Government plans new regulation to maintain investment in oil, gas blocks
Tuesday, February 28 2017 - 03:07 AM WIB
The government is planning a new regulation to help encourage oil and gas contractors maintain investment and production in oil and gas blocks whose contracts are set to expire, Bisnis Indonesia reported on Tuesday.
The paper quoted Secretary General of Oil and Gas at the Ministry of Energy and Mineral Resources, Susyanto as saying that the planned new regulation comes amid tendency among oil and gas contractors to cut down investment in oil and gas blocks whose contracts are set expire, thus reducing production and undermining the country?s oil and gas output target.
He said that the government is determined that oil and gas production in oil and gas blocks must not be affected although the contractor?s contracts are set to expire.
He said that under the planned new regulation, contractors that would take over the upstream assets would be required to replace the investment made by the previous contractors. ?The investment will later be replaced by the new contractors. This issue is still being reviewed,? he said.
The paper said that 30 oil and gas production sharing contracts are set to expire through to 2025. (*)