Finished Contract, Tuban Block Manager Waits for Draft of Oil and Gas Law

INDUSTRY.co.id - Bojonegoro - The termination of the Tuban Block operator's contract period in February 2018 is expected to use the new law as a replacement operator. Currently, Commission VII of the House of Representatives (DPR) is discussing the revision of Law No. 22/2001 on Oil and Gas (Oil and Gas).

"Currently, Commission VII of the House of Representatives (DPR) is currently reviewing the revision of the Oil and Gas Law to prevent the oil and gas block that has been extended twice is not immediately given to PT Pertamina," said Vice Chairman of Commission VII DPR RI, Satya Widya Yudha when in Bojonegoro, this week.

The revision of the new Oil and Gas Law is expected to facilitate the work of PT Pertamina. The reason is that in the old regulation, in accordance with the Minister of Energy and Mineral Resources, if the oil and gas block management contract has been extended for two times then the managed oil and gas blocks are returned to the government, in this case PT Pertamina.

"It is only now whether Pertamina wants to manage it or not, it is in accordance with the rules of the Candidate whose legal force is under the law," he explained.

Included in the new contract in Tuban Block which is currently managed by Joint Operating Body of Pertamina Petrochina East Java (JOB PPEJ). In the revision of the new Oil and Gas Law regulates that if Pertamina is unable to manage the block that has been exhausted its contract can be done with a tender system or auction.

"Consideration, if in the management of the block itself Pertamina not able to manage the block will be mubadzir," he explained.

Thus, continued Satya Yudha, in the new law, the Commission VII of the House of Representatives wants to have a new mechanism that the block is tendered but the first ride remains on Pertamina. "The advantage of this block will be managed by operators or companies that really want to manage," he concluded. (bj)