10 September 2025 – The Korea–Indonesia Research Cooperation Center (KIORCC) convened an Advisory Committee on Rig Reutilization and LNG Infrastructure Development, bringing together stakeholders from government, academia, and industry to exchange perspectives on opportunities, challenges, and regulatory frameworks for repurposing offshore oil and gas platforms in Indonesia.
The session began with a review of milestones achieved in the Rig-to-LNG (R2LNG) initiative, including the signing of key agreements, issuance of foundational documents, project inception activities, site visits, and earlier stakeholder workshops. Two scenarios were presented: developing a Floating Storage Regasification Unit (FSRU) and creating a Floating Storage Unit (FSU) with a platform-mounted regasification system. One of the advisory committee members, Mr. Erie Sudarmono, highlighted practical considerations regarding continuous LNG delivery in the scenarios, particularly since the pilot is designed for a limited period.
Potential candidate platforms in the ONWJ area were introduced, though participants emphasized that formal approvals from authorities such as the Ministry of Finance, SKK Migas, and the Ministry of Energy would be necessary before implementation. Business models, supply arrangements, and environmental requirements were also discussed, with PGN SAKA also noted as a strong candidate site due to its declining production and proximity to major consumers.
The dialogue also broadened to cover flare gas utilization, where potential collaborations with Pertamina and Lemigas were shared. Concepts such as modular mini-LNG and barge-mounted liquefaction were introduced as flexible solutions to capture associated gas, though regulatory challenges remain since flare gas falls outside conventional production-sharing frameworks. Lemigas is advancing early designs for flare gas-to-LNG conversion at select offshore sites.
Another advisory committee member, Mr. Nanang Abdul Manad, shared updates on the national decommissioning program, noting that Indonesia hosts around 649 offshore platforms, many of which are aging and costly to retire. Reutilization was underscored as a cost-efficient alternative, particularly since over 100 platforms lack Abandonment and Site Restoration (ASR) funds, leaving the state with potential liabilities. Multiple reuse pathways were highlighted including Rig-to-Reef (R2R), Rig-to-LNG (R2LNG), Rig-to-CCS (R2CCS), and Rig-to-Fisheries Facilities (R2FF), with academic institutions such as ITS contributing to feasibility studies. He emphasized the importance of collaboration and regulatory integration, given that decommissioning is often viewed as a high-cost, non-revenue activity.
The Advisory Committee also touched on carbon capture and storage (CCS/CCUS), with Lemigas and the Directorate General of Oil and Gas presenting mapping results of more than 20 potential hubs, including Arun and Sunda Asri, which could play a pivotal role in long-term CO₂ mitigation strategies and industrial development.
In closing, the advisory committee emphasized the need for a more coordinated, one-door regulatory approach to resolve permit overlaps and accelerate project realization. Government leadership will be key in setting clear roadmaps and streamlining approvals, much like SKK Migas does in oil production oversight. With demand in West Java rising while eastern resources remain underutilized, stakeholders agreed that platform reutilization, flare gas capture, and LNG infrastructure development represent practical pathways to address Indonesia’s energy needs while advancing its energy transition goals.
