W. Java plans to set up upstream company

The West Java Provincial administration plans to set up an oil and gas upstream company in a bid to obtain greater income from future oil and gas finds, Bisnis Indonesia reported on Tuesday.

The paper quoted West Java Governor Ahmad Heryawan as saying that the administration has just proposed to the provincial legislative council to set up the upstream company to allow the province to manage new oil and gas fields in the province.

He said that by having a provincial-owned company to manage the oil and gas fields, the province would be entitled to royalty and dividend, in addition to the current revenue share.

He added that the province has already been engaged in managing geothermal assets in the province such as the Tampomas and Cilosok projects, and that similar model could be applied in the oil and gas upstream sector. (*)