Govt aims to reduce cost of decommissioning work<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The government is seeking ways to reduce the high cost of
\nremoving infrastructure facilities at depleted offshore oil and
\ngas fields, according to a senior official.<\/p>\n
Director general of oil and gas Iin Arifin Takhyan said that
\none of the options was to use a \"certain technology\" so that the
\nplatforms could still be used in other oil and gas projects.<\/p>\n
The removal of offshore platforms (technically known as
\ndecommissioning) is crucial so as not to impede international sea
\ntraffic, especially in light of the fact that this country is
\nbetween two major oceans and some of the facilities are located
\nalong some of the main sea lanes.<\/p>\n
Iin acknowledged that the cost of removing the platforms was
\nhuge, depending on the weight and the depth of the platform. A
\nplatform weighing over 500 tons at a water depth of 100 feet
\ncosts between US$600,000 and $1.3 million to decommission.<\/p>\n
According to government data, there are currently 448 offshore
\nplatforms which are used for wellheads, accommodation facilities,
\ncrude oil processing, liquefied natural gas (LNG) processing and
\nloading\/unloading facilities. They are scattered throughout the
\nJava Sea, the Malabar Strait, Natuna Sea and Malacca Strait.<\/p>\n
So far, only 21 of the 448 platforms have been decommissioned.<\/p>\n
Since 1994, oil and gas contractors have been obligated to
\nbear the cost of decommissioning. But the government is
\nresponsible for the decommissioning of facilities at oil and gas
\nprojects approved before 1994.<\/p>\n
The British government has signed an agreement with the
\nIndonesian government, under which the former would provide
\ntechnical help to ensure a cost effective decommissioning
\nprocess.<\/p>\n
Although the country is known as a major oil and gas producer
\nin Asia, Minister of Energy and Mineral Resources said that the
\ndecommissioning work is relatively new for the country.<\/p>\n
\"In the future we have to think about how to reuse this
\ninfrastructure after the oil and natural gas resources run out.
\nAnd also who will bear the cost of removal,\" he said.<\/p>\n
Iin said that since 1994, the oil and gas contractors have so
\nfar preferred to allocate funds for other investment purposes.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-aims-to-reduce-cost-of-decommissioning-work-1447893297",
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"sponsor": "Okusi Associates",
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