Pertamina can operate non conventional oil, gas fields without tender

According to the new Mineral, Energy and Natural Resources (ESDM) Ministerial Regulation No. 5/2012, the state oil and gas company PT. Pertamina is allowed to develop any of the non-conventional oil and gas working areas in the country without going through a tender process, a senior Energy and Mineral Resouces Ministry official said.

Director of Oil and Gas, Evita Legowo, said in Jakarta last week that Pertamina was allowed to apply for the rights to operate non-conventional oil and gas working areas as long as the request was made by its 100 percet owned subsdiary.

She said that a special team from the ministry will assess Pertamina?s request and may approve or reject it depending on the ability of Pertamina to fulfill the procedure and requirements including technical and financial capacity in developing the oil gas fields.

Based on the team?s evaluation, the oil and gas directorate general will recommend the Energy and Mineral Resouces Minister to name Pertamina as the operator of non-conventional gas and oil consession areas, Evita said.

However, Pertamina is not allowed to transfer or sell its rights in developing the non-coventional gas and oil fields to other companies, she added.

Non-conventional gas and oil working areas refers to production of oil and gas reserves with low permeability such as shale oil, shale gas, tight sand gas, coal bed gas methane, methane-hydrate using facturing energy.

Editing by Roffie Kurniawan