Chevron Appreciation Regulatory Simplicity Creates Attractive Investment

By : Hariyanto And Aldo Bella Putra | Thursday, May 03 2018 - 20:00 IWST

Chevron.(Ist)
Chevron.(Ist)

INDUSTRY.co.id - Jakarta - Chevron appreciates the simplification of regulations by the Ministry of Energy and Mineral Resources (ESDM) and SKK Oil and Gas, thereby making the oil and gas investment climate in Indonesia more competitive.

In the 42nd Indonesia Petroleum Association (IPA) Convention and Exhibition in Jakarta, Wednesday (2/5/2018) Managing Director of Chevron IndoAsia Business Unit Chuck Taylor said that the ESDM Ministry continues to show strong commitment to partner with oil and gas investors for the benefit which is great for the country, among others by simplifying the regulations and applying more attractive fiscal provisions.

"With the competitive investment climate and potential reserves available, Indonesia has the opportunity to increase oil and gas investment, employment and higher revenues for the government," Chuck said.

According to him, in the midst of low commodity prices in recent years, oil and gas investors are required to find ways to lower costs and be more selective in making investment decisions.

At the same time, countries in the world compete to attract capital into their country and improve their investment climate.

In the plenary session, Chuck Taylor presented the views of oil and gas industry players to the level of Indonesia's competitiveness and how the Government and industry can work together to improve Indonesia's competitiveness.

He explained that investors need fiscal certainty as well as fiscal competitiveness.

A number of key keys to attract oil and gas investment, including revenue sharing that provides competitive returns for investors; adherence to the commitments laid down in the contract; the drafting of regulations based on data and practice globally.

Next, timely approval; simplification of permit process; alignment of policies between ministry and between central and local government.

In Indonesia, investors expect contract deals that support world-class operating performance, competitive financial value and revenue.

"I have seen positive changes through the revision of the ESDM Ministerial Regulation related to Gross Split," he said.

According to him, it is very clear that the ESDM Ministry has received industry input and strengthened the provisions to improve the competitiveness of this scheme.

With ministerial regulation, he said again, it can provide an additional share of the contractor, a more competitive investment return opportunity.

"I hope Mr. Minister Jonan will use this policy to realize the investment opportunities intact," he said as quoted by Antara.

Chevron is one of the world's leading integrated energy companies and through its subsidiaries in Indonesia has been operating in Indonesia for 94 years.

Chevron Indonesia became one of the largest crude producers in Indonesia. From oil and gas fields in Riau and offshore oil and gas fields in East Kalimantan, Chevron produces more than 13 billion barrels of oil to meet Indonesia's energy needs and economic growth.

In operating the oil and gas blocks, Chevron works under the supervision of SKK Oil and Gas under a Production Sharing Contract (PSC) contract.

News Comment

Today's Industry

Oleg Mogilevsky - Product Marketing Manager at Check Point Software Technologies (Photo by Linkedin)

Selasa, 10 November 2020 - 11:00 WIB

Five Reasons to Reevaluate Your Endpoint Protection

With the new emerging threats caused by remote working standards, security professionals need to reevaluate their approach to protecting endpoints. In order to do so, it’s vital that organisations…

Darrell Adams, Head of Southeast Asia & Oceania, Universal Robots (Photo by LinkedIn)

Selasa, 10 November 2020 - 10:30 WIB

Collaborative Robots Open New Horizons in Quality Control Processes

Collaborative robots (cobots) offer suitable solutions to manufacturers. Hence, cobot-based quality control and inspection systems that can transition between different end products in very…

Ilustration Hackers (Photo by Microwire.info)

Jumat, 30 Oktober 2020 - 11:20 WIB

Organisations Paid Hackers US$23.5 Million for These 10 Vulnerabilities in One Year

HackerOne report reveals cross-site scripting, improper access control, and information disclosure top list of most common and impactful vulnerabilities.

Clean Earth Technologies (CET)

Jumat, 30 Oktober 2020 - 10:30 WIB

Clean Earth Technologies’ New Class Of Polymers Invented By Associate Professor, Justin Chalker, Receives Australian Pm’s New Innovator Award

Associate Professor Justin Chalker has invented a novel class of polymers synthesised directly from elemental sulphur which is a waste by-product of the petrochemical industry and renewable…

Adi Ikan - Network Research & Protection Group Manager, at Check Point Software Technologies (Photo by Linkedin)

Jumat, 30 Oktober 2020 - 10:05 WIB

Measuring the Global Impact of the NSA’s Top 25 Vulnerabilities Being Exploited In the Wild

NSA’s list of top vulnerabilities were used to launch 3 million attacks in 2020, with 2.5 million of those attacks occurring in the last 6 months.