Incentives needed for operations in deepwater, remote areas: SKK Migas
Tuesday, May 28 2013 - 11:37 AM WIB
Upstream authority SKK Migas reiterates the need for the government to provide incentives for explorations in eastern parts of the country, particularly offshore or deepwater as well as in remote areas.
Because of the highly expensive, technologically complex, operations in Eastern Indonesia, as many as six PSC Holders have expressed plans to pull out of Indonesia, according to SKK Migas Chairman Rudi Rubiandini.
"There are 6 PSC Holders operating in deepsea Eastern Indonesia who plan to pull out because of failure to make discoveries,? said Rudi in Jakarta on Tuesday. Total losses from the six operation amount to around US$500 million.
The six are Statoil, Talisman, Marathon, CNOOC, ExxonMobil and Conocophillips.
However, in the same occasion, Rudi also praised Genting Oil & Gas Ltd for its relatively successful operation in Eastern Indonesia so far. The Malaysian company has succeeded in finding gas reserves amounting to 2.3 tcf in Asap field within the Kasuri block in West Papua.
"It seems that 2.3 tcf in reserve will be utilized mostly for a petrochemical production so that we will have a petrochemical plant in Eastern Indonesia," Rudi added.
Editing by Dadan Wijaksana