JAKARTA (Yosefardi) – Acting minister for energy and mineral resources, Chairul Tanjung, focuses on some issues, including the extension of oil and gas contracts, targeted to finalize before the new president elect Joko “Jokowi” Widodo is sworn in on October 20, 2014.
ESDM ministry will issue new bylaw by late this month which grants the extension of up to 15 years for oil and gas blocks exploration.
The existing bylaw, the government regulation (PP) No.35/2004 only mentions the extension could be proposed 10 years (fastest) and 2 years (latest) before the expired date of contracts.
Some 57 Joint Cooperating Contractors (KKKS) for blocks will be terminated within next 5 years, including Masela block, East Natuna block, mega project the Indonesian Deepwater Development (IDD) such as Mahakam block.