Page 4 - AsianOil Week 44 2020
P. 4
AsianOil SOUTHEAST ASIA AsianOil
Indonesia holds fast to
2030 production targets
POLICY INDONESIA is holding fast to its target of pro- Indonesia's oil deficit
ducing 1mn barrels per day (bpd) of crude and 2,000
condensate by 2030, despite the fact that produc- 1,800
tion and upstream investment continue to falter. 1,600
1,400
The head of upstream regulator SKK Migas, 1,200
Dwi Soetjipto, called on the country’s oil and gas 1,000
contractors this week to help the government ,000 bpd 800
reach its production target. It adds to a succes- 600
sion of calls in recent months on developers to 400
200
continue developing fields despite the financial 0
pressures they might be under. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
“The step towards 1mn barrels requires a Production Consumption Data: BP
work leap, so there will be risks and obstacles,
because what is being done is not business as Oil and gas lifting edged down 0.4% year on
usual,” Indonesian language media outlet Kom- year to 1.69mn barrels of oil equivalent per day
pas quoted him as saying during a November 2 (boepd) in the three months to September 30,
webinar. SKK Migas data showed last week. Oil produc-
Soetjipto said the regulator would work with tion amounted to 706,000 bpd, which was down
contractors to help improve their risk man- from the 745,000 bpd recorded in the same
agement and compliance and said SKK Migas period of 2019.
would serve as “a bridge” to help developers meet The coronavirus (COVID-19) pandemic
their organisational goals. has hit oil and gas contractors hard, as global
SKK Migas internal supervisor Taslim Yunus quarantine measures have depressed energy
said: “Developing the upstream oil and gas demand. SKK Migas said in October it was
industry with good governance and interna- working with several contractors with licences
tional standards is one of the keys to attracting due to expire in 2022 to help them meet their
investors to a sector that has high business risk.” work commitments despite the health cri-
The officials’ comments come, however, as sis. SKK Migas’ acting head of communica-
Indonesian oil and gas production continued to tions, Susana Kurniasih, said exploration and
slide in the third quarter on the back of depressed enhance oil recovery (EOR) work had been
energy prices, demand and investor interest. delayed across 13 blocks.
PTTEP’s plans for Erawan
delayed by Chevron’s arbitration
PROJECTS & THAILAND’S state-owned PTT Exploration Chevron, which signed its contract for
COMPANIES and Production (PTTEP) has said that US Erawan in 1971, is disputing the Department of
super-major Chevron’s arbitration with the Mineral Fuels’ claim that the company must foot
government over the Erawan natural gas field the decommissioning bill when the field reaches
will stop it from installing production facilities end of life in the early 2030s. The costs could run
this year. into the billions.
Chevron’s concession for Erawan expires in The super-major launched arbitration pro-
2022, with PTTEP set to take over after having ceedings in 2019, before suspending them as it
won the field’s contract in December 2018. sought to negotiate with newly appointed Thai
The super-major has, however, locked horns Energy Minister Sontirat Sontijirawong. When
with Bangkok over a retroactive law passed in talks broke down, Chevron restarted proceed-
2016 that requires operators to cover the decom- ings on October 3.
missioning costs of equipment they installed, The Erawan field is a key component of Thai
even if another developer takes over the field and gas production, with PTTEP having agreed to
associated equipment. produce at least 800mn cubic feet (22.66mn
P4 www. NEWSBASE .com Week 44 05•November•2020
