JAKARTA - Indonesia last year approved 47 proposals for the development of oil and gas blocks, from which it is likely to receive $18.9 billion in revenue, a government agency said.
The proposals involve a combined investment of $21.3 billion and could produce 216 million barrels of crude oil, 4.1 trillion cubic feet of natural gas, and 7.6 million barrels of liquefied petroleum gas, SKMigas said in a press release Tuesday. SKMigas is a temporary unit of the Ministry of Energy and Mineral Resources which oversees the upstream oil and gas sector.
The government typically receives 85% of oil revenue and 65% of natural gas revenue. The remainder is shared among contractors.
Indonesia is a major producer of natural gas, which it mostly exports to countries such as Japan, China, South Korea and Singapore; but it wants to reduce the proportion it exports and increase domestic consumption, to reduce reliance on petroleum products. Indonesia is the largest importer of petroleum products in Southeast Asia.
SKMigas Deputy of Planning Widhyawan Prawiraatmadja said one approved proposal involves BP PLC and a partner investing $11.13 billion to develop a third natural gas liquefaction plant in the Tangguh gas field, with a daily capacity of 700 million cubic feet.
State-owned PT Pertamina's approved proposal involves developing 26 blocks--the most last year from a single entity--to increase production on the islands of Java and Sumatra.
Chevron Corp. unit Chevron Pacific Indonesia will spend $850 million to develop six areas: Petapahan Phase-1, Duri Area-8 Rindu, Duri Area-12, Sangsam, Duri Area 7 Rindu, and dan Sumur Jorang Deep-1.
Indonesia left the Organization of Petroleum Exporting Countries in 2008 after becoming a net oil importer earlier in the decade. Output peaked at 1.6 million barrels a day in 1965 and again in 1976, but lack of investment has seen the ratio of oil exploited to oil discovered fall below 100%.
Indonesia won't meet its 2013 output target of 900,000 bbl/day, and is unlikely to exceed its 2012 target of 850,000 bbl/day, Vice Minister of Energy and Mineral Resources Rudi Rubiandini told the Wall Street Journal in December, without providing a reason.
Copyright (c) 2012 Dow Jones & Company, Inc.
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