House proposes SKK Migas be merged into holding company
Monday, February 13 2017 - 03:50 AM WIB
The House of Representatives Commission VII on energy and mining has proposed for the government to dissolve the upstream oil and gas regulator SKK Migas under a revised draft of new oil and gas law, Kontan reported on Monday.
The paper quoted Commission VII Chairman Gus Irawan Pasaribu as saying that under the newly revised oil and gas law, which is initiated by the House, the SKK Migas will be put under the structure of a planned special holding company for state-controlled oil and gas companies.
He added that the law aims to turn state-owned oil and gas firm PT Pertamina into a national oil company (NOC). He explained that as an NOC, the position of Pertamina will no longer be equal with private oil and gas contractors. ?Currently, it is equal. If Pertamina wants an oil and gas block it must go through tender process. In the future, it will not have to. The point is to strengthen our NOC,? he said.
Meanwhile, Vice Minister of Energy and Mineral Resources Arcandra Tahar was quoted by the paper as saying that discussions over the future fate of SKK Migas are still far from being completed. ?There are lots of options, to be separated or merged,? he said, but did not provide further details. (*)