TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Could Masela block development kick off soon? 

Expectations for the gas block are high, with its development being among the 37 National Strategic Projects (PSN), which are regulated under Presidential Regulation No.58/2017. 

Stefanno Reinard Sulaiman (The Jakarta Post)
Premium
Jakarta
Mon, April 8, 2019

Share This Article

Change Size

Could Masela block development kick off soon? Masela oil and gas block (Courtesy of/maritim.go.id)

I

n a recent House of Representatives hearing, a legislator from the opposition Gerindra Party criticized the government over its snail’s-pace progress on a plan of development (PoD) for the gas-rich Masela block.

Kardaya Warnika denounced the government’s lack of firmness in making a decision on whether it would approve the development plan proposed by Masela’s operator , Japan’s Inpex Corp, which holds a 65 percent stake in the block. 

“The [oil and gas] law is clear. Any [contractor or operator] that fails to develop the block within five years after the approval of the first PoD will automatically face contract termination,” Kardaya said of the block, the development plan of which has been under preparations for a decade.  

“It [Masela block development] has been [almost] 10 years, but the government still gives them [the right to operate], despite there being no construction at all. […] We need the government’s firmness in enforcing the law,” he said.

Kardaya was referring to Article 17 of  Oil and Gas Law No. 22/2001. 

Energy and Mineral Resources Minister Ignasius Jonan, who represented the government in the hearing, countered Kardaya’s statement, saying he would stick to Government Regulation No. 35/2004 on upstream oil and gas, which is a derivative regulation of the prevailing law. 

“I’m convinced that I did not violate the law [by not terminating the contract]. I think you believe that I’ve disobeyed the law. Well you could just report me [to the authorities] then,” the former transportation minister replied. 

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Could Masela block development kick off soon? 

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.