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The opportunities, issues and legislation of decommissioning in Indonesia

Lifecycle stage
Decommissioning

THE LEGISLATION

Legislation in the region has been criticised for not giving enough support to operators or engineers, compared to other regions such as the North Sea. While Indonesia is a signatory of the ‘basic’ international legislation surrounding maritime and rig-to-reef projects, there are no technical guidelines – leaving projects open to interpretation for operators and engineers to follow.

There is, however, signs that this could be improved moving into 2016. Back in 2015, The Indonesia Decommissioning in Oil & Gas Conference (IndoDecomm2015), supported by the Government, spoke about these very issues. Workshops around regulation and law were on the agenda for the conference to try and stimulate the market further, and unlock issues operators and engineers face.

DOES CHANGE BRING OPPORTUNITY?

With issues and regulations now being addressed, there is growing optimism that Indonesia could become the next big market for decommissioning. Industry experts, though, are remaining cautious.

In the latest Decommissioning Industry Questionnaire Report, conducted by Claxton Engineering, the opinions of industry leaders were compiled on all aspects of the decommissioning industry – including geographical regions that presented the biggest opportunity for the industry.

Only 7.7% of respondents earmarked Asia as a key region, with the North Sea/UK & Norway (58.9%) representing the “biggest opportunity”.

Clearly, operators and engineers alike are waiting for concrete changes in the region before committing to changing their opinions on the market. There is no doubt that Indonesia poses a great opportunity to the decommissioning industry, but intervention from the Government to resolve the issues and challenges are required before confidence increases.

Photo Credit: Pixabay

 

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