Indonesia Gives E&P Companies Three Years for Exploration Rightsadmin
Oil and gas contractors operating in eastern Indonesia are required to return their concession to the government if they failed to develop oil and gas potential in their working area after three years.
The regulation is issued after growing number of working areas left idle by contractors contributing to the decline in the country’s oil production, Priyono, upstream oil and gas development director, said.
Priyono said the government will be consistent in implementing the regulation as contractors have also been offered sufficient incentives.
Contractors operating in eastern Indonesia, where level of difficulty is higher, are no longer required to do well drilling, but they have to return their concession if they find the area has no profitable reserves, he said.
In western part of the country, where infrastructure is available more adequately, drilling is still required in explorations.
A number of world’s oil giants like ConocoPhilips, ExxonMobil, Chevron and Andarko are eyeing oil and gas concessions in eastern Indonesia.
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