Optimizing Idle Blocks, Ministry Of Energy And Mineral Resources Creates Policies For Contractors

Illustration (Photo: Doc. ANTARA)

JAKARTA - Optimizing potential points that are not being worked on (idle) continues to be carried out by the Ministry of Energy and Mineral Resources (ESDM). Most recently, the ministry has issued a policy for oil and gas cooperation contract contractors (KKKS) to quickly work on potential oil and gas working areas with idle status.

The policy is contained in the Decree of the Minister of Energy and Mineral Resources concerning Guidelines for Returning the Potential Working Area that is not being worked on in the Context of Optimizing Oil and Gas Production.

Director of Upstream Oil and Gas Business Development at the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources Ariana Soemanto in his statement in Jakarta, Sunday, said that the criteria for the working area (WK) of potential oil and gas, which are idle, include the production field which for two consecutive years has not been produced or there is a field with a plan of development (POD) other than the 1st POD which has not been carried out for two consecutive years.

In addition, another criterion is if there is a structure in the WK exploitation that has received a disclosure status and has not been carried out for three consecutive years.

"Against the potential oil and gas WK section, idle, efforts need to be made, it cannot continue to be silenced. Currently, efforts are being inventoried and optimization will be immediately taken," he said as quoted by ANTARA, Sunday, July 7.

According to him, there are at least four optimization efforts that can be carried out later.

First, KKKS is asked to immediately work on the idle potential WK section.

"Meanwhile, in the event that economic improvement is needed, it can be submitted to the Ministry of Energy and Mineral Resources through the SKK Migas or the Aceh Oil and Gas Management Agency (BPMA)," added Ariana.

The second optimization is that the KKKS is working on a potential WK section that is idle through cooperation with other business entities for the application of certain technology in a business manner.

Third, KKKS proposes the WK potential idle part to be further managed by other KKKS in accordance with the provisions of the laws and regulations.

Fourth, the KKKS returns the potential WK section that is idle to the Minister of Energy and Mineral Resources, taking into account obligations after the operation, the obligation to return upstream oil and gas data, and other obligations, to be further determined and offered to become a new WK in accordance with the provisions of the legislation.

"The four efforts are in accordance with the evaluation, plan, and timeframe recommended by the SKK Migas or the Aceh Oil and Gas Management Agency (BPMA)," said Ariana.

He added that the government continues to actively encourage increased exploration and oil and gas production.

The oil and gas block auction was made more attractive by improving contract terms, including the contractor's profit sharing can reach 50 percent from the previous 15-30 percent.

"The government can also provide upstream oil and gas incentives in order to support the economy of contractors," explained Ariana.