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The Oil and Gas Upstream Regime Dualism
The important change introduced by the Job Creation Law in the oil and gas sector is the reapplication of the license/concession regime to oil and gas upstream business activity.
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The important change introduced by the Job Creation Law in the oil and gas sector is the reapplication of the license/concession regime to oil and gas upstream business activity.
This change is contained in the Energy and Mineral Resources (ESDM) cluster, Article 40 (page 226), which amends Article 5 of the Oil and Gas Law of 2001 with an addition to Paragraph (1) stipulating: “Petroleum and natural gas business activity shall be executed on the basis of business licenses from the Central Government”.