ULTRADEEP WATER AS THE NEW CHALLENGE OF INDONESIA’S OIL AND GAS UPSTREAM INDUSTRY

Picture 1.1 The headline of TEMPO Online news, 18 December, 2013’s edition

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Picture 1.2 The headline of KATADATA Online news, 28 October, 2016’s edition

From the two headlines of those online news sources We can see that Indonesia has a huge problem in its energy’s sustainbility. Not only the oil but also the gas in Indonesia has a sustainbility’s problem too. Indonesia’s gas reserves to run out in 30 years. The numbers of 12 and 30 seem really short for the energy sustainbility of wide-massive society’s country like Indonesia. Why there is the limit number of years for those kind of hydrocarbon source energy? The answer is “The lack of Indonesia’s new hydrocarbon sources”. This answer is happened because the decreasing of upstream’s investment of oil and gas in Indonesia. From the picture 1.3 we can see the decreasing pattern of Indonesia’s oil and gas upstream investment from 2011-2015. This investment has an impact to Indonesia’s crude oil and gas reserves which we can see from picture 1.4 and 1.5. The impact is Indonesia’s crude oil and gas reserves is showing decreasing pattern too from 2011-2015.

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Picture 1.3 Indonesia’s Oil and Gas Upstream Investment 2011-2015

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Picture 1.4 Indonesia’s Crude Oil Reserve 2011-2015

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Picture 1.5 Indonesia’s Gas Reserve 2011-2015

 

From the “Strategic Plan of Energy and Mineral Resource Ministry of Indonesia’s” book show that Indonesia has only 0,2% oil resources from the world oil resources. Since 1995 the oil production in Indonesia has been decreasing. This is happened because Indonesia produces more oil than finds the new oil resources. By this situation, there will be one day when all the explorated conventional oil resorces in Indonesia out and don’t contain any amount of oils. So, Indonesia needs the new-potential oil resources to be explorated, and now is the right time for Indonesia to begin producing oil and gas from a new source of hydrocarbon in ultradeep water zone.

Ultra Deep Water oil exploration and production is offshore oil and gas exploration and production activities that take place or are about to take place at depths of more than 1500 meters. It is a part of offshore drilling process and thus considered to be a relative term with respect to deep water drilling. The Ministry of Energy and Mineral Resources of Indonesia is reviewing incentives for oil and gas projects located at a depth of more than 1,500 meters under the sea (ultra deep water). Nowadays Indonesia’s government is reviewing whether this incentive will be stated in ministerial regulation, presidential regulation or enough with the gross split rule, that in the gross split has been given an additional 16% split for deep water. The General Oil and Gas (oil and gas) Ministry of Energy and Mineral Resources, Ego Syahrial said, only 10% of eastern Indonesia region that successfully mapped oil and gas potential in the deep sea. So there are a lot of hidden potential which Indonesia has in the deepwater sea.For developing ultra deep water oil production in Indonesia is more difficult than other countries such as Qatar and Egypt because the subsurface is complex and requires high technology. The General Oil and Gas (oil and gas) Ministry of Energy and Mineral Resources, Ego Syahrial said that in order to be able to find the new reserves, Indonesia should have seismic vessels capable of detecting and detailing the potential of the sea. Currently, Indonesia only has the  Geomarin III vessel capable of providing seismic survey data in the deep sea. Hopefully Indonesia’s government is preparing a number of incentives for deep sea oil and gas investment in Indonesia to be more competitive. Not only preparing a number of incentives but also extending the exploration period for deep sea. The government usually gives the contractors time to explore for a maximum of 10 years. Later exploration period will be increased to 15 years. All of these things are just for the greater energy sustainbility of Indonesia.

 

 

REFERENCES :

Migas,Dirjen.(2016).Statistik Minyak dan Gas Bumi.Jakarta : Kementrian Energi dan Sumber Daya Mineral

Said, Sudirman.(2017). Rencana Strategis KESDM 2015-2019. Jakarta : Kementrian Energi dan Sumber Daya Mineral.

TEMPO.CO.(2013, 10 September). Oil Reserves to Run Out in 12 Years. Diperoleh 28 Agustus 2017, dari https://m.tempo.co/read/news/2013/12/18/056538533/oil-reserves-to-run-out-in-12-years

KATADATA.(2016, 10 September). Cadangan Minyak Habis 12 Tahun Lagi, Pemerintah Fokus Energi Baru. Diperoleh 28 Agustus 2017, dari http://katadata.co.id/berita/2016/10/28/cadangan-minyak-habis-12-tahun-lagi-pemerintah-fokus-energi-baru