Below is a list with tagged columns and company profiles.

Today's Headlines Oil

  • Oil & Gas Sector Indonesia: Making Exploration more Attractive

    Oil & Gas Sector Indonesia: Making Exploration more Attractive

    The goverment of Indonesia plans to revise Government Regulation No. 79/2010 scrapping several taxes that have been a burden for those companies that invest in Indonesia's oil and gas industry (both the exploration and production phase). The government expects that several new fiscal and non-fiscal incentives will boost investment in this industry starting from 2017. Indonesian Finance Minister Sri Mulyani Indrawati said it is important for the government to share in the "pain" in order to make oil and gas projects economically viable for investors.

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  • Indonesia's Bontang Oil Refinery Project Offered to Iran

    Indonesia's Bontang Oil Refinery Project Offered to Iran

    The government of Indonesia plans to offer the Bontang fuel refinery project to Iran. This refinery, which is targeted to have a processing capacity of 300,000 barrels of oil per day, will be located in Bontang (East Kalimantan). I Gusti Nyoman Wiratmaja, Director General of Oil & Gas at Indonesia's Energy and Mineral Resources Ministry, considers it a positive step to offer the Bontang refinery project to Iran as this nation has showed an interest to develop refineries abroad in a bid to boost its crude exports after international sanctions were lifted in January 2016.

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  • Crude Oil Production & Exploration 2016 Update Indonesia

    Crude Oil Production & Exploration 2016 Update Indonesia

    Indonesia's crude oil production (oil lifting) in full-year 2016 is expected to reach 819,000 barrels of oil per day (bpd), slightly below the target that is set in the Revised 2016 State Budget (820,000 bpd). Amien Sunaryadi, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas), said oil production realization in Indonesia so far this year stands at 834,000 bpd. However, due to seasonal factors output is set to fall in September. Moreover, amid low oil prices Indonesia somewhat discourages oil exploration and production.

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  • What Are the Production Costs for One Barrel of Oil at Indonesia's Pertamina?

    What Are the Production Costs for One Barrel of Oil at Indonesia's Pertamina?

    Crude oil prices are rebounding, climbing nearly 90 percent from 13-year lows at the start of 2016. However, compared to two years ago crude prices are still down 50 percent hence corporate earnings in the oil and gas industry remain subdued, while few investors are enticed to engage in exploration. To deal with low oil prices, oil and gas companies need to become more efficient thus pushing down production costs in order to optimize earnings. Lets take a look at Pertamina, Indonesia's state-owned energy company. How much does it cost for Pertamina to produce one barrel of oil?

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  • Oil & Gas Sector Indonesia: Oil Lifting Target Q1-2016 Achieved

    Oil & Gas Sector Indonesia: Oil Lifting Target Q1-2016 Achieved

    Indonesia's upstream oil & gas regulator SKK Migas said the nation's crude oil production in the first quarter of 2016 reached the average of 835,234 barrels per day (bpd), slightly above the target of 830,000 bpd that was set in the 2016 State Budget. This is positive news as it is rare for Indonesia to achieve its crude oil output target. In Q1-2016 the target was met due to the combination of a realistic oil production target and long-awaited crude production growth at Exxon Mobil Corp's Banyu Urip field (part of the Cepu Block in East Java).

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  • Oil Production Indonesia Exceeds Target in First Quarter 2016

    Oil Production Indonesia Exceeds Target in First Quarter 2016

    Indonesia's crude oil output was strong in the first quarter of 2016 on the back of higher-than-expected oil production of several oil companies in Indonesia. According to Indonesia's oil & gas regulator SKK Migas the nation's oil production totaled 833,000 barrels per day (bpd) in the January-March 2016 period, exceeding the oil lifting target that was set in the 2016 State Budget (830,000 bpd). It also means that the globe's low oil prices at the year-start, touching 12-year lows at around USD $27 per barrel, did not make local oil companies cut back on production rates.

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  • Oil Production at Indonesia's Banyu Urip Field Has Risen

    Oil Production at Indonesia's Banyu Urip Field Has Risen

    Oil production at the Banyu Urip field, part of the Cepu Block in East Java, has finally reached the level of 150,000 barrels per day (bpd) in February 2016 after a long delay. According to Indonesia's oil & gas regulator SKK Migas, production at the field stood at an average of 130,000 bpd in the first month of 2016. The Banyu Urip field, operated by ExxonMobil Cepu Ltd, is expected to reach its top production rate - around 165,000 bpd - in March or April. This would mean that the Banyu Urip field accounts for nearly 20 percent of Indonesia's total oil production.

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  • Indonesian Government Seeks Investors for Bontang Oil Refinery

    Indonesian Government Seeks Investors for Bontang Oil Refinery

    The government of Indonesia wants to construct the Bontang oil refinery in East Kalimantan through a private-public partnership (PPP). Sudirman Said, Minister of Energy and Mineral Resources, said construction of the Bontang oil refinery is scheduled to commence in 2017. State-owned energy company Pertamina will be in charge of the project and is now searching for investors to participate in the project which is estimated to require a total of USD $14.5 billion in investment.

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  • Low Global Oil Prices: Positive or Negative for Indonesia?

    Low Global Oil Prices: Positive or Negative for Indonesia?

    Indonesia turned into a net oil importer in 2004 as domestic oil output declined sharply while domestic fuel consumption surged amid the growing economy (hence becoming more and more dependent on oil imports). Prior to 2016, the Indonesian government provided generous energy subsidies (for fuel and electricity), resulting in a deteriorating budget deficit, trade deficit, current account deficit, and pressure on the rupiah. Moreover, government spending on energy consumption limited room for government spending on productive sectors such as infrastructure and social development.

