Environment law needs transition time: BPMIGAS

Oil and gas usptream sector regulator BPMIGAS has requested transition time for the implementation of Law No. 32 of 2009 on Environment Protection and Management, citing that it takes time for oil and gas contractors to adjust their operation supporting equipment with the new environment standard.

To comply with the new law, oil land gas contractors should prepare new tools and technologies to be used in their oil and gas field. Each of the contracts have their own challanges to meet the requirements set in the new law, BPMIGAS's heads of public relations and instituational relations Wahyu Sulistya Hastuti said.

"So it`s not an easy matter to implement it in upstream oil and gas industry. At least it would take three years of transition," said the official on the Directorate General of Oil and Gas?s website.

She gave an expample the obligation stipulated in the law for oil and gas contractors to decrease wastewater temperature from 45 degrees Celsius to 40 degrees Celsius. Pertamina EP`s working plan to re-inject produced water to reduce the temperature is expected to be completed in 2011.

"(This is) because it needs sub-surface studies and drilling works in advance. Not to mention the process of procurement, fabrication, construction, and operations," she said.

Another problem is that the mercury content in produced water is beyond liquid waste disposal permission. This is experienced by Conoco Phillips in Belanak Field, Natuna. With the law stipulating mercury content must be in an average of 40 ppm, Conoco needs to conduct a review of engineering and installation of additional facilities planned to be completed in 2014.

Sulistya said if the government refuses to provide a transition time, oil and gas contractors would certainly follow the rules. However, the implication is that the production of oil and natural gas will drop significantly by as much as 50 percent. The average oil production until March is around 954,000 barrels per day (bpd), while gas is around 8757 million cubic feet per day (mmcfd).

The oil and gas contractors would choose to reduce their output to avoid paying fines or being prosecuted on charges of violating the environmental law, she said.

"The contractor would not want to risk paying fines or being imprisoned," she said. (*)