The Indonesian petroleum association [IPA] had not seen any potential
capability of domestic companies to finance oil drilling project, considering
the high operational cost, i.e. USD 100 million. The risk was great, because
the cost was no guarantee of any oil gas reserves. Even if there was any
source, the operators still had to calculate the volume of the oil well. “We
still had to calculate the commercial advantage before entering the market”
Bambang Isatadi of IPA disclosed to business news [19/4].
The cost was so great, there was no choice for domestic companies to
collaborate with foreign companies. The USD 100 million included various
resources with measurable risk. In the next IPA meeting in Jakarta in Jakarta
geologist, geo physicist would interact. Some point ware confidential but some
subjects were open for discussion at the next meeting. Some sessions of the
meeting would the focus on development of oil exploration projects. According
to experts the ratio was 1: 10; meaning out of very 10 drilling one stood the
chance of oil-gas discovery. “The ratio is 1: 10 of east Indonesia; in west
Indonesia, the ratio could be 1: 5. “
Even if drilling failed, information’s could
still be useful, some element could signal the existence of oil reserves, the
same was with reservoirs, all were measurable and calculable to determine
resource content.
The IPA meeting had the objective to facilitate
discussions, coordination, and collaboration among stakeholders. The conference
could also enhance trust to invest in the oil gas sector in Indonesia. One of
the challenges to be faced by the oil gas industry in the future was how to
maintain good balance between national interest and investors so attendants of
meeting could share experience in regard to legal certainly etc.
IPA saw that the meeting was strategic. Energy
consumption increased year after year, which was in parallel with population
growth and economic activities. The explorations must make more discoveries to
cover up domestic need. “We must start now. If we start today the result could
be benefited ten years from now. The gap
between supply and need is getting wider. “Bambang remarked.
Transfer of technology in oil gas explorations
from oil producer countries like Brazil, Colombia, and Oman were still needed
by Indonesia. The oil gas industry in Indonesia also had input from other oil
producing countries like the USA and the Middle East. Explorations activities
were expected to increase production output from hidden reserves. So all
experts from local and overseas centers would come to attend the meeting.
“Between intervals of conference there would be signing of 15 contracts by
foreign and domestic companies. Information on new reserves blocks would also
be announced, participants of the meeting would exchange information” Bambang
concluded. (SS)
Business News - April 24,2013
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