JAKARTA (rambuenergy.com) — Indonesia Special Task Force for Upstream Oil and Gas Business (SKK Migas) at the Energy and Mineral Resources Ministry (ESDM) calls on oil and gas production sharing contractors (PSCs) to carry on oil and gas explorations although oil price is falling.
“The costs for exploration are now relatively cheaper than last year. If there is (oil and gas) discovery, the development costs would also be cheaper and when the project comes onstream, the oil price would recover,” said SKK Migas Chairman Amien Sunaryadi at an oil and gas conference in Jakarta recently.
Exploration activities covers geological study, geophysics, seismic survey and exploration drilling activities. These activities are aimed at discovering oil and gas reserves. Exploration activities today is key increasing future oil and gas reserves, which are particularly important for Indonesia as there were no major oil and gas discoveries over the last five years or so.
At present, there are 228 active exploration Working Areas in Indonesia. Based on the PSCs Work Program and Budget (WP&B) for 2016, they are planning to drill 151 exploration drillings, 11,126 km of 2D seismic survey and 5,361 square kilometers of 3D seismic survey.
At the moment, said Amien, SKK Migas and PSCs adopts efficiency strategy, including in the use of capital expenditures as well as operating expenditures.
Media reports have said some oil and gas companies, such as Chevron, are planning to lay off workers driven by plummeting oil price. Some have delayed major investment plans. Pertamina, the country’s state owned diversified energy company would review all investments and projects every three months. (*)