Decree of the Minister of Energy and Mineral resources No. 1454/K/30/MEN/2000 on technical guidelines on organizing the tasks of the Goverment in the field of oil and natural gas

Article 2 The organizing of Oil and Natural Gas Business which may be carried out by the Regional Administration consists of : 1. The agreement of utilizing the Mining Concession or Contractor Working Territory for activities other than oil and natural gas activities; 2. The Recommendation on the procedure for the utilization of the forest zone for the interest of oil and natural gas activities. 3. The permit for the construction and utilization of the warehouse for explosives in the shore operation region and in the 12 (twelve) sea miles operation area. 4. The permit to open a company Representation Office in the Oil and Natural Gas sub-sector. 5. The recommendation for the location of construction of a refinery. 6. The permit for the construction of a local depot; 7. The permit to construct a Public Petrol Filling Station ("SPBU"); 8. The permit for marketing the Types of Special Fuel Oil for 2 (two) stroke engines; 9. The permit to accumulate and distribute used lubricants; 10. The Approval for the Certificate of Registry of the Supporting Service Company except those operating in the field of fabrication, construction, manufacturing, consultant and high technology. CHAPTER II PflOCEDURE FOR THE FILING OF AN APPLICATION AT THE UPSTREAM ACTIVITIES

Article 3 The technical guidelines for the application and the granting of an approval for the utilization of a Mining Concession or Contractor Working Territory for other activities as referred to in Article 2 point 1 are as follows : 1. The Business Entity files an application for the utilization of land to the Regional Administration with a <:opy to the Director General by attaching at least : a. the company's bio data CAFI 104/0ECEMBER 29, .:WOO b. the location map c. the locaiton permit d. the date regarding utilization of l,,MM:t e. a guaranty to adhere to the technical pnJvision.s. 2. When necessary the Business Entity is obliged to technical presentation. 3. The Regional Administration issues an Approval for the utilization of the Mining concession or Contractor Working Territory after having obtained a Recommenda-tion from the Director General. 4. The Business Entity which has already obtained an approval, is obliged to enter into an agreement for the utilization of land with the holder of the Mining Concession or Contractor Working Territory. 5. A Business Entity is obliged to adhere to the prov1s1ons on occupational safety, environmental protection, evaluation and reporting conform with the legislative regulations in force.

Article 4 The technical guidelines on the application and the granting of a Recommendation on the utilization of the forest zone for the interest of oil and natural gas activities as referred to in Article 2 point 2 are as follows : 1. The Business Entity or Permanent Establishment must file an application to the Regional Administration with a copy to the Director General by attaching at least : a. the company's biodata; b. the data concerning the coordinates of the region that will be used; c. the data regarding the type of activities which will be carried out; d. the map of the Mining Concession Territory or the Contractor's Working Territory. 2. On the application as referred to in point 1, the Regional Administration carries out an administrative research and evaluation. .·. 3. Based on the research and evaluation results, the Regional Administration gives a Recommendation to the Business Entity or the Permanent Establishment to be subsequently submitted to the authorized agency to obtain a permit for the utilization of the forest zone for the interest of the oil and natural gas activities.

