Ministry regulates gas flaring activities

By Romel S. Gurky

Energy and Mineral Resources Minister Jero Wacik has put in effect a regulation on gas flaring in oil and gas activities as part of efforts to better optimize energy sources.

The regulation, which was signed on December 21 with immediate effect, defines the activity as gas burned on stationary stack, both vertical and horizontal, as it cannot be handled by available production facilities. It stipulates that PSC holders can carry out the activity if the volume of the gas flaring does not exceed:
a. 3 percent of gas feed for gas operation.
b. an average of 5 mmscfd for oil operation.
c. 0.3 percent of gas intake for gas operation.
d. 0.8 percent of oil intake for oil operation.

In carrying out this activity, PSC holders must notify its plans for approval by the Director General of Oil and Gas at the Energy and Mineral Resources.

Companies that wish to burn the gas beyond those volume limits are obliged to conduct a study on it. If the study justifies the plan, and later on gains approval from the Director General, then such action is permissible for operational needs.

PSC holders can carry out gas flaring activities without conducting a study and approval from the Director General under specific conditions, namely:
a. For operational safety.
b. For non-normal condition.
c. For emergency condition.
d. For well production test.

The regulation is effective immediately for new oil and gas operations. Companies that have been carrying out the activity before the regulation was enacted have one year to comply and adjust to this new guideline.

Editing by Dadan Wijaksana