Ministry to closely scrutinize POD of new oil, gas projects

Recently-appointed Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that the ministry will closely scrutinize plan of development (POD) of new oil and gas development projects submitted by contractors in a bid to reduce expenses reimbursed by the government through the cost recovery mechanism.

Kontan quoted Arcandara as saying Thursday that the ministry is determined to achieve efficient cost recovery.

?Upcoming new PODs for examples are for Chevron?s IDD, Masela Block, and East Natuna Block. We?ll look into the (investment) size of the new (PODs), and we?ll reduce the cost,? he said.

He, however, quickly added that the ministry will not recalculate the expenses set in approved PODs for ongoing projects. He stressed the government will honor existing contracts to help maintain investor?s confidence. (*)