10% Participating Interest for Upstream Oil-and-Gas Businesses Restructured: New Rules for BUMD Eligibility and Mid-Contract Share Transfers

In 2016, the Minister of Energy and Mineral Resources (“ Minister ”) introduced Regulation No. 37 of 2016 on Provisions on the Offering of 10% Participating Interest (“ PI ”) in Oil-and-Gas Working Areas (“ Regulation 37/2016 ”). As its title suggests, Regulation 37/2016 outlined the applicable offering mechanisms, including the types of parties eligible to receive offerings, required preparations and the appointment of regionally owned enterprises (Badan Usaha Milik Daerah– “ BUMD ”). It should also be noted that the various offering mechanisms that were outlined under Regulation 37/2016 were briefly summarized in the following edition of Indonesian Legal Brief (“ ILB ”): “ New Provisions on 10% Participating Interest for Upstream Oil-and-Gas Businesses ”.