Indonesia mulls over "shake-up" in oil & gas deals

Contractors to should exploration and production costs.

According to a Reuters report, Indonesia plans to change future production sharing contracts in its upstream oil and gas sector so that contractors shoulder the cost of exploration and production, rather than be reimbursed by the government.

Energy Minister Ignasius Jonan said on Monday that the government plans to issue a new regulation in January so that such costs would be reflected by a more flexible split in revenue from production.

Such a system, instead of the existing cost-recovery system, would be fairer and more efficient, and likely to increase proven reserves, he said.

View the full story on Reuters here.