| Contractors required to prioritize Gas Production Sharing Contracts for Domestic |
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| Wednesday, 03 February 2010 09:28 | |||
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Jakarta, - The Government requires that contractors contracts or KKS to go meet the needs of the domestic natural gas.
This is done by submitting 25 percent of the crops produced the contractor. Domestic needs was noted availability of infrastructure, technical operations, and economics field. If the domestic gas demand can not be fulfilled, the government could determine the allocation and utilization of natural gas reserves from the field to production of gas at a working area. This policy is stipulated in the Regulation of the Minister of Energy and Mineral Resources No. 3 / 2010 on Natural Gas Utilization Allocation for Domestic Needs Fulfillment, a newly published. According to the Minister of Energy and Mineral Resources of Darwin Saleh, allocation and utilization policies gas is set so that domestic demand can be met optimally. Utilization of natural gas will be prioritized to increase oil and gas production, fertilizer industry, the supply of electricity, and other industries. In a ministerial regulation, the government also opened the tap natural gas imports if domestic supply is insufficient. In response, oil observer Kurtubi in Jakarta, Tuesday (2 / 2), assess, that policy is not appropriate. The reason, setting the percentage amount of gas that must be sold in the country from each contractor should KKS in the law. "If the only rule ministers, was very weak from a legal standpoint," he said. In fact, in Law Number 22 Year 2001 on Oil and Gas, this percentage provision already exists. However, the provision of gas supply obligations to the domestic needs of the Constitutional Court revoked. The obligation to supply domestic gas to see the location of the gas field. If close to the consumer, can be 100 percent for the country, such as gas in the Cepu Block. "The problem for domestic gas should be solved by state-owned business with foreign oil contractor to be flexible. If for export, should be a good price, "said Kurtubi. Executive Director of Research Institute of Mining and Energy Reform Pri Agung Rakhmanto added, article about the obligation to meet domestic demand while watching the availability of infrastructure is a rubber articles. For, if the infrastructure and economics do not meet, the fulfillment of domestic demand becomes mandatory.
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Legitimacy & Law
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