BPMIGAS proposes opening of low-scale blocks

The upstream oil and gas regulator (BPMIGAS) has suggested that the government opens up opportunity and allows the participation of low-scale upstream oil and gas business players as part of efforts to increase national oil and gas reserves.

BPMIGAS chief R. Priyono raised the issue during a seminar titled ?The Role of Improved Oil Recovery in Enhancing National Oil and Gas Production? organized by the Department of Chemicals at the Association of Indonesian Engineers (BKPII) and the Association of Indonesian Oil Engineers (IATMI) on Wednesday.

The extensification policy can be applied in the form of expansion of operational area, development of new fields, application of new seismic (prospect & lead), 3D seismic and advanced seismic.

Priyono said opening of low-scale oil and gas blocks would accelerate efforts to increase national oil and gas reserves. ?I hope Bu Evita (the Director General for Oil and Gas) will really consider opening of small blocks, in which a contractor is responsible for one exploration well drilling and two delineation drilling works,? he said.

He believes the policy will lure many oil and gas industry players to take part so as to increase national oil and gas reserves.

?The players are not just Exxon or Chevron, but all gentlemen who once worked for oil companies can set up their own companies,? Priyono said.

The small-scale block operators, however, will lose their licenses if they do not conduct any activity in their respective blocks within the first three years. On the other hand the government will have to provide complete data in order to minimize risks.

Operators who possess accurate data with minimum risks will easily tap public funds through listing in the stock market.

Apart from the extensification policy, the government can increase reserves in existing oil and gas fields, or intensification, through secondary/tertiary recovery, step out drilling, low permeability and low resistivity. (roffie/romel)