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What is First tranche petroleum?

Updated: 9/14/2023
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15y ago

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First Tranche Petroleum (FTP) is the oil and gas shared by the parties in PSC before the cost recovery. Usually the FTP shared is between 10% - 20% of production. The FTP mechanism was applied for the first time in 1988 for Indonesian PSC, and for some oil and gas practitioners, FTP is treated as Quasi-Royalty.

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15y ago
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Q: What is First tranche petroleum?
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