Below is a list with tagged columns and company profiles.

Today's Headlines Oil

  • Global Selloff Continues on Low Crude Oil and China Turmoil

    Global Selloff Continues on Low Crude and China Turmoil

    Asian stocks are again in deep red territory on Thursday (14/01), led by Chinese shares (which are on track to enter a bear market) as well as Japanese shares. It means that the rebound that had occurred earlier this week - caused by positive export data from China - was short-lived. The continued slide of oil prices (below USD $30 per barrel) and turmoil in China cause money to flow away from equity and fragile emerging market currencies.

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  • Low Oil Prices Can Cause Lower Oil Production in Indonesia

    Low Oil Prices Can Cause Lower Oil Production in Indonesia

    Although oil prices somewhat recovered from 12-year lows on Friday (08/01) on China's rebounding stock market there is concern that Indonesia will not achieve its 2016 oil lifting target as the country's oil producers become less eager to boost production rates amid unattractive oil prices. Yesterday, Brent oil fell to USD $32.16 per barrel - the lowest level since 2004 - after China devalued its yuan and Chinese stocks plunged over 7 percent causing the circuit-breaking mechanism to kick in and even causing a global stock selloff.

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  • Why Did Indonesian Stocks and Rupiah Weaken Today?

    Why Did Indonesian Stocks and Rupiah Weaken Today?

    Contrary to expectations, Indonesian stocks and the rupiah had a weak start of the new year. On Monday (04/01) Indonesia's benchmark Jakarta Composite Index fell 1.46 percent to 4,525.92 points, while the Indonesian rupiah depreciated 0.82 percent to IDR 13,943 per US dollar (Bloomberg Dollar Index). The performance of Indonesian stocks is in line with the performance of stocks around the globe. In China stock trading was even halted twice due to its plunging index. What happened today?

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  • Crude Oil Price at 11-Year Low, Coal & Gas under Pressure

    Crude Oil Price at 11-Year Low, Coal & Gas under Pressure

    Despite winter having arrived, global oil prices are still declining. Today (21/12), Brent crude prices plunged to the lowest level since 2004 on persistent concern about a global supply glut as the Energy Information Administration reported that US crude oil supplies rose 4.8 million barrels to 490.7 million in the second week of December, while the OPEC's production rate stood at 31.7 million barrels per day (bpd) in November 2015. Meanwhile, oil demand is expected to fall in 2016. For example, oil consumption in the USA is projected to fall to 1.2 million bpd next year, from 1.8 bpd in 2015.

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  • Indonesia to Focus on Renewable Energy, Not Nuclear Power

    Indonesia to Focus on Renewable Energy, Not Nuclear Power

    Indonesia will most likely abandon its plans to establish four nuclear plants (with a combined capacity of 6 GW) by 2025. Sudirman Said, Indonesian Minister of Energy and Mineral Resources, recently said there are plenty of alternatives - especially renewable energy - in Indonesia to meet the government's target of 136.7 GW of power capacity by 2025 and 430 GW by the year 2050. Nuclear power is controversial due to health risks, environmental damage and nuclear proliferation (when used as a weapon). The nuclear disaster in Japan in 2011 highlighted the risks of tapping nuclear power.

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  • Net Oil Importer Indonesia Officially Rejoined OPEC

    Net Oil Importer Indonesia Officially Rejoined OPEC

    Per 4 December 2015 Indonesia officially rejoined the Organization of the Petroleum Exporting Countries (OPEC), seven years after the country had voluntarily exited the organization as it had turned in to a net oil importer. On the 168th meeting of the OPEC, held in Vienna (Austria), OPEC President (and Nigeria's Oil Minister) Emmanuel Ibe Kachikwu welcomed Indonesia back into the organization. At the meeting Indonesia was represented by Indonesian Minister of Energy and Mineral Resources Sudirman Said.

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  • Can Indonesia Cut Gasoline Imports and Stop Diesel Imports in 2016?

    Can Indonesia Cut Gasoline Imports and Stop Diesel Imports in 2016?

    As Indonesia's oil production is expected to rise while a new oil refinery in Tuban (East Java) has started to come online, Indonesia's Ministry of Energy and Mineral Resources targets to stop imports of diesel fuel altogether and cut imports of gasoline fuel by 30 percent in 2016. The refinery in Tuban is owned by Trans Pacific Petrochemical Indotama, which was recently acquired by Indonesia's state-owned energy company Pertamina.

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  • Oil & Gas Blocks for Sale in Indonesia: Profit Sharing Made more Attractive

    Oil & Gas Blocks for Sale in Indonesia: Profit Sharing Made more Attractive

    The government of Indonesia decided to offer more attractive profit sharing schemes in order to lure investors to invest the nation’s oil & gas blocks. In September, the government plans to auction a total of eight oil & gas blocks with a profit sharing of 30 percent to 35 percent for oil, and 35 percent to 40 percent for gas. The majority of profit will still go to the government. Usually, the government offers a 15 percent profit share for oil and a 30 percent profit share for gas to investors.

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  • Oil News: Indonesia Rejoins OPEC in December after Seven Year Hiatus

    Oil News: Indonesia Rejoins OPEC in December after Seven Year Hiatus

    After a seven-year hiatus Indonesia will rejoin the Organization of the Petroleum Exporting Countries (OPEC) as a full member in December 2015. A statement on the website of the OPEC states that all members approved reactivating Indonesia’s full membership in the organization. At the next OPEC meeting, scheduled for 4 December 2015 in Vienna (Austria), Indonesia will be formally admitted back into the OPEC.

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  • Oil Sector Indonesia: Production Target 2016 and Rejoining the OPEC

    Oil Sector Indonesia: Production Target 2016 and Rejoining the OPEC

    Indonesia expects to produce between 800,000 and 830,000 barrels of oil per day (bpd) in 2016. This range was agreed during a working meeting between Commission VII (which oversees the country’s energy sector) of the House of Representatives (DPR) and the Energy and Mineral Resources Ministry. The meeting was held in the context of deliberations on the 2016 State Budget. So far this year, Indonesia’s crude oil output stands at an average of 802,046 bpd (monthly basis). Domestic demand, however, stands at 1.43 million bpd.

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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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