Regulation of the Minister of Energy and Mineral Resources No. 35/2008 on procedures for stipulating and offering work areas of oil and natural gas

1A PROCEDURES FOR STIPULATING AND OFFERING WORK AREAS OF OIL AND NATURAL GAS (Regulation of the Minister of Energy and Mineral Resources Number 35 Year 2008, Dated November 12, 2008) THE MINISTER OFENERGY AND MINERAL RESOURCES, 2. Government Regulation Number 35Year 2004 (BN No. 7137PJIfIB 22A-3JA and SO on) on Upstream Oll considering: and Natural Gas Business Activities (statute Book of the a. that in the frallle'NOl'k of enhandng andfacOltating the Republic of IndonesiaYear 2004Number 123,Supple- preparation, stipulation and offering of work areas of mentto S1atUte Book of the Republic c:JIndonesia Num- oil and nabJral gas as govemedin Regulation of the ber 4135) asalready amended by Government Regu- Minister of Energy andMinerai Resources Number 040 lation Number 34 Year 2005 (Statute Bookof the Re- Year 2006 on Procedures for Stipulating and Offering public of Indonesia Year 2005 Number 81,SIIIpplement Work Areas of OU and Natural Gas, It's necessary to to Statute Book of the Republic of Indonesia Numb@r revIeW Regulation of the Minister of Energy and Min- 4530); eraI Resources No. 040 Year2006; 3. Presidential Decree Number 187/M Year 2004 (BN No. b. that having regards letter a and in order to implement 7128piIf/fJ 11A) dated October20,2004 as already lt1e provision ofArtide4 d GovemmentRfgUlation Num- amended several times lind the latest by Presidential ber 35Year 2004 onUpstream Oiland Natural Gas Busi- Decree Number nIP Year2007dated August 28, 2oo7j ness ActivIties as already amended by Government Regulation Number 31 Year 2OU:>, it is necessary to 4. Decree of the Minister of Energy and Mineral Resources stipulate a regulation of the Minister rA Energy and Min- Number 1088 K/2C/MfM/2003 dated September erai Resources on Procedures for stipulating and Of- 17,2003 on TeChnical Guidelines on the Fostering, Su- fering Work: Areas of OB and Natural Gasi pervision, Regulation and COntrol over Upstream and Downstream OilandNatural Gas Business Activitiesj In vieN of: 1. law Number 22 Year 2001 (BNNo. 6696P/IJ//BS:l6A- 5. Regulation of the Minister of Energy and Mineral Re- 27A and so tJIJ)on Petroleum andNatural Gas (Stat- sources Number 0030Year 2005 datedJuly 20, 2005 ute Book of the Republic of Indonesia Year 2001 Num- on the Olganization and Working Arrangement of the ber 136, Supplement to statute Book of the Republic of Ministry of EN'!rgy and Mineral Resources; Indonesia Number 4152); Bus1ness News 7836J7-17-2009 6. Regulation. , •••. 2A

6. Regulation of The Minister of Energy and Mineral Re- 5. Business Entity shall be a company in the form of sources Number 03 Year2006 dated February 5, 2006 statutory bOdy whiCh runs business permanently, onGuideline andProcedures fgr Returning PartofWork continually and established in accordance with leg- Area which is not used by production sharing contrac- Islation in force as well as working and domiciled tors in the framework of Increasing the production of in the territory of the Unitary State of the Republic oil and natural gaSj of Indonesia. DECIDES: 6. Permanent Establishment shall be a business entity established and in the form of statutory body outside Tostipulate: the territory of the Unitary State of the Republic of THE REGULATION OFTHE MINISTER OF ENERGYAND MIN- Indonesia, which conducts activity in the territory of ERAL RESOURCES ON PROCEDUERS FOR STIPULATING the Unitary State of the Republic of Indonesia and AND OFFERING WORK AREAS OFOIL AND NAlURAL GAS. obliged to abide by legislation in force in the Republic of Indonesia. QiAPlERl GENERAL PROVISION 7. Tender for Work Area shall be a mechanism of the Artide 1 offering of work area whose area is prepared by the Referred to in this regulation as: Directorate General. L Work Area shall be a o;!rtdin arecs ill Indonesia's mining jurisdidion designated to exploration andexpk:,)ll:aOOn. 8. Dlrect Offering of Work Area shall be a mechanism of the offering of work. area whose area is proposed by 2 Open Area shall be a part of Indonesia's miningjuris- business entity or permanent establishment. diction not yet stipulated aswork area. 9. JOint StUdY snail De an aCl1Vfty executedJoinUy by lJusi- 3. Available WorkArea shall be work area onceoffered ness entity or permanent establishment andthe Direc- in tfmder for work areaor direct offering of work area torate General in the fraeework of direct. offering of but the Winner cannot be stipulated. work area by means of inventorying, processing and evaluating data to ascertain potential of oil and natural 4. Offering of WorkArea shall be a series of actIVities in gas. the framework of offering certain work area to busi- ness entities or permanent establishment to under- 1o Rid Document shall be a documentcontaining infor- take exploration and exploitation \n a work area In a mationabout tender for work area or direct offlCering tenderfor work areaor direct offering of work area. of work area. 11. Partldpatlng ..••• Business News 7836/7-17-2009 3A 11. Participating Document shall be a document sub- 16. Minister shah be the minister In charge of oil and natu- mltted by business @ntity pr (\@rman@nt esrab- ral gas busJne$S ad:ivities. Iishment to participate in tender for work area or direct offering of work area In accordance 17. Minister shaU be the mJnistry in charge of oil and natu- with the requirements stipulated in bid docu- ralgas business activities. ment.

