FGD Held on Rig-to-LNG Terminal, Rig-to-CCS, and Rig-to-Fish Farm Potential in Indonesia

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21 February 2024 – The Coordinating Ministry for Maritime Affairs and Investment (CMMAI) facilitated a focus group discussion (FGD) to support the potential for pilot project financing of Rig-to-LNG Terminal (R2LNG), Rig-to-CCS (R2CCS), and Rig-to-Fish Farm (R2FF) reutilization methods in Indonesia by the Republic of Korea (ROK).

In attendance at this FGD were representatives of key Indonesian stakeholders in offshore rig reutilization, including the CMMAI, the Ministry of Energy and Mineral Resources, the Ministry of Marine Affairs and Fisheries, the Ministry of Finance, the Ministry of Transportation, the Ministry of Environment, KIORCC, PT Perusahaan Listrik Negara Energi Primer Indonesia, PT Pertamina (Persero), PT Pertamina Hulu Energi (PHE), PT PHE Offshore North West (PHE ONWJ), PT Pertamina Hulu Kalimantan Timur (PHKT), PT Pertamina EP, and the Naval Hydro-Oceanographic Center.

There are more than 600 offshore platforms in Indonesian waters, with over 100 of those retired or at the end of operations. Decommissioning is an urgent matter in Indonesia to support maritime navigation and safety. However, abandonment and site restoration (ASR) funding for a majority of the retired platforms are unavailable. Due to this issue, innovative methods in decommissioning and investments are necessary to tackle the next phase of offshore platform operations once upstream productions are completed.

This FGD touched base on various topics pivotal to providing necessary data as the basis of ROK funding, including platform selection, business operations, permit processes, environmental needs, implementation methodology, and more. The target locations, within the ONWJ and PHKT blocks, have a high potential for reutilization, especially for R2LNG and R2CCS plans due to shore proximity and surrounding demand. R2FF, on the other hand, currently has the highest potential in implementation in Indonesia. 

Both Indonesian and Korean sides share high ambitions to implement these reutilization projects, as a step forward for Korean-Indonesian bilateral collaborations, following the completion of the Rigs-to-Reefs government-to-government pilot project in November 2022. During this FGD, it was highlighted that having pilot projects in place further provides the opportunity for Indonesia to not only secure its maritime navigation, but also build a business scheme for reutilization, and also develop stronger policies supporting rig reutilization operations in the future.

KIORCC is prepared to continue to facilitate both Korean and Indonesian needs and interests to expand their respective offshore industries, and supports the budget proposal process of these new rig reutilization methods this year.