Energy Minister Wacik moves to reassure over PSCs

By Amanda Battersby

 29 November 2012 23:59 GMT

Indonesia’s Minister of Energy & Mineral Resources Jero Wacik has assured companies of the validity and sanctity of their existing production sharing contracts in the wake of the dissolution of BPMigas.

However, although the minister has written to PSC holders affirming the validity of such regulations, the legal effect of that letter is open to challenge, according to law firm Norton Rose.

SKSPMIGAS, the new entity that has taken over BPMigas’ responsibility, at least on a temporary basis, is under the auspices of the ministry.

SKSPMIGAS is staffed by ex-BPMigas personnel, with the notable exception of former chairman Raden Priyono.

“Specifically, the [Constitutional] court [that disbanded BPMigas on 13 November] found fault in the agency’s ceding of day-to-day administration of oil exploration and exploitation work,…

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