The contractors of the Brantas oil and gas exploration operational area in East Java have signed a gross split production sharing contract (PSC) scheme with the Indonesian government, extending a 20-year working contract with Lapindo Brantas Inc. as an operator with PT Prakarsa Brantas and PT Minarak Brantas Gas as contractors.
The contract extension will come into effect on April 23, 2020, following a 20-year contract period. The Indonesian government received a US$1 million signature bonus from the exploration project’s contract extension. The first-year implementation of the exploration project’s contract extension is set to generate a total investment value of $155.5 million.
Previously, the working contracts for other operational regions — the Strait of Malacca in Riau, as well as Salawati and Kepala Burung Blok A in Papua — which are about to expire in 2020 have also been extended by the Energy and Mineral Resources Ministry. The contract extensions for the operational regions were signed on July 11.
The total amount of the contractors’ participation interests also constitute the 10 percent participation interest that the project will offer to regional administration-owned enterprises.
Source: The Jakarta Post
08 August 2018