BPMIGAS asked to approve PoD within 31 days
Tuesday, January 17 2012 - 05:28 AM WIB
The instruction was stipulated in the Presidential Instruction number 2, 2012 on January 10, 2012, on the Improvement of National Oil Production, which was issued to push national production to an average of 1.01 bpd in 2014.
BPMIGAS was also required to complete Work, Program, and Budget (WP&B) in 25 days at the latest after contractors submitted the proposal.
There were 6 points of instruction to the BPMIGAS Chairman Priyono. First, to complete the Authorization for Expenditure in 38 days at the latest since the complete proposal from contractors were submitted and the procurement of goods and services should take 10 days for the plan and 20 days to select the vendor.
Second, to improve efficiency of operation and optimizing production facilities. Third, to improve optimizing of the production field and development through enhanced oil recovery (EOR) technology. Fourth, to improve the control and supervision on contracts including joint facilities. Fifth, to speed up the development of new fields, marginal, and idle fields. Sixth, to optimize the use of suspended wells.
The President also instructed five points to Energy and Mineral Resources Minister Jero Wacik. First, to approve the PoD I request in 90 days at the latest after the ministry received the proposal from BPMIGAS. Then, the ministry was asked to monitor BPMIGAS in implementing programs to increase oil output.
Third, the ministry has to find solution on regular problems faced by oil and gas contractors. Fourth, it should regularly review oil and gas regulations as part of efforts to create supportive investment climate. The last, it should optimize production at existing fields and accelerate the process to discover new reserves of oil and gas through the improvement of all prevailing regulations. (*)