Ministry Of Energy And Mineral Resources Arranges Mining Guidelines To Order Illegal Oil Wells

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) continues to finalize regulations related to the handling of community oil wells by formulating guidelines for good engineering practices or good mining practices.

This step aims to increase national oil production as well as curb the operations of illegal oil wells to become legal business entities, such as cooperatives or regional-owned enterprises (BUMD).

Acting (Plt) Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Tri Winarno emphasized that good engineering practices are fundamental technical principles that are widely recognized and applied in mining activities to ensure operational effectiveness, efficiency, safety, and sustainability.

It is necessary to make guidelines related to good engineering practices. Then the Oil and Gas Working Area (WK) can be expanded and K3S (Cooperation Contract Contract Contract Contract Contractors) can be incentives, and a joint cross-ministerial team and APH (law enforcement officers) can be formed to provide support for the production of BUMD oil wells or cooperatives," he said as quoted by ANTARA, Monday, April 28.

Tri stated that other efforts also needed to be made in controlling illegal community oil wells, including stopping the operation of illegal distillation or illegal refinery and community oil wells within the Oil and Gas WK and the oil and gas operation area.

Not only that, Tri said, verification is also needed of the potential increase in additional production and the sustainability of legalized community oil wells.

He added that currently regulations related to the management of community oil wells are still in the harmonization stage at the Ministry of Law.

During the meeting, Tri also highlighted a number of issues and negative impacts caused by the practice of illegal community oil wells.

Apart from not having a permit in accordance with oil and gas regulations, this practice is also not in accordance with statutory regulations related to oil and gas, environment, and safety.

"Reports of illegal drilling cases for South Sumatra alone reached around 100 cases per year," he said.

From the technical aspects and safety, illegal oil wells are often the cause of accidents. The operation is also not in accordance with the good engineering practice, and the oil produced does not meet quality standards because the distillation process is not appropriate.

In addition, this illegal practice also has an impact on social aspects and public security, such as limited formal employment opportunities, health problems, as well as potential social conflicts, crime, and drug abuse.

The Ministry of Energy and Mineral Resources identified several categories of community oil wells, including those outside the Oil and Gas Working Area (WK Migas), within the Oil and Gas WK, within the working area and in the contractor's operating area, as well as illegal refinery in the vicinity.

The Ministry of Energy and Mineral Resources said that the distribution of community oil wells was in South Sumatra (Musi Banyuasin), Aceh, Jambi, Central Java, and East Java, with the number in South Sumatra reaching more than 7,700 wells.