Ministry drafts regulation on ASR funds

By Febry Silaban

The Ministry of Energy and Mineral Resources is drafting a new ministerial regulation on so-called abandonment and site restoration (ASR) funds that would require contractors taking over oil and gas blocks from existing contractors to be responsible in providing the funds.

Secretary of the Directorate General of Oil and Gas at the ministry, Susyanto said on Monday that the new regulation is currently being drafted and would be discussed with the upstream oil and gas authority SKK Migas.

He said that with the upcoming new ASR requirement, contractors seeking to takeover oil and blocks from existing contractors, they must include the ASR funding obligation in their acquisition plans.

Susyanto said that old oil and gas production sharing contracts issued in 1996 do not require contractors to provide the ASR funds.

Editing by Reiner Simanjuntak