Oil and Gas are Still The Major Source of Energy Indonesia

INDUSTRY.co.id - Jakarta - Head of Formalities Division of Special Force Work Unit (SKK) Migas Didik Setiyadi said in the next 12 years Indonesia is threatened to run out of petroleum if not find new oil and gas reserves. Therefore, it needs commitment of all parties in promoting the climate that supports upstream oil and gas investment in Indonesia.

"In the next 37 years, oil and gas is still the main source of energy for Indonesia, including for transportation fuels, power plants and factories," Didik said as he filled the Focus Group Discussion (FGD) of Oil and Gas in Kuningan, South Jakarta, Friday / 12/2017).

According to Didik, recently the findings of new oil and gas reserves in Indonesia are decreasing due to decreasing exploration activities. This happens because of many factors. Some are due to licensing and uncertainty issues of rules and laws.

Didik added based on data of BP Statistical Review 2016, Indonesia's proven oil reserves by the end of 2015 only 3.6 billion barrels. The proven gas reserves, referring to the same data, are estimated at around 100.3 trillion cubic feet (TCF).

"The problem is, daily consumption of oil in the country alone per day has reached 1.6 million barrels. Of that number, only about 800,000 barrels are supplied from domestic production and the rest still have to be supplied from imports,  he added.

Strict Licensing Didik is one of the real challenges that must immediately get a solution if you do not want the projection of energy crisis really hit Indonesia in the near future.
"Currently, oil and gas contractors have to take care of 373 types of licenses to be able to sell their products," he complained.