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House preparing bill on special energy holding company

Gus Irawan Pasaribu, the chairman of House of Representatives Commission VII overseeing energy and mineral resources, has said the House is currently drafting a bill that will serve as the legal basis for a special energy holding company for state-owned enterprises in the energy sector.

Gus said the holding company would coordinate at least four state-owned enterprises in the energy sector.

First, a company that deals with the upstream oil and gas businesses; second, a company that will manage the affairs presently being handled by the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas); third, a company for the downstream oil industry; and fourth, a company for the downstream gas industry.

“All the companies will fall under the purview of the special energy holding company,” Gus said as reported by kompas.com on Monday.

Under the new system, Gus said the position of Pertamina, as a national oil company, would be different from private oil and gas cooperation contract holders.

“Currently, to get a contract, Pertamina also needs to follow the tender. With the new oil and gas law, the authority for exploration will be held by the special state-owned national oil company,” Gus added.

Meanwhile, the deputy minister at the Energy and Mineral Resources Ministry, Archandra Tahar, said the government did not have a position on whether the ruling on SKKMigas would be included in the oil and gas bill. He also said the government had not discussed the issue.

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