Pertamina downplays threat by regents

Pertamina downplays threat by regents

Moch. N. Kurniawan, The Jakarta Post, Jakarta

State oil and gas firm Pertamina believes that regional
leaders will remain committed to protecting oil and gas
operations in their respective areas despite their
dissatisfaction over the new oil and gas law.

Pertamina's director of production-sharing management Effendi
Situmorang said the regional leaders would do their best to
prevent oil and gas investment in their respective areas being
interrupted because any security problems would not only hurt
investment but also damage their regions' reputations among
investors.

Effendi was commenting on the threat voiced by the
Consultative Forum of Oil Producing Regencies that the forum's
members would not protect oil and gas investments in their
respective areas unless the government and the House of
Representatives accommodated their wishes in the deliberation of
the new oil and gas law.

The forum has demanded that the new law have a clause
requiring the formation of a special agency, to be called the
National Oil and Gas Coordinating Board, that would determine all
major oil and gas policies. The forum also demanded that it have
representation on the forum.

However, the House and the government have rejected the
proposal, saying it came too late when the debate on the oil and
gas bill had already been completed.

The House is planning to pass the bill into law on Oct. 24 at
a plenary session.

Effendi said he believed the forum's members would not cause
trouble for the oil and gas companies in their respective areas
following the rejection of their proposal.

"They wouldn't dare to sabotage oil and gas facilities. It's
wrong and emotional," he told reporters after a press briefing on
the evaluation of production sharing contracts.

Effendi also said that soon after the passing of the bill into
law, the government would stage an information campaign to raise
the public's awareness of the new oil and gas law so that people
in the regions would be committed to protecting oil and gas
investments in their respective areas.