Indonesia to Cut Red Tape in Oil, Gas Industry

In a bid to encourage more oil and gas exploration, Indonesian government is contemplating reducing the number of licences required for such activity from 69 to eight, according to Jakarta Post.

The current lengthy process is considered a major hurdle for oil and gas contractors operating in Indonesia. 

“We are auditing several exploration licences. We think we can eliminate some of the licences [needed]," Energy and Mineral Resources Minister Jero Wacik said on Monday, Jakarta Post reported.

The ministry's director general for oil and gas, Edy Hermantoro, said licences would be short-listed into eight categories: for forest areas; from a provincial administration; from a regency administration; on the crossing of railways; on land clearing; on the use of foreign flagged vessels; on waste dumping; and on the regulation of dry docking for FSO (floating, storage and off-take) or FPSO (floating production, storage and off-take).

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