Major diferrence between Indonesia and Malaysia PSC

Major diferrence between Indonesia and Malaysia PSC (before 2017 Gross Split)

Interim Relinquishment during exploration period

The major difference between both PSCs during exploration period would be the interim relinquishment of exploration area in Indonesia PSC. The impact are quite significant. Once the area has been relinquished, the prospects within the relinquished area would be less economical and less attractive to big companies.

Nonetheless, for a small company the prospects within the relinquished areas would attracts them to invest. Why? Assumed there is already production in nearby PSC. Tie in to the existing pipeline would make it work.

After a while, due to interim relinquishment of blocks, the new blocks would be really segmented.