Former OPEC Member’s Byzantine Rules Shooing Away Explorers

12 May 2017   Indonesia

Only 20% onshore rigs in Indonesia operating vs 60% in 2012 Nation may not see major oil, gas investment: Drilling group Red tape, rising costs and declining crude prices are throttling exploration in Indonesia, the former OPEC member that now produces less oil than it uses. Only 20 percent of the 287 onshore rigs operated by contractors for local and foreign explorers are at work, compared with 60 percent in 2012, according to Wargono Soenarko, chairman of the Indonesian Oil, Gas and Geothermal Drilling Contractors. Four out of six offshore rigs are operational, he said in an interview. The decline in drilling reflects uncertainty over regulation, a complicated permits system as well as high production costs that have deterred investments for new exploration, Soenarko said. It’s a challenge the government needs to tackle for success in its plan to overhaul the nation’s energy policy and lure as much as […]

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