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Oil well drilling activities in the region of the Business Unit Pertamina EP Lirik, Riau (photo: Telukharunews)
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JAKARTA (Telukharunews) - Upstream sector of oil and gas (oil) is the industry's long-term dimension,
full of risk, need financing and high technology, as well as reliable
resources.
"Legal certainty and the rule of doing business and doing business in this strategic sector is a necessity," said Head of Legal Department, Executive Agency for Upstream Oil and Gas (BP Migas), Sampe Purba in Jakarta, Sunday (22/7).
Until explained, need 6 to 10 years to determine whether an area of commercial work to proceed. If deemed not find commercial oil and gas reserves, the work area is returned to the government. Costs have been borne out and the risk of contracting cooperation contracts (KKS). Conversely, if deemed commercial, it still needs about one to three years to build the facility and find a market that is expected. "After the new oil and gas could be produced," he said.
He reminded, at the time that exploitation, not merely to drain existing resources. Contractors are required to find and discover new oil and gas reserves for sustainable production. As natural resources are not renewable, it will decrease the productivity of oil and gas naturally. Until a way to produce oil and gas is also becoming increasingly expensive. Dewatering methods will also be moving towards an increasingly high tech. "It takes a huge investment," said Sampe.
Although the upstream oil and gas industry is so complex, Sampe say, all this has opened greater opportunities to the state, enterprises, cooperatives, small businesses, and private sector to take part. Just how the parties to the risk and the ability to access capital. So it is not exclusive only to foreign companies.
He also revealed that BPMIGAS supervise and control the oil and gas production and reception of the State according to the targets set. In addition, efforts to maintain the sustainability of energy exploration and the search for oil and gas reserves. Implementing agencies also regulate spending and spending KKS contractor. In addition to the imposition and use in accordance with the provisions and rules applicable engineering, encouraged the multiplier effect as one of the driving forces of economic society.
"As a government policy implementers, BPMIGAS have accountability and sound governance in the execution of his duty," he said. Exemplified, reporting and consultation to the legislature and ministries/agencies, as well as performance audits and financial accountability in the administration system of governance. (Source: BP Migas)
"Legal certainty and the rule of doing business and doing business in this strategic sector is a necessity," said Head of Legal Department, Executive Agency for Upstream Oil and Gas (BP Migas), Sampe Purba in Jakarta, Sunday (22/7).
Until explained, need 6 to 10 years to determine whether an area of commercial work to proceed. If deemed not find commercial oil and gas reserves, the work area is returned to the government. Costs have been borne out and the risk of contracting cooperation contracts (KKS). Conversely, if deemed commercial, it still needs about one to three years to build the facility and find a market that is expected. "After the new oil and gas could be produced," he said.
He reminded, at the time that exploitation, not merely to drain existing resources. Contractors are required to find and discover new oil and gas reserves for sustainable production. As natural resources are not renewable, it will decrease the productivity of oil and gas naturally. Until a way to produce oil and gas is also becoming increasingly expensive. Dewatering methods will also be moving towards an increasingly high tech. "It takes a huge investment," said Sampe.
Although the upstream oil and gas industry is so complex, Sampe say, all this has opened greater opportunities to the state, enterprises, cooperatives, small businesses, and private sector to take part. Just how the parties to the risk and the ability to access capital. So it is not exclusive only to foreign companies.
He also revealed that BPMIGAS supervise and control the oil and gas production and reception of the State according to the targets set. In addition, efforts to maintain the sustainability of energy exploration and the search for oil and gas reserves. Implementing agencies also regulate spending and spending KKS contractor. In addition to the imposition and use in accordance with the provisions and rules applicable engineering, encouraged the multiplier effect as one of the driving forces of economic society.
"As a government policy implementers, BPMIGAS have accountability and sound governance in the execution of his duty," he said. Exemplified, reporting and consultation to the legislature and ministries/agencies, as well as performance audits and financial accountability in the administration system of governance. (Source: BP Migas)
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