Ministry of Environment gives time for oil, gas producers to meet standard

Minister of Environmental Affairs Gusti M. Hatta said on Tuesday that his ministry would give time for oil, gas companies to meet standards set in the new Environmental Law.

Gusti told Petromindo.Com on a sideline of Indonesian Petroleum Association (IPA) conference in Jakarta that the Ministry is giving exception to oil, gas companies on case-by-case basis. ?We give the companies time to comply based on their own plans. Some companies are requesting 6 month?s time and others are asking for 2 years. We understand that some oil and gas companies need time to adjust to the new regulation,? he said, adding that the Ministry has no interest in sacrificing the nation?s oil production.

Ministry?s Deputy Minister in charge of Pollution Impact Hermien Rosita told Petromindo.Com that thus far, Chevron has asked one year for one year time while Pertamina has asked for two years. ?Until then the Ministry will only give them warning letters or administrative sanction, saying that they have yet comply with the present regulations,? she said.

Director General of Oil and Gas Evita Legowo said recently that the country?s oil production could be slashed by about 40 percent with Chevron Pacific Indonesia and Pertamina as the biggest victims, if the Law was to be implemented immediately as it would be difficult and costly to cut waste water temperature to 40 Celcius degree from 45 degree currently.

R. Priyono, Chairman of Upstream oil, gas authority BPMIGAS also said in March 2010 that another example is the ConocoPhillips operation in Belanak field, Natuna. Priyono said the field?s crude contains a high degree of mercury and limiting the average mercury concentration at 40 parts per million (ppm), as required by the Law, will require the company to redesign its facility.

Evita said that Indonesia?s oil, gas producers would need 3 years? time to fully comply with the new Law.

Oil and gas companies in Indonesia are getting nervous about the New Environmental Law as it carries jail sentence to offenders and that the Ministry of Environment has authority to revoke business permit in the event of regulation violation. (alex)