Energy, Maritime Ministries Ink Implementing Arrangement for Attaka Platform Decommissioning

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 54.Pers/04/SJI/2022

Date: 1 February 2022

Energy, Maritime Ministries Ink Implementing Arrangement for Attaka Platform Decommissioning

The Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (EMR), Tutuka Ariadji, and the Deputy for Maritime Sovereignty and Energy Coordination of the Coordinating Ministry for Maritime Affairs and Investment, Basilio Dias Araulo, signed the Implementing Arrangement (IA) on the Pilot Project for Decommissioning and Rig-To-Reef Re-Utilization of Offshore Plants in Indonesia on Monday (31/1). The signed arrangement will become the basis to dismantle Attaka-I, Attaka-UA, and Attaka-EB platforms of East Kalimantan and Attaka Oil and Gas Work Areas located in East Kalimantan Province.

The decommissioning work will be carried out in collaboration with the government of South Korea under a rig-to-reefs project, i.e. the practice of converting offshore oil platforms into man-made reefs. The Ministry of EMR has issued an Approval for Post-Operation Activities and Disposal of State-Assets.

Previously on October 13, 2021, the Indonesian government strengthened its maritime cooperation with the South Korean government, with the signing of a Memorandum of Understanding (MoU) by the Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, with the Minister of Oceans and Fisheries of the Republic of Korea, Moon Seong-Hyeok. "Unused offshore platforms will be put to use for artificial coral reefs, aquaculture, marine tourism, and research centers," explained Minister Luhut back then.

Basilio said in his remarks that the IA signing is expected to become a pilot project for post-operation activities in Indonesian waters. In addition to the three platforms, there are numerous other platforms that must be decommissioned under the same or different schemes but all in an economical and environmentally friendly manner.

"Relevant cross-sector parties should continue to oversee this activity because there are many other things that need to be resolved," said Basilio.

For the record, the decommissioning of oil and gas platforms refers to a series of activities to dismantle equipment, installations, and/or supporting facilities, including to permanently seal wells, restore sites and release or dispose of equipment, installations, and/or facilities of upstream oil and gas business which are carried out before or at the time a production sharing contract (PSC) ends.

The legal bases for platform decommissioning are Article 21 of Government Regulation Number 17 of 1974 on Supervision of Offshore Oil and Gas Exploration and Exploitation as well as Articles 2 and 10 of Regulation of Minister of EMR Number 15 of 2018 on Post-Operation Activities in the Upstream Oil and Gas Business.

Article 2 of the ministerial regulation sets out that PSC contractors must carry out post-operation activities using post-operation funds, while Article 10 stipulates that in carrying out post-operation activities, PSC contractors must apply the Indonesian National Standard and/or other existing international standards according to the approved plans for post-operation activities. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

Share This!