STUDI EVALUASITERHADAP PELAKSANAAN COST RECOVERYDALAM KONTRAK BAGI HASILMINYAK DAN GASBUMI DI INDONESIA

As an important commodity that support industrialization and world economic growth for more than a.century, oil and gas nowadays contribute two third the world's need of energy. Oil and gas investment is high risk, capital intensive, and long yielding, therefore, in order to spread the risk, Indonesia as one of the producer country conducting the upstream activity through contract system with the investors, known as Production Sharing Contract (PSC). The contract states that the PSC's Contractors oblige to conduct oil and gas operation by supplying thefund, undertaking all risks, and providing all technologies together with the professionals, based on the applicable rules. On the other hand, the contractors have the rights to conduct oil and gas operations, use all the equipments andfacilities as said in contract, and obtain the reimbursement, known as cost recovery based on accounting principles, and receive the production net share after cost recovery. PSC stipulates cost recovery in Section v:1.2 PSC of Recovery of Operating Cost and Handling of Production. On the mainline, cost recovery consists of non capital cost of the year, depreciation of capital cost of the year, and unrecoverable operating cost of previous year. Practically, the unlimited contract term regarding cost recovery has caused the different interpretation between both partie