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Green energy shift risks upstream oil, gas investment: SKK Migas
The global shift to renewables will be a challenge for Indonesia’s upstream oil and gas investment for the next decade.
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An oil and gas rig in the Offshore North West Java (ONWJ) Block operated by state-owned company Pertamina in an undated picture. (SKK Migas/Handout)
T
he Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) expects the global shift to renewable energy to be a key challenge in attracting upstream oil and gas investments over this decade.
SKK Migas deputy head Fatar Yani Abdurrahman said on July 16 that SKK Migas would continue making regulatory changes to attract investments but its success depended on the policies of oil and gas multinationals such as Shell and British Petroleum (BP).
Many oil and gas multinationals, led by the European companies, have announced plans to reach net zero emissions by 2050 in line with international climate change commitments. Other giants such as Exxonmobil and Chevron have announced weaker carbon-reduction emissions.
“A shift to renewables will be a challenge for the next decade,” said Fatar in a virtual press conference on 16 July.
SKK Migas previously estimated that Indonesia needed US$250 billion over a 10-year period to achieve its goal of producing 1 million barrels of oil per day (bopd) and 12.3 billion cubic feet per day (mmscfd) of gas by 2030.
Oil and gas investment reached $4.92 billion in the first half of this year, which is 39.7 percent of the $12.38 billion target set in the 2021 state budget, according to SKK Migas data.
Read also: Domestic oil, gas lifting falls 2.7% off target in Q1
