Under the Oil and Gas Law 22 th 2001 More oil and gas working areas of the National Company Won

Telukharunews - By using this form of production sharing contracts, in truth confirming the full sovereignty over to the upstream oil and gas. As known, the form of production sharing contracts (which is a change of form of Contract of Work) introduced when Bung Karno nationalize the oil companies who use any form of contract before the days of royalty. This change was done as a form of implementation of the mandate of Article 33 UUD 1945 in order to control the natural resources that dominate the life of the people. With production sharing contracts (which are now under age 22 th 2001 oil and gas law known as the Cooperation Contract) of foreign operations that do not mean clear strategic industry is foreign owned.

"National and foreign oil companies as contractors who work on only the state-owned oil and gas work", said Head of Public Relations Division, Sekurti, and Formality, BPMIGAS, Gde Pradnyana in Jakarta, Sunday (13/5).

He said, each contractor (national or foreign) shall report the plan of work to be performed, ongoing activities, to programs that have been completed. Full authority remains in the hands of the government, in this case BP Migas, the regulatory agency and control.

"We are determining whether a program goes into the cost component of cost recovery or not," he said.

With the cooperation contracts (KKS), the oil and gas production, after deducting operating expenses, divided according to the agreements stipulated in the contract of cooperation. For 85 percent of the oil states, the remaining contractors. As for the gas, 70 parts of the country, the rest are contractors. While for royalty as a form of contract in use in Western countries which adopts the capitalist, the state had no authority to regulate oil and gas operations management activities. In these countries the management operations performed by employers who fully mastered oil and gas fields. Countries there did not have sovereignty over natural resources. State royalties are only obtained from the depletion of natural resources and the corporate profit tax. "So inaccurate assumption that we do not have sovereignty over oil and gas resources", said Gde.

Currently being discussed the revision of Law No. 22 of 2001 on Oil and Gas by the House. Some threw the opinion of Law 22/2001 to be overhauled because it contravenes the 1945 Constitution, but actually this revision to anticipate the development of an increasingly strong democratic era.

Admittedly, he said, the Law 22/2001 which was born to meet the demands of reform and decentralization is far better than the previous rules, namely Law No. 8 of 1971 which was highly centralized. In the old era of the centralization of power occurred. Pertamina when it serves as a regulator (the supposed authority of the government) as well as the operator. It is that in the past to make our national oil and gas companies to be inefficient and accountability are very low. For example, the first revenues from oil and gas upstream sector obtained after reconciled with the balance of advantage and disadvantage of Pertamina. Now the reception is directly received by the state treasury. Another example, the first amount of retention / management costs for supervision and control of the cooperation contract reached three percent of the oil and gas revenue. At present, set up one percent, that would be submitted first to the government.

"So the argument that once the cost of managing upstream cheaper, obviously wrong," he said.

In the era of the old oil and gas law, the Work Area (or block) Gas only offered and given to big companies, which is dominated by foreign companies. Now, with Work Area of ​​Law 22 th.2001 publicly tendered.

Now is not surprising that data from the Ministry of Energy and Mineral Resources (ESDM), showed that throughout 2001-2011, 74 percent of working areas are already producing oil and gas produced by foreign companies. Because they generally obtain contracts in the era of the Law 8 th 1971.

"When viewed statistically, more new exploration blocks rather than foreign owned national company," he said.

Throughout the years 2001-2011, with the enactment of Law 22 th, 2001, statistics show an average of 17 new blocks are given. Of that amount mostly given to national companies. Foreign contractors winning tenders only in the area of ​​deepwater oil and gas blocks in the Makassar Strait in Indonesia and the eastern frontier.

Another thing that is quite crucial, Act 8 of 71 led to a very centralized area will never have a role to participate in managing natural resources (SDA) in the region. Now, with the Oil and Gas Law 22/2001, the role of the region accommodated by giving participating interest.

Gde asserted, even if oil and gas law revision, it should be in connection with efforts to support increased oil and gas reserves and production. "This includes efforts to increase national capacity, including supporting industries, producing areas where participation would also be more wide open." He said. (BP Migas)