BP Migas assure Gas Supply for Domestic Reply

Executive Agency for Upstream Oil and Gas (BP Migas) guarantee gas supply for domestic needs and BP Migas still studying the concept of the national gas supply management, said the head of BP Migas, R. Priyono, in the dialogue of gas national in Jakarta, Tuesday, April 13, 2010.

“This concept is proposed in order to make sure that there is no problem in applying domestic market obligation (DMO) on oil and gas field that far enough from the domestic market,” he said.

Economically marginal field can be improved by the allocation of gas for export. However, according to him, the national gas supply, not only related to supply, but need the availability of gas infrastructure.

Priyono said, the construction of LNG receiving terminal needs to be accelerated, so that gas from a large field could be used for the domestic market.

He added that national gas supply requires a paradigm shift from demand to follow supply, such as with building factories and power plants near the source of gas.

“In terms of growth also needs to be regulated in order to avoid shortages due to the sudden demand,” he said.

Finally, it is the arrangement of energy including gas pricing policies, for encouraging the process of diversification for the need of long-term national energy security.

Source: Antara, April 14, 2010

35 oil and gas blocks will be tendered Reply

This year the government of Indonesia will offer some 35 oil and gas working interests. Of this amount, a total of 19 working interests will be on offer through direct bidding (joint study).

The working interests has to offer are mainly located in the Eastern part of Indonesia according to info from the Director of Business Development Oil and Gas Upstream Ministry of Energy and Mineral Resources (ESDM) A Edy Hermantoro.

Till now still have not decided when ESDM tenders will be opened. However, before officially announced, the Government will assess and collect responses from potential investors of 35 working interests. The government also plans to check the availability of data, models, or the exploration concepts.

The Working interests offered through regular tender are as follows East Natuna, SE Baronang, Nias I, Nias II, Tanjung Jabung, Sunda Strait I, Sunda Strait II, and Sunda Strait III.

Then, West Kangean I, South Kangean II, SE Mandar, SW Makassar, West Sebuku, Saliki, East Tarakan, SW Bird Head and Wokam.

Meanwhile, working interests are offered through direct bidding are as follows North Sokang, NW Natuna, Gurita, Sumbagsel, Titan, Kuala Pembuang Sampit, Damar, Belayan, Bone Bay, Babar, Selaru, Yamdena, Arafura Sea II, North Arafura, Onin and North Semai.

Source: Investor Daily, April 6, 2010.

Cabotage burden the oil and gas upstream 1

Implementation of cabotage for oil and gas transportation services in Indonesia in the short term will be extremely burden the oil and gas upstream industries associated with the increasing value of insurance for domestic vessels.

Head of the Executing Agency for Upstream Oil and Gas R. Priyono explain the implementation plan, which requires the nationalization of cabotage vessels operating in Indonesian territory no later than 2011 still has many obstacles.

Cabotage would be very burdensome to the oil and gas upstream sector because of its ability and capacity of the national shipping industry itself is not ready.

Source: Bisnis Indonesia, April 5, 2010.