Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami ANT, Kartini L Makmur, Yanuar Pribadhie
Since the start of this year, there is yet to be any significant investment in the oil and gas sector in Indonesia. Pri Agung Rakhmanto, Executive Director of the Reforminer Institute, said that this is mainly due to criminalization in production sharing contracts.
“Investors are rather afraid to invest their funds. As long as these conditions don’t change, Indonesia cannothope to increase oil and gas production in the near future,” said Pri.
Pri emphasizes that if current circumstances continue, a decline in oil and gas production is inevitable. Existing oil and gas contractors just want to maintain their fields, not to invest. Increasing oil and gas lifting requires large investments and a supportive commercial environment. These investments are not only for exploration but also to optimize production wells.
“The Government should take immediate steps to eliminate the criminalization. Otherwise,
investment will be hampered,” said Pri.
An example of the criminalization problem is the production sharing contract related to the Chevron bioremediation case in 2013. As a result of this case, many investors are now afraid that their production sharing contracts will be subject to similar developments as what happened to Chevron.
There is, however, a process in place to prevent such occurrences for oil and gas production sharing contracts. The Directorate General Oil and Gas at the Ministry of Energy and Mineral Resources provides contractors with an opportunity to recheck contract drafts.
Prior to recent developments, in December the Government announced two oil and gas bid winners. Execution of the corresponding contracts for seven work fields is planned for the second week of February this year.
(hot/kc)
Since the start of this year, there is yet to be any significant investment in the oil and gas sector in Indonesia. Pri Agung Rakhmanto, Executive Director of the Reforminer Institute, said that this is mainly due to criminalization in production sharing contracts.
“Investors are rather afraid to invest their funds. As long as these conditions don’t change, Indonesia cannothope to increase oil and gas production in the near future,” said Pri.
Pri emphasizes that if current circumstances continue, a decline in oil and gas production is inevitable. Existing oil and gas contractors just want to maintain their fields, not to invest. Increasing oil and gas lifting requires large investments and a supportive commercial environment. These investments are not only for exploration but also to optimize production wells.
“The Government should take immediate steps to eliminate the criminalization. Otherwise,
investment will be hampered,” said Pri.
An example of the criminalization problem is the production sharing contract related to the Chevron bioremediation case in 2013. As a result of this case, many investors are now afraid that their production sharing contracts will be subject to similar developments as what happened to Chevron.
There is, however, a process in place to prevent such occurrences for oil and gas production sharing contracts. The Directorate General Oil and Gas at the Ministry of Energy and Mineral Resources provides contractors with an opportunity to recheck contract drafts.
Prior to recent developments, in December the Government announced two oil and gas bid winners. Execution of the corresponding contracts for seven work fields is planned for the second week of February this year.
(hot/kc)
ANT, Kartini L Makmur, Yanuar Pribadhie
Since the start of this year, there is yet to be any significant investment in the oil and gas sector in Indonesia. Pri Agung Rakhmanto, Executive Director of the Reforminer Institute, said that this is mainly due to criminalization in production sharing contracts.
“Investors are rather afraid to invest their funds. As long as these conditions don’t change, Indonesia cannothope to increase oil and gas production in the near future,” said Pri.
Pri emphasizes that if current circumstances continue, a decline in oil and gas production is inevitable. Existing oil and gas contractors just want to maintain their fields, not to invest. Increasing oil and gas lifting requires large investments and a supportive commercial environment. These investments are not only for exploration but also to optimize production wells.
“The Government should take immediate steps to eliminate the criminalization. Otherwise,
investment will be hampered,” said Pri.
An example of the criminalization problem is the production sharing contract related to the Chevron bioremediation case in 2013. As a result of this case, many investors are now afraid that their production sharing contracts will be subject to similar developments as what happened to Chevron.
There is, however, a process in place to prevent such occurrences for oil and gas production sharing contracts. The Directorate General Oil and Gas at the Ministry of Energy and Mineral Resources provides contractors with an opportunity to recheck contract drafts.
Prior to recent developments, in December the Government announced two oil and gas bid winners. Execution of the corresponding contracts for seven work fields is planned for the second week of February this year.
(hot/kc)
Since the start of this year, there is yet to be any significant investment in the oil and gas sector in Indonesia. Pri Agung Rakhmanto, Executive Director of the Reforminer Institute, said that this is mainly due to criminalization in production sharing contracts.
“Investors are rather afraid to invest their funds. As long as these conditions don’t change, Indonesia cannothope to increase oil and gas production in the near future,” said Pri.
Pri emphasizes that if current circumstances continue, a decline in oil and gas production is inevitable. Existing oil and gas contractors just want to maintain their fields, not to invest. Increasing oil and gas lifting requires large investments and a supportive commercial environment. These investments are not only for exploration but also to optimize production wells.
“The Government should take immediate steps to eliminate the criminalization. Otherwise,
investment will be hampered,” said Pri.
An example of the criminalization problem is the production sharing contract related to the Chevron bioremediation case in 2013. As a result of this case, many investors are now afraid that their production sharing contracts will be subject to similar developments as what happened to Chevron.
There is, however, a process in place to prevent such occurrences for oil and gas production sharing contracts. The Directorate General Oil and Gas at the Ministry of Energy and Mineral Resources provides contractors with an opportunity to recheck contract drafts.
Prior to recent developments, in December the Government announced two oil and gas bid winners. Execution of the corresponding contracts for seven work fields is planned for the second week of February this year.
(hot/kc)