New oil exploration a must: Association<\/p>\n
Wahyoe Boediwardhana, The Jakarta Post, Malang, East Java<\/p>\n
At the current pace of production, and without new exploration,
\nIndonesia's existing productive oil wells -- which account for
\nsome 25 percent of the country's estimated total reserves -- will
\nrun dry in the next 22 years, says the Indonesian Association of
\nGeologists.<\/p>\n
Indonesia produces about 1.1 million barrels of oil per day,
\nmostly coming from wells located in Sumatra, Kalimantan and West
\nJava.<\/p>\n
It is therefore high time for the government to increase
\nefforts to boost investment in the sector in order to find new
\nwells, association chairman Andang Bachtiar said on Thursday.<\/p>\n
Aside from that, a change in existing regulations would do
\nsome good as well, he added. Andang was speaking during a one-day
\nseminar on Sedimentology and Petroleum Geology in Indonesia at
\nthe Brawijaya University here.<\/p>\n
\"The policymakers in the oil and gas sector must change their
\nthinking about the exploration cycle. Oil and gas reserves in
\nIndonesia are not unlimited, but they are not fully explored and
\nthat should be the basis of our regulations,\" Andang said.<\/p>\n
\"The paradigm should be changed. We have plenty of potential
\nother than the existing explored oil wells.\"<\/p>\n
He cited as an example the need to revise current exploration
\ncontracts with investors, by among others, stipulating that
\ninvestors should open at least one new oil well within three
\nyears or risk fines. This was aimed at encouraging more fresh
\nexploration in untapped areas.<\/p>\n
Aside from that, Andang also pointed to the need for a
\ntransparent data policy. At present, a company is allowed to keep
\nits exploration data for 10 years.<\/p>\n
\"If the data can be publicly accessed, then other companies
\ncould make better exploration concepts. Ideally, the data should
\nbe open to the public and universities,\" he said.<\/p>\n
\"But there is the price for the information.\"<\/p>\n
Indonesia has been struggling to lure fresh investment into
\nthe country due mostly to the adverse investment and business
\nclimate here.<\/p>\n
Because of ever-increasing domestic consumption, Indonesia has
\nto import large amounts of crude oil and refined oil products to
\nmeet demand.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-oil-exploration-a-must-association-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}