Jakarta –
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is still disappointed Shell. This happened because Shell Upstream Overseas Ltd decided to withdraw from the development of oil and gas projects Block Masella.
Indeed, according to SKK deputy head Migas Fatar Yani, the government appears to have ‘failed’ due to Shell’s decision to withdraw before production of the Masela block was completed. Although the government has provided a number of excellent tax incentives.
“We were caught off guard when Shell, at that time we were the first to make it and it was very good in Indonesia fiscally, it didn’t come to production,” said Fatar Yani at Penang Bistro, Central Jakarta, on Tuesday (15 /11/2019) 2022).
Fatar Yani said the government was very disappointed with Shell, although with such a big name the company should be able to continue its projects in Indonesia. But left half done.
“So, hopefully with good terms and conditions, Shell runs a great company, yes, midway it will leave even if it’s good,” said Fatar Yani.
squeeze Regulation
Moving forward, SKK Migas and other oil and gas regulators are adopting regulations that allow companies participating in a project not to leave before production begins.
“I mean, don’t leave the barrier. Until commercial production, we will make the rules later. In the future, if you get incentive until production is completed, you can’t leave,” said Fatar Yani.
In 2020, Shell declared its withdrawal from the Masela Block development project in Tanimbar, Maluku. SKK Migas chief Dwi Soetjipto at the time expressed his disappointment in an official letter sent to Shell.
Dwi Soetjipto admitted that the issue of Shell’s departure had come from mid-2019 or when discussing the development plan (POD).
“Shell went straight to the minister (ESDM) and we were immediately instructed to send letters to Shell maybe 2-3 times saying the government was disappointed with the steps taken by Shell,” Dwi said at a working meeting with the Commission VII Presidential Decree, Monday (8/24/2020) ago.
Dwi said the process of withdrawing Shell through the sale of stake (IP) or its management rights must be done as quickly as possible. He said it will take 18 months to release the 35% stake in the Masela Block.
As for the progress of development, Dwi admitted that there has been a delay.
“In detail, we were asked to report that currently through July 2020 the effective is 2.2% and this is actually due to COVID, low oil prices and so on, there is a delay in the 10% target .5%, about 8.3% late, yes.” Dwi said.
Watch a video “SOE asked by Jokowi to collaborate with Inpex in the Masela Block“
[Gambas:Video 20detik]
(hal/zlf)
