Kurtubi: Redesign the form of Oil and Gas Industry

Selasa, 04 Desember 2012 | 09:33

The Director of the Center for Petroleum and Energy Economics Studies (CPEES) Kurtubi said that to date is the right time for Oil and Gas Law no. 22/2001 and Law of Mineral and Coal Law No. 4/2009 to be repealed or replaced. The Governments needs to redesign or architecturally reform the national oil and gas as well as mining industries in line with the Article 33 of Constitution."Through the corridor of revised Mining and Oil and Gas Law, the wealth of minerals, coal, oil and gas should be explicitly stated as the resources belong to the nation whose ownership should be recorded and managed by a special state-run operator which is established by either Act, by amendment or refinement sentence in paragraph 3 of article 33 of Law 1945 needs to be supplemented with the word "owned" the State, in order to avoid multiple interpretations no longer happen again, "said Kurtubi, at a national seminar entitled" The Future of Management Mahakam block "at Hotel Bumi Senyiur Samarinda, last week.

According to Kurtubi, the current meaning of the word "controlled state in paragraph 3 of Article 33 of the 1945 Constitution has been dwarfed by simply interpreted as" country set ". Countries now do not need to pick the assets or reserves of natural resources (NR) oil and gas and mining in the bowels of the earth. Whereas in the development of energy economics, proven reserves of oil and gas, mineral and coal in the bowels of the earth must be an owner, because it is tradeable and bankable.

"The question remains even though physically oil still in the ground, however, the owner can sell through futures trading mechanism. Such oil trading practices has been developed particularly after oil commodity is traded in New York Stock Exchange (NYMEX) in the 1980s. While the understanding of bankable is that, certified proven reserves that can be used as collateral in banks to obtain loans in the bank, "said Kurtubi.

Kurtubi is of the opinion, due to the unclear status of ownership of oil and gas, mineral and coal in Indonesia, and then the other party (the contractors) uses it as if those fields were their property and assets which are included in the financial statement or balance sheet. According to Kurtubi, some others even use them as a "collateral" to borrow money in the bank.

He stressed, although Pertamina has asked the Government and the now-disbanded Upstream Oil and gas Supervisory Agency (BP Migas) to manage the nearly-expired West Madura offshore block, however, those they insisted to renew the contract or to divert it to a new, unclear contractor.

"The contract of the largest Indonesia gas block Mahakam Block will be completed by 2017, is likely to be extended just because the contractor promised to invest US$ 5 billion while the Government values that Pertamina is in incapable in handling the Block. As of 2021, around 12 production blocks to be completed including large blocks among others Mahakam and Rokan. The contract extension is like to giving alms to those contractors or foreign companies, "he explained. (K26/dpr/msw)

source http://en.bisnis.com