Draft on the change in oil and gas law submitted to President

Ministry of Energy and Mineral Resources has formally submitted the draft on the amendment of Law No.22/2001 on oil and gas to President Susilo Bambang Yudhoyono for final assessment.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Monday the draft would be then submitted to House of Representatives for approval.

The amendment of the oil and gas law was made following the revocation of the articles 12, 22 and 28 of the law by the Constitution Court in late 2004. According to the court, the wording and content of the articles could lessen the role of the government in the country?s oil and gas exploration and production.

The court, for example, revoked the article 28 of the oil and gas law which says that the prices of oil and gas should be determined by market mechanism through a fair competition. According to the court, the prices of oil and gas should be determined by the government without ignoring the market mechanism so that the unfortunate groups in the society could be protected.(godang)