Govt regulation on Implementing Body to be issued in November

Government will issue in November a regulation on the formation of the so-called Implementing Body, which will become the country?s highest oil and gas authority under existing oil and gas law, according to oil and gas director general Rachmat Sudibyo.

?I can ascertain that the regulation will be issued in November,? Rachmat told Petromindo.com.

The oil and gas law, which was ratified late last year, stipulates that the Implementing Body must be established by November 2002.

Rachmat said the government had planned to staff the Implementing Body with workers from state oil and gas company Pertamina.

Under the oil and gas law, the Implementing Body will take over the decades-long rights held by Pertamina to regulate and manage the country?s oil and gas industry.

It has authority to sign oil and gas contracts, supervise and regulate the operation of oil and gas contractors.

The body answers directly to the President, who will decide the personnel of its executive board with approval from the House of Representatives (DPR).

Meanwhile, the government is also continuing to prepare other five regulations to implement the oil and gas law. They are to deal with non-oil tax in oil and gas sectors; the transfer of Pertamina?s operation; the regulatory body; upstream operation; and downstream operation. (Godang)