Measuring the Effectiveness of Gross Split System in Production Sharing Contract as Form of Nation Energy Sovereignty
- DOI
- 10.2991/iceml-18.2018.80How to use a DOI?
- Keywords
- effectiveness of Gross Split, Production Sharing Contract, nation sovereignty
- Abstract
A fundamental philosophy of sharing contract states that the ownership of natural resource is in the government authority until the point of turning over, controlling operational management under country control, capital and risk entirely is the responsible of the contractor. Gross Split mechanism in Production sharing Contract creates several issues such as, first the law impact on the regulation of implementation particularly those relating to production sharing contract (PSC). Second, the uncertainty of field commerciality counting either relating to economic value achievement or the economy aspect which cannot be achieved. Third, the goods and operational land post activity. Fourth, the settlement and position of contractor in oil contract in Gross Split mechanism which is inferior. To solve the problem above, it needs strategic steps done, such as first, do synchronization and harmonization for law product relating to management in oil field in order that there is law certainty, second, it needs to review the share or percentage between contractor and government in Gross Split contract with many considerations of business worthiness, and position of the sides in contract sharing by attending technology and capital, and risk of the sides involved in PSC Gross Split in order that in fulfilling proportionality principle in the sharing contract is suitable with rule in the regulation No. 22 in 2001 and other implementation rules
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Yudho Taruno Muryanto PY - 2018/09 DA - 2018/09 TI - Measuring the Effectiveness of Gross Split System in Production Sharing Contract as Form of Nation Energy Sovereignty BT - Proceedings of the 2018 International Conference on Energy and Mining Law (ICEML 2018) PB - Atlantis Press SP - 363 EP - 365 SN - 2352-5428 UR - https://doi.org/10.2991/iceml-18.2018.80 DO - 10.2991/iceml-18.2018.80 ID - Muryanto2018/09 ER -