18. Executive Boord shall be a business entity ~lJIi::oht:~:.1 12. Data shall be all facts, directives, indications and to control upstream business activities in the oil and information in the form of writing (character), natural gas sector. figure (digital), picture (anctl09), magnetic me- dia, documents, bitumen sample, fluid and other 19. PTPertamina (Persero) shall be a state-owned limited forms which are obtatned from general survey, liability company (PerserO) estabnsneo on me basis Of exploration and exploitation of oil and natural Government RegUlation Number 31Year 2003on the gas. Change fn the Status of State on and NarumlGas Mjn~ ing Company (PERTAMINA) into a state nmlted rlability 13. JointCooperation Contract shall bea production shar- company (Persero), ing contract or other contract of joint cooperation in the exploration and exploration, which rather benefit 20. Directorate General shaJl be the Directorate General in the State and the output is used maximally for the charge of oil and natural gas affairs. people's welfare. 21. Director General shall be the Director General in charge 14. Exploration shall be an activity intended to obtain in- of oil and natural business affairs. formation about geological condition to find and pre- dict oil and natural gas reserves in the stipulated work 22. Work Area Offering Team shall be a tam a!iSlgned to area. provide considerations in the framework of the offer- ing of work area. 15. Exploitation shall be a seriesof activities intendedto produce oil and natural gas from the stipulated work 23. Bfdding Team shall be part of the workarea offering area, consisting of drilling dnd cornpteuon ur well, teem Cf.ssignet1 to evaluate afd jUdge tender partici- development of transport, storage and processing fa- pantsin the framework oftender for work area. dlities for the separation and purification of oil and natural gas in the field as well as other supporting 24. Evaluating Team shall be a part of the work area ac.tMties. offering team assigned to evaluate and judge Business News7836/7~17-2009 joint .. , ., . joint study and tender participants In the frame- OiAPTERm work of the direct offering of work area. PREPARATION OFWORK AREA Part One OIAPTERU GBERAl POUCY ON THE OFFERING Of WORK AREA Artide4 Artfde 2 (1) The Director General shall prepare work areas to be (1) The Minister shall stipulate policies on the stipula- offered to business entitles or permanent establish- tion and offering of work areas of oil and natural ment, which result from openarea. gas. (2) The open area as meant In paragraph (I) shall result (2) Preparation, stipulation and offering of the work area from, among others: asmeant in paragraph (I! shall be done by the Direc- a. areas never stipulated as work area; tor General by payingattentionto consideration of the b. part of work. areawhichIs set aside on the basis of executive board. joint cooperation contract; c. work areas having joint cooperation contract ex- (3) The offering of work area as meant In paragraph (1) piring; shall bedonethroughtender for workarea and direct d. partof workarea never developed and/orbeing or offering of work area. once produced I whfch is; set aside on the bas~ of

recommendation of contractor; (4) In the framework of preparing, stipulating and offer- e. part d area never developed and/or once producecl, ing work area, the Director General shall stipulate a which Is set aside on the basis of request of the work area offering team with the members consisting MInister. d representatives of units withinministries, executive board and universities. PartlWo Preperation of Work Area in the Framework of Article 3 Offering Work. Area through Tender for Work Area The Minister shall stipulate pOlicies on the prepa- Artide 5 ration, stipulation and offeringof thework areas as meant (1) The preparation of work area as meant in Artide 4 in in Artide 2 paragraph (1), on the basts of technical and the frameworkof offering work area through tender emnomic c:onsJderations, risks andefficiency and prindp1es for work. area shall be done by the Directorate General of transparency, justice, accountability and fair business through technical andeconomic evaluation aswell as competition. date processing. Business News 7836/7-17-2009 (2) In order . . . . .. SA (2) In order to implement the technical, economic evalua- (2) The proposal of direct offering of work area as tion and data processing as meantIn paragraph (1), meant in paragraph (l) may onry be submitted to theDirector General may appoint other patties having open area not yet evaluated for reservation in the capabJJAy and expertise andjgrdata in aa:ardance with framework of tender for work area by the Direc- the provIsIOns of 1eg15iation. torate General. (3) Based onthe result c:I the technk::al and emnomic evalu- (3) The direct offering of work area for the recommended ation as well as data processlng as meant In para- area as meant in paragraph (2) shall be subject to graph (1), the Director General shan fonnulate: joint study first. a. bon:fets of work: areabyusing a grid system; b. tl!chnlcal procedures, mechanism and requirements (4) The recommendation about the the direct offering for the off«ing of work area; of work area for the open area as meant In Article c. model and basic prtMsIons r:I jomt cooperation eon- 4 paragraph (1) letter b, c, d and e may only be tract. done following the issuance of written approval with regards to reservation or termination by the (4) The Director General shallsubmit to the Minister rec- Minister. ommendotlon about the stipulation of work area to bE: offered to business entitles or permanent establlsh~ (S) Business entities or pennanent establishments may ment In accordance with the result of the technical recommend the direct offering of work area in the and econcrnlc evaluation aswei as data processing as availablework area to the Director General as long meantin paragraph (3). as the area has not been reserved again in the frCNlleWQrk of tender for workoreo by the Director- PartThree ate General. Preparation of Work Area Inthe Framework of the OfferIng of WorkArea through Ar'i:ide 7 Dtrect Offering of Work Area RecDnvnencIatio about the directdfering of work Artide6 area for part rI WOI1c. area never deVeloPed andlor cur- (1) The preparationof the work area as meant In Ar- rentIV oronc:E· prodtIo:d, which Is- set aside on the basis of ticle 4 in the fram~work of the off9ring l)f work ~f1(l)1lbae:torsand part ctwort< area never areathrough the direct offering of work area shall devefoped and/or once.produced, which Is set aside on be done by the Directorate Generalon the basJs of the basis of request of the Minister as meant in Article 4 proposal of business entitles or permanentestab- paragraph (1) letter d and e may only be submitted by lishment. business entities.

Busk1eSSNews 7836/7-17-2009 Acbde,8 ••• n 6A Artk:Ie 8 entities or permanent establishment have fl- (1) The recommendation aboutthe direct offering d work nancial capability to finance joint study, In the area as meant In Article 6 and ArtIcle 7 shall be sub- case of new business entitiesor pennanent es- mitted in writing to the Director General by enclosing tablishmentsj the roUowang requirements: 4. having human resources expef1enCfng In the neJd a. borders of the recommended open area or avail- of oil and natural gas; able work area In aexmdalll:e with grid guxJe and e. statement of readiness to give up guarantee tor not exceeding 8 (eight) grids; the Implementation of joint study; b. hrW report on geological potential d oiland nabJ- f. action plan of joint study and timeframe. ral gas, covering bl1ef historyof exploration activi- (2) In the case of the reqUirements as meant in paragraph ties, availability and access of data representing (1) being declared Incomplete, the recommendotion the recommended area, regional geology, petr0- shall be returned to business entities or permanent leum system and exploration COflC2Pl; establishments and shall not be recorded as re:oom- c. in the caseof the directofferfng of work area being mendation aboutthe direct offering of work area. recommended to part d the work areaasmeant in Artk:Ie "1 pcaragrap (1) letter d and, the recom- (3) Business entities or permanent establishments already mendation shall be aa:ompanled by estimated re- fulfilling the reqirements as meant in paragraph (1) serves, estimated production, field prodUdion plan shall be recorded ~ proponent of the direct offering and field economic study; of work area as from the data of receipt of recom- d. profileof business entities or permanent establish- mendation by the DirectorGeneral. ment, covering among others: 1. adivitIes of business line of the said business Artk:Ie9 entities or pennanent establishments; (1) In the case d other business entities or permanent 2. financial statement in the last 3 (three) years, establistunents submltUng proposalof thedirect offer- alreGdy ouditcd by registcrcd pubiicaa:ountants Ing of work area with the area covering 25% (twenty inaccordanCE with the provisions of h!gislatfon five percent) of the previoUsly recommended area In In force. In the case of the bustness entities or not later than 14 (fourteen) working days following permanent establishments have been estab- the receipt of theremmmendation fromthe business lished overthree years; entitlesor pennanent establishments asmeantin Ar- 3. certificate from prime bank domiciled In tide 8 paragraph (3), the recommended area shall be