Article 5 The technical guidelines of the application and the granting of a permit to construct and use a warehouse to store explosives at the operating region onshore and at the 12 (twelve) sea-miles operation region as referred to in Article 2 point 3 are as follows : 1. The Business Entity or Pennanent Establishment files an application of a permit to ~onstruct and use a warehouse or container as the place for storing explosives to the Regional Administration with at least attached : a. construction drawin91 of the godc,wn/r.m1tainer for the storage of the explosives; b. drawing of the layout of the warehouse/container for the storage of the explosives; CAFI 104/DECEMBE!~' :t9, :WOO c. situation n:,s:::,p ot th(➔ work\11,'i) d. the type, wnifJlit tmd m,it,it,nnm1<"'ni. nt H'1(1 ctum/bo;f cf explosives which will be stor6d; e. The recmnmirmdatkHl frovn th!J Dh,1}c1:ur Grm!,il",~i; f. A statemtmt of hl'!vinn no 0~1jil:c;1J1.1,m, bm11;;,d by the local Chief of· Jhe Regional State Police. 2. On the application as refom:1d to in point l , trll,1 Flt:)giorn:;il Adrninistradon. shall :.;arry out an administrative resean:h ~md evalu&itkm. 3. Based on the results of tha resa,u<.:h and ,~w2h..1aitii:m th,i,; Hagional Administration grants a Permit for the construction and utllt.:mion of the warehouse or container for the storage of explosives at the operating region on shoro and at the operating region 1 2 (twelve) sea miles. 4. The Business Entity or Permanl'!nt Establi:shment is obliged to adhere to the provision on occupational safety, environmental prntec'i:ion, technici,1! s·tandards, evaluation and reporting conform with the legislative retiulations in force. The technical guidelines for the application and granting of a Permit to Open a .Company Representation Office in the Oil and Natural Ga.s Sub Sector as referred to in Article 2 point 4 are as follows: ·1 . A Business Entity or Permanent Establishment flies an application for a Permit to open a Representation Office to the Regional Administration accompanied by ttie reasons thereto while attaching at least : a. A Business Registration Certificate or a document similar thereto from the country of origin; b. A Recommendation from the Embassy of the Republic of Indonesia at the cquntry of origin containing the Name and Address of the Company, the Name of the Owner and the Board of Directors and the Pian of the activities which will be carried out in lndo.nesia; c. A Power of attorney for the Head of the Representative Office fron;i .. the Company Management at the Head Office; d. The Organizational Structure o"f the Head Office and the Representative Office in Indonesia; e. The plan of activities of the Heprnsemative Office/ realization of the activitjes in Indonesia/for extension); f. A Recommendation from the Direct,.)r General. 2. An the applil~ation as retened to in point 1, thf:1 Rrigional Administration shall carry out a research and evalu:at.ion. 3. Based on the results of the rnssarch imd M11.:1Jm~tim1 th~ Regional Administration issues a Permit to open a Reprnt;f)l'\tation O·ffa:a}. CAFI 104/D£CE!t'U3£Fl !P~~OC!l:l»Wl~ l)f f!U!\jf:rl ltll>J ,f:\JD/PUCA"r!ON !,/!:,,. r TME n:VO\\f!lll'\a$.rtrJ/fEJ~t1,1~ /,l,i('.;'m,fR'f6(~~) The technical guidelines for the appUcation eind the giaridng of Recommendation for the location of the Construction of a Refinery as referred to in Article 2 point 5 are as follows : 1. The Business Entity files an f\ppiit;~t.!on for thB Recommendation of a location i'or the Construction of a Refinery to the local f~agional Administration by attaching at least : a. the biodata of the company; b. the location mf1p; c. the production capacity; d. the utilization of equipment and the numbei' of manpower. 2. On the application as referred to in point 1, t.he Regional Administration carries out a research and evaluation. 3. Based on the results ot the research and r,:::valuation the Regional Administration issues a Recommendation for the location to Ct:mstn.1ct a Hefinery. 4. The Business Entity is obliged to adhern to the provisions on occup,ational safety, environmental protection, technical standards, evaluation and reporting conform with the legislative regulations in force.

Article 8 The technical guidelines for the application and the granting of a Permit to construct a local depot as referred to in Article 2 point 6 are as follows : · '• 1. The Business Entity files an application to the Regional Administration with a copy to the Director General and attaching at least : a. Biodata of the company; b. location map; c. data concerning the storage capacity; d. data on the estimation of distribution; e. inventory taking of the equipment and facilities used; f. Recommendation from Pertamina. 2. On the application as referred to in point 1, the Regional Administration carries out an administrative research and evaluation. 3. On the basis of the results of the research and evaluation, the Regional Administration issues a Permit for the construc:tion of a local depot. 4. The Business Entity is obliged fco i.1dhere to the provisions on occupational safety, environmental protection, technicrnl st,.md.llrds, evaluation and reporting conform with the legislative regulations in force. CAFI 104/DECEJIIIBER W, The technical guidelines -tor the i1llpplicartim1 aind the granting of a permit to construct a "SPBU" (Public Petrol Fimng Station) as referred t:o in Articlf; 2 point 7 is as follows : 1. The Business Entity files an application to the Regional Administration with copy to the Director General and attaching at !east : a. the company's biodata; b. the location map; c. the data regarding the storage capacity; d. the data on the estimation of distribution e. inventory taking of the equipment and facilities used; f. Recommendation from Pertarnina. 2. On the application as referred to in point 1, the Regional Administration carries out an administrative research and evaluation. 3. Based on the results of the research and evaluation, the Regional Administration issues a permit to construct an "SP'BIJ". 4. The Business Entity is obliged to adhere to the prov1s1ons on occupational safety, environmental protection, technical standards, evaluation and reporting conform with the legislative regulations in force.

