Oil Companies Ask for One-Stop Integrated Service for Licensing
27 April 2015 08:30 WIB
TEMPO.CO, Jakarta - Indonesian Petroleum Association (IPA) director Marjolijn Wajong said in a press release on Saturday, April 25, 2015 that the government must appoint an institution to simplify licensing procedures related to oil and gas businesses.
According to Marjolijn, complicated licensing procedures would have a negative impact on oil and gas investment in Indonesia. Marjolijn also suggested the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) to help with the licensing procedures related to oil and gas investment.
“Therefore, we can focus on how to increase our productivity instead of dealing with license requirements,” Marjolijn said in a discussion.
Starting from the pre-exploration, investors must apply for 341 licenses at 17 institutions and complete more than 6,000 documents. In theory, it would take eight to ten years to commercialize oil and gas reserves. In practice, however, such commercialization would take 17 years to achieve.
Marjolijn revealed that it would take ten to fifteen years for investors to fully operate in the upstream oil and gas industry.
ANTARA