- In order to improve legal certainty, attract more investments within the upstream oil-and-gas business sector and optimize regional and national roles through the ownership of 10% participating interests in cooperation contracts, the Minister of Energy and Mineral Resources (“Minister”) has issued Decree No. 223.K/MG.01/MEM.M/2022 of 2022 on the Implementation of Provisions for the Offering of 10% Participating Interests in Regionally Owned Enterprises Within Oil-and-Gas Working Areas, which sets out a number of implementing provisions that clarify certain matters that were originally addressed under Regulation of the Minister No. 37 of 2016 and should be used as a reference for units operating within the Ministry of Energy and Mineral Resources, the Special Task Force for Upstream Oil-and-Gas Business Activities, the Aceh Oil-and-Gas Management Agency, regional governments, contractors of cooperation contracts and regionally owned enterprises during the processing of offerings and the evaluation of applications for approvals of 10% participating interests.
- The implementing provisions address the following matters: 1) Definitions of and criteria for regional government companies that may become involved in the offering of 10% participating interests; 2) Additional time for the preparation and appointment of Regionally Owned Enterprises (Badan Usaha Milik Daerah – “BUMD”) during the offering of 10% participating interests that exceed the one-year timeframe; 3) Offering of 10% participating interests in relation to certain fields, which include areas that are located at distances of over 12 nautical miles from shore; 4) Offering of 10% participating interest in relation to cooperation contracts which require said offerings to BUMD but that have not been implemented; 5) Cooperation contracts which do not require the offering of any 10% participating interests; 6) Unfinished processes relating to data access and deadlines for the submission of applications for transfers of 10% participating interests for applications that have not been submitted; and 7) Supervision and control of offerings or the implementation of 10% participating interests.
- This decree has been in force since 7 September 2022.
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