The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has a task of controlling upstream oil and gas operations, from the stage of exploration, discovery, exploitation, building of facilities, all the way to production, which are carried out by oil and gas companies commonly known as Contractors of Production Sharing Contracts (PSC Contractors). This was stated by Chairman of SKK Migas, Amien Sunaryadi in his speech at “Workshop and Focus Group Discussion (FGD) on Utilization of Gas from Idle Fields in Indonesia”, in Jakarta, on 7 June 2018. 

 

“It happens that some of our existing fields contain gas; some produce oil; some contain both gas and oil, and some have an insignificant amount of discovered reserve. Thus, for some fields that contain insignificant reserve, it will not be economical if we build a large facility. However, business is business, Amien said.

 

The business of reserve discovery, be it large or small, will depend on the business player who sees it. In this case, there are reserves which generally have not been commercialized.

 

“Perhaps by looking at this, colleagues from gas businesses and gas technology businesses will be able to have ideas and solutions on how to develop reserves into real business,” Amien added.

 

Amien also believes that the target of PSC Contractors as the sellers is to be able to sell as much gas as possible. Meanwhile, the target for prospective buyers is to have a supply of gas available for them to purchase, either for their own use or other parties’ use. On the other hand, the goal of technology providers, is to ensure that their technology is applicable in relevant situations. Whereas, the target of the transporters is certainly to sell their transport services. “Hence, despite having different goals, if integrated, all parties can work well together,” Amien concluded.

 

For information, in the upcoming days, the areas with a large gas reserve are located in the eastern part of Indonesia. Meanwhile, the current existing gas reserve areas are located in Sulawesi, Kalimantan, East Java, Sumatra, and Natuna.