Oil and gas companies want flexible operating procedures
The Jakarta Post, Yogyakarta
Oil and gas companies operating in the country urged on Thursday upstream authority BP Migas to give them greater freedom in handling problems around their operating sites.
The call emerged during a two-day meeting, that began on Thursday, between BP Migas and the general affairs officers of the country's production sharing contractors.
The meeting, which was officially opened by BP Migas deputy chairman Kardaya Warnika, discussed standard operating procedures (SOP) for the handling of community development, community relations, public relations and emergency situations.
During the meeting, VICO Indonesia's general affairs senior manager Syaiful Rahman strongly suggested BP Migas issue "flexible" SOPs so that oil and gas companies can handle problems related to the four issues more effectively. The call was supported by other participants of the meeting.
In the past, when the country's oil and gas industry was still under the supervision of state oil and gas company Pertamina, oil and gas contractors often complained about the heavy-handed supervision of Pertamina.
The oil and gas firms were required to first seek permission from Pertamina before taking actions to solve problems related to the four areas. The firms were also not allowed to talk to the press without the approval of Pertamina.
Pertamina argued the strict SOPs were necessary as under the contracts, the government had a majority stake in all oil and gas assets in the country.
Pertamina eased much of the SOPs following the downfall of President Soeharto in 1998, which ushered the country into a democratic era.
BP Migas, which replaced Pertamina as the supervisor and regulator of the downstream sector in 2002, is seeking to give a greater freedom to oil and gas firms in handling their own affairs.
The Yogyakarta meeting was aimed at providing BP Migas with inputs in formulating the new SOPs.
Some 150 delegates of some 30 oil and gas companies are attending the meeting that is scheduled to be officially closed by Minister of Energy and Mineral Resources Purnomo Yusgiantoro on Friday.