      • Recoverable Costs
        • Table Indonesia, Depreciation Rates and Useful Lives by Asset Type under GR 79/2010
      • Marginal Field Uplift (2005-2018)
      • Treatment of Unrecovered Costs upon Transition to Gross Split Regime
        • Table Indonesia, Methods of Reimbursement for Unrecovered Costs Under Older PSAs
    • Production Sharing (Pre-2017 Contracts)
      • Conventional PSAs
        • Table Indonesia, Contractor Post-Tax Profit Oil Share (%), Third-Generation PSA Incentive Packages (1988–2001)
      • Unconventional PSAs
        • Table Indonesia, Sliding-Scale Unconventional PSA, 2015
      • TACs and KSOs
    • Direct Taxation
      • Corporate Income Tax
        • Table Indonesia, Corporate Tax Rates (%)
      • Deductions and Depreciation
      • Withholding Tax
    • Indirect Taxation
      • Value Added Tax
      • Land and Building Tax
      • Customs Duties
    • Domestic Market Obligation
      • Table Indonesia, DMO Prices
      • Unconventional and Coal Bed Methane
    • State Participation
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 4: Indonesia, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table Figure 5: Indonesia, Institutional Framework
      • Licensing Authority
      • Regulatory Agency
      • National Oil Company
    • Licensing Process
      • Licensing Procedure
      • 2018 Conventional Licensing Round
    • License Terms
      • Duration
      • Relinquishment
        • Table Indonesia, Current Relinquishment
        • Table Indonesia, Previous Relinquishment, 1981
    • Local Content
      • Title to Equipment
  • Outlook
  • Appendix
    • References
      • Table References
    • Contact Us
    • Disclaimer

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