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PSC Contracts

PSC Contracts. Firm commitment should be back-up by bank guarantee (BG) No Signature/production bonus, equipment and training fund (no front end costs) 10% Royalty will go to Govt and States ( Pemda ) Export tax - 10% of Profit Oil Excess Profit - 70% of profit price in excess of $25/ bbls

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PSC Contracts

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  1. PSC Contracts • Firm commitment should be back-up by bank guarantee (BG) • No Signature/production bonus, equipment and training fund (no front end costs) • 10% Royalty will go to Govt and States (Pemda) • Export tax - 10% of Profit Oil • Excess Profit - 70% of profit price in excess of $25/bbls • Research Cess - 0.5% of revenue • Min 15% Carigali participation (pay cash call) • Interests are not cost recoverable • Cost/revenue audited by Petronas Internal Audit only

  2. Different PSC duration for different environment to ensure fair return on investment PSC Duration (In Years) 1976 1985 DEEPWATER "R/C" Total Duration 24 38 24 24 Exploration 3+2 Gas Holding - 5 5 Gas Holding - 5 7 Gas Holding - 5 5 Gas Holding - 5 Development 2+2 4 6 4 Production 15 15 25 15

  3. Evolution of PSC terms has led to better Contractors’ take EVOLUTION OF PSC - COMPARISON OF CONTRACTORS TAKE

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