Oil and gas production in Indonesia is not proportional to the consumption needs of society and industry. Production ranges from 700,000 to 800,000 barrels per day, while its consumption reaches 1.6 million barrels per day. While the gas supply is 7,651 million standard cubic feet per day or MMSCFD and demand reaches 9,323 MMSCFD. The shortage of production is still filled with imports.
Head of Oil and Gas Special Working Unit The representative of Java Bali Nusa Tenggara (Jabanusa) Ali Masyhar in Gresik-East Java stated that production should be increased by finding new sources of oil and gas. Another thing is also the need to innovate the utilization of non-fossil energy sources, such as geothermal, solar, water, and wind for the transportation and industrial sectors.
"If there is no supply of energy, essentially a country is dead. Industry can stop. Transportation needs fuel oil, power plant still use gas and diesel, "Ali said in a workshop attended by journalists and representatives of contractor contracting companies (KKKS) of oil and gas sector.
East Java is still a source of oil and gas. Of the 800,000 barrels per day of national oil production, 30 percent of it is from oil and gas fields in East Java. East Java also contributes 10-12 percent of the total gas supply in Indonesia.
Head of Monetization and Commercialization Division of Oil and Gas Special Unit for Upstream Oil and Gas Business Activities (SKK Migas) Waras Budi Santoso said, East Java still save the potential of gas from the field offshore. However, there are several factors that inhibit exploration and exploitation until the gas reaches the buyer. The inaccurate schedule of gas production makes KKKS already committed to produce potentially loss when potential consumers switch to diesel and coal.
Requested solid
Related to oil and gas, entrepreneurs who are members of the Indonesian Petroleum Association (IPA) from the Ministry of Energy and Mineral Resources are asked to guard solidity following a reprimand to the association. Rebuttal issued by SKK Migas related to the implementation of the 42nd IPA Convention and Exhibition in Jakarta on 2-4 May.
The strike signed by Head of SKK Migas Amien Sunaryadi contains two things, namely the inclusion of one of the panelists without the approval of the Vice Minister of EMR, Arcandra Tahar, and the result of the poll in one of the discussion sessions considered to corner Arcandra.
"Do not let this kind of thing interfere with the performance of both parties in the effort to improve the upstream oil and gas investment climate in Indonesia," said Deputy Chairman of Commission VII of the House of Representatives Eni Maulani Saragih in Jakarta.
The panelists are Fred McMahon of the Fraser Institute, an independent research institution. Related to the 2012 upstream oil and gas investment climate research, Fraser Institute put Indonesia on the list of the worst countries for investment with Venezuela, Libya, Iraq, Ecuador, Bolivia, California, Cambodia, France and Yemen.
About the results of the poll, there is the name of Arcandra among dozens of other writings. The most prominent feature of the results of this poll is the gross split (oil and gas production sharing scheme based on gross production).
IPA management has sent a reply addressed to the Minister of Energy and Mineral Resources Ignatius Jonan and Vice Minister of EMR Arcandra Tahar. In addition to thanking the government's support, IPA apologized for the use of the Fraser Institute survey results and the poll question was deemed abused by irresponsible people.
Kompas, Page-17, Friday, May 11, 2018
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