Insider Network arrange Indonesia Energy Roadmap with EMR Ministry

JAKARTA (TheInsiderStories) - Insider Network, a media communication group, joined with Energy and Resources Minerals and PT Perusahaan Listrik Negara held Insider Seminar Series with theme “Indonesia Energy Roadmap 2017 - 2025”. This seminar is expecting will help government and leaders of major energy company to make decision on their business in the future.

The minister Ignasius Jonan set nine priority programs that the ministry will focus in the coming years to boost the energy developing in Indonesia. The nine priority programs are: development of downstream mineral sector, revision of cost recovery rule, Masela Block, East Natuna Block development, one fuel price system, oil refinery, gas price issue, 35,000 MW of power plant project and oil and gas block participating interest .

As for the 35,000 MW power plant program, 21 percent of the projects have completed the construction, 24 percent have signed power purchased agreement (PPA), 8 percent have developed transmissions. The government aims to increase the country’s electricity coverage ratio to 97 percent from 88 percent at present.

Separately, on Tuesday, Minister Jonan signed the amendment of production sharing contract (PSC) of Block Mahakam, which will allow Pertamina to invest in the block’s development during the transition period, namely in 2017. The block is currently being developed by Total E&P Indonesie (operator) and its non-operating partner Inpex Corp. The existing contract will expire at end of 2017 and the block will be handed over to Pertamina as the operator from Jan. 1, 2018.

Less on one month, the minister has released several regulation on oil & gas and minerals.

The ministry also is reviewing the ministerial decree (PP) No 1/2014 on mineral resources downstream development and reviewing the independent power producers which are considered non-qualified in developing power plant projects. The move is aimed to ensure that the power plant programs are moving forward as scheduled.

Jonan claiming has make an internal agreement with the Special Unit of Upstream Oil and Gas (SKK Migas) to encourage the oil production in 2017 reached 825,000 barrels per day (bopd). In the 2017 State Budget government has set the oil lifting target is set at 815,000 barrels oil per day and gas lifting of 1.15 MMBOED.

The ministry had proposed oil lifting target in the draft budget in 2017 amounted to 780,000 barrels per day of gas and 1,150 million barrels of oil equivalent with additional production from Banyu Urip, Cepu. SKK Migas head, Amien Sunaryadi, said this day the lifting of oil has reached 821,000 bopd above the government target 820,000 bopd in the State Budget for 2016.