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Indonesia govt to honour all energy contracts with BPMigas-court
November 14, 2012 / 8:18 AM / 5 years ago

Indonesia govt to honour all energy contracts with BPMigas-court

JAKARTA, Nov 14 (Reuters) - The court ruling that dismantled Indonesia’s energy regulator BPMigas also stipulated that the government must honour all energy production sharing agreements signed with oil and gas companies.

BPMigas managed contracts with energy majors such as Chevron , Exxon Mobil and CNOOC. BPMigas said the fate of these contracts was uncertain after the court decreed it unconstitutional on Tuesday and gave its powers to the government.

“All the production sharing contracts (PSCs) signed between BPMigas and business entities or Permanent Business Establishments must remain in force until they expire or at another time in accordance with the agreement,” the court said in its ruling.

“From the time of this decision, all rights and authority of BPMigas in PSCs shall be implemented by the Government or State-Owned Enterprise set by the Government,” the ruling said.

Indonesia’s energy ministry plans to set up a unit to take over the duties of BPMigas, the deputy minister said on Wednesday.

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