For a commercial discovery to progress from the Exploration Phase to the Exploitation Phase in Indonesia, a plan of development (“POD”) must be approved by the Minister of Energy and Mineral Resources (“MEMR”), with consideration also given by SKK Migas (an Indonesian Government agency charged with regulating the upstream oil and gas industry).
Regulatory documents are published by SKK Migas on how Contractors should prepare and submit PODs. The POD Work Guidelines published in 2010 explicitly detail how a company should define and report Reserves. These guidelines differ significantly from widely used systems such as the SPE’s Petroleum Resource Management System (“PRMS”) or the Canadian Oil and Gas Evaluation (“COGE”) Handbook. In August 2018, updated Work Guidelines were published in which Reserves reporting is more in line with the aforementioned systems.