Monday, 6 January 2014

MINISTRIAL DECREE ON CONTRACT EXTENTION TO BE RELEASED SOON



Regulation of the Ministry of Energy and Mineral Resources on extention of contract in oil gas business was at the stage of finalization and was expected to be released in not too distant future. This was set forth by the Director of Oil Gas Industry Development of the Directorate General of Oil Gas, Ministry of Energy and Mineral Resources Hendra Fadly on Tuesday [10/12].           

According to Hendra the Regulation was not only discussed at the Ministry but also at other institutions. “The point are being discussed. We hope that the Regulation would serve as directives for future contracts,” Hendra said.

The Permen Regulation would serve as some sort of Standard Operating Procedure [SOP] for oil gas contracts. For example, how many years form the previous contracts. “So there would be definite stages in extending the contract. The criteria is there,” Hendra stated while saying that all were being summarized today. “Therefore our attention today is on the extention of contract, so let’s include it in the regulation. Hopefully it would be implemented soonest.”

Furthermore Hendra said there was no particular rules on oil gas contract extention. The applicable regulation on oil gas today was the Government Regulation no. 35 year 2004.

In the same opportunity the Board of Indonesian Petroleum Association [IPA] Chairman Sammy Hamzah stated that what was transparence. “We expect there would be transparent process so it would not be treated as plaything and not be abused by certain people” Sammy said. Meaning, this contract extention should not be taken advantage of by them.

Business News - December 13, 2013

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