Local Governments Get 10% PI in Oil Management
26 March 2015 12:36 WIB
TEMPO.CO, Jakarta - The government will soon issue a Minister of Energy and Mineral Resources Regulation which ensures that local governments will get a participating interest (PI) in the management of oil and gas blocks in their areas.
Energy Minister Sudirman Said said the regulation will govern he allocation of participatory shares for local governments in managing new or out-of-contract oil and gas fields, Bisnis Indonesia reported.
Local governments will get a 10% share for onshore concessions, while the participating interest for offshore concessions will be decided by the central government.
"We will provide an opportunity for the regional governments to become owners, especially in blocks with expired contracts," Said spoke at a press conference at the Ministry of Energy and Mineral Resources building on Wednesday, March 26.
The regulation will also mandate local governments to seek approval from the Energy Minister first before selling their ownership in oil and gas blocks.
Sudirman is targeting for the regulation to be issued next week.
BISNIS INDONESIA | RR
