Aceh May Set Up Oil & Gas Upstream Regulator

The request proposed by Nanggroe Aceh Darussalam province to have Upstream Oil and Gas Regulator (BP Migas) of Aceh will soon be realized as the discussions involving the central government and the Aceh administration are nearing to conclusion.

“The talks have been going on for quite some time. There will be decision,” said Oil and Gas Director General Evita Herawati Legowo on Wednesday, Feb 3.

Evita explained that the Aceh administration demands an establishment of Aceh BP Migas. The provincial government will not recommend contract renewal for PT Medco Internasional Tbk for Block A, Aceh, if the upstream regulator is not yet set up.

However, according to the law, Aceh can only form an upstream regulator if a governmental regulation which stipulates the issue is ready.

In fact, Evita said the Medco contract renewal can be approved under the agreement between the Aceh administration and the central government.