Govt prepares five decrees on oil and gas

The government is preparing five decrees for implementing the oil and gas law which was approved by the House of Representatives (DPR) on Tuesday, according to oil and gas director general Rachmat Sudibyo.

The decrees deal with the upstream businesses of the oil and gas industry; the transition of Pertamina into a limited liability company; the executive body which will take over from Pertamina as supervisor of the country?s oil and gas industry; and the oil and gas industry regulatory body, Sudibyo told Petromindo.com on Wednesday.

The long-awaited law stipulates that the two bodies must be established within one year after the enactment of the law, while Pertamina must become a limited liability company within two years.

The executive body is to deal with foreign oil and gas contrctors, while the regulatory agency will manage domestic fuel supplies and distribution.

Pertamina wil continue to be obliged to disribute fuel at home for four years after the enactment of the law. (godang)