Gov’t Prepares Three Strategies to Develop Oil & Gas

Kamis, 16 Mei 2013 | 10:07

The government would apply three strategies to overcome problems in the development of the oil and gas sector in Indonesia.President Susilo Bambang Yudhoyono called on the oil and gas employers to work together to solve the problems that hinder oil and gas sector’s performance through 3 approaches.

"I invite all oil and gas employers to become the agents of change in solving several problems in the oil and gas sector which hindering its development. The government has taken some approaches," he said when opening the 37th Indonesian Petroleum Association Convention and Exhibition, Wednesday (5/13/2013).

IPA is an employers association consisting of 26 oil and gas contractors and other oil and gas industry supporting companies. The 37th IPA exhibition was attended by around 2,600 participants from various countries and targeted 10,000 visitors.

The approaches taken by the government are increasing oil and gas production, energy diversification, and the diversification on cooperating countries in the oil and gas sector investment.

SBY described the first approach, increasing oil and gas production, is running through modern technology mastery approach. The technology is needed to find new sources of oil and gas and increase exploration and production efficiency.

Moreover, modern technology can also be used to cleanly process oil and gas by using carbon saving system and restore the existing oil and gas resources.

The second approach is implemented through the policy on non-conventional oil and gas upstream business development such as coal bed methane, shale gas and shale oil.

The government is also trying to increase the diversity of energy through the expanded use of gas as fuel for motor vehicles and household activities. "We expect the oil to gas fuel transfer to give a positive change in the state budget structure, mainly for the reduction of oil fuel dependence," said the President.

Third, Yudhoyono said Indonesia is trying to expand partnerships between countries in the management of oil and gas sector, particularly to Asian countries.

Such measure was taken according to the shifting on world oil geopolitics from western countries to Asian countries as new markets as the demand increases.

"It would affect the fluctuations tendency in international oil prices that has been determined by the western countries’ industrial activities," the President said. (drg/t07/aph/tw)

by Demis Rizky Gosta, Aprianto Cahyo Nugroho