The Minister of Energy and Mineral Resources, Ignasius Jonan, has been promoting every effort to improve oil and gas investment climate in Indonesia.

The minister said that the oil and gas investment climate is influenced by world oil prices, according to a statement received by ANTARA here on Tuesday.

“No one can predict oil prices,” he stated. According to him, the world oil price is very dependent on external factors, which no person or organization can control.

To anticipate the uncertainty of oil prices, the upstream oil and gas industry must be efficient and competitive in carrying out its operations.

“In the anticipation of uncertainty, the industry should undertake massive efficiency measures to be able to be competitive,” Jonan noted.

In line with Jonan, Deputy Minister Arcandra added that gross split policy emphasizes the principle of fairness and risk management of the industry. The split gross scheme also minimizes the risk of oil price uncertainty.

“The biggest risk to the oil and gas industry is the world oil price. If the oil price is lower than expected, then there will be additional split of up to 7.5 percent for the contractors. And if the oil price is high, the government will get the extra split. Thus, the government and the contractors face the same risk. They share the pain and share the gain, “Arcandra remarked.

antaranews.com