Contractor Fee Payment Procedure for Upstream Oil-and-Gas Business Activities Amended

Back in 2019, the Minister of Finance (“ Minister ”) issued Regulation No. 118/PMK.022/2019 (“ Regulation 118/2019 ”), which set out details of the procedure for the payment of Domestic Market Obligation (“ DMO ”) fees, contractor overlifting and/or contractor underlifting in relation to upstream oil-and-gas business activities. The Minister has now updated this procedure through the issuance of Regulation No. 51 of 2023 (“ Amendment ”), which is being aimed at the optimization of state revenues and the provision of a legal basis for the settlement of the rights and obligations of the state under the abovementioned payment conditions. [1]