Article 10 The technical guidelines for an application and the granting of a Permit for the Marketing of Special Fuel in the form of Fuel for 2 (two) stroke Engines as referred to in Article 2 point 8 are as follows: 1. The Business Entity files an application for a Permit to the Regional Administration with a copy to the Director General by attaching at least : a. the company's biodata; b. technical information; c. certificate of domicile; d. Trading Business Licence ("SIUPN); e. statement on compulsory company registration. 2. If required the Business Entity is obliged to carry out technical presentation. 3. On the application as referred to in point 1, the Regional Administration carries out an administrative research and evaluation. 4. The Business Entity is obliged to adhere to the provrs,ons on occupational safety, environmental protection, technical standards, evaluation and reporting conform with the legislative regulations in force. Article i 1 The technical guidelines for an application and the granting of a Permit for the Accumulation and Distribution of Used Lubricants as referred to in Article 2 point 9 are as follows : CAFI 104/DECEMBER 2.9. Wf>f,; I. The Busim:iss IEntit'/ rne1 m11 applk:1.Hion to tf"H:, ~'li:'1gio11i:i1I Administration, by attaching at least: a. the company bk,di:1ta; tJ. Trading Bu~sir11est~ Ucence ("SiHP"); c. Place of BwJiness Ui::enca ("SITU") for the accumulation of lubricants; d. the data conc:(llming the accumulatif>n facilities; e. the data on the equipment used. 2. On the application a1,, ref0rred to in point 1, the Regional Administration carries out administrative research and evaluation. ;:1. Used lubricants which is produced must be distributed to companies hotders of the permit to process used lubricants. 4. The Business Entity i~i obliged to adhere to the prov1s1ons on occupational safety, environmental protection, technical stitllnd!llrds, evaluation and reporting conform with the legislative regulations in torce. CHAPTER IV PHOCEDURE OF FILING AN APPLICATION TO HIE SUPPORTING SEfWICES COMPANY Article ·12 The technical guidelines for an application to obtain an Approval for the Certificate of Registration of the Supporting Services Company as referred to Article 2 point 10 are as follows : 1. Each Supporting Services Company which will carry out activities at the Business Entity or Permanent Establishment which carries out oil and natural gas exploration and exploitation activities is obliged to obtain an Approval for the Certificate ot Registration. 2. To obtain an Approval for the Certificate of Registration as referred to .in point 1, the Business Entity files an application to the Regional Administration, by attaching at least : a. the company's biodata; b. Trading Business Licence ("SIUP"); c. Place of Business licence ("SITU"); d. bank reference; e. Suppliers' Registration Certificate ("TDR"). 3. On the application at referred in point 1, the Regional Administration carnes out an administrative research and evaluation. 4. Based on the results of rosearnh and evaluation, the Regional Administration grants an Approval for the Certificate of Registration to the Business Entity with .a copy to the Director General. CHAPTER IV OTHER PROVISIONS CA.Fl 1()4/DECEMBER :,,w,. ,;woo The Minister carries out thie nsition wide developrn1:mt and supervision on the oil and natural gas business. The Business Entity that has obtained a Perrnit, Recommendation and Approval based on this Decree of the Minister is obligad to submit a peri(;dic report to the Minister. CHAPTER.V TRANSITIONAL PROVISIONS

Article 15 On the Licencing Or Recommendation or Approval which has been issued before this Decree of the Minister has been laid down is declared to remain in force until the expiry of the said licence or recommendation or approval. CHAPTER VI CONCLUDING PROVISIONS

Article 16 The policy in the form of the regulation of authority and the other guidelines which are considered necessary and are not mentioned in these Technical Guidelines will be regulated and laid down later on.

Article 17 This Decree of the Minister comes into force on the date it is laid down. Stipulated in Jakarta on November 3, 2000 THE MINISTER OF ENERGY AND MINERAL RESOURCES SIGNED PURNOM0 YUSGIANTOAO 000000000 CAFI 104/0ECEMBER 29, 2000