The Masela Project Is Still Stalled So The Reason For The Minister Of Energy And Mineral Resources To Repoint Dwi Soetjipto To Be The Head Of SKK Migas

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif inaugurated a number of officials and inaugurated the Head and Head of the Special Task Force for the Implementation of Oil and Gas Upstream Activities (SKK Migas).

Despite replacing several SKK Migas officials, Dwi Soetjipto still serves as Head of SKK Migas.

Arifin said that the reason for the re-induction of Dwi Soetjipto as Head of SKK Migas was not without reason.

According to him, the completion of the Abadi Masela project is not yet a consideration for defending Dwi as Head of SKK Migas.

"So far, the programs are still with Pak Tjip, yes, Masela. We have to finish it immediately," he told the media in Jakarta, Monday, December 5.

Apart from Masela, there are still several other projects that have not been completed during Dwi Soetjipto's tenure, such as Indonesia Deepwater Development (IDD) and Tangguh Train-3 in Bintuni Bay, West Papua.

"There is a history that knows from the start so it is his job to complete it," continued Arifin

Just so you know, the Abadi Masela project has not been completed. The reason is, Blok Masela was abandoned by one of its operators, Shell Upstream Overseas Ltd and is expected to run again starting in 2023.

As previously reported, oil and gas company (Migas) from China, PetroChina Company Ltd. to a Migas company from Malaysia, Petronas is interested in entering the Masela Block located in the Tanimbar Islands Islands, Maluku Province, Indonesia.

In his remarks, Arifin asked the leadership of the Ministry of Energy and Mineral Resources and the Special Task Force for Upstream Oil and Gas Activities (Migas) to immediately commit to accelerating national oil and gas production.

This acceleration is also a support for the energy source of the transition before being replaced by new and renewable energy (EBT).

"I ask SKK Migas together with Cooperation Contract Contract Contractors (KKKS) continue to strive to increase national oil and gas production, among others, by drilling development wells, massive workover and well service activities and making various efforts and breakthroughs so that oil and gas production can achieve the target of the State Revenue and Expenditure Budget (APBN) or even exceeding the target," said Arifin.

Arifin said the government has an oil production target of 1 million barrels per day and gas production of 12 Billion Standard Cubic Feets per Day (BSCFD) by 2030.

"Hopefully there can also be acceleration in order to reduce imports, so that the government has wider space to finance the development of renewable energy which is a priority in the energy transition," concluded Arifin.