Regions fret over lower oil, gas output<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The country's oil and gas producing regions are now worried that
\noutput this year will continue to decline due to lack of
\ninvestment by oil and gas companies.<\/p>\n
"Lack of investment has been our main concern," said Yan
\nSuryana, the executive director of the Oil and Gas-producing
\nRegions Consultation Forum.<\/p>\n
He feared that the government's 2003 oil output target of 1.27
\nmillion barrels of oil per day (bpd) could not be met.<\/p>\n
Last year, the government set a target of 1.32 million bpd,
\nbut actual output was only 1.2 million bpd.<\/p>\n
The government gas output target this year is 6.8 billion
\nmetric standard cubic feet per day, compared to actual output of
\n6.1 billion metric standard cubic feet per day last year.<\/p>\n
Yan said that it was high time now for regional governments to
\nlaunch measures to attract new investment in the oil and gas
\nsector.<\/p>\n
He did not explain why investment had been slowing down, but
\nexperts have said that there were a number of factors, including
\nsecurity problems in certain areas like the troubled Aceh
\nprovince, conflicts with local people, and local government
\npolicies that discouraged investors.<\/p>\n
The increasing lack of investor interest in the country's oil
\nand gas sector, which had been the primary source of revenue for
\nthe country's ailing economy, can be seen from the fact that only
\none new oil and gas contract was signed by the government last
\nyear out of the 14 oil and gas blocks being offered.<\/p>\n
The only block that was signed was the Muara Bakau oil and gas
\nblock in the Makassar Strait.<\/p>\n
If this situation continues, the future of the country's oil
\nand gas industry would be at stake, and this would eventually
\naffect government revenue.<\/p>\n
But Yan said that despite the current lower oil and gas
\noutput, revenue for both the central government and local
\ngovernments would likely be unaffected because of the relatively
\nhigh oil prices on the international market.<\/p>\n
The current state budget assumes an average oil price of US$22
\nper barrel. Prior to the Iraq war, however, the price jumped to
\naround $40 per barrel, although it has now declined to around $25
\nper barrel.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/regions-fret-over-lower-oil-gas-output-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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