Special team formed to evaluate oil and gas contracts

The energy and mineral resources ministry will form a special team of advisors on the extension of oil and gas production sharing contracts to ensure the process will not cause conflicts, Kontan reported on Sunday.

Energy and Mineral Resources Minister Darwin Zahedy Saleh said in Jakarta last week that the team would be formed because a number of oil and gas fields would expire within the next few years.

?The team?s members will give input to the government in deciding the extension of a contract,? the minister said, adding that members of the team would be chosen from those who have competence in oil and gas business, international agreements and national defense affairs

Director general of oil and gas Evita Legowo said under the existing regualtion, application for contract extension should be submitted to the government 10 years before the expiryt of the contracts.

According to the government regulation No. 35/2004, the application for the contract extension should be submitted the Energy and Mineral Resources Ministry and oil and gas upstream regulator BPMIGAS. The final decision will be made by the ministry upon the recommendation from BPMIGAS. (*)