Jonan expects SKK Migas reshuffle to speed up permitting process

Petromindo|Dasir

Minister of Energy and Mineral Resources Ignasius Jonan expected the latest reshuffle at upstream oil and gas authority SKK Migas would help speed up permitting process in the country?s upstream sector.

?I don?t want to hear no more people protesting to me about the slow permitting process at SKK Migas,? he said in a speech during a ceremony on Friday to inaugurate five new senior officials of SKK Migas, in a reshuffle which retains the regulator?s current Chairman Amien Sunaryadi.

Jonan said that slow permitting procedure will affect the operating cost of upstream oil and gas contractors, which in turn would undermine profitability as commodity price is beyond their control.

Among of the new senior officials of SKK Migas is Sukandar, a former president director of state-controlled steel giant, who has been appointed as the new Deputy Chairman of the regulator, replacing Zikrullah, who has assumed the post since 2015.

The government is struggling to lure fresh investment into the country?s upstream sector particularly as exploration activities have declined in the wake of recent drop in oil price and tougher competition with other oil producing countries. (*)