Feeling Dismissed By Shell's Departure From Blok Masela, SKK Migas Will Strengthen Regulation

Deputy Chairman of SKK Migas Fatar Yani Abdurrahman. (Photo: VOI/Mery Handayani)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) expressed disappointment with Shell, the order to withdraw from the development of the Masela Oil and Gas Project. In fact, the government is considered to have missed Shell's departure. Deputy Chairman of SKK Migas Fatar Yani Abdurrahman explained that Shell's departure was a valuable lesson for the government. As is known, Shell has declared his resignation from the Masela Block development project in Tanimbar, Maluku in 2020. "We were missed when Shell, at that time we were the first to make and was very good in Indonesia in terms on its fiscal condition, he didn't apply it until the production happened," he told reporters, at Penang Bistro, Tuesday, November 15.

Fatar explained that the government was very disappointed with Shell's steps. In fact, with its big name, said Fatar, this company should have been able to continue its project in Indonesia, but instead came out in the middle of the road. "So, we hope that with the good terms and conditions, Shell, the big company should have been run, yes, in the middle of the road, he is exited, even though it is good," he said. Learning from the Shell case, Fatar said that in the future SKK Migas and other oil and gas regulators are making regulations that allow companies that participate in projects not to just come out before production runs. "I mean give barriers, don't go out. Until commercial production, we will make that rule. In the future, if you get incentives until the production is finished, you can't go out," he said.