Page 7 - AsianOil Week 41 2021

AsianOil SOUTHEAST ASIA AsianOil

Indonesia counts on higher prices

to stimulate oil production

POLICY THE Indonesia government is counting on Meanwhile, SKK Migas deputy for business
surging international oil prices to help boost support Rudi Satwiko said this week that higher
production, increase state revenue and lay the oil prices were also anticipated to help deliver the
foundations for the country’s long-term pro- government’s 2030 oil production target of 1mn
duction goals. barrels per day (bpd).
The head of upstream regulator SKK Migas,
Dwi Soetjipto, said this week that with oil prices Production positive
trading at three-year highs it was the perfect time “So, actually the goods are in the earth, it’s just
for producers to boost their output. a matter of finding investors, and we hope that
“For oil producers, this is an opportunity oil prices will also be attractive so that investors
to be as aggressive as possible in increasing and us regulators can be in sync,” Satwiko said at
production so as to increase revenue and a virtual event on October 14. He added: “Hope-
profit as much as possible. Thus, state rev- fully, with rising oil prices, and with the Job Cre-
enue will be very good,” Soetjipto told local ation Act, which makes it easier to get permits,
language news service Beritasatu on Octo- this can be done.”
ber 13. Indonesian President Joko Widodo enacted
The international Brent benchmark is cur- the Job Creation Act – commonly known as
rently trading at $80-85 per barrel, the highest it the Omnibus Law – on November 2, 2020. The
has been since October 2018. new law aims to attract investment and stimu-
Oil’s surge past the $80 threshold is not late the economy by simplifying the licensing
only expected to encourage greater invest- process and making central government policy
ment in the upstream but should also boost decisions.
the government’s oil and gas revenue this The Indonesian energy ministry’s director for
year, according to Soetjipto. He said: “There oil and gas development, Dwi Anggoro Ismuku-
is a target of IDR100 trillion [$7.09bn] in state rnianto, said the government’s 2030 target had
revenue [this year], we expect it to be above been arrived at after careful examination.
IDR150 trillion [$10.63bn].” “The government’s seriousness in achieving
The state’s revenue from upstream operations that, we have formed a task force, whose task is
had already reached IDR125 trillion [$8.85bn] to plan, monitor and supervise programmes,”
in the first eight months of the year, according to Ismukurnianto said, adding that his minis-
SKK Migas data. try was working with SKK Migas to accelerate
Soetjipto blamed the oil price rally on a com- upstream development plans.
bination of falling coal production as well as the SKK Migas has set a target of having 700 wells
high cost of development associated with renew- drilled across the country next year, news agency
able energies. He noted that the transition away Antara quoted oil consultant and former SKK
from coal had led to a surge in demand for oil Migas head Rudi Rubiandini during an address
and gas. at an SKK Migas media event on October 14.
He added: “[New and renewable energy] Rubiandini told attendees that SKK Migas
takes time to be cheaper than fossil energy. In had set a target of drilling around 500 wells on
line with the transition to clean energy, gas will the island of Sumatra in the Pekanbaru area. He
become a bridge. Gas demand will continue to said around 120 wells would be drilled in the
increase until 2035.” Kalimantan region.™

Week 41 14•October•2021 www. NEWSBASE .com P7