Energy Ministry officials want commissioner position in Pertamina

Ministry of Energy and Mineral Resources officials have kept demanding that they be included in the board of commissioners of state oil and gas firm Pertamina after it has been turned into a limited liability company, a Petromindo.com source said on Wednesday.

The officials? insistence actually does not go in line with the draft government regulation on the new status of Pertamina as it does not clearly mention commissioner position for the ministry, the source said.

?The draft government regulation does not explicitly mention the composition of Pertamina?s board of commissioners, whereas Law No. 8/1971 clearly mentions that the Ministry of Energy and Mineral Resources have a seat at Pertamina?s commissioners board,? said the source who took part in the formulation of the draft regulation.

A team of government officials including those from the Ministry of Energy and Mineral Resources and the State Ministry of State Enterprises are continuing deliberating the draft regulation on Pertamina.

Six government regulations are being formulated to implement existing Oil and Gas Law No. 22/2001, which was put into effect late last year.

The law replaced Law No. 8/1971 under which Pertamina holds a monopoly over the upstream and downstream sectors of the lucrative industry. The new law revokes Pertamina?s monopoly, and stipulates the formation of a special agency which will takeover management of upstream contracts with both foreign and domestic companies within one year.

According to the new law, Pertamina falls under the authority of the State Ministry of State Enterprises. (*)