Revision of GR No 35 to be completed soon
Thursday, February 23 2017 - 08:01 AM WIB
Vice Minister of Energy and Mineral Resources Arcandra Tahar said that revision of Government Regulation (GR) No 35/2004 on upstream oil and gas activities is expected to be completed soon.
?The revision will be completed soon,? he told reporters on Wednesday. Arcandra said that the revision of GR No 35 is expected to help encourage oil and gas exploration activities.
He said that the revised regulation is currently at ?harmonization stage? at the Ministry of Law and Human Rights.
One of the changes in GR No 35 is revision of stipulation on the transfer of equipment from contractors to the government.
Arcandra said that if an upstream project does not meet the commercial feasibility requirement, the imported goods and equipment of the contractors don?t need to be returned to the state, but they must pay the import duty. He said that the transfer process of the equipment takes a rather lengthy period of 2-3 years, and that the equipment transferred are already in damaged condition thus can no longer be utilized.
He said that if the contractors are allowed to retain the equipment, they can use it in other upstream projects.
Editing by Reiner Simanjuntak