Government Approved People's Wells, SKK Migas Asks Pertamina Et Al To Complete KSO

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has asked the Cooperation Contract Contractors to immediately complete the People's Well Operational Cooperation (KSO). This is intended so that the oil produced from people's wells can be absorbed by the KKKS and increase the company's lifting achievements.

Head of the SKK Migas Program and Communication Division, Hudi D. Suryodipuro, revealed that his party had indeed encouraged the contract between PT Pertamina (Persero) and other KKKS to be immediately established with BUMDs that manage people's wells.

"So the point is that from us (SKK Migas), the KSO must immediately be initiated, what kind of operational cooperation should be carried out," he told the media crew, Friday, July 25.

After being absorbed by the KKKS, the oil will be included in the daily production achievement and included in the Work Program and Budget (WP&B) or the company's work plan and budget.

Previously, Deputy for Exploitation of SKK Migas Taufan Marhaendrajana said oil produced by people's wells could be sold to Pertamina on August 1.

"As of August 1, hopefully we can monetize the production of this community well to Pertamina," said Taufan, quoted on Tuesday, July 22.

Taufan said that people's wells can donate at least 10,000 to 15,000 barrels of oil per day to national oil lifting.

According to him, Indonesia is currently implementing a sense of crisis in terms of oil production so that the addition of this community well can become an asset and part of the country that can be monetized.

Furthermore, he added, Pertamina has internal procedures regarding people's wells, which not only need to be purchased for oil, but also provided guidance.

"Of course what is no less important is verification," he said.