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31-Aug-2017 23:35

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With only 49 coal bed methane fields and four shale gas fields across the country, unconventional oil and gas fields only make up a small percentage of the total 289 active exploration and exploitation sites.

However, they may be the key to solving the countries continued shortages in oil and gas reserves.

79/2010 on cost recovery and tax treatments for the upstream oil and gas industry.

The government believes that current cost recovery — the reimbursement scheme for oil and gas companies’ exploration and production costs — has been ineffective in attracting contractors to conduct exploration activities and is in fact a burden on the state budget.

38/2015 on unconventional oil and gas, which allowed contractors to choose one of three contract options, said IPA director Sammy Hamzah.

The options are production sharing contracts (PSC), which use a net PSC sliding scale and gross split-sliding scale.

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Even so, the government’s share after tax will still have to be larger than the contractor’s final share.A DMO is the requirement imposed on firms to allocate a certain amount of oil or gas production to meet domestic needs.



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