Page 21 - Oil&Gas-AustralAsia-2015-Issue-5
P. 21
I NDONESIA
The cost really depends on the size and cost is, should know what the cost of more easily from satellite observations.
the scope of work, but it is fair to state traditional methods are and what cost is Several decades later, satellite observa-
that the cost could be and is very often incurred when dry holes are drilled or tions enabled a scientific revolution in
80-90% lower than traditional methods nothing is found. It is not only financial advancing the theory of plate tectonics
of exploration, but again, a very basic cost that should be considered, it is also by providing highly detailed, quantifia-
understanding of what can be done is the time factor. ble measurements of the Earth’s surface.
required. If the risk of drilling a dry The theory of plate tectonics was GPS has enabled measurement of plate
hole that costs $50 million or more can driven largely by observations in the positioning and velocities, thus resolv-
be reduced, the cost of early explora- 1950s from ocean vessels mapping the ing the geologic. §
tion is small. The cost of carrying out a magnetic field and the seafloor shape, www.terrainsight.com
seismic survey in Papua for example is some of which can now be obtained
huge, therefore anyone asking what the
Indonesia given the green light to return
to OPEC
By Marie RYAN
The Organization of the Petroleum countries. tic demand from refining capacity ad-
Exporting Countries (OPEC) has no- According to OPEC’s statute, the ditions. Indonesia is planning a number
tified Indonesia that it plans to accept organization allows as a member any of upgrades and expansions to existing
the country’s request to reactivate its country that is a substantial net crude refineries slated to become operational
membership at the next OPEC meeting oil exporter, has similar interests to within the next decade. Indonesia has
at the end of the year. the organization, and is accepted by also proposed to build four new refin-
Once it rejoins, Indonesia will regain three-fourths of the members. Al- eries, each having a capacity of 300,000
its status as the only Asian member of though Indonesia is a net oil importer, b/d. Because Indonesia struggles with
OPEC and the only member that is a the country continues to export crude the level of investment needed to offset
net importer of petroleum and other liquids. oil and condensates. Because Indonesia oil and natural gas production declines
OPEC, founded in 1960, currently is an archipelago, geographic distances and a lack of adequate infrastructure, it
has 12 members, but membership has between its domestic oil production hopes to attract investment in both its
always been fluid—Ecuador suspended and demand centres encourage both upstream and downstream sectors from
its membership in 1992 and rejoined imports and exports. OPEC members. Indonesia is currently
in 2007; Gabon joined in 1975 and Despite its growing oil demand, in discussions with several OPEC coun-
terminated its membership in 1995. Indonesia’s oil and natural gas sectors tries about crude oil supply deals and
Indonesia originally joined OPEC in continue to be an important part of the investments in refinery projects. §
1962 but suspended its membership at country’s economy. Indonesia imports
the beginning of 2009. oil products, particularly gasoline, as a Indonesian President Joko Widodo.
Indonesia’s decision to suspend its result of insufficient refining capacity to Image courtesy of the Government of Indonesia.
OPEC membership was prompted by meet the growing demand for oil products.
growing internal demand for energy, Indonesia said that rejoining OPEC
declining crude oil and condensate will strengthen its cooperation with
production in mature fields, and limited oil-producing countries, provide greater
investment to increase production access to crude oil supplies, and allow
capacity. Indonesia had become a the country to be a link between energy
net importer of petroleum and other producers and consumers. Indonesia
liquids by 2004 after domestic demand currently buys crude oil and petrole-
exceeded production, as Indonesia’s um products through third parties or
production of petroleum and other liq- traders and wants direct access to long-
uids has been on a general decline since term crude oil supply contracts through
the mid-1990s. Indonesia produced negotiations made between the national
about 790,000 barrels per day (b/d) oil companies of OPEC members.
of crude oil and condensates in 2014, Indonesia anticipates more crude oil
the third-lowest level among OPEC imports will be needed to meet domes-
A Awww.oilandgasaustralasia.com NOVEMBER/DECEMBER 2015 OIL & GAS ustral SIA 19
The cost really depends on the size and cost is, should know what the cost of more easily from satellite observations.
