Mature wells offered to regional governments

The government plans to offer mature oil and gas wells to regional governments-owned enterprises to manage and develop.

Director of upstream business development R. Priyono disclosed in Jakarta last week that the offered wells are located in oil and gas fields already returned by production sharing contractors (PSC) to the government.

?We are studying the rules,? he said, adding there are several options for system of contracts to be proposed to regional government-owned enterprises, including royalty system, production sharing system and cost and fee system .

?Principally, it must benefits the state,? said Priyono.

He said the government is committed to developing regional government-owned enterprises. The government is worried that regional government-owned enterprises would prefer acting as brokers and thus resell the wells to other parties. The government will make a regulation to prevent such things from happening.(godang)