In a bid to boost production from its ageing fields, the Indonesian government has been offering new exploration rights and financial incentives for oilfields. They believe that they have 8.6 billion barrels of proven and potential oil reserves and 5 trillion cu.m of natural gas reserves. Most of the country’s untapped deposits lie in the eastern part of the country, where a lack of transport and communications facilities has hampered development. Indonesia aims to raise its output by 30% by the end of 2009.
 
As part of its efforts, Indonesia plans to ease rule for explorers in the eastern part of the country by making it non-compulsory to drill when seismic studies show little prospect of finding reserves. In areas other than eastern Indonesia, companies have six years for exploration, and have to drill at least one well after seismic studies. The government will also ease taxation regulations, this includes waiving of value-added taxes during exploration.
 
“Companies active in Indonesia’s play are set to spend about $2.3 billion on exploration this year, up from $900 million in 2006” - Upstreamonline, 24 Apr ‘07
 
“Pertamina wants to increase its crude output to 118,000 barrels per day this year from its own operations, compared with 107,000 bpd last year. They aim to invest 14 trillion rupiah ($1.54 billion) in the upstream and downstream sectors this year to boost sagging output, up about 40 per cent from its initial projection” - Upstreamonline, 18 Jan ‘07
 
In the refining sector, Pertamina has delayed plans to build several new refineries due to rising construction cost. Instead, they have allocated US$11 billion to expand existing capacity by 20 per cent by 2012.
 
State electricity company PT PLN has issued over twenty tender inviting independent power producers to supply electricity to ensure further power shortages are avoided. The base power purchase agreement price is set a low 4.5 cts/kWh, which only field-mouth gas from easily developed fields can compete at this level. But because such options are limited, coal-fired power will be favourable.
 
CMT’s Indonesia OGP Summit offers a complete and up to date overview of Indonesia’s upstream and downstream oil & gas sectors. This event will bring together key organizations and senior decision makers to examine issues and challenges confronting the oil, gas and power sectors. Key issues that will be discussed include:
• Latest regulations & projects on:
- Upstream: new blocs, production sharing contract (PSC) issues
- Downstream
- Power
• Supply trends and projection of crude oil
• Indonesia’s gas policy – implications to domestic markets and exports
• Refining capacity and infrastructure
• Major’s perspective on outlook and upcoming challenges
 
Mark your calendar to attend this vital event with your colleagues. Chart your business strategies, network with existing and new business contacts. Register online at www.cmtevents.com or send in your enquiry to sasha@cmtsp.com.sg
 
You will Network With
• Chief Executive Officers • Managing Directors • General Managers • Business Development Directors  • Marketing Directors • Regional Representatives • Downstream Business Directors • Supply & Trading Managers • Commercial Directors • Global & Regional Oil Corporations Refineries • Procurement & Contracting Managers • Government Offices • Geologists  & Energy Consultants • Traders in the oil, gas & power, refinery, petrol & LPG, Storage & Terminal Companies, Additives & Catalysts Companies • EPC Companies • Insurance & Legal, Trade & Structured Finance Banks