THE REPUBLIC OF INDONESIA NEWS

No. 58, 2010 MINISTRY OF ENERGY AND MINERAL RESOURCES. Oil and Earth Gas. Increase in Production. Guidelines.

REGULATION OF MINISTER OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA NUMBER 06 Year 2010001 2010

ABOUT THE POLICY GUIDELINES FOR OIL PRODUCTION INCREASE

AND GAS BUMI

WITH THE GRACE OF GOD ALMIGHTY ESA MINISTER OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA,

Draws: a. That the Earth's oil and gas have contributed greatly to the state's acceptance and the fulfillment of energy and the raw materials of the domestic industry, and by this time the production of the Earth's Oil and Gas has declined;

b. that the potential for Oil and Gas Earth can still be optimized for production so that in order to attempt to increase the production of Petroleum and Earth Gas needs to set the policy guidelines for increased production of Petroleum and Earth Gas in a Regulation. Minister of Energy and Mineral Resources;

Given: 1. Law No. 22 of 2001 on Petroleum and Earth Gas (State Sheet of the Republic of Indonesia

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Year 2001 Number 136, Additional Gazette Republic of Indonesia Republic of Indonesia Number 4152);

2. Government Regulation No. 35 Year 2004 on the Activities of the Upper Countries of Petroleum and Earth Gas (State Sheet of the Republic of Indonesia 2004 Number 123, Additional Sheet of the Republic of Indonesia Indonesia Number 4435) as amended the last two times with the Government Regulation Number 55 Of 2009 (sheet Of State Of The Republic Of Indonesia 2009 Number 128, Additional Sheet Of The Republic Of Indonesia Republic Of Indonesia Number 5047);

3. Government Regulation No. 42 of 2002 on the Acting Agency for the Activity of Upper Oil and Earth Gas (State Sheet of the Republic of Indonesia 2002 Number 81, Additional Gazette of the Republic of Indonesia States No. 4216);

4. Presidential Decree No. 84 /P of 2009 dated 21 October 2009;

5. Regulation of the Minister of Energy and Mineral Resources Number 0030 of 2005 dated July 20, 2005 on the Organization and the Working Services of the Department of Energy and Mineral Resources;

DECIDED: Establishing: REGULATION OF MINISTER OF ENERGY AND RESOURCES

MINERALS ABOUT THE POLICY GUIDELINES INCREASE THE PRODUCTION OF PETROLEUM AND GAS.

CHAPTER I OF THE GENERAL PROVISION

Article 1 In this Ministerial Regulation referred to: 1. Oil and Earth Gas is Earth Oil and Earth Gas. 2. The Cooperation Contract is a Contract for the Results or form of a working contract

in any other way in Exploration and Exploitation activities are more favorable to the State and the results are used for the greater prosperity of the people.

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3. A contractor is the Entity ID or Fixed Entity Entity that is set to perform the Exploration and Exploitation of a Workspace under a Cooperation Contract with the Managing Board.

4. Exploration is an activity that aims to obtain information about geological conditions to find and acquire the estimated reserves of Petroleum and Earth Gas in the designated Workspace.

5. Exploitation is a series of activities that aim to produce Petroleum and Earth Gas from the designated Workspace, which consists of drilling and well settlement, construction of means of transport, storage, and processing for the the separation and purification of Petroleum and Earth Gas in the field as well as other activities supporting it.

6. The Minister is the minister whose field of duty and responsibility covers the activities of the Petroleum and Gas Earth efforts.

7. A Managing Board is a body that is set up to conduct control of the Upper Business activities in the fields of Petroleum and Earth Gas.

8. The Directorate General is a directorate general whose field of duty and authority includes the activities of the Petroleum and Gas of the Earth.

9. The Director General is the director general whose duties and responsibilities in the field of Petroleum and Earth Gas.

Article 2 Every effort of the Exploration and Exploitation aims to support the achievement of the goals of the Government program specified in the The State Revenue and Shopping Budget and other Government policies that support increased production of Petroleum and Earth Gas.

