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SKK Migas: Indonesia`s Oil & Gas Fields Only Produce 10% of Oil

5 September 2015 12:16 WIB

TEMPO.CO, Jakarta - Head of Public Relations Division of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), Elan Biantoro, said that Indonesia’s oil and gas reserves has increasingly depleted.

According to Elan, since 1995 until 2013, it was recorded that Indonesia’s oil and gas fields only produced 10 percent of oil, while 90% that they produced was water.

"Before 1980, it was in the reverse. At least 90 percent that was produced was oil, while the rest was water,” Elan said in Bogor on Friday.

Unfortunately, he added, the price of oil by then was still very low, which was 10-30 US$ per barrel, while the price is now US$ 60AS per barrel.

Elan added that oil and gas had always been the main source of Indonesia’s development

However, the production capacity has now declined. The condition, he said, was worsened by the inequality of the development of fuel and gas infrastructures.

He further said that if global oil price continued to drop, it is feared that oil and gas contractors would suffer from financial losses.

ANTARA




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