PetroChina to meet BPHMIGAS over investment plans in downstream oil, gas sector

PetroChina and Indonesia’s Downstream Oil and Gas Authority (BPHMIGAS) will hold talks on Thursday about the former's investment plans in Indonesia’s newly-opened downstream oil and gas sector, BPHMIGAS chairman Tubagus Haryono said Monday.

“PetroChina is serious to hold talks with us,” Tubagus told reporters.

Tubagus said that in a related development Malaysia’s Petronas officials had also met with BPHMIGAS leaders to discuss the possibility of the company to do business in the same sector.

PetroChina and Petronas have upstream oil and gas operations in Indonesia.

The government had decided to allow private investors to do business in the country’s oil and gas downstream sector beginning in 2006, and had anticipated foreign domination due to the huge capital required to enter the sector.

The current oil and gas law, Law No. 22/2001, stripped state oil and gas firm Pertamina’s decades long monopoly over the upstream and downstream oil and gas sectors.

Consequently, the law allows local and foreign private investors to enter the downstream sector that comprises four main areas: processing, transportation, storage and marketing.

Meanwhile, the government expects to complete by the end of this year the drafting of regulations on the downstream oil and gas sector. (godang)