Domestic Market Obligation Fees - Oil and Gas Sector

For companies involved in the oil and gas sector the requirements to ensure sufficient oil and gas supplies for domestic consumption in compliance with joint work contracts is not a new phenomena. However, the procedures and mechanisms for the fee payments associated with Domestic Market Obligations (DMO) and over / under lifting fees have been amended to reflect the new role of PT Pertamina (Persero) in the market place. Over / under lifting is where a company exceeds or fails to lift the agreed amount of oil or gas stipulated in the Joint Work Contract (JWC).