Page 6 - AsianOil Week 48 2020

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Indonesia launches upstream conference

POLICY THE Indonesian government launched the SKK Migas has previously warned that with
2020 International Convention on Indonesian domestic oil consumption projected to climb to
Upstream Oil & Gas (IOG 2020) with the goal 2.2mn bpd by 2030 and to 3.9mn bpd by 2050,
of engaging the upstream industry in discussion the country is on the verge of becoming danger-
around the country’s 2030 production targets. ously dependent on foreign suppliers.
Jakarta has set a target of producing 1mn But the challenges of maintaining produc-
barrels per day (bpd) of oil and 12bn cubic tion, let along boosting it, were highlighted by
feet (339.84mn cubic metres) per day of gas in SKK Migas’ Kalimantan and Sulawesi regional
2030. The government has set these targets as a office this week. Local head Sebastian Julius said
means of engaging the country’s contractors to that while local production was ahead of govern-
tackle the issue of natural field declines more ment targets, natural fields declines were proving
proactively. challenging to curtail.
“We have long heard the stigma that Indo- He said regional oil production in the first 11
nesia is a rich oil and gas country. However, the months of the year had averaged 82,711 bpd, ahead
fact is that Indonesia has been a net oil importer of the government’s target of 78,947 bpd. Gas pro-
since 2003,” SKK Migas head Dwi Soetjipto said duction amounted to 1.7 bcf per day (48.14 mcm)
at the virtual opening of IOG 2020 on Decem- compared with the government’s target of 1.6 bcf
ber 2. The official added that the country needed (45.31 mcm) per day, local daily Tribun Kaltim
to avoid becoming complacent in its efforts to quoted him as saying on December 1.
reverse production declines. While noting that state-owned Pertamina
“We must realise that without a change in Hulu Mahakam (PHM) had produced 560
mindset and a willingness to move out of the mmcf (15.86 mcm) per day – 48% of the total –
comfort zone, these efforts will only become Julius added that the company’s gas production
business as usual,” Soetjipto said. He added: “If had shrunk 14.7% year on year.
this target is achieved, the upstream oil and gas “The condition of reserves is naturally
sector will record the largest oil and gas produc- decreasing. Maintaining the level of production
tion in Indonesia’s history.” is really an extraordinary struggle,” he said.™

Egco applies for Thai LNG import licence

PROJECTS & THAI power utility Electricity Generating in 2018, with the chilled fuel set to account for
COMPANIES (Egco) has applied to the Energy Regulatory 70% of the country’s gas supplies compared with
Commission (ERC) for a liquefied natural gas around 13% in 2018.
(LNG) import licence. LNG may also gain ground more quickly in
The company applied earlier this month for the short term, with energy planners reportedly
permission to import 250,000 tonnes per year planning to scale up the use of two import termi-
(tpy) to feed three gas-fired thermal power nals to offset an anticipated production blip from
plants (TPPs), company president Thepparat the offshore Erawan gas field from 2022.
Theppitak told the Bangkok Post on November The Bangkok Post reported in October that
30. The plants include the 256-MW Banpong the government wanted to use spare capacity at
TPP in Ratchaburi, the 121-MW Klongluang the Map Ta Phut and Nong Fab LNG import ter-
TPP in Pathum Thani and the 120-MW Egco minals at Rayong to supply gas to TPPs owing to
TPP in Rayong. anticipated delays in PTT Exploration and Pro-
Theppitak said the company intended duction (PTTEP) assuming control of the field
to import LNG via a mix of long and short- from Chevron.
term contracts to offset the risks posed by PTTEP has said the US super-major’s arbi-
volatile pricing. The company may work tration with the government over Erawan will
with other LNG importers to combine their stop it from installing production facilities this
supply contracts. year. Chevron’s concession for Erawan expires in
Despite the country producing gas from 2022, with PTTEP set to take over after having
fields in the Gulf of Thailand, as well as won the field’s contract in December 2018.
importing it by pipeline from neighbouring The super-major has, however, locked horns
Myanmar, declining output is driving the with Bangkok over a retroactive law passed in
country to rely increasingly on LNG to sustain 2016 that requires operators to cover the decom-
its rising fuel demand. missioning costs of equipment they installed,
Thai LNG imports are projected to climb even if another developer takes over the field and
to 27mn tonnes in 2037 from 4.4mn tonnes associated equipment.™

P6 www. NEWSBASE .com Week 48 03•December•2020