INSA and SKK Migas Align Offshore Vessel Needs to Support 2030 Oil and Gas Targets

The Indonesian National Shipowners’ Association (INSA) and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) are aligning projections for offshore vessel needs to support the target of producing one million barrels of oil per day and 12 billion cubic feet of gas per day by 2030. Carmelita Hartoto, Chairwoman of INSA, stated in Jakarta on Wednesday that this alignment is necessary to provide shipping businesses with certainty in planning fleet investments to support upstream oil and gas operations. INSA and SKK Migas held a Focus Group Discussion (FGD) entitled ‘Strategy for Aligning Offshore Vessels to Support National Upstream Oil and Gas Operations’ combined with the kick-off of the strategy for aligning vessel needs to support the operations of Production Sharing Contract (K3S) contractors. According to Carmelita, the success of oil and gas production targets is determined not only by exploration and production activities but also by the readiness of support vessels for offshore operations, ranging from drilling and well intervention to marine logistics. She noted that one of the current challenges facing the industry is the absence of medium- and long-term vessel demand projections, making it difficult for shipping companies to formulate investment plans. Additionally, a portion of the national fleet has reached an age that requires rejuvenation, while investment in new vessels still faces financing constraints and is not yet supported by long-term contract schemes. Carmelita also stressed the importance of implementing the cabotage principle as a foundation of national maritime sovereignty while considering the operational needs of the upstream oil and gas sector. She said collaboration between SKK Migas, Production Sharing Contract (KKKS) contractors, shipping companies, financial institutions, and regulators is needed to build a more competitive and sustainable offshore shipping ecosystem. Currently, INSA has approximately 119 member companies operating in the offshore and specialised vessel sector with the experience and capacity ready to support the needs of the upstream oil and gas industry.