Inp.polri.go.id - Jakarta.   State upstream oil and gas regulator, SKK Migas, has called on oil and gas companies to promptly establish operational cooperation agreements (KSO) with community-owned oil wells located within their working areas.

“From our side, the KSO should be formalized immediately. The form of the cooperation must be clear,” said Hudi D. Suryodipuro, the Head of Program and Communication Division at SKK Migas, during a media briefing on Friday (25/7/2025), as quoted by antaranews.com..

The cooperation will include the purchase of oil produced by community wells, which will be counted as part of KKKS production. 

“It will be included in the Work Program and Budget or its revision. If the production is not recorded, then oil and gas companies may fail to meet its production targets,” he added.

SKK Migas is pushing for oil and gas companies to begin purchasing oil from community wells starting 1 August 2025. Administrative processes on the part of the well operators are still being finalized.

SKK Migas Deputy for Exploitation, Taufan Marhaendrajana, estimated that community well production could contribute around 10,000–15,000 barrels per day to the national output, with hopes for even higher results amid Indonesia’s ongoing energy crisis mindset.

(mg/inp/pr/rs)