Megawati to meet oil corporate leaders in Bogor

Megawati to meet oil corporate leaders in Bogor

The Jakarta Post , Jakarta

President Megawati Soekarnoputri is due to meet on Friday with
top executives of oil and gas companies operating in the country
amid worrying reports that Indonesia could become a net oil
importer in ten years.

During the second Stakeholders Meeting at the Bogor palace,
the President is expected to discuss various problems confronting
the industry and seek ways to boost investment in the sector.

Industry leaders have welcomed the occasion, expressing hopes
that there would be frank discussion during the meeting.

"The industry needs open communication on critical issues
facing the country. If we can create venues where difficult
issues can be analyzed and debated openly and frankly, everyone
should be better off," a senior official of a foreign oil company
said.

The first Stakeholders Meeting was held in February last year.

After experiencing a slump in 2002, the government claimed
that the industry recovered last year, citing as evidence the
rise in the number of oil and gas contracts signed.
Last year, the government awarded 16 oil and gas concessions.
This was a huge leap from 2002 when the government could only get
two contracts -- a new contract and an extension contract -- but
was still much lower than in 1997, when the government awarded a
total of 28 contracts.

Despite the rise in the number of contracts, critics noted
most contracts went to small and medium companies, while giant
Western companies remained reluctant to join the bidding.

Rachmat Sudibyo, chairman of oil and gas upstream regulatory
body (BP Migas) recently said Indonesia could become a net oil
importer in 10 years if there was no increase in the exploration
for new oil reserves and the public continued its lavish
consumption of oil.