New Oil-and-Gas Safety Guidelines: No PLO? Prepare for a Poor Rating

In 2018, the Director of Oil-and-Gas Engineering and Environmental Affairs (“Director”) at the Ministry of Energy and Mineral Resources, which acts as the Head of Oil and Gas Inspections (“Inspection Head”), issued Decree No. 0196.K/18/DMT/2018 (“Decree 196/2018”) on Guidelines for the Implementation of Oil-and-Gas Safety Management Systems (Sistem Manajemen Keselamatan Minyak dan Gas Bumi – “SMKM”). As its title suggests, Decree 196/2018 primarily sets out the applicable guidelines for evaluations of compliance with the SMKM criteria and other safety regulations that are associated with the oil-and-gas industry.[1]