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Chapter III : Commercial Data

An economic evaluation has been done to examine whether the exploration discovery can be
commercially developed. The evaluation is based on the terms of the Production Sharing
Contract (PSC) that has been signed between the Contractor and BPMIGAS on behalf of
Government of Indonesia.

3.1. Production Sharing Contract (PSC) Terms

Centaury PSC block was signed on December 30, 2003 between BPMIGAS on behalf
of the Government of Indonesia and OMEGA CARIGALI as contractor for 30 years.
The Production sharing contract terms are summarized in Table 12-1.

Table Error! No text of specified style in document.-1 Centaury PSC Contract Term
Award Date 30 December 2003
Duration 30 years from awarded date
Area 1,567 Km2
First Tranche Petroleum (Oil) 10% (not to be shared with contractor)
Tax Rate 44.0%
After tax oil split 75% : 25% BPMIGAS : Contractor
After tax gas split 60% : 40% BPMIGAS : Contractor
Domestic Market Obligation 25% of contractor share of hydrocarbon
Domestic Market Obligation Fee (Oil) 25% of crude price
DMO Holiday 60 Months starting first oil production
Domestic Market Obligation Fee (Gas) Weighted average contract price
Investment credit – gas 55%
Signature Bonus $ 4,000,000
Equipment/Services $ 300,000
$ 1,000,000 @ 25 MMBOE
Production Bonus
$ 2,000,000 @ 50 MMBOE
$ 3,000,000 @ 75 MMBOE

3.2. Pre Development Cost
As per BPMIGAS regulation on Plan of Development submission date 10 June 2010, a
pre production cost must be included into the economic calculation. Total amount of
pre production cost of Centaury PSC is US$ 73.8 millions based on projected
expenditures at year end 2011. All AFE related with pre development activities has
been approved by BPMIGAS. A total of US $ 35.73 million out of US$ 73.8 million
have been closed out. Close out process for the remaining cost is on going.