Upstream Oil, Gas Asset Management Needed to Maintain Efficiency
14 October 2017 13:14 WIB
TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry stated that management and structuring upstream oil and gas assets are needed to maintain efficiency in cost and bureaucracy.
Energy Ministry Spokesman Dadan Kusdiana said Friday, Oct. 13, that the ministry has been given the authority to structure and manage all state-owned assets or properties (BMN) that are utilized in energy and mineral resources sector as regulated in the Law No. 1/2004 on state treasury and Government Regulation (PP) No. 35/2004 on oil and gas upstream business.
"Energy Ministerial Decree (Permen) No. 51/2017 on BMN development and management on upstream oil and gas business has also been issued to follow up the two previous regulations," Dadan added.
The Energy Ministerial Decree (Permen) No. 51/2017, he explained, was issued to simplify and to boost the efficiency of bureaucracy and rent cost of goods storage, considering that what is currently happening is that Cooperation Contract Contractors (KKKS) have carried out BMN storage renting practices spread in several areas with no control from the government.
This, he continued, results in high operating costs due to rent costs and goods transport.
ANTARA