CHAPTER II IMPLEMENTATION OF THE PRODUCTION IMPROVEMENT EFFORTS

THE OIL AND GAS OF THE EARTH SECTION

Oblig; Contractor Section 3

In order to perform the provisions as contemplated in Section 2, Contractors are required to perform:

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a. the completion of the Exploration activities in the discovery structure and expedited the proposed submission of a new field development plan from the already found reserve;

b. the acceleration of the implementation of first field development activities; c. acceleration of implementation of the next field development activities; d. the development or processing of field returns that

is still potentially good to be produced and that has never been produced;

e. The processing of the processing returns of potentially good wells that are either produced or never produced.

Section 4 (1) In order to perform the provisions as referred to in the Section

3 letter a, letter b and the letter c, the Contractor is mandatory: a. report new Petroleum and Earth Gas reserves to the Minister

via the Managing Board in the slowest term of 14 (fourteen) calendar days after being set by the Managing Board;

b. submitted a proposed field development plan in the slowest 90 (ninety) calendar days after the set of new Petroleum and Earth Gas reserves as referred to in the letter a;

c. initiing field development activities At least 180 (100) calendar days after the approval of field development plan;

d. initiating the Production of Oil and/or Earth Gas in the slowest term of 2 (two) years after obtaining field development approval.

(2) The implementation of field development as referred to in paragraph (1) letter c, mandatory by Contractors in accordance with the Work and Budget Plan, and the provisions of the laws.

(3) In case due to technical and/or economic considerations the provisions as referred to in paragraph (1) cannot be performed by Contractors, the Minister of c.q. Director-General may set another policy in the acceleration of production acceleration.

Section 5 (1) In order to perform the provisions as referred to in Article 3

letter d, Contractor is mandatory:

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a. Perform non-production field inventory, but may still be available and report on the results of the inventory to the Managing Board at least 14 (fourteen) calendar days after the use of this Minister's Regulation;

b. report to the Minister through the Managing Board with the submission of a reprocessing plan back in the slowest term of 30 (thirty) calendar days after completion of the inventory as referred to in the letter a.

(2) In the event of a reprocessing plan as referred to in paragraph (1) will be performed by cooperation of the other party, first requesting the Minister's approval through the Managing Board.

Article 6 In case of the Contractor does not submitted a company plan against a non-production field but still potentially as referred to in Article 5 of the paragraph (1), the Contractor is obliged to return it to the Minister to set its business policy.

Article 7 (1) In the course of the implementation of the provisions as referred to in Article 3

letter e, Mandatory contractors: a. Perform non-production wells inventory, but

potentially in a field of production and reporting the results of such inventory to the Managing Board at least 14 (fourteen) days. The calendar after the Ordinance of this Minister's Rule;

b. Reporting to the Minister through the Managing Board with the submission of the processing plan back in the slowest 90 (ninety) calendar days after completion of the inventory as referred to in the letter a.

(2) In the case of a reprocessing plan as referred to in paragraph (1) shall be performed by cooperation of the other party, first requesting the Minister's approval through the Managing Board.

Section 8 of the implementation of the provisions as referred to in Article 3 up to Section 7 by considering the Contract of Cooperation and refers to the laws.

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Second Part Oblicity of the Managing Board

Section 9 In order to perform the provisions as referred to in Article 2, the Managing Board is mandatory: a. support the process of accelerating the drafting and publishing of regulations

laws required; b. accelerate the process of granting permissions and approvals related to

production enhancers; c. increase control and supervision efforts for implementation of

