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Jakarta vows to speed up issuance of Chevron’s permits

Publication Date : 02-06-2014

 

The Indonesian government vows to accelerate the issuance of permits for the development of the Indonesia Deepwater Development (IDD) projects, including several oil and gas blocks owned by Chevron Indonesia in the Makassar Strait, Coordinating Economic Minister Chairul Tanjung has said.

The permits should be issued soon, otherwise investors will leave Indonesia and turn to other oil and gas projects in other countries, Chairul said as reported by kompas.com on Friday.

“I asked the Energy and Mineral Resources Ministry, the Upstream Oil and Gas Regulatory Special Task Force [SKKMigas], the Finance Ministry, and the Development Finance Comptroller [BPKP] to accelerate the permitting processes [of the gas drilling] that are possible [to be accelerated], so the project can start as soon as possible,” he said after conducting a meeting with Chevron Indonesia on Thursday.

He added that the project would give more benefits to Indonesia the sooner it began.

Chairul said previously that Chevron planned to switch its US$12-billion investment in the project to other countries as the permit process for the exploration work in fields in the Makassar Strait was “stuck”.

The government will form a small team consisting of the energy and mineral resources deputy minister and Investment Coordinating Board (BKPM) head to communicate with Chevron and ensure the permit process would soon be finished, he added.

“I hope in the next few weeks [the government] can settle the project’s issues,” he said.


 

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