Report on Indonesia's PSC Sovereignty Versus Contract Sanctity
Article from: OGEL 4 (2010), in Upstream Petroleum Regulation incl. Host Government Contracts
Background
In March 2005 I reported for the OGEL Journal (vol. 3, issue 1) on a list of contractual issues of special importance that emerged over the years in the execution of petroleum contracts in Indonesia. One of the conflicting issues was over commerciality, which has dominated the Indonesian petroleum industry activities in the 1980's.[1] The disputes have caused delays in new field development projects, particularly in respect to discoveries with small or marginal reserves. The disagreement for placing a discovery on production stemmed from the absence of a contract provision ...