Provisions on the Utilization of and Sales Prices for Flare Gas in Upstream Oil-and-Gas Business Activities Redefined

The Ministry of Energy and Mineral Resources (“Ministry”) has issued Regulation No. 32 of 2017 on the Utilization of and Sales Prices for Flare Gas in Upstream Oil and Gas Business Activities (“Regulation 32/2017”) in order to optimize the utilization of any flare gas which is produced as a result of upstream oil-and-gas business activities, to reduce gas emissions and to bolster national energy security. [1] In essence, Regulation 32/2017 sets out a number of provisions across three major areas which pertain to flare gas generated through oil-and-gas business activities (“Flare Gas”), specifically: