The Latest Oil and Gas Draft Bill

Overview

Long before the Constitutional Court dissolved BP Migas[1] - through their decision on 13 November 2012 (See ILD No. 282) - Commission VII[2] of the House of Representatives and the Government have been in the process of revising Law No. 22 of 2001 on Oil and Gas (“2001 Law”).[3]

The debate on what should be included in the Oil and Gas Draft Bill (“Draft Bill”) is colored with views of two opposing circles: the oil and gas industry and the nationalist circle. For instance, regarding the cost recovery issue, the oil and gas industry is of view that it is an investment that should be calculated into the production cost. They also consider the practice to be reasonable due to the inherent risk that must be fully borne by oil and gas operators.