Conversion from Gross-Split to Cost-Recovery Made Easy

In an effort to achieve a more efficient and effective scheme for oil-and-gas profit sharing through the organization of profit-sharing contracts, the Minister of Energy and Mineral Resources (“Minister”) has issued Regulation No. 13 of 2024 (“Regulation 13/2024”) on Gross-Split Profit-Sharing Contracts (“GS-PSC”), which has been in force since 12 August 2024.[1] The issuance of Regulation 13/2024 has simultaneously repealed and replaced Regulation of the Minister No. 08 of 2017, which bore the same title and which has been amended a number of times, most recently through the issuance of Regulation No. 12 of 2020 (collectively referred to as “Regulation 08/2017”).[2]