Wood Mackenzie’s Asia Pacific Upstream Oil & Gas Research Director Andrew Harwood (R), Bain & Company’s Head of Asia Pacific Energy & Natural Resource Practice Brian Murphy (2nd L), and Indonesia Ministry of Energy and Mineral Resources’ Director General of Oil and Gas Djoko Siswanto (2nd R) at Pertamina Energy Forum 2018, in Jakarta (11/28) - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Research and consultant company, Wood Mackenzie predicted stable crude oil price for the next 18 to 24 months. The stagnant price is considering bigger supply reduction from Iran over United State’s sanction. But on the other hand, oil supply from US will be increasing.

“We expected that oil price to remain stable for at least in the next 18 months,” said Wood Mackenzie Asia Pacific Upstream Oil & Gas Research Director, Andrew Harwood, in Pertamina Energy Forum 2018 held in Jakarta, on Wednesday (11/28).

Harwood mentioned that crude oil price has been driven by market supply in the recent weeks. In the same event, Head of Asia Pacific Energy & Natural Resource Practice from management consultant Bain & Company, Brian Murphy agreed by mentioning that oil price direction in the last months has been more aligned with the fundamentals than the previous few months.

Seeing the recent oil price slump, Indonesia’ Ministry of Energy and Mineral Resources (MEMR) has called PT Pertamina also other fuel producers and distributors, local and foreign. The ministry asked for non-subsidy fuel price adjustment, over the price weakened. Government is now waiting their pricing adjustment letters.

“We have called and asked them to adjust. Some of them will start next week while and some will start in January 2019. Some asked for more time because they need to spend their existing stocks,” said Director General of Oil and Gas in MEMR Djoko Siswanto.

For achieving the national energy tenacity, the ministry considered priority conversion from oil to gas. Siswanto said that government wanted to explore more in eastern Indonesia, while more resources found in the area is gas.

In the ongoing oil and gas upstream project until 2025, there is only one oil resources, according to him. He then expected for more gas downstream projects realization to support the upstream business.

So far, the Government has built more than 486 thousand household gas channels. It is expected to grow to 564 thousand channels in 2019, and surge to 4.7 million channels in 2025.

While, Pertamina has been established as state-owned oil and gas holding companies leader, on April 11. Its subsidiary, PT Pertagas, will be acquired by PT Perusahaan Gas Negara Tbk (IDX: PGAS), with conditional sales purchase agreement signed on June 29th.

Perusahaan Gas Negara also considered further acquisition to four more Pertagas’ subsidiaries, PT Pertagas Niaga, PT Perta-Samtan Gas, PT Perta Arun Gas, PT Perta Daya Gas, and PT Pertagas Kalimantan Gas.

Written by Staff Editor, Email: theinsiderstories@gmail.com