New Guidelines on the Issuance of Oil and Gas Registration Statement Letters

Director General of Oil and Gas Decision No. 15784.K/10/DJM.S/2010 on Guidelines for the Issuance of Registration Statement Letters (Surat Keterangan Terdaftar or ‘SKT’) (‘Decision’) has been released to ensure that the proper issuance process is followed. The Decision provides further details of SKT and its administrative submission procedures, which are only briefly mentioned in Minister of Energy and Mineral Resources Regulation No. 27 of 2008 on Oil and Gas Supporting Business Activities.

Except for certain businesses in the oil and gas sector, all support service providers (both individuals and companies) must obtain a SKT to be able to engage in the support service businesses serving the oil and gas sector. An SKT will be issued by the Director General of Oil and Gas through the Oil and Gas Technical and Environment Director. An SKT must contain, at least, the issuance date, name and address of the company/individual, classification of business activities and an expiry date of the SKT.

Points 4 and 5 of the Decision set out the process for the application for and the issuance of an SKT, as well as the process to add further business activities. In summary, to obtain a SKT, a company/individual must submit an application along with the supporting documents to the Oil and Gas Technical and Environment Director, who will then conduct an examination and an evaluation, including the verification of the completeness and validity of the documents and the classification of the business activities. An SKT will then be issued within 5 working days following the completion of the examination and evaluation process. However, if any discrepancies are found during the examination and evaluation process, the application will be subject to rejection. The addition of further business activities can only be made during the first 3 months after the issuance of the SKT.

The classification of supporting oil and gas business activities will be separately stipulated by the Oil and Gas Technical and Environment Director.

The Decision repeals its predecessor, Director General of Oil and Gas Decision No. 8298.K/10/DJM.T/2009 on Guideline for the Issuance of SKT.

For a brief overview of Minister of Energy and Mineral Resources Regulation No. 27 of 2008 dealing with oil and gas supporting business activities see ILB Number 920 10 September 2008. 

The Decision has been in force since 25 June 2010.