Jakarta –
SKK Migas revealed that as many as 49 upstream oil and gas (oil and gas) contracts will be terminated or terminated. Financial problems are the main problem so that oil and gas working areas (WK) are never worked on.
Head of SKK Migas, Dwi Soetjipto, explained that the termination occurred because exploration activities exceeded the deadline. Then, commitments are not carried out and efforts to find solutions not to terminate are no longer there.
“And both parties agreed that there was no other way, so the termination was so that there could be another operator who might have technological capabilities and especially adequate finances. Most of them were hampered because of financial capabilities,” he said at the Ministry of Energy and Mineral Resources, Jakarta, Friday (12 /10/2023).
Dwi said that finances were a problem that led to the termination of most WK contracts. So, these WKs were never worked on until the deadline.
“Yes, why is it finished? Because he doesn’t have money, most of the time, because he doesn’t have money, he doesn’t work on it until his time runs out,” he said.
Quoted from CNBC Indonesia, as many as 49 upstream oil and gas (oil and gas) contracts have the potential to be terminated or returned to the state from 2020 to 2023.
Head of the SKK Migas Program and Communications Division, Hudi D Suryodipuro, acknowledged that the upstream oil and gas contract termination process is currently being processed. However, according to him, the final decision will be conveyed by the Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources (ESDM).
“That will be conveyed later by the (Directorate General of Oil and Gas). The problem is that for example, the return process has been regulated from a contractual perspective. There are provisions regarding how long it will take for the (oil and gas block) to be returned,” he explained during the oil and gas discussion at BSD, South Tangerang, Wednesday (11/10).
(acd/hns)
2023-10-12 14:44:22
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