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#54277 - 21 Jun 07 13:18 ANT/Government told to improve investment climate in oil/gas sector
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Pujangga Besar

Registered: 24 Apr 08
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Government told to improve investment climate in oil/gas sector

Jakarta (Antara News) - The government must improve the oil and gas investment climate to increase the number of new oil drilling investors by amending Law No. 22/2001 which had so far hampered investment in oil drilling in Indonesia, an oil observer said.

"The problem Indonesia has faced in the last seven years is that it has not found new gas reserves. Gas is being produced from old fields," oil observer Kurtubi said here on Thursday.

He said production from the old fields was now decreasing so that demand for gas at home could not be met.

"The problem is that no new reserves are now found in the upstream sector," he said adding that before 1998 the yearly number of exploration well drills was still recorded at more than 200 but it dropped to 150 in 1998.

Kurtubi also said recently that the decreasing number of new wells continued in the following years. In 1999, there were only 90 gas exploration wells and the figure continued to decline to 80 in 2000, 62 in 2001 and 36 in 2003.

"There was an increase in the number of gas exploration wells to 60 in 2006, however," he added.

He said investment in Indonesia had been made even more difficult by the adoption of illogical procedures such as the lengthy procedures of licencing investment proposals.

Previously, an invstment license could be obtained by completing formalities through various agencies functioning under one roof but now the investor`s application had to pass through at least five offices, he said.

Investors were now also reluctant to invest in oil exploration business in Indonesia because they had to pay taxes and other levies even before they had found any oil reserves.

Kurtubi said the results of a geological research had shown that Indonesia still had oil and gas reserves totaling 80 billion barrels enough to meet the country`s needs over 100 more years.

He said the country`s liquefied natural gas (LNG) reserves were estimated to still reach 350 trillion cubic feet. One of the regions in Indonesia which had large LNG deposits was Central Sulawesi where a factory could be set up with a capacity of three million cubic feet per annum. (*)
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#54287 - 21 Jun 07 13:54 Re: ANT/Government told to improve investment climate in oil/gas sector [Re: KuKuKaChu]
Dilli Offline
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#54290 - 21 Jun 07 14:03 Re: ANT/Government told to improve investment climate in oil/gas sector [Re: Dilli]
KuKuKaChu Moderator Offline
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Registered: 09 Oct 05
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Quoting: Dilli
This is a repost or at least someone repeating the story

it's a rehash of the same story. maybe the journo was having a hard time finding something original to write about.
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#54291 - 21 Jun 07 14:05 Re: ANT/Government told to improve investment climate in oil/gas sector [Re: KuKuKaChu]
Dilli Offline
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Registered: 26 Feb 06
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A new way to make money, cut/paste and resubmit!
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