IPA wants operation efficiency

By Febry Silaban

Oil and gas operation in Indonesia incurs much higher cost than it does in many nations overseas, according to the Indonesia Petroleum Association (IPA), requiring the need for efficiency especially in licensing system that normally involves many state agencies, both in central and regional levels.

At a time when new operations are heading to eastern parts of Indonesia, often in remote areas and deep water which eventually require higher investment, efficiency in all level of operation-related activities would greatly bolster investment appetite on the part of investors, said IPA President Lukman Mahfoedz on Wednesday.

Speaking to reporters at the first day of the 3-day IPA-hosted annual conference, Lukman took as an example operations carried out by PT Medco Energi Internasional, where he also serves as the CEO and President Director.

?If we compared Indonesia with many countries overseas, operation cost in Indonesia is much more expensive. Medco has operations in Middle East, and it costs much more for Medco to operate in Indonesia than over there, ?he said.

Medco produces oil in Yemen and is developing a project in Lybia, among other countries in the region.

Editing by Dadan Wijaksana