Indonesia to Offer 12 Oil and Gas Work Areas in 2022

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 30.Pers/04/SJI/2022

Date: 19 January 2022

Indonesia to Offer 12 Oil and Gas Work Areas in 2022

In a beginning-of-year press conference held on Wednesay (19/1), Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (EMR), Tutuka Ariadji, laid out the performance targets of his work unit for 2022.

First, the Directorate General of Oil and Gas has plans to put 12 oil and gas work areas out to tender. The tendering is expected to attract investors and revive the enthusiasm for upstream oil and gas business in Indonesia.

Next, domestic gas use will be increased to 66%. "We will make every effort to formulate the right policies and monitor the implementation of the policies through closer collaboration with stakeholders," added Tutuka.

In terms of oil and gas lifting, the target for oil lifting in 2022 is set at 703 MBOPD, natural gas lifting 1,036 MBOEPD, while the average ICP USD63 per barrel.

Meanwhile, the oil and gas investment is set at US$17 billion.

Moreover, gas prices for certain industries and electricity will also be adjusted, taking into account affordability for consumers. This way, the policy will provide multiplier effects that support the national economic growth.

In 2022, the construction of oil and gas infrastructure will also be continued. According to the results of a work meeting with the Commission VII of the House of Representatives of the Republic of Indonesia (DPR RI), the Directorate General of Oil and Gas has set the targets to install 40,000 household natural gas connections (SR) and 30,000 converter kit packages for fishermen and farmers each.

Additionally, 2022 will mark the construction starting for the Semarang-Batang Natural Gas Transmission Pipelines, which forms part of the Cirebon-Semarang Transmission Pipelines.

Finally, the policy on 3-kg LPG provision will continue to be improved to ensure it meets its intended target. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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