Jakarta, which certifies that the business reserved tor tender for work area. Business News 7836/7-17-2009 (2) In the case ,," 7A (2} In the case of other business entJties or permanent rercomertdatbn of the evaluating team in not later than establishments submitting proposal of the directoffer- 14 (fourteen) working days as from the date of pre. ingof work. area with the areaCO\fE!ring 25% (twenty sentatlon. five percent) of the previously recommended area In not later than 14 (fourteen) working days following (4) Business elltltlei gr pemklnent estalM:;hrnents not. sub- the receipt of the recommendation from the business mitting the who\e documents 10 the period as meant in entities or permanent es;tablishrnents as meant in Ar- paragraph (3) shall be dedared resigning and the rec- tide 8 paragraph (3), the following recommending ommendation about the direct offering of Work area business entities or permanent establishments shall already submittedshan be declared null and void. be obliged to adjust theirarea to the recommendation of the first business entities or permanent establish- Article11 rneots, (1) The evaluating team shall evaluate the fulfillment of the documents as meant in Article 10 paragraph (3) Article10 and convey results of the evaluation to the Director (1) The evaluatfng team shall evaluate recommendation General. about the directoffering of workarea already fulfilling completely the reqUirements as meant tn ArtJcle 6 (2) Based 00 r@sult:ofi'M'JIDatinn hy tht:!evaluating team, paragraph (3). the Director General shall approve or reject the rec- ommendation about the directoffering of workarea. (2) In the framewor1c. of evaluating anddarifying the data submitted by the business entities or pennanent es- (3) In the case of the Director General approving the rec- tab\ishments as meant in Artide 8 paragraph (1}, the ommendation tlbout the direct offering of work area business entities or permanent establishments submit- as meant in paragraph (2), business entities or per- ting recommendation about the direct offi!ring of work manent est:ab'ishments shaD be obJjged to conduct joint area shal be oblige to make preservation before the study in the recommended areaJfieid. evaluating team. (4] TIte Pint srudy 5IlaIl De executed In d pr:rtx1or 8 (eight) (3) Following the presentation asmeant inparagraph (2), months and the pertod may be extended once for a me buslne>s entlUt:s Of permeneut estobltshments sub- maximum period of 4 (four)months. mitting recommendation about the direct offeringof Article 12 work area shall beobliged toCDnve{ CDmmittement to joint study, time frame of joint study and other mat- (1) In the framework of obtaining optimal andproper as we\1 as scientiflca\1y aCttluntabie results, the Diremrate ters which must be fulfilled in accordance with Buslness: News 7836/7-11-2009 G..ene@1 .••••

SA General may Involve other parties having capability and! complete joint study because the business entitiesor or expertises and/or data on the behalfof the Direc- pennanent establishments: torate General in the execution of jolntstudy. a. resign; b. are unable to complywith the requirements In ap- (2) All costs and risks arISing from the Implementation of provalOI'Jolnt study; or joint study shall be borne and become responsibility of c. reduce commitment to joint study or other causes, business entities or permanent establishments exeaJt- the approval of the direct offeringof workarea al- jngjoint study. ready issued shall be decared nulland void and the Directorate General shall be entitled to disburse (3) susmess emmes or permanent establishments and operational guaraoLt:t: dfKJ remit it Lu Utt= :>li::Ile cash other parties executing joint study shall be obliged to as non-tax state revenue. keep seaeq of the data used and produced In the joint studyin acmrdance with the provisions of legis- (4) In executing joint study, business entitles or perma- lation. nent establishments shall be obliged to report the progress ofJoint :>tudy to the Oil eOnl ate Genel dl pel i- Artide 13 odically or at anytime if necessary. (1) During the operationalperiod of joint study, business entities or permanent establishments shall be prohib- (5) Business entities or permanent establishmentsal- itedfrom building consortium or transferring or hand- ready securing approval of the direct offering of Ing over the approval or the direct orrenng or work work area may not recommend TIle dhecl oITelillY area to other business entities or permanent estab- of work areafor other new area until the joint study lishments. is completed. (2) Business entities or pennanent establishments execut- Article 14 Ing the direct Offering or work areashall be obliged to (1) In the case of buslness entities 01 permanent estab- give upoperational guarantee from primebankdomi- lishments submitting recommendation aboutthe direct ciled inJakarta as much as US$1,OOO,OOO (one million offeringof workarea being consortium andanyof the US Dollar) for the validity period of joint study and shall members of consortium resigning during the executiof be given up in not later than 14 (foiJrteen) working of joint study, other members of the consortium may daysas from the date of Issuance of approval or the continue the lmplemeniauon or joint study. directofferingof workarea. (2) In orderto continue joint study, the other members of (3) Business entities or permanentestablishments ex- consortium as meantin paragraph (1) shall beobliged ecuting the directofferingof workareathat could not to convey: Business News 7836/7-17-2009 a. statement..... 9A a. statement from the resigning member of COTIsor- Article 17 tium; and (I) The evaluating team shall evaluate result of joint b. statement: of readiness to continue joint study. study executed by business entities or permanent establishments, covering technical and economic

