Little joy from Indonesia’s new PSC regulations
The Lima flow station, offshore Jakarta, Indonesia. (SKKMigas)
New regulations on production-sharing contract (PSC) extensions in Indonesia could provide clarity and frustration in equal measure for foreign operators, which have struggled with uncertainty and mixed signals from Jakarta.
Existing oil and gas regulations covering PSC extension applications do not set a deadline for a government decision before the original contract expires. They also do not set a time limit for how long the government can take to consider the request.