Government Postponed the Oil & Gas Blocks Tender

[JAKARTA] The Ministry of Energy and Mineral Resources has postponed the tender of oil and gas blocks under the gross split scheme, while awaiting the government regulation on the tax on gross split contracts. Director General of Oil and Gas at the ministry, Ego Syahrial, announced that the deadline for submission of bid documents under the direct and regular tender schemes had been extended, from 27 November to 31 December.
Ego said that the deadline had been extended awaiting finalisation of the draft government regulation on the gross split tax regime. One of the key points in this regulation concerns carrying tax losses forward for ten years. Another key area is the conversion of tax paid into additional profit share. Ego added that the extension notwithstanding, 20 documents have been accessed or purchased. The 20 documents are for the ten conventional oil and gas blocks that are up for tender.
Along with Ego, the press conference also attended by the SKK Migas Chairman, Amien Sunaryadi, and the IPA Director, Ronald Gunawan. "The IPA gives the highest appreciation to the Government of Indonesia, in this case the Ministry of EMR, which has given special attention to  Indonesia's upstream oil and gas industry in terms of issuance of certain regulations which impact to the regulatory certainty and national oil and gas competitiveness in the global market," Ronald said.
In this regard, he explained, the upcoming taxation regulation on PSC Gross Split, which will be formed as a Government Regulation (GR) with the involvement of relevant government institutions as well, will provide the high regulatory certainty that is needed. The IPA hope that this GR will be issued soon in order to increase the PSC Gross Split competitiveness and regulatory certainty as required. (katadata/PS)
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