JAKARTA, RAKYAT NEWS – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has issued a formal warning letter, known as SP-1, to Inpex Masela Ltd, urging the company to accelerate the production of natural gas from the Masela Block. The government is pushing for immediate action from the Japanese investor, which holds the rights to the Masela Block, a key resource in Indonesia’s energy future.

According to Djoko Siswanto, the head of SKK Migas, the warning letter is a step towards ensuring Inpex begins production as soon as possible. He emphasized the importance of securing gas buyers in order to initiate the project without further delays. The government has been clear that the project cannot be delayed any longer, as Indonesia faces growing energy challenges.

Indonesia’s Energy Minister, Bahlil Lahadalia, has also weighed in on the matter, urging Inpex to start production this year. Bahlil has made it clear that if progress is not made, the government will consider revoking the Masela Block concession. He pointed out that Inpex has held the concession since 1998 but has yet to present a field development plan (POD), a critical step towards production.

Bahlil’s comments underline the urgency of the situation, as he has also stated that similar actions would be taken against other oil and gas operators who have completed exploration but have failed to begin production. This includes 300 wells that have been fully explored but remain inactive.

The Minister’s position is part of a broader strategy to increase Indonesia’s oil production. In recent years, the country has seen a significant drop in production, with output falling by more than 60% from 1997 levels. At the same time, national oil consumption has increased, turning Indonesia from a net exporter of oil in 1998 into a net importer.

YouTube player