GOVT SUGGESTED TO DISSOLVE OIL/GAS REGULATING BODY

Jakarta, Aug 27 (ANTARA) - Oil expert Dr Kurtubi said that it would be better for the government to dissolve the Upstream Oil and Gas Regulating Body (BP Migas) because there was no control on its performance.

"BP Migas has the task of controlling the cost recovery of oil contractor companies but this agency has no instrument to control their performance," Kurtubi told a meeting of the Fuel Price Hike Inquiry Committee of the House of Representatives here on Wednesday.
He said that if the government refused to dissolve the PB Migas, it should change its status into a state company so that its performance could be controlled.
The oil observer said that Law No. 22 / 2001 on Oil and Gas should be revised because this law caused Indonesia to have difficulties in meeting its need for oil and gas.
This law restricted the domestic investors. As a result, Indonesia faced difficulties in meeting its need for oil and gas and was forced to import the commodity.
As a result of causing difficulties to oil and gas investment, Indonesia is relying on old oil and gas fields. In the last 10 years, no new oil and gas fields have been discovered, he added.
"Investment in the oil and gas sector has been declining significantly," he said.