The duo of ESDM Minister Ignasius Jonan and Deputy Minister of Energy and Mineral Resources Arcandra Tahar is concentrating on increasing oil and gas production. This focus is related to the reduction in the number of exploration working areas (WA / WK), exploitation WA, and non-conventional WA.
Ignasius Jonan
Currently, there are 288 oil and gas fields that are worked on by Cooperation Contract Contractors (KKKS). In detail, 85 WA that have been producing (exploitation), 147 WA that have not been producing (exploration) are conventional, and 56 WA for non-conventional exploration. This means that there is a very drastic decrease. Because, at the beginning of this year alone, there were 312 CAs that were worked on by KKKS.
ESDM Ministry Secretary-General Teguh Pamudji said Jonan had discussed efforts to increase national oil and gas production with SKK Migas. One of the topics for discussion was the cutting of 100 exploration permits to just six permits.
Blogger Agus Purnomo in SKK Migas
"The plan of development is accelerated so that investment comes in,".
The second option is the revision of Government Regulation No. 79/2010 concerning Cost Recovery. So far, investment has always been linked to the price of oil. In fact, the government cannot control fluctuations in world oil prices.
"If we cannot control prices, we must be smart in calculating the cost," said Teguh.
Director-General of Oil and Gas Wiratmaja Puja is optimistic that the revision of cost recovery rules will increase interest in oil and gas investors. Moreover, the government has also relaxed the cooperation scheme by providing Netz sliding scale or gross split options.
The difference between the two methods lies in the contract extension period, the percentage for the results, and the signature bonus. It is hoped that the flexibility of the scheme will attract investors to the auction of new work areas. It is hoped that this will lead to an increase in oil and gas production.
This year, the target for oil lifting is 820 thousand barrels per day (BPD). In 2017, the lifting target is set to be lower, namely 815 thousand BPD. Meanwhile, gas lifting is targeted at 1,150 thousand barrels equivalent to oil. Smelter entrepreneurs ask for legal certainty from the government in the ESDM Ministry's plan to revise Government Regulation number 1 of 2014.
They are worried that the regulation that requires domestic mineral processing to be relaxed. In fact, the Minerals and Coal Law already emphasize the matter of domestic downstream, including the obligation to build a smelter. Dozens of businessmen who are members of the Indonesian Smelter and Mineral Processing Association (ISPA) met with Vice President Jusuf Kalla.
The head of ISPA R Sukhyar said that nickel smelter development is very fast. The smelter facilities that were present in Indonesia were established in 1976. During those 40 years, they could only produce 98 thousand tons of nickel. Currently, it has reached 160 thousand tons. The number has increased because the businessmen have built smelters according to the regulations. In fact, in 2017 he projects nickel production to reach 250 thousand tons. Furthermore, in 2018 nickel could reach 300 thousand tons.
Jawa Pos, Page-5, Saturday, Oct 22, 2016
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