The Green Investment Effect on the Regulation of Idle Well Management Cooperation Contract Schemes

Sang Ayu Putu Rahayu; Rahayu Fery Anitasari; Dina Silvia Puteri; Nathanael Bayu Ajie Pratomo; Anak Agung Ayu Diah Setyawati

doi:10.15294/jllr.v5i4.4481

Authors

Sang Ayu Putu Rahayu Faculty of Law, Universitas Negeri Semarang Author https://orcid.org/0000-0001-6409-063X
Rahayu Fery Anitasari Faculty of Law, Universitas Negeri Semarang Author https://orcid.org/0000-0001-9650-9685
Dina Silvia Puteri Faculty of Law, Universitas Negeri Semarang Author https://orcid.org/0009-0007-6984-5975
Nathanael Bayu Ajie Pratomo Department of Public Governance, Tilburg University Author https://orcid.org/0009-0004-3679-0136
Anak Agung Ayu Diah Setyawati Faculty of Law, Universitas Negeri Semarang Author https://orcid.org/0000-0002-8507-5399

DOI:

https://doi.org/10.15294/jllr.v5i4.4481

Keywords:

green investment, idle well, upstream oil and gas

Abstract

This research delves into legal issues surrounding the impact of green investment on cooperation contracts managing idle wells in Indonesia, Malaysia, and Equatorial Guinea. In alignment with green investment principles, the Indonesian Government has implemented various schemes to enhance the effectiveness of exploration and exploitation activities in the oil and gas sector. Presently, efforts to boost oil and gas production involve reactivating idle wells, yet there is a regulatory gap concerning the transfer of this work to cooperation contract contractors. To address this, the study compares how Malaysia and countries in the Guinea Region, adopting green investment practices, manage idle wells. Employing a socio-legal methodology, the research draws on field research, legal sources, articles, journals, and related news. The findings highlight the crucial role of acknowledging the ongoing significance of oil and gas while recognizing the imperative to transition sustainably, exemplified by Indonesia's commitment and the potential application of the Production Sharing Contract (PSC) scheme in shaping the future of non-fossil energy sources in the realm of upstream oil and gas investment.

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