my take on qpn, page-4

This is prior to Sk Migas but is probably still right.

Cooperation Contract

Nowadays, the form of cooperation contracts that is available for new Working Area is Production Sharing Contract (“PSC”). Further, current PSC is classified into conventional PSC and coal bed methane PSC. Cooperation contract is valid for a period of 30 years and extendable up to 20 years. The 30 years period consists an exploration and exploitation period whereby exploration last for 6 years (with 3 years firm commitment) and extendable up to 4 years.

The Minister of Energy and Mineral Resources has the authority to determine, stipulate Working Areas and the appointment of BE/PE which is granted to carry out Upstream Business Activities in certain Working Area. Working Area is awarded through the following mechanism: (i) regular tender; and (ii) direct offer which is preceded by joint study.

Before the promulgation of Law No. 22/2001, Pertamina granted various cooperation contracts other than conventional PSCs, i.e. PSC-Joint Operating Contract (“PSC-JOA”), PSC-Joint operating Body (“PSC-JOB”), Technical Assistance Contract (“TAC”) and Enhanced Oil Recovery Contract (“EOR”). Based on Article 104 Government Regulation No. 35 of 2004, these contracts are still valid until the expiry of the respective contracts and with the condition that PSC-JOA and PSC-JOB are assigned to BPMIGAS from Pertamina while TAC and EOR are still under supervision of Pertamina (i.e. PT Pertamina EP). TAC and EOR are under the control of PT Pertamina EP based on cooperation contract entered into with BPMIGAS dated 17 September 2005 (“PSC Pertamina EP”). Currently, PT Pertamina EP, based on the PSC Pertamina EP, offers a form of cooperation contract being named as Kontrak Kerja Sama Operasi or Operation Cooperation Contract (“KSO”) to BE/PE for carrying out exploration and exploitation in certain working area within the PSC Pertamina EP.