RI to hold energy seminar in Russia

RI to hold energy seminar in Russia

Fitri Wulandari, The Jakarta Post, Jakarta

The Indonesian Embassy to Russia plans to hold a seminar in
September on the oil and gas industry to forge a bilateral
investment cooperation.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro,
who will attend the seminar, is scheduled to meet with Russian
energy officials as well as businessmen in the sector.

The seminar is part of a series of events organized by
Indonesia's Russian mission to celebrate its 50th anniversary.

Energy experts and officials are to discuss the future of the
two countries' oil and gas industry at the seminar.

Indonesian Ambassador to Russia Susanto Pudjomartono said the
Russian government welcomed Purnomo's planned visit, both in his
capacity as president of the Organization of Petroleum Countries
(OPEC) and as Indonesia's energy minister.

Purnomo's agenda includes visits to a number of oil and gas
projects in the country, including an oil refinery project in
Siberia.

The minister said that, as one of the largest oil and gas
producers, Russia played an important role in the world's energy
market. With huge oil and gas reserves, Russia could easily
increase production and cause a surplus in the market and lower
oil and gas prices.

He added that the Russian oil and gas industry would make the
energy market more competitive, which the government must
anticipate, as Indonesia relied heavily on its revenue from oil
and gas export.

In 2003, Russian oil reserves stood at 60 billion barrels,
second only to Saudi Arabia. Daily production averages between
8.7 to 8.8 billion barrels per day (bpd).

Russia plans to construct a 12,000-kilometer gas transmission
pipeline connecting Russia and West Europe, through which it
plans to export 30 billion cubic feet to Europe annually.

To lure more investment, the Russian government has introduced
various incentives to make the sector more attractive.

Investment in Russia's oil and gas market is projected to
reach $105 billion per year over the next three years.