Indonesia's oil and gas production currently depends on 67 Working Areas (WA) that have entered the production phase. SKK Migas Head of Public Relations Taslim Z. Yunus said, as of June 2016, there were 289 oil and gas CAs in Indonesia. Of these, the development plan for 85 oil and gas CAs has been approved and has entered the exploitation phase. Meanwhile, 204 oil and gas CAs are still in the exploration phase.
"Of the 85 exploitation WA, only 67 were producing WA, while the other 18 WAs were still under development, said Taslim.
According to Taslim, the burden of the 67 productions WA is heavy considering that most of them are old fields that have been in production for decades.
"As little as 67 WA are disrupted, national production will be affected," said Taslim.
Taslim added, to strengthen national oil and gas production, stakeholders need efforts and support so that other WA that are still in the exploration and development phase can immediately proceed to the production phase. The government holds an auction for oil and gas in WA every year. After the government determines the winner, SKK Migas as the government representative will sign a cooperation contract with the winning contractor.
Activities began with exploration for commercial oil and gas reserves. If successful, the contractor will prepare a development plan that must be approved by the Minister of Energy and Mineral Resources. After approval is obtained, activities can proceed to the development and production phases.
All upstream oil and gas activities from exploration to production are supervised and controlled by SKK Migas. This supervision and control aim to maximize the results of upstream oil and gas business activities for the welfare of the people.
Surabaya Pagi, Page-7, Tuesday, Oct 18, 2016
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