Riau supports oil law review

The Riau province, which accounts for more than 50 percent of the national oil output of 1.4 million barrels per day, expressed on Wednesday supports for the review of the existing Oil Law No. 8/1971.

The province's governor Saleh Djasit voiced the support during a hearing with the House of Representatives' Commission VIII for mines and energy.

Djasit said the law, which grants state oil and gas company Pertamina with the monopoly rights on the country's oil and gas industry, has proved unable to empower and bring welfare to the people in the oil provinces.

He said the new oil law should contain clauses that give the provincial administration-owned companies similar rights with Pertamina to engage in oil business.

In line with the Autonomy Law No: 22/1999, the new oil law should stipulate that oil and gas contracts should be awarded based on the recommendations from the provincial administrations, Djasit added.

The Ministry of Mines and Energy has drafted an oil and gas bill to replace the law No: 8/1971 and expected to submit to the draft bill to the House in the middle of this month. (*)