(3) Based on thesubmitted documents asmeant inpara- aspects. graph (2), the ~ C..eneral $hall oomuct ad- ministratiVe change retated to approval of the direct (2) Based on the result of evaJuaUOn as meant in para- offering of work area. graph (t), the Director General shallrecommend area of joint study to the Minister for stipulation as work Artide 15 area. (1) Business entities or permanent: establishments already securing approval of the direct offering of work area (3) The size of area of joint study which may be recom- asmeantin Artide 11 paragraph (3) shan be obliged mended to the Minister ror stipulation as wort<: area to enhance the quality of data andooIled data through shall not exceed () (six) grids for offshore areaand 4 geological, ~ ond!(K' geochemical surveys in (four) grids fur onshote area. the recommended area in accordance with the sub- mit1P.d mrnmitment (4) Business entitieSor permanent establishments ex- ecuting joint study shan be given a right to change (2) Thedata as meant in paragraph (1) may be colk!cted bid (right to match), in other busaness entities or directly by business entities or permanent establish- permanent establishment participating in the ten- ments executing joint study or tram general survey der for the di red offering of work area submitting conducted byotherpartjes in aa:omance withthe pr0- a higher bid. visions of legislation. (5) BusIness enlilies 01 permanent estztbllshments ex- Article 16 ecuting joint study failing to win the the direct of- Business entities eKCCUting joint study inwork area fering of th~ s:",id work: area c;hall give up the whole resulting from part d the areaas meantin Artide 4 para- collected to the Directorate General in not later graph (2) letter d and e shallconductactiVities, covering than 14 (fourteen) working days after the winner evaluation d reserves, predicting production growthand of the the direct offering in the said work area is plan of development of fiekl. announced. Business News 7836f7-17~2009 Article 18 . lOA Artlde 18 meant in paragraph (1), shall be submitted in not (1) In the case of joint study being executed by consor- later than the moment of delivery of participating tium of business entitles and/or pennanentestablish- document. ments and resultof the joint study beingfollowed up (3) The consortium agreement or agreement on partld- by tender for the directoffering of work areaandany pation of other parties as members of consortium as of the ronsortium members resigning and notsubmit- meant in paragraph (2) may not be nullified until the ting participating documents, the other consortium signingof joint cooperation contract. memberssubmitting participating documentshall con- time to have the tight to match as meantin Article 17 (4) In the event that business entities or permanent es- paragraph (4). tablishmentsexewting joint study, whichset up con-

sortium or involve other parties in the rnF!mber"'hip of (2) In the case of joint study being executed by consor- the consortium that fail to abide by the provision as tium of business entities and/or permanent establish- meantin paragraph (1), the granted right to match as ments and result of the joint study being followed up meant in Article 17 paragraph (4) shall be declared by tender for the direct offering of work areaand par- nulland void. ticipating document submitted by consortium members as partidpants r:l the tender for the directoffering being Artlde 2CJ more man one, rile graored right to mar.cn as meant In (1) stiJrtJng from the issuance of Clpprovdl uf direct olfer- Artide 17 paragraph (4) shall be declared nulland void. ing of work area to the tender for the directoffering of work area, majority shareholders of business entities Artlde 19 orpennanent establishmentsexecuting joint: study shall (1) Business entities or permanent establishments execut- be prohibited from transfering theJr majority shares or ing joint study which havecompleted joint study may taking otheraction manging the main controlling party set upconsortium or involve other parties in the mem- in the business entities or permanentestablishments bership of oonsortaum to participate In the tender for executing joint study. the direct offeringof work areaandshall have interest minimally accounung for Sl% (ftrty one pen.-ent) until (2) In the event that business entities or permanent estab- the signing of joint cooperation contract. Iishments executing joint studythat transfer shares or take other action as meant in In paraaraph (1). the (2)The consortium agreement or agreementon participa- granted right to match as meant in Article 17 para- tion of other parties as members of consortium as graph (4) shall be declared nul and void. Business News 7836/7-17-2009 CH8PTERJV. '-'-.J HA CHAPTER IV (2) In offering the work area as meant in paragraph STIPULATION OF WOR/( AREA (1), the Director General shall set up a work area Artide21 offering team consisting of tender team and ap- The Minlsetr shall stipulate work area to be of- praisal team. fered to business entitIeS or permanentestablishments on the basis of the rec:ommendation of the DirectorGeneral (3) The work. area offering team as meant in paragraph as meant m ArdCfe 5 paragrapt1 (4) ana ArtICle 17 para- (2J shallconSISt orrepresentatives OfunItswithin min- graph (2). istries andexecutive board, having the maintasks and fundlons as W@l1 as: rom~ in b"rl'lnicrl.I, emnomic, Artide22 legaland other fieldsIn accordance with the need, as (1) Before the work area as meant in Artide 21 is stipu- well asspecialists from universities in accordance wth lated, the Minister sllall consult with -governor over- the required oompetence. seeing jurisdisct:ion where the offered WO!k area is lOCated. Artlde24

(2) The consultation as meant In paragraph (1) shall be (1) The offering of work area through tender for Intende dto provide explanation and obtainInforma- work area and tender for the direct offerlna of tion about the offering of certain regions deemed po- work area shalf be done by the Director General tential to contain 011 and naturalgas resources to be- through: come work areas. a.announcement of work area through printed me- dia, electronic mediaand other media; and (3) The consultation as meant In paragraph ('2.) sllClll be b. promotion of work area. done by the Directorate General. (2) In the announcement and pmmotlon of work areaas Q-lAPTERV meantin paragraph (1), the Director General may ap- OFFERING ORWORK~ point other partieshaVing capability and expertise in PartOne accnrdance with the provisions of legislation. General Artlde23 Part Two (1) The offering of work area as meant InArticle 21 shall Procedures for Tender for Work area andTender for be done bY the DirectorGeneral through: The direct offering of Work Area a. tender for workarea; and/or Artide 25 b. tender for the direct offering of work area. (1) Tender for the work area shall be applied to: Business News 7836/7-17-2009 a.the ..... 12A a. the work area already stipulatedby the Ministeras are shel be obliged to buy bid doaJrnent in accordance meant in Article 21, which is prepared by the 01- with the interested work area. rectorate General as meant in Article 5 paragraph (4); and (2) Business entities or permanent establislmlents al- b. available work area ready buying the bid document as meant In para- graph (1) shall be recorded by the Directorate Gen- (2) In the case of the tender for available work area as eral as prospecttve participants of work area or par- meant in paragraph (1) letter b, modeland basic pr0- ticipants of tender for the direct offering of work vision of joint cooperation contract already stipulated area. shall apply, unless otherwise stipulated by the Minis- ter. (3) In the case of prospective participants of tender for work area or participants of the direct offering (3) Tender for the direct offering of work area shal be of work area establishing a consortium, each mem- applied to work area already stipulated by the Minister ber of the consortium shall be obliged to buy bid as meant in Artide 21, which constitutes result of the document. joint study asin ArtIde 17 paragrctph (2). ArtIde26 Artide28 (l) In order to offer the work areaasmeant in Artide 25, (1) In «he case of prospective participants of tender for the Director General shan prepareand issue bid d0cu- work area at participants of tender for the direct of- ment foreveryworkarea .which wnl be offered. fering of work area as meant in Artide 27 palagraph (2) penning to continue their partldpation as partld- (2) The bid document as meant in paragraph (1) shall pants of tender for work area or participants of tender contain at least: for the direct offering of work area, the participants a. tender procedure; shall beobliged to give up to the offeringteam partici- b. geological information and JX)lErltia1 d oiland natu- pantdocuments consisting of: ral gas (geological synopsis); a. application form already filled completely and buth-

