Oil & Gas Sector Indonesia: Gross Profit Sharing Fairer Mechanism
The government of Indonesia is confident that the new gross profit sharing mechanism that is set to replace the cost recovery scheme in the oil and gas industry in early 2017 is a fairer system for both the oil & gas contractor and the government. Earlier this month, Indonesia's Energy and Mineral Resources Ministry announced this change in course. However, the new gross profit sharing mechanism in the oil and gas industry will only be applied to new contracts starting from early 2017.