SKK Migas Boss: Cooperatives Can Manage Illegal Oil And Gas Wells

Head of SKK Migas Djoko Siswanto (Photo: Antara)

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto revealed that his party opened up opportunities for cooperatives to manage illegal oil wells that have been carried out by the community.

Djoko said this was in accordance with the Oil and Gas Law which did not prohibit cooperatives from implementing the management of old oil wells and so far they have been illegally drilled by the public.

"Our oil and gas law allows this upstream oil and gas activity to be carried out by cooperatives, especially for old wells and carried out by the community illegally," said Djoko, quoted on Tuesday, November 19.

According to Djoko, the management of oil and gas wells by cooperatives is not new. This has been done at several well points in the Cepu Block with the results of production purchased by PT Pertamina.

Djoko said that currently SKK Migas continues to coordinate with the Coordinating Ministry for Economic Affairs regarding the management of old wells by cooperatives.

"As in Cepu, it is managed by cooperatives, then Pertamina bought the production results. Now we are revising which potential we can do to reactivate, coordinating with the Ministry of Economy," explained Djoko.

In his report to Commission XII, Djoko also said that illegal drilling is still one of the strategic issues that is a challenge and manages domestic upstream oil and gas.

According to him, SKK Migas and KKKS face illegal drilling, refinery and tapping which have the potential for oil loss of 8,000 BOPDs.

"Currently, the draft Presidential Decree or even raised with the PP is related to the management of old wells which are carried out illegally by the local community," said Djoko.