Investment in oil still promising: Abda'oe<\/p>\n
JAKARTA (JP): Investment opportunities in upstream oil
\nexploration and production remain promising, especially in the
\neastern parts of Indonesia.<\/p>\n
The president of state-owned oil company Pertamina, Faisal
\nAbda'oe, said that only 36 out of the country's 60 sedimentary
\nbasins have been explored.<\/p>\n
Most of the unexplored basins are located in the country's
\neastern provinces.<\/p>\n
The 60 sedimentary basins are estimated to contain hydrocarbon
\nresources of about 66 billion barrels of oil and 266 trillion
\nstandard cubic feet of natural gas.<\/p>\n
\"In addition, only 14 of the 24 basins with proven reserves
\nhave been developed,\" Abda'oe told some 600 foreign and local
\nbusinesspeople at an international seminar on Indonesia's economy
\nlast week.<\/p>\n
Fresh funds<\/p>\n
He said that oil exploration must be intensified, not only to
\nreplace depleting oil and gas reserves but also to add new proven
\nreserves.<\/p>\n
The production of crude oil, he said, has to be maintained at
\n1.5 million barrels per day to prolong \"the country's status as
\nan oil exporter and to delay the possibility of Indonesia
\nbecoming a net oil importer.\"<\/p>\n
Abda'oe said that investment opportunities in downstream oil-
\nbased industrial ventures also remain promising, given the sharp
\nincrease in domestic demand for refined oil products.<\/p>\n
He said Indonesia will need about US$8 billion in fresh funds
\nto boost the production capacity of its existing refinery plants
\nin the next five to 10 years.<\/p>\n
In his speech at the two-day seminar, Abda'oe said domestic
\ndemand for petroleum-based fuels will increase to 54 million
\nkiloliters, equivalent to 337 million barrels of oil, in 1999
\nfrom 44 million kiloliters, or 278 million barrels, in 1996.<\/p>\n
He estimated the annual supply for refined fuels on the
\ndomestic market is expected to experience a shortage of about 44
\nmillion barrels of oil by 1999.<\/p>\n
\"It means that Indonesia has to boost its refining capacity to
\nmeet the shortage,\" he said.<\/p>\n
The growing demand for petroleum products at home is estimated
\nto slash Indonesia's exports of crude oil by 15 percent to 263
\nmillion barrels per annum in 1999 from 301 million barrels last
\nyear.<\/p>\n
Abda'oe said the country's exports of petroleum-based products
\nwould most likely drop by 30 percent to 37 million barrels in
\n1999 from 53 million barrels last year.<\/p>\n
He, however, said that the increase in natural gas production
\nis expected to push up exports of liquefied natural gas to 28
\nmillion tons in 1999 from 25 million tons last year.<\/p>\n
Liquefied petroleum gas exports are also projected to record a
\nmoderate increase to 2.7 million tons in 1999 from 2.5 millions
\nin 1995.<\/p>\n
According to Pertamina, Indonesia's proven oil reserves are
\nestimated at 9.5 billion barrels, with a production capacity of
\n1.6 billion barrels per day in 1996.<\/p>\n
Gas reserves are estimated at 114.8 trillion standard cubic
\nfeet while current production capacity is about eight billion
\ncubic feet per day.<\/p>\n
Abda'oe said that the country's refining capacity, which was
\nonly 77,000 barrels of crude per day in 1969, has now reached
\n990,000 barrels per day. (hen)<\/p>",
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