DPR The Value Is Wrong With The Mechanism Of Assigning Pertamina As Termination Block Operator

INDUSTRY.co.id - Jakarta - The government decides to divest the management portion of the 8 termination blocks that end this year. The plan, the block submitted to PT Pertamina (Persero) and selected partners.
In response to this, House Commission VII Member, Kardaya Warnika said there is something wrong with Pertamina's assignment mechanism as termination block operator. This, according to him will disrupt the investment climate in the upstream sector of oil and gas.
Moreover Directorate General of Oil and Gas Ministry of Energy and Mineral Resources launch 26 blocks of oil and gas that will expire contract from 2018 until 2026. "There are two other causes such as the depleted oil capacity and the unattractive investment climate," Kardaya said in Jakarta on Saturday (7/4/2018).
He considered that the oil and gas investment climate in Indonesia is increasingly not conducive to Pertamina's establishment automatically as the terminating oil and gas block operator.
The reason, KKKS require legal certainty before deciding to invest a large amount of new investment will return in the long term. "This is still a problem plus the revision of the Oil and Gas Law (UU) is still unclear, consequently investors are waiting and can switch elsewhere," he said.
Kardaya added, the appointment of Pertamina as termination block operator also has the potential to harm the SOEs. "If it fails to manage the block, it will certainly disrupt the performance of the company, they should be able to reject and conduct the study first if it is offered as an operator, but as a state-owned company, Pertamina will inevitably have to accept orders from the government." (in / ipe)