SKK Migas to Legalize Illegal Oil Mining

Summary

The Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) stated that illegal oil mining practices often occur in oil-producing areas, especially in old wells. According to SKK Migas Head Dwi Soetjipto, the output from illegal mining is estimated to reach a total of 10 thousand barrels per day. "It's indeed a serious problem. These illegal practices must be dealt with," he said.

SKK Migas Deputy of Operations Julius Wiratno revealed that SKK Migas, together with the Indonesian National Police (Polri) and the Indonesian National Army (TNI), had taken some actions to reduce illegal oil mining practices. The cooperation aims to address environmental problems from illegal mining because these illegal wells are currently located on community land and protected forests. "We have closed dozens of illegal wells," he said.

Moreover, SKK Migas has formed a special team to resolve the illegal oil mining problem. Later, Julius added, SKK Migas will create a legal umbrella so that these practices are no longer against the law. "Those that are illegal will be legalized. What does it look like? We are looking for its legal umbrella. It's still being studied. The SKK Migas special team will interact with several related government agencies," Julius said.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.