Friday, May 12, 2017

Issue Number: 3121

Recovery of Investment Costs During the Cooperation-Contract Transition Period for Upstream Oil-and-Gas Activity

The Ministry of Energy and Mineral Resources has issued Regulation No. 26 of 2017 on the Mechanism for the Recovery of Investment Costs in the Upstream Oil-and-Gas Sector (“Regulation 26/2017”), which sets out a number of mechanisms relating to the reimbursement of investment costs incurred by upstream oil-and-gas contractors (“Contractor”) during the management of working areas for the duration of the cooperation-contract transition period by the government.[1]   These mechanisms will apply during the cooperation-contract transition period, which the government may choose to extend (either through the use of the cost-recovery or gross-split schemes)....

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