Govt to terminate 13 oil, gas contracts

The Jakarta Post,  Jakarta  |  Wed, 03/04/2009 11:49 AM  

The government is currently preparing to terminate 13 oil and gas cooperation contracts (KKKS) with companies considered unproductive, Antara reports. 

The contracts were among 142 contracts with companies still in an exploration phase, upstream oil and gas regulator BPMigas chairman R Priyono said Wednesday. 

"We are now in the process of terminating 13 contracts," Priyono said, refusing to name companies involved. 

Under the 2001 law on oil and gas, companies obtaining such contracts must begin exploration within 10 years of signing. 

BPMigas is currently supervising 206 cooperation contracts, 64 of which have been productive, Priyono said. 

In 2009, the government is targeting to produce 960,000 barrels of oil, a reduction from the 976,000 barrels in 2008; and 7.526 billion cubic feet of gas, an increase from the 7.46 billion last year. 

According to the government, as of Jan. 1 last year there were still 3.8 billion barrels of oil and 112.5 trillion cubic feet of gas in reserve in Indonesia. (dre)