Oil and Gas Concession Scheme Need To Be Changed

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ibra9Jakarta – One of the functions of the Regulatory Agency for Upstream Oil and Gas (BPH Migas) is to guarantee the availability of fuel oil (BBM) in the entire territory of the Republic of Indonesia (NKRI). Availability of fuel is certainly very concerned with the production of domestic oil. When production dropswill certainly have an impact on the availability of fuel supply assurancethroughout the Homeland.

Downstream Regulatory Agency Committee on Oil and Gas (BPH Migas) Ibrahim Hashim, on the occasion of a talk show Sudirman Said Minister of Energy and Mineral Resources, on how to increase national oil production in the event of the 39th Indonesian Petroleum Association (IPA) at the Jakarta Convention Centre said, that to be able to increase domestic oil production one of which is the current oil and gas pengusaahaan schemes need to be evaluated and there needs to be change.

“If the World Bank’s assessment of the outcome of 2011, we see how in the world are available various forms of exploitation schemes that have been established successfully in many countries and not just using the system Production Sharing Contract,” he said, Saturday (23/05/2015) in Jakarta.

With the value creation which is currently growing at oil companies in each country, said Ibrahim, the use of diverse concession scheme adapted to the different levels of difficulty field in one location with others.

“Indonesia has long used the scheme formulated Indonesian PSC itself in the early development of the national oil and gas industry and has been running with the hassle of cost recovery that never runs debated every year. So it is necessary for mapping the complexity of each oil field, so it can be developed the application of different variants of other schemes, “said Ibrahim.

As is known, the meeting was the 39th Indonesian Petroleum Association (IPA) convention & exhibition 2015 held recently finished. This event is a little different from previous meetings. For example, the agenda of signing a new contract extension or exploitation of oil and gas block is not performed as usual on the first day after the opening, but done on closing day, Friday May 22, 2015 date.

“Such an agenda make IPA meeting with his exhibition at the Jakarta Convention Centre be kept busy and interesting. The event began with a contract signing a contract extension block Pase Aceh at the western end up with more oil and gas block in Papua. This shows the interest in investing in oil and gas exploitation INDONESIA still attractive, “added Ibrahim.