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Bahlil urges Pertamina to release idle oil and gas wells to private investors
Investment Minister Bahlil Lahadalia has called on state-owned energy giant Pertamina to release idle oil and gas wells to local or foreign investors to boost production and curtail imports
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Investment Minister Bahlil Lahadalia speaks on April 28, 2023, during a press conference in this screenshot from the Investment Ministry's Youtube account. (YouTube/Investment Ministry/-)
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nvestment Minister Bahlil Lahadalia has called on state-owned energy giant Pertamina to release idle oil and gas wells to local or foreign investors to boost production and curtail imports.
Pertamina manages about 70 percent of oil and gas wells in the country, according to Bahlil.
President Joko “Jokowi” Widodo had given directives, Bahlil said, for the auction of wells to private oil and gas contractors (KKKS), prioritizing local players.
In addition, the government is also seeking more international contractor participation through facilitation and fiscal incentives for the upstream oil and gas industry in the future, according to the minister.
He added that, while the government usually prioritizes state-owned enterprises (SOEs) for well management, Pertamina should not neglect operational efficiency.
“Pertamina must be concrete about which oil and gas wells can [be managed effectively] and which cannot,” Bahlil told the media during the 3rd International Convention on Indonesian Upstream Oil and Gas (IOG) at the Nusa Dua Convention Center in Bali on Wednesday, as quoted by Kompas.com.
“We shouldn't aim for [controlling] everything without achieving optimal production,” he continued.
