BPMIGAS proposes to double Participating Interest

Upstream oil, gas authority BPMIGAS has proposed to the government to increase local participation in an oil, gas block, popularly known as participating interest, to 20 percent from 10 percent currently.

BPMIGAS Chairman Kardaya Warnika told reporters on Monday that the 20 percent participating interest regulation might be enacted in the upcoming exploration tender round.

Kardaya said half of the participating interest would be appropriated to local or local government-owned business entity and another half would go to national oil, gas firm such as Pertamina or Medco Energi.

Under the current regulation, PSC contractors which first Plan of Development (PoD) has been approved, must offer 10 percent participating interest, on business-to-business basis, to Indonesian firm appointed by BPMIGAS. (bernard)