Indonesia Will Gradually Cut Crude Oil & Nat Gas Exports
$OIL
The Indonesian government plans to gradually scale down shipment of Oil and Gas to overseas to comply with rising domestic demand, official said Thursday.
Lacking of processing facilities leads Indonesia export some of its Crude Oil and import Oil to meet with domestic demand.
Reducing importation and processing more Crude Oil at domestic would be more efficient, said I.G.N. Wiratmadja, director general of Oil and Gas at energy and mines ministry.
The ministry plans to reduce Oil export from 38 to 15% in the next 10 years, and for a long term, it will be cut gradually to Zero, according to him.
“Reduction of export will trim transport cost. We will (totally) process Crude Oil at domestic,” he said at energy and mines ministry.
Indonesia only has 6 Oil refineries and they are not sufficient for the country, said Mr. Wiratmadja.
Going forwards, he said that the country plans to build 2 Oil refineries to add the processing capacity.
On Nat Gas, Indonesia exports 41% of its production and will gradually reduce the shipment to overseas to Zero in Y 2040, according Mr. Wiratmadja.
Last year, Indonesia’s Crude Oil lifting (after sold) reached 794,000 BPD.
Indonesia has proven reserves of 3.7 -B BBL and its production keeps dwindling due to aging wells that led the country to be a net-Oil importer and exited from OPEC membership in Y 2008, but now the national will return to its membership.
The government has decided to shift the reliance on fossil fuel to Nat Gas, whose reserve abundance, and nuclear energy to comply with rising energy demand.
Indonesia, 1 of the world’s Top 5 LNG importers, chalks up huge array of 104-T cubic ft Nat Gas reserve, according to data from the country’s upstream regulator, SKK Migas.
The government will begin construction of nuclear power plant that is set to generate power in Y 2024 or 2025, in an effort to get energy efficiently.
By Hou Quaing
Paul Ebeling, Editor
HeffX-LTN
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