"Now we are awaiting a permanent solution."Jakarta (ANTARA News) - Indonesian Petroleum Association (IPA) hopes that the upstream oil and gas provisional working unit (SKSP Migas) could bring about more favorable investment climate.
"We hope that the new body would contribute to improving investment climate," IPA chairwoman Elizabeth Proust said here on Tuesday.
Proust, who is president director of France`s Total E&P Indonesie said with SKSP put under the energy and mineral resources ministry administrative work would be simpler.
Proust said Total E&P Indonesie, a subsidiary of French oil giant Total appreciated the government`s quick respond to the recent decision of the Constitution Court disbanding BP Migas.
"The government is well aware of that it is vitally important to maintain energy industry," she said.
Total and its partner Inpex Corporation from Japan are committed to keep the Mahakam Block operate maximally until 2017 when Total`s contract in the block expires, she said.
"We hope that next month our working program and budget could be approved," she said.
She said Total has invested around US$2 billion-US$2.5 billion in the Mahakam Block a year.
Total has indicated it is keen on extending its contract, but the government has said it would not renew Total`s contract in the Mahakam Block after its expiration in 2017.
Total, however, may be allowed to have a share in the block with state oil and gas company Pertamina holding the controlling stake.
Meanwhile, President of BP for Asia Pacific William Lin said the decision of the Constitutional Court had caused concern among all foreign oil contractors operating in the country.
However, the quick move by the government in responding to the decision, helped reduce concern of the contractors, Lin said.
"Now we are awaiting a permanent solution. For the time being we will work with the new organization," he said.
Like Proust, Lin also refused to comment on recommendation to transfer the function of BP Migas to a certain agency.
He said his company would deal with SKSP Migas to carry out its oil and gas projects including Tangguh liquefied natural gas plant in Papua.
"We hope we could carry out all projects as scheduled," he said.
He said the British based oil giant will continue with investment plans in the country.
The Constitutional Court disband BP Migas on November 13, saying the agency operated against the state constitution.
The job of BP Migas was handed over to the energy and mineral resources ministry.
In a bid to assure oil and gas investors, the government immediately issued a presidential regulation No 95 of 2012 and two decisions of the energy and mineral resources minister No 3135 and No 3136.
Under the regulation, SKSP was formed as a provisional replacement of BP Migas until a new law is issued.
The government assured oil and gas contracts that the contracts they hold remain valid and their operations would not be affected with the dissolution of BP Migas.
IPA, which was set up in 1971, now has members including 53 foreign and Indonesian oil companies, 111 companies operating in oil and gas supporting industry and 2,000 individuals.
The IPA members account for 90 percent of oil and gas explorations and production in the country.
(Uu.AS/H-ASG/B003)
Editor: Priyambodo RH
Copyright © ANTARA 2012
