Revised oil and gas legislation could boost market

摘要

Indonesian companies are optimistic that demand for offshore support vessels (OSVs), which stalled as exploration and production activity slowed, will be unleashed towards the end of this year when the country's revised oil and gas legislation is due to be complete. The revision of the oil and gas law is required to resolve the uncertainty over the upstream regulatory environment since November 2012. The uncertainty has resulted in delays in sanctioning new developments over the last two years. In November 2012, then upstream regulator BPMigas was declared unconstitutional in a court ruling and replaced by SKKMigas, a special taskforce widely deemed as a temporary bridging body before the passing of a new oil and gas law. Top SKKMigas officials were subsequently mired in corruption scandals, which further set back decision making on large capex projects. The administration of president Joko 'Jokowi' Widodo installed a new chief at SKKMigas after the appointment of an energy minister following the July 2014 election.