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Why oil and gas exploration targets are out of reach
The exploration targets will not be met for the third year in a row with the low price of oil being the main excuse.
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Back to work: Pertamina Hulu Energi West Madura Offshore (PHE WMO) workers are moved in a personnel basket from a ship to the company’s oil rig off the coast of Madura Island in East Java. (JP/Wahyoe Boediwardhana)
R
ecently, we have seen statements that Indonesia is unlikely to achieve the 23 percent renewable energy target by 2025 and that oil and gas exploration targets for 2017 are out of reach.
This indicates that Indonesia is underachieving in its goals. If Indonesia was a company instead of a country, the CEO would be asked some serious questions from shareholders as to why the company is not meetings its targets. Are the taxpayers Indonesia’s shareholders?
The exploration targets will not be met for the third year in a row with the low price of oil being the main excuse. Between January and August, only 22 percent of seismic has been carried out and 29 percent of wells were actually drilled, which properly means that less than 50 percent of exploration will be achieved by the end of the year, after all we are now entering the rainy season.
Two other reasons that has been quoted is that land acquisition is complicated where some investors were not able to complete their exploration commitments, and the lack of exploration data stopped some investors from pouring cash into exploration activities.
