Publications

Operatorship of an oil and gas block in Indonesia can be acquired via a Joint Study Agreement followed by operatorship through regular tender, direct proposal tender or operatorship transfer from another operator through divestment or farm-out scheme. Obtaining an operatorship is just the beginning, with massive commitments to follow. Operating a green field block, starts during the exploration phase of seismic and drilling activities and then, if a discovery is made which is economically feasible, continues with a Plan of Development (POD), before a block can produce hydrocarbons. Or else will be returned back to the Government. Development of green field typically takes between 5-10 years from acquisition up to production depending on many aspects. One of the key aspects which are discussed in this article is Health, Safety, and Environment (“HSE”). This paper discusses the challenges and opportunities of the HSE Life cycle in operating an oil and gas asset in Indonesia, right from the acquisition of a block up to production and decommissioning with regard to the Indonesia’s law & regulation, applicable international codes & standards and industry best practices. Proper management of the HSE aspect determines the success of the oil and gas business. Key points such as how to develop Environmental Baseline Assessment (“EBA”), Environmental Management and Monitoring or UKL-UPL, Environmental Permit, Environmental Aspect and Impact Analysis study or AMDAL, Project HSE Review are just few of the topics of discussion. This paper provides an overview of the HSE Lifecycle in the Oil and Gas exploration and production business in Indonesia, including its challenges and opportunities that can be a useful reference for the industry.