Government to take over BPH Migas' tender right

The Ministry of Energy and Mineral Resources' Directorate General of Oil and Gas would take over the authority of oil and gas downstream regulator BPH Migas to hold tender for gas distribution and transmission pipelines.

 

Director General of Oil and Gas Luluk Sumiarso said in Palembang on Wednesday that a governmental regulation on downstream business was being drafted to allow his office to take over the right to hold tender for the gas pipeline business.  

 

“Under the new government regulation, the authority (to tender gas pipeline projects) would be transferred to the government,” he was quoted by Detik.Com as saying.

 

Luluk said that after the issuance of the government regulation, BPH Migas would act as a "referee" in downstream business. It Therefore, it should not play a role in auctioning gas transmission and distribution business.

 

However, he said that the tender decisions that have been made by the agency were still valid because the existing government regulation authorizes BPH to organize the tender.

 

He said the draft government regulation was being deliberated at the State Secretary and the deliberation process was expected to be completed soon. (*)