Indonesia - Japan Agree to Develop Gas and unconventional oil and gas infrastructure

Fukuoka, Japan - Indonesia and Japan agreed on the development of unconventional gas potential in Indonesia. Japan is also committed to supporting the Government of Indonesia in developing oil and gas infrastructure.

Thus, among others, the results of The 3rd Indonesia-Japan Energy Policy Dialogue (IJEPD) held in Fukuoka, Japan, 12-13 July 2012. RI delegation to act as a leader is the Director General of Oil and Gas and Mineral Resources Ministry Evita H. Legowo. While the Japanese delegation led by Hiroshi Asahi, Director General for Energy Environmental Policy, Agency for Natural Resources and Energy (ANRE).

The meeting also agreed on the need to increase two-way communication between Japan and Indonesia to strengthen the cooperative relationship that has been initiated and Japan support projects that have been, are and will run in Indonesia.

In mineral and coal sectors, Indonesia offers a smelter development projects in the coal processing plant to improve product quality and added value. As for the new and renewable energy sector, the Japanese (Kitakyushu) has established cooperation with the Regional Government of Surabaya and Malang to process waste into electricity. Indonesia hoped the cooperation could be established between the Agency for Energy and Mineral Resources Research and Education in Kitakyushu in the development of new and renewable energy.

While in the electricity sector, the Japanese Hitachi offers related cooperation transmission grid. The Japanese are also interested in managing and developing the geothermal resources for power sector Indonesia;

It was also agreed that the 1st Indonesia-Japan Energy Forum scheduled to be held back to back with meetings of The 4th Indonesia-Japan Energy Policy Dialogue in May 2013 in Indonesia. Just a reminder, The 2nd Indonesia-Japan Energy Policy Dialogue (IJEPD) was held in Bali, 31 May-1 June 2011. Meanwhile, The 1st IJEPD held in Japan on 13-14 May 2010.

In addition to Evita H. Legowo, RI delegation members at the meeting were representatives from the neighborhood unit echelon I KESDM Embassy in Tokyo, BPMIGAS, PT Pertamina (Persero), PT PGN (Persero), PT PLN (Persero) and PT Medco Power Indonesia.

While the Japanese delegation, members are New Energy and Industrial Technology Development Organization (NEDO), City of Kitakyushu and private Japanese companies involved.

Before the meeting of The 3rd Indonesia-Japan Energy Policy Dialogue (IJEPD) starts, do a pre-meeting with Mr. Hiroshi Asahi to discuss the continuation of Indonesia-Japan Energy Policy Roundtable (IJERT). IJERT the meeting as a means to discuss, exchange experiences and information between government and private entities in the energy sector in Indonesia and Japan to further enhance mutually beneficial cooperation between the two countries and has been held 12 times over a period of 12 years. Due to institutional changes in Japan that overshadowed the meeting, both sides agreed to replace IJERT with Indonesia-Japan Energy Forum (IJEF). The meeting will be initiated by the Directorate General of Oil and Gas and METI. (source : EMR)

Upstream Oil and Gas Industry Need Legal Certainty

Oil well drilling activities in the region of the Business Unit Pertamina EP Lirik, Riau (photo: Telukharunews)

JAKARTA (Telukharunews) - Upstream sector of oil and gas (oil) is the industry's long-term dimension, full of risk, need financing and high technology, as well as reliable resources.

"Legal certainty and the rule of doing business and doing business in this strategic sector is a necessity," said Head of Legal Department, Executive Agency for Upstream Oil and Gas (BP Migas), Sampe Purba in Jakarta, Sunday (22/7).

Until explained, need 6 to 10 years to determine whether an area of ​​commercial work to proceed. If deemed not find commercial oil and gas reserves, the work area is returned to the government. Costs have been borne out and the risk of contracting cooperation contracts (KKS). Conversely, if deemed commercial, it still needs about one to three years to build the facility and find a market that is expected. "After the new oil and gas could be produced," he said.

He reminded, at the time that exploitation, not merely to drain existing resources. Contractors are required to find and discover new oil and gas reserves for sustainable production. As natural resources are not renewable, it will decrease the productivity of oil and gas naturally. Until a way to produce oil and gas is also becoming increasingly expensive. Dewatering methods will also be moving towards an increasingly high tech. "It takes a huge investment," said Sampe.

