EXCLUSIVE - Ministry takes over contract negotiations from Pertamina
Monday, October 23 2000 - 12:00 AM WIB
The ministry of energy and mineral resources had decided to take over contract negotiations with oil and gas investors from state oil and gas company Pertamina, a senior official at the ministry said Saturday.
Director of exploration Kardaya told Petromindo.Com starting January 1, 2001, negotiations with oil and gas investors on contracts for the development of the country's oil and gas resources would be handled by a team led by the director general of oil and gas.
The team's members include officials of the directorate general and Pertamina's exploration and production directorate, Kardaya said.
Until the new policy was introduced, the contract negotiation was handled by Pertamina's negotiating team lead by the company's exploration and production director
Kardaya said the new policy was based on an old regulation, which gave the directorate general of oil and gas the right to handle the contract negotiation.
The regulation had not yet been revoked and thus remained effective despite the fact that Pertamina had handled the contract negotiations for decades in violation of the old regulation, Kardaya said, without specifying the regulation.
He said when the regulation was issued several decades ago, Ibnu Sutowo served as the president of Pertamina as well as the director general of oil and gas. During the period, contract negotiations were handled by his subordinate named Trisulo, who served both as Pertamina's exploration and production director and head of the oil office at the directorate general of oil and gas.
The contract negotiation was since handled by Pertamina's director of exploration and production, Kardaya said.
He said the ministry realized the existence of the regulation after being recently notified by Pertamina.
"The ministry considers the regulation still effective and has decided to take over the contract negotiation from Pertamina," Kardaya said.
Kardaya said the directorate general would start its negotiating job with negotiations on ten production-sharing contracts (PSC) for the development of oil and gas resources in Makassar Straits and Maluku. (Lia KS)