Cooperation Contract; d. Improve the efforts to be followed by a Contractor in the

implementation of the rights and its obligations; e. conducting increased internal coordination in order of completion

issues related to the activities of the petroleum operation. Section 10

In order to perform the provisions as referred to in Article 9 of the letter a, the Managing Board is mandatory: a. conduct inventory and evaluation of the conduct of the law enforcement regulations-

the invitation related to the increased production of Petroleum and Earth Gas and report the results to the Minister with a gust to the Director General in the term At least 30 (thirty) calendar days from the current Ministerial Regulation;

b. convey the substance input in order to set up the laws necessary for the increased production of Petroleum and Earth Gas to the Director General in the slowest term of 30 (thirty) calendar days after completion of inventory as intended on the letter a;

c. conduct an evaluation of the implementation of the Cooperation Contract and provide input for the alternative composition of the form of the Contract of Cooperation and/or the underlying provisions of the Contract. Cooperation to the Director General in the slowest term of 90 (nine The calendars of the Order of the Union;

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d. Make adjustments and realignment to the provisions and guidelines of the work order in the slowest term of 30 (thirty) calendar days from the course of this Ministerial Regulation.

Article 11 In order to perform the provisions as referred to in Article 9 of the letter b, the Managing Board is mandatory: a. Submit a recommendation with consideration of the development plan

The first pitch (POD I) to the Minister in the slowest term of 40 (forty) calendar days since the receipt of the proposal of the Contractor is complete;

b. provide the following field development approval (POD), within the slowest term of 40 (forty) calendar days since the complete Contractor proposal is complete;

c. gives the Job Plan and Budget agreement (Work Program and Budget) and/or Financial Spending Authorization (Authorization Financial Expenditure) in the slowest 40 (forty) calendar days since the acceptance of the Contractor's proposal is complete;

d. provide a recommendation for the transfer of rights and obligations of (farm in and farm out) within the time at the latest of 14 (fourteen) calendar days after the complete Contractor proposal;

e. Provide the use of the facility in conjunction with (sharing facilities) within the timeframe at least 14 (fourteen) calendar days upon receipt of the proposal from the Contractor in complete;

f. Provide a recommendation for approval to the Minister in terms of unitisation in the slowest term of 14 (fourteen) calendar days after the receipt of the proposal from the Contractor in a complete agreement;

g. provide recommendations for import of goods, petroleum operations equipment within the slowest term of 14 (fourteen) calendar days upon receipt of the proposal of a complete Contractor.

Article 12 In carrying out the provisions of the referred to in Article 9 of the letter c, the mandatory Managing Board: a. Perform surveillance and evaluation of the first POD implementation and

next in accordance with the approved POD approval;

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b. Perform surveillance and evaluation of the execution of the Work Plan and Budget (Work Program and Budget) and/or the Financial Spending Authorization (Authorization Financial Expenditure)

c. conduct increased supervision of implementation of the well-well care and the Earth Gas and Gas production facilities.

Section 13 In carrying out the provisions as referred to in Section 9 of the d, the mandatory Managing Board: a. increasing the intensity of monitoring and oversight over activities

Contractors; b. provide a reprimand/warning to a Contractor that does not perform

obligations under the Cooperation Contract; c. provide a recommendation to the Minister for the awarding of

the termination of the Cooperation Contract if there is a breach Contract and/or applicable laws.

Section 14 In order to perform the provisions as referred to in Article 9 of the letter e, the Executing Board is required: a. facilitate and conduct internal coordination for the acceleration

resolution of the problem; b. Reporting to the Minister for issues that have not been

can be resolved to be able to take on its policies. Article 15

In addition to the obligations as set out in Section 9 to Section 14, the Acting Agency is mandatory: a. set the newly discovered Oil and Earth Gas reserve magnate

in the slowest 30 (thirty) calendar days following the new discovery;

b. establish the production target allocation for each Contractor that is adjusted to the Government's national Earth Gas and Gas production objective;

c. perform the supervision of the on-time deployment of the development plan field against the Earth Oil and Gas reserves that

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found as referred to in Section 4 of the paragraph (1) letter b and report on its periodic development every month to the Director General.

