SKK Migas Simplifies Evaluation of Additional Activity Proposals

Summary

The Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) simplifies the evaluation process of submissions for additional activities by Cooperation Contract Holders (KKKS) who wish to increase production from a certain scope. These activities include step-out wells, infield/nearfield wells, additional wells from a number of wells in the existing plan of development (PoD), and non-producing zones that have been penetrated by development wells.

Deputy Head of SKK Migas, Fatar Yani Abdurrahman, said that the simplification of the evaluation process is one of SKK Migas' extra efforts to accelerate production from acceleration of resource to production program. "The simplification of this process is motivated by the many potential subsurfaces that have been identified and whose production can be accelerated, but have yet to be done and yet to be monetized," Fatar Yani said on Wednesday (11/18).

However, KKKS can only propose the implementation of activities for a maximum of two wells, with reference to the existing PoD around the activities they carry out. This limitation is a form of risk mitigation that may occur, both subsurface technicalities and cost. Proposed activities with more than two wells must be carried out by KKKS through the POD process of field development optimization in accordance with the applicable SKK Migas Work Guidelines. "If [the activity proposal] is approved, the KKKS must also submit an Authorization of Expenditure [AFE]," Fatar said.

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