Tender Procurements and Contract Opportunities Indonesia

Pertamina ready to acquire oil and gas blocks

JAKARTA: A discussion about the Regulation of Minister of Energy and Mineral Resources of the contract extension is still running a lot because of the difficulty of synchronization between the right to extend the old contractor and the right PT Pertamina to get in to take over the block.
On the other hand, the government still seeking discussions Candy Energy and Mineral Resources (ESDM) that can complete immediately in accordance with its 100-day program is a powerful ministry of oil and gas mining this earth.

Business sources in the government who are involved in the preparation of energy and mineral resources mentioned Candies discussion is still running slow because they have to bring together two currents of a single policy but a different source of direction.

On the one hand, he said, based on Law No.22/2001 on Oil and Gas contractor cooperation contract (KKKS) has the right to a contract extension before his contract expired.

On the other hand, he said, according to Government Regulation Pertamina eligible for the first bidding for control blocks will run out of his contract.

"At this point the most fundamental debate. Gebuk-gebukannya ya there, so the discussion is not exhaustive visit," he said yesterday.

As we know, there are six KKKS the proposed contract extension. Of the six new KKKS Medco is a priority to get an extension on Block A and SSE, which will end in 2011.

On the other hand, Pertamina has applied to acquire three blocks that will be extended. All three include a minimum of 60% participation rights in the West Madura, 25% in the Mahakam, and a block of Madura Block allegedly had commercial status.

Director General of Oil and Gas Ministry of Energy and Mineral Resources Evita Herawati Legowo, said the discussion was that ESDM Candies has been almost completed and expected to be ratified no more than 100 days of the new government. When asked whether the lump is about the transfer of control over an extended working area to Pertamina, Evita refused to give an explanation.

"Patience ... if that's all [the transfer of control] was, it is finished. This is not the bottle neck, some already completed, but it's not all. We lived finishing. Anyway, we finished the target for 100-day program," he said.

Previously, Chief Executive Agency Upstream Oil and Gas R. Priyono said that based on Oil and Gas Law is a national company that has the right to enter into the block that will be extended not to Pertamina. Enterprises outside the state, he said, are also entitled to obtain the participation of Indonesia.

"Under the law allows [the national companies outside the state] to be involved," he said. (Kompas.com)