New regulations open greater opportunity for investors in RI oil, gas sectors

With the issuance of much awaited two government regulations regarding oil and gas sector, the doors are widely opened for private investors to enter the upstream and downstream businesses of the sector, the Bisnis Indnesia newspaper reported in its Tuesday edition.

After a long wait, the government issued two regulations, PP 35/2004 for upstream activities and PP 36/2004 for downstream activities of the oil and gas sector, on Thursday.

"The regulations on the oil and gas upstream and downstream industries has been issued," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Sunday.

Meanwhile, Ministry of Energy and Mineral Resources? secretary-general Luluk Sumiarso said the government didn?t change the substance of the draft regulations.

The only change that was made in the regulations was that the explanation to each statement in the regulations.

The downstream regulating authority of oil and gas sector BPH Migas Tubagus Haryono said the issuance of the government regulations was step to boost the agency?s performance.

?With the issuance of government?s regulation (PP36/2004), BPH Migas will apply certain conditions within few days for the distribution of gas, especially through the pipeline,? Tubagus told the Bisnis Indonesia newspaper on Monday in Jakarta. (*)