Jakarta, Aug 9 (Antara) -- The Oil and Gas Year sits down with the head of SKK Migas to talk about the institution’s contribution to ease foreign investmentwithin the E&P sector, the most urgent needs in the oil and gas industry and SKK Migas’ future within the rapidly changing energy scenario

In the current momentum of low oil and gas prices, Indonesia faces the remarkable challenge of boosting its energy production to meet the demands of its growing population. Although there are some black clouds shifting the outlook of the global industry, the country is striving to exploit the potential of its energy resources by joining forces between the government, SOEs, private companies and foreign investment.

In order to improve and enhance the regulatory framework to access the Indonesian E&P sector, SKK Migas is playing a major role in bringing investment into the country. “The key is how to make this industry more efficient, work faster and work together with all players”, SKK Migas head Amien Sunaryadi stressed as a mantra during an interview with The Oil and Gas Year. These three keywords – efficiency, speed and unity are the vertexes of a triangle whose core is to minimize the registration process of vendors entering the market. “We are aiming for any procurement and prequalification process to take maximum one week”, said Sunaryadi.

Gaining efficiency in the procurement process will be based on a precise amount: $20 million. Only transactions above that amount will need to seek SKK Migas’ approval. Enhancing efficiency should lead to improving the quality of vendors and will therefore raise the bar of competitiveness. “We need to increase the production as we reduce the costs to eliminate constraints in the market to attract more foreign investment”, Sunaryadi highlighted among other measures such as the assurance of PSC contractors long before PSC terminated, minimizing operational issues and tightening governance and transparency. “With Gross Split type of PSC, we expect it will more attractive to investors since it would provide a certain level of cost reduction, shorter lead time from exploration to development, and more upfront definitive split between government and the contractors”, pointed out Sunaryadi.

Sunaryadi took a look back at the different challenges he faced on his first days after being appointed as head of SKK Migas and the solutions implemented so far to tackle the problems slowing down the growth of E&P contracts. After the announcement in May of the 15 blocks bidding round, Sunaryadi wants to ensure that problems in the past are not repeated again: “We want companies that can assure their liquidity and due diligences are properly done. Technical capabilities can be solved along the way hiring local content or transferring technology”.

SKK Migas’ future will remain unaltered in its task to supervise and control the upstream sector business activities. “We have to anticipate the trend of Indonesia’s upstream oil & gas: going east, more offshore, more remote and utilize unconventional hydrocarbons”, said Sunaryadi with confidence in “developing our national capabilities in the upstream oil and gas cluster”.

About The Oil & Gas Year.
The Oil & Gas Year (TOGY) provides business intelligence, strategic communication and networking to the global industry. TOGY sends teams of researchers to more than 30 territories in the Americas, Asia, Africa, and the Middle East to conduct exclusive face-to-face interviews with the global oil and gas elite.

Contact:
Dana Carmen Agarbicean
Country Director
Email: dana@theoilandgasyear.com
Phone: +62081298398103

Reporter: PR Wire
Editor: PR Wire
Copyright © ANTARA 2017