JAKARTA (TheInsiderStories) – Indonesia will start facing oil and gas deficit in 2025, according to studies. The deficit is predicted to hit its peak in 2050. To tackle the issue, government must have billion dollars working commitment towards that time.
The studies stated in Indonesia Energy Balance Seminar, A Critical Review of Oil and Gas Sector, held by Bandung Technology Institute, estimated that oil and gas deficit can be diminished by $2.1 billion investment. While among those, $1.1 billion is for exploration.
Based on the studies, Indonesia oil needs in 2025 will be 1.9 million barrel per day (bpd), while production at that period will be only 569,000 bpd. By this, there will be 1.3 million barrels deficit. Moreover, the studies also projected gas deficit for 2.41 billion cubic feet per day (bcfd). The needs is going to be 9.22 bcfd and production is 6.8 bcfd.
The situation is projected to get worse in 2050. Oil deficit is predicted to be 3.8 million bpd, from 75,000 bpd production and 3.9 million needs. While the gas deficit is estimated to be 24.22 bcfd from 1.64 bcfd production and 25.86 bcfd needs.
Responded the studies, Deputy Minister of Energy and Mineral Resources, Arcandra Tahar said, Indonesia has big enough funding for oil and gas exploration. Moreover, the recent exploration money from gross split contracts are higher than the previous cost recovery scheme.
“The funding can be used for exploration in the next 5-10 years,” he said yesterday.
Tahar mentioned that government has taken a firm act by changing the scheme from cost recovery to gross split. He considered that gross split scheme has increased investors interest to Indonesia’s oil and gas sector. Until now, there are 40 blocks valued Rp31.5 trillion ($2.25 billion), using the gross split scheme.
Besides exploration, Indonesia planned to fix data usage for seismic needs. The data for exploration will be opened for companies who show their interests in investing into Indonesia. After all, Tahar realized that Indonesia government must take some steps to anticipate the worst.
“We have two options. If we don’t disrupt ourselves with a very fast changing, we’ll be disrupted by the fast changes,” Tahar stated.
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