the scope of work, but it is fair to state traditional methods are and what cost is Several decades later, satellite observa-
that the cost could be and is very often incurred when dry holes are drilled or tions enabled a scientific revolution in
80-90% lower than traditional methods nothing is found. It is not only financial advancing the theory of plate tectonics
of exploration, but again, a very basic cost that should be considered, it is also by providing highly detailed, quantifia-
understanding of what can be done is the time factor. ble measurements of the Earth’s surface.
required. If the risk of drilling a dry The theory of plate tectonics was GPS has enabled measurement of plate
hole that costs $50 million or more can driven largely by observations in the positioning and velocities, thus resolv-
be reduced, the cost of early explora- 1950s from ocean vessels mapping the ing the geologic. §
tion is small. The cost of carrying out a magnetic field and the seafloor shape, www.terrainsight.com
seismic survey in Papua for example is some of which can now be obtained
huge, therefore anyone asking what the
Indonesia given the green light to return
to OPEC
By Marie RYAN
The Organization of the Petroleum countries. tic demand from refining capacity ad-
Exporting Countries (OPEC) has no- According to OPEC’s statute, the ditions. Indonesia is planning a number
tified Indonesia that it plans to accept organization allows as a member any of upgrades and expansions to existing
the country’s request to reactivate its country that is a substantial net crude refineries slated to become operational
membership at the next OPEC meeting oil exporter, has similar interests to within the next decade. Indonesia has
at the end of the year. the organization, and is accepted by also proposed to build four new refin-
Once it rejoins, Indonesia will regain three-fourths of the members. Al- eries, each having a capacity of 300,000
its status as the only Asian member of though Indonesia is a net oil importer, b/d. Because Indonesia struggles with
OPEC and the only member that is a the country continues to export crude the level of investment needed to offset
net importer of petroleum and other liquids. oil and condensates. Because Indonesia oil and natural gas production declines
OPEC, founded in 1960, currently is an archipelago, geographic distances and a lack of adequate infrastructure, it
has 12 members, but membership has between its domestic oil production hopes to attract investment in both its
always been fluid—Ecuador suspended and demand centres encourage both upstream and downstream sectors from
its membership in 1992 and rejoined imports and exports. OPEC members. Indonesia is currently
in 2007; Gabon joined in 1975 and Despite its growing oil demand, in discussions with several OPEC coun-
terminated its membership in 1995. Indonesia’s oil and natural gas sectors tries about crude oil supply deals and
Indonesia originally joined OPEC in continue to be an important part of the investments in refinery projects. §
1962 but suspended its membership at country’s economy. Indonesia imports
the beginning of 2009. oil products, particularly gasoline, as a Indonesian President Joko Widodo.
Indonesia’s decision to suspend its result of insufficient refining capacity to Image courtesy of the Government of Indonesia.
OPEC membership was prompted by meet the growing demand for oil products.
growing internal demand for energy, Indonesia said that rejoining OPEC
declining crude oil and condensate will strengthen its cooperation with
production in mature fields, and limited oil-producing countries, provide greater
investment to increase production access to crude oil supplies, and allow
capacity. Indonesia had become a the country to be a link between energy
net importer of petroleum and other producers and consumers. Indonesia
liquids by 2004 after domestic demand currently buys crude oil and petrole-
exceeded production, as Indonesia’s um products through third parties or
production of petroleum and other liq- traders and wants direct access to long-
uids has been on a general decline since term crude oil supply contracts through
the mid-1990s. Indonesia produced negotiations made between the national
about 790,000 barrels per day (b/d) oil companies of OPEC members.
of crude oil and condensates in 2014, Indonesia anticipates more crude oil
the third-lowest level among OPEC imports will be needed to meet domes-
A Awww.oilandgasaustralasia.com NOVEMBER/DECEMBER 2015 OIL & GAS ustral SIA 19