c. reserves and estimed production of oiland natural fullyand signed by executive director or anybody gasjand authorized by executive director: d. concept of joint cooperation contract. b. aetioo and budgetaJy plan for 6 (six) years of ex- ploration period, covering mmmitment for thefirst Artidc 27 three yeat$ of expIof'ation period (fhm o:Jmmitment) (1) Business entities or permanent establishments that and commitmentfor the secondthree yeats ofex- constituteprospective participants of offering of work plorationperiod; Busines.c; News 7836/7-17~2009 c. commitment ........ 13A c. commibnent to seismic survey, covering kind, plan e. statement of readiness of prospective partfdpants of quantitatiVe \ane a'seismic survey and/or planned of tender for the work: area or participantsof ten- location of wildcat well on the basis of results of der for the direct offering of work. area to pay b0- QeOJoQIcaI and QeOphysjcs surveyand technical JUS- nuses directly, which may not he dl"'rQF!d "'0; np- tification (engineering) apptied In a technical and erationcost of joint oooperation cxmttad in Indo- montagereport, oovering at least aspectof petr0- nesia; leumsystem and potential of resources and/or hy- f. statement regarding agreement on the establish- drocarbon reserves conducted in aco)rdanc:e with ment of consortiumand appointment: of opercJtoJ; proper technical norms on the ~jS" of suistabJe which is binding andC()uld not be nullified until the and supporting data by mentioning sources and joint cooperation contract is signed if the consor- endosing evidence of the collection; tium is dedared as winner, in the case of prospec- d. Finandal capability to finance the action plan for tiVepartidpants of tenderfor work area or partld- thec.ommitrnent in thefirst three years of explora- pants of tenderfor the direct offering of work area tion period (firm commitment) and other finandal establishing a consortium. obligations on the basis of the joint cooperntion g. statement certifYing that business entities or QJntTact, which are shown by: permanent establishments being prospective 1. annual finandal statement of the business enti- participants of tender for work area or par- tles or permanent establishments in the last ticipants of tender for the direct offering of three years, alreadyaUOited by pUIlUC accoun- work area accept anti are ready to sign and tant; implement the joint cooperation contract as 2. financial statement ofthefr principal <XJmPanies, meant in bid document if they are declared as already audited by pubficacoountants, in thecase winner; of the business entities or pennanent establish- h. copy of the purchasing form of bid document; ments being subsidiaries; or i. cnpyof the deed of establishment ofbusiness enti- 3. certificate from prime bank domiciled in ties or permanent establishments being prospec- Jakarta, which certifiE'" that proo;.pfrlivp par- tive participants of tender forwork area nd partici-

ticipants of tender for work area or partid~ pants of tender for the direct:offering of work area pants of tender for the direct offering of work acting for themselves or consortium, legalized by area have financial capability to finance the notary/authorized official; action plan for the firm committment in the j. letterof support from prindpal company certifying first three years of cxplorntion period and that the principal oc:ompany supports the realiza- other financiaJ obligations on the basis of joint tion of the commitment; cooperation contract; Ie. original bid guarantee; Business News 7836/7-17-2009 1.lettg[ •.... 14A I. letter r:l statement from prospective participants of Article 29 tender for work area or participants of the direct (1) The partidpating documents as meant in Artide 28 offering of work area to abide by result of tender shall be made induplicateand inserted in a dosedand announced by the government; sealed envelope and given up by prospective-partici- m. other requirements as stipulated in bid cocument, pants Oftender for wor1<. areaor partidpants Of tender for direct: offering work area to the workarea offering (2l In the case ofUle would-be offered work area result- teamat the moment in the place and address alreadv ing from part of the work. area meant in Article 4 stipulated in the bid documents. paragraph (2) k!t:terd ande, the submitteddocuments as meant in paragraph (1) letter b, c, and d shall not (2) The deadline of delivery of the participating document apply and be repJaced by the following doaJments; as as meant in paragraph (1) shall be asfolkms: a. action and budgetary pfan of rlP.II~tof field, <:I. in the case of tender for work area, marimaly among others, addition to wells, workoverand/or 120 (one hundred and twenty) calendar days as development of production fadIitIes and/or advanced from the date of announcement of tenderfor work production phase (EOR) as well ascommitment to area; oommencement of production; b. in the caseof tender for the direct offering of work b. results of technical and c:oonomlc evafuation on the area, maximally 45 (forty fwe) calendar days as basis of cash flow otthe plan of development of from the date of announcement of tender for the field based on propertechnical nonnson the basis direct: offering of work area. of the relevant data by mentioning their sources (3) Based on technical, economic considerations and in and enclosing evidences of the collection; the framework of ensuring the successful offering of c. financial capabilitY to Implement the aetfon plant work erea, the Dilt~ctol General may recorrvnend the on the basis of joint cooperation contract,whichis extension ofthe deliveryperiodof participating docu- shown by: ment asas meant in paragraph (2) to the Minister. 1. annual financial statement of the said business entitiesalready audited by pUblic acx:ountant in (4) Prospective participants oftender for wade. area or the last three years, or partidpants of tender fOr dIreCt ottering war/( areaal- 2. certificate from prime bank domiciled in ready giving up the participatingdocumentas meant Jakarta, which rertiflec;. that prospective par- in paragraph (1) shall be(Jiven evidence of rE;Ceipt from tidpants of tender for workareaor participants the Directorate General as a legitimate evidence of

of tender for direct offering work area have receiptand shal be recorded as partidpants: of tender financial capability to financethe whole action for work area or partidpants of tender for the direct plan. offering of work area. Business News 7836/7-17-2009 (5) ProsoectiY'e ., •.. lSA (5) Prospective participants d tender for work area or (3) Results of the opening and examination of participants of tender for direct offering work Clrt:el nul participating document as meant in para- gMng upthe participating document or giving up par- graph (l) shall be written down in an account tJdpatIng document but not abldJng by me provl5Ion on and signed by members of tender team that the stipulated deadline, place andaddress asmeant in are present. paragraph (I) shall be declared nullaspartidpants of tenderfor work area or partidpantsof tenderfor the Article32 directoffering of work area. (1) Final evaluation of the participating document in the execution of tender for work area shall be done Article 30 by tender team and shall be attended by minimally Partldpating documents already gived up by par- a half plus one of the total membersof the tender ticipants of tenderfor workareaor pattidpants of tender team. for direct offering of Work area as meant in Article 29 shaD become confidential doaullents belonging to tile state (2) The final evaluation as as meant in paragraph (1) and may only be opened for other parties for justifiable shall be based In criteria for technical evaluation of purposes in iKCOfdance with the provisions of legislation. the commitment to the first three years of explora- tion period (firm commitment), finacial evaluation Artide 31 and evaluation of performance of participants of (1) The opening and examination of participating docu- tender for work area. mentInthe execution of tenderfor workarea shall be done by tender team on the presence of minimally 5 (five) members. Artide 33 . ( To be continued ) (2) In the case of the participating document being not mmpletefollowing the opening andexamination. par- tidpants gf thetenderfor workareashall declare null and fllther ~IUMinn shall nnt be P,xecuted. -===( R )===-- Business News 783F17-17-2009 24A PROCEDURES FOR STIPULATING AND OFFERING WORK AREAS OF OIL AND NATURAL GAS (Regulation of the Minister of Energy and Mineral Resources Number 35 Year 2008, Dated November 12, 2008) [Continued from Business News No. 7836 pages lA-SA] Artide 33 (firm commitment), financial evaluation and evalua- (1) The opening and examination of participating docu- tion of performance of partidpantsof tender for the ment during the execuUOn of tender far lhe dlra.t of- direct offering of work area.

