VIVAnews – The government stated that they will not limit the cost recovery for oil and gas exploration and production. However, the holders of oil and gas production sharing contract (KKKS) were asked to be realistic when putting the components in the cost recovery.
“We are trying to make no limit so the contractors should not be worried,” said Energy and Mineral Resources Minister Darwin Zahedy Saleh in Jakarta on Wednesday, Dec. 2.
Saleh said that the Finance Minister had already explained that there will be no limitation and the department will communicate it with the House of the Representatives.
Saleh explained that the negative investment in oil and gas sector is not only caused by the government regulation draft on cost recovery, but also because of the global economic crisis which hampers the investment growth.
Nevertheless, the department is optimistic that the investment sector climate will improve next year since the economic growth is predicted to be positive in 2010.
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Translated by: Ariyantri E. Tarman
VIVA.co.id
28 April 2024
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