Increased Exploration for 2011 Aims to Boost Reserves

Wandrik Panca Adiguna | 21 Desember 2010 03:00 WIB

JAKARTA: A projected 10% increase in oil and gas exploration activities next year aims to boost reserves, which are trending to decline.

Head of the Upstream Oil and Gas Regulatory Agency BP Migas R. Priyono revealed 219 oil and gas partner contractors (KKKS) had proposed their investment working plans worth US$318 billion for next year. Ten percent of the investments would be spent on exploration. "That after we told partner contractors that if they cannot increase investments in exploration, it will be better for them to eliminate the position of VP for Planning. And that's quite effective," he told Bisnis last week. Evaluation that the BP Migas run on the 2011 working plan and budget proposed by partner contractors showed there was a total upstream oil and gas investment of US$13.8 billion ready to be realized. According to him, despite the relatively small value, investments in exploration activities next year would surge 100%, representing in average 10% of the total spending planned by each partner contractor. "The investment is around US$13.8 billion. Exploration doubles from 4%-5% last year." On January 1, 2009, Indonesia's proven oil reserves reached 4.3 billion barrels, rising 12.8% from 3.75 billion barrels in 2008. However, with a shrinking rate of 8% per annum, such an increase in proven oil reserves (P1) doesn't mean much, especially when it is not followed by increases in P2 (measured reserves) and P3 (estimated reserves),m which instead fell 17%. Deputy for Planning at the BP Migas Haposan Napitupulu disclosed of the total 245 partner contractors operating in Indonesia, 219 asked for go-ahead for their 2011 working program and budget. In addition, of the total 245 contractors, 66 were production contractors and 179 exploration ones. "All production contractors propose working programs and budgets. In the meantime, of 179 exploration partners, only 153 contractors propose working programs and budgets. We are still pursing the rest 26 contractors. In addition, there are 24 contractors in coal bed methane working areas among the total 245 contractors." (wiw)

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Editor : Mursito

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