Contractors Return 60 Oil and Gas Fields to Government

By Editorial Team 15/01/2021
Summary

The government will evaluate at least 60 stalled oil and gas fields. Cooperation contract contractors (KKKS) did not continue the field management, although the contract has not expired, and returned them to the government. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the evaluation aims to determine which oil and gas fields still have potential.

Later, the government will re-offer these oil and gas fields to contractors through an auction mechanism as one of the strategies to pursue an oil production target of 1 million barrels per day (bopd) and gas of 12,000 million cubic feet per day (MMscfd) by 2030. "In the future, more idle fields will be auctioned. We will review which fields are worth auctioned," he said.

As many as 40 of these stalled oil and gas fields are under Pertamina's management. The regulation was one of the factors that caused the field to stall. "So far, regulations are still hampering, and we will fix it. Later, the field management can cooperate with business entities," said Arifin.

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