SKUP Migas

Description

What is this for :

“SKK Migas” stands for “Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi” in Indonesian, which translates to the “Special Task Force for Upstream Oil and Gas Business Activities.” It is an Indonesian government institution responsible for managing and overseeing upstream oil and gas activities in Indonesia.

The primary responsibilities of SKK Migas include:

1. Regulating Exploration and Production Activities: SKK Migas oversees and regulates oil and gas exploration and production activities in Indonesia. This includes granting contracts, monitoring operations, and ensuring compliance with relevant regulations.
2. Contract Management: SKK Migas manages production-sharing contracts (PSCs) and other agreements between the Indonesian government and oil and gas companies. This involves negotiating terms, approving work programs, and monitoring contract performance.
3. Reserve Estimation: SKK Migas is responsible for estimating oil and gas reserves in Indonesia, which helps in planning and managing the country’s energy resources.
4. Revenue Collection and Distribution: SKK Migas collects revenue from oil and gas production and ensures its equitable distribution between the government and contractors according to the terms of production-sharing contracts.
5. Technical Assistance and Support: SKK Migas provides technical assistance and support to oil and gas companies operating in Indonesia to optimize production, enhance recovery rates, and improve operational efficiency.
6. Environmental and Social Responsibility: SKK Migas promotes environmental and social responsibility in the oil and gas industry by enforcing regulations, monitoring environmental impacts, and supporting community development programs.

Requirements

1. Legal Entity: The company must be a legally registered entity in Indonesia, typically in the form of a limited liability company (PT) or a joint venture with a local partner.
2. Technical Capability: The company must demonstrate technical capability and experience in upstream oil and gas activities, such as exploration, drilling, reservoir engineering, production operations, and field development.
3. Financial Capability: The company must have sufficient financial resources to fund its operations, including exploration, development, and production activities. Financial statements and evidence of financial capacity may be required.
4. Work Program and Budget (WP&B): The company must prepare and submit a detailed work program and budget to SKK Migas for approval. The WP&B outlines planned activities, timelines, and budget allocations for exploration, development, and production phases.
5. Environmental and Social Impact Assessment (ESIA): Companies must conduct environmental and social impact assessments for their proposed activities and obtain relevant permits or approvals from government authorities, including the Ministry of Environment and Forestry.
6. Health, Safety, and Environment (HSE) Management: Implement and maintain comprehensive health, safety, and environmental management systems in accordance with Indonesian regulations and international best practices.
7. Local Content Requirement: Comply with local content requirements stipulated by the Indonesian government, which aim to promote the participation of local companies and workers in the oil and gas industry.
8. Insurance Coverage: Obtain appropriate insurance coverage for operational risks, including third-party liability, environmental damage, and asset protection.
9. Contractual Agreements: Enter into production-sharing contracts (PSCs) or other contractual agreements with the Indonesian government or state-owned oil and gas company (such as Pertamina) governing the terms and conditions of upstream oil and gas activities.
10. Compliance and Reporting Obligations: Fulfill reporting and compliance obligations to SKK Migas, including submission of production data, financial reports, and other relevant information as required by regulations and contractual agreements.
11. Local Community Engagement: Engage with local communities and stakeholders to address social issues, promote local development, and obtain social license to operate.
12. Government Approvals: Obtain necessary permits, licenses, and approvals from government authorities at the national, provincial, and local levels to conduct upstream oil and gas activities.
These requirements may vary depending on the specific nature of the project, the contractual framework, and regulatory changes. Companies seeking to operate in Indonesia’s upstream oil and gas sector should consult with legal advisors and industry experts to ensure compliance with all applicable requirements and regulations

What you get :
Document certification