National Companies Encouraged to Take More Control of Oil and Gas Upstream

TheIndonesia.id - The government has called for national oil and gas companies to seize more opportunities and take more control of the upstream sector of the industry.

Chairman of the special task force for upstream oil and gas business activities (SKK Migas) Dwi Soetjipto said as some multinational companies decided to leave Indonesia, more opportunities are now available for Indonesian companies to play bigger role in the upstream of oil and gas.

“This is the chance for national industry players to show their capabilities,” Soetjipto said in a statement on Tuesday, January 4, as reported by Antara. He added that public shouldn’t see the departure of multinational business from Indonesia as something worrying; instead, it should be embraced as a potential for local players.

However, he admitted that the existence of multinational companies is still needed in Indonesia in order for the country to achieve its 1 million bopd (barrels of oil per day) and 12 billion mmscfd (million standard cubic feet per day) by 2030.

Therefore, the Indonesian government will also reform existing regulations to improve national investment climate.

Previously, Total, Shell, Chevron, and ConocoPhillips sold their upstream businesses to national companies.

Since taking over block Rokan in Riau from Chevron on August 9, 2021, however, PT Pertamina Hulu Rokan has been successful in managing the block. Until November 2021, the company recorded production at 162 thousand bopd while, beforehand, the production was only at 150 thousand bopd.

In the coming future, Pertamina targets 300 thousand bopd production in this block by 2025.