Although the upstream oil and gas industry is so complex, Sampe say, all this has opened greater opportunities to the state, enterprises, cooperatives, small businesses, and private sector to take part. Just how the parties to the risk and the ability to access capital. So it is not exclusive only to foreign companies.

He also revealed that BPMIGAS supervise and control the oil and gas production and reception of the State according to the targets set. In addition, efforts to maintain the sustainability of energy exploration and the search for oil and gas reserves. Implementing agencies also regulate spending and spending KKS contractor. In addition to the imposition and use in accordance with the provisions and rules applicable engineering, encouraged the multiplier effect as one of the driving forces of economic society.

"As a government policy implementers, BPMIGAS have accountability and sound governance in the execution of his duty," he said. Exemplified, reporting and consultation to the legislature and ministries/agencies, as well as performance audits and financial accountability in the administration system of governance. (Source: BP Migas)

Indonesia And French Cooperation to Boost Energy and Mineral

Minister of Energy and Mineral Resources of Indonesia, Jero Wacik met with French Foreign Trade Minister, Nicole Bricq in Paris

PARIS - Indonesia and France will boost bilateral cooperation in energy and minerals, including the role of French companies in Indonesia, including the TOTAL operates the Mahakam block in East Kalimantan and nickel company Eramet that will build a smelter in Halmahera.

This was said by the Minister of Energy and Mineral Resources Wacik after meeting with French Foreign Trade Minister, Nicole Bricq in Paris on Monday (7/23/2012).

According to the Minister, the meeting discussed efforts to increase the role of the French company that originated in Indonesia, including Eramet that will build a nickel smelter in Halmahera with an investment of more than 5 billion euros.

Eramet operation in Indonesia is through ownership of shares in PT Weda Bay Nickel (WBN) under consortium Strand MINERALINDO Pte. Ltd.. In order to increase value-added minerals, PT WBN is being built to process the nickel smelter with a capacity of 2 x 35 tons / year which is targeted to begin production in 2017.

In the energy sector, the current French government tried to divert oil to a dependence on nuclear energy utilization and managed to reduce the proportion of oil in final energy consumption from 71% (1973) to 39% (2003). France is a country with the use of nuclear power plants in the world's largest and world number two in total nuclear installed capacity.

For coal, the coal company owned by the French, Charbonnages de France, has put an end to coal production in April 2004. France is currently living have very small reserves of coal, after coal production decreased significantly in recent decades. (source: EMR)

Government of Indonesia Increase Oversight of Oil and Gas Working Area Activities

Minister Jero Wacik

JAKARTA - The government will increase oversight of oil and gas operations in the region of the signed contract. Of the working area is abandoned, then the government will give a warning to the Contractor of Cooperation Contract (KKKS).

Minister Jero Wacik at the signing of 10 cooperation contracts (KKS) in the Ministry of Oil and Mineral Resources, Friday (20/7), said he has asked the Director General of Oil and Gas to monitor the Contractor's performance of oil and gas cooperation contracts. Deputy Minister Rudi Rubiandini also asked to lend a hand made ​​monitoring system, starting from when the Contract Cooperation signed by the development each year.

Wacik is said, the government will make an assessment (assessment). Naturally, after a year, what should have been done. If the assessment of the government feels there is a delay, it will be a warning against KKKS related.

"After 3 years, remind again. If the warning is ignored, then the letter (sent) a reprimand and warning. Will there be a point when WK permit has been revoked. State enterprises should not be taken hostage. We need oil, we need gas, "said Wacik.

Director General of Oil and Mineral Resources Ministry Evita H. Legowo added oversight of operational activities undertaken by BPMIGAS. While the Directorate General of Oil and Gas will conduct checks on the implementation of commitments.

Until now, more than 10 oil and gas WK license has been revoked. Most of the WK a permit has been revoked is because more than 10 years, KKKS no activity, the problem of overlapping land that is not completed or funding difficulties. There is also WK KKKS returned to the government for oil and gas reserves is not good.

Prior to revocation, the government is checked in detail first. (source EMR)