The Energy and Mineral Resources (EMR) Ministry is drafting a ministerial regulation on Oil and Gas Safety Management Systems and Technical Inspection of Installations and Equipment for Oil and Gas Business Activities. The regulation, which is included in the national legislation program for 2016, is expected to be completed this year.
The EMR Ministry also shared information about the draft regulation at a communication forum on oil and gas safety in Nusa Dua, Bali, Wednesday (24/8). This annual forum is attended by all oil and gas stakeholders, including upstream, support, and downstream managers, academics and associations such as the Independent Team for Oil and Gas Safety Control (TIPKM). (Read: Government to Revise Oil and Gas Work Safety Regulation)
During the event, Head of Legal Affair at the Directorate General for Oil and Gas Safriansyah said he hoped the new regulation would improve oil and gas industry safety.
Regulation of the EMR Ministry No. 4919 K/06MEM/2016 on 2016 EMR Sector Legislation and Regulation Drafting Program and Government Regulation No. 50/2012, which is related to oil and gas activities and simplification of laws and regulations were the two reasons for drafting the new regulation. “Several existing regulations have been integrated into the new regulation,” said Safriansyah as quoted from the official website of the Directorate General of Oil and Gas official website, Thursday (25/8).
The draft regulation addresses three main issues: oil and gas safety management system, design study, and technical inspection. Its 11 provisions concern oil and gas safety management systems, including policy, commitment and administration, risk management, operational control, and safety management. (Read: SKK Migas Questions Plans to Collect Work Safety Funds)
In terms of installation design study, the regulation also contains several provisions on installation design including good technical principles, use standards, domestic components, oil and gas safety facilities, and capacity building for Indonesian workers.
The clauses were included to give the government more control over the initial design of oil and gas installations. “We hope that there will be guarantee that installations and equipment have been installed properly,” Safriansyah said. (Read: Government to Establish National Committee on Oil and Gas Accidents)
The draft regulation also sets forth sanctions for breach of the provisions, which range from warnings to suspension and cancellation of business permits by the Directorate General of Oil and Gas.