Continuing discussion from my last post, I would like to display
this slide that nicely illustrates Indonesian industry – this was presented by Evita H Legowo, Director General Of
Oil And Gas in February 2012:
The current state of Indonesian upstream is well described
by Satya W. Yudha , Member of
Commission VII ‐ The House of Representatives ‐ DPR RI in 2012 in this slide
And he also suggested that:
Upstream Oil & Gas:
• Government should set more competitive contract and
fiscal term and other economic policies to attract the investor in oil & gas
sector such as development of deep water basin, CBM, Mature field and frontier
areas which involve more complex processes, confronting high risks, frontier
technology and more complex project financing.
• In near term, to improve governance upstream management
capability, to review the competency of the management of upstream implementing
body (BPMIGAS) more efficient and transparent bureaucracy, standard accounting
system, Cost recovery mechanism.
RECENT
DEVELOPMENTS
According to SKKMigas, in 2012, the country drilled as
many as 119 exploration wells, the highest amount of explorations in Indonesia
in the past decade. Of those 119 wells, 52 were reported to possess total
reserves of 541 million barrels of oil as well as 5.4 trillion cubic feet of
gas.
This last February SKKMigas head, Rudi Rubiandini,
announced that oil and gas contractors would drill 1,178 development wells this
year. They are expected to generate 75,044 bpd of oil and 587 million
metric standard cubic feet per day of natural gas by the end of this year.
Workover campaigns and well services would be conducted on at least 1,904
existing oil fields, which is expected to boost oil output by 46,647 bpd and
gas output by 351 mmscfd. Thus, in total, all the projects would
contribute 14% to Indonesia’s overall oil production target and 11% to its
projected gas output in 2013. SKKMigas also announced later that it would gear up drilling
activities on the exploration wells of around 258 basins as well as launch an
18,752-kilometre, 2-D seismic survey and a 22,298-square-kilometre, 3-D survey.
Last May, it was announced
by SKKMigas that in 2015 there will be five major upstream oil and gas
projects that will provide significant additional production. These are: Indonesian
Deep Water Field Developmen (IDD), Banyu Urip Field, Masela, Muara Bakau Jangkrik
dan Jangkrik and North East as well as the Tangguh Train III.
Of course, the picture is far from rosy – and some major
players are indicating their dissatisfaction. It was reported in March, and confirmed
in June -- Hess Corp. and Anadarko Petroleum
Corporation are considering getting out.
The latest news can be found in my post News Update - Week 24, 2013; Please, follow our Blog – We will update every week….
And here are some useful links that give more
information:
- The dissolution of BPMIGAS — impact and consequences by Latham & Watkins LLP
- Oil and Gas in Indonesia. Investment and Taxation Guide by PwC August 2011 - 4th edition
- Detailed report on oil and gas in the country is provided in this Indonesian Energy Report by Norton Rose
- Challenges in Indonesia’s Oil and Gas Industry by Global Business Guide gives some description of Oil and Gas Industry and Law
- Indonesia Oil and Gas Laws by Oentoeng Suria & Partners (OSP), an Indonesian commercial law firm
- Getting the Deal Through – Gas regulation 2008 by Soewito Suhardiman Eddymurthy Kardono
- A little bit outdated but more or less full characteristic is presented on Indonesia, Oil & Gas Profile by A Barrel Full
- US Energy Information Administration page on Indonesia has fresh information and full report on Indonesia sector may be uploaded here
- Geologic Basins Map is provided by Indonesian Petroleum Association that also lists Indonesian Law documents
