IPA supports good corporate governance in oil & gas industry

The IPA and its members strongly support Good Corporate Governance in the oil and gas industry.

?Good governance is an important issue for oil and gas investors all over the world, including Indonesia, as it would create a good environment that is important to attract and to sustain investment in all business sectors.? said Lukman Mahfoedz, the President of IPA, in a statement.

Members of the IPA are committed to continue operating to the highest ethics and integrity standards and in full compliance with the Production Sharing Contracts and the applicable laws and regulations of Indonesia .

In regards to the recent bribery allegation case involving an oil trading company, the IPA regrets that it has created negative sentiment towards the upstream oil & gas industry. ?Oil trading is not an upstream business and therefore is not related to the Production Sharing Contract system and Cost Recovery,? says Lukman.

The IPA expects that government will ensure that upstream business process will work and function without disturbance. ?The oil and gas producers still require all necessary and timely approvals in accordance with regulations for oil and gas liftings, to ensure no interruption happens in production,? says Lukman.

IPA trusts that the case will not cause a slowdown in the approval process within SKK Migas and that governance and transparency of the management of the oil and gas industry will be improved.

?We hope that the case will not impact negatively the investment climate in Indonesia at a time when the country needs to grow investments to sustain oil and gas production? concluded Lukman.

Editing by Johannes Simbolon