No maximum limit for oil and gas bonus: ESDM Ministry

Jakarta (ANTARA News) – The Energy and Mineral Resources Ministry said it has issued a new regulation under which there would be no ceiling on bonus for the government by signing new oil and gas production sharing contracts.

Under the old regulation the state received a bonus ranging from US$1 million up to US$250 million for signing a production sharing contract.

Now based on the new regulation of the ESDM Minister No 28 of 2018 there is no more upper limit. The bonus is at least Rp1 million and there is no maximum limit. Therefore, the state could received larger bonus, the information from the ESDM Ministry said here on Monday.

Chief spokesman of the ESDM Ministry Agung Pribadi said the state revenue in bonus could be larger from oil and gas upstream industry.

Based on the regulation of the ESDM Minister No. 28/2018, after their contracts with their present contractors have expired, operation of oil/gas blocks, would be offered to their present contractors with extension of contracts, taken over by the state oil and gas company Pertamina, jointly by the old contractors and Pertamina or by new contractor selected through auction.

A team would be set up with members including representatives of the ESDM Ministry and other related agencies. The team would make evaluation and valuation of the bonus. The bonus is based on a certain formula based on a decision of the ESDM Minister.

Source: ANTARA News