Revised Law Oil certainly not be completed this year
The threat of an energy crisis intensified after the slow revision of Law Number 22 the Year 2001 concerning Oil and Gas. Without the discovery of new reserves, Indonesia's oil reserves of around 3 billion barrels will be used up in less than 12 years.
Indonesia will really be in an energy crisis if new oil and gas reserves are not immediately found. With the current crude oil reserves of around 3 billion barrels, they will be used up in less than 12 years.
In addition to the absence of new reserves, the rate of return on oil reserves in Indonesia is less than 50 percent. The rate of return ratio of oil reserves is less than 50 percent, meaning that for every barrel of oil that is drained, the discovery of new reserves is not more than half of the amount drained.
One root of the problem of oil and gas investment in Indonesia, said Maryati, is a legal protection that still has gaps in terms of planning, management, and supervision.
The uncertain oil and gas upstream institutional model and the frequently changing rules make the upstream oil and gas investment climate in Indonesia tinged with uncertainty. It has an impact on oil and gas exploration in Indonesia that is less passionate. The revision process of Law Number 22 the Year 2001 concerning Oil and Gas which is expected to be a solution to the threat of an energy crisis is difficult to expect.
Until now, there is no clarity when the revision will be completed. Andang added that although Indonesia's oil reserves continue to shrink there is still an opportunity to increase the number of reserves through the enhanced oil recovery / EOR method.
He suggested that this method be specifically regulated in the revision of Law No. 22 of 2001. According to him, petroleum technology continues to develop and if utilized optimally can help find new oil reserves. There is a potential of around 100 billion barrels.
Why not log in as a backup? Because there is no Plan Of Development (POD). Even if it already exists, it is still overshadowed by uncertainty. See the Masela Block, the problem is still around 13 years in the POD, "Andang said.
He also suggested that the government be willing to open up oil and gas data and free the private sector to access the data. If the data is open to other parties, it can increase the interest of the private sector to explore. The openness of data as one way to increase exploration activities in Indonesia.
Sulistio added, the cessation of the discussion of the revision of Law Number 22 of 2001 in Commission VII of the House of Representatives (DPR) showed the poor performance of legislation in the DPR. From the discussion of the DPR's revision, until 9 November 2016, the DPR had only completed 9 of the 50 laws targeted this year. He suspects that the Oil and Gas Mafia will benefit from the slow process of revising the law.
the Oil and Gas Mafia in Pertamina
Revised discussion of revisions always enters the National Legislation Program which seems to be a priority. The fact is there is no solution. I am worried that next year it will also suffer the same fate because the concentration of the DPR is divided along with the simultaneous regional elections in 2017.
Fahmy believes that the results of the revised discussion should give priority to state-owned enterprises (SOEs) to manage oil and gas resources in Indonesia. The priority is as a form of constitutional mandate in which natural resources are controlled by the state and managed for the sources of people's prosperity.
Satya Widya Yudha
Nevertheless, BUMN is given the power to hold other parties. House of Representatives Commission VII member Satya Widya Yudha said that discussion of the revision of Law Number 22 of 2001 would not be possible this year. According to him the working committee or special committee for revision had not been formed in the plenary session.
At present, fuel consumption is much higher than the domestic production figure. Consumption reaches 1.6 million barrels per day with only 800,000 barrels of oil produced domestically and the rest imported.
The government has acted quickly to add new oil and gas reserves through increased exploration. A number of auctions for oil and gas working areas this year turned out to be less attractive to investors. In addition to the low oil price factor, investors are also overshadowed by a bad investment climate, such as complicated licensing and taxation models that are considered less profitable.
Kompas, Page-17, Tuesday, Nov, 22,2016
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