BPMIGAS urges PSCs to fulfill commitment

Upstream authority BPMIGAS urges oil and gas exploration production sharing contractors (PSCs) to fulfill their commitment, as it would form the basis to determine their performance report to be submitted to the Ministry of Energy and Mineral Resources.

BPMIGAS said in a statement issued on Monday that there are currently 293 working areas consisting of 74 exploitation working areas, and 219 exploration working areas including 50 coal bed methane working areas. Exploration activities planned for this year include 16,320 km 2D seismic, 10,026 km2 3D seismic, and the drilling of 276 exploration wells.

The regulatory agency noted there are a number of obstacles both internal and external faced by contractors in their operations. Internal obstacles include delays in procurement schedule and financial barrier. Operational impediments include limited equipment and non-parallel sequential schedule have also contributed in delaying program implementation.

External wise, obstacles faced by the contractors linger on land conflict between oil and gas working areas and the forestry, plantation, and industry sectors.

BPMIGAS claims that it has made maximum efforts to help the contractors in dealing with the internal problems among others by forming the PSC Operators Forum, or FOKWE. Survey operation, drilling and work over coordination meeting is expected to be formulate the best strategy in carrying seismic operation, drilling, and work over which have been formulated under the 2012 Work, Program and Budget.

Editing by Reiner Simanjuntak