Sustainable Management of Abandonment and Site Restoration (ASR) Funds in Oil and Gas Working Areas

DOI

10.2991/978-2-38476-218-7_65How to use a DOI?

Keywords

— Abandonment and Site Restoration (ASR); Post-Oil and Gas Operation Recovery; Production Sharing Contract (PSC)

Abstract

Oil and gas are natural resources that the state must manage following the provisions contained in the Constitution. Management of natural resources needs to consider aspects of benefit for the welfare of all Indonesian people who are now starting to be environmentally conscious. This change in legal awareness then gave rise to demands for changes in regulations regarding the management of profit-sharing contract funds from concessions that have been granted. Legal issues arise when the government requires an Abandonment and Site Restoration mechanism to maintain the quality of the environment in ex-mining areas. This article aims to provide a solution for managing ASR funds to optimize old mines whose output is decreasing and still need to provide reserve funds for environmental restoration. The study was carried out using doctrinal research methods. Legislative and conceptual approaches examine the effectiveness of implementing environmentally sound oil and gas mine management regulations. Friedman’s theory of legal effectiveness illustrates that the Indonesian government’s new policy cannot fully accommodate the financial capacity of oil and gas mines established before 2017. For this reason, there is a need for a sustainable ASR fund management mechanism that can support the operations of old mines.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Antonius Bintarto Ekoprasetyo
AU  - I Gusti Ayu K. R. H.
AU  - Lego Karjoko
PY  - 2024
DA  - 2024/02/22
TI  - Sustainable Management of Abandonment and Site Restoration (ASR) Funds in Oil and Gas Working Areas
BT  - Proceedings of the International Conference On Law, Economic & Good Governance (IC-LAW 2023)
PB  - Atlantis Press
SP  - 389
EP  - 393
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-218-7_65
DO  - 10.2991/978-2-38476-218-7_65
ID  - Ekoprasetyo2024
ER  -