fering of Workarea shall be done by appraisal team (3) Final evaluation of tenderfor the direct offering etwork on ttl<;: presence of 5 (five) mcmbets at the minimum. area In WOrk area resulting frOm partortile work area (2) In the case of participating documentbeingfound in- as meant in Article 4 paragraph (2) letters d and e complete following the D~nlng and exam.ination, the Shall be based on CJ1t8ta (or teetmlall evatuatlon, n- participant of tender for the direct offering of wotk nandalevaluation andthe amountof productton cost area shall be declared null andfurther evaluation shall and/or ev<lIUClLiorJ uf performance of business entities. not bedone. (3) Results of the opening and examination of partidpat- Part Three ing document asmeantin paragraph (l)shaU be writ- DirectOffering of Work Area ByPTPertamlna (Persero) tendown in an ac:countand signed by the present: mem- Article 35 bersof the appraisal team. (1) PT Pertamina (Persero) may recommend the direct offering of work orca to the Director General for: Article 34 a. area never stipulatedas work erea: (1) Final evaluation of participating document in the ten- b. pott of work area set aside on the basis of joint der for the direct offering of work areashall be done cooperation cont:rnct; by appraisal team and attended by minimally a half c. work area having joint cooperation contract expir- plusone of the total members of the appraisal team. (2) The final evaluation as meant in paragraph (1) shall ing. be nasec on aiteria for technical evaluaUun uf corn- (2) 1"h$ recommencbtion about the dirE'd: ~ring of WOI1c. mitmentin the first three yearsof exploration period area by PTPertamina (Persero) asmeantin paragraph Business News 7838/7-24-2009 (1) ..... 2SA (1) may be approved as long as the share of PT criteria fortechnical evaluation of the firm oomrnlttrnen, Pemlmina (Per5erO) i5100% (hunched peJCCf1t) owned finonckll evllluiOtion and performance evealuation, the bythe State. Director General shall recommend the stipulation of PT Per1:amine (Per$Cro) as the executor of exploration Artide36 andexploitation in the saidworkarea to the Minister. Provision on procedures for submitting recommen- dation about the direct offering of work area, stipulating Artide 39 work area through joint study, preparing bid document,. PT Pertamina (Persero) already stipulated as: t:h@ and conveying partidpating document for PTPertamina executor of exploration and exploitation in the work area

(Persero) shall follow the provision as govemed in Artlde as meant in Article 38 paragraph (2) shall be prohibited 6, Article 8, Article 10, Article 11, Artide 12, Article 13, from transferring Its share dUring the period of joint c0op- ArtIcle 15, Artide 17 paragraph (1), paragraph (2), dan eration oontrad. paragraph (3), Article 21, ArtiCle 22, Article 27,Artlde 28, Article 29 and Article 30. CHAPTER VI BID GUARANTEE AND OPERATIONAL GUARANTEE Artide37 Artlde40 follOWing the receipt of partidpating document (1) Partidpants of tender for work. areaor participants of from PT Pertilmlno (Persero), the appraisal team ~hall 0Jll"Il tenderfor the direct offering of work. areaasmeant In and examine the participating document In accordance with Artide29 paragraph (4) shall be obliged to giVe up bid the provision of Article 33 and final evaluation as. meant in guaraantee accounting for 100% (one hundred per- Artide34. cent) of the bid value ofslgnature bonus upongiving up partidpatlng docUment Article 38 (2) The validity period of the bid guarantee as meantIn (1) Based on result of the fin3l1 evaluation by t:hf>., appraisal paragraph (1) shall be 6 (six) months as from the teamas meant In Article 34 the Director General shall moment of delivery of partidpating dooJment and may approve or reject bid of PT Pertamina (Pf>~m). be extended in accordance with the need related to (2) In the case of the bid of PT Pertamina (Persero) as the exeaJtionoftender for work area ortender for the meant in paragraph (1) already mmplying with the direct offering of work area. (3lThe . Business News 7838/7-24-2009 Z6A (3) The bidguarantee as meant in paragraph (2), shall be Article 29 paragraph (4) shall be obliged to give up In the form of a guarantee from prime bankdomiciled operational guarantee accounting for: in Jakarta, which certifies the readiness of the said a. 10% (ten percent) of the total firm commitment to bank to guarantee and provide funds amounting to exploration in the first three yearsof the explora- 100% (one hundred percent) of the bid value of signa- tion period, or minimally U5$1,500,OOO (one mil- ture bonus of partidpants of tender for work area or lion USdollar) for the area as meant in Article 4 participants of tenderfor the direct offeIing of Wilayah paragraph (2) letters a, b, and c; or Kerja. b. 10% (ten percent) of the budgetof the whole rom- (4) In the case of a participant of tender for work areaor mltrnent to action plan for the first two years of participant of tender for the direct offering of work exploration period or minimally US$1,OOO,OOO (one area as meantIn paragraph (1) resigning or declared million US Dollar), which is bigger, for the area as as winner of tender for work area or tender for the meant in Article 4 paragraph (2) letters d and e. directofferingof workareabeing unreadyto sign joint (2) The operational guaranteeas meantin paragraph (1)

