Pertamina returns geothermal functions to government

State oil and gas firm Pertamina on Monday handed over to the Directorate General of Geology and Mineral Resources its functions of issuing licenses to geothermal power producers and supervising them.

Pertamina president director Baihaki Hakim handed over to Geology and Mineral Resources Director General Wimpy S. Tjetjep 18 geothermal working areas in a ceremony on Monday. They are part of the 33 working areas placed under the company?s supervision.

Also on the same occasion, the Director General of Oil and Gas Rachmat Sudibyo relinquished to Wimpy his office?s authority of supervising the country?s geothermal energy sector.

Minister of Energy and Mineral Resources, Purnomo Yusgiantoro said in Monday?s handing over ceremony the Geology and Mineral Resources Directorate General would carry out the government?s function of ?licensing, supervising and developing? projects of using geothermal energy to produce electricity.

Pertamina, under Oil and Gas Law which took effect late last year, is making preparations to fully operate as a limited liability company in late 2003. The law outlines that Pertamina will have to end within two years its decades long monopoly over upstream and downstream businesses in the country?s oil and gas and geothermal sectors.

Under the new law, the government will form an executing body and an implementing body to take over Pertamina?s monopolistic tasks. (godang)