Kartini L. Makmur, Andin Aditya Rahman
As of November 2012 the Constitutional Court has revoked a total of seventeen articles of Law No. 22 of 2001 on Oil and Gas. Currently, the revision of the Oil and Gas Law still remains unfinished and sits with the House of Representatives.
Milton Pakpahan, member of Commission VII of the House of Representatives, has said, however, that the revision of the Oil and Gas Law is now in its final stages and all that remains are technical matters.
“The revision of the Oil and Gas Law is almost final. An inventory checklist on the issues is already made, so we will immediately call the Government,” stated Milton in Jakarta on Tuesday.
Milton confirmed that the revision incorporates the aspirations and input of regional governments, investors and academics. Therefore, the revisions include provisions on certain matters not previously regulated under the current Oil and Gas Law.
One such inclusion is provisions on bioremediation, primarily motivated by the recent PT. Chevron Indonesia case. These provisions aim to provide legal certainty for similar cases in the future. “We will discuss the big picture. Later on details will be covered in a Government Regulation,” Milton added.
In addition, the revisions will also grant greater authority to The Special Work Unit for Upstream Oil and Gas Activities, commonly referred to as SKK Migas. Within the House, there are ideas to transform SKK Migas into a business entity. This would enable SKK MIgas to interact and enter into contracts with private partners. The type of business entity it would be remains undecided.
“It will not be a limited liability company, because that would put it under the Limited Liability Company Law, the entity must also be able to secure data preparation, surveys, and conduct operations. So it will not only be involved in management but it will also take part in production,” Milton explained.
The revision will also incorporate provisions on oil funds, which will be described in detail in the new law. Current discussion is centered on the form and technical percentages for the oil fund. In regard to the oil fund, Maryati Abdullah, the National Coordinator of Publish What You Pay (PWYP), hopes that the revision of the Oil and Gas Law will provide legal certainty for the oil fund, which includes: “fund sources, deposits, and withdrawals, as well as other aspects including management and transpiration mechanisms.”
(hot/kc)
Kartini L. Makmur, Andin Aditya Rahman
As of November 2012 the Constitutional Court has revoked a total of seventeen articles of Law No. 22 of 2001 on Oil and Gas. Currently, the revision of the Oil and Gas Law still remains unfinished and sits with the House of Representatives.
Milton Pakpahan, member of Commission VII of the House of Representatives, has said, however, that the revision of the Oil and Gas Law is now in its final stages and all that remains are technical matters.
“The revision of the Oil and Gas Law is almost final. An inventory checklist on the issues is already made, so we will immediately call the Government,” stated Milton in Jakarta on Tuesday.
Milton confirmed that the revision incorporates the aspirations and input of regional governments, investors and academics. Therefore, the revisions include provisions on certain matters not previously regulated under the current Oil and Gas Law.
One such inclusion is provisions on bioremediation, primarily motivated by the recent PT. Chevron Indonesia case. These provisions aim to provide legal certainty for similar cases in the future. “We will discuss the big picture. Later on details will be covered in a Government Regulation,” Milton added.
In addition, the revisions will also grant greater authority to The Special Work Unit for Upstream Oil and Gas Activities, commonly referred to as SKK Migas. Within the House, there are ideas to transform SKK Migas into a business entity. This would enable SKK MIgas to interact and enter into contracts with private partners. The type of business entity it would be remains undecided.
“It will not be a limited liability company, because that would put it under the Limited Liability Company Law, the entity must also be able to secure data preparation, surveys, and conduct operations. So it will not only be involved in management but it will also take part in production,” Milton explained.
The revision will also incorporate provisions on oil funds, which will be described in detail in the new law. Current discussion is centered on the form and technical percentages for the oil fund. In regard to the oil fund, Maryati Abdullah, the National Coordinator of Publish What You Pay (PWYP), hopes that the revision of the Oil and Gas Law will provide legal certainty for the oil fund, which includes: “fund sources, deposits, and withdrawals, as well as other aspects including management and transpiration mechanisms.”
(hot/kc)