Draft regulation on upstream oil and gas sector ready this week: Official

The draft government regulation on upstream oil and gas sector will be ready this week and will soon be submitted to President Megawati Sukarnoputri for approval, director genereal of oil and gas at the Ministry of Energy and Mineral Resources Iin Arifin Takhyan told Petromindo.com Wednesday.

“The team preparing the draft regulation will complete its task within three days,” Iin said.

Iin hoped the regulation would be issued by end-2003.

The government regulation will govern aspects including oil and gas contract extension, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said earlier. Accordingly, any decision regarding oil and gas contract extension will have to wait for the regulation, he said.

The regulation is meant to provide guidelines for the implementation of the current oil and gas law, which became effective in 2001.

So far, the absence of rules regarding oil and gas contract extension in accordance with the new law has created confusion among investors and caused delay in investments.

Several investors like BP Plc and Total E&P Indonesie have asked for early contract extension for their gas blocks in East Java and East Kalimantan, respectively.

The government is also drafting a government regulation on downstream oil and gas sector. (Godang)