cooperation contract, the participantshall be deemed shall be given up to the Director General in not later failing to win the tender for work area or tender for than the moment of signing of joint cooperation ron- the directoffering of work area and the DirectorGen- tract. eral shall be entitledto disburse bid guarantee and the (3)·The validity period of the operational guarantee as guarantee shall be remitted to the state cas as non- meantIn paragraph (1) lettera shall be 3 (three) Years tax state revenue. followingthe signingof joint cooperation contractand (5) Unless oontractor pays signature bonus up to 30 (thirty) the validity period of the operenonat guarantee as calendar daysas from the signing of joint cooperation meant in paragraph (1) k&ter b shall be 2 (two) Years contract, the DirectorGeneral shall be entitled to dis- from the dateof Signing of joint cooperenon rontraet. burse bid guarantee and the guarantee shall be remit- (4) The value of the operationalguarantee may be sub- ted to the state casas non-tax state revenue. tracted gradually In accordance with annual working programon the basisof notification by the executive Artide41 board to the Director GenerCiI. (1) Partidpants of tender for work areaor participants of (5) Participants of tender for work area or participants of tenderror the direct offenng or work: areaas meantIn lender for the dlrect offering of work area already Business News 7838/7-24-2009 signing ..... 27A signing joint cooperation contract that are unableto a. commltrnentto seismic survey, covering kind, plan fulfill their obligation to execute commitment to the of orbit and quantity of seismic survey, and first 3 (three) years of exploration period (finn com- b. cornmjbnent to the number of new field wildcatwell mitment) or commitment to the first two years of the and planned locations thereof on the basis of re- exploration period and other financial obligations on sults of geological and geophyslc evaluation and the basis of joint cooperation contract, the Director technical justifieauon In compliance with proper Genefal, based on notification from the Executive Board tedmical norms, based the suitable andsupporting shall disburse the operanonal guarantee as meant In data, wherein the whole data andlnrormatlon are paragraph (1) and the guaranteeshall be remitted to presented in a montage covering at least aspects the SOIte cash asnon-tax state revenue. ct ~m system and potential (;( I-esQUKeS and! or hydrocarbon reserves, Including the rationality of tinandng. Q-IAPlERVll (3) The technical evaluation as meant in paragraph (2) CRITERIA FOR EVAWAllNG TENDER FORWORK AREA shall constitute the prime evaluation in ~ining the MID rating on the basisof rational and applicable bid. ThE DIRECT OFFERING OF WORKAREA (4) The financial evaluation as meant in paragraph (1) letter Article 42 b, shall be applied to:

(1) Filialevaluation of partidJXlnts of tender for work orca a. the amount of signature bonus; and or partidpantsof tenderfor the direct offering of work b. finandal capabilityof executing action planfor the area and work. area as meont in Artide 1- paragraph firm commitment in the first: three years of the ~x­ (2) letter a, b, and c shall be based: ploration period and other financial obligationson a. ted1nia:l1 eYi!lluation of commitmcntto the first: three the basis of joint cooperationcontract, ~ in years ri the exploration period(finn commitment); the annual financial statements of the said busi- b. finondol ev81uotionj and ness ~ntities or ~anent establishments in the c. evaluation of perfonnance of business entities or lastthree years or finandal statements of their prin- permanent establishments. cipals already audilP.d by public. aa:XJUntant or based (2) The technical evaluation as meant in paragraph (1) on certificatefrom prime bankdomidlerl in Jakarta, letter a shall cover: which certifies that the participants of tender for work . Business News 7838/7-24-2009 28A work. area or participants of tenders for the a. commitmentto seismic survey, oovering kind, plan of direct offering of work area have funding ca- orbit and quantity of seismic survey; or pability of financing the work action plan for b. commitment to ne\Y field wildcatwell and the planned the firm commitment in the first three years location thereof on the basis of result of geological of the exploration period and other financial and geophysic evaluation and technical justiftc:ation (en- obligations on the basis of joint cooperation gineering), which is applied in a montage aoo executed contract; in accordance with proper technical normson the ba- c. the budget of firm commitment in the first three sisof the suitable and supporting data. years otthe exploration period. (5) The financial evaluation asmeant Inparagraph (4) shall Artide44 constitute the second evaluation In determining the (1) Analevaluation of partidpants of the directoffering of rating. work area In part of the WOrk area as meant In ArtIde (6) The evaluation of performance of business entitiesor 4 paragraph (2) letter d and e shall be based: permanent establishments as meantin paragraph (1) a. teehnJc:a1 evaluation; letter c shall be applied to: b. financial evaluation; a. experience in tI'Ie allsector; and c. production WS1:i and b. compliance to legislation in force in Indonesia, for d. evaluation of performance of business entities. companies onceoperating in Indonesia. (2) The technical evaluation as meant in pdragraph (1) (7) The performance evaluation as meant In paragraph letter a shall be applied to action plan for the firm com- (6) Shall oonstitUte the third evaluation Indetermining mitment in the n~"t two years, supported by evalua- the rating. tion of reservoir, technical justification and economic

cmtllysis based on cash now of field development on Artide43 the basisof the proper and right technical nonns. Exduded rrom the provision as meant In ArUde (3) The technkel evaluation es meant in pBmgraph (2) 42 paragraph (2), having regards to the need for shall constitute the prime evaluation in determining exepedltlng explOratIOn In an offered work Brett, the tech- riOting on the basis of retional and applicable bid. nical evaluation asmeant in Artide42 paragraph (1) letter (4) The financial evaluation as meantinparagraph (1) letter a,shall be applied to; b shall be appllcd to: Business News 7838/7-2+2009 a. signature .... 29A a. sJgnature bonus;and work area or participant of tender for the direct offering d b. finandlJI capability d ~upporting the plan cI devel- workarea being onlyone, the partidpant ~hall I'd: ~ stipu- opment of field.. reflected In annual financial state- lated autDrnatically ascandidate for the w;nnerin the ten- ments mnsi~ng of OlI"JlOrate balanc:e s.heet and der for work area or the direct offering of work area un- profit-loss report: already audited by public aa:oun- less the particlpant complies with theaiteria for theevalu- tant ation asmeant in Article 42. Article 43. or Artide44. (5) The financial evaluation as meaot in paragraph (4)shall constitute the seoond evaluatron In determinlllQ the OiAPTERVIn rating. STIPULATION OFEXECUTOR OF EXPlORATION OR. (6) The IXOdUdian costasmeantin paragraph (1) letter c EXPlOITATION INWORK AREA shall bedenominated In US$/balTel fur petroleUm and! PartOne or US$lMlflion British Thermal Unit (MMBTlJ) for natu- Stipulation of WInner of Tender for Work Area tat gas. Artide46 (7) lhe evaluation ofthe productfon oost: asmeant in para- (1)Based on resutt oftheexaminaDon ofj,arodpating d0cu- graph (6) shatl constitute thethirdevaluation in deter- mentasmeant in Article 31 and the final ewluation mining the rating. as meant in Artide 32, tile tenderteam shaU submit (8) Theevaluation of performance of business entities or the sequence of rating of candidates for the winner of permanent estabUshment asmeant in paragraph (1) tender for wen: area to the Director General. letterd shallcover: (2) Based on the sequence of rating of candidates for the a. experienceJn theall neId; and winner d tender for workarea as meant inparagraph b. comp\iance to ~ '" force mIndonesia, for (t), the DireCtor Genera( shall sUbmlt rec0mmenda- companies once operating In Indonesia. tion to the Minister to stipulate the winner of tender (9) The performance evaluation as meant in paragraph for the wor1c area. C8} shall constitUte the rourth evaluation In determin- Ing the rating. Artide4f7 (1) Based on the stipulation of the Minster as meant in