The Third Part of the General Directorate of Liability

Article 16 In the framework of the implementation of the provisions as referred to in Article 2, the Directorate General is mandatory: a. Expediting the drafting and publishing process of the perinvite-

invitation required; b. accelerate the process of granting permissions and approvals related to

increased production of Petroleum and Earth Gas; c. increase the coaching effort, control and upper supervision

implementation of the Contractor activities; d. enhance the efforts to be adhered to the laws by

Contractors in the exercise of its rights and obligations; e. enhance internal and cross-sectoral coordination in order

resolution of problems in the activities of the petroleum operation. Section 17

In order to perform the provisions as referred to in Article 16 of the letter a, the Director General is mandatory: a. provide an inventory and evaluation of laws

related to the increased production of Petroleum and Earth Gas to the Minister in the slowest term of 30 (thirty) calendar days since the Ministerial Ordinance. this;

b. Prepare and build a draft law required for the increase of the Production and Production of the Earth in the slow term of the Cloud Service. letter a;

c. do an evaluation of the underlying form and conditions of the Cooperation Contract and propose an altenative form of the Working Contract and/or the underlying provisions of the Cooperation Contract to the Minister in the most current term slow 90 (ninety) calendar days from the Ministerial Ordinance This.

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Section 18 In order to perform the provisions as referred to in Article 16 of the letter b, the Director General is mandatory: a. Submit a consideration to the Minister for the grant

first field development plan approval (POD I) in the slowest term of 30 (thirty) calendar days after the proposal of the development plan first field (POD I);

b. provide the permission/recommendation in the slowest 10 (ten) calendar days since the receipt is complete.

Article 19 In carrying out the provisions as referred to in Article 16 of the letter c, the Director General is mandatory: a. evaluate and analyze the implementation of the related Contractor activities

with increased production of Petroleum and Earth Gas; b. provide early information on special matters and anticipated anticipation

to the Minister regarding matters related to the increased production of Petroleum and Earth Gas;

c. take the necessary steps as a follow-up evaluation results for the report as referred to in the letter a and letter b.

Article 20 In carrying out the provisions as referred to in Article 16 of the letter d, the Director General is mandatory: a. provide a rebuke/warning to Contractors that do not carry out

obligations under the terms of the Regulation of this Minister; b. provide sanctions to the Contractor performing a repeat of

violation after giving it a warning/warning as intended on a letter a.

Article 21 In the framework of the implementation of the provisions as referred to in Article 16 of the letter e, the Director General is mandatory: a. facilitate and coordinate with the internal agencies of the sector

energy and mineral resources for the acceleration of problem resolution in the activities of the petroleum operation;

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b. facilitate and perform sectoral coordination for the acceleration of problem resolution in the operation of the petroleum operation;

c. report to the Minister for issues that have not been resolved to be taken. policy.

BAB III

provisions LAIN

Article 22

In the implementation of Exploration and Exploitation as referred to in Article 2, Contractors are required to prioritize the utilization of goods, services, technology and engineering capabilities as well as a domestic build.

Article 23

Production results from Exploration and Exploitation are prioritised for the fulfillment of domestic needs.

Section 24

The policies, arrangements, coaching and supervision are required in order to perform the provisions as referred to in Article 22 and Article 23.

Article 25

In order to help with the implementation of the Earth Gas and Gas production increase program, the Minister can form the Supervising Team of Earth Oil and Gas Production.

BAB IV

PROVISIONS

Article 26

With the Ordinance of this Minister Regulation, any provision in the The rules of the Minister and its implementation rules that are in conflict with this Minister's Regulation are revoked and declared not in effect.

Article 27

The rules of this Minister are effective at the designated date.

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For everyone to know it, ordering the Minister of the Ordinance by its placement in the News of the Republic of Indonesia.

Specified in Jakarta on February 2, 2010 MINISTER OF ENERGY AND THE MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA,

DARWIN ZAHEDY SALEH

PROMULRED IN JAKARTA ON 2 FEBRUARY 2010 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, PATRIALIST AKBAR

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