Kartini L Makmur, Robert Sidauruk
Indonesia’s oil production has failed to meet the State Budget’s estimated target of 830,000 barrels per day (bpd). Total national oil production currently stands at 827,000 bpd, slightly under the estimated target.
This has forced the Government to put greater emphasis on the Cepu oil block in Central Java to fulfill a strategic role in meeting domestic oil demand.
According to Ign. Wiratmaja Puja, expert staff for Strategic Planning for the Minister of Energy and Mineral Resources, the Government is optimistic that the Cepu block will make a significant contribution to national oil production and help to achieve State Budget targets.
“If the Cepu block enters its production phase, the national targets for oil production will be achieved,” said Puja during a discussion session on Indonesian oil and gas upstream activities in Jakarta on Wednesday.
While the Government is optimistic, Komaidi Notonegoro, Deputy Director of the Reforminer Institute, warned the Government against putting excessive reliance on the Cepu block to achieve national lifting targets.
Komaidi explained that certain unresolved issues are creating delays in the commencement of oil lifting by contractors.
Complicated bureaucratic procedures for issuing permits, especially at the local government level, is one of the problems for the Cepu block.
In particular, Cepu block contractors are facing problems in securing permits for land clearing. Komaidi informed that up until now, the local government has not granted the required permits for contractors to commence exploration and exploitation activities.
“Permits for land clearance have become the biggest obstacle due to the complex bureaucratic procedures at the local government level,” explained Komaidi.
This was also confirmed by Gde Pradnyana, Secretary at The Special Works Unit for Upstream Oil and Gas Activities (SKK Migas). Gde commented that this problem has caused a four month delay to operations.
“Due to this four month delay, the contractors have requested that the completion time be counted from the day the permits are issued, not from the day the contract was signed,” added Gde.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
Indonesia’s oil production has failed to meet the State Budget’s estimated target of 830,000 barrels per day (bpd). Total national oil production currently stands at 827,000 bpd, slightly under the estimated target.
This has forced the Government to put greater emphasis on the Cepu oil block in Central Java to fulfill a strategic role in meeting domestic oil demand.
According to Ign. Wiratmaja Puja, expert staff for Strategic Planning for the Minister of Energy and Mineral Resources, the Government is optimistic that the Cepu block will make a significant contribution to national oil production and help to achieve State Budget targets.
“If the Cepu block enters its production phase, the national targets for oil production will be achieved,” said Puja during a discussion session on Indonesian oil and gas upstream activities in Jakarta on Wednesday.
While the Government is optimistic, Komaidi Notonegoro, Deputy Director of the Reforminer Institute, warned the Government against putting excessive reliance on the Cepu block to achieve national lifting targets.
Komaidi explained that certain unresolved issues are creating delays in the commencement of oil lifting by contractors.
Complicated bureaucratic procedures for issuing permits, especially at the local government level, is one of the problems for the Cepu block.
In particular, Cepu block contractors are facing problems in securing permits for land clearing. Komaidi informed that up until now, the local government has not granted the required permits for contractors to commence exploration and exploitation activities.
“Permits for land clearance have become the biggest obstacle due to the complex bureaucratic procedures at the local government level,” explained Komaidi.
This was also confirmed by Gde Pradnyana, Secretary at The Special Works Unit for Upstream Oil and Gas Activities (SKK Migas). Gde commented that this problem has caused a four month delay to operations.
“Due to this four month delay, the contractors have requested that the completion time be counted from the day the permits are issued, not from the day the contract was signed,” added Gde.
(hot/kc)