Jakarta – PT Pertamina Hulu Indonesia (PHI) Regional Kalimantan through its Subholding Upstream held an online seminar on political-economic development of the national upstream oil and gas industry, Tuesday (09/14). The seminar provided updates and insight to PHI management team about the perspectives of several parties, especially the stakeholders who made decisions on upstream oil and gas industry.

The speakers were a Member of the National Energy Council, Satya Widya Yudha, The Executive Director of Reforminer Insitute, Komaidi Notonegoro, and the Editor-in-Chief of the online media Dunia Energy, Dudi Rahman. On that ocassion, Satya Widya Yudha talked about the current oil and gas investment climate, focusing on the distribution of profit sharing for Cooperation Contract (KKS) Contractors. He said that to rekindle the national oil and gas investment climate, changes in policies and regulations were needed, including in financial incentives, profit sharing adjustments, clear work commitment, and in other aspects.

In line with this, Komaidi Notonegoro stated that it is important to immediately finalize the revisions in Oil and Gas Laws because they regulate many legal certainties for contractors. He broke down some data showing that upstream oil and gas investment plays a big role in realizing the national investment. ”Referring to the total realization data reported by the Investment Coordinating Board, the average realization of oil and gas investment in 2015-2020 period was around 26.75 % of the total investment realization in all economic sectors in Indonesia,” he explained.

The President Director of PHI, Chalid Said Salim in his speech stated that business and operational challenges in upstream oil and gas industry are increasingly complex. Therefore, PHI continues to work on maintaining its economy assets to ensure its operational sustainability. To achieve the national production target of 1 million barrel of oil per day (bopd) and 12 billion standard cubic feet per day (bscfd) of gas, support from the government is absolutely needed, he said.

”Alhamdulillah, earlier this year we received an incentive approval for Mahakam Work Area, and we are in the process of submitting incentive proposals for PHSS and PHKT.  These proposals are part of our effort to increase oil and gas reserves, which we believe will promote investment realization within the contract period and will have a multiplier effect for the national and regional economy”, he concluded.