Gov't Must Anticipate Oil, Gas Depletion in 2025: SKK Migas
31 January 2017 19:08 WIB
TEMPO.CO, Jakarta - The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) called on the government to anticipate a depletion of oil and gas by 2025.
SKK Migas spokesperson Taslim Z. Yunus said that demands on oil and gas in 2025 would reach 3.5 million barrels of oil equivalent. Currently, the oil and gas production stands at around 2 million barrels of oil equivalent.
"With minimum exploration and drilling activities, the oil and gas productivity is declining," Taslim said in a discussion held by Tempo in Jakarta on Tuesday, January 31, 2016.
Based on a study conducted by the SKK Migas, the oil and gas production would only stand at 1.5 million barrels of oil equivalent.
"It means that there will be a gap of 2 million barrels of oil equivalent," Taslim explained.
Taslim suggested that the gap could be covered by intensifying exploration activities or increasing imports. According to Taslim, the government will have to decide the way to meet the demands soon.
Taslim pointed out that both options have their own risks. Taslim revealed that it would take 15 years from finding oil reserves to production. For instance, the Cepu Block was found in 2001, but it was fully operational in 2016.
On the other hand, Taslim went on, imports could affect investment in the upstream oil and gas sector. Taslim explained that for each Rp 1 billion (US$75,000) invested domestically would yield Rp 1.6 billion (US$120,000) worth of economic outputs. Taslim added that there would be an additional Rp 700 million worth of Gross Domestic Product and additional 20 percent for household economy.
"It also could open a huge number of jobs," Taslim said.
VINDRY FLORENTIN
