The New Head of Special Task Force for Upstream Oil and Gas Dwi Soetjipto - Photo: Privacy

JAKARTA (TheInsiderStories) – Minister of Energy and Mineral Resources Ignasius Jonan has appointed Dwi Soetjipto as Head of the Special Task Force for Upstream Oil and Gas Business Activities. He replaces Amien Sunaryadi, who retired on Nov. 18, 2018.

Soetjipto once served as President Director of state-owned energy producer PT Pertamina and cement producer PT Semen Indonesia Tbk (IDX: SMGR). His tenure at Pertamina began Nov. 28, 2014 until Feb. 3, 2017. During his tenure he froze PT Pertamina Energy Trading also known Petral.

Before lead Pertamina, Soetjipto served as CEO of Semen Indonesia since 2005. His obtaining a Degree in Engineering from the Department of Chemical Engineering, Sepuluh November Institute of Technology (ITS).

Then, he obtained a Masters in Management at Andalas University, Padang, West Sumatera. In 2009, Soetjipto earned a Doctor of Management in Specialization in Strategic Management from the University of Indonesia.

So far, Indonesian oil and gas investment for upstream far from its target. According to official data, until third quarter (3Q) of 2018, investment in upstream business was US$8.76 billion, only 61.69 percent of the $11.2 billion target.
Some of the investment realizations are $18 million drilling, US$ 212 million oil and gas field development, and $428 million work redo. Indonesia met oil and gas upstream investment peak in 2015, when $15.33 billion investment entered the business.
But it was downturning years after, with $11.6 billion in 2016 and $10.27 billion in 2017. The slump caused by its long internal rate of return and legal assurance issue.
The main reason for the low investment caused there is no new attractive field available. Big amount of oil and gas reserve only found in Banyu Urip, Cepu block, East Java, and Jangkrik in Muara Bakau block, East Kalimantan.
Amid the downturn in the last few years, the agency quite confident for better oil and gas investment in 2019, supported by new contractors working commitment over terminated oil and gas blocks. One of the blocks is $239.3 million-worth owned by state-owned energy producer, Pertamina’s Jambi Merang that will be expired in 2019.
The company planned to invest up to $3 billion in upstream business next year. The oil and gas holding is now prioritizing to maintain production is some fields.
It is also planned to invest more, regarding the needs of special technology, such as well drilling. Until 3Q, Pertamina has absorbed $2.4 billion expenditure allocated for investment.
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