Aceh community oil well production management

Community-owned oil wells in Aceh Timur, Indonesia, began producing approximately 2,800 barrels of oil per day (BOPD) through natural flow without the use of pumps. This high volume of production created logistical difficulties for local authorities and residents regarding containment and storage. The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) called for rapid intervention to manage production safely and in accordance with regulations.

Following these developments, the Indonesian Minister of Energy and Mineral Resources (ESDM) approved cooperation for the production of 40 community oil wells across East Aceh and North Aceh. This move aims to implement ESDM Ministerial Regulation Number 14 of 2025 to ensure production is managed legally and safely.

The approval involves three specific agreements: Medco E&P Malaka will collaborate with PT Aceh Timur Energi dan Mineral and the Koperasi Produsen Tata Seuramo Peureulak for 29 wells in East Aceh, while PT Pema Global Energi will work with the Koperasi Produsen Keuramat Jaya Energy for 11 wells in North Aceh. Mawardi Nur, Head of the Aceh Oil and Gas Management Agency (BPMA), described the approval as a critical step in transitioning from the verification phase toward active production cooperation.

In a broader regulatory context, the Ministry of ESDM has introduced Regulation No. 11/2026, which mandates the use of Indonesian National Standards (SNI) for quantity assurance systems. This regulation is intended to ensure transparency and accountability in upstream oil and gas data from production to delivery points.