Indonesia's Petroleum Sector Remains Attractive for Investment

Simonelli said GE Oil & Gas is currently focused on expansion of the Batam facilities and has no immediate plans to expand in other areas.

Meanwhile, Chevron is likely to submit a revised development plan for the IDD given that its discovery of new gas resources will affect project economics, particularly in view of the current oil price environment, Indonesia's Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) deputy for planning Aussie Gautama said.

“It is also planning to propose contract extensions for three PSCs (production sharing contracts) involved in IDD, namely Selat Makassar, Rapak and Ganal,” Aussie said.

Indonesia has produced less oil for several years amid declining production at matured fields, while attempts to reverse the trend have been hampered by challenging geological locations and a complex bureaucracy. At the same time, the country has to import large volume of crude oil and petroleum products to meet rising domestic demand.

The Indonesian government indicated that it intends to produce 825,000 barrels of oil per day (bopd) in 2015, or 3.9 percent more than the 794,000 bopd of realized production last year.


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