Team studying SKK Migas`s possibility of becoming state firm

Jakarta (ANTARA News) - The Indonesian Governance Reform Team of the Energy and Mineral Resources Ministry has been studying the possibility of oil and gas regulator SKK Migas becoming a state-owned enterprise (SOE).

One of the members of the team Fahmi Radhy said here on Tuesday that they have been exploring an ideal form for SKK Migas. "We have set a target: to come up with recommendations for an ideal status for SKK Migas latest by the end of this month."

He noted that as an SOE, SKK Migass function as an oil and gas regulator and supervisor will be dissolved. These tasks will be returned to the ministry of energy and mineral resources.

"SKK Migas will only serve as an operator of the oil and gas business," he added. As an SOE, SKK Migas will be able to carry out business transactions with other companies.

Fahmi pointed out two SOE form options that SKK Migas can adopt.

The first option is to be under state-owned oil and gas company Pertamina and the second is to form a new state company.

As an SOE, SKK Migas will have the task of mapping out the potential for further development of working oil business areas.

"The development scheme will suggest that the working business area is first offered to Pertamina. If Pertamina rejects it, then it will be auctioned to other companies," he added.

The other task that SKK Migas will carry out is to coordinate working areas and sell the states portion of oil and gas.