BP Migas Deputy Head for Operations Rudi Rubiandini said in a press statement on Sunday gas reserves as per January 1, 2012 also fell to 104.5 trillion cubic feet from 104.7 trillion cubic feet a year earlier.
"The quantity of additional reserves found in 2011 was also lower than the production," he said.
In 2011, additional oil reserves reached 215.5 million barrels and additional gas reserves 2.86 trillion cubic feet, he said.
Meanwhile, oil production reached 329.9 billion barrels and gas production 3.08 trillion cubic feet in 2011, he said.
"Under these circumstances, more exploration activities are a must," he said.
To increase exploration activities in the production working areas, the agency would encourage contractors signing cooperation contracts with the government to prioritize exploration activities in idle areas, he said.
"We will review exploration potentials in idle areas across Indonesia," he said.
In addition, to attract more investment in exploration activities in marginal and pioneer areas, the agency would propose criteria of incentives, he said.
He said to choose winners of tenders for exploration activities in the BP Migas`s working areas, the agency felt it necessary to conduct a more tight screening test to find contractors which were able to conduct the activities in terms of fund, technique and human resources.
"BP Migas is applying a reward and punishment system to exploration contractors in realizing their commitment and issuing a firm warning to investors who have bad a performance," he said.(*)
Editor: Aditia Maruli Radja
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