Oil and Gas Contracts to follow New DMO Payment Procedures

The Minister of Finance (“Minister”) recently issued Regulation No. 139/PMK.02/2013 on Payment Procedures for fulfilling Domestic Market Obligations, and Overlifting and Underlifting Contractors fee in Upstream Oil and Gas Business Activities (“2013 Regulation”).

In essence, the 2013 Regulation sets out the payment procedures for Domestic Market Obligations and Underlifting fees by the Special Works Unit for Upstream Oil and Gas Activities (Satuan Kerja Khusus Pelaksana Kegiatan Usaha hulu Minyak dan Gas Bumi – “SKK Migas”), to companies that have been selected as contractors to perform oil and gas exploration and exploitation under a Cooperation Contract (Kontrak Kerja Sama).