SKK Migas introduces new way to resolve overlapping problem

By Bernard Loebs

Upstream authority SKK Migas has recently introduced a new joint land use agreement (also known locally as PPLB) to help resolve overlapping of concession between oil and gas contractors and other parties such as coal miners, oil palm plantations, and even local administrations.

Bambang Arianto Kurniawan, Head of Public Relations of SKK Migas Kalimantan-Sulawesi office, told Petromindo.com that the PPLB will help end conflict of overlapping of concession faced by oil and gas contractors, which in turn would help ensure safety of operation and legal certainty.

Bambang said that so far, 10 PPLBs have been signed by oil and gas contractors with other companies. He cited as an example a PPLB signed by Pertamina EP Sanga-Sanga in Kutai Kertanegara Regency, with a coal mining firm.

He said that a recommendation from the Ministry of Energy and Mineral Resources is required for the signing of the PPLB. The recommendation will be used as a basis to consider the rights and obligations of the parties signing the PPLB.

Editing by Reiner Simanjuntak