Delay in oil and gas regulation confuses investors

Protracted delay in the issuance of government regulations on oil and gas exploration, production and processing activities have confused investors engaged both in the upstream and downstream oil and gas sectors, Kompas daily reported on Thursday.

The deputy chairman of the Commission VIII of the House of Representatives, Agusman Effendi, said in Jakarta on Wednesday that the delay did not only affect new exploration activities but also the investment in the oil processing.

The government is currently preparing the issuance of new regulations on oil and gas upstream and downstream operations as the follow-up of the new oil and gas law issued in 2001.

The regulation on downstream operation has been completed but the government has not yet issued the decree waiting for the revision of the draft on the regulation of the upstream oil and gas activities.

He said that as many as 16 companies which have received licenses to operate in oil processing and retail had to delay their investment due to the delay in the regulation which will among others provides guidelines in doing business in the country’s oil and gas downstream activities. (*)