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Natural resources, all about exploration
Something is holding back technology being used in Indonesia, which may well boil down to the opening remarks, mindsets or maybe self-interest.
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Illustration of oil and gas industry. (Shutterstock/File)
I
was present at two workshops recently, one was focused on geothermal development while the other was on oil and gas at “Technology Open Days”, organized by the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) on July 31-Aug. 1. The theme was “Let’s find that giant” meaning let’s find that giant oil field; although this has been a hot topic for the past 12 months, very little action has been taken until now.
Both opening speeches stressed that exploration is extremely important and that Indonesia needs to have an open mind to new ideas for exploration.
A senior manager for geothermal stated recently that “we are not giving enough information to potential investors”, this is exactly what I have been saying for at least two years, and this statement also applies to the oil and gas and mining industry.
We have seen some positives in the oil and gas industry in Indonesia recently, such as the extension of the Cooperation Contract in the Work Area Corridor to existing contactors, ConocoPhillips, Repsol and Pertamina, which will be valid for 20 years, effective from Dec. 20, 2023 and uses the gross split scheme.
This decision recognizes the importance of the experience of international oil and gas companies, or does it? Possibly Pertamina has more on its plate than it can handle as the government has previously given two terminated blocks namely the Mahakam Block and Rokan to Pertamina 100 percent, which they claim could be “giant fields” and will help to resolve the dilemma that Indonesia finds itself in with importing more oil than it produces.
I wonder what Pertamina knows that the previous operators did not know? These blocks alone are not the answer to Indonesia’s declining production unless extensive exploration with new ideas is carried out, exploration that cannot effectively be carried out with today’s methods.
The development of mature fields is important and needs to go hand-in-hand with the search for the giant fields, the development of a giant field will take a minimum of five years, maybe 10 years or more, where the development of mature fields by understanding the petroleum systems in more detail will take nine to 10 months, which will help to resolve the trade deficit, from having to import over 50 percent of the country’s daily requirements for oil.
