Regulation of the Minister of Energy and Mineral Resources No. 01/2011 concerning technical guidance for offshore oil and natural gas installation removal

Article 1 installation removal is meant: In this Minister Regulation there are defini- a. to guarantee the safety of oil and natural gas; tions as follows: b. to guarantee the implementation of environmental 1. Oil and Natural Gas, Exploration, Exploitation, Op- management; erational Territory, Minister. Executive Body, are c. to keep offshore installation condition as state as meant in Article 1 Law Number 22 Year 2001 property; concerning Oil and Natural Gas. d. to safeguard sailing; and 2. Offshore installation is oil and natural gas installa- a. to optimize the usage of state property. tion built offshore to carry out oil and natural gas business activities. 3. Removal is the work of cutting off parts or whole Article 4 of installation and transferring/transportation if re- Offshore installation removal is obliged to be moved !':tuff to der.ided lor.ation_ done by using technology suitable to Indonesian na- 4. Offshore is area that covers Indonesian water and tional standard or regional standard or international continent shelf _ standard and good engineering rule as well as fulfill- 5. Mudline is boundary line of soil surface that can ing workplace safety aspect and workplace health as change due to sea current movement. well <IS environmental protection. 26 BlJsiflE'SS News 811115-27-2011

Article 5 l. procedure of removal, transfer, and/or trons- The execution of offshore installation removal portation; as meant in Article 4 is done by Contractor accord- j. risk onolysis in the execution of removal, trans ingly to the law and regulation. fer, and transportation; k , procedure of workplace safety and health as CHAPTER 11 well as environmental protection in executing REMOVAL PLANNING removal, transfer, and transportation;

Article 6 I. implementation schedule; m. emergency respnnse plan: (1) Removal of offshore installation Is done by Con- n. security plan for left facilities and/or related to tractor after obtaining approval for offshore instal- post-remnval; tenon removal from Director General. O. transfer and/or storage location of offshore in- (2) To get approval for offshore installation removal stallation removal result. as meant at paragraph (l), Contractor submit re- quest to Director General through Executive Body

Article 7 by completing planning document for offshore in- (1) Director General does evaluation on planning doc- stallation. ument of offshore installation removal in 30 (thir- (3) Planning document for offshore installation re- ty) working days at the latest after the document moval as meant at paragraph (2) involves: is received completely . . a. list of instruments at offshore installation (2) In order to evaluate and to clarify planning docu- planned to remove; ment of offshore installation removal as meant at b. latest map of offshore installation location paragraph (1), Contractor is obliged to carry out with other activities; presentation of the document. c. possessed environmental documents; (3) In case the result of evaluation and clarification d. statement letter that states all facilities related of planning document for offshore installation re- to platform have been separated from con- moval is stated complete and correct, Director cerned installation; General gives approval for offshore installation re- e. early design or re-qualification and rnodrfica- moval in 10 (ten) working days at the latest. I tion analysis ever done; (4) Approval foe offshore installation removal is given f. operational history log as well as result of an- nual and/or special inspection; with validity 3 (three) years at maximum. (5) Removal approval as meant at paragraph (4) is I \ ~ g. chosen alternative of removal technology; not valid if change on planning occurs or if after 3 h. well closing procedure (Plug and abandon- (three) years the removal of offshore installation \ I , rnent), __ ~,_L_~ is not yet executed. I I I Business News 8111/5-27-2011 127 (6) After getting approval for offshore inst<'lll:ltion re- moval. Contractor is obliged: moval as meant at paragraph (4), Contractor is a. to implement the socialization of removal, trans- responsible for the wellbeing of the offshore in- fer, and transportation activities plan to related stallation. society and instances; b. to install navigation signs around the removal 10-

Article 8 cation; In arranging planning document for offshore c. to make sure that all wells are closed permanently installation removal as meant in 'Arti~le 6, Contractor accordingly to Indonesian National Standard or is obliged to have planning operational staff with suit- regional standard or International Standard, and able competency and qualification or using national good engineering rules: company service, which has obtained Certificate of d. to make sure that all infrastructures related to off- Registration from Director General. shore installation have been cut off; I: e. to make sure that all piping and other instrument CHAPTER III systems are free from hazardous and poisonous RFMOVAL EXECUTION I materials;

