Page 5 - AsianOil Week 07 2021
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AsianOil SOUTH ASIA AsianOil
(1.1mn bpd) and Basrah Heavy 28% (782,000 to consider taking space in the new Padur cavern
bpd), the sources said. Basrah Medium has an in the southern state of Karnataka. ISPRL com-
API gravity of 27-29. pleted the process of filling a 5.86mn barrel allo-
cation at the nearby Mangalore facility during
Access to Asia the same month.
Storing oil in Asia has been popular among Gulf In October 2020, the Indian Cabinet gave
state oil firms, particularly Abu Dhabi National permission for ADNOC to export crude it has
Oil Co. (ADNOC). The company has had an sitting in storage held by Indian Strategic Petro-
agreement to store up to 6.29mn barrels at the leum Reserves Ltd. (ISPRL). The reserve has a
Kiire oil terminal in southern Japan in place current crude storage capacity of 4.55mn tonnes
since 2009. It also agreed terms with Japan’s (33.4mn barrels) and is full. Meanwhile, the
Agency for Natural Resources and Energy to commercial quantity – the volume available for
store more than 8mn barrels of ADNOC crude, marketing by ADNOC – was recently increased
expanding and extending a deal that had lapsed from 35% to 50%. India sees this as an opportu-
a year earlier. nity to turn the country into a hub for re-export,
Meanwhile, a memorandum of understand- while ADNOC has around 17mn barrels avail-
ing (MoU) was signed in November 2019 with able for sale from strategic locations in India.
Indian Strategic Petroleum Reserves Ltd (ISPRL)
SOUTHEAST ASIA
Indonesia holds on to shale oil dream
POLICY INDONESIA’S shale oil potential may have director, Moshe Rizal, echoed this senti-
fallen off the radar in recent years, but the gov- ment, noting that exploration efforts were
ernment still hopes the unconventional sector likely to take 5-10 years to deliver results.
will play a role in boosting the country’s long- Rizal added that the coronavirus (COVID-
term energy prospects. 19) pandemic had created uncertainty
Upstream regulator SKK Migas said this among upstream players, further compli-
week that it had included shale oil development cating the process.
in its evaluation of the country’s unconventional Rizal said the government needed to work
oil and gas (MNK) potential. on attracting new investors into the country’s
“Shale oil has been included in the MNK unconventional oil and gas scene, given the high
evaluation and is a prospective reserve to be cost of development as well as the industry’s cur-
developed,” the acting head of SKK Migas’ com- rent lack of experience.
munication division, Susana Kurniasih, told “Investors must be sought first. The existing
local news outlet Kontan on February 15. The [oil and gas contractors] do not necessarily want
agency has so far limited its evaluation of uncon- to develop the shale and tight sand oil and gas
ventional oil and gas resources to the Central potential in their fields,” Rizal said.
Sumatra Basin area. SKK Migas has already welcomed interest
While Kurniasih declined to provide any from one such investor, with US shale developer
estimates for the country’s shale oil resource, she EOG Resources applying last year for a member-
said it was unlikely to contribute to the govern- ship with the regulator.
ment’s 2030 oil production target of 1mn barrels SKK Migas planning deputy Jaffee Ari-
per day (bpd). zon told local daily The Jakarta Post in
“Because it still requires massive exploration September 2020 that the two sides, in part-
activities to obtain supporting data, the contri- nership with the Indonesian government,
bution of shale will not be significant in efforts to had launched a two-year shale oil study in
increase production in 2030,” she said. December 2018 that had “found good early
The Association of National Oil and Gas indications of potential unconventional oil
Companies’ (ASPERMIGAS) executive and gas in Indonesia”.
Week 757 18•February•2021 www. NEWSBASE .com P5
