Page 6 - AsianOil Week 48 2021

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Indonesia weighs emission

commitments against energy needs

The government has said it will not walk away from the upstream, despite its carbon neutrality
pledge, and will focus on low-emissions technologies to offset a rise in oil and gas production

COMMENTARY INDONESIA remains committed to its oil and Upstream bid round
gas production goals for 2030 and beyond, even The Indonesia Energy Ministry launched its lat-
though it has also pledged to reduce its carbon est upstream exploration bid round this week,
WHAT: emission to net zero by 2060. inviting offers for eight new blocks.
Indonesia is banking The government has insisted that the The acreages contain at least 500mn barrels of
on CCUS projects in the upstream sector can remain a key pillar of the oil and 22 trillion cubic feet of gas, the ministry’s
upstream. national economy and is counting on low-emis- director general of oil and gas, Tutuka Ariadji,
sion technologies – such as carbon capture, uti- said on November 29.
WHY: lisation and storage (CCUS) – to help minimise Speaking during the first day of the sec-
The country wants to the oil and gas industry’s footprint. ond annual Indonesian international oil and
ramp up oil and gas Jakarta has set a 2030 production target gas conference IOG 2021, Ariadji said: “We
production in the coming of 1mn barrels per day (bpd) of oil and 12bn invite potential investors who are interested,
years. cubic feet (340mn cubic metres) per day of who have technical capabilities and have
gas. The government remains committed to good financial ability to participate in this
WHAT NEXT: these figures despite this year’s oil lifting target bidding round.”
Pertamina is investing having been reduced in October from 705,000 The official said the government would offer
in the technology’s bpd to 665,000 bpd, while the gas lifting target production-sharing contracts (PSCs) for the
commercial viability. was revised down from 5.64 bcf (159.72mn Bertak Pijar Puyuh block in Sumatra, North
cubic metres) per day to 5.53 bcf (156.61 Java’s North Ketapang and Agung I blocks, and
mcm) per day. South Sulawesi’s Agung II block.
Banking on CCUS technology, whose com- The winning bidders, to be decided via a
mercial viability as part of Indonesian projects “direct proposal tender”, will be expected to
remains unknown, Indonesia has announced its cover development costs in exchange for a
latest exploration bid round. greater share of production.

P6 www. NEWSBASE .com Week 48 03•December•2021