Tender on Makassar oil blocks not regulated by new oil and gas law: Purnomo

The planned auction of nine major oil bocks in the Makassar Strait will not be based on the new oil and gas law which is now being debated by the House of Representatives (DPR), according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

Purnomo said in Jakarta over the weekend that the tender of the nine oil blocks would not be regulated by the new oil and gas law but would be based on existing laws No: 44/60 and No: 8/71.

?Under the laws, the rights to tender the oil and gas are on the government?s hands,? he said, adding that Pertamina, which previously handled the auction of oil and gas concessions, has formally transferred its job to the government.

Iwan Prayitno, the head of the House?s Commission VIII, has earlier asked the government to delay the auction of the nine oil and gas concessions until the new oil and gas law, which would among others, transfers the rights to auction oil and gas concessions from Pertamina to the government, is enforced.

Purnomo said that the auction of the nine oil blocks did not need to wait for the new law because the current laws have already accommodated such a plan.

The minister said that he hoped winners of the tender would be announced later this month.(*)