SKK Migas urges PSCs to develop oil, gas fields optimally

By Godang Sitompul

Upstream authority SKK Migas urged oil and gas production sharing contractors (PSCs) in the country to develop their respective oil and gas fields optimally.

However, SKK Migas can?t force the PSCs not to relinquish their interests in oil and gas blocks.

?We can?t force, but always strives for the (oil and gas) fields to be developed optimally,? Deputy for Planning Control at SKK Migas, Ausie B. Gautama, told Petromindo.com Monday.

There are currently rumors in the oil and gas industry that some oil and gas contractors would limit themselves to winning oil and gas blocks, and then later sell the assets.

?SKK Migas must closely monitor which PSCs are serious and which are not serious in developing the oil and gas blocks. Some PSCs after obtaining oil and gas reserves certification and plan of development (PoD) from SKK Migas would later sell the blocks,? said an industry source to Petromindo.com.

He pointed out as an example that there is one particular PSC, with a small office and 4-5 employees, after obtaining oil and gas block contract, carrying out ?bogus exploration?, and hired consultant to make up the oil and gas block study, later on went to the market to sell the block.

?This kind of PSC must not be given the PoD approval. SKK Migas must tighten the approval of the PoD,? the source said.

Editing by Reiner Simanjuntak