Minister?s decree on contract extension being finalized

Energy and Mineral Resources Minister?s decree on extension of contracts in oil and gas exploration and production is being finalized by the ministry?s Directorate General of Oil and Gas, Republika reported Monday.

Director General of Oil and Gas Evita H. Legowo said in Jakarta on Sunday that the decree which would regulate the general procedures and the conditions for contract extension would provide a legal certainty to oil and gas investors.

?The ministerial decree will focus on requirements that investors have to fullfill to have their contracts extended. The drafting of the decree is now in the final phase," she said.

"A 30 year contract is certainly not beneficial for big companies that want to develop (their fields) longer. If the Agrarian Law allows, an oil and gas contract can last up to 80 years," she added. (*)