SKK Migas Prepares Regulatory Breakthroughs for Unconventional Oil and Gas

The Special Task Force for Upstream Oil and Gas Business Activities (“SKK Migas”) is drafting a special Work Procedure Guideline (Pedoman Tata Kerja – “PTK”) to govern the handling of unconventional oil and gas. The new regulation is being developed to promote the large-scale development of unconventional oil and gas potential as part of the country's energy security strategy.

“We are all still on a learning curve phase when it comes to utilizing Unconventional Oil and Gas, and we are drafting a PTK to address Unconventional Oil and Gas, which has significant potential that we should begin to develop on a large scale,” said Ari Iskandar, Head of the Field Development and Enhanced Recovery Division at SKK Migas. 

Ari explained that the regulatory development is aligned with efforts to build an ecosystem for Unconventional Oil and Gas project development. He confirmed that the draft regulation would be coordinated directly with the Ministry of Energy and Mineral Resources (“MEMR”). According to him, one aspect that needs to be accommodated in the guideline is regulatory flexibility to accelerate the development and production of Unconventional Oil and Gas.  

In addition to regulatory certainty and flexibility, Ari considers fiscal incentives necessary to attract funding and ensure the sustainability of Unconventional Oil and Gas development projects.