Indonesia set for massive offshore decommissioning push

Indonesian upstream regulator SKK Migas will conduct a decommissioning program for seven platforms no longer used to support upstream oil and gas operations.

SKK Migas said on Tuesday that this step was part of the industry’s obligation to carry out post-operation environmental restoration, as required in cooperation contracts.

The implementation of decommissioning of seven platforms is also a part of the strategic plan of SKK Migas which placed decommissioning as one of the pillars for the implementation of environmental conservation through the dismantling of equipment that is no longer used, both on offshore.

There are currently 634 platform units in waters offshore Indonesia. A total of 527 platforms are still actively used to support operational activities while 100 units are not operating and seven platforms have been decommissioned in previous periods for other upstream business activities.

Head of the communications division of SKK Migas Susana Kurniasih, said: “Currently, we are re-evaluating 100 platforms that are no longer used to support production activities in preparation for demolition which will be carried out in stages.

“SKK Migas has prepared a decommissioning roadmap which will be completed within seven years. For the time being, seven platforms are ready to be dismantled in 2021.

 “We received an offer from the Government of South Korea to decommission the Attaka I, Attaka UA, and Attaka EB platforms. This assistance is provided to carry out a pilot project to demolish platforms that are no longer in use through cooperation between countries.

“From the three platforms studied, decommissioning of two platforms will be realized. This activity is a pilot project which is expected to produce a pattern of demolition for other platforms”.

SKK Migas added that studies were currently underway on several post-dismantling utilization options like being reused to support oil and gas activities elsewhere, dismantled and taken to temporary storage areas, sold to third parties, utilised for purposes other than oil and gas production – like artificial coral reefs, mooring places for fishing boats, places for weather monitoring equipment, and monitoring of state border security in the outermost areas.

“In carrying out the demolition, SKK Migas will conduct the activities with several agencies such as the Ministry of Energy and Mineral Resources, the Ministry of Finance, the Ministry of Transportation, and the Ministry of the Environment“, Kurniasih added.

SKK Migas has already received requests from several institutions that wanted to take advantage of some of the platforms, to be used to support their activities.

One example is the Ministry of Marine Affairs and Fisheries who wants to use several platforms to function as ‘rig to reef’ areas or places for coral reefs to grow. SKK Migas states it was to various uses for platforms but added that it would pay attention to the technical side and environmental safety.

Several domestic companies have also expressed their willingness to participate in the demolition of platforms that are no longer in use by first conducting a review of the costs and technical implementation. The cost required will vary depending on the location and type of platform to be dismantled.

“The leadership of SKK Migas is very concerned with the implementation of the demolition of platforms that are no longer in use and it will be carried out immediately starting from a platform that has reserved sufficient abandonment and site restoration (ASR) funds, to participate in maintaining the safety and preservation of the maritime environment“, Kurniasih concluded.