Regulation on contract extension to be finished in late September

By Febry Silaban

The government is targeting to finish the formulation of the ministerial regulation on oil and gas contract extension in late September, according to an official of the Ministry of Energy and Mineral Resources (MEMR).

"Currently the ministerial regulation on the guideline for contract extension will be completed later this month. We shall thus a guideline on how to handle the requestts for contract extension of PSCs such as the Mahakam block, Exxon?s block and others," said Vice Minister of Energy and Mineral Resources Susilo Siswoutomo in Jakarta.

Susilo added that in addition to the regulation on oil and gas contract extension, the government will take measures to solve the problems that have been hampering oil and gas projects such as Tangguh Train III, East Natuna and IDD projects so that the development of the projects can be accelerated.

Meanwhile, Acting Minister of Energy and Mineral Resources Chairul Tanjung said he has held a meeting with the MEMR officials regarding the Mahakam block.

"We have commissioned the director general of oil and gas and the acting chairman of SKK Migas to discuss and take steps to settle issues related not only to the Mahakam block, but also IDD, East Natuna, Tangguh Train 3 projects, including the regulation on contract extension," he said.

Chairul noted however that he did not instruct the MEMR and SKK Migas to solve the problems faced by the projects within a short period

"I do not want to get involved in details. My instruction to the director general of oil and the acting chairman of SKK Migas is they should take actions to solve the problems. If they are able to do so (before the end of the current administration), that will be good. If the are not able to do so, at least they have to be set up a good basis for the next government to solve the problems,? he said.

Editing by Johannes Simbolon