New Provisions on Management of Oil and Gas Working Areas

The Minister of Energy and Mineral Resources (“Minister”) has issued Regulation No. 15 of 2015 on the Management of Oil and Gas Working Areas during Final Cooperation Contract Periods (“2015 Regulation”).The stated aim of the 2015 Regulation is to maintain and boost oil and gas lifting, including investment in the oil and gas sector.

In essence, the 2015 Regulation sets out provisions on the oil and gas working areas (“Working Area”) management scheme that is available on the cessation of a cooperation working contract (“Cooperation Contract”) between the government (via SKK Migas) and oil and gas companies. The 2015 Regulation provides for three Working Area management scheme options, namely:[1]