Article 9 I. f. to make sure that offshore installation are free (1) Based on approval for offshore installation remov- I" from hazardous and poisonous materials waste. al as meant at paragraph (7), Contractor is obliged I to prepare the execution of offshore installation removal soon. i Article 12 (1) In carrying out the execution of removal, Contrac- (2) In 7 (seven) working days at the latest before the tor is obliged: el(e~ution of offshore installation removal. Con- a. to cut conductor 5 (five) meters under mudline tractor is obliged to inform Director General. (3) The execution of offshore installation removal is or parallel to sea bottom in case distance be- obliged to use qualified instruments that have met tween mudline and see bottom is less than 5 standards of work safety accordingly to the law (five) meters; and regulation. b. to cut conductors to segments with 12 (twelve) meters maximum length;

Article 10 c. to remove top side facility by cutting welded In carrying out the execution of offshore in- joint between pole with deck foot; stallation removal as meant in Article 9, Contractor is d. to cut pole and its seating 5 (five) meters un- obliged to have planning operational staff with suit- der mud line or parallel to sea bottom in case able competency and qualification or using national distance between mudline and see bottom is company service, which has obtained Certificate of less than 5 (five) meters; Registration from Director General. e. to cut pipeline above riser bend point and at 3 (three) meters from installation foot base; f. to blank off left pipeline and other end of it

Article 11 buried 1 (one) meter or protected with safety Before carrying out offshore installation re- material. 28 Business N~ws 811 1(5-27-2011 g. to cut pipeline that will be transferred into TRANSITIONAL PROVISIONS short parts with 9 (nine) meter up to 12 Article 15 (twelve) meters length. Contractor who has done the activities of off- (2} Contractor is obliged to place removal result at shore installation removal before the enactment of approved storage location. this Minister Regulation is obliged to report the activi- (3) Contractor is obliged to carry out sea bottom ties to Director General through Executive Body in 1 clearance from removal work waste or from rate (one) year at the latest after the enactment of this period production activities with minimum cover- Minister Regulation to have evaluation done for the age of clearing area accordingly to forbidden area issuance site clearance certificate. with 500 (five hundreds) meters. (4) Contractor is obliged to make sure sea bottom is CHAPTER VI clean from waste of removal work by using site FINAL PROVISIONS scan sonar system and/or test trawling. Article 16 This Minister Regulation starts to take effect

Article 13 since the enactment date. Contractor is obliged to guarantee work safe- For everybody to acknowledge this regula- ty and health as well as environmental management tion, ordering the enactment of this Minister Regula- at the time of removal, transfer/transportation and tion to be placed in the State Gazette of the Republic storage of offshore installation removal result. of Indonesia. CHAPTER IV Enacted in Jakarta FOUNDING AND MONITORING on 7 January 20i 1

Article 14 THE MINISTER OF ENERGY AND MINERAL RE- (1) Dir!'!ctnr G!'!oer;tl rine~ the founriing anri mnnitnr- SOURCES. ing upon the implementation of offshore installa- Sgnd. tion removal accordingly to the rules and regula- DARWIN ZAHEDY SALEH tions. (2) Contractor is obliged to report to Director General Promulgated in Jakarta through Executive Body concerning the implemen- on 7 January 2011 tation of offshore removal in 14 days at the latest THE MINISTER OF LAW AND HUMAN RIGHTS after removal activities have been completed. THE REPUBLIC OF INDONESIA (3) If the report can be accepted as meant at para- Sgnd. ar;tph (7) haseri nn t!'!chnical evaluation. in 30 PATRIALIS AKBAR (thirty) working days at the latest after report has been accepted, Director General issues site clear- THE STATE GAZETTE OF THE REBULIC OF ance certificate. INDONESIA YEAR 2011 NUMBER 4 CHAPTER V (A)