Govt optimistic new oil, gas contracts signed early next year
Monday, November 26 2012 - 01:39 AM WIB
The government is confident that the closure of the upstream oil and gas regulator BPMIGAS by the Constitution Court and the transfer of the regulator?s role and function to a caretaker unit under the Ministry of Energy and Mineral Resources would not lessen investment appetite in the country?s oil and gas sector.
Director General of Oil and Gas Evita Legowo said that the government is expecting the signing of new oil and gas contracts offered through regular and direct tender mechanisms to be conducted early next year.
?We hope there will be signing of new oil and gas contracts (by early next year),? Evita told Petromindo.com Monday.
The tender for oil and gas blocks for the period of 2012 will be closed on November 27. Director for Oil and Gas Upstream Management at the Directorate General of Oil and Gas, Naryanto Wagiman, said that so far there?s strong interest among investors for the new oil and gas assets being offered by the government.
?The interest is quite strong, but let?s wait until the closing date of November 27,? he said. Of the 16 blocks put on offer, the tender documents for 14 blocks have been subscribed, of which 6 blocks have received interest from more than one investor, and three blocks from more than two investors.
Naryanto dismissed speculation that the dissolution of BPMIGAS would undermine investment in new oil and gas assets.
Editing by Reiner Simanjuntak