Idle Well Rules Will Soon Be Completed, SKK Migas Boss: Plus SMEs

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto. (Photo: Maria Trisnawati/VOI)

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto provided the latest updates regarding the formation of regulations for managing Pertamina's idle wells or abandoned wells that can be collaborated with contractor partners.

Djoko said he had met with the Director General of Legislation Regulations (Dirjen PP) of the Ministry of Law to discuss additional substance in this rule.

Previously, those who could manage idle wells were only collaborated with Regional Owned Enterprises (BUMD) and Cooperatives, now they will be added with Small and Medium Enterprises (SMEs).

"What used to be cooperation later through BUMD or cooperatives and coupled with SMEs, yes, Small and Medium Enterprises," said Djoko, quoted on Friday, May 23.

He added that actually this series is almost complete and the Ministry of Energy and Mineral Resources (ESDM) has also received a letter from the Ministry of Law.

On the other hand, Minister of Energy and Mineral Resources Bahlil Lahadalia has asked for the addition of SMEs to be able to manage idle wells with Pertamina.

"Hopefully this month will be finished," said Djoko.

Previously, the Ministry of Energy and Mineral Resources (ESDM) said PT Pertamina (Persero) would open a tender to find partners in working on 500 inactive wells or idle wells by 2025.

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 said the 500 wells to be tendered were mostly on land or onshore, and only 60 wells were located off the coast or off the coast.

"Pertamina has reported to the task force that they have opened data for cooperation in managing unemployed wells," continued Ariana.

At least 99 partners were invited to cooperate in managing these unemployed wells and only 39 partners showed their willingness to partner with Pertamina.

"The execution of the contract is still waiting for the regulations that we are currently preparing," he added.

Ariana said, the concepts of regulations that are being discussed by SKK Migas and the Ministry of Energy and Mineral Resources consist of cooperation for idle wells, production wells, idle fields, and also production fields.