Oil related firms still have good future

Local oil related firms enjoyed only about 40 percent of about US$5.28 billion spent by the country?s oil companies a year as most of the purchases were made through overseas companies, Kompas reported on Friday.

Director General of Oil, Gas and Mineral Resources Sudibyo said about 2,800 of the oil related firms were still not as competitive as their foreign rivals. But he believed they would still be able to compete and benefit from the ASEAN Free Trade Agreement (AFTA) which will be fully implemented in January next year, if from now on, they continue to improve their efficiency.

He said that the prospect for the oil-related companies still have a good future, given the large size of oil and gas reserves the country still possesses. The country?s oil production ranges between 1.3 million barrels to 1.5 million barrels a year, while the oil reserve remains between 8 and 10 billion barrels, or enough for 19 years of production. The gas reserve is about 135.64 trillion cubic feet and could last for 50 years. (*)