Govt to limit contract extension for non-conventional oil, gas areas
Thursday, October 22 2015 - 02:18 AM WIB
The paper quoted Director for Upstream Oil and Gas Development at the Ministry of Energy and Mineral Resources, Djoko Siswanto as saying that the plan is part of a new ministerial regulation on non-conventional working areas currently being drafted.
He told the paper that limiting the contract extension to one time would allow national companies to take over the non-conventional oil and gas working areas once the contract has expired.
Djoko said that because the policy to limit the frequency of the contract extension contradicts with existing Government Regulation No 35/2004, which does not acknowledge such limitation, the issuance of the new ministerial regulation has been delayed. It was supposed to be issued in September.
He added that as result, planned tender of non-conventional working areas including Blora Deep in Central Java, Batu Ampar in East Kalimantan, and Sentral Bangkanai in Central Kalimantan have also been delayed. (*)