"Shortly after I return home, the upstream business of Pertamina will be reviewed," Coordinating Minister for Economic Affairs Sofyan A Djalil said on the sidelines of World Economic Forum in Davos, Switzerland, on Thursday.
He said he has learned a new approach to managing national oil and gas after holding a series of economic dialogs and discussions with oil and gas experts and businessmen at the forum.
"Many global oil and gas agents have cancelled their large projects due to a shortfall in the global oil prices," he added.
Even they reviewed their marginal projects, he noted.
In view of this trend, Sofyan said, Pertamina as a state-owned company must exercise caution with regard to its upstream business.
Pertamina is currently carrying out many exploration projects hoping that the global oil price will reach US$100 per barrel, he remarked.
As a matter of fact, the global oil prices will continue falling for a relatively longer time and hence might not reach US$100 per barrel in the near future, he observed.
Therefore, he added, the government will review the upstream business of Pertamina in response to the downward trend of the global oil prices, he pointed out.
"We will look at what has been done and what must be done," he added.
He explained that the government will review Pertaminas large projects, including the purchase of new oil fields abroad and the takeover of expired oil and gas contracts.
"We will appoint a steering committee for that purpose," he stated.
He clarified that the construction of new refineries will not be reviewed since Indonesia had last built an oil refinery in Balongan, West Java, in 1986.(*)
Editor: Heru Purwanto
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