Four oil and gas contractors consider to leave Indonesia

Four production sharing contractors of state oil and gas company Pertamina have considered to stop operation in Indonesia in protest of the contents of the oil and gas law which was approved by the House of Representatives (DPRD) on Tuesday, a source told Petromindo.com.

?What they are worried about include its provisions about licensing,? the source told Petromindo on Wednesday. He did not elaborate.

While declining to mention the names of the production sharing contractors, the source said that they included two major players. Of the four, two were already in operation, one would start operation and the other one was still in the exploration phase, the source added.

The new oil and gas law aims to liberalize the country?s oil and gas industry by ending Pertamina?s supervisory roles which it had held for over 30 years.

The law obliges investors to undertake community development work, something which was not provided for under the previous law.

It also obliges investors to supply gas to the domestic market so as to guarantee supplies. (godang)