SabdaNews.com – DPD RI Chairman AA LaNyalla Mahmud Mattalitti hopes that the Ministry of Energy and Mineral Resources (ESDM) will consistently reject the transfer of oil and gas (IP) stake in the East Java Bulu block. Indeed, the transfer to the Canadian-based company, in addition to breaking the rules, was also done in secret.
“Obviously, our sovereignty is in jeopardy and energy security is increasingly fragile if foreigners are very powerful. Therefore, national energy policy must once again be fully and sovereignly controlled by the government,” LaNyalla said in margin of Sosdap MPR activities in Surabaya, Tuesday (28/3/2023).
The senator from East Java pointed out that the government, in this case the Minister of Energy and Mineral Resources, is indeed obliged to ensure the availability of energy for domestic needs.
However, foreign domination and rule-breaking behavior in the oil and gas sector can also threaten Indonesia’s economic sovereignty.
As is known, the Ministry of Energy and Mineral Resources (ESDM) has refused to transfer any participation rights or IPs that occurred in the Oil and Gas (WK) Working Area or the Bulu Block, offshore from the coasts of East Java.
Indeed, in the transfer process, the approval of the Minister of Energy and Mineral Resources was not obtained and was not communicated to the General Directorate of Oil and Gas (Ditjen Migas) and the special working group for upstream oil and gas activities. Activities (SKK Migas).
As stipulated in Articles 38 and 39 of the Oil and Gas Act No. 22 of 2001, all IP transfer transactions, changes of control, directly and indirectly carried out during the period of application of the IP policy additional time before the start of commercial production (onstream) cannot be made, before the party in question obtains the approval of the Minister of Energy and Mineral Resources.
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