Indonesia Oil Reserves Went Down Drastically

Executive Agency for Upstream Oil and Gas (BP Migas – Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi) noted that there is a reduction in oil and gas reserves. The most drastic decline is in oil reserves which occurred on January 1, 2011 reached 4.039 billion barrels. While the estimated proved reserves in 2012, reaches 3.925 billion barrels.

BP Migas

Control Officer of BP Migas Operation, Rudi Rubiandini, say, the proven natural gas reserves is also experienced a downward trend but not as drastic as oil. In early January 2011, the proved reserves of natural gas reached 104.7 trillion standard cubic feet, whereas in January 2012 the estimate is 104.5 trillion cubic feet.

"Additional reserves found in 2011 were smaller compared to its production," Rudi said in a press release published in Jakarta, Sunday (18/12).

Throughout 2011, BP Migas noted an additional of 215.5 million barrels of oil and 2.86 trillion cubic feet of natural gas. But the realization in production is much higher, or about 329.9 billion barrels of oil and 3.08 trillion cubic feet of gas.

Therefore, he asserted that the increase in exploration must be carried out. BP Migas - as the regulator of government upstream activities of the oil and gas - encourages contractors with cooperation contracts (KKS – Kontrak Kerja Sama), prioritize the exploration of unused land.

He explained that they would conduct a review of the exploration potential on idle land throughout Indonesia. "Moreover, in order to make the marginal and frontier area exploration activity more attractive, BP MIGAS would submit incentive criteria plans," he added.

The implementation of certain commitments must be implemented in exploration area. " There must be more selective screening tests in the selection of winners of the working area contractors, in order to get a contractor that is capable financially, technically, and has capable human resources," said Rudi.

Source: Analisa