Jakarta, Indonesia Sentinel — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, issued a stern warning to oil and gas contractors under the Cooperation Contract Scheme (KKKS), threatening to revoke their working area permits. This move targets contractors who have completed exploration activities but failed to proceed with Field Development Planning (PoD).
“This is not just an empty threat; it is a direct order from President Prabowo Subianto to increase Indonesia’s oil lifting,” Bahlil stated during a hearing with the House of Representatives’ Commission XII in Jakarta, as quoted on Monday, November 18, 2024.
Upholding National Interests
Minister Bahlil emphasized that the government’s actions align with Indonesia’s Constitution, particularly Article 33, which mandates that natural resources be controlled by the state and used for the maximum benefit of its citizens.
“If we revoke their permits because they violated the rules, there’s no room for protest. These resources belong to the state, not private enterprises,” he asserted.
The minister highlighted that non-compliance from contractors undermines national efforts to boost oil production, which is critical for energy security and economic development.
A Widespread Issue
The Energy Ministry revealed that 301 oil and gas fields have completed exploration but remain stalled in the PoD phase. This situation prompted the government to initiate a review and seek explanations from the involved contractors.
“There are 301 wells ready for development but still without PoD. We’re investigating what’s causing the delay,” Bahlil added.
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Strict Measures Ahead
Minister Bahlil that the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has been instructed to issue warnings to non-compliant KKKS. If the delays persist, the government will not hesitate to reclaim these fields and reassign them to contractors willing to expedite development.
This decisive stance underscores Indonesia’s commitment to ensuring that its natural resources are managed effectively and contribute to the nation’s prosperity.
Looking Forward
As Indonesia seeks to bolster its oil and gas output, the government’s firm approach signals a shift toward stricter accountability in the energy sector. By enforcing timely development of oil and gas fields, Indonesia aims to meet domestic energy demands and strengthen its position as a key player in the global energy market.
(Becky)
