Client Newsflash

BP Migas Role Transferred to Ministry of Energy and Mineral Resources

Following the controversial decision of the Constitutional Court on the disbandment of  BP Migas (the Implementing Body of the Upstream Oil and Natural Gas Activities),  the President has transferred all authorities and tasks of BP Migas to the Ministry of Energy and Mineral Resources (the “MEMR”).

The President issued Presidential Regulation No. 95 of 2012 dated November 13, 2012  regarding Transfer of Implementation of Tasks and Functions in Upstream Oil and  Natural Gas Business Activities (“PR 95/2012”) to effect the transfer above until new regulations are issued. All upstream oil and natural gas management activities by BP  Migas shall be assumed by the MEMR in accordance with the relevant laws and regulations. The objective of PR 95/2012 is to avoid any vacuum of power and ensure continuity of the upstream oil and natural gas business.

Equally important, PR 95/2012 affirms that all cooperation contracts signed by BP Migas remain valid until their respective expiry dates.

We understand that an Implementing Unit within the MEMR may be established to assume BP Migas role and function. It seems logical if all employees of BP Migas would be transferred to the Implementing Unit. But it remains to be seen how this will
be determined finally by the MEMR.

If you wish to have further information, please contact Johannes C. Sahetapy-Engel at


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