Indonesia Boosts Oil and Gas Partnerships with Chinese Firms
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27 July 2024 20:18 WIB
TEMPO.CO, Jakarta - The Indonesian government is stepping up cooperation with Chinese companies to increase the country's oil and gas reserves and production, according to Director of Upstream Oil and Gas Business Development Ariana Soemanto.
He remarked that three stakeholders are collaborating to utilize the technology offered by several Chinese companies to explore new reserves and boost production in Indonesia.
The three stakeholders are the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), and PT Pertamina Hulu Energi, a subsidiary of the state-owned oil and gas company Pertamina.
Two of the five exploration areas in eastern Indonesia have already engaged Chinese oil and gas companies, Sinopec and PetroChina. In June, Buton and Timor were designated as joint study areas.
"Once the joint studies are completed, we will initiate direct bidding for the oil and gas working areas, determine the winners, and commence oil and gas explorations," Soemanto noted in an official statement on Friday.
Additionally, he remarked that several Chinese companies partook in the auction of five oil and gas blocks during the 2024 Indonesia Petroleum Association (IPA) Convention and Exhibition in May.
"The auction of these blocks is part of our strategy to find new oil and gas reserves," he stated.
In terms of production enhancement, Pertamina is collaborating with Sinopec to implement technology aimed at increasing Indonesia's oil and gas production. One proposed partnership with Sinopec involves a joint operation scheme.
At present, the government is processing permits to access oil and gas data before the two companies sign a confidentiality agreement. Following the agreement, Sinopec will deploy a technical team to five exploration areas for research and technology assessment.
Soemanto said the energy minister had instructed to accelerate cooperation with Chinese companies.
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