15 April, 2017
Indonesia’s oil and gas sector is governed by Law No. 22 of 2001 regarding Oil and Gas (the “Oil and Gas Law”). The state retains mineral rights throughout Indonesian territory and the Government holds the mining authority.
The oil and gas sector comprises upstream and downstream activities, which are separately regulated and organized. Upstream activities include exploration and exploitation, and are regulated under Government Regulation No. 35 of 2004 regarding Upstream Oil and Natural Gas Business Activities as has been amended several times, the latest by Government Regulation No. 55 of 2009 (“GR 35″). The upstream sector is managed and supervised by the Special Task Force for Upstream Oil and Natural Gas Business Activities (“SKK Migas”).
Due to the unique territorial composition of the archipelagic state of Indonesia, upstream oil activities may be undertaken in onshore and offshore areas. Work areas for onshore and offshore operations are determined by the Ministry of Energy and Mineral Resources (“MEMR”) based on consultations with and recommendations from the respective regional governments.
For the full article, please click here.
For further information, please contact:
Fitriana Mahiddin, Partner,
Soewito Suhardiman Eddymurthy Kardono
fitrianamahiddin@ssek.com