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  • Indonesia Stock Market Update: China GDP & Oil in Focus

    Indonesia Stock Market Update: China GDP & Oil in Focus

    The spotlight is - as usual - on China today as the world's second-largest economy released various macroeconomic data and markets' reaction toward these data will determine where stocks are heading for today. Wall Street will not influence Asian markets because this US financial and investment community was closed for Martin Luther King Jr Day on Monday. Meanwhile, the crude oil price remains low around USD $29 per barrel.

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Latest Columns Oil

  • What Are Indonesia's Top Foreign Exchange Earners?

    What Are Indonesia's Top Foreign Exchange Earners?

    Foreign exchange earnings are important assets for a national economy. Therefore, many nations have recently been taking a much more protectionist approach vis-à-vis trade in an effort to strengthen their trade positions, generate trade surpluses, hence see the inflow of more foreign exchange earnings. Foreign exchange assets support a stable local currency as well as economy.

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  • Oil & Gas News Indonesia: Banyu Urip Field Hit New Peak

    Oil & Gas News Indonesia: Banyu Urip Field Hit New Peak

    Crude oil production at the Banyu Urip field (part of the Cepu Block) in East Java has reached 201,000 barrels of oil per day (bpd). This peak is reached about three years after operations started at the Banyu Urip field. Considering Indonesia set a 825,000 (bpd) oil production target in the state budget, it implies the Banyu Urip field now accounts for almost a quarter of total (targeted) crude oil production across Indonesia.

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  • Oil & Indonesia: Interview with Economist Lana Soelistianingsih

    Oil & Indonesia: Interview with Economist Lana Soelistianingsih

    An interesting interview with Lana Soelistianingsih was published in Indonesian tabloid Kontan, a magazine that focuses on the economy and financial markets of Indonesia. Soelistianingsih is Head of Economy at Samuel Aset Manajemen as well as a teacher at the Economics Department of the University of Indonesia. The topic of the interview is crude oil.

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  • The Impact of Low Oil Prices on Listed Companies in Indonesia

    The Impact of Low Oil Prices on Listed Companies in Indonesia

    Overall, low crude oil prices are problematic for stock markets as low prices indicate the world economy is not expanding on full throttle. This curbs investors' risk appetite. Particularly those companies that are active in the oil industry (or in related industries) will likely face declining share prices. However, there are also positive effects of low oil prices. For example consumers' purchasing power should improve because prices at the gas pump are lower, while some companies can curb operational costs. Hence, consumer and transportation stocks should actually benefit from low oil prices.

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  • Rising Fuel Demand, Indonesia Needs More Oil Refining Capacity

    Rising Fuel Demand, Indonesia Needs More Oil Refining Capacity

    Fuel demand in Indonesia already reached 1.6 million barrels per day (bpd). However, oil refining capacity only stands around 1.1 million bpd, implying that 43 percent of fuel consumption in Indonesia needs to be imported from abroad. Oil refining capacity today is roughly the same as it was 15 years ago, meaning that there has been limited progress in development of Indonesia's downstream oil industry. Without adding refining capacity, Indonesia is on track to become the world's largest fuel importer within the next decade.

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  • Oil & Gas Industry: Understanding Indonesia's Cost Recovery Scheme

    Oil & Gas Industry: Understanding Indonesia's Cost Recovery Scheme

    Because we have received quite some questions about Indonesia's cost recovery scheme in the oil and gas industry, we decided to devote an article to this topic. Simply put, the oil recovery scheme that the Indonesian government applies in the upstream oil and gas industry concerns the reimbursement of exploration and production costs to oil and gas contractors. This should make oil and gas exploration in Indonesia more attractive and thus stop the two-decade long decline in the nation's oil output.

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  • Fiscal Update Indonesia: Government Wants to Revise 2016 State Budget

    Fiscal Update Indonesia: Government Wants to Revise 2016 State Budget

    The government of Indonesia proposes to cut the state revenue target by IDR 88 trillion (approx. USD $6.5 billion) in the Revised 2016 State Budget. Indonesian Finance Minister Bambang Brodjonegoro announced the government has sent the proposal to the House of Representatives’ Budget Committee (Banggar) on Thursday (02/06). Expectations of lower government revenue is the result of weaker-than-estimated tax collection, the lower-than-initially-assumed Indonesian crude oil price as well as the lower-than- estimated oil and gas production in Indonesia.

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  • Oil & Gas Industry: Indonesia to offer Open Bid Split Tender Schemes

    Oil & Gas Industry: Indonesia to offer Open Bid Split Tender Schemes

    There is few interest from the private sector to participate in Indonesia's oil & gas block tenders. Besides Indonesia's unconducive investment climate (that includes weak government management, bureaucracy, an unclear regulatory framework and legal uncertainty), low global petroleum prices have also managed to curb investors' enthusiasm. In a bid to entice private investors the Indonesian government has decided to change the concept for oil & gas tenders in 2016 from a fixed revenue split to an open bid split scheme.

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  • Indonesian Companies: Upstream Oil & Gas Services Provider Elnusa

    Indonesian Companies: Upstream Oil & Gas Services Provider Elnusa

    Elnusa is an Indonesian company that provides services in the upstream oil & gas sector. Although the oil & gas sector has been plagued by low prices, thus curtailing corporate earnings, there is something that makes Elnusa's position strong. Recently, Elnusa purchased a seismic vessel that can be used for marine seismic surveys for oil & gas exploration. In Indonesia only a few companies have the skills and equipment for marine seismic activities (and only a few companies have a seismic vessel). Moreover, Elnusa's new vessel is a modern one that is equipped to conduct high quality surveys in deep sea.

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