Govt to auction 10 oil and gas blocks this month
Tuesday, June 1 2004 - 03:31 AM WIB
The government will launch the tender of the country?s 10 oil and gas blocks in the first week of this month despite uncertainties related to the tax policy in the oil and gas exploration activities, a government official said on Monday.
Most of the oil and gas blocks to be auctioned comprised of offshore blocks located in Natuna Sea, Makassar Sea, Arufuru Sea and South Sulawesi Sea.
?Although there is a problem related to tax, the auction will be opened in early June,? Director of Oil and Gas at the Ministry of Energy and Mineral Resources Iin Tachyan said in Jakarta on Monday.
Under the existing regulation, investors have to pay import tax for all the equipment needed for their activities. The investors, however, reject the tax policy saying that it would cause double taxation. According to the investors, the production sharing contract signed with the government has already included tax payment.
The Ministry of Energy and Mineral Resources has asked the Ministry of Finance to revise the tax but the latter refused the request. (godang)