BPMigas urges oil and gas firms to minimize unplanned shutdown

The upstream oil and gas regulator BPMigas urges oil and gas companies to minimize unplanned shutdown of production facilities, therefore potential production loss from unplanned shutdown can be reduced to 10,000 barrels per day from an average 15,000 bpd.

?We urges oil companies to conduct pipeline inspection regularly so that production remain intact,? said Hardiono, deputy chairman of BPMigas said.

Furthermore, in order to encourage more exploration activities, BPMigas creates an exploration community that will help create better communication between players and the regulator. For such purpose, the regulator will create a joint secretariat to detect and resolve problems being encountered by oil and gas companies.

He added there are 9 production sharing contracts (PSCs) which BPMigas will propose to terminate, including Block Remang. His office has submitted the recommendation letter to the Energy Ministry.

As for Pertamina, BPMigas urged the company to reactivate the undeveloped areas by utilizing EOR (enhanced oil recovery) technology. (godang)