ConocoPhillips currently contributes more than 20% of Indonesia’s natural gas production, 24% of its liquefied petroleum gas output and 6%-7% of its crude oil production.
US company ConocoPhillips to invest around $2.5bn in Indonesia’s upstream oil and gas industry over the next three or four years, the nation’s energy minister said yesterday.
That would roughly match its investment in the sector over the preceding four years, Sudirman Said told reporters following a meeting between the chief executive of the oil major and the president of Southeast Asia’s largest economy, Joko Widodo.
“They are an important partner for Indonesia (and) they have committed to continue their investment here,” Said said.
Former Opec member Indonesia has been hit hard by falling oil production, insufficient gas infrastructure and a series of corruption scandals that led to the downfall of top energy officials.
While it is still one of the world’s top exporters of natural gas and Southeast Asia’s top crude producer, Indonesia is also a major fuel importer, the main driver behind the country’s fiscal and current account deficits.
“With our investment in energy today, we’ve very large pipeline gas producers here in Indonesia and we look forward to continuing our investment in this country,” ConocoPhillips CEO Ryan Lance told reporters yesterday.
“(The president) is working to make sure the ministers and his office to reduce uncertainty that we have in this business to continue to make investments.”
ConocoPhillips’ contract to operate the Natuna Sea Block B is due to expire in 2020, Lance said. He did not say how much the firm, the second-biggest producer of gas in Indonesia, planned to invest in the next few years. Operating two oil and gas blocks in Indonesia – Natuna and the Corridor Block in South Sumatra – ConocoPhillips currently contributes more than 20% of Indonesia’s natural gas production, 24% of its liquefied petroleum gas (LPG) output and 6-7% of its crude oil production, according to Said. Based on data from Indonesia’s oil and gas regulator (SKKMigas), the firm aims to produce 956bn British thermal units per day (bbtud) of gas and 20,500 barrels of oil per day from the Corridor block, and 335 bbtud of natural gas from Natuna.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Doha Bank posts QR754mn net profit in 2019
‘Green entrepreneurship’ is vital for sustainability, says Doha-based startup
Investment effectiveness of Gulf economies has fallen, says S&P
IMF, World Bank call for reforms; Lebanon warned of implosion
Turkey’s central bank seen easing again with 50-bpt cut
Bangladesh’s Islamic finance industry keeps booming with no slowdown in sight
Ghana is fast becoming frontier investors’ new best friend
Coronavirus jitters weigh on Asian equity markets
Euro struggles near 3-year low as traders fret about economic slowdown