Article 45 Article 46 paragraph (2), the Director General sha" In the case of the partidpant of tender for the submit a written notif\catlOn to the winner of tender Business News 7838n~2+2009 for .. I . ' 30A for the work. area as the executor of exploration and express their Interest in the work area, the appraisal exploitation inthe work area. team shall conduct the final evaluation as meant In (2) In notlater than 14 (fourteen) worlQng days following Artide 42, ArUde 43, Artlde 44 and Articfe 45 for the the receipt of notification as meantin paragraph (1), bids submitted by participants oftenders for the direct the winner of tender for work area shall submit a let- offering of work area executing joint study inaccor· ter of readiness to tuttiH the whole commitments in danre with the submitted participating document as partidpating document, including approval of conrept meant in ArtIcle 29. of joint cooperation contract to the Director General. (2) Based on resultof the final evaluation by the appraisal (3) In the case of the winner of tender for workarea not teamas meant In paragraph (1), the Director General submlttlngtelter fA' readiness or resigning in not later may approveor reject recommendation d participants than 14 (fourteen) working days as from the date of of tender for the direct offering of work area that receipt of the notiftc:ation,as meant in paragraph (2), execubJe joint study. the Director General shaD reamJmend the Minister to (3) In the case of result of the flnal evaluation by the ap- stipulate thewinner d thesubsequent rank asthe win- praisal teamas meant in paragraph (1) already com- ner of tender for wor1c. area. plying with the criteria for evaluationas meant in Ar- (4) Unles the the winner of the subsequent rank in the tide '12, ArtIde 43, Article44 andArticle 45, the Direc- tender for the work area asmeant In paragraph (3) is tor General shall reconvnend the stipulation of partici- available, the work area shall become availabte work pants of tender for the direct offering of work area area. executing joint study as the executord expJoratJon and exploitation In theworkarea to the Mi\1ster. Part Two Artic:Ie49 Stlpuiation of Winner of the Direct Offering of Work Area (1) In the event that in nat later than 4S (forty five) cal- Artide48 ender days asfrom thedated announcement of the (1) In the event that In I'IGt Jaterthan 45 (forty five) cal- direct offering of work area as meant In Article 24, ender days as from the date of announcement of the none of business entities or petmanent establishments direct offering of work area as meant in Article 24, express their interest In the work area, the appraisal none of business entitlesor permanent establishments team shall conduct the final evaluation as meant In Business News 7838n-2+2009 Article 42" . . • , 31A

ArtIcle 42, Article43, ArtIcle 44 and Article 4S for the area having the highest value as the winner of tender bidssubmitted by the respective participants of ten- for the direct offering of work area to executeexplora- ders for the direct offering fAworkareain accordance tion and exploitation In the work area to the Minister. withthe submitted participating document. (5) In the event that the executor of joint studyalready (2) In the event that the result of final evaluation of par- completing joint study In a specified area does not tidpatfng document submitted by particfpants of ten- partfdpate in the tender for the direct otrerlng of work der for the directoffering of workareaexecuting joint area in accordance with the provision of this regula- study Islower than bid of other participants of tender tion, the right to secure thearea through right to matI:h for the direct offering of work area interested in the the highestbid shall be null legally. said work area, the participants d tender for the di- rect offeringof work area executing joint study may ArtideSO exercise the right to match as meant in Artide 17 (1) Based on the stipulation of the Minister as meant in paragraph (4) with the provtsion that the bid is mini- Article48 paragraph (3), ArtIde 49 paragraph (3) dan mally equivalent to the highest bid for the technical paragraph (4), the DirectorGeneral shall submit writ- and financial oommibnents. ten notification to the winner of the direct offering of (3)In the event that participants d tender for the direct wortarea. otfering of work area executing joint studybeing ready (2) In not later than 14 (fourteen) working days as from to revise the bidas meantin paragraph (2), the Direc- the date of receipt of notifIcatiOn as meant in para- tor General shall recommend the stipulation of partici- graph (1), the winner of tender for the direct offering pants of tender for the direct offering of work area of work area shall convey letter of readiness to fulfil executing joint study as the winner of tender for the the whofeoommitment in participatingdocument, 'n- directoffering of work area to execute exploration and dueling concept of joint cooperation (Dntraet to the exploitation inthe workarea to the Minister. Minister. (4) In the event that the participants of tenderfor the di- (3) In the caseof the winner of tender for the direct of- rect offering of work area executing joint studyare not fering of working area not tonveying letter of readi- ready to change the bid as meant In paragraph (2), ness or resigning In not laterthan 14(fOurteen) work- the Director General shall recommend the stipulation ing daysas from the date of receiptof notiftcationas of partjdpant of tender for the direct offeringof work meant in paragraph (2), the Director General shall Business News 783Sn-2+2009 mcnmmend.... , 32A recommend thestipulation of partidpant of tender for application of coordinate border system in the tenderfor direct offering in the subsequent rankas lite winnerof work area and the direct offering of work area already tender for the direct offering of work area to the Min- approved before the stlpulatlon of this regulation shall re- ister. main effective and the provisions of this regulation shall (4) In the-case of the winner of tender for direct offering applyto procedures for the offeringthereof.

of work area in the subsequent rank as meantin para- graph (3) being not available, the work area shall be- Q-1APTERX come available work area. CX>NQ.lJSION Article53 Artide 51 With the enforcement of this regulatiOn, Regula- The right owned by partidpants of tender for the tion of The Minister of Energy and Mineral Resources Num- direct offering of work area executing the joint study as ber 040 Year 2006 regarding Procedures for Stipulating meantin Artide 49 paragraph (2) shall be declared void in and Offering work Area of Oil and Natural Gas shall be the case of: revoked anddeclared nullandvok:I. a. the participants being declared null as participants of tender for thedirect offering of Work area as meantin ArtideS4 Artide 49 paragraph (5); The regulation shall come into force as from the b. the participants of tenderfor the direct offering of work date of stipulation. area executing joint study being stipulated as winner but notconveying letter of readiness to fulfill the whole Stipu~inJakarta commitments In participating document, inclUding the OnNovember 12,2008 approval of concept of jointcooperation cootraet as gov- THE MINISTER OF ENERGY AND MINERAl RESOURCES erned in Article 50 paragraph (2). sgd PURNOMO YUSGIANTORO Q-IAPTERIX TRANsmONAL PROVISION Artide52 With the enforcement of this regulation, the -===(R)==~ Busir~ News 7938/7-24--lOOQ