Gov?t to retain Pertamina?s upstream privilege

Government will still give state oil and gas firm Pertamina certain privilege in oil and gas upstream business despite the implementation of the new oil and gas law which would dismantle Pertamina?s monopoly and regulatory power, according to a mines an energy and mineral resources ministry senior official.

Director general of oil and gas Rachmat Soedibjo told reporters on a gathering Wednesday that Pertamina would still be given first right of refusal each time an exploration block is offered.

?However, the privilege would not last forever, one day Pertamina will be treated just like any other company,? Rachmat said.

However, Rachmat said Pertamina would not be given automatic right to take over oil and gas blocks whose contracts have expired.

Earlier, Pertamina?s president Baihaki Hakim ask the government that Pertamina should be given at least the exclusive rights to take over the operation of oil and gas fields whose contracts